Seems there is a failure to understand gearing as it relates to RPM and torque. If you have forgotten high school physics, the the torque is the inverse of the gear ratio. So if you divide the gearing by half, you double the torque.
So very simply, if the engine is turning twice as fast, the gearing doubles the torque for the same RPM output. Example: Your diesel is rated 1200 ft-lbs at 1500 RPM. My 502 is 600 ft-lbs at 3000 RPM. Since my engine is turning twice as fast, it has to be geared down to 1500 RPM. 2:1 gear ratio. That gearing of 2:1 will double the torque.
Your drivetrain goes through multiple stages of gearing to achieve road speed. If the source engine is designed to spin twice as fast, it will be geared down twice as much to achieve the same road speed. This extra gearing multiplies the torque.