Dr. Farhang Toloei, Managing Director and a member of Board of Directors at Rail Pardaz Seir Co., stated, “The cost of road transport has risen sharply and railway right of access is not considerable compared to the cost of road transport”. He added, “Efforts are made so that there will be competitive conditions; however, due to the current economic climate, obtaining right of access will also cause numerous problems for the owners of the goods”.
According to Bourse-e-emrouz correspondent, developing the rail networks has been among the achievements of the governments in the past few years. However, many experts believe the development has not been highly successful in boosting national production and job creation. Mines are a major sector for using railroad lines; nevertheless, in this respect, we have fallen way behind the countries that make the most of rail industry. We have conducted an interview with Dr. Farhang Toloei, who is the Managing Director and a member of the Board of Directors at Rail Pardaz Seir Co. Toloei believes the government restrictions obstruct private sector investment in this field. Excerpts of the interview are provided below.
Q: Why is it that the mines do not use rail transport to carry their cargo of minerals?
A: There are various reasons for this which are better known by the experts of this field. So the question must be directed to them. But please note that the rail transport is known as heavy transport in the world and is highly effective for the mines with mass production. But the point here is the lack of time management in the railway and the government management approach. In this kind of management, the government fails to provide proper services and due to government bureaucracy, there are some delays at times preventing the cargo from reaching the destination on time; therefore, the owners of the goods are not really willing to make use of rail transport.
The Required Infrastructure for Carrying Different Cargo Including Mineral Products
Unloading of the cargo at the ports is not really performed properly at the moment and given the limitations imposed by the government, it is not easy to make investments to develop this area. Therefore, developing one section alone is not enough and the development must be concordant and well-balanced so that the transport will be carried out properly. If the government paves the way for investment in different rail-related areas including this area, and gives the investors certain facilities, proper investment will be made by the private sector. One of the problems of the transport industry of the country is the lack of a clear administration in this field. Keep in mind that unloading and loading are up to the ports. Therefore, intersectional cooperation is a priority.
Investment in the Mining Industry by Gaining Rail Right of Access Is Not Commercially Viable
The cost of road transport has risen sharply and the Railway right of access to the railroads is not commercially viable in comparison with the cost of road transport. Of course, attempts are being made so that there will be competitive conditions; however, considering the current economic climate, obtaining the right of access also causes various problems for the owners of the goods.
Necessity of Developing the Rail System
At present, only ten percent of the freight transport is conducted by the rail system; therefore, given the current economic climate, we can still feel the need for development. This certainly requires investment and if the government or the private sector cooperates, desired results can be achieved.
Q: What about the international transport section?
Presently, Iran’s Railway is trying to boost international freight transport and is negotiating with many countries. The authorities of our dear country’s Railway Organization have recently negotiated with their Turkish counterparts and made some agreements. If agreements are reached on the required tariffs, we can expect considerable progress.