Iraq and neighbouring Iran are pushing ahead with a project to build a rail network linking their border areas, officials were reported on Monday as saying.

The rail line will stretch around 36 kilometres and will link the Southern Iraqi Basra Governorate with the Iranian border down of Shalamcheh, they said.

After it is completed, the train will have the capacity to transport nearly three million passengers per year, said Younus Al-Kaabi, Director of the Iraqi General Rail Company, a subsidiary of the Transport Ministry.

“The two countries have already finalized an agreement for this project….the Iraqi part of the rail has been included in the 2023 budget,” Kaabi told Shafaq News agency and other Iraqi publications.

He noted that Iraq has already allocated 215 billion Iraqi dinars ($148 million) for the project, which will largely boost movement of goods and goods between the two countries.

The agency quoted Hazim Naji, an advisor to the Iraqi Prime Minister, as saying during a visit to Tehran on Sunday that all obstacles have been cleared for the project.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)