A memorandum of understanding (MOU) for cooperation was signed between the Makou Free Zone Organization and a Chinese company. This agreement aims to attract strategic investments in the energy, railway transport, automotive, and mining sectors.
The goal of this agreement is to develop investment projects and implement major initiatives in areas such as energy, railway transport, logistics, mineral extraction, and mineral industry, as well as the production of electric and hybrid vehicles. The MOU covers technical and engineering cooperation, financing, management, and execution of infrastructure and economic projects within the zone.
Key priorities include studying and participating in the development of the East-West railway corridor and the Tabriz–Cheshmeh-Suray line, which is intended to connect Iran's railway network with Turkey and international routes. Additional attention is paid to solar and thermal power plants, mineral processing, the production, assembly, and import of hybrid and electric vehicles, the development of logistics villages, the creation of land ports, and transit infrastructure.
Both parties will jointly conduct feasibility studies, develop financial models, prepare investment packages, and attract both domestic and foreign investors for priority projects in the Makou Free Zone.
The Makou Free Zone, located in West Azerbaijan Province of Iran, near the borders with Turkey and Azerbaijan, is becoming a vital industrial and transit center. This Chinese partnership demonstrates Iran's desire to deepen economic ties with Beijing despite sanctions, utilizing China's experience in high-speed rail transport, renewable energy, and electric vehicle manufacturing.
The East-West railway corridor is particularly significant as it is part of the International North-South Transport Corridor (INSTC) and can shorten freight routes between Asia and Europe. For China, this aligns with its 'Belt and Road' initiative, offering an alternative land route. For Iran, it means gaining much-needed foreign capital, technology transfer, and job creation.
Despite geopolitical obstacles, including sanctions, the implementation of these projects could transform Makou into a logistics hub, stimulating non-resource exports and positioning Iran as a key transit bridge between East and West. In recent years, relations between Iran and China have been elevated to a comprehensive strategic partnership, with both countries focusing on energy, infrastructure, transit, and technology under a 25-year long-term cooperation agreement. China, as Iran's largest trading partner, plays a crucial role in developing transit corridors and railway projects, while Iran's unique geopolitical location facilitates China's access to markets in West Asia and Europe. Cooperation in the Makou Free Zone is a clear example of this strategic partnership, moving beyond traditional oil contracts towards advanced infrastructure and industrial projects.