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China Pakistan Economic Corridor (CPEC) | Railway

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I hope Pakistan and China think strategically and extend the railway to Gwadar. While transporting freight by railway is more expensive then by ship, cargo already on a railcar coming from Peshawar and now at Karachi doesn’t take much more to go further down the track then to be offloaded and then put on a ship at Gwadar.

Secondly, the time saving of offloading at Gwadar would make it advantageous for certain perishable cargo such as food stuffs.

Goods could be offloaded at Gwadar and put on a ship for transportation to Muscat, a 450 km journey, where it could meet the proposed GCC railway. 450 km SLOC is short enough that if Pakistan purchased the Type 052E destroyer, two surface action task forces could defend from the Indians thinking of blockading Pakistan from outside supplies. Also, 450 km is short enough of a distance that it could be done by a freighter in under 24 hours.

A railway along the coast would also make building SEZs there more attractive to investors because it would be more cost effective.

An extension to the railway, sometime later could made to Taftan, for east-west connections (Iran and Europe to the East, Quetta and Afghanistan to the West).

It’s the only way the Gwadar port would be viable and be able to make good use of its very large deep water potential capacity.

This would also make the GCC railway more viable, as it could be extended into south Yemen and then Africa via a tunnel to Djibouti, and connecting to the Ethiopian railway network, and give impetus to invest in a trans-African railway network for a number of investors.

Work on a Trans-Afghan Railway will progress as soon as the Poltics and financing are worked out, but in the mean time, Gwadar needs to be linked as part of rebuilding Mainline 1, IMHO, to make it an engine of growth and to help repay the investment into the railway.

Long term, if relations with India improve, the railway is already connected to India in the Thar desert, so shipping goods to and from India and all points west via our rail corridor would be potentially more cost effective for most investors, especially considering the dedicated freight corridors India is building, and the common rail gauge we have in common.

This would also be the most tangible way for Pakistan to build up its diplomatic influence in the region; geo-economic, without ruffling too many feathers.

Finally, while this would be at the expense of some trade going to Karachi, the increase in economic activity, overtime, would bring even more business to the port and city, as the national economy would be growing and the infrastructure at Gwadar wouldn’t be built up until it reaches near its capacity.

https://www.protenders.com/projects/gcc-railway-network


P.s. with the GCC railway, Pakistan will have an alternative route to Europe then just the rail route via Iran. This would fit into the GCC plans of isolating the Iranians, and incentivize Pakistan not to build rail links with Iran. These ports and rail linkages are the key to the CPEC and the BRI/OBOR and to Gwadar being viable. They also don’t compete directly with the GCC ports, but can complement them, and that will hopefully attract investment from the GCC countries.

The Omanis know Gwadar can be beneficial to them. The historical ties should also make the venture a good way to pair the two ports, in fact, Omani investment for a rail link would keep it outside the Sino-US rivalry, and potentially keep it out of any blowback as part of the new Cold War.

Furthermore, a lot of people from Gwadar live and work in Oman, a ferry/freighter could be profitable for people moving between the Arabian peninsula and Pakistan, possibly to include pilgrims and tourists. These kinds of deep ties with Oman, built on economics and people to people contact could help counter Indian influence in Oman, and help keep an eye on Indian influence in the Western Arabian Sea.


 
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Shahbaz Rana
November 06, 2022


ISLAMABAD: According to the draft minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC, both the sides have also agreed to strengthen capabilities of the law-enforcement agencies and investigators.

Transport sector

Pakistan and China have extended the Framework Agreement for $10 billion Main Line (ML)-1 project for the next 5 years, as both sides could not timely begin the project implementation.

The draft minutes suggested that the “Pakistani side has accepted the RMB financing proposal from the Chinese side for the ML-1 project” – withdrawing its demand to get the $8.4 billion loan in mix of US and Chinese currency.

Against Pakistan’s wish to sign a commercial contract, it was agreed that the bidding process of the ML-I project would commence immediately and it would be completed before the end of the year.

This will follow the signing of a commercial contract and financial close of the project. Both sides agreed on the project implementation milestones agreement where the ground breaking of the project is planned in March 2023.

Ahsan Iqbal said that President Xi Jinping has given directions for the fast-track implementation of the ML-I and the Karachi Circular Railways (KCR) project.

Both sides agreed to sign the Framework Agreement on the analogy of the Lahore Orange Line Metro Train Project (OLMTP) for the execution of the $1.3 billion KCR project.
 
