India To Supply Iran with 150,000 Tons of Standard Rail Tracks for 15,000 km Rail Line worth $233mn

[Hack-Hook]

Another achievement (Import) from tadbir government!
Guess I have to celebrate it too!

Well importing steel is a lot better than importing چوب بستنی و آدامس .

 

[Chanakya's_Chant]

The Indians have also invested in Iran rail sector and they're welcome to do so as any investment is welcome.

That's true. India has much liability to Iran due to sanctions and one way to pay them off is do some bussines activity in Iran.
Business is bussines.

Another achievement (Import) from tadbir government!
Guess I have to celebrate it too!

Well importing steel is a lot better than importing چوب بستنی و آدامس .

Not necessarily importing - SAIL & STC are planning a greenfield venture to set up a 2-million-tonne integrated steel plant at Bandar Abbas port - Indian and Iranian Governments are in talks for the same - hope it will materialize soon!

Rail export deal in hand, SAIL plans R10K-cr plant in Iran | The Indian Express

 

[Echo_419]

That's true. India has much liability to Iran due to sanctions and one way to pay them off is do some bussines activity in Iran.
Problem of Iranians at this time is lack of money and not disability to build rails!!!
Iranian companies build dams, highways, tunnels, massive constructions in many foreign countries.
Here is list of some of massive Iranian companies:

Iran Building Construction Material,Equipment companies

Indian steel companies are also planning a Greenfield steel project in the Iranian port of bandar Abbas

 

[kaku1]

Well importing steel is a lot better than importing چوب بستنی و آدامس .

Maybe you also going to see companies like RITES and L&T building Iranian railway.

 

[Serpentine]

Why can't Iran make such basic and simple stuff at home?

It doesn't take much to understand that importing doesn't always mean being unable to produce something. Iran is already second largest steel producer in ME, Africa and Central Asia, after Turkey. And we produce more steel than France, UK, Spain and Canada.

Even United States imports too many products from various countries, does it mean they can't make it themselves?

 

[Shotgunner51]

It doesn't take much to understand that importing doesn't always mean being unable to produce something. Iran is already second largest steel producer in ME, Africa and Central Asia, after Turkey. And we produce more steel than France, UK, Spain and Canada.

Even United States imports too many products from various countries, does it mean they can't make it themselves.

Yes, Iran produced 16.33 million tonnes in 2014, ranked 14th in the world, more than France, Canada or UK. The capacity was very impressive given the effect of US-led sanction, reaching ~211 kg per capita per year, on par with world average.

150,000 tons of import for Iran represents less than 1% of her annual domestic capacity, it's not a big quantity (China produces that in less than 96 minutes), and simple (not much tech value added like other industrial usage)

 

[Echo_419]

Yes, Iran produced 16.33 million tonnes in 2014, ranked 14th in the world, more than France, Canada or UK. The capacity was very impressive given the effect of US-led sanction, reaching ~211 kg per capita per year, on par with world average.

150,000 tons of import for Iran represents less than 1% of domestic capacity.

Exactly people should not make such a issue out of such a small deal

 

[Guynextdoor2]

Is this not open violation of US embargo?

Who cares? We need the energy for our economy. US ain't gonna give it on a platter, so screw the embargo.

 

[Henry ME 95]

Why can't Iran make such basic and simple stuff at home?

If I had to guess its cheaper to get the tracks from India.

 

[Mustang06]

There nothing as bad business!

 

[scythian500]

Why can't Iran make such basic and simple stuff at home?

First of all, it is not that basic... it needs a sophisticated factory with complex machinery in order to produce rails. Second of all, Iran (Zobe Ahan Company) produced U33 Rails (33 kg per meter) for Iranian railway more than 20 years ago. Iran currently is able to produce U54 for metro and U60 for high speed trains (+160km/h) with a capacity of around 250000 tonnes per year (enough for 2000 kms of railroad)

Third of all, this news is like many other news that is just a dream or personal opinion in SANCTION time.Iran will change its mind asking the dollars from India instead as China and India sell their stuff very expensive due to lack of moral!

Iran will be open to more import of rails when sanctions are lifted and Iranian money is freed. For now, Iranian local rail production would be more than enough for the Kms that are under constructions or will be built in next year or so (which is around 3500m for coming couple of years I guess).

Iran is planning 15000 more kms of railroad in next 10 years and no matter how hard Iranian rail producers work, they can not fill the demands so Iran will need to import a part of its needs in case sanctions are lifted. All new rail roads will be of U60 high speed class.

In Brief:

- At the moment these news are just opinions and not likely at all...

- Current production capacity covers Iranian needs for coming couple of years.

- In future with sanctions lifted and more funds available It is likely to import rails.

 

[Shotgunner51]

If I had to guess its cheaper to get the tracks from India.

I read the article again, and I suppose the 150,000 tonnes is part of the whole contract? Looks like this is first batch that India will export through a special mechanism i.e. “full finance” scheme.

As per OP, last year India signed a contract worth $233 million with Iran for exports of rail tracks, Indian companies would provide Iran with enough standard rail tracks to set up a network project spanning over 15,000 kilometers.

• If the rail profile is average 40 kg/m (thermo hardened will be lighter but more costly; Note than these days HSR or heavy-duty freight line use 65~80 kg/m; China has been using U71Mn for quite a while), then contract requirement is 1.2 million tons.

• Then the contract price is ~US$194 per ton (CIF Iran I suppose). This price is unbelievably cheap, beyond any imagination, chances are the price is subsidized.

PressTV-India to finance Iran rail tracks exports
Rail profile - Wikipedia, the free encyclopedia

 

[mohsen]

Well importing steel is a lot better than importing چوب بستنی و آدامس .

blaming one's actions to justify another's worse action. good for you!
and meanwhile, just a few days ago:
واردات بی رویه کمر فولاد را خم کرد

 

[Echo_419]

First of all, it is not that basic... it needs a sophisticated factory with complex machinery in order to produce rails. Second of all, Iran (Zobe Ahan Company) produced U33 Rails (33 kg per meter) for Iranian railway more than 20 years ago. Iran currently is able to produce U54 for metro and U60 for high speed trains (+160km/h) with a capacity of around 250000 tonnes per year (enough for 2000 kms of railroad)

Third of all, this news is like many other news that is just a dream or personal opinion in SANCTION time.Iran will change its mind asking the dollars from India instead as China and India sell their stuff very expensive due to lack of moral!

Iran will be open to more import of rails when sanctions are lifted and Iranian money is freed. For now, Iranian local rail production would be more than enough for the Kms that are under constructions or will be built in next year or so (which is around 3500m for coming couple of years I guess).

Iran is planning 15000 more kms of railroad in next 10 years and no matter how hard Iranian rail producers work, they can not fill the demands so Iran will need to import a part of its needs in case sanctions are lifted. All new rail roads will be of U60 high speed class.

In Brief:

- At the moment these news are just opinions and not likely at all...

- Current production capacity covers Iranian needs for coming couple of years.

- In future with sanctions lifted and more funds available It is likely to import rails.

This deal will happen you do know we havrbto pay you somehow

 

[Stephen Cohen]

Great news ; Iran;s economy will take off and all other countries will benefit