Turkey train project not feasible: Railways

Conveys refusal to support the Gul Train Project at Islamabad meeting.


Qaiser Butt April 07, 2011

ISLAMABAD:


The Pakistan Railways (PR) has refused to support the proposed plan to run a train between Pakistan and Turkey as it considers the plan is not feasible, official sources told The Express Tribune.


The railways’ unwillingness to support the proposed Gul Train Project, named after Turkish President Abdullah Gul, was conveyed at a recent meeting chaired by the finance minister in the federal capital.

The Pakistan Railways, which is already facing serious financial crisis, told the meeting that it needed at least $700 million to revamp its infrastructure from Quetta to Taftan, near the Iranian border, which it could not afford with its own meagre resources.

Railways officials said that the Gul Train Project, linking Pakistan and Turkey via Iran, would prove much more expensive than its estimated cost. “It will take the train over 24 days to reach Turkey from Pakistan,” the officials told the meeting. They believed that this freight train would not attract the business communities in the two countries.

The financial crisis has already forced the railways to stop around a dozen of its trains during the last two years. The replacement of the existing locomotives with new ones was one of the reasons for the stoppage of these trains, the officials told the meeting.

However, the federal government is preparing to finalise the draft of the agreement to be signed with Turkey for the Gul Train Project. The agreement is expected to be signed on April 12-14 when President Asif Ali Zardari will be visiting Ankara.

A delegation, led by the head of Turkey’s Economic Policy Research Foundation, Dr Guven Sak, had discussed the project with President Zardari last month in Karachi. Sak had said that the pre-feasibility study of the project would be completed by the time the president visits Turkey.

After holding meetings with officials of the Board of Investment and Pakistan Railways, Sak described the project as achievable.

The federal government expected that equity for the project might be raised through stock exchanges and international companies engaged in infrastructure development business.

A finance ministry source told The Express Tribune that Japanese entrepreneurs had earlier expressed interest in the project.

The source said that the project would boost trade with Europe and the Middle East and could subsequently be extended to Central Asian states.

Presidential spokesperson Farhatullah Babar said that the president has suggested that Turkish stock exchanges and the Turkish chamber of commerce should negotiate with stock exchanges and companies in Pakistan for the establishment of a holding company and subsequently setting up of joint ventures to take over commercial management of the cargo train.

Published in The Express Tribune, April 7th,  2011.

COMMENTS (9)

Aurangzeb Khan | 12 years ago | Reply @chandran: Its a good proposal and this is the future of trade from pakistan to central Asia and Europe.It will be cheaper and faster than Sea Route. But No Govt. in Pakistan will take that risk allowing India this trade route without kashmir and water issues unresolved, People of Pakistan will not allow it. Govt, Fear backlash and even fall of Govt. I don't think it's going to happen anytime soon. Now Zardari will ask for assistance to Turkey to invest in the project. From Taftan it will be Iranian Railway lines. Train will continue to Turkey Via Iran and in case Trade can expand to Europe via Greece , And from there to Western and Eastern Europe.
chandran | 12 years ago | Reply both countries transport secrataries can meet and do the formalities
VIEW MORE COMMENTS
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