Gov’t Intervention in the Transport Economy to Be Minimized

TEHRAN (Iran News) Speaking at the Second Conference on Transport and Economic Development, jointly organized by the Tehran Chamber of Commerce and the Ministry of Roads and Urban Development, the minister outlined the government’s new policies aimed at reforming revenue mechanisms and expanding private sector participation in the transport sector.

The conference was held at the Raizen Conference Center on the eve of National Transport Day and was attended by senior officials from executive bodies, members of parliament, and representatives of private sector associations. In her address, Sadegh said that under current conditions, “the government has no choice but to reconcile with the private sector.”

She noted that in past decades—and even in recent years—governments were able to postpone decisions and defer opportunities with relative ease. “Today, however, we have reached a point where there is no ‘next opportunity,’” she said, adding that the long-standing barrier of distrust toward the private sector has begun to crack.

Referring to the nearly two-year lifespan of the 14th administration, the minister said several projects have already been implemented under public-private partnership (PPP) frameworks. She stressed that the Ministry of Roads and Urban Development is seriously pursuing this model of cooperation and considers it essential for the future of the country’s transport infrastructure.

Addressing reforms in tariffs and revenue mechanisms in the transport sector, Sadegh Malvajerd explained that under a parliamentary resolution, direct and mandatory price-setting in this sector had effectively been brought to an end. However, developments in other areas of the economy had prompted the Market Regulation Headquarters to intervene in transport tariff pricing as well.

“The ministry made every effort to remove transport pricing from the purview of the Market Regulation Headquarters,” she said. “We have consistently emphasized that the private sector must be able to determine how it will secure returns on its investments in transport.”

She added that at the most recent meeting of the Market Regulation Headquarters, it was approved that all matters related to transport services pricing would once again fall under the authority of the Ministry of Roads and Urban Development and the Supreme Transport Council, with the participation and input of the private sector.

Sadegh also pointed to reforms underway in the regulation of ports and maritime transport, an area traditionally characterized by complete state dominance. “We have begun making changes in this field as well,” she said, acknowledging that there is resistance along the way. “With the support of the private sector, we will overcome these challenges too.”

The minister highlighted the establishment of a Transport Fund, noting that it creates an opportunity to define and implement joint projects between the Tehran Chamber of Commerce and the Ministry of Roads and Urban Development. She described the fund as a practical mechanism to facilitate investment and improve financial sustainability in transport projects.

Turning to transport diplomacy, Sadegh Malvajerd said that the 14th administration has made serious efforts to expand dialogue with neighboring countries. She emphasized that transport serves as the driving force behind economic diplomacy and plays a central role in strengthening regional and international economic ties.

She announced that the government plans to complete the Chabahar–Zahedan railway line by the end of the current year. According to the minister, the project is not only vital for Iran but also holds significant importance for neighboring countries. “Through synergy and cooperation in this area, we can bring about a major transformation,” she said.

Sadegh further revealed that during negotiations with Turkmenistan and Russia, both countries agreed to route their transit cargo destined for open waters through Iran. She also said that a single-window customs system linking Iran, Azerbaijan, and Russia has entered the operational phase, a development expected to streamline transit procedures and enhance regional trade.

In another part of her speech, the minister stressed that Iran still enjoys a considerable level of social capital. Referring to the 12-day imposed war that occurred recently, she recalled that during this critical period, cooperation and synergy in transport and cargo transit exceeded even what was witnessed during the eight-year Iran–Iraq war.

“Despite the pressure and extraordinary circumstances, the transport and transit sectors demonstrated a remarkable level of coordination and resilience,” she said, underscoring the capacity of the country’s institutions and private actors to work together effectively in times of crisis.

In her concluding remarks, Sadegh said the government must listen carefully to existing obstacles, challenges, and proposed solutions—and act on them. “Government intervention in the economy must be minimized,” she said, adding that this approach is being pursued in earnest within the Ministry of Roads and Urban Development.

She reiterated that reducing state interference and empowering the private sector are not merely policy choices but necessities dictated by current economic realities. According to the minister, the success of Iran’s transport sector—and by extension its broader economic development—depends on building trust with private investors, ensuring regulatory stability, and adopting a governance model based on partnership rather than control.