A Pivotal Choice in the History of National Investments: The Path to Development Will Change.

Those who left, those who stayed; 60 thousand billion tomans of courage and national pride for a rail transformation

60 Trillion Toman: Not an Expense, But a Necessary Investment

In today's world, no country can achieve sustainable development without strong infrastructure, extensive investments, and economic transformation. Iran is no exception; it faces numerous challenges in transportation, energy, and urban sectors that require a bold transformation plan. But who dares to spend 60 trillion toman for the people? The reality is that this amount is not an expense, but an investment that guarantees the future.

On the other hand, global lived experiences also show that in the era of international competition, only countries with sustainable infrastructure, bold and rapid investments, and efficient economic management can rise to the position of global economic superpowers. As this article is being written, while many of the country’s bold transportation projects are stuck in the approval process for months and years, the Chinese have built the longest, most resilient, and widest sea bridge in just a few months, breaking the Guinness World Record. This highlights that in today’s world, the era of superficial opportunities, time-consuming bureaucracies, and short-term, spectacle-driven policies is over. Sustainable growth is achieved through smart investments in transportation, energy, and modern technologies. Therefore, governments that fall behind in this race will not only be sidelined in economic competition, but they will also have no share in the global future.

Driving Development with the Largest Investment in the History of the Rail Industry

On the last day of Farvardin 1404 (April 20, 2025), Iran's railway transportation industry witnessed one of the largest investments in its history. The Iranian Railways Company, in the presence of the Minister of Roads and Urban Development, signed a memorandum of understanding worth over 60 trillion rials with Dat-One Rail, a subsidiary of the Dat One Value-Creation Group. This memorandum includes the production and purchase of 300 diesel self-propelled passenger cars, 50 freight locomotives, and 600 tank freight wagons.

The significance of this investment becomes clear when we recognize that railway transportation is a key pillar of sustainable development, capable of playing a crucial role in reducing logistical costs, increasing economic productivity, and decreasing environmental pollution. Therefore, this investment not only improves transportation infrastructure but also elevates the country’s rail network to a new level, creates jobs, fosters the growth of related industries, and reduces dependence on road transportation.

Private sector involvement; why isn't the government alone enough?

Full reliance on government resources for infrastructure development can slow progress and reduce project efficiency. Successful countries like China and Germany have managed to keep the engine of development running through extensive investments. If Iran is also seeking sustainable growth, it needs to strengthen the role of the private sector alongside the government.

With capital, technology, and managerial innovations, the private sector can accelerate project execution and prevent resource waste. In this context, the government should take on a supervisory, facilitative, and regulatory role to ease the entry of private investors. The public-private partnership model, successfully implemented in many countries, not only reduces the financial burden on the government but also enhances the quality and speed of project implementation. Ultimately, this approach leads to increased social welfare, public satisfaction, and economic competitiveness.

For Iran, moving toward this development model can create significant opportunities and strengthen the country’s economic position on the international stage.

Transformation through courage, not slogans

Economic transformation is only possible through courage and practical decisions, not ambitious slogans. Many development plans have remained at the idea stage due to a lack of executive will and risk aversion. However, for Iran to move toward progress, it needs decisions based on scientific analysis, feasibility studies, and smart resource management.

Investing in key projects such as modernizing the transportation network or digitizing urban services is not a heavy financial burden, but rather an opportunity for economic growth. A successful example of this approach is the 60 thousand billion toman investment in the rail industry, which, if properly implemented, can lay the foundation for economic transformation. Leading countries have also reached their current position through similar bold decisions based on scientific data.

To realize this vision, Iran must facilitate the entry of the private sector and rely on the implementation of practical policies rather than unrealistic slogans. The future belongs to those who decide and act, not those who remain in doubt.

Those who left, those who stayed; national investment driven by national pride 

In a situation where capital flight and foreign investment could have offered a safer, more profitable, and less controversial option with stronger financial structures and quicker returns, what encourages investors to stay in Iran goes beyond mere economic calculations. The national need for transportation infrastructure development, the urgency of sustainable economic growth, and a sense of responsibility toward the country's future have motivated private sector investors to channel their capital into Iran's rail sector instead. This decision reflects not only a long-term economic vision but also a form of economic patriotism—an intentional choice that has the potential to transform the future of Iran’s transportation and connectivity.

This comes at a time when it is well known that, over the past few years, major investments have repeatedly left Iran due to various reasons such as economic instability, rising inflation, lack of proper support structures, and legal barriers. Many investors have preferred to carry out their projects in neighboring countries or other regions of the world—such as Turkey, the UAE, or Europe—where financial and support infrastructures offer more favorable conditions.

What makes this 60 thousand billion toman investment significant is that the investors chose to stay in the country and contribute to the transformation of the national rail and transportation sectors, rather than transferring their capital abroad. This demonstrates that there are still opportunities within the country which, if properly managed, can attract substantial investments and pave the way for development.

The key question, however, is how to preserve such investments. How can we create economic incentives that encourage both domestic and foreign investors to view Iran as a safe and profitable destination? On this basis, this project can serve as a model for attracting further investment—provided that government support and the growth of the private sector continue.

Challenges and opportunities ahead; not everyone dares to enter large-scale national investments

The 60 thousand billion toman investment in Iran’s rail industry is a bold move that, if properly managed, can transform transportation infrastructure and drive sustainable economic growth. However, investors face challenges that are often overlooked.

Economic risks, policy instability, inflation, and currency fluctuations, along with administrative hurdles and legal complexities, can deter private sector investors from entering such projects. Some prefer to transfer their capital abroad, where returns are quicker and the business environment is more stable. Nevertheless, this bold investment demonstrates that the future is shaped by decisive actions, not by hesitation.

To address these challenges, economic stability must be strengthened, laws must be made more transparent, legal barriers must be reduced, and international cooperation should be expanded to acquire modern technologies. A strong management strategy and effective oversight can prevent delays and improve efficiency. If these conditions are met, this investment can become a successful example of sustainable development in Iran.

What are the economic risks of the 60-thousand-billion-toman investment?

The 60 thousand billion toman investment in Iran's rail industry, despite its growth potential, also comes with challenges that could affect the pace of project execution. Some of the most significant economic risks of this investment include:

– Economic risks and inflation: Economic fluctuations and high inflation may increase execution costs and reduce the profitability of the investment. This factor can make it difficult to allocate financial resources for the continuation of the project.

– Regulatory stability: Sudden changes in economic policies and investment regulations may make the business environment unpredictable for the private sector and hinder the entry of new investors.

– Financing and liquidity: Under conditions of currency restrictions and banking challenges, ensuring sustainable project financing is one of the main issues. Government support can help alleviate part of this pressure.

– Political issues and sanctions: Sanctions may affect the supply of parts, technology, and technical cooperation. However, the possibility of sourcing alternatives from countries such as China and South Korea can help manage this challenge to some extent.

Nevertheless, proper implementation of the project—through the design of appropriate support structures, reduction of legal barriers, and improvement of economic policies—can help manage these challenges and pave the way for sustainable development. Investment in the rail industry is not merely about fleet provision; it is a strategic move to enhance economic competitiveness, reduce transportation costs, and ensure the well-being of future generations. Ultimately, bold decision-making will be the key driver of Iran's economic transformation, and this project can become one of the defining milestones in the country’s transportation history.