Pakistan Railways (PR) may face further losses if the proposal for giving goods trains to National Logistic Cell (NLG) is approved, since the Cell is also facing billions of rupees in losses. Ongoing talks between Pakistan Railways’ high ups and NLC administration for running the freight trains by the latter, will not benefit railways as despite using PR’s own tracks, engines and other installation, railways will be receiving only 30 per cent of the revenue generated by the freight service, sources told Pakistan Today.
Deal not favouring PR
Though in a meeting held between NLC and Chairman Railways on Tuesday in Lahore, it has been proposed that NLC will repair almost six faulty engines, which would be used for running the goods forwarding service from Karachi to up-country, the sources claimed that the terms and condition for the fresh deal were not in favour of PR. According to sources, under any agreement for outsourcing the freight services, the NLC or other private firms/agencies should bring their own engines, locomotives and PR should charge them for using its track and stations, etc.
Fresh proposals/deals
However, as per fresh proposals, the only reparation of faulty engines, which is worth more than Rs250million, was not justified for running the entire affairs of goods transport from Karachi Dry Port to up-country with a meager share of 30 per cent revenue generated through this service. However, sources claimed that PR administration struck the deal with NLC despite all apprehensions and reservations as it has already received Rs20 million from the cell under the fresh deals. The fresh deal is likely to be the same one as the railways had made with Pakistan Railways Advisory Committee Services (PRACs), under which railways get only 40 per cent of the revenue despite using its tracks, engines, fuel and even staff. 60 per cent revenue was obtained by semi-private organisation for only selling/marketing tickets.
Conditions favouring private organisations
As giving the passenger and goods trains to PRACS have not benefited the PR, the fresh deal with NLC was also likely to be fruitless as the conditions set for such deals were highly in favour of the private organisations. It is worth mentioning here that Pakistan Railways has also given operational control of Karachi Dry Port to the NLC as the former was failed to run the port. After getting control of the port, NLC was willing to run almost six freight trains of PR for its own freight handling and transportation from Karachi to various destinations across the country, through repairing existing faulty engines.
Reasonable charges
Following the recent deal, PR, has also called back 70 to 80 employees from the port and placed them in other departments. Talking to Pakistan Today, Manzur Razi, Chairman, Railways Workers Union, said the fresh agreement with NLC, which is already running in losses, would not benefit the railways. If NLC is interested in running freight trains, it should come up with its own locomotives, engines and staff, while paying reasonable charges to railways for using tracks and other installations.
