A consortium comprising of Iran, Austria and Germany has reached an agreement to construct a 407 mile long railroad linking the northeast Iranian city of Mashhad to Gorgan and Bojnurd.

"Experts ended preliminary studies on the project and the first stage of the project is under way," Khorasan Razavi Governor Mohammad-Javad Mohammadi Zadeh said, adding that the government should allot €1.8 billion to finance the project.

The consortium has pledged to cover 85% of the cost, while Iran's Road and Transportation Ministry will cover the rest.

Some 1.5 million passengers will be able to commute daily, and freight trains will carry two million tons of cargo annually once the project is completed.

Peter Hartman, Chairman of the consortium and German MRK company executive director, said that they are committed to the project and “will not bow out if pressured by the United States".

PRESSTV, Iran, November 8, 2007