Contrarian
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BRT systems are inherently more expensive to maintain than Monorail or Metro systems friend. But they have minimal capital expenditure by far. That is why turning an operational profit on a BRT is harder.@Contrarian
Thanks for your reply, but what you have said was already in my mind. I have wondered about the business model of the whole thing and I doubt if it would turn a profit, given that Metro Bus is already a subsidized project as far as its operation is concerned.
It could be that during construction of the first phase of the planned system within 27 months (36 months, 3 years from now) the subsidy would be lifted, adjusting public expectations and allowing the government to pass on the actual costs for this project to be self-sustaining and allow for further investment in Lahore's Metro system.
Another aspect would be expansion of Lahore's metropolitan area. Already a sizeable chunk of population lives outside of the planned system's reach. Notice the South side of the project which is served by three lines. The Southern terminus of all three lines are well inside developed area. Given that the Southern side of Lahore is projected to grow faster than any other, the three Metro lines would already be inadequate by the time they are completed.
(Hey if anyone wishes to reap major profit from real estate investment, they should buy plots South of 'Defence Road' - the one that runs between Mohlanwal on Multan Rd to Kahna on Ferozepur Rd. I am already in buying mode - going to see a site today.)
Turning an op. profit on the Monorail system would be much easier. The idea that you suggested is very doable, however always remember that the capital costs can never be recovered. So there is no point is making the Monorail ticket so expensive in a futile attempt to be able to fund further investment in the Monorail System using the operational systems revenues.
All that is required is that the day to day operational expenditure and maintenance plus interest(which is minimal in case of developmental loans) to the foreign country is covered. There are very few cities that have been able to achieve even this.
I think you are being too harsh on the policy makers here. The system would expand slowly to cover more and more areas by building more lines in the future. Atleast let this start.
Oh and By the way, Monorail/Metro always push up prices in the localities they are in. Try to buy a plot on the main road(as opposed to the locality of the Metro station)- however small - on which the Monorail line will run. You wont regret it
These kind of loans are different from the IMF kind of loans.so now we are going to be indebted to China as well..
They carry almost negligible interest.
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