Share of the Transportation Industry in Iran's Next Year Budget

In the next year, more than 7 trillion tomans will be allocated for rail and road budgets and 152 billion and 579 million tomans for air transportation in Iran. According to ISNA, based on the information provided in the budget bill for the year 1398, the Ministry of Roads and Urban Development, along with its affiliated organizations, will receive approximately 8 trillion and 381 billion tomans. Meanwhile, the budget for the country's air transportation organizations, including the Civil Aviation Organization, Airports and Air Navigation Company, Higher Aviation and Airport Education Center, and Imam Airport City Company, is about 152 billion tomans. Iran needs extensive activities to develop its airports and aircraft, as Iranian airlines are facing many problems due to the aging fleet. Iran Air, in this context, needs at least 50 new aircraft to return to normal operational status. Each new aircraft costs on average over 100 million dollars. Even if the company wants to buy second-hand aircraft with suitable working hours, it must spend an average of 10 to 20 million dollars for each unit. This is in a situation where U.S. sanctions against Iran have been re-enforced, and purchasing new aircraft from major aircraft manufacturers faces various uncertainties. Many airports in Iran, including those in Tehran, Isfahan, Mashhad, Tabriz, and Shiraz, also need modernization and development plans. In this context, the budget for Imam Khomeini Airport City has decreased from 6 billion and 200 million tomans this year to 5 billion tomans next year. The budget for the Civil Aviation Organization in the year 1398 is about 95 billion tomans, while this allocation was about 108 billion tomans last year. The Airports and Air Navigation Company of Iran, another agency under the Ministry of Roads and Urban Development, had a budget of 2 billion and 200 million tomans this year and will have a budget of 34 billion and 200 million tomans next year. It is noteworthy that for the Higher Aviation and Airport Education Center of Iran, a budget of 18 billion and 378 million tomans has been allocated. In the rail and road sector, Iran also requires massive domestic and foreign investments. Currently, Iran is aiming to expand its railway network to 25,000 kilometers from the current 10,000 kilometers, with 7,500 kilometers under construction. Based on the latest evaluations, Iran needs about 25 billion dollars in investment for the development of rail transport. The transportation budget for Iran in the rail and road sector for the organizations under the Ministry of Roads and Urban Development, including the budget for the Transport Infrastructure Construction Company, the Iranian Railways Company, and the Road and Transport Organization, is about 7 trillion tomans. The budget for the Transport Infrastructure Construction Company, which operates as one of the main construction sectors in the country, is estimated at about 4 trillion tomans for 1398, which shows a growth of over 42% compared to the 2 trillion and 374 billion tomans budget of 1397. For the Iranian Railways Company, a budget of 1 trillion and 398 billion tomans is allocated for the next year, which was calculated at 1 trillion and 582 billion tomans in the current budget. The Road and Transport Organization also had a budget of 2 trillion tomans this year and will have a budget of 1 trillion and 692 billion tomans next year. Currently, of the 36,000 square kilometers designated as the country's flowing roads, 17,000 kilometers are highways and 2,400 kilometers are freeways. According to the Ministry of Roads and Urban Development, another 16,000 to 17,000 kilometers of freeways and highways are necessary to meet Iran's current needs.