The following is a recent interview by ITM with Dr. Javaheri:

Q: A deep look into the Iranian industry tells us that the emphasis has always been on production for domestic consumption. In other words, our industry has not been developed for export purposes. Do you think this attitude would change in the years to come?

A: In recent years, except for the industries that are monopolized, there has been some transformation in industries working in a competitive market. The question of export is being seriously followed up by various companies and the government plans too, are formulated with an aim to improve the rules and regulations with special focus on promotion of exports.

Q: It seems our exports to certain countries (in Asia and Africa) are made on strategic grounds rather than for economic aims?

A:  Exports are commercial operations whereby certain products or services are directly or indirectly provided to consumers at international level and the value of these products or services are received from the clients via the banking system. Therefore, the name of the country or its geographical location is not very important. The important thing is the successful transaction which could bring in some profit to the company.

Considering that European and North American companies are already saturated with goods and services, most of the manufacturers have turned to the emerging markets in Africa and Asia which have a thirst for goods and services and need them for their economic development. Wagon Pars Company too is pursuing the same policy. For instance, our export targets are basically the countries which are seeking to build or develop their railway system. For the same reason, we are targeting mostly Latin America, Africa, Asia and the Middle East. It is imperative for WPC to make profit in an export activity.

Q: When did you start exports and what accomplishments have you made so far?

A: PWC started its production with cargo wagons in 1983. Shortly after and through transfer of technology from credible European companies we completed our production basket by manufacturing various types of cargo, passenger, and metro wagons, train set and locomotives. PWC’s diversified products and its technical expertise prepared the ground for export activities as of 1992.

Our first contract was to supply storage wagons to Syria. Soon after we supplied 67 passenger wagons to Bangladesh and 180 roofed wagons to the Sudan. PWC has so far exported more than 1000 cargo wagons and 67 passenger wagons which is a relatively good record.

We believe that after 14 years of export activity, PWC enjoys suitable grounds for exports both in terms of technical and technological capabilities as well as type of products. For the same reason, surveys and evaluations have taken place over the past few years to identify new markets in countries preparing to launch or develop railways. Our concentration has been on Africa and Asia but there some opportunities to discover the Latin American markets too.

As a matter of fact, our marketing activities over the past couple of years have been very successful and we have managed to expand these markets qualitatively and quantitatively through sound planning.

We have signed an agreement with the Sudan Railway Organization to supply the country with 550 cargo wagons which are being manufactured. Based on another agreement with Cuba, we will supply them with 550 cargo wagons and 200 passenger and generator wagons.

A Chinese company has also ordered 160 Bogie wagons specially made for metric railways. PWC has currently taken over the markets in Syria, Sudan and Cuba and hopes to extend sales to the neighboring countries such as Iraq and Pakistan.

Q: Considering that your company is mainly involved in the area of exports, what about meeting the domestic needs?

A: With regard to the Fourth Development Plan, we have tried to develop our production lines in terms of technology, quality and quantity in proportion to the domestic needs. At present, the production line of mainline locomotives with a speed of 160 km/hour and a record of three locomotives per month is active with the cooperation of ALSTOM Company.

The IRI Railway Company intends to purchase 100 locomotives and our company will build 80 of the wagons. Also, the diesel hydraulic train set production line for 160 km/hour purpose is active with cooperation of Siemens Company. Raja Company has ordered manufacture of 15 four-wagon sets to PWC. The production line for metro wagons has also been launched in cooperation with China’s CRC Company. Another contract has been concluded with Tehran Urban & Suburban Railway Company for construction of 77 wagons. Three metro trains have already been delivered and are in service.

Q: What are our domestic production capabilities and what are our imports from abroad?

A: In terms of rail fleet, more than 80 percent of freight wagons are built by utilizing domestic technology. Concerning passenger wagons, the percentage varies depending on the orders placed by the clients. In recent years, attempts have been made to supply most of the wagon interior design parts and basic equipment such as air conditioning and electricity systems domestically. Generally speaking, it can be said that 70 percent of domestic passenger wagon equipment are procured domestically.

Q: What are domestic rail sector’s potentials in attracting foreign investment?   

A: Rail industry projects such as construction of new rails, rail fleet, high speed lines and development of metro lines in big cities are basically all major projects which could naturally attract foreign investors in project management and financing.

Big projects must be implemented by a consortium with domestic companies being part of it but the presence of foreign investors and partners is a must. Anyway, Iran’s rail industry has high potentials and can be regarded as the pillar of development. It is a very important and strategic industry and certainly a big portion of domestic and foreign investment would go to this industry in the coming years.