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Rail-Opportunities-In-Iran.Pdf In the Name of God Opportunities for Investment and Participation in Development Plans of Railways of the Islamic Republic of Iran The Ministry of Road & Urban Development The Railways of the Islamic Republic of Iran Investment and Transportation Economy Bureau Identification Title:Opportunities for Investment and Participation in Development Plans of Railways of the Islamic Republic of Iran Compiled by:Investment and Transportation Economy Bureau (Messrs. Eng. Behyar Senobari, Farajollah Javadzadeh, Farshad Kharazi, Dariush Azarnoush, Miss Hajar Akhavan Sales ) First edition:September 2015 Translation:International Affairs Bureau (Mr. Seyed Ebrahim Fazli Zenooz) Published by: Public Relations Bureau ( Mr. Sadegh Sakari, Miss. Maryam Mousavi Baladeh) Design & Graphic: Miss. Mojdegan Vaziri Content --------------------------------------------------------------------- • Preamble.............................................................................................................................4 • Statistics of current status of RAI in 2014 ..................................................................... 6 • Freight transportation forecast (with consignment note), railway subsection and other alternatives till 2021 .......................................................................................... 7 • Passenger transportation forecast, railway subsection and other alternatives till 2021 7 • infrastructure projects to increase the capacity of the network ..................................... 8 • Needed fleet for realization of 2021 objectives .............................................................. 9 • The incentives and support packages of investment opportunities ............................. 10 •16 category for investment opportunities ........................................................................13 • Infrastructure investment projects .......................................................................... 14 • Fleet investment projects ..........................................................................................28 •Map of infrastructure projects till 2021 ......................................................................... 38 4 RAI Preamble Based on the Iranian Perspective Document and till 2025 the share of the intercity rail transportation must grow up from 4% to 18% in passenger and from 10% to 30% in freight transportation in the entire transpor- tation of the country; to achieve the objectives of this document, it is necessary to pay more attention to par- ticipation and attraction of the private sector invest- ment in RAI’s infrastructure and fleet projects. The investment areas in RAI are quite diverse and nu- merous due to broadness of the industry. due to high volume of investments in the railway projects, in par- ticular infrastructure and fleet, first it is necessary for RAI to present the incentives and support packages 5 RAI upon introduction of investment opportunities in the industry, and in line with feasibility of the project to proceed with attraction of investments if necessary to pave the way for growth and development of this in- dustry. While offering the development horizons, this book introduces the investment opportunities in two fields of infrastructure and fleet, as well as RAI’s support packages for participation of the private sector to ex- ecute the said projects. 6 RAI Statistics of current status of RAI in 2014 Existing and Future Plans Index Unit Qty. Total length of the existing lines Km 13241 Total length of the main lines Km 10420 Length of the by lines Km 2821 Length of the electrified lines Km 196 Length of the under construction lines Km 8437 Length of lines under double-tracked Km 450 Fleet Index Unit Qty. Total number of available locos Set 869 Total number of available freight cars Set 22715 Total number of passenger cars Set 2025 Others Set 332 Freight and passenger transportation Index unit Qty. Total freight payload Thousand ton 34924 Total tonne-kilometer Million ton-km 24461 Total number of carried passengers Thousand persons 24304 Total passenger-kilometer Million pass.