The Trans-Iranian Railway was a major railway building project started in 1927 and completed in 1938, under the direction of the Persian monarch, Reza Shah, and entirely with indigenous capital. It links the capital Tehran with the Persian Gulf and Caspian Sea. The railway connected Bandar Shah (now: Bandar Torkaman) in the north and Bandar Shahpur (now: Bandar-e Emam Khomeyni) in the south via Ahvaz, Ghom and Tehran. During the land reforms implemented by Mohammad Reza Shah in 1963 as part of the "White Revolution" the Trans-Iranian railway was extended to link Tehran to Mashhad, Tabriz, and Isfahan.
The idea of a railway connecting Russia and India was proposed by several private Russian promoters in 1889, 1900, and 1905. However, the Russian government declined such proposals, fearing that it would jeopardize Russia’s geographically enabled commercial dominance in Iran as well as complicate relations with the British. In 1889 Russia and the Shah agreed that no railways could be built in Iran without the mutual consensus of the Russians. However, by 1910 the agreement was vetoed in the Iranian Constitutional Revolution. Fears that Russian interests were no longer primary, alongside the surfacing of anti-Russian political forces in the country, and the emergence of the German threat, made it more important than ever for the country to protect its commercial interests in Iran by building a railway.
In order for the railway to be built, the problem of raising enough capital to fund the project was discussed. The Russo-Japanese War of 1905 was one of several factors leaving Russia on a tight budget, preventing Russia from providing the funds. The British were solicited as well, but the request could not be granted, pushing back initiation of the railway’s construction further. Nikolay Khomyakov, President of the Duma, and I.A. Zveginstov, supporters of the Anglo-Russian Entente, promoted a private initiative for a railway connecting India and Europe, to counteract the economic threat Germany posed to the region. Germany’s influence over the region was enabled by the Baghdad Railway, which connected Germany and the Ottoman Empire (modern-day Turkey, Syria and Iraq), enabling Germany to begin plans for connecting the railway to Tehran to increase its commercial enterprise. Despite opposition from the Russian Ministry of Foreign Affairs and Ministry of Finance, there was also a great deal of support for the project.