Iraq recently announced that they will be delivering oil derivatives to the south using rehabbed rail tank cars. About 100 rail tank cars have been rehabilitated by the company workers themselves along with most of the company's damaged buildings and equipment according to the local al Sabah newspaper.
The Iraqi Republic Railway Company (IRR) decided on using the country's rail system in order to revive the railway industry and secured a contract with the Ministry of Oil. They are now transporting about 1,000 cubic meters of oil derivatives a day from the Baiji oil refinery in Salahudin province north of Baghdad to the port of Umm Qasr in the southern province of Basra.
The company has started importing about 250 more rail tank cars with 39 of them delivered just recently. Another 150 will be arriving in the coming days while the remaining 61 will be delivered at a later date according to Talib al-Husseiny, head of the IRR.
This move is part of Iraq's aim of reviving its companies that have been affected adversely by years of wars and conflicts. Hopefully, it will provide the needed catalyst in pushing its economy further by reducing the country's dependence on the export of crude oil.
At present, Iraq's economy is heavily dependent on crude oil exports representing about 90 percent of the country's revenues. IRR's contract with the Ministry of Oil will easily turn the railway company into one of the profitable companies in the republic.