-km 16269 7 RAI Freight transportation forecast (with consignment note), Freightrailway transportation subsection forecast and other(with alternativesconsignment till note), 2021 railway subsection and other alternatives till 2021 24.4 12 Passenger transportation forecast, railway subsection Passenger transportation and other alternatives forecast, railway till 2021 subsection and other alternatives till 2021 24.3 13 8 RAI Table of infrastructure projects to increase the capacity of the existing lines Operation Needed sources No. Project title volume (km) (Million Euro*) 1 Double-tracking 3069 2033 2 Tracking 4613 196 3 Electrification 2804 3191 4 Improvement of lines 5115 5 Renovation and rebuilding of lines 3073 6 Construction and repairing the route 158 3346 Procurement and installation of switches with 7 1050 concrete sleeper 8 Increasing the axle-load from 20 to 25 tons 10453 Total 8766 * Exchange Rate: 1 EU = 40,000 IR Rials 9 RAI Table of the needed fleet for realization of 2021 objectives Needed sources Total Investor Type of fleet Qty. Share (Million Euro*) (Million Euro*) Freight loco 618 1700 Private Freight car 28500 2138 5007 56% sector Passenger car 1558 1169 Shunting loco 230 374 Passenger loco 186 512 High speed train 621 1444 Railway 3913 44% Commuter train 650 1511 Heavy rescue org. 15 42 Light rescue org. 20 30 Total 32398 8920 8920 100% * Exchange Rate: 1 EU = 40,000 IR Rials 10 RAI The incentives and support packages for investment opportunities 1-Fixing access charge for the new freight cars Railway access charge for the 4-axled and 6-axled cars up to four 4 and 6 million net ton-km hauled during a period of max. 42 months (whichever occurs sooner) since the beginning of the operation will not charged. 11 RAI 2- Fuel consumption saving rev- private sector as in the form enue share of establishing a company and Total capital spent the new investment concluding PPP contracts up projects of the private sector in procur- to 30% of the foreseen cost for ing freight/passenger fleets , locomo- construction. tives and infrastructure will be refund up to the main investment ceiling in the favor of the contractual investors 5- Paying the access The total saving amount of income from charge of the existing transportation of each ton-km of freight lines in double-tracking is 35 cc of gas oil and is 20 cc of gas oil projects for transportation of each passenger-km. investors thru execution and development of the new line construction process, based 3- Support packages for procur- on an approved and agreed fi- ing coaches nancial model should received to support investments related to pro- access charge for existing and curement of class 1 compartment coach- new lines. es, RAI shall guarantee the revenue of 1200 km-day running of 90% of the purchased cars for a period of 10 years after their entrance and operation on the condition of their availability and paying 50% of the fuel saving income according to Iranian law in return for each person- km till 2023, for the investors max. equal to the amount of investment. 4- Possibility of partnership up to 30% of total investment cost budget of the technical and credit assis- tance divided in needed years, through opening of LC to the investors of the 12 RAI It goes without saying that the amount and period of the access charge payment to the investor shall be calculated and guaranteed subject to the amount of in- vestment, payback period, and internal rate of return (IRR). 6- Paying the facilities out of the managed funds 7- Paying the facilities out of the National Develop- There is a possibility to pay equal to 75% ment Fund resources of total investment amount for procur- ing rolling stock, machinery, equipment The corresponding banks can for the railway workshops to the private pay equal to 75% of the to- sector investors through conclusion of tal investments for procur- agency agreements and managed funds ing rolling stock, machinery, deposited in the corresponding banks (by equipment for the railway submission of an accepted technical, fi- workshops to the private sec- nancial and economic feasibility study).. tor investors (by submission of The preferential interest rate shall be an accepted technical, finan- fixed from 8% to 16% according to the cial and economic feasibility type of investment in the passenger and study) as the foreign exchange freight sections. facilities. Based on its legal powers, RAI can guarantee maximum exchange rate fluc- tuations. 13 RAI 16 category for investment opportunities No. Title 1 Infrastructure of stations, welfare facilities for passengers 2 Electrification of exiting network 3 Construction of high speed railways 4 Construction of new lines and double-tracking 5 Development of by lines 6 Development of signaling and safety systems 7 Track construction maintenance and repair equipment 8 Development of telecommunication systems 9 Freight and passenger transportation fleet 10 Locomotive fleet 11 Fleet repair and maintenance workshops 12 Upgrading railway operating systems 13 Development of IT systems 14 Development of commuter trains 15 Construction of multimodal transportation terminals 16 Construction of training, managing infrastructures, passive, sports and cultural wel- fare infrastructures 14 RAI Infrastructure investment projects in railways of Iran 15 RAI 1- Construction of new line 2- Double tracking 3- Electrification 4- Multi modal Terminals and
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