ERBIL, Kurdistan Region of Iraq - Iran announced on Thursday that rail corridor projects linking its border crossings with the Kurdistan Region and Iraq are in their final stage and will be completed soon.

The railway memorandum of understanding (MoU) with Iraq is being pursued by the foreign ministry and is “on the verge of being finalized,” said Houshang Bazvand, Iran’s deputy minister of roads and urban development, as cited by the state-owned IRNA news agency on Thursday.

Bazvand added that the project “will play an effective role in strengthening trade, economic prosperity, and facilitating international traffic.” 

The official also called the project one of Kermanshah province’s most important achievements that would enhance its role on the regional transit route.

Trade ties between Erbil and Tehran are extensive and economically vital, with annual trade volume between the two sides estimated at around $6 billion.

Bazvand further emphasized that Kermanshah province has a key share in transit projects as it hosts major border crossings with Iraq and the Kurdistan Region, including Somar, Khosravi, Parvizkhan, and Sheikh Sela. Linking these to the corridor network is expected to boost border exports by 20 to 25 percent, according to the deputy minister.

He stressed that Iran is “determined to bring the corridor projects to fruition as quickly as possible,” citing Supreme Leader Ayatollah Ali Khamenei’s order to prioritize the matter.

The subject was discussed during a Wednesday meeting between Khamenei’s representative in Kermanshah, the governor, and a parliament representative of the province.

In May, the governors of the Kurdistan Region’s four provinces met with Iranian President Masoud Pezeshkian in Tehran to discuss strengthening ties, followed by meetings with governors from western Iran’s Kurdish provinces. During meetings between the Kurdish delegation and senior Iranian officials, the topic of establishing a railway at the shared border crossings was discussed and placed on the agenda.