Iran Signs Historic Locomotive Contracts to Boost Domestic Rail Industry with Freight and Passenger Upgrades

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October 13, 2025 9:49 PM

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Iran has reached a major milestone in its rail transport sector with the signing of two significant rolling stock contracts. On October 4, Mapna, a leading Iranian manufacturer of rolling stock, secured a deal to provide Iranian Islamic Republic Railways (RAI) with 40 diesel-powered freight locomotives. Valued at approximately $225.9 million (Rials 9.5 trillion), this order is the largest-ever placed with a domestic supplier, marking a new era for Iran’s railway infrastructure.

In addition to the freight locomotives, Mapna has also been awarded a contract worth Rials 2.5 trillion for the refurbishment of 37 Siemens diesel passenger locomotives. These locomotives are part of a fleet of 150 four-axle units, with some of the original models manufactured at Siemens’ Allach plant in Germany in 2009-10. However, the majority of the fleet was assembled locally by Mapna, which has become a key player in Iran’s rolling stock production sector.

Boosting Domestic Manufacturing and Local Economy

A key element of these contracts is Iran’s commitment to increasing domestic production. Mapna’s president, Mohammad Owliya, stated that 85% of the components for the locomotives will be produced locally, strengthening the country’s manufacturing base and creating jobs. The contract’s execution is scheduled to span 14 to 29 months, providing ample time for local suppliers to meet the demand for components and parts.

In addition to the locomotive orders, Mapna signed a memorandum of understanding (MoU) with RAI and Yazd Rail to build 50 new passenger coaches. These coaches will be produced at Mapna’s Wagon Pars facility, further enhancing the domestic production capabilities of Iran’s railway sector.

Expanding Iran’s Rail Capacity

The addition of 40 new freight locomotives will increase RAI’s freight traction capacity by 10%. The refurbishment of 37 Siemens passenger locomotives is expected to improve passenger traction by 30%, contributing to a 5% increase in overall passenger capacity. This development is crucial for Iran, a country with a growing population and increasing demand for efficient, reliable transportation.

Dr. Jabbar Ali Zakeri, RAI’s director general, highlighted the strategic importance of these projects. By strengthening the domestic manufacturing of rolling stock, Iran aims to reduce its reliance on imported rail equipment. This shift not only enhances national security but also promotes sustainable growth in the country’s transport sector.

Environmental and Economic Benefits

The economic impact of these rolling stock contracts is expected to be significant. The social return on investment for these projects is projected at $163.9 million, with additional benefits including $53 million in fuel savings. A reduction in road accidents is also forecast to bring an additional $70 million in benefits, contributing to Iran’s ongoing efforts to improve public safety and sustainability.

The positive environmental impact is another key aspect of the project. By modernizing the rail network, the country is set to reduce fuel consumption and lower carbon emissions, helping Iran meet its environmental goals. This is aligned with the broader regional and global push for sustainable transport systems that minimize environmental harm.

Conclusion

The signing of these major rolling stock contracts represents a significant step forward for Iran’s railway industry. By focusing on domestic production and the involvement of the private sector, these projects will not only boost the capacity of the country’s rail network but also strengthen its economy. The government’s commitment to reducing reliance on imports while fostering local manufacturing capabilities sets the stage for future growth in Iran’s transportation infrastructure.