Iran's Pars Wagon Company has signed a 135-million euro contract with Cuban Railways for the production of freight and passenger cars.

Pars Wagon is to gradually deliver 100 freight and 200 passenger railway cars to Cuba's state-owned railway company over the next three years.

"The first contract is for 100 boxcars worth over nine million euros, which are to be delivered by 2008," said Pars Wagon's managing director, Gholam-Reza Razzazi, at the ceremony held in Tehran's Esteqlal Hotel, where the deal was signed.

"The second is for 200 passenger cars, including 146 standard gauge cars, 18 dining cars and 18 generator cars to be delivered by 2008, 2009 and 2010 and worth over 126 million euros, which brings the total value of the contract to 135 million euros" he added.

This recent contract is the second deal signed between the two companies, the previous one involving production of 100 hoppers, 150 flatcars and 200 tank cars specifically designed for carrying fuel.

MJ/GM/BGH