TEHRAN (Realist English). Construction of the Rasht–Astara railway line — a critical segment of the International North–South Transport Corridor (INSTC) — will begin in early 2026, according to Amin Tarfa, head of the Department of International Affairs at Iran’s Ministry of Roads and Urban Development.
Project details
- Financing: The project will be funded by a $1.6 billion loan from Russia, with funds to be disbursed at the start of construction.
- Contractor: Russian company Caspian Service has been appointed as the general contractor.
- Timeline: Land acquisition and preparatory works are expected to be completed by the end of 2025.
- Loan repayment: Iran will repay the loan over 10 years at an interest rate of 3% per annum.
Strategic importance
The 162-kilometre railway line will connect the Caspian port city of Rasht with the border checkpoint of Astara, on the frontier with Azerbaijan. Once completed, it will create a continuous rail link from the Indian Ocean to the Baltic Sea, significantly enhancing trade connectivity between Iran, Russia, the Caucasus, and Europe.
Experts say the North–South Corridor could emerge as a strategic alternative to the Suez Canal, offering Eurasian countries a faster and more cost-effective route for cargo transport.
The bilateral agreement on financing and construction was signed in May 2023 by the presidents of Russia and Iran, marking one of the most significant infrastructure deals between the two nations in the past decade.