China Build Railway Network in Iran

China has signed a contract with an Iranian state-run company to build a railway network in the Islamic republic.

The deal, which is worth of $12.86 billion, is to build a railroad network extending 5,300 kilometers (3,293 miles), and was signed when a Chinese delegation visited Tehran, the Construction and Development of Transportation Infrastructure Company said in a posting dated on Monday.

However, it didn't say when the Beijing's team was in the Iranian capital or when work would start.

China, the biggest buyer of Iranian oil second only to Japan, has long been involved in infrastructure projects in Iran.

China has also emerged as the largest trading partner of Iran with direct bilateral trade currently standing at $30 billion, IRIB quoted Assadollah Asgaroladi, the head of Sino-Iranian Chamber of Commerce, as saying. Asgaroladi added that China was also trading indirectly with Iran through the United Arab Emirates to the tune of around $7 billion annually.