News
Friday, November 11, 2011
Private sector to run 100 trains* Rail track will be leased out to investors for operations of freight trains under a three-year extendable agreement
By Sajid Chaudhry
ISLAMABAD: Good times are fast approaching to Pakistan Railways as some 19 private sector investors have shown willingness for revival and operation of around 100 rail engines with their own huge investment and operation of 100 freight trains in the private sector, official sources informed.
The Pakistan Railways Re-Vitalisation Plan Committee constituted by the Planning Commission has chalked out a comprehensive plan for revival of railways freight operations, an earning arm of the Pakistan Railways.
Private sector investors to make available financial resources for Pakistan Railways for repair of at least 100 freight train engines and rail track would be leased to them for freight trains under a three-year agreement. The lease agreement will be extendable for another three years upon satisfactory performance and maintenance of operations.
Under the proposed arrangement initially agreed with the private sector investors, each investor will provide Rs 50 million for repair and operation of freight trains.
At present 60 engines out of 400 engines are available with the railways and this has been identified as the main reason for the revenue losses. Due to the reduced operation of freight business, the Pakistan Railways’ annual earning, which was Rs 28 billion three years ago, has came down to just Rs 14 billion against its annual expenditure of Rs 48 billion.
The Planning Commission Committee has recently finalised the proposal for its formal submission to the Cabinet Committee on Restructuring (CCOR) of Public Sector Entities headed by Federal Finance Minister Hafeez Sheikh.
The government has already enhanced fuel credit line for the Pakistan Railways from the Pakistan State Oil over Rs 2 billion as well as Rs 6.1 billion credit is also been agreed upon from a banking consortium led by the National Bank.
Courtesy www.dailytimes.com.pk