Speaking during a ceremony to ink the deal on Sunday, Iranian Minister of Petroleum Bijan Zangeneh said the project, which is focuses on optimizing and developing the country’s freight and passenger rail transportation in the next decade, will save the country ten billion liters of gasoil.
He also said by finalization of the project, emission of 30 million tons of carbon dioxide will be cut in line with the United Nations Conference on Climate Change in Paris (COP21).
This is the second such deal being signed by one of the subsidiaries of the Iranian Ministry of Roads, and its Article 12 allows the Iranian government to take measure to optimize fuel consumption.
The deal also entitled the Islamic Republic of Iran Railways to tap the resources generated by saving fuel up to $7.5b for optimizing the rail transportation system of the country.
Elsewhere, Zangeneh said Iran can currently export 25 million liters of gasoil per day but what the country lacks for boosting its exports is export terminals.
Mohsen Pour Seyed Aghaei, Vice Minister of Roads and Urban Development Chairman of the Board of Directors and President of RAI, also said on the sidelines of the ceremony that a deal has also been recently finalized for construction of 400 wagons and another deal will be signed for construction of 3,000 others in the future.
Last year, the Iranian Ministry of Petroleum signed another deal with the Roads Ministry for renovation of 25,000 trucks.