KARACHI – Despite the closure of dozens of trains for promoting freight earnings, the Pakistan Railways, which is facing losses of over Rs 50 billion, has yet to develop its cargo service sector that could be one of the most beneficial sources of revenue, sources have informed Pakistan Today.
The railway authorities have instead handed over the lucrative sector to private companies that have monopoly over the inter- and intra-city transportation of goods through various trains.
While the railway authorities have handed over the entire luggage bogies of two trains to private goods forwarding companies, they have also relinquished 50 percent space in the bogies of the remaining trains.
It is apparent that the Pakistan Railways has never given serious consideration to its cargo service sector that could, under the present circumstances, help it to reduce or cover its financial losses.
Currently, the railway authorities have only three stations for cargo service at Faisalabad, Peshawar and Multan, leaving the other stations to be covered by private companies.
The Pakistan Railways has handed over the mail bogies of the Chenab Express to a private company, which is now running them under the Hazara Express and covering only the major stations.
The minor junctions are compelled to send luggage to the major stations at Lahore, Faisalabad, Rohri, Khanewal, etc, which costs double.
Private companies are also operating the Super Parcel Express, the mail train comprising 10 bogies that runs from the city station.
Despite depriving itself of the freight fares, the railway authorities have also stopped the ‘to-pay’ facility, which is the fare to be paid by the parcel receiver, ultimately causing financial losses to the Pakistan Railways.
The private companies, on the other hand, have introduced the facility to attract those rejected by the cargo service department of the Pakistan Railways.
The companies are charging 40 percent higher rates as goods transporting fare per kilogramme.
Moreover, the Pakistan Railways has no proper system for delivering the goods on time and people have to wait weeks to transfer their goods from one junction to another.
Only four trains usually ran from the city railway station, namely the Zakaria Express, the Fareed Express, the Khushhal Express and the Qalandar Express, and the rest from the Cantt station.
Interestingly, 70 percent earnings of the Pakistan Railways are made from passenger trains, whereas only 30 percent from the mail trains or the cargo service.
On the other hand, the Indian Railways are earning 70 percent from the mail trains or the cargo service.
Pakistan Railways yet to exploit lucrative cargo service
