Press TV- Irans rail industry gets a fresh boost from Chinas dedication of $845 million to build a train line connecting Tehran to the western cities of Hamadan and Sanandaj.
A Wednesday report said China National Machinery Industry Corp, known as Sinomach, signed a contract worth 5.35 billion yuan with Iran which is on a railway modernization and expansion drive.
Sinomach will handle the engineering, procurement and construction work for the 410 km (255 mile) railway, the company said on its website.
Sanandaj is one of the few remaining provincial capitals in a file in Iran to link with the national railway network.
On Tuesday, President Hassan Rouhani opened a new train line which connectedKermanshah in western Iran with the national railway grid. Officials said the cities of Rasht and Urmia are next to join the network in the coming months, before Ardabil, Sanandaj and Bushehr round up the plan.
Iranplans to become a transport hub in the heart of Eurasia where regional countries have drawn up their own development strategies.
On Sunday, Minister of Roads and Urban Development Abbas Akhundi said Iran needed $50 billion of investment for the modernization and expansion of its railway network in the next 10 years.
Chinas flurry of investments in Iran is in line with the Asian giants Belt and Road initiative, a project aiming to build a modern-day Silk Road at a cost of $1 trillion.
Chinas CRRC Nanjing Puzhen Rail Transport later signed a contract with Irans IDRO Group to supply 450 metro cars for the Iranian cities of Ahvaz, Tabriz and Shiraz.
Irans rail sector has become a magnet for rail engineering and rolling stock firms from all over the world.
A German consortium has pledged $3.5 billion for rail development projects in Iran, including a new signaling system for the Tehran-Tabriz railroad, new electric and diesel wagons, and high-speed connection lines.
Russias largest rail equipment manufacturer Transmashholding has signed a 2.5 billion euro deal with Iran to set up a joint venture to produce rolling stock. Russian Railways also signed $1 billion euro deal in 2015 to electrify and put up the signaling apparatus on a section of rail line between Garmsar and Gorgan.