China Pakistan Economic Corridor (CPEC) | Railway

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Inspection of 70 wagons arriving at Karachi port begins.
Karachi to Peshawar trial will start in the next 4 days.
This is the plan of the 820 wagons.
The remaining 750 wagons will be assembled at Railway Loco Shop Mughalpura.
New wagons will increase railway revenue by Rs 1.5 billion annually...

کراچی پورٹ پہنچنے والی 70 ویگنیں | کراچی پورٹ پہنچنے والی 70 ویگنوں کی انسپکشن شروع اگلے 4 روز میں کراچی تا پشاور ٹرائل کا آغاز ہو گا یہ 820 ویگنز کا منصوبہ ہے باقی 750 ویگنیں ریلوے لوکو... | By China Pakistan Economic Corridor - CPECFacebook

کراچی پورٹ پہنچنے والی 70 ویگنوں کی انسپکشن شروع اگلے 4 روز میں کراچی تا پشاور ٹرائل کا آغاز ہو گا یہ 820 ویگنز کا منصوبہ ہے باقی 750 ویگنیں ریلوے لوکو...

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ML-1 Project details..............

 

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New Chinese railway coaches to run from Jan 27​

January 25, 2023




LAHORE: The Pakistan Railways (PR) is going to start from Jan 27 the commercial operations of the new state-of-the-art passenger 46 coaches recently imported from China as the completely built units (CBUs) manufactured by a Chinese firm under an agreement.

The coaches’ operation would begin with the composition of the Green Line Express Train that will resume running from Islamabad to Karachi via Rawalpindi, Lahore, Khanewal and Sukkur.
The operation of the train was suspended in August last year due to the floods and it would be resumed with new Chinese coaches, Dawn has learnt.

“The trial run of the coaches has been completed. After the trial, it has been decided to operate them as a part of Green Line Express Train from Margalla Station (Islamabad) to Karachi with effect from Jan 27,” an official source in the railways said while talking to Dawn on Tuesday.

“The new coaches are well-equipped with modern facilities including Wifi, dining, LCDs, phone charging and others. All services will be free of cost,” he added.

The official said 46 new coaches would comprise three rakes—one will move from Islamabad, another from Karachi and the third would be stationed at Lahore as a spare one.

It merits mentioning that the 46 high-speed modern coaches were received as CBUs from China on Nov 27 last year, paving the way for provision of state-of-the-art rail travel facilities to the masses.

Arrangements have also been made to start manufacturing of 184 similar coaches (passenger, luggage and brake vans) under the technology-transfer component of the 230 coaches’ purchase contract. Since the test run of all 46 coaches was recently completed, the railways planned to use them in various express trains on the main line.

“Modern train coaches can run at the speed of 160km per hour,” the official said, adding that the federal government had, in November 2021, inked an agreement with the China Railway Construction Corporation Tangshan Locomotive and Rolling Stock Company for the supply of 230 high-speed coaches to the Pakistan Railways.

PR Chief Executive Officer (CEO) Salman Sadiq Sheikh has termed the commercial operation of the passenger coaches the beginning of a new era of modern traveling in Pakistan.

“The facilities, which will be made available to the passengers during the journey by the Green Line will include high tea, breakfast and lunch of a five-star hotel, high-quality bedding,
infotainment and WiFi,” the CEO said while speaking to participants in an online open court he held at the PR Headquarters on Tuesday.

He said the PR, after the hard work, succeeded in restoring operation of its freight and passenger trains gradually, which were suspended due to floods. To a question, he said despite an increase in the fares and freight charges following increase in the POL prices, the PR passenger train fares and goods’ train charges were much less compared to the road transport.

 

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Havelian dry port on track for completion by year-end​

February 4, 2023




ISLAMABAD – The proposed Havelian dry port in the Haripur district of Khyber Pakhtunkhwa will facilitate the freight trade between Pakistan and China.

The dry port is a proposed project of Pakistan Railways, and will be financed through the Chinese government’s concessional loans.

The port will have railhead facilities, high speed/capacity stock, an off-dock terminal for handling bonded import/export containers to meet the demand of future freight traffic under the China-Pakistan Economic Corridor. It will initially serve as a dry port and container terminal for products arriving by road from China via the Karakoram Highway.

According to Hassan Daud Butt, chief executive officer of Khyber Pakhtunkhwa Board of Investment, the development of Havalian Dry Port would spur growth and prosperity in the region by providing jobs to the locals and raising their living standards. “The project will attract massive domestic and international investment, reducing unemployment, increasing per-capita income, and improving the quality of life for local residents.”

