“Iranian companies have expressed their readiness to create a consortium for building roads and railways in Armenia and connecting their rail network to Iran’s,” Deputy Minister of Road and Transport Reza Pilpayeh said, Press TV reports citing Mehr news agency.

According to Pilpayeh, the rail network will be 540km, of which 480 km will be in Armenia and 60 km in Iran.

He added that a Memorandum of Understanding had been signed between the two sides but the agreement had yet to be implemented.

With the implementation of the agreement, Armenia’s rail network will be effectively connected to international waters via the southern Iranian port of Bandar Abbas.

Pilpayeh also announced the readiness of Iranian companies to participate in the construction of 624km of road inside Armenia which will directly link Iran to Georgia.