Infrastructure and Transport News

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'KCR system to be revived by 2011' ​

ISLAMABAD (May 13 2008): Pakistan Railways (PR) has decided to revive Karachi Circular Railway System (KCR) by 2011, an official of the Ministry of Railways said here. The official said that Karachi Urban Transport Corporation (KUTC) would be incharge of the project being undertaken with the assistance of Japanese company JICA, which he added would make feasibility study of the project.

The Government of Japan would provide a soft loan of 872 million dollar, which would be payable in 40 years. The project would be executed in three years on Japanese and European style. The 50 km KCR will have 21 underpasses and overhead bridges. The official said, around seven lakh passengers of 23 different stations of the city would get benefit from the project daily.

He said that under the project 246 trains would ply in the city adding that each train had the capacity of carrying 1,236 passengers. "The track for these trains will be of international standard and they will be available at each terminal after three minutes," he said.

The official said it had also been decided to launch this project on turnkey basis. The contractors would operate KCR initially for two years and after that it would be handed over to Pakistan Railways, he added. Besides maintenance of KCR, the contractor would be responsible to train Pakistan Railways' staff, he