A Memorandum of Understanding (MOU) has been signed between Iran and Iraq for a 32 km railway line joining the two countries together. The railway PPP project connects the town of Shalamcheh located in Iran and the Iraqi city of Basra.

The project was at a halt for almost 10 years due to some economic issues and shortage of funds. It would also connect a 17 km railroad linking Khorramshahr to Shalamcheh in Iran.

The joint venture between the Islamic Republic of Iran Railways and Iraqi Republic Railways Company will be established in two months. The Iraqi side should deliver the project to Iran within six months to start the construction of the project.