Pakistan-Iran: Rail Link to Europe

Sounds wonderful for trade b/w the two countries and Europe. :slight_smile: It is expected to be completed in 2004.

SOURCE: YAHOO

KARACHI -(Dow Jones)- A senior Iranian official urged Pakistan to upgrade the rail route between a southwestern Pakistan city and an Iranian border town so that by 2004 Pakistan could connect to a 550 km railway link to Europe, Pakistani officials said Monday.

The proposal was discussed by Iran’s deputy minister for road and transport, Seyyed Masih Momeni, and Pakistan’s top finance adviser, Shaukat Aziz in Islamabad. The talks came a week before the planned visit of Iranian President Mohammad Khatmi to Islamabad, a visit focused on boosting economic ties.

Iran’s deputy minister said his country was upgrading the Zahidan-Kirman railway section that will stretch into Europe by 2004 and asked Islamabad to build the railway link between Quetta and Zahidan.

“The Iranian Minister said that if Pakistan could upgrade the portion between Zahidan and Quetta, it would create an effective linkage between Pakistan, Iran and Europe to promote trade via railway route,” according to a government statement in Islamabad released after the meeting.

Aziz said Pakistan would look into the economic viability of the project and could move ahead if it benefits the neighboring countries.

He said Pakistan is building a road link between its coastal areas that will extend to Iran. An upcoming deep-sea port project in Gwadar, in the southwestern Baluchistan province, can also help improve trade with Iran, Aziz said.

**President Khatmi’s visit will also focus on the prospects of a $3.5 billion natural gas pipeline from Iran to India via Pakistan. The pipeline’s future remains locked in the tense ties between India and Pakistan. **

The talks will also include discussion of ways to reduce the smuggling of petroleum products from Iran to Pakistan and may also move the countries closer to agreeing to a much-delayed $1 billion joint oil refinery.


good news PT...

Iranian president Khatami will be visiting Pakistan on 23rd of this month for 3 days...which will inshaAllah improve our strained relations with them because of the taleban issue...

http://www.irna.com/en/tnews/021216155741.etn03.shtml

**President Khatami to arrive in Islamabad on Dec 23
**

Islamabad, Dec 16, IRNA – President Seyed Mohammad Khatami of the
Islamic Republic of Iran will arrive in Islamabad on December 23
(Monday) on a three-day official visit, for talks on regional and
bilateral issues, focussing on promoting economic ties, official
sources told IRNA.
The President will lead a high level delegation during his
three-day visit at the invitation of President General Pervez
Musharraf, the sources said.
President Khatami will hold wide-ranging talks with his Pakistani
counterpart General Musharraf and Prime Minister Mir Zafarullah Khan
Jamali.
He will stay in Islamabad for two days and will deliver a
key-note address on “dialogue among civilizations”.
The President will later proceed to the eastern city of Lahore
for a one-day visit. In Lahore, the capital of Punjab province, the
Iranian President will meet Pakistani traders to discuss ways to
promote economic relations. He will also speak to the citizens of
Lahore and will visit historical places there.
Political observers say President Khatami’s visit will further
strengthen brotherly relations between the two Islamic neighbouring
countries.
It is expected that several agreements and MoUs will be singned
during President Khatami’s visit to Pakistan.
Iranian ministers for forieng affairs, defence, transpost,
commerce, some deputy ministeries, head of Iran’s anti-narcotics
organisation and several members of Iranian parliament will accompany
the president in his historic visit to Pakistan.

[QUOTE]
*Originally posted by zaavia: *
good news PT...

Iranian president Khatami will be visiting Pakistan on 23rd of this month for 3 days...which will inshaAllah improve our strained relations with them because of the taleban issue...
[/QUOTE]

Indeed, it is a good news and our relations have been improved. I've also heard of Bus Service b/w the two countries. Have you Zaavia?

i think i read of it some where...

[QUOTE]
*Originally posted by zaavia: *
i think i read of it some where...
[/QUOTE]

Yeah, me too, Zaavia, I think some Guppy has opened a thread in Feb. 2002 when I was new at Gupshup.

