Pakistan Railways: News & Updates
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Rescue plan: Government approves Rs25.7b bailout for Railways
ISLAMABAD:
In a first step towards restructuring Pakistan Railways, the government approved a bailout package worth Rs25.7 billion for the crisis-hit entity. The funds will be used to repair the engines currently out of order in addition to buying 50 new diesel-electric locomotives.
Approval to the two projects given by the Central Development Working Party (CDWP) marks the beginning of restructuring the cash-strapped state-owned company that has been incurring losses for years due to aging and shortage of equipment, overstaffing and debt accumulation.
However, approval of these projects without a comprehensive restructuring plan puts a question mark over the prudent use of the taxpayers’ money.
The approval by the CDWP is a departure from the government’s previous stance on Railways. The Economic Coordination Committee had earlier refused to pick up debt liabilities worth $112 million of the national carrier. The Railways had obtained this loan for procurement of locomotives.
Headed by Minister for Planning, Development and Reforms Ahsan Iqbal, the CDWP meeting on Friday approved a project for procuring 50 diesel-electric locomotives, half of which will be engines with 3,000 horsepower and the other half of 2,000 horsepower.
The Railways wants to procure the locomotives to handle freight traffic including transportation of furnace oil across the country – a neglected area in the past, which also became one of the reasons behind the accumulation of losses by the company. Minister for Railways Khawaja Saad Rafique promised to turn the entity around by focusing more on the freight business.
The CDWP also cleared a Rs6.3 billion project for rehabilitation of as many as 30 diesel locomotives. By spending over Rs6 billion, the management of Pakistan Railways wants to extend the life of these locomotives by another 15 years, according to the planning ministry.
The previous government had opposed to give financial lifeline to Pakistan Railways, and instead first sought a comprehensive restructuring plan. One of the reasons for refusing the bailout package was that the then finance minister desired to procure new locomotives from General Electric of the United States, while the Railways wanted to strike a deal with a Chinese firm, according to sources in the finance ministry.
The other major reason for failing to revive the entity was tailor-made tenders for procurement of locomotives issued by Pakistan Railways. Every time they issued a tender, it became controversial.
For a $6.7 billion programme, Pakistan has assured the International Monetary Fund (IMF) that by March 2014 it will develop a comprehensive restructuring plan for Pakistan Railways and the company will be converted from a government-controlled department to a state-owned liability company.
However, experts have again questioned the government’s move of keeping the Railways a state-owned entity, which according to them, will not solve the problems. They said the government did not seem serious in resolving the problems of the entity and wanted to retain the workforce, hired under political compulsions in the past by successive governments.
In the previous regime, the Planning Commission had also proposed a plan to convert Railways into three separate companies, each one having its own business model. These companies had been proposed for separately running Railways’ commercial operations, to manage its properties and to deal with the affairs of national carrier’s workshops.
The CDWP also approved eight other projects having total value of Rs37 billion, including the Rs22.5-billion for Gomal Zam Dam and Rs11.6-billion Punjab Irrigation Project.
For Balochistan, Quetta flyover worth Rs3 billion was approved by the CDWP under the Quetta Development Project. Four small road projects for Balochistan with an estimated cost of Rs3.4 billion were also approved by the CDWP.
Published in The Express Tribune, September 8th, 2013.
Rescue plan: Government approves Rs25.7b bailout for Railways – The Express Tribune
ISLAMABAD:
In a first step towards restructuring Pakistan Railways, the government approved a bailout package worth Rs25.7 billion for the crisis-hit entity. The funds will be used to repair the engines currently out of order in addition to buying 50 new diesel-electric locomotives.
Approval to the two projects given by the Central Development Working Party (CDWP) marks the beginning of restructuring the cash-strapped state-owned company that has been incurring losses for years due to aging and shortage of equipment, overstaffing and debt accumulation.
However, approval of these projects without a comprehensive restructuring plan puts a question mark over the prudent use of the taxpayers’ money.
The approval by the CDWP is a departure from the government’s previous stance on Railways. The Economic Coordination Committee had earlier refused to pick up debt liabilities worth $112 million of the national carrier. The Railways had obtained this loan for procurement of locomotives.
Headed by Minister for Planning, Development and Reforms Ahsan Iqbal, the CDWP meeting on Friday approved a project for procuring 50 diesel-electric locomotives, half of which will be engines with 3,000 horsepower and the other half of 2,000 horsepower.
The Railways wants to procure the locomotives to handle freight traffic including transportation of furnace oil across the country – a neglected area in the past, which also became one of the reasons behind the accumulation of losses by the company. Minister for Railways Khawaja Saad Rafique promised to turn the entity around by focusing more on the freight business.
The CDWP also cleared a Rs6.3 billion project for rehabilitation of as many as 30 diesel locomotives. By spending over Rs6 billion, the management of Pakistan Railways wants to extend the life of these locomotives by another 15 years, according to the planning ministry.
