Iran has awarded a major railway electrification contract to a Chinese company as part of its strategy to transform into a key transit hub for regional freight movement. The project covers nearly 1,000 kilometers of rail from the northeastern Sarakhs border to the western Razi crossing on the Iraq frontier. According to Jabbar Ali Zakeri, CEO of the Islamic Republic of Iran Railways, this effort—combined with double-tracking along certain segments—aims to triple the corridor’s cargo capacity to 15 million metric tons annually.
Zakeri made the announcement during a meeting in Beijing with Guo Zhuxue, chairman of China State Railway Group. Zhuxue reaffirmed China’s commitment to deepening its role in Iran’s railway development, viewing the country as a strategic partner in the Belt and Road Initiative. He also highlighted China’s plans to increase container cargo transit through Iran’s rail network, which serves as a vital link between Asia, Europe, and Africa.
This collaboration falls under the broader 25-year strategic cooperation agreement signed by Iran and China in 2021. Iran’s push to upgrade and electrify its transportation infrastructure aligns with national efforts to diversify the economy, reduce reliance on oil exports, and enhance its geoeconomic position in transcontinental freight transit, particularly along the growing North-South and East-West corridors.