My guess was right on the money :smiley:

Bus Services Started between Pakistan and Iran! (03-18-2002 )

Looking good! Good job PT, looks like things are going the way we discussed in that other thread. Railroads mean better trade and people to people contact :k:

Chit Chat b/w Seyyed Masih Momeni and Shaukat Aziz.

Pak-Iran JMC Keen to Boost Economic Ties

ISLAMABAD: Seyyed Masih Momeni, Deputy Minister for Road and Transport of Iran in a meeting with Shaukat Aziz, Prime Minister’s Advisor on Finance here on Monday discussed progress made in Pak-Iran Joint Ministerial Commission meeting here in Islamabad.

The two sides expressed satisfaction over the progress made in the Ministerial Commission and hoped that the institutionalised arrangements would further increase economic cooperation between the two countries.

The Iranian Deputy Minister informed the Advisor that his country was in the process of upgrading Zahidan-Kirman Railway Section stretched over 550 kilometres to link Iran with the Europe. So far, over 250 kilometres track has been upgraded while the remaining work would be completed in 2004.

The Iranian Minister said that if Pakistan could upgrade the portion between Zahidan and Quetta, it would create an effective linkage between Pakistan, Iran and Europe to promote trade via railway route.

The Advisor assured the Iranian Minister that **any project which could mutually benefit the two countries and was an economic viable entity would be upgraded on priority basis. He informed him that Pakistan is in the process of creating an infrastructure linking coastal areas of Pakistan with Iran.

Gwadar Deep Sea Port, which is likely to be completed in 2004, could also benefit Iran and establish linkages between the two countries.** Pakistan proposed that the two countries should accelerate the process of completing feasibility study on the construction of overland oil and gas pipelines between the two countries. Earlier, Iran-Pak JMC met for its 13th two-day session on Monday in Islamabad.

**Pakistan and Iran are setting up a joint venture refinery near Karachi, at Hub in Balochistan.

Hail Pakistan-Iran Friendship!**

Iran, Pakistan to Set up Fefinery: Agreement Signing this Month

KARACHI, Dec 18: Pakistan and Iran are setting up a joint venture refinery near Karachi, at Hub in Balochistan. **An agreement in this regard is to be signed at the end of this month when Iranian President Mohammad Khatami visits Pakistan, authoritative sources told Dawn on Wednesday. **

A draft of the proposed agreement has been reportedly prepared by the petroleum and natural resources ministry, which Pakistan’s foreign ministry has dispatched to Tehran seeking Iranian foreign ministry’s prior concurrence before being signed in presence of the top leaders of the two countries.

**The visit will be a milestone in the brotherly relations of the two countries after an agreement by the two presidents is signed. **

The project, which is now considered as economically viable, has been held in abeyance since 1998 due to lack of political will. However, work on the project can now be taken up at faster pace.

Before the visit of Khatami, a delegation of National Iranian Oil Company (NIOC) was scheduled to arrive in Pakistan in the last week of November to review the current status of the refinery project with reference to the oil sector deregulation and tariff protection, in particular. The delegation could not come to Pakistan owing to Ramazan.

Officials of the NIOC and Pakistan’s petroleum ministry had already held at least four meetings in Pakistan and Tehran to discuss the project.

The NIOC officials had been looking forward for assurance on continuation of petroleum policies and refineries, which the Pakistan government had already extended.

The refinery project was approved by the Economic Coordination Committee (ECC) in September 1998, but failed to make any headway at that time.

As the refinery is planned to be set up at Hub, the Balochistan government has allotted 2,000 acres for the refinery and its residential colony.

In the last meeting held in Tehran, **both Pakistani and Iranian sides had agreed on the parameters outlining the assumptions for evaluation of the project in line with those adopted by the financial institutions. The present criteria adopted internationally is to assess the project’s rate of return under 100 per cent equity. **

Iran feels that any project showing rate of return (ROR) at less than 15 per cent should not be considered as feasible unless supported by other potentials of the project.

