Overview: Looking back at two years of Pak-Business Express
Future of such ventures hinges on success of Business Express.
The management now claims that they are regularly paying daily bills. PHOTO: FILE
LAHORE:
It has now been two years since the launch of Pak-Business Express, but ever since the historic inauguration and over-enthusiastic media coverage, little has improved. In fact, the services and punctuality of the train have deteriorated.
Pak-Business Express, the first-ever joint venture between Pakistan Railways and Four Brothers, started on February 4, 2012. But from the very next day, passengers complained that many advertised facilities were missing. Though these minor complaints were immediately addressed, the venture remained in the headlines over the past two years because of many issues, especially financial matters.
The occupancy rate was initially set at 88%, which meant that for every 100 rupees, Pak-Business Express would keep Rs12 while the rest would be paid to the railways. Under this ratio, Four Brothers were bound to deposit Rs3.1 million per day in the railways’ account.
Soon after this, Pakistan Railways signed another venture with Air Rail Services for Shalimar Express at 75% seat occupancy ratio, which prompted the Business Express management to ask the railways to slash its seat occupancy ratio to below 60% but to no avail.
Meanwhile, the Business Express management stopped crediting the agreed amount to the railways, sparking a sort of cold war between the two parties.
In January 2013, just before the first anniversary of the train, its services were suspended for around a week due to the tussle. The matter was then taken up by the Economic Coordination Committee (ECC), which after a series of meetings asked the railways to reduce the occupancy rate to 65%. The new daily amount was set at Rs2.2 million.
The management now claims that they are regularly paying daily bills, but the matter of previous outstanding amount which railways says is around Rs390 million is still unresolved.
After this, the management of Business Express once again started focusing on improvements in their services, but were unable to improve the train’s punctuality, which started deteriorating after the first year.
It claims that the Pakistan Railways is bound to provide them with quality AG-30 locomotives which they haven’t. In addition to this, the railways is also bound to conduct annual maintenance of coaches.
Pakistan Railways, on the other hand, have always rejected such claims.
“The tussle over the outstanding amount and other issues is still lingering on, suggesting that this matter and the venture will continue as it is in the coming years,” said a railways official seeking anonymity.
The moves made by Railways Minister Khawaja Saad Rafique to revive the overall railways network have resulted in improved earnings for the organisation and a reduced occupancy rate for Business Express.
The changes have resulted in improved punctuality, over Rs3.5 billion in revenue for six months and the addition of 1.5 million commuters, according to the management of Business Express.
However, a lot more needs to be done. At present, Business Express, according to the company’s Chief Operating Officer Ijaz Ahmad, faces delays of up to eight hours.
As a result, more and more commuters prefer other modes of transportation or trains. Still, many railway officials believe this venture should continue, as its closure will hurt other projects and jeopardise daily earnings of Rs2.2 million.
Published in The Express Tribune, February 6th, 2014.
It has now been two years since the launch of Pak-Business Express, but ever since the historic inauguration and over-enthusiastic media coverage, little has improved. In fact, the services and punctuality of the train have deteriorated.
Pak-Business Express, the first-ever joint venture between Pakistan Railways and Four Brothers, started on February 4, 2012. But from the very next day, passengers complained that many advertised facilities were missing. Though these minor complaints were immediately addressed, the venture remained in the headlines over the past two years because of many issues, especially financial matters.
The occupancy rate was initially set at 88%, which meant that for every 100 rupees, Pak-Business Express would keep Rs12 while the rest would be paid to the railways. Under this ratio, Four Brothers were bound to deposit Rs3.1 million per day in the railways’ account.
Soon after this, Pakistan Railways signed another venture with Air Rail Services for Shalimar Express at 75% seat occupancy ratio, which prompted the Business Express management to ask the railways to slash its seat occupancy ratio to below 60% but to no avail.
Meanwhile, the Business Express management stopped crediting the agreed amount to the railways, sparking a sort of cold war between the two parties.
In January 2013, just before the first anniversary of the train, its services were suspended for around a week due to the tussle. The matter was then taken up by the Economic Coordination Committee (ECC), which after a series of meetings asked the railways to reduce the occupancy rate to 65%. The new daily amount was set at Rs2.2 million.
The management now claims that they are regularly paying daily bills, but the matter of previous outstanding amount which railways says is around Rs390 million is still unresolved.
After this, the management of Business Express once again started focusing on improvements in their services, but were unable to improve the train’s punctuality, which started deteriorating after the first year.
It claims that the Pakistan Railways is bound to provide them with quality AG-30 locomotives which they haven’t. In addition to this, the railways is also bound to conduct annual maintenance of coaches.
Pakistan Railways, on the other hand, have always rejected such claims.
“The tussle over the outstanding amount and other issues is still lingering on, suggesting that this matter and the venture will continue as it is in the coming years,” said a railways official seeking anonymity.
The moves made by Railways Minister Khawaja Saad Rafique to revive the overall railways network have resulted in improved earnings for the organisation and a reduced occupancy rate for Business Express.
The changes have resulted in improved punctuality, over Rs3.5 billion in revenue for six months and the addition of 1.5 million commuters, according to the management of Business Express.
However, a lot more needs to be done. At present, Business Express, according to the company’s Chief Operating Officer Ijaz Ahmad, faces delays of up to eight hours.
As a result, more and more commuters prefer other modes of transportation or trains. Still, many railway officials believe this venture should continue, as its closure will hurt other projects and jeopardise daily earnings of Rs2.2 million.
Published in The Express Tribune, February 6th, 2014.