RAI chief emphasizes importance of integrating Iran’s private sector into railway industry
Date
9/24/2024 9:36:29 AM
(MENAFN) The newly appointed head of the Islamic Republic of Iran Railway (RAI), Jabar-Ali Zakeri, emphasized the importance of integrating the private sector into the country's railway industry. According to a report from the Iranian Transport Ministry, Zakeri highlighted this during a joint meeting with representatives from rail transport companies and locomotive and wagon manufacturers. He stated that such meetings aim to address the concerns and challenges faced by the private sector and railway operators, and they will continue to be held in a specialized, hands-on format. Zakeri underscored that the Iranian railway system is in a period of transition and must shift from state-governed control towards greater private sector involvement.
Zakeri believes that developing Iran’s railway industry hinges on formally recognizing and involving private sector representatives in decision-making processes. He emphasized that the opinions of companies and organizations in this sector should be incorporated to ensure a continuous private sector presence across various parts of the railway industry. In addressing specific challenges, Zakeri pointed out that only 50 percent of Iran’s locomotives are currently operational, noting that domestic manufacturers have the potential to help resolve this shortage if their capacities are fully utilized.
Nasser Bakhtiari, Chairman of the Board of Directors of the Passenger Rail Transport Companies Trade Union, echoed Zakeri’s sentiments regarding the private sector’s role in enhancing productivity within the railway industry. Bakhtiari stressed the need for greater support for rail transportation companies, urging the government to create an environment that incentivizes private investment in the sector. He also highlighted the importance of establishing transparent and reliable mechanisms for pricing the products manufactured by the private sector, pointing to the locomotive industry as one of the most pressing challenges facing the Iranian railway system.
During the meeting, Rahmatollah Pourbabaei, secretary of the Iranian Railway Industry Association, warned about the declining activity among wagon and locomotive manufacturers. He noted that many domestic producers are not operating at full capacity and face the risk of closure if adequate investment and financial support are not provided. Pourbabaei criticized the disparity in funding between the railway and automotive industries, pointing out that last year, the railway industry received only USD130 million in foreign currency allocations, while the automotive industry was allocated a much larger sum of USD13 billion. He urged the government to prioritize financial support for railway manufacturers to prevent further decline in the sector.
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