According to production slate, **the refinery will be processing six million tons of Iranian heavy crude oil per year at price of $124.79 per ton. The expected yield of basic products are - diesel 3.689 million tons, unlead gasoline 1.1 million tons, naphta 293,000 tons, sulphur 48,763 tons, coke 412,571 tons and LPG 93,000 tons.

The first year capacity utilization is 90 per cent and 100 per cent from remaining life of the project. The project’s economic life has been taken at 25 years. The annual operating cost is estimated at $45 million and the total project cost is estimated at $1.23 billion. **

Irani and Pakistani diplomatic sources have sounded very optimistic on the forthcoming visit of Iranian President to Pakistan. Work is already under way on several Memorandums of Understandings (MoUs) in commerce and trade between the two countries.

The issue of cross-border smuggling of petroleum products into Pakistan from Iran will also come under discussion at highest level.

Yeah...they are working on it from the Ayub Khan era...lol...not yet completed?

[QUOTE]
*Originally posted by Zabardast: *
Yeah...they are working on it from the Ayub Khan era...lol...not yet completed?
[/QUOTE]

...and how do you know that?

great news! :k:

Following article is Not about Iran-Pakistan Rail Link to Europe but it does talks about that Rail Serivce exists b/w the two countries.

It’s good to see Iranians have offered hell of a deal to Pakistan.

Hail Iran-Pakistan Friendship!

Iran to offer Rail Facilities to Pak Hajis

ISLAMABAD: Iranian Minister for Road and Transportation Ahmad Kurram Tuesday said Iranian Railways would soon be able to offer Pakistani pilgrims a safe and comfortable journey to Saudi Arabia upon completion of Kirmanshah-Zahidan railway link.

He stated this during a meeting with Federal Minister for Railways Ghaus Bux Mehar. Ahmad Kurram is accompanying Iranian President Dr Mohammad Khatami during his current visit to Pakistan.

He said Iran has expanded its railway network to provide excess to European and Central Asian States. He expressed his keen desire to further expand the scope of mutual co-operation in various fields with Pakistan.

Reciprocating the gesture, the federal minister for railways recalled that Iran was the first country to recognise Pakistan, therefore, people here respect and highly value friendship with Iran.

He said it was a good idea to connect Kirmanshah with Zahidan as it would be a big opening for all countries in the region. He also felt the need for a fast train in the region to provide the people a comfortable journey.

Maher hoped that Iran and Pakistan would continue to co-operate with each other in different fields to further strengthen their relations particularly in the development of Railways.

Brilliant!

This is going to be a great advantage for Pakistan, connecting Europe and Central Asia by Railway Track.

Iran offers Pakistan to Join Trans-Asian Railway

ISLAMABAD: Iran has offered Pakistan to join in vying to connect Europe through a trans-Asian railway.

The strategically important issue was discussed on Tuesday between the Co-chairmen of Pakistan-Iran Joint Economic Commission (JEC): Ahmad Khorram, Iranian Minister for Transport, and Shaukat Aziz, Prime Minister’s Advisor on Finance and Economic Affairs.

“The two sides agreed that the communication and transport sector needs to be given priority to link Iran and Pakistan with Central Asia and the Europe,” a Finance Ministry announcement said.

Trade, economic cooperation, communication network and involvement of private sector in economic cooperation and revival of the Economic Cooperation Organisation (ECO) were also discussed.

About the ambitious transport and communication link between the East and the West, the Iranian side said Iran was completing the needed work of optic fibre in three months to connect Iran with Central Asia, Turkey and the Gulf countries.

Similarly, Iran was upgrading its rail links from Kirman to Zahidan and from Zahidan to Taftan for an effective railway link with Pakistan. It would in turn connect Pakistan with Europe, provided Pakistan fills the gap in its own rail network.

Iran was also upgrading its railway links from Khurram Sahahar, Basra and Syria linking it with Turkey to provide an effective railway link for promoting trade with Europe.

“This trans-Asia railway corridor would also facilitate intra-country travel by citizens of respective countries to promote friendship and understanding,” the ministry’s statement maintained.

In 1995, an ambitious plan was conceived for trans-Asian railway, with two passages - South Corridor and North-South Corridor.

