Prior to the feasibility study being completed, the Southern Armenia Railway was anticipated to be a 316km railway linking Gavar, 50km east of Yerevan near Lake Sevan, with the Iranian border near Meghri.
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A separate tripartite memorandum of understanding was signed in Yerevan by Rasia FZE, Russian Railways (RZD) subsidiary South Caucasus Railway, and the government of the Republic of Armenia concerning technical cooperation, investment, and the future operation of the Southern Armenia Railway.
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According to the World Bank, Armenian Railways was in dramatic need of major investment, including the replacement of rolling stock, rehabilitation of the main line between Yerevan and the Georgian border, renewal of electrification, and bridge reconstruction.
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However, because the border between the two countries is closed, the line from Yerevan is operational only as far as Yeraskh.
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In mid-September 2013, Rasia FZE announced in a meeting with Armenian Prime Minister Tigran Sargsyan the achievement of a key milestone for the Southern Armenia Railway, including the release of a highly favorable feasibility study and the recommended railway design route from China Communications Construction Company.
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