Home »Stocks and Bonds » Pakistan » Gwadar-Mastung rail link: government to launch Rs 180.2 billion project

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  • Dec 1st, 2012
  • Comments Off on Gwadar-Mastung rail link: government to launch Rs 180.2 billion project
The government will launch 'construction of Gwadar-Mastung Broad Gauge Rail Link (901-kms)' project worth Rs 180.2 billion including Rs 26.84 billion Foreign Exchange Component (FEC) for laying railway line to transport goods from Gwadar Port to upcountry and Afghanistan, Iran and Central Asian Republics, it is learnt.

The project is located in Balochistan, laying railway line from Gwadar via Turbat, Panjgur, Besima and Kalat, connecting the existing railway network at Mastung in Quetta Division of Pakistan Railways. The project is funded by federal government through PSDP. The project would be completed within 60 months (2013-18).

According to documents available with Business Recorder, the project will be financed out of block provision for the transport section. The rail link is considered absolutely essential for the optimum operation of the port to transport the goods from the port to up country and neighbouring states ie Afghanistan, Iran and Central Asian Republics.

In fact, railway is the only transport system capable of heavy haul of the minerals being extracted from vast mines of natural resources in Balochistan such as iron ore, copper, coal and marble etc at Saindak and Reko Diq, etc. The project would promote economic development and open a floodgate of numerous business opportunities not only in Balochistan but also in areas beyond the western borders of Pakistan. The proposed rail link would also cater to the economic goods originating from its immediate neighbouring country, Afghanistan in the first instance and from the Central Asian Republics (CARs) at a subsequent stage.

This rail link will facilitate passengers and transportation of other surplus transportable commodities originating from rural and urban areas in the province for further use at terminal markets of Pakistan. At a later stage when regional connectivity with Afghanistan, Iran and the CARs is improved and there is a political will on the part of respective governments of these countries to establish a mutual trade link, the significance and role of new Gwadar-Mastung Railway link will increase manifold and acquire the status of economic hub serving the international rail traffic from the region specially for Afghanistan and the CARs. The project will develop the backward areas of Turbat, Hushab, Panjgur, Besima, Sorab, Kalat and Mastung, districts of Balochistan by boosting the economic activities in the area. The proposed rail link will not only connect the capital of Balochistan Province, Quetta with other far flung areas, it would also provide access to the passengers of Railway network, connected with all major cities of Pakistan.

Gwadar-Mastung Railway line will connect central Balochistan with existing Quetta-Zahedan railway line. Thus it will herald a new epoch of economic prosperity and friendship between Pakistan, Iran, Afghanistan and CARs, raising strong prospects of deep and long term economic, commercial and social linkages with these states. According to documents, an exhaustive exercise was carried-out by the consultants to explore and study several alternate routes and after a series of discussions and analysis, a final route was selected: Gwadar-Talar-pass (102 kms), Talarpass-Turbat (62 kms), Turbat-Hoshab (84 kms), Hoshab-Panjgur (155 kms), Panjgar-Besima (220 kms), Besima-Surab (91 kms) and Surab-Mastung (by-passing Kalat at 14 kms West) (187skms).

The documents further explain that as many as 35 railway stations have been proposed for general public on Gwadar-Mastung Rail Link over a distance of 901 kms. The distance between the stations will be sufficient to accommodate more than 26 trains per day. Latest technology will be used for signalling and telecommunication system.

Copyright Business Recorder, 2012


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