Bangladesh, India, Iran, Pakistan and Sri Lanka agreed to develop this plan to kick-start regional and international trade of all the connecting countries.

In the light of trade and economic exchanges between the countries belonging to sub-regional groupings in South and Southeast Asia, it was agreed to re-evaluate, and if necessary re-define, the network previously identified, and assess improvements required in institutional and commercial procedures to attract international traffic to the corridor.

The countries considered findings and recommendations of the study during a Policy-level Expert Group Meeting in Dhaka in May 1999 during which the countries agreed to establish working groups to study gradual operationalisation of the corridors.

However, since then, progress was stalled largely due to Indian intransigence in the region. The current configuration suggested its total length at 27,700 km, almost 3279 km in Pakistan, 990km in China, 9017 km in India, 6179 km in Iran, 1358 km in Bangladesh, 531 km in Sri Lanka, 153 km in Thailand and 4053 km in Turkey.

The Trans-Asian Railway network in the North-South Corridor of routes between Europe and the Persian Gulf with onward connections to South and Southeast Asia was also identified by the participating railway organizations as another option, connecting Northern Europe with the Iranian port of Bandar Abbas at its southern extremity.

In addition, it would offer onward shipping connections to South Asia and Southeast Asia, and would also provide the landlocked countries of Central Asia a rail connection to one of the main ports on the Persian Gulf.

Since Iran was branded by the United States as one of the so-called ‘axis of evil’; it had expeditiously started work on alternate plans to meet any eventuality in case of a final showdown with the US.

The strong regional linkage was one of its primary objectives. With the development of road, rail, communication and pipeline infrastructure, Iran, as well as other countries, could have better strategic options, both in terms of economy and defence.

Since the US focus and interest in the energy rich Central Asian Republics (CARs) was obvious, effective linkages between South, East and Central Asia would definitely offer a great advantage.

At a time when Pakistan, Afghanistan and Turkmenistan had signed a tripartite agreement for a gas pipeline, and the feasibility study was progressing well with the help of the Asian Development Bank, Iran had also renewed its efforts for Iran-Pakistan-India pipeline project. There was no problem on the subject between Iran and Pakistan. However, Indian reluctance to accept its passage through Pakistan, despite Iranian assurances had so far frustrated all efforts.

Pakistan and Iran identified Tuesday oil and gas pipelines, setting up of refineries, energy and communication sectors as areas of cooperation between Pakistan and Iran.

Ahmad Khorram, the Iranian Minister for Transport, said expeditious implementation of three agreements and MOU in agriculture, trade, science and technology and other areas of mutual interest could realise trade and economic potential between the two countries.

So far, bilateral trade between the two countries reflect dismal trends, with volumes ranging between $150-200 million per annum, largely on account of petroleum imports by Pakistan from Iran, Pakistan’s exports were rice and some textile items alone.

wohooooo

It’s been confirmed. :slight_smile:

Iran to Offer Rail Facilities to Pakistani Hajis

ISLAMABAD – Iranian Minister for Road and Transportation Ahmad Khorram has said Iranian Railways would soon be able to offer Pakistani pilgrims a safe and comfortable journey to Saudi Arabia upon completion of Kermanshah-Zahedan railway link.

He stated this during a meeting with Pakistan Federal Minister for Railways Ghaus Bux Mehar. Ahmad Khorram was accompanying Iranian President Mohammad Khatami during his current visit to Pakistan.

He said Iran has expanded its railway network to provide access to European and Central Asian States. He expressed his keen desire to further expand the scope of mutual co-operation in various fields with Pakistan.

Reciprocating the gesture, the federal minister for railways recalled that Iran was the first country to recognise Pakistan, therefore, people here respect and highly value friendship with Iran.

He said it was a good idea to connect Kirmanshah with Zahidan as it would be a big opening for all countries in the region. He also said there the need is felt for a fast train in the region to provide the people a comfortable journey.

Maher hoped that Iran and Pakistan would continue to co-operate with each other in different fields to further strengthen their relations particularly in the development of Railways.