Iran Economy in Brief – No. 22

Railways: Safe and Sound
“Currently there are 10,500 km railways in Iran, but the country needs to add 9000 km”, said Mr. Pouraghaii, Vice Minister of Roads and Urban Development of Iran, at the inauguration of IRAN RAIL EXPO, “5000 km are under construction”.
Over the last two years, transport through the railway has been doubled year-by-year, which makes the goals to be ambitious: by 2020, Iran wants to increase passenger transport by trains to 40 million and cargo transport to 92 million tones, these figures currently are 27 million and 34 million tones, respectively.
Iran’s geographical position permits the country to become a corridor from west to east, as well as north to south, though to become such lots of development is needed.

Source: Islamic Republic of Iran Railways

Many Importers; Few Producers
Although Iranian pharmaceutical industry has developed significantly during the last decades, but the quality of many products remain low. This issue in Medical Devices becomes even worse.
“1500 trading companies import pharma and medical devices; instead we only have 400 manufacturers, out of which only 80 can be considered successful, in terms of the quality”, said Dr. Hashemi, Minister of Health of Iran, during the inauguration of Iran Health Expo.
Apart from the technology, lack of credit also causes problems for Iranian manufacturers. Although the market is huge with 570 governmental hospitals, but until they do not pay their debts to traders or manufacturers, the industry cannot go much further.

How don’t we use the sun!
In two-third of Iran 300 days per year are sunny; that is equivalent to huge electricity production potentials. According to German Aerospace Centre (DLR), in an area of 2000 km2, a solar thermal power plant with a capacity of 60,000 MW could be installed.
To encourage investment in this field, Iran also has a special offer: investors who buy their solar panels from domestic manufacturers, can sell their electricity to the Government at a 30% higher tariff.
The only private solar plant in Iran, located in Malard, has a capacity of 514 MW.

Source: Renewable Energy Organisation of Iran

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