However, Boital’s financial resources were insufficient for such an undertaking. Lacking both capital and strong backing from European banks, he was unable to start construction. Consequently, he transferred the concession to a Belgian investment group with more substantial funds and experience in railway development.
The Tehran–Rey line was intended to be only the beginning of a much larger transportation network. Company managers envisioned a grand north-south line connecting the Caspian Sea to the Persian Gulf via Tehran. Such a line would have profoundly transformed Iran’s transportation system, but geopolitical realities quickly crushed this dream.
Geopolitical Constraints
During the late nineteenth century, Iran was caught between the competing interests of the Russian and British Empires—both eager to prevent the other from gaining decisive influence in the region. A rapid transportation link between northern and southern Iran, enabling swift military movement or trade, was unacceptable to these imperial powers. Russia feared British access to the north; Britain feared Russian access to the Persian Gulf. As a result, any large-scale rail project beyond the Tehran–Rey line faced diplomatic obstruction.
