Home »Business and Economy » Pakistan » Infrastructure, rolling stock projects: Railways again seeks JVs
After receiving lackluster response from investors against initial offer, Pakistan Railways (PR) again seeks joint ventures in its infrastructure development and rolling stock projects. PR had earlier issued bids for laying new railways tracks and rehabilitation/ up-gradation of Main Line-2 (ML-2) and ML-3 which were repeatedly extended but according to sources, it got cold shoulder or received almost no response from investors.

Pakistan Railways intends to upgrade Railway Line from Kotri to Attock (ML-2) (1,254 km), as it is considered important for regional connectivity. Joint venture opportunities can be explored for up-gradation of this section. Technical feasibility for up-gradation of this section has been completed and the estimated cost is US $ 2,270.40 million. The up-gradation of ML-1 (1,872 km) is already in process under a framework agreement after which the sectional speed will increase from 65-105 km/h to 120-160 km/h and the line capacity will increase from 34 to 171 trains each way per day.

The PR also intends to establish a new rail link from seaport at Gwadar to Mastung (near Quetta) stretching over 900km at an estimated cost of $2 billion. A new rail link is also required to be established between Basima and Jacobabad (300km) at an estimated cost of $1.25 billion. Joint venture opportunities can be explored for establishment of these new rail links. The ML-3 railway line is an important section of railway network in the context of regional connectivity and tapping the mineral potential of Balochistan.

This project can be conceived as a trade corridor among Pakistan, Iran, Turkey and beyond up to Europe as well as it is important regional connectivity. It will provide a fast comfortable and reliable mode of transport with the commencement of ECO container train from Islamabad to Istanbul via Iran making it an international link for boosting of the cross-border trade and travel.

Feasibility study for ML-III was carried out in 2018; estimated cost for the Rohri-Sibi-Quetta section (384km) is $523 million, whereas for Spezand-Taftan section (612km), the estimated cost is $995 million. The possibilities of joint ventures in extension of ML-3 can also be explored which stretches over 560km on Quetta-Bostan-Zhob-Dl Khan-Kotla Jam sections. This new rail link will provide important connection for transportation of freight and passengers between north & south of the country. The process for feasibility study has been initiated and is expected to be completed by the end of 2019.

Presently the sea freight arriving at Karachi port is mainly being disposed of inland through road transport due to poor rail connectivity. The Ministry of Railways encourages investment on BoT basis for establishing a new rail link from Karachi port to Marshalling Yard Pipri which will reduce the congestion on roads and will enable quick unloading of ships and speedy evacuation of freight from the port area.

The freight will be transported to Pipri Yard and then transported up-country through rail track. There are important terminals/dry ports on Pakistan Railways System which needs to be upgraded, namely Pipri (Karachi) and Badami Bagh (Lahore) stations, also dry ports at Moghalpura (Lahore) and Azakhel (Peshawar). The scope of work may include station platforms, goods yards, goods sheds, offices and customer services.

It may also include heavy machines/ equipment as per requirements. Pakistan Railways intends to upgrade major Railway Stations at Karachi, Hyderabad, Quetta, Sukkur, Rohri, Multan, Lahore, Rawalpindi, and Peshawar station, in order to facilitate the passengers to exploit commercial potential of the railway stations. The Ministry of Railways has production facilities for assembling of locomotives and passenger coaches. To run these facilities on modern lines, the ministry is seeking investment through private sector participation. Various options for joint ventures can be explored in these production facilities mainly in Pakistan Locomotives Factory Risalpur and Carriage Factory Islamabad.

Tender for procurement of 230 passenger coaches has been advertised and its opening date is 17.09.2019. Tender for procurement of 820 high capacity freight wagons has been advertised and its opening date is 17.09.2019. Tender documents can be purchased from the office of Director Procurement, Railway Carriage Factory, Pakistan Railways, Islamabad. Pakistan Railways has following maintenance facilities for overhauling of locomotives and rolling stock.

i. Central Diesel Locomotive Workshop Rawalpindi (1965); ii. Diesel Workshop Karachi (1962); iii. Loco shop Moghalpura Lahore (1912); and iv. Carriage and Wagon shop Moghalpura (1927). These facilities have out-dated plant and machinery and require up-gradation to improve repair and overhauling activities. Partnership possibilities can be explored for sustainable operation of these facilities in different modes including strategic partnership, joint venture or any other mode.

Pakistan Railways owns a locomotive manufacturing facility at Risalpur established in 1993. It is spread over an area of 257 acres and has an annual production capacity of 25 DE Locos. Partnership possibilities can be explored for sustainable operation of this factory in different modes including strategic partnership, joint venture or any other mode. Pakistan Railways owns a passenger coaches manufacturing facility at Islamabad established in 1970. It is spread over an area of 141 acres and has an annual production capacity of 150 passenger coaches. Partnership possibilities can be explored for sustainable operation of this factory in different modes including strategic partnership, joint venture or any other mode.

Pakistan Railways network comprises of 7791km route connecting the entire major cities in Pakistan. There are 527 railway stations over Pakistan Railways (PR) network in addition to 68 halt stations. PR owns 465 diesel electric locomotives and rolling stock comprising of 1822 passenger coaches and 16,159 freight wagons. During last fiscal year more 60 million passengers availed travelling facility over PR while more than 8 million ton of freight was transported.

Copyright Business Recorder, 2019


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