Conversation with Bahman Eshghi, Secretary General of the Tehran Chamber of Commerce, Industries, Mines and Agriculture / Ali Kalaii
According to him, governments should be facilitators, not interveners. When government interference and intervention occur, renovation is delayed and wear and tear increases. Our topic of discussion is the wear and tear and problems in the transportation industry in Iran. The monthly magazine “Khat-e-Solh” has addressed the issues in this field and has had a conversation with Behman Eshghi, transportation expert and former director of the Safety and Traffic Office of the Road and Transportation Organization, to hear his answers to the questions of “Khat-e-Solh”.
Dr. Eshghi, who is currently responsible for the general secretary of the Tehran Chamber of Commerce, Industries, Mines and Agriculture, while answering various questions about the peace line, said that in his opinion, “our economy is a state capitalist economy in which corruption, plunder and embezzlement clearly occur.” According to this transportation expert, “in Iran, in all economic aspects, including transportation, non-economic behavior is practiced.”
Bahman Eshghi said in this interview about peace that “the flow of thought in Iran has been suspended, technocrats have been removed from power, and people who understand anything are not allowed to govern.”
You can read the detailed conversation of the monthly magazine “Khat-e-Solh” with Dr. Bahman Eshghi below:
In October of this year, news of the decision by the Supreme Economic Council to replace 85,000 worn-out trucks, buses, and minibuses was released. Can we hope that with this renovation in the country’s transportation, some of the problems related to air pollution will be solved?
I have no hope that this renovation will happen. First, the action must take place before its consequences occur.
Considering that the Economic Council has approved it, why do you think it is not happening?
The approved plan is not feasible. The plan becomes feasible when its requirements are met. The requirements of this plan are clearly three elements: “providing liquidity”, “simplifying laws”, and “eliminating interference”. There is no money for it. Even if there is money, its transfers are problematic. For example, if the problems with its transfers are solved, there is an organization in the country called the Standard Organization that blocks production in the country. When they bring up a large number like 85,000, they say that the bigger the lie, the easier it is to believe. Is it really possible to buy and import 85,000 trucks, buses, and minibuses into the country? If not, how much is our commercial production in this area per year? On the one hand, there is a percentage for domestic producers. On the other hand, it is said that 85 standards must be considered. It is also said that Euro 5 and Euro
The independent Economic Council speaks for itself. A system cannot speak, decide, and act independently. Chain links together create efficiency. When you do not have the ability to produce Euro 6 standard diesel, but you prescribe that trucks should enter with Euro 6 standard, when due to sanctions you do not have the ability to supply 85 standards, and there is no need to supply these standards (because they do not comply with your engineering requirements), when you tell a car manufacturer with production below a thousand units to go and localize 40%, it means you do not know and are not informed about the environment. Then the Economic Council sits and says that 85 thousand trucks, buses, and minibuses should be replaced. How? With what money? Do you have the ability to allocate currency for car manufacturing? A $60,000 order cannot be fulfilled. Excuse me for using this phrase, but these are empty promises; 85 thousand units, which is nothing, not even one unit
In Mr. Rouhani’s government, it was said that 12 billion dollars should be spent from fuel savings for renovation. How many million dollars were achieved? Did it reach 100 million dollars? They put 12 billion dollars from the National Development Fund to import cars and return the money to the National Development Fund from its revenues, but even 100 million dollars were not achieved.
The problem is that there is no need for the Economic Council to intervene. What does the Economic Council have to do with how many buses and trucks should be produced in the country? If the government reduces its interventions in the market, car manufacturers will produce trucks according to market demand. The government, with its interventions, pollutes the environment and creates opportunities for embezzlement of national wealth. In my opinion, these resolutions only pave the way for more corruption. This resolution is neither benevolent nor enforceable. Its proponents seem to be in cahoots with this foreign industry.
Do you accept that we are facing a serious problem of obsolescence in the transportation industry in Iran? The issue of fifty percent of the country’s airplanes being obsolete is being raised. On the other hand, we also have problems in our rail fleet, both in terms of rails and trains themselves. What should be done in this situation?
First of all, let me say that I have no belief in any reforms in this country. But regarding your question, I must say that there is no need for accepting me and people like me. When we still have the 737 series 100 aircraft in our fleet – which is no longer used anywhere in the world as a passenger plane – I have to determine that our fleet is outdated? The world is using the 737 Max aircraft and we have the 737 series 100 Boeing in our fleet, then the gentlemen go and buy the series 200 which was last built in the 1980s.
When at the beginning of this year, at least ten thousand people were killed on the roads of this country, should I say that the country’s road fleet is worn out? This wear and tear is evident from its potholes. I should say that there is a paradox in this country where 15% of the total price of goods is the cost of transportation and they sell diesel to people for 0.8 cents? Meaning they pour practically free diesel into trucks, but fifteen percent of the price of goods in this country is the cost of transportation. In America, diesel costs one dollar per liter. But only seven percent of the price of goods is the cost of transportation.