The previous government had opposed to give financial lifeline to Pakistan Railways, and instead first sought a comprehensive restructuring plan. One of the reasons for refusing the bailout package was that the then finance minister desired to procure new locomotives from General Electric of the United States, while the Railways wanted to strike a deal with a Chinese firm, according to sources in the finance ministry.
The other major reason for failing to revive the entity was tailor-made tenders for procurement of locomotives issued by Pakistan Railways. Every time they issued a tender, it became controversial.
For a $6.7 billion programme, Pakistan has assured the International Monetary Fund (IMF) that by March 2014 it will develop a comprehensive restructuring plan for Pakistan Railways and the company will be converted from a government-controlled department to a state-owned liability company.
However, experts have again questioned the government’s move of keeping the Railways a state-owned entity, which according to them, will not solve the problems. They said the government did not seem serious in resolving the problems of the entity and wanted to retain the workforce, hired under political compulsions in the past by successive governments.
In the previous regime, the Planning Commission had also proposed a plan to convert Railways into three separate companies, each one having its own business model. These companies had been proposed for separately running Railways’ commercial operations, to manage its properties and to deal with the affairs of national carrier’s workshops.
The CDWP also approved eight other projects having total value of Rs37 billion, including the Rs22.5-billion for Gomal Zam Dam and Rs11.6-billion Punjab Irrigation Project.
For Balochistan, Quetta flyover worth Rs3 billion was approved by the CDWP under the Quetta Development Project. Four small road projects for Balochistan with an estimated cost of Rs3.4 billion were also approved by the CDWP.
Published in The Express Tribune, September 8th, 2013.
Rescue plan: Government approves Rs25.7b bailout for Railways – The Express Tribune
Edevelop
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Fresh campaign retrieves 172.35 acres of railways land
ISLAMABAD (APP): Pakistan Railways (PR), as a result of fresh anti-encroachment campaign started in June this year, has so far retrieved 172.35 acres of its precious land.
The department, in its earlier anti-encroachment campaign last year also retrieved 2537.166 acres out of total 5662.667 acres encroached land and now efforts are underway to get the remaining encroached land vacated.
According to Pakistan Railways here on Tuesday, sale of railway land is completely banned whereas leasing of railway land has been temporarily banned in order to frame new lease policy.
In future, commercialization of railway land would be on lease, rent or joint venture basis.
Pakistan Railways is also considering the appointment of Real Estate consultants through open advertisement, however, proposals in this regard from the parliament will be welcomed.
Around 6716 acres railway land has been leased out for short term and 21.68 acres for long term during last four years. Pakistan Railway owns 1,67,690 acres of land over the country out of which 2953.151 acres is under encroachment at present.
Fresh campaign retrieves 172.35 acres of railways land
ISLAMABAD (APP): Pakistan Railways (PR), as a result of fresh anti-encroachment campaign started in June this year, has so far retrieved 172.35 acres of its precious land.
The department, in its earlier anti-encroachment campaign last year also retrieved 2537.166 acres out of total 5662.667 acres encroached land and now efforts are underway to get the remaining encroached land vacated.
According to Pakistan Railways here on Tuesday, sale of railway land is completely banned whereas leasing of railway land has been temporarily banned in order to frame new lease policy.
In future, commercialization of railway land would be on lease, rent or joint venture basis.
Pakistan Railways is also considering the appointment of Real Estate consultants through open advertisement, however, proposals in this regard from the parliament will be welcomed.
Around 6716 acres railway land has been leased out for short term and 21.68 acres for long term during last four years. Pakistan Railway owns 1,67,690 acres of land over the country out of which 2953.151 acres is under encroachment at present.
Fresh campaign retrieves 172.35 acres of railways land
truthseeker2010
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any info on which locomotive PR is buying, they should not go for chinese, as they have not been a good experience for PR, its still long for PR to become profitable, saying 1 year is to far fetched.
any info on which locomotive PR is buying, they should not go for chinese, as they have not been a good experience for PR, its still long for PR to become profitable, saying 1 year is to far fetched.
any info on which locomotive PR is buying, they should not go for chinese, as they have not been a good experience for PR, its still long for PR to become profitable, saying 1 year is to far fetched.
Edevelop
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PR heritage to be preserved: Saad Rafique
ISLAMABAD:Federal Minister for Railways Khawaja Saad Rafique has said that Pakistan Railways (PR) heritage would be preserved and renovated in Lahore railway station, Karachi Cantt Railway station and Railways Golra Museum.
The minister ensured that land of railway would be used in proper way.He said that railway would become a profitable organization after a year adding “We don’t need to go for further public-private partnership”.
The minister said the PR was on the right track of progress now after taken several pro-railway steps by him. He said purchase of locomotives was the priority and Chinese company would start providing engines to Railways after two months.
PR heritage to be preserved: Saad Rafique - thenews.com.pk
ISLAMABAD:Federal Minister for Railways Khawaja Saad Rafique has said that Pakistan Railways (PR) heritage would be preserved and renovated in Lahore railway station, Karachi Cantt Railway station and Railways Golra Museum.
The minister ensured that land of railway would be used in proper way.He said that railway would become a profitable organization after a year adding “We don’t need to go for further public-private partnership”.
The minister said the PR was on the right track of progress now after taken several pro-railway steps by him. He said purchase of locomotives was the priority and Chinese company would start providing engines to Railways after two months.
PR heritage to be preserved: Saad Rafique - thenews.com.pk
Edevelop
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Nato supplies through trains resume after five years | Business Recorder
Pic of a Freight Train coming from Karachi port
Pic of a Freight Train coming from Karachi port
ziaulislam
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i think they should at the end of their 5 years convert railway into cooperation with managment to private sector. otherwise PPPP will sink it again
also co develop engines with korea or china
also co develop engines with korea or china
A.Rafay
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Nato supplies through trains resume after five years | Business Recorder
Pic of a Freight Train coming from Karachi port
That Karkey Ship(rental power project) is still there at the docks sitting idle! We should wrap things up with this rental project and tell them to leave.
Panther 57
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Which year was this picture taken.
I think we should just buy off Karkay and start pumping electricity to our national grid. Float the shares arrange for an agreement for supply of power to national grid. Put in professional management, in fact hire those Pakistanis who were already working on Karakay. Lets get the 230MW coming into the system immediately. Just a little diversion from topic.
Get back to railways. Rail is the cheapest mode of transportation, it should be restored at the earliest. But just like PIA its staff is eating it up. So first thing should be to get rid of corrupt and over employed people. Otherwise, fate of railway is not going to change.
Karachi needs an underground now. It should be planned ASAP and tunneling technology should be used. Likewise, for Lahore also, as metro has already failed. Before it becomes too late for Islamabad an underground network of train should be planned and executed. If need be make a public limited company float the shares and get the ball rolling.
I have no doubt at all about the honesty and hard working of Khawaja Saad Rafique.i know he is very competent and hard working man and hopefully he make railway better and better by passing every month.
I have no doubt at all about the honesty and hard working of Khawaja Saad Rafique.i know he is very competent and hard working man and hopefully he make railway better and better by passing every month.
I have no doubt at all about the honesty and hard working of Khawaja Saad Rafique.i know he is very competent and hard working man and hopefully he make railway better and better by passing every month.
Edevelop
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Pakistan railways increases freight traffic
ISLAMABAD: Pakistan Railways (PR) have restored freight trains operation to the extent of two trains on a daily basis from Karachi port to up-country, with hopes of increasing this to 8-10 trains by the end of the current financial year.
This particular step has been taken to improve overall performance and the financial position of the government entity.
According to PR here on Friday, as part of the measures taken by the management, 15 GMU-30 locomotives are being inducted. These locomotives will generate revenue of Rs4.416 million per annum through transportation of oil.
In case of less than expected oil traffic, the department will focus on operation of container trains which will generate revenue of Rs3.8 billion per annum.
A project for rehabilitation of 27 HGMU-30 is also in progress and it is expected that five locomotives will be rolled-out and will be available by June 2014. After that, two locomotives per month will be rehabilitated and inducted into freight operations.
PR also said that a separate project called “Special Repair of 150 Running locomotives” was approved in 2012-13 under the Public Sector Development Programme, which will decrease the burden of locomotive maintenance on revenue budget.
Revenue earning during July 2013 has increased to Rs178.724.
The increase in earnings is mainly due to the reduction in fares of passenger trains. Officials said that punctuality of trains has been improved by 3% in July 2013, and is being constantly observed.
Efforts are also underway to improve the punctuality further with availability of newer and better locomotives.
All non-productive expenses have been stopped and expenditures are being incurred in accordance with available resources.
Incurrence of expenditures other than salary/pensions, fuel and utilities are subject to cash release.
ISLAMABAD: Pakistan Railways (PR) have restored freight trains operation to the extent of two trains on a daily basis from Karachi port to up-country, with hopes of increasing this to 8-10 trains by the end of the current financial year.
This particular step has been taken to improve overall performance and the financial position of the government entity.
According to PR here on Friday, as part of the measures taken by the management, 15 GMU-30 locomotives are being inducted. These locomotives will generate revenue of Rs4.416 million per annum through transportation of oil.
In case of less than expected oil traffic, the department will focus on operation of container trains which will generate revenue of Rs3.8 billion per annum.
A project for rehabilitation of 27 HGMU-30 is also in progress and it is expected that five locomotives will be rolled-out and will be available by June 2014. After that, two locomotives per month will be rehabilitated and inducted into freight operations.
PR also said that a separate project called “Special Repair of 150 Running locomotives” was approved in 2012-13 under the Public Sector Development Programme, which will decrease the burden of locomotive maintenance on revenue budget.
Revenue earning during July 2013 has increased to Rs178.724.
The increase in earnings is mainly due to the reduction in fares of passenger trains. Officials said that punctuality of trains has been improved by 3% in July 2013, and is being constantly observed.
Efforts are also underway to improve the punctuality further with availability of newer and better locomotives.
All non-productive expenses have been stopped and expenditures are being incurred in accordance with available resources.
Incurrence of expenditures other than salary/pensions, fuel and utilities are subject to cash release.
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