China Adds $8 Billion to Funding for Railway Project ML-1

[SherDil]

Pakistan Railways’ Mainline 1 (ML-1) will receive additional funding of $8 billion under CPEC, increasing the project’s the total funding to $54 billion. China had originally committed to a $46 billion amount.

Previously, Beijing has enhanced funding for upgrading Pakistan Railways by $5.5 billion.

Will Be Completed on Priority
According to The News, China intends to complete the rail project on priority basis within 3 to 4 years, without involving any third party loans or donors.

Third party loaners would delay the project by introducing different procedural rules and requirements.

The Asian Development Bank (ADB) may be withdrawing its $1 billion to $2.5 billion credit line for the ML-1. The bank will make a formal decision on this in the next few weeks when officials from the ADB visit Islamabad.

PM to Visit China for OBOR
Besides the ADB, Chinese banks are also interested in financing the upgrades for Pakistan Railway. The financing agreement is due to be finalized at the upcoming visit of Prime Minister Nawaz Sharif to China. He will be going at the international conference for the One Belt One Road (OBOR) initiative in May this year.

A few days ago, Minister for Planning Ahsan Iqbal mentioned that the Chinese want to up the pace of the rail network upgrade. They also wanted some of their banks to pay for the upgrade with the final decision for the matter coming soon, according to the Minister.

CAREC initative
In the beginning, ADB was investing into the project under their Central Asian Regional Economic Cooperation (CAREC) initiative.


The ML-1 is a 461 km track connecting Peshawar and Lahore. 411 km of the ML-1 will be upgraded with a new signal and telecommunication system. The lines will be dualized and a 53 km section from Kaluwal and Pindora will be realigned and dualised.

https://propakistani.pk/2017/04/10/china-adds-8-billion-funding-railway-project-ml-1/

 

[Clutch]

This is a huge increase in investment in Pak rail and a significant increase in the scope of the upgradation.

This is very exciting because it means that China is planning a direct rail link similar to the road karakoram highway into China. This will eventually evolve into the rail karakhoram.

Ultimately, to make CPEC and Gwadar a true success... you need a rail link to improve the transport capacity and reliabilities.

Looking forward to see how this progresses.

 

[el 3mir]

I hope this train is pollution-free and environmentally friendly. We want a green and clean Pakistan for the future. Same for the rest of the CPEC projects.

 

[randomradio]

What the hell's happening? $8B to upgrade an existing line? What are they doing, laying tracks made of gold?

 

[Verve]

What the hell's happening? $8B to upgrade an existing line? What are they doing, laying tracks made of gold?

Yes!

 

[DJ_Viper]

What the hell's happening? $8B to upgrade an existing line? What are they doing, laying tracks made of gold?

The news here is obviously marginalized to show less scope. The real deal is a two phased rail link, 1: a direct link to China for freight service, allowing the Chinese to send and receive important goods within days of ships docking at the Gawader port. And 2: a higher speed passenger rail link to China.

Both the projects will then be connected to the Central Russian states around the Chinese-Pakistani border. This will link Pakistan's rail link to the Central Russian states so that they can use the Gawader port right away (as expanding highway link to that region will take a few more years), as well as enable people to people travel for tourism between China, Russian states and Pakistan.

Pakistan will start to grow very rapidly by the end of 2018! This CPEC project is the most significant economic activity generating project in the human history, eventually connecting over 4+ billion people (If India doesn't join. Otherwise, it'd connect around 5.5 billion people and markets of the globe).

 

[Kabira]

Good news, work should start this year and complete by 2020.

 

[randomradio]

The news here is obviously marginalized to show less scope. The real deal is a two phased rail link, 1: a direct link to China for freight service, allowing the Chinese to send and receive important goods within days of ships docking at the Gawader port. And 2: a higher speed passenger rail link to China.

Both the projects will then be connected to the Central Russian states around the Chinese-Pakistani border. This will link Pakistan's rail link to the Central Russian states so that they can use the Gawader port right away (as expanding highway link to that region will take a few more years), as well as enable people to people travel for tourism between China, Russian states and Pakistan.

The Pak-China rail link is completely different. They are talking about ML-1.

Pakistan will start to grow very rapidly by the end of 2018! This CPEC project is the most significant economic activity generating project in the human history, eventually connecting over 4+ billion people (If India doesn't join. Otherwise, it'd connect around 5.5 billion people and markets of the globe).

You are confusing OBOR with CPEC.

CPEC is a tiny part of the OBOR. It is significant only to China and Pakistan, no one else.

 

[DJ_Viper]

The Pak-China rail link is completely different. They are talking about ML-1.

You are confusing OBOR with CPEC.

CPEC is a tiny part of the OBOR. It is significant only to China and Pakistan, no one else.

No, they are confusing YOU by putting ML-1 . You guys will cry too much if they announced the whole thing. There is another $ 5 billion assigned for an HSR line later to Gawader. The Chinese want to invest into Gawader and make this a major Chinese shipping, trade and a vacation city. Billions will be put into the Real Estate later on turning this into the likes of Singapore.

OBOR and the highway going from Gawader to Iran to Turkey to Europe and Africa and on the other sides, to the Russian states, to Russia and to Eastern Europe makes the entire belt. Apparently you don't understand that a belt buckled up, is a Circle!

 

[Kabira]

No, they are confusing YOU by putting ML-1 . You guys will cry too much if they announced the whole thing. There is another $ 5 billion assigned for an HSR line later to Gawader. The Chinese want to invest into Gawader and make this a major Chinese shipping, trade and a vacation city. Billions will be put into the Real Estate later on turning this into the likes of Singapore.

OBOR and the highway going from Gawader to Iran to Turkey to Europe and Africa and on the other sides, to the Russian states, to Russia and to Eastern Europe makes the entire belt. Apparently you don't understand that a belt buckled up, is a Circle!

What confusion? $8 billion is for Karachi-peshawar ML1 line. For Gwadar, Gilgit etc Pakistan is looking for investment on BOT basis.

 

[DJ_Viper]

What confusion? $8 billion is for Karachi-peshawar ML1 line. For Gwadar, Gilgit etc Pakistan is looking for investment on BOT basis.

Add up the mileage being built under this track. Also note "dual" in the image. The Chinese recently upgrade some tracks to run 150 KM per hour. These new tracks will eventually bring a Chinese HSR to Gawader as they plan on turning it into something like a modern Singapore. All you have to do is just watch the next 4 years and see how this all plays out

 

[POPEYE-Sailor]

What the hell's happening? $8B to upgrade an existing line? What are they doing, laying tracks made of gold?

Its not ur business keep ur mind on indian deployment project and do pray for Kulbushan.

 

[Clutch]

CPEC is a tiny part of the OBOR. It is significant only to China and Pakistan, no one else.

Is that why almost every other nation is lining up and vying to be a part of CPEC? ...

 

[AZADPAKISTAN2009]

It would make sense if Chinese Locomotive companies can open a Locomotive Rehabilitation branch in Pakistan Administered by Chinese/Pakistan engineering

This would be a great initiative to be able to service 500-1000 engines / Year. It would be easier to service the Locomotives faster and also improve long term quality for Railways

Modernization is certainly needed in the factory to serve greater goals of Train link between China/Pakistan

Certainly great initiative

Export of engines from third party , does also helps as it is ok to bring in 50-100 engines from third party but in end it is better to service engines near the track lines were engines get looked after every 30 days of service

 

[randomradio]

No, they are confusing YOU by putting ML-1 . You guys will cry too much if they announced the whole thing. There is another $ 5 billion assigned for an HSR line later to Gawader.

The ML-1 line initially had a $3.7B investment plan which later increased to $5.5B. Now, this $8B is extra. Even for a greenfield project, including the link to Kashgar you don't need $13.5B.

The Chinese want to invest into Gawader and make this a major Chinese shipping, trade and a vacation city. Billions will be put into the Real Estate later on turning this into the likes of Singapore.

Don't get fooled by such advertisement. All port projects depend on the market they service. As far as the Chinese are concerned, they don't have a market in their territory, so the entire project is dependent on only Pakistan as its market.

Look at Hambantota, they invested so much, but it has no market to service. Gwadar is dependent on Baluchistan only.

Converting Gwadar into Singapore is completely dependent on Pakistan's economic growth.

OBOR and the highway going from Gawader to Iran to Turkey to Europe and Africa and on the other sides, to the Russian states, to Russia and to Eastern Europe makes the entire belt. Apparently you don't understand that a belt buckled up, is a Circle!

CPEC merely connects to OBOR. You may not remember but initially CPEC wasn't even part of OBOR, they made it part of OBOR much later. But CPEC is of no real importance to most other countries because it is not a transit zone for anybody except China.

This is the official OBOR.