Iranian Railways has started working on the rail line from Chabahar port to Zahedan, along the Afghan border, citing funding delays from the Indian side to start the construction.
The entire 628-kilometer project will be completed by March 2022, Iran said as it launched the track-laying process last week. It will extend all the way to Zaranj in Afghanistan.
The government will tap into the Iranian National Development Fund for the $400 million needed for the project after the Indian government kept delaying it for four years after signing. The project was supposed to be a collaboration by Iranian Railways and Indian Railways Construction Ltd. (IRCON).
This move comes days after China penned a 25-year $400 billion economic and security partnership with Tehran.