He informed WealthPK that technical and financial aspects of the project had been fine-tuned and the project was likely to be launched during this year. He said the dry port project would help ‘transform’ Pakistan’s economy. He said the project would cost $65 million, covering development of the dry port as well as upgradation of Main Line-1 (ML-1), a 682-kilometre-long railway line linking Havelian to the Chinese city of Kashgar.

Daud Butt said the railway line will provide access for goods from China and other East Asian countries to ports in Pakistan, adding the Havelian dry port would ensure uninterrupted logistics flow of cargo on the CPEC route. He said the Havelian dry port will be one of the key dry ports in Pakistan as it is located at the most important cross-sections, ensuring overall transportation connectivity.

Daud Butt said the project was supposed to be completed in 2022, but delays were caused due to delay in feasibility study and lack of funds as no budget was announced for the project in the Public Sector Development Programme (PSDP) 2021-22.

He said now for the project’s initial launch, a budget of Rs5,000 million has been provided in the PSDP 2022-23, including foreign aid of Rs100 million. Daud Butt said the project would help Pakistan in many ways, as in addition to boosting trade with China, it will also create significant commercial and economic opportunities.

“The project will reduce freight costs, save foreign exchange, and help promote the country’s business and tourism sectors.”

 

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Pakistan Railways and two Chinese companies are set to launch a new railway app in Gwadar.

This new app aims to revolutionize the railway sector in the region and improve the overall experience of rail travel for passengers. With the app, users will be able to easily book tickets, check train schedules, and track trains in real-time, making rail travel more convenient and efficient.

The collaboration between Pakistan Railways and the two Chinese companies highlights the close partnership between Pakistan and China and their commitment to modernizing the country's transportation infrastructure.
The specific details and names of the Chinese companies involved have not yet been disclosed.

 

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Federal govt to spend Rs450 million for hiring consultant for ML-1 project under CPEC​

March 6, 2023



Islamabad-The federal government will spend Rs450 million for hiring of consultant for the preparation of governance-HR structures, development of business and cash flow models and its implementation for upgradation of Karachi to Peshawar Main Line-1 (ML-1) under China-Pakistan Economic Corridor (CPEC).

The Central Development Working Party (CDWP) has approved the China-Pakistan Economic Corridor Support Project (2nd Revised) at the cost of Rs909.285 million – the main component of which is the hiring of consultancy firm and salaries of the employees.

For hiring of consultancy firm—an allocation of Rs450 million, for the payment of salaries and allowances—Rs383.373 million, while the remaining allocation will go to other components of the project, the source said. The Original PC-I of the project was approved by the Central Development Working Party (CDWP), in 2015, at the total cost of Rs252.0 million without FEC. The project envisages establishing a China-Pakistan Economic Corridor (CPEC) Support Secretariat at Ministry of Railways.

The 1st Revised PC-1 of the project was approved by the DDWP, in 2020 at the total cost of Rs910.347 million with FEC of Rs198.0 million. Now the CDWP once again revised the PC-I at the cost of Rs909.285 million.

According the source, the main reason for the revision of PC-1 was hiring of consultants for the preparation of Governance and HR Structures and Development of Business and Cash Flow Models for upgrading ML-1 and their implementation. Revision of pay packages according to new Project Pay Scales (PPS) issued by the Finance Division and rationalisation of human resource as per requirement of the project.

The 2nd Revised Project envisages establishing Project Management Unit (PMU) at the Ministry of Railways and a Project Implementation Unit (PIU) in Lahore, for efficient and effective implementation of the CPEC activities on ML-1 of Pakistan Railways. These activities primarily comprise supervision and monitoring of the project activities like preliminary design, cost estimation, preparation of PC-1, monitoring and processing of tenders for EPC contract(s), and monitoring and liaison during the execution of the project, and for this purpose, a specific provision was made in the PC-1 for hiring of human resource.

Main objective of the project is to establish/strengthen Project Management Unit (PMU) in the Ministry of Railways, Islamabad and Project Implementation Unit (PIU) at Pakistan Railways, Lahore for overall coordination and implementation of China-Pakistan Economic Corridor projects/activities.

The project will facilitate, coordinate, monitor and evaluate the programme and projects related to ML-I; provide a much-needed platform for multi-sector coordination and a consultative, ‘informed’ approach to trade and transport reforms and policy formulation; enhance capacity and provide policy and governance advice to support GoP’s transport and energy infrastructure modernisation agenda in the context of regional connectivity.

Moreover, it will enable Pakistan Railways to use innovative modes of implementing and financing projects and tap modern sources of financing; provide secretarial services for procurement of sector specialists; supervise preparation and implementation of governance/managerial reforms to get the desired benefits of upgraded ML-1; hiring services of advisory/consultancy firms/individual consultant/consultants for preparation and scrutiny of bidding documents/RFPs, designing/survey, evaluation of tenders/RFPs and for third party appraisal/validation of feasibilities, design/survey, project estimates, other documents and to assist PIU in any matter related to project, etc.