When the ship is hit from its open head, the result is this situation. Governments should not policy for the renovation of fleets, they should be facilitators. Governments regulate the slope of the land based on the interests of their nations. Successful governments in various sectors, including the economic life of their people, do not meddle and let people live their lives. The Minister of Roads should not say how many trucks he wants. What does it have to do with the Minister of Roads how many trucks the country needs? What does it have to do with the Minister of Roads how many trains are needed? He is a regulator. What does it have to do with him that we need to import a few second-hand trucks? In short, governments should not interfere.
Watch this night game tent! It has been banned from importing since 1397. Now they come and say we want to import second-class cars? Isn’t this embarrassing? We should ask why you banned car imports since 1397 and now you want to import second-class cars. Also, how do you plan on importing cars according to the 85 standards? How can you bring a 10-year-old car with its production standards and then tell me, as a domestic manufacturer, to comply with current standards? Is this fair? Why do you interfere to such an extent with slogans of defending people’s rights? They have come with claims of supporting people’s rights and have passed laws in parliament. They have also given the executive regulations to the government. The honorable government has written the closed-door regulations. They claim to be seeking justice, equality, and national interests, but they act completely against national interests.
All my point is that the government should reduce its interference. Who has given such an order that the deprived money of the people of Iran should be spent on importing trucks? The truck should enter its own process. Hasn’t it happened before? Didn’t they used to transport people’s goods on the roads before? It used to be a competitive space. Both domestic and imported trucks were available. The government did not favor anyone. What does this favoritism mean? Does it mean taking money out of the people’s pockets and putting it in another way and then putting other expenses on the people’s necks? Is taking money from the people’s pockets and giving it to a certain group of people called justice? Let the truck manufacturers do their job.
The implementation of the 85 safety standards has not had any impact on safety in this country. In the automotive industry, four laws have been put in place, all based on safety. What impact have these laws had so far? Why do the accident rates continue to rise? Why are you doing this to the country?
You mentioned accidents. Every year, we witness the death of many citizens in Iran due to car accidents; especially during the New Year holidays. In your opinion, where is the problem?
The accident rate is increasing because the renovation has been delayed due to these actions and laws. As the renovation has been delayed, wear and tear has increased, resulting in higher accident rates and fuel consumption. Of course, the drivers are also to blame. When a driver does not receive enough training, this is bound to happen. When the price of a truck, which is a maximum of $60,000, becomes 8 billion tomans in Iran, the driver is forced to lease it and pay heavy installments. As a result, one person has to work day and night with that truck in order to be able to pay off the installments. The gentlemen have destroyed the structural system in Iran’s road transportation. The truck itself has become an economic enterprise. The driver, who is also the owner of this truck, has to pay installments and also take on the misfortune of providing its parts. Even in Taliban-controlled Afghanistan, a truck is not an economic enterprise. But in
Does it mean that, in your belief, the government should step back from regulating this level of relationship?
“Organizing a relationship that has been interfering for forty years has resulted in this situation. This is not my claim, experience speaks. I say these are a collection of repeated wrong experiences. What positive impact has this interference had on the relationship? By eliminating transportation companies, they have also eliminated their advantage. On the other hand, they have come and developed the phenomenon of self-ownership. When the phenomenon of self-ownership is developed, the performance of the truck also decreases. Increasing self-ownership also reduces the issue of navigation, and reducing navigation increases the emptying of the truck. This is the reason for the high cost of freight. Increasing freight with fuel close to free is not economical. The government should sell fuel at the world price, take road tolls, but not interfere in the relationship between the buyer and the truck owners and drivers. Take road tolls and repair the deteriorating roads.”
Why don’t they allow a truck to enter the country at a price of 60,000 euros? Why does the same truck cost 8 billion tomans in Iran? They need to solve this. Where in the world do they tell someone who wants to import a truck that they have to go and scrap one? In fact, they impose the cost of scrapping an old truck on someone who wants to renovate. What a foolish policy this is. The cost of the truck, with a profit rate of thirty percent, breaks the driver’s back. What is the profit and interest rate in this country that claims to have an Islamic economy? At least thirty percent. You force the driver to go and do leasing and take a loan of 7-8 billion tomans with a profit rate of thirty percent.
The government should make the price of diesel and trucks realistic. They also want to support the domestic industry, in accordance with the regulations of the World Trade Organization (WTO), not more. The World Trade Organization says you should support ten percent.
What is the status of the project related to the Transportation Development Fund for the development of infrastructure and transportation fleet in the country? Has it been activated? Where is the problem?
First, go and ask why Mr. (Davood) Danesh Jafari has left from there? Then the main issue and problem here is that the resources have not been properly managed. They have said to go and sell oil and bring back the money from oil. Does that mean everyone should go and sell oil? The National Iranian Oil Company is responsible for selling oil according to the 1329 law.
While I am fundamentally opposed to the creation of these funds, I say that the government should neither give money nor hinder their creation. These funds are for rent-seeking. I can benefit from these funds, but you cannot. Is this anything other than rent-seeking and special privileges? I am fundamentally opposed to this type of special privilege in the economy of Iran. I am also opposed to commercial rent-seeking. I am opposed to any kind of rent-seeking in the name of defending the rights of the people. The people’s pockets should not be spent on these things. It should be spent on educating and raising their children. It should be spent on their security and health. But it should not be spent on the arrival of trucks.
