Are the Chinese Replacing Italians in Iran's Railways?

Italian companies intended to make significant investments in Iran's railways following the JCPOA. However, after the U.S. withdrawal from the agreement, many of these companies are leaving Iran, and it seems that Chinese companies are taking their place. Ali Aghazadeh, the governor of Markazi province, stated that 'due to sanctions,' the Italian company that was supposed to construct the high-speed railway from Qom to Arak has not taken any action: 'It was decided to assign the construction of this railway to China, and fortunately, the Chinese have announced their readiness to build the railway. This project will be funded through a credit line between Iran and China and will create a transformation in the province's economy.' In 2016, it was announced that Iran's Ministry of Roads and Urban Development aimed to transform Iran's railways with the help of Italian, French, and Chinese companies; some of the infrastructure dates back to the reign of Reza Shah and Mohammad Reza Shah. Currently, Iran is striving to expand its railway network to 25,000 kilometers from the current 10,000 kilometers, with 7,500 kilometers under construction. The launch of new high-speed lines and the acceleration of some existing lines are among the government's main plans for railway development in Iran. Italian companies were supposed to be significant players in Iran's railway industry after the JCPOA. The Ministry of Roads and Urban Development had announced that over four billion euros would be invested with Italian companies to modernize part of Iran's rail fleet and railway lines. The Iranian Railways had announced two years ago: 'According to the planned arrangements, Italy will make direct investments in two high-speed rail lines from Qom to Arak and Tehran to Hamadan, and will also have a serious presence in the supply of high-speed rail rolling stock.' However, with the exit of Italian companies, none of these events occurred. Now it seems that two main challenges for Iran's railways remain; namely, the lines and the shortage of new wagons and locomotives. Mr. Aghazadeh has stated that 'last year, 300 freight wagons were produced at Pars Wagon Factory, whereas a few years ago, there were discussions about closing this factory and paying overdue wages to its workers.' Abbas Akhoundi, the Minister of Roads and Urban Development, has also stated that 'the development of the railway transport network in our country is significantly lagging behind road transport, and $50 billion is needed to develop Iran's railway industry.' The Iranian Railways announced that last year, over 320 outdated passenger wagons were retired, but only 85 new wagons entered the network. In 2016 and 2017, a total of more than 634 outdated passenger wagons with 30 to 45 years of service were retired. The Iranian Railways reported that there are approximately 1,308 passenger wagons with an age of about 25 years; thus, the number of replaced wagons is much lower than what is needed to meet the demands of Iran's railway network, and despite retiring hundreds of outdated wagons, the age of Iran's rail fleet remains high.