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Shahbaz Rana
November 06, 2022


ISLAMABAD: According to the draft minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC, both the sides have also agreed to strengthen capabilities of the law-enforcement agencies and investigators.

Transport sector

Pakistan and China have extended the Framework Agreement for $10 billion Main Line (ML)-1 project for the next 5 years, as both sides could not timely begin the project implementation.

The draft minutes suggested that the “Pakistani side has accepted the RMB financing proposal from the Chinese side for the ML-1 project” – withdrawing its demand to get the $8.4 billion loan in mix of US and Chinese currency.

Against Pakistan’s wish to sign a commercial contract, it was agreed that the bidding process of the ML-I project would commence immediately and it would be completed before the end of the year.

This will follow the signing of a commercial contract and financial close of the project. Both sides agreed on the project implementation milestones agreement where the ground breaking of the project is planned in March 2023.

Ahsan Iqbal said that President Xi Jinping has given directions for the fast-track implementation of the ML-I and the Karachi Circular Railways (KCR) project.

Both sides agreed to sign the Framework Agreement on the analogy of the Lahore Orange Line Metro Train Project (OLMTP) for the execution of the $1.3 billion KCR project.
Better to start ASAP (the price isn’t going to go any lower), as any delays would only see the price go higher and with the global recession is upon us and financing is drying up otherwise.

Just hope they build the railway to prioritize freight so it can recovers its investment and help finance the modernization of the other main lines as well as new extensions, that could make this a true game changer.

Looks like we are sticking with the same rail gauge, perhaps that is for the best, considering all the other equipment we already have.
 
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I would’ve hoped they’d put air conditioning units into these cars, but it’s still an upgrade over the current rolling stock.

Any indication what the bathrooms look like?
Also, if Pakistan going to get new engine to pull these carriages at 160 kmph? Something like the CR200J’s diesel-electric models. The colors also nearly match.


I hope we also get the dining car used with the CR200J. If travel times can be kept on schedule, then meals can be picked up at each station, reducing the need to have food cooked on board, similar to airlines or even intercity buses.
 
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Once signed, the ML-1 project may take about eight years to reach the commercial operations stage

The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour.

Pakistan and China are planning to arrange bidding for $10 billion Mainline-1 — the 1,872km Railway Track along with associated facilities from Karachi to Peshawar — next month (December) and have agreed to have its foreign exchange component of $8.4bn fully financed through Renminbi (RMB) based Chinese loan.

The bidding would be among the leading Chinese companies to be identified and recommended by the Chinese government. During the meeting of Chinese President Xi Jinping and Prime Minister Shehbaz Sharif early this month, both sides agreed to immediately activate their respective teams of technical and financial experts to fast-track progress on the much-delayed project.

The Executive Committee approved the project of the National Economic Council (Ecnec) hours before Prime Minister Sharif’s visit to Beijing at a total cost of $9.85bn subject to the recommendation of cost, technical details by the third party consultant and preferably an equity participation financial model.

The project was part of the original $46bn China-Pakistan Economic Corridor (CPEC) framework but could not take off in more than eight years while most of its sister energy sector portfolio was up and running a few years back. The fresh push comes at a time Beijing has already become the single largest lender to Pakistan with an over $23bn existing debt portfolio.

The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour

On the basis of bidding results, the financial teams of the two countries would then finalise detailed term sheets of the Chinese loan and financing plan to be spread over eight years of project implementation. This will be carried out in a way that the entire loan portfolio is not booked on Islamabad’s accounts and instead is drawn gradually in line with the project requirements.

During these meetings, the two sides broadly agreed that the entire Chinese loan would be in RMB as pressed by Beijing since most of the foreign exchange has to be utilised for machinery and material imports from China.

Pakistan had been insisting on a Chinese loan mix of US dollars and RMB. It had to give in given the project’s criticality, whose funding significance has increased manifold after recent devastating floods damaged a lot of railway infrastructure and is posing risks of a major tragedy. The Chinese loan is expected to be a mix of a Central Chinese Government loan and a sovereign guaranteed loan.

The two sides are aiming to complete negotiations leading to commercial contract signing that would be followed by financial closure by the Chinese contractors with a target to hit groundbreaking latest by end-March 2023. After signing, the project is expected to take about eight years and six months to reach the commercial operations stage, i.e. by September 30, 2031.

To cover these milestones, the two sides have extended the five-year framework (second) agreement signed on May 5, 2017, and expired six months ago. The two governments signed the first framework agreement on April 20, 2015, for a feasibility study for ML-1 upgradation and modernisation.

