Army signs deal for purchase of 10 locomotives
The National Logistic Cell (NLC) – the logistics arm of the army – will purchase 10 reconditioned locomotives, costing $11.2 million, from Korean Rail (KORAIL) for freight operations.
An agreement to this affect was signed here on Friday by Director General of the NLC, Major General Junaid Rehmat, and KORAIL Vice President Paeng Jung Goang.
According to a statement issued by the Ministry of Finance, the South Korean firm will deliver the locomotives to Karachi within ten months of the opening of the Letter of Credit. The government will make a 20% payment in advance, while the rest of the money will be paid on delivery.
At an additional cost of $1.4 million, the NLC will also hire the consultancy services of five Korean engineers for a period of two years, disclosed the finance ministry. It added that the NLC will also establish workshop facilities for maintenance of these locomotives. The Korean firm will provide a five-year performance warranty bond, equivalent to 5% of the contract price.
KORAIL will provide a type of locomotives already held on the inventory of Pakistan Railways (PR), except they are of a different gauge. KORAIL will overhaul these locomotives and change the gauge to suit PR’s track requirements. The NLC will also procure spare parts from the company for two years, the finance ministry said.
The finance ministry said NLC and KORAIL had been negotiating for the purchase of refurbished GMU-30 type locomotives since October 2010; suggesting the deal culminated after direct negotiations between the buyer and supplier. The NLC has also expressed an interest in procuring more locomotives next year, as KORAIL will be phasing out another 46 locomotives then, the finance ministry disclosed.
It was not immediately ascertainable whether the NLC had floated a tender to procure the locomotives – a requirement under the Public Procurement Regulatory Authority Rules, which aim to ensure transparency in public deals. It was also not clear whether the five Korean engineers have been hired as consultants after due process. Finance Minister Dr Abdul Hafeez Shaikh, who witnessed the signing ceremony, was not available for comments.
The Public Accounts Committee (PAC) – the parliament’s accountability body – last week referred a case regarding procurement of 175 coaches by PR, without ensuring competitive practices, to the National Accountability Bureau for investigations. The total cost of these coaches was $92 million, and Pakistan Railways had to make modifications to its infrastructure to enable these coaches stop at its station platforms; the Railways secretary had briefed the PAC last week.
Published in The Express Tribune, July 21st, 2012.
COMMENTS (35)
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@Pramod Joshi:
Joshi, the average effective speed of Indian trains is less than 55 km/hr. Please get your facts right, and do not exaggerate or propagate untruths. Kindly refer to the official published facts, and accepted data on these issues. It is good to be proud of your country, as am I, but satyameva jayate, always, and without compromise. Please become thoroughly informed about the subject about which you wish to write.
There are huge problems with Indian railways, a black hole for taxpayer revenue, a cesspool of corruption and political patronage, and a bloated system which would not survive without being the beneficiary of various government subsidies. PR is suffering precisely because the Pakistani government has chosen to withdraw the movement of government and military freight away from the sole province of the railways, as witness the competition of the National Logistics Cell and the Highways Program that predated India's current road-building initiative by many decades.
Our locomotive building technology is very much out of date, such that General Electric is stepping in with plans to build 1000 diesel-electric units per year in India. They are the technology leaders in this area. I have been reading about these things with great interest because of my fascination with the history of steam and diesel locomotives. That is why I try to keep up with events in this field, although my technical grasp is close to zero for the electrical motors and such.
It is just to clear a misconception that the success of Indian Railways is due to Lalu Yadav.He happened to be the Rail Minister during the last exercise of restructuring of Indian Railways. Indian Railways is an efficient organisation with its own R&D. The Rakesh Mohan Committee recommended some steps. The task is still not over. Indian Railways is more than twenty times bigger than KORAIL. Our Locomotive plants produce closer to 1000 Engines every year. Most of the Indian Trains run at 110 KM per Hour. Fastest Trains are Shatabdi Express with a speed of 160 KMPH. India has started work on High Speed trains of 400+ KMPH. Probably with the help of Japanese, German and French technology. Pakistan or all developing countries can do it & must do it. For that we have to focus on development. I feel this region of globe has too much of emotionalism and ill information.
Why I don't see Pakistanis paying a visit to our Indian papers as often as we do? I mean come on guys! You shall visit us too as much as we do. We want to hear your comment to in our papers. I see you guys really know how to scrutinize and advice your leaders, there something for our readers to learn from you.We want someone from outside to show our leaders what a real scrutiny is. Don't have to go far just pick any Indian paper, find out what we are doing and making locally. Where we fumble & how we get back up.
When it come to buy from own pocket Pakistan Army could only afford 11.1 Million $ for rebuild, phase out locomotive. It shows that uncle Sam stop giving candy from now on. How Army will buy spare parts for F16 or so. Army can make more money now by building museum to show case American's big guy toys & charge entry fees. Next Nato supply blockage will bring Pakistan Army on donkey & camel. ET I dare you........
Why I don't see Pakistanis paying a visit to our Indian papers as often as we do? I mean come on guys! You shall visit us too as much as we do. We want to hear your comment to in our papers. I see you guys really know how to scrutinize and advice your leaders, there something for our readers to learn from you.We want someone from outside to show our leaders what a real scrutiny is. Don't have to go far just pick any Indian paper, find out what we are doing and making locally. Where we fumble & how we get back up.
@Awans: Truly one clown, you are my friend =D
@Umer: Brother NLC was raised by Bhutto and is state owned not Army owned. http://en.wikipedia.org/wiki/NationalLogisticsCell If railways could be given competition by NLC, than trust me its total incompetence of Railways and the government because a railcar is pulled by a locomotive which would consume much less diesel than a fleet of 50 containers on NLC trollers would consume. Railways could not be thought of competing as its much more economical and efficient on railways rather than road moving logistic services. NLC is run by civilian executives and staff, only headed by an Army general which was how it was conceived when raised.
@awans: Your tone says it all. I am commissioned officer and i serve my country. I have served and taken 2 bullets for unthoughtful citizens like you (though there are countless of them who love me for what i am). Stop comparing Mangos with oranges. We would prefer better technology than building something which our organizations have totally failed to do so.
@rfaiq
Looks like the poorly built engine of Indian Railways from the 1960 are still running while the more advanced & quality built Pakistani one's are rusting in the sheds
http://youtu.be/felyEKqUxvE
:ROFLMAO:
@Awans:
Dear Awans Sahib,
The world has noted with astonishment, even if the citizens of Pakistan have failed to do so,,not being informed by their media and Army, that their missile program registered not even ONE single failure during the development and testing stages. This has not been the case for any other nation that has developed its OWN missile technology and rocket engines: NOT the US, not Russia, not China, France, the UK, India, Korea, and not even Iran or Israel, Germany or Japan.
Statistically, it is impossible that a country be able to develop engine and guidance systems from scratch without some mishaps! Pakistani engineers are no greater geniuses than any others in the world, and that much should be apparent to even the most bigoted!
So, there is only one conclusion left: every missile system has been developed fully OUTSIDE Pakistan, in China and Korea, and supplied in toto. Therefore, the question of sophistication does not arise, and not even for the nuclear industry, where the literature can be examined as to who supplied the initial fully assembled weapons for underground "testing"! This, notwithstanding Gen. Kidwai's claims. Between trusting Pakistani and US reports, I will err on the side of the latter.
Electric and diesel locomotives are not SIMPLE. The US, Canada, Japan and Sweden manufactures quality material, in descending order of merit. Pakistan would have been well-served in getting brand-new General Electric locomotives, or Canadian ones, provided they were operated and maintained with care and run on well-maintained track. I am completely neutral in my choice, and would not advocate Indian stock just because they were cheaper. Indian locomotives do have the advantage of being relatively idiot-proof, which is not the case of better machines. Also, their spare parts and servicing costs are much more reasonable. It is always better to buy new than used stock.
@Sandip: Ohh god really =P as if your program is totally what your scientists totally saw in their dreams and built accordingly.
@rfaiq: its not breaking down here in india and other 17 countries india exports to. but yes provided pakistani technician anything is possible
In Zia's time NLC causing the losses to the Railway. Railway has since not been able to recover due to competition form NLC. Now NLC is gradually taking over Railway too. In the end all will belong to the Generals as public is too naive to understand how it is played.
@Awans: There you are. You have very nicely explained the origin of all the bombs and missiles. None of those technology was developed in Pakistan. It was stolen from Holland by Pakistanis or supplied by China and North Korea.
Bechara Mr Ghulam Bilor. the PR minister.. No commission.? What is the use uf such deals
It was NLC first incharge Gen I F Qadir who nailed the first coffin in slow demise of Pak Rail I wonder what they are up to now
First the NLC contributed to the Railways decline and now they are eating it apart, while the same money could be used to get railways back to health, but alas, we are but onlookers before our Army masters.
@Captain Omer: Actually A new Captain who has a small swag for Civilians my explanation would not work. Also I think bring some officer of Higher rank here to talk about the stuff otherwise Being an Honorable Civilian i dont want to bring down my threshold to the level of a Captain who have no idea about Economy and also who have no Any Self Righteousness and Dignity left in him and Love of Commission ( Both of them) had blinded him. The Comparison of Locomotive And Missilies is very Important. If Our Army have to ask Korea for Locomotives which are developed actually in 1920s then tell me how our Army is developing Any 4th generation technology in Pakistan????.
@Ali: No I am not Jealous but I know how a Grade 18 Officer Commisioned Officer with no Good Financial Background can buy a 7 million rover or a 20 million Benz. I dont get jealous from Corrupt but feel pity for them.
Captain Omer, your comments reveal your utter contempt for the civilian government in Pakistan. Yes these politicians in Pakistan are corrupt and inefficient but I dare say your own army's record is no better with your Generals having lost all wars and still pontificating virtues of efficiency to the hapless civilians. Treat civilian government with respect and let the people of Pakistan punish the corrupt politicians in the next elections.
Oh. Khakis and their business interests. Long live the bakeries and porridge items.
@Awans: you are one jealous hypocrite =D man you're just too jealous to range rovers and Mercedes. People in the army also come from the same corrupt nation which wont leave a single chance to make money no matter how'd they make it.
@Awans: Welding of steel =D are you kidding me? hahahaah LOL!! Locomotive= "A powered rail vehicle used for pulling trains", or in layman's language, an engine which whistles =P
@Mahakaalchakra: Yes you are right. Basically after independence both the railways in either side of the border had the same inventory and same technical specification of equipment. Then the 2 railways started corruption, luckily for india Lala Prasad i believe took the railway up the sky and here political mess destroyed everything.
@Sarmad: Dont teach me. I know it very well. Army already is using Pakistan Railways and have Dedicated Unit for Military Transportation because in Army Logistics is the vital part of Moving Soldiers from one place to another but this deal is a part of Expansion of Business Empire established by Pakistan Army. Can you tell me how come Super Stores, CInemas, Housing Schemes, Transport Business, Navy Merchant Business, Saturday Tanbolas, Golf Courses, Commerical Garrison And Army Colleges, Agri Business, Fertilizer business can help Pakistani Army???. Please give me a single Example Where European Nato Command and American Army are involved in Commercial Businesses and Defense at the same time. In America even the Fighter Planes are made by Private firms like LocKheed and by Boeing. Stop defending Pakistani Army Business Empire. Their role is to defend not to make money when they are in Service on the expenses of Tax payer's money of Pakistan.
@Awans: You come in again with the total absurd approach. Typically hailing from a clan of indoctrinated minds who would say with utter confidence that military takes up to 90% of our country's budget. Railways is the backbone of Army and when we move, we move our entire fleet on railcars and carriages as roads are not always very comfortable to travel upon as our convoys could give a lot of inconvenience to the citizens. Since YOUR democratically elected government is running the Railways so well we couldn't resist ordering our own locomotives due to the fear that PR locomotives would fail us in the middle of our journey. Secondly how could you compare manufacturing missiles with locomotives?? have you totally lost it? its like saying if we can missiles why cant we print our own dollar notes to sustain our debts
@rfaiq:
You have no idea about engineering and manufacturing capabilities of Indian Railways and performance of existing stock which runs in thousands.
Awans@
Please read !
will purchase 10 reconditioned locomotives, costing $11.2 million, from Korean Rail (KORAIL) for freight operations.
It's for their own freight operations !
What is NLC and army up to.Have they not learnt any thing from the past experience
....and the Federal Minister for Railways still sits and presides over a completely failed important service sector all in the name of political expediency, which the PPP insist on calling democracy.
@Zalim Singh: and it will break down in weeks as well india only assembled them anyway
One locomotive for 1 million dollar? You can get a brand new one from India for less.
What Army is doing in Transport Business of Pakistan????. Also if we cannot even make locomotives in Pakistan then How we are making Missiles here which employ most advanced tech ???. Locomotives need welding of the Steel only then tell me why there is a need to get them from Korea????. Because of My Family Background of the Army I know how Phony these deals are. After every Foreign deal in the past i used to see one good Range Rover or Mercedez addition in my distant family. First Army must be out of All Businesses and secondly Army must be Scrutinized to build all products in Pakistan. Pakistan Army should know that Pakistan Have a Locomotive factory but Alas they dont give Commissions which French and Koreans are known for. Koreans are know to give a split of 15 out of 100 percent meaning out of every one Million dollar Korean firm can give upto 150,000 Dollars per Million which equates to more than a Million dollar in the total deal of 11.1 million. My Country unfortunately is a total mess now and we cannot do anything....:(
ramblings from a failed state!
I don't like this parallel industrial arrangement of National Logistics Cell and Pakistan Railways. However, to your last question on bidding procedure, acting as devil's advocate, there is a possibility that for NCL, the bidding process might have been skipped because of much lower procurement amount vs. that tied to PR.