There Isn't A Public Railway System In Iceland
Iceland doesn’t have a public railway system. There have been some proposals, but none of them were realized. It’s not like there are no railways at all, but one railway was built to use for the construction of harbour breakwaters, and another for transportation of produce and materials to the one of the country’s first industrial farms. The main reasons for not making a public railway system are the small population and the harsh environment, as well as the developed road infrastructure and competition with cars.
I can respect the need to control population growth. However, I am baffled by your choice to characterize the policy as "admirable in these times".