Pakistan Railways: A slight improvement, but still a long journey ahead
Carrier far from glory days, but reformed to meet new challenges.
At present, PR has an operational fleet of over 130 locomotives, but only around 100 are being used for passenger and freight transport and the remaining are used for shunting services. PHOTO: ONLINE
LAHORE:
Cash-strapped Pakistan Railways (PR), after five years of neglect, seems to have finally woken up from slumber.
Year 2013, though not financially successful for the state-owned corporation, saw the new management, led by Railways Minister Khawaja Saad Rafique, at least willing and somehow performing much better than the previous management. PR is improving but at a snail’s pace, trying to overcome years of damages.
The most interesting decision taken by Rafique was to slash fares of passenger trains by 33%. PR claims that revenues from passenger traffic for the first six months of fiscal year 2013-14 are above target, mainly as a result of high number of passengers attracted by lower fares.
Total passenger revenue target for the current fiscal year is Rs14 billion. Revenues earned so far during six months were Rs7.73 billion, which are Rs730 million more than the target of Rs7 billion. The target itself is Rs1.25 billion more than last year’s target.
Total revenue target for the year is Rs21.60 billion. As a result of the growth, PR has decided to continue lower fares for another three months.
Locomotives
At present, PR has an operational fleet of over 130 locomotives, but only around 100 are being used for passenger and freight transport and the remaining are used for shunting services.
The new management was able to expand the fleet with financial assistance from the government.
The Executive Committee of National Economic Council (Ecnec) has already approved two projects for PR. The first one was for the procurement of 59 diesel electric locomotives worth Rs19.4 billion. Of these, 23 will reach Pakistan by April 2014, according to Railways Director General Public Relations Rauf Tahir.
“A majority of these locomotives will be used for passenger trains and the rest will be used to increase freight operations,” he said.
The second project was for the rehabilitation of 30 diesel electric locomotives at an estimated cost of Rs6.3 billion. As a result, PR has been able to add one locomotive to its fleet each month.
Passenger and freight operations
PR is operating 96 passenger trains, compared to 234 train routes it once operated on. The new management is focusing more on express trains, providing them with better locomotives.
The fleet of freight trains, which could not run for three months this year, now numbers five, while the management’s targets is to at least double the figure before the close of financial year.
Under the new management, PR has revamped its freight services to focus more on this profitable venture. It once operated 60 trains powered by 40 locomotives.
Containerised trains earn between Rs2 and Rs3 million per trip while oil trains contribute around Rs4 million per trip to the railways.
Public-private partnerships
Public-private partnerships remained one of the most profitable ventures for PR. Currently, three trains are being operated under this model. Pak Business Express contributes Rs2.2 million daily to railway revenues, Shalimar Express contributes Rs1.8 million daily and Night Coaches contributes Rs1.7 million per day.
However, PR authorities and Pak Business Express management have also been locked in dispute over unpaid dues to PR. Earlier this year, PR suspended the Business Train’s operations over the issue. Upcoming projects include privatisation of Lahore and Rawalpindi-bound rail cars, expected in March 2014.
Published in The Express Tribune, December 31st, 2013.
Cash-strapped Pakistan Railways (PR), after five years of neglect, seems to have finally woken up from slumber.
Year 2013, though not financially successful for the state-owned corporation, saw the new management, led by Railways Minister Khawaja Saad Rafique, at least willing and somehow performing much better than the previous management. PR is improving but at a snail’s pace, trying to overcome years of damages.
The most interesting decision taken by Rafique was to slash fares of passenger trains by 33%. PR claims that revenues from passenger traffic for the first six months of fiscal year 2013-14 are above target, mainly as a result of high number of passengers attracted by lower fares.
Total passenger revenue target for the current fiscal year is Rs14 billion. Revenues earned so far during six months were Rs7.73 billion, which are Rs730 million more than the target of Rs7 billion. The target itself is Rs1.25 billion more than last year’s target.
Total revenue target for the year is Rs21.60 billion. As a result of the growth, PR has decided to continue lower fares for another three months.
Locomotives
At present, PR has an operational fleet of over 130 locomotives, but only around 100 are being used for passenger and freight transport and the remaining are used for shunting services.
The new management was able to expand the fleet with financial assistance from the government.
The Executive Committee of National Economic Council (Ecnec) has already approved two projects for PR. The first one was for the procurement of 59 diesel electric locomotives worth Rs19.4 billion. Of these, 23 will reach Pakistan by April 2014, according to Railways Director General Public Relations Rauf Tahir.
“A majority of these locomotives will be used for passenger trains and the rest will be used to increase freight operations,” he said.
The second project was for the rehabilitation of 30 diesel electric locomotives at an estimated cost of Rs6.3 billion. As a result, PR has been able to add one locomotive to its fleet each month.
Passenger and freight operations
PR is operating 96 passenger trains, compared to 234 train routes it once operated on. The new management is focusing more on express trains, providing them with better locomotives.
The fleet of freight trains, which could not run for three months this year, now numbers five, while the management’s targets is to at least double the figure before the close of financial year.
Under the new management, PR has revamped its freight services to focus more on this profitable venture. It once operated 60 trains powered by 40 locomotives.
Containerised trains earn between Rs2 and Rs3 million per trip while oil trains contribute around Rs4 million per trip to the railways.
Public-private partnerships
Public-private partnerships remained one of the most profitable ventures for PR. Currently, three trains are being operated under this model. Pak Business Express contributes Rs2.2 million daily to railway revenues, Shalimar Express contributes Rs1.8 million daily and Night Coaches contributes Rs1.7 million per day.
However, PR authorities and Pak Business Express management have also been locked in dispute over unpaid dues to PR. Earlier this year, PR suspended the Business Train’s operations over the issue. Upcoming projects include privatisation of Lahore and Rawalpindi-bound rail cars, expected in March 2014.
Published in The Express Tribune, December 31st, 2013.