The deal was signed between Iran's Deputy Head of Iranian Railway Company for Planning and Economy Nurollah Biranvand and Spanish Railway Infrastructure Management state company's International Relations Director Fernando Nicolás Puiggarí on Tuesday.
The MoU was signed on the sidelines of the 5th International Railway Transportation Exhibition.
"Spain's railway has rich experience in railway traffic management and we wish to use the experience by signing the MoU," Biranvand said.
He said the deal will come into effect for three years on maintenance and reconstruction of the cargo and passenger transportation capacity.
"The Spanish side will also contribute to transfer of technical know-how and provide necessary education for the Iranian railway personnel," he added.
The 5th International Exhibition of Rail Transportation, Related Industries and Equipment kicked off in Tehran on Monday with the participation of over 160 domestic and 130 international companies.
Iranian Road and Urban Development Minister Abbas Akhoundi and Head of Iran's Railway Company Saeed Mohammadzadeh were present in the opening ceremony of the four-day exhibition.
Several countries, including Sweden, Switzerland, Belgium, France, India, Ukraine, New Zealand, Turkey, Italy, Latvia, Spain, Russia, Czech Republic, China, Germany and Serbia are attending the major event which is the world's second largest exhibition in the field.
Major objectives of the exhibition include invitation for producing the equipment needed by the railway companies, holding specialized meeting with rail industry officials and displaying the latest achievements in rail industry.