Siemens Collaborates with Iran to Launch Electric Train

The German company Siemens and the Islamic Republic of Iran Railways have signed a memorandum of understanding for new collaboration. According to this memorandum, Siemens will cooperate with Iran in electrifying the Tehran-Mashhad railway line and launching the high-speed train line between Tehran and Isfahan. Reuters reported on Friday, January 8, quoting a Siemens spokesperson that the company and Iran "intend to hold negotiations for the development of Iran's rail infrastructure." The Siemens spokesperson refrained from further explanation but stated, "Any agreement for collaboration will be implemented after the lifting of sanctions on Iran." According to the Mehr news agency, this memorandum was signed on January 6 during the visit of the CEO of Siemens' transportation division, along with a delegation to Tehran, and the discussions with Mohsen Pour-Seyed Aghaei, Deputy Minister of Roads and Urban Development and CEO of the Iranian Railways. The Iranian Ministry of Roads and Urban Development's news site also published the text of this memorandum, stating that the plan for developing the country's railway transport infrastructure is considered within the framework of the "Twenty-Year Development Vision Document," and "since Siemens has valuable experience in this field and has a long history of supplying railway equipment in Iran," this memorandum was signed with this company. According to the published text of this memorandum, Siemens is set to cooperate with Iran in the areas of electrifying the Tehran-Mashhad railway line, the high-speed Tehran-Isfahan line, supplying and maintaining 500 passenger wagons, developing and modernizing railway systems, and training and technology transfer. Siemens will supply equipment, locomotives, wagons, signaling, and maintenance services for the electric railway line between Tehran and Mashhad, and the launch of the high-speed train between Tehran and Isfahan will also be entrusted to this company. The company will also be responsible for consulting and providing educational training to railway staff and its training center. Regarding the source of financing for these projects, the memorandum states that both parties will conduct negotiations so that Siemens can present proposals to Iran for "financing" and financial facilities for these projects. Before the extensive sanctions imposed by the U.S. and the European Union against Iran concerning its nuclear program, Germany was Iran's largest European trading partner. However, economic exchanges have significantly decreased following the sanctions. According to Reuters, the value of German exports to Iran reached 4.7 billion euros (5.1 billion dollars) in 2010, but this figure dropped to 1.6 billion euros (about 2 billion dollars) in 2014. The government of Hassan Rouhani hopes that with the implementation of the nuclear agreement between Iran and the six world powers, foreign investors will be quickly encouraged to invest in Iran. Germany, along with Italy, France, and the UK, has been seeking to improve its economic relations with Iran following the nuclear agreement, and the German Minister of Economy was one of the first European officials to visit Tehran with a large delegation. In this context, a "400-member" economic delegation from Italy is coming to Iran.