The project cost was estimated at $9.2bn in February 2020, with a financing share of 10:90 between Pakistan and China. However, this was revised to $6.8bn in August 2020 through cost rationalisation, but the Chinese side remained unconvinced and hence uninterested.

The project costs have been revised again to $9.85bn, including a Chinese financing of $8.4bn (85pc), with the remainder of $1.48bn or 15pc to be financed through local resources. At an exchange rate of Rs200/dollar, the total project cost is Rs1.97 trillion, including a Chinese share of Rs1.675tr and Pakistan’s Rs296bn.

Considered the country’s logistic backbone, the ML-1 starts from Karachi, passes through Kotri/Hyderabad, Rohri, Multan, Lahore, Rawalpindi, and terminates at Peshawar but is now in dilapidated condition at present. Its freight and passenger traffic crawls between 37km per hour and 65km per hour, respectively. The 1,872 km line includes a 55km Taxila-Havelian section and a 91km Lodhran-Khanewal section.

The project also involves the upgradation of existing ML-1, the establishment of a dry port near Havelian Railway station, the upgradation of Railway Academy Lahore and the improvement of facilities and stations in Karachi, Hyderabad and Rohri in Sindh, Multan, Lahore and Rawalpindi in Punjab and Nowshera and Peshawar in Khyber Pakhtunkhwa.

The project aims to increase passenger train speed to up to 160km per hour and that of a freight train to 120km per hour with increased axle load from 22 tonnes to 25 tonnes and to increase the number of freight trains to 171 per day from less than 34.

Under a recent decision of the Executive Committee of the National Economic Council (Ecnec), the ministry of railways would set up a project implementation unit for monitoring and timely implementation. Moreover, a steering committee would be constituted by the minister for railways with representation from all stakeholders to oversee progress.

Meanwhile, the Ministry of Railways will be required to update its Railway Business Plan and Railway Strategic Plan along with a roadmap for the future transformation of existing systems into electric traction systems.

While the project is of utmost importance to Pakistan’s passenger and freight transport, even upon completion, this would remain an island — unable to meet the country’s requirements in isolation.

In the words of the planning commission, “the railway sector in Pakistan does not have the governance framework, institutional framework, management process or regulatory framework to compete in an increasingly challenging 21st century transport market effectively.”

Published in Dawn, The Business and Finance Weekly, November 14th, 2022
 
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Pakistan Railways set to hire highly qualified experts for ML-1 project execution​


By Mian Abrar | Gwadar Pro Nov 20, 2022



LAHORE, Nov. 20 (Gwadar Pro) - Pakistan Railways is planning to hire highly qualified experts from private sectors for the administrative matters of the Main Line-1 (ML-1) project.
The decision was made in a meeting presided over by Railways Minister Khawaja Saad Rafique held here at the PR Headquarters on Saturday.
ML-1 is a US$ 10 billion project that aims at up-gradation and dualisation of railtrack from Karachi to Peshawar and Taxila to Havelian. The project involves 1733-kilometer-long laying of a new track with improved subgrade for 160 km/h speed from existing 65-105 km/h to 120-160 km/h. Rehabilitation and construction of major railway bridges, provision of modern signaling and telecom systems and conversion of level crossings into underpasses and flyovers is also included in the project. Fencing of track and establishment of dry port near Havelian and up-gradation of Walton Training Academy is also on the table.

 
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Pakistan Railways receives first batch of high-speed rail coaches from China​

November 28, 2022



KARACHI: Pakistan Railways on Sunday received the first 46 out of 230 new high-speed passenger coaches from China.

The new rail coaches reached Karachi port and will be transported to Lahore by the Karachi-Lahore main line-1 by end of this month, the authorities said.

Pakistan and China’s CRRC Tangshan Locomotive & Rolling Stock Company inked an agreement in November 2021 for the supply of 230 high-speed coaches to Pakistan Railways as part of a plan to upgrade and enhance long-distance passenger services in the country.

The PR spokesperson said that passenger rail coaches will include 80 compartments each for economy and air-conditioned class, 30 parlour cars, and 20 vans each for luggage and brake.

Two hundred freight vans will be imported, while 620 of such bogies will be prepared at the factory, he added.

Under $140 million contract (Rs31 billion, approximately), the Chinese company is to manufacture 230 state-of-the-art passenger coaches, of which 46 will be provided as completely built units and the remaining 184 will be manufactured in Pakistan by the PR engineers and technical staff under the supervision of the Chinese experts.

It merits mentioning that the PR is working to upgrade the dilapidated track (ML-1) as the Khanpur-Kotri section is not fit for high-speed train operation.
 