The technical section of the Planning Commission asked the sponsor of the project to clarify that an amount of Rs239.5 million has been utilised till June 2022 by the sponsors since the inception of the project in 2015. This infers that in the period of 6.5 years i.e. Jan 2016 to Jun 2022 only Rs239.5 have been utilised which is 26.32 percent of the 1st revised approved cost. It was also asked that sponsors may inform about the performance of the Project Management Unit/PIU till now as justification for revision of the project.

The cost of hiring of consultancy services provided as Rs450.0 million needs to be rationalised and it should be based on actual– since the consultants have already been hired by MoR/PIU.

 

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The proposed railway, connecting Pakistan’s port of Gwadar to Kashgar in China’s Xinjiang Uygur autonomous region, was assessed by scientists from the state-owned China Railway First Survey and Design Institute Group Co Ltd.

The team, led by the institute’s deputy director of capital operations Zhang Ling, said the project was the belt and road plan’s most expensive transport infrastructure.

Despite the cost, the project had the potential to reshape trade and geopolitics across the Eurasian continent and should be supported, the team said in a report published by the Chinese-language journal Railway Transport and Economy in April.

“The government and financial institutions [in China] should provide strong support, increase coordination and collaboration among relevant domestic departments, strive for the injection of support funds and provide strong policy support and guarantees for the construction of this project,” they said.

The institute is one of the largest of its kind in China and has been involved in many major railway projects at home and internationally, including Indonesia’s Jakarta-Bandung high-speed rail line.
Pakistan is unable to make a similar contribution. Its GDP last year was US$370 billion – just six times the estimated cost of the project.

“Due to energy shortages, poor investment environment and fiscal deficits, Pakistan’s economic growth rate has come under pressure,” the team said.

“In terms of railway investment and construction, Pakistan is unable to provide sufficient financial and material support and mainly relies on Chinese enterprises for investment and construction.”

One reason for the hefty cost is the mountainous and geologically complex terrain along the route. There could be technical challenges to overcome in the construction and operation of the railway, the researchers said.

The project also required supporting infrastructure – such as ports and logistics facilities – that might not be immediately available in Pakistan, they said.

The study said Pakistan’s labour policies could be unpredictable, which could potentially affect the railway’s construction and operating costs.

The team also noted that Pakistan had experienced security challenges in recent years, including in its western region where the railway will pass through. Balochistan province, for instance, has been plagued by separatist violence for decades.

This could potentially disrupt construction and operation of the railway and pose a risk to Chinese workers and investments, the researchers said.

The study also pointed out the railway’s potential impact on neighbouring countries, such as India. With each country having its own priorities and interests, there could be disagreements or delays in decision-making related to the project, it said.

Zhang’s team suggested that a build and transfer (BT) model would provide the best investment and financing strategy for the project.

They considered BT against build-operate-transfer, public-private partnerships, and the engineering, procurement, construction mode that are becoming more popular in belt and road projects.

In the BT model, a contractor would be responsible for designing, building and financing the railway, with payment on completion and ownership transferred to the government or other commissioning entity.

The researchers said BT would allow the risks associated with the railway’s construction and operation to be allocated more effectively between China and Pakistan, potentially reducing the financial risks for both parties.

By ensuring that ownership of the railway was transferred to Pakistan, BT could also help to build trust between China and Pakistan by showing China’s commitment to supporting Pakistan’s long-term economic development, they said.

China and Pakistan have been talking for years about the railway, a crucial part of the China-Pakistan Economic Corridor (CPEC) that was launched in 2015 and aims to connect Gwadar port to Xinjiang through a network of roads, railways and pipelines.

The researchers said the China-Pakistan relationship was complex, with both countries having different priorities and interests.

Negotiating agreements related to financing, labour policies, and other issues would require careful consideration of each country’s priorities and interests, they said.

In conclusion, Zhang and his team said their recommendation could help to move negotiations forward.

 

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1860 km railway line planned from Kashgar to Gwadar to connect Balochistan with Xinjiang

By Shafqat Ali | Gwadar Pro
May 1, 2023

QUETTA)- Chairman Pakistani Senate’s Standing Committee for Petroleum and Resources Senator Abdul Qadir announced on Sunday afternoon that about 1860 kilometers long railway line has been planned from Kashgar to Gwadar to connect Balochistan with the Chinese province of Xinjiang.

This project was proposed on the occasion of the inauguration of the China-Pakistan Economic Corridor (CPEC) Program in 2014.

In a statement issued here, Qadir informed that China had confirmed the implementation of this project and the allocation of budget for it, this project would be completed at a cost of 58 billion Dollars saying that this project of the railway line was actually a part of the grand project of restoring the old Silk Road.

He maintained that this project could prove to be helpful in reducing dependence on the traditional routes of Western countries, adding this project would prove to be multi-purpose including commercially integrating various regions of the world saying that this railway project between Pakistan and China was very attractive for international investors.

Apart from freight vehicles, the system of passenger trains will also be explained, he added.

Pakistan will have to ensure the completion of this grand project with a watchful eye, he mentioned.

Qadir said that this railway infrastructure would prove to be a very effective corridor for China, Pakistan, Iran, Turkey and Western countries.

 

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ML-I groundbreaking by early 2024​

PM seeks reform strategy for Pakistan Railways to maximise benefits of ML-I

Shahbaz Rana
November 16, 2023

It was decided that no fence would be constructed along the ML-I route, which would help save cost. However, it will have a direct impact on the rail speed.

The government on Wednesday announced the groundbreaking of the Mainline-I (ML-I) project by early next year, which would be constructed after a drastic revision in its scope that reduced the estimated cost by one-third to $6.7 billion to make it commercially viable.

The decision was made during a meeting chaired by interim Prime Minister Anwaarul Haq Kakar, who instructed officials to try to perform the groundbreaking before the end of his government’s term on February 8.

The PM sanctioned the revision in the project with directives to present its revised PC-I to the competent forum for approval in the current week.

The meeting was told that modalities for ML-I were in final stages and the project’s groundbreaking would be performed by early next year, according to a statement issued by the PM Office.

The project will be completed in two phases. In the first phase, a 930-kilometre-long rail track will be laid from Karachi to Multan. Also, the railway infrastructure damaged in the 2022 floods will be upgraded as per international standards.

In the next phase, a 796km-long rail track will be laid from Multan to Peshawar in line with requirements of the future. In 2017, Pakistan and China signed a five-year framework agreement for construction of the ML-I project. The framework has now been extended for another five years.

However, the sources said that the groundbreaking would be contingent on firmed-up financing for the project as so far financing details had remained uncertain. A financing plan will be discussed by both sides next month.

The in-principle understanding is that China will provide 85% of the project cost in the shape of loan while Pakistan will arrange the remaining amount.

Sources said that the project cost was being revised to $6.67 billion, a reduction of $3.2 billion, or one-third, through a reduced scope and design aimed at making it commercially viable.

During the visit of PM Kakar, both countries signed an addendum to the ML-I project, which was part of the China-Pakistan Economic Corridor (CPEC), reducing its scope and design.

It was decided that no fence would be constructed along the route, which would help save cost. But it will have a direct impact on the rail speed. In the absence of fencing, the operational rail speed will be 120 km to 140 km per hour but in project design the speed may remain at 160 km, according to the sources.

At an event held this week, Chinese Ambassador Jiang Zaidong outlined three key points for future cooperation: consolidation of the current phase of CPEC, deepening cooperation in agriculture and mining, and improving people’s livelihoods through small but impactful projects.

Jiang highlighted the need for consolidation with the completion of projects like ML-I and Karachi Circular Railway. The ambassador did not mention any road projects. According to PC-I of the ML-I project, approved in November 2022, a 1,733km-long route will be rehabilitated and 482 underpasses, 53 flyovers, 130 biker bridges and 130 stations will be constructed along the route. But this plan will now undergo drastic changes.

PM Kakar desired the “formulation of a comprehensive reform strategy for Pakistan Railways to maximise benefits of the ML-1”, said a press statement.

Pakistan Railways does not have the fiscal muscle to take a $5.8 billion Chinese loan on its books, as the entity remains highly mismanaged like other state-owned enterprises (SOEs).

Caretaker Finance Minister Dr Shamshad Akhtar on Wednesday chaired a meeting of the Cabinet Committee on State Owned Enterprises (CCOSOEs). The State-Owned Enterprises (Ownership and Management) Policy, 2023 was re-submitted to the committee for review, after incorporation of the feedback received from members of the committee.

The committee reviewed the changes incorporated into the draft and recommended a revised policy for approval from the cabinet, according to the Ministry of Finance.

It added that the SOE policy marked a crucial step towards enhancing the governance and operations of state-run companies, aligning with the broader objectives outlined in the State-Owned Enterprises (Governance and Operations) Act, 2023.

The IMF has set a condition to get the policy approved and make a central monitoring unit effective before the end of November.

The CCOSOEs made certain changes in the policy pertaining to the board of directors of SOEs, human resources, code of conduct, fit and proper criteria and public disclosure.

After approval of the policy from the cabinet, Finance Minister Akhtar and Adviser to the PM on Establishment Ahad Cheema will have to resign from some of the boards of public sector enterprises where they sit as members. Their continuation will be a violation of the new policy.