MEED reported that the state owned rail group will provide electrical systems along the 46 kilometers branch line, which links the passenger terminal in the city of Tabriz in Iran's northwest to the nearby university town.

The Islamic republic has struggled to attract foreign investment to help redevelop its national rail network. Russian Railways is one of the few foreign rail operators carrying out work in Iran, as US led sanctions dissuade most firms from entering the market.

The contract to carry out the work was signed in March last year. It followed a meeting in Moscow between Hassan Ziyari, the president of Iran Rail, the national regulator and his counterpart at Russian Railways Mr Vladimir Yakunin in December 2007.

(Sourced from MEED)