The economy of Iran is bound by regulations and laws. Let the gentlemen loosen the rope from the feet of the people and allow them to have their businesses. My discussion is purely economic. Let the rules of the market govern transportation and all areas of Iran’s economy. Let them learn from the Prophet of Islam who said in the case of famine in Medina that pricing is in the hands of God. A thousand years later, Adam Smith came and spoke of the invisible hand of the market and explained this issue in his book “The Wealth of Nations”. This plan is the same as a free market. But our economy is a state capitalist economy, in which corruption, looting, and exploitation are clearly present.
اعلام کرد
In the month of Ordibehesht of this year, the International Organization of Vehicle Manufacturers announced.“سلام، چطوری”
“Hello, how are you?”، استفاده از این تعداد خودرو مناسب است؟
The total number of active passenger and commercial vehicles in Iran has been announced to be 15,963,000. Do you think this number is reasonable for a country like Iran? Considering the environmental issues and polluted air, is it appropriate to have this many vehicles in use?“سلام، من یک روبات هستم”
“Hello, I am a robot.”
Shouldn’t we move towards promoting the use of things like bicycles and scooters? Is it generally possible to do these things in Iran?
The World Health Organization divides countries into two categories: motorized and less-motorized countries. We are actually a less-motorized country with this level of transportation. We still do not have one car or means of transportation (including motorcycles) for every household. Additionally, we do not have the option to use bicycles or scooters. Can you use a bicycle in Tehran – a city with streets that have a 13% slope? Furthermore, in the past, neighborhoods were small and accessible. Now, the distance between origin and destination may be twenty kilometers. This is a characteristic of modernization. In the past, a person’s place of work was above their home. Now, a person must travel from Karaj to Tehran Pars to get to work.
We should not give the wrong address to people. The issue is not the number of cars. The issue is the priority of public transportation. I should charge heavy tolls from anyone who wants to go from Tehran to Karaj highway and with these tolls, create three metro lines between Tehran and Karaj. This is justice and proper understanding. Then I should provide buses and metros for them so that when they reach the metro station, they can easily go to their desired destination. The world has already done this, there is no need for us to reinvent the wheel.
Bicycles and scooters are not the solution to major urban problems like Tehran. Advanced, accessible, and affordable public transportation is the solution. It doesn’t matter how many millions of vehicles exist, what matters is how many we use. However, in the world, there is a problem called congestion pricing. Someone who wants to use a personal vehicle must pay the costs of congestion. These costs are taken from the individual and spent on public transportation. Therefore, it doesn’t matter how many vehicles exist in Tehran, but when an uneducated mayor comes and builds a two-story bridge in Tehran, he sends a message to the vehicle owner to use their personal vehicle. At the same time, the same municipality that builds the two-story bridge takes the government’s collar and asks why you don’t pay for me to buy a metro car? The problem here is that they allocate the two-story bridge for exclusive transportation so that the vehicle owner can easily use their vehicle without any consequences.
So, to summarize, I must say that first of all, we are not a motorized country. Secondly, the issue of pollution is not related to the number of passenger cars, but rather the problem lies in the management of their use.
On December 3rd, we have World Disability Day ahead of us. The issue of public transportation and the accessibility for people with disabilities is a serious problem in our country. What is your evaluation?
We are a country that is still suffering from the effects of eight years of war. The best children of this nation were left with disabilities due to the war. Another portion of our fellow citizens become physically disabled for reasons such as car accidents. Additionally, there are physically disabled individuals present in our country and they are part of our society. However, in our country, these individuals cannot meet their daily needs like a normal person. It should be noted that the issue of transportation is fundamentally related to urban architecture. If the urban architecture is not suitable for the disabled or physically disabled individuals, and if the transportation system is not suitable as well, the necessary balance will not be achieved. In Tehran, we do not have a single sidewalk for these individuals to use. The access to residential, public, administrative, and hospital buildings is also unsuitable for the disabled and physically disabled individuals. The problem lies not only in transportation for the disabled, but also in the furniture and architecture of the city and buildings.
The problem here is that the flow of thought in Iran has been shut down, technocrats have been removed from power, and those who understand anything are not allowed to govern. I have no involvement in political layers and it is not my issue, but I say that the municipality should be in the hands of technocrats. How waste is collected and how air pollution is dealt with should be entrusted to technocrats. When lines are drawn and people are labeled as unworthy, this is the result we see. People either reach a level of privilege where they can elevate themselves above the average level of society, or they are unable to reach it and fall down below. I am not talking about equality and brotherhood. I am talking about the possibility of living and saying that humans have the right to life.
If there is any unspoken point left at the end, please mention it.
In Iran, in all economic matters including transportation, there is non-economic behavior. This non-economic behavior means spending a lot of money to destroy something! I am talking about useless structures like the Sadr Bridge that is built and then they say they don’t have money to spend on the metro at the same time.
The problem here is that without any investment, all assets have been consumed in forty years.
Thank you for the time you have given us in the monthly magazine of the Peace Line.
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