Iran and Russia signed a contract yesterday to kickstart work on the 162 km Rasht-Astara railway in Iran, under the framework of the 7.2k km International North-South Transport Corridor (INSTC), PressTV reports. The agreement, which was inked by the countries’ senior transportation ministry officials in Tehran, outlines specific details for the construction of the railway and allows construction teams to begin working on the project site, according to PressTV.

Timeline: The contract sets a timeline for the project, with work scheduled to begin in early 2024, according to PressTV. Construction is expected to conclude within three to four years.

ICYMI: The EUR 1.6 bn railway, for which Iran and Russia inked an agreement in May, the EUR 1.6 bn, will connect Rasht, located near the Caspian Sea, and Astara, situated on the border with Azerbaijan. Upon its completion, this railway link will enable the transportation of freight by rail from the Persian Gulf to Helsinki in Finland, passing through Russia's Saint Petersburg, according to Iran’s official news agency IRNA. It is considered a vital part of the INSTC, which connects India, Iran, Russia, Azerbaijan, and other countries through railways and sea routes.

The INTSC will boost cargo capacity…: The volume of cargo transportation through the INTSC could reach 30 mn metric tons annually, Russian presidential aide Igor Levitin is quoted as saying.

…and shipping: Moscow has followed Iran’s lead by expanding its shipping fleet in the Caspian Sea in a bid to enhance trade along this route, Levitin said. Iran also recently purchased ships from Russia to use for the corridor.

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