Fuel Incentive for Iran Railways

Iran Railways © Kabelleger / David Gubler (license) via Wikimedia CommonsIran Railways (RAI) will get a huge incentive from the Government in return for increasing its freight and passenger volumes.

Incentives cover transit freight and passenger traffic. Iran Railway will get 35-liter-equivalent incentive for every 1000-ton-km increase in transit traffic and 20-liter-equivalent incentive for every 100-passenger-km increase. This means, fuel costs of every new transport will be funded by Government.

The incentive will only be given in cases of an increase in traffic, and may reach up to USD 7.5 bn within 10 years.

The transit traffic is seen as an effective way of breaking the sanctions, thus many steps had been taken to increase rail freight. New rail connection to Turkmenistan, discount in transit rail freight, new rail connection projects to Iraq and Azerbaijan are some of these.

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