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what is the anticipated speed of this high speed train? what is the current speed in this line? any context please? thank you
 
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Once signed, the ML-1 project may take about eight years to reach the commercial operations stage

The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour.

Pakistan and China are planning to arrange bidding for $10 billion Mainline-1 — the 1,872km Railway Track along with associated facilities from Karachi to Peshawar — next month (December) and have agreed to have its foreign exchange component of $8.4bn fully financed through Renminbi (RMB) based Chinese loan.

The bidding would be among the leading Chinese companies to be identified and recommended by the Chinese government. During the meeting of Chinese President Xi Jinping and Prime Minister Shehbaz Sharif early this month, both sides agreed to immediately activate their respective teams of technical and financial experts to fast-track progress on the much-delayed project.

The Executive Committee approved the project of the National Economic Council (Ecnec) hours before Prime Minister Sharif’s visit to Beijing at a total cost of $9.85bn subject to the recommendation of cost, technical details by the third party consultant and preferably an equity participation financial model.

The project was part of the original $46bn China-Pakistan Economic Corridor (CPEC) framework but could not take off in more than eight years while most of its sister energy sector portfolio was up and running a few years back. The fresh push comes at a time Beijing has already become the single largest lender to Pakistan with an over $23bn existing debt portfolio.

The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour

On the basis of bidding results, the financial teams of the two countries would then finalise detailed term sheets of the Chinese loan and financing plan to be spread over eight years of project implementation. This will be carried out in a way that the entire loan portfolio is not booked on Islamabad’s accounts and instead is drawn gradually in line with the project requirements.

During these meetings, the two sides broadly agreed that the entire Chinese loan would be in RMB as pressed by Beijing since most of the foreign exchange has to be utilised for machinery and material imports from China.

Pakistan had been insisting on a Chinese loan mix of US dollars and RMB. It had to give in given the project’s criticality, whose funding significance has increased manifold after recent devastating floods damaged a lot of railway infrastructure and is posing risks of a major tragedy. The Chinese loan is expected to be a mix of a Central Chinese Government loan and a sovereign guaranteed loan.

The two sides are aiming to complete negotiations leading to commercial contract signing that would be followed by financial closure by the Chinese contractors with a target to hit groundbreaking latest by end-March 2023. After signing, the project is expected to take about eight years and six months to reach the commercial operations stage, i.e. by September 30, 2031.

To cover these milestones, the two sides have extended the five-year framework (second) agreement signed on May 5, 2017, and expired six months ago. The two governments signed the first framework agreement on April 20, 2015, for a feasibility study for ML-1 upgradation and modernisation.

The project cost was estimated at $9.2bn in February 2020, with a financing share of 10:90 between Pakistan and China. However, this was revised to $6.8bn in August 2020 through cost rationalisation, but the Chinese side remained unconvinced and hence uninterested.

The project costs have been revised again to $9.85bn, including a Chinese financing of $8.4bn (85pc), with the remainder of $1.48bn or 15pc to be financed through local resources. At an exchange rate of Rs200/dollar, the total project cost is Rs1.97 trillion, including a Chinese share of Rs1.675tr and Pakistan’s Rs296bn.

Considered the country’s logistic backbone, the ML-1 starts from Karachi, passes through Kotri/Hyderabad, Rohri, Multan, Lahore, Rawalpindi, and terminates at Peshawar but is now in dilapidated condition at present. Its freight and passenger traffic crawls between 37km per hour and 65km per hour, respectively. The 1,872 km line includes a 55km Taxila-Havelian section and a 91km Lodhran-Khanewal section.

The project also involves the upgradation of existing ML-1, the establishment of a dry port near Havelian Railway station, the upgradation of Railway Academy Lahore and the improvement of facilities and stations in Karachi, Hyderabad and Rohri in Sindh, Multan, Lahore and Rawalpindi in Punjab and Nowshera and Peshawar in Khyber Pakhtunkhwa.

The project aims to increase passenger train speed to up to 160km per hour and that of a freight train to 120km per hour with increased axle load from 22 tonnes to 25 tonnes and to increase the number of freight trains to 171 per day from less than 34.

Under a recent decision of the Executive Committee of the National Economic Council (Ecnec), the ministry of railways would set up a project implementation unit for monitoring and timely implementation. Moreover, a steering committee would be constituted by the minister for railways with representation from all stakeholders to oversee progress.

Meanwhile, the Ministry of Railways will be required to update its Railway Business Plan and Railway Strategic Plan along with a roadmap for the future transformation of existing systems into electric traction systems.

While the project is of utmost importance to Pakistan’s passenger and freight transport, even upon completion, this would remain an island — unable to meet the country’s requirements in isolation.

In the words of the planning commission, “the railway sector in Pakistan does not have the governance framework, institutional framework, management process or regulatory framework to compete in an increasingly challenging 21st century transport market effectively.”

Published in Dawn, The Business and Finance Weekly, November 14th, 2022
I hope they include electrification (that allow cargo to be carried double stacked), modern signals, and underpasses at areas where major vehicle traffic is common.

The goal has to be to maximize average train speeds. If trains can keep to their schedules, food can be prepared at stations and brought on board, freeing up a car from having to prepare food on board. Also, if the railway is given land adjacent to the tracks it can allow dry ports in the outskirts of each city as well as revenue generating business around train stations (like hotels, offices, and apartments) to fund the cost of operating passenger rail and allow ticket prices to remain affordable, as is done in Japan.

I also hope the main line route is improved in places to connect to some airports (allowing travelers to fly into one city, and use the train to connect seamlessly to their final destination city) as well as connect to bus terminals or rebuild the bus terminals alongside train terminals in each city, so maximize destinations people can reach through connections. These connections can be feeder routes for the trains and the trains can be feeder routes for the buses and planes.
 
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Pakistan Railways (PR) has been talking about its plans to introduce new, high-tech, and high-speed passenger bogies, but there’s no point in importing them if they don’t even work.

The latest report from Express News reveals that these bogies were imported from China at a cost of $149 million and are unable to run.

The brakes on these bogies have a critical mechanical fault. Due to the lack of pressure, the brakes cannot function properly at any speed.

The report adds that the government had sent 88 Pakistan Railways (PR) officers to China to inspect the bogies. Why the department sent a small army to inspect these trains is anybody’s guess. However, despite a two-week visit, none could point out this critical mechanical fault.

It also stated that each officer that went to China, received $100 per day for their duties, which adds up to $123,200 or nearly Rs. 2.79 crore based on the current exchange rate. Keep in mind this is just a napkin math figure, the actual expenses may be much higher
 
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Pakistan Railways to receive 70 flat wagons

Khalid Hasnain
January 15, 2023


CHINESE firm officials clear a completely built unit of flat wagon for shipment to Pakistan.—Courtesy PR


CHINESE firm officials clear a completely built unit of flat wagon for shipment to Pakistan.—Courtesy PR
LAHORE: Part of the 820 wagons procurement contract, Pakistan Railways (PR) is set to receive the first consignment of completely built units (CBUs) of 70 high-capacity flat wagons from China on Monday.

“Despatched on Dec 25 by the Chinese firm, the wagons will reach Karachi port on Monday,” PR’s Chief Mechanical Engineer Abdul Haseeb told Dawn on Saturday. “These are the flat wagons on which containers would be kept and used for the transportation of various goods to various parts of the country from Lahore, Karachi and other major stations,” he added.

Mr Haseeb said under the contract, the Chinese firm is also responsible to manufacture 200 CBUs including 70 flat, 70 open-top and 40 covered wagons and 20 brake vans, he said.

According to the contract, the PR is procuring as many as 800 high-capacity wagons and 20 brake vans.

A letter of credit had already been opened in March last year.

Under various clauses of the contract, 600 wagons are to be manufactured in Pakistan at various carriage factories of Pakistan Railways in association with the Chinese engineer.

The arrival of 46 high-speed modern coaches from China on Nov 27, 2022 paved the way for the provision of state-of-the-art travelling facilities to the masses. Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract.

Since the test-run of these coaches has recently been completed, the PR has started using them in various express trains on the main-line reportedly. Modern train coaches and wagons can run at speeds of 160km and 80 km per hour.

“In November 2021, when looking to upgrade and enhance long-distance passenger services in the country, the federal government had inked an agreement with China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches for PR.

Similarly, another contract was also signed with another company to provide 820 wagons,“ explained an official source in the PR.

Meanwhile, a spokesman for the department says that the remaining 130 CBUs of wagons would be received by end of March this year.

“The manufacturing of the 620 wagons under the technology transfer component of the contract will help Pakistan save its foreign reserves. The new wagons would earn a revenue of Rs1.5 billion per annum,” he said, adding that the new wagons can run at a speed of 80km and 100km per hour with 60-tonnes and 70-tonnes loads respectively,“ the spokesman explained.
Published in Dawn, January 15th, 2023
 
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