OLMT may get route monopoly

Punjab govt considering proposal to increase passengers, reduce subsidy

LAHORE:

Punjab government is considering a proposal to disallow private commercial transport along the metro train route to reduce the burden of subsidy on the service by increasing the number of passengers.

The subsidy given in public transport in Lahore has gone up to Rs34.2 million daily, while the total figure for the province is Rs50 million.

Despite billions of rupees in subsidies, the authorities in Punjab have failed to provide adequate travel facilities to the citizens. To reduce the subsidy in the sector, the provincial government has started considering proposals like increasing the route permit fees and barring private commercial transport along the Orange Line track.

The burden of public transport subsidy on the Punjab government, which is facing financial difficulties, has been continuously increasing. Subsidies of millions of rupees are being given on public transport daily.

With the number of passengers traveling on the Orange Line Train reaching only half its capacity, the revenue does not cover the operational expenses of the service. To increase the number of passengers on the train, work has been started on a proposal to discontinue other public transport services along the track. All public road transport, including motorcycle and auto rickshaws and wagons, will be removed from the route in phases.

According to the Punjab Mass Transit Authority's data, at least 2,060,062 passengers travelled on the train in November. The highest number of passengers in a day was 132,355 on November 8, while the lowest was 51,134 on November 4.

The Orange Line Metro Train (OLMT) earned over Rs82 million in November. According to officials of the authority, the number of passengers had increased with time.

However, the OLMT consumed 1.3 million units of electricity from Singhpura circuit and 2.1 million units from Multan Road circuit. The bill for the electric power amounted to about Rs70 million.

The government also sent a summary to the Chief Minister's Office to increase the annual fee for route permits of private vehicles to increase the revenue from the transport sector of the province. It proposed that the route permit fee of B class buses be increased by Rs700 to Rs1,100 and M class to Rs2,000. Cabs would be given route permits for Rs850 instead of Rs600, goods transport Rs2,550 and motorcycle rickshaw Rs600 for a year. It was also proposed that the fee for auto rickshaw be increased from Rs600 for three years to the same amount per year.

However, the summary was deferred by the Chief Minister's Office after protests by transporters.

Talking to The Express Tribune, Punjab Transport Secretary Syed Ali Murtaza said the Orange Line Metro Train and the Lahore, Multan and Rawalpindi Metrobus service were being given subsidies of more than Rs12 billion annually. He said the aim of giving subsidy was to provide affordable and quality travel facilities to the people.

He said a reduction in subsidy was possible only if the number of passengers using the services increased and citizens travelled in them as per their full capacity so that the revenue could surpass the operational cost.

“At present the situation is different because the number of passengers travelling in Orange Line Train is less than its capacity. When it carries passengers with full capacity, its subsidy will be reduced,” the official added.

Published in The Express Tribune, December 15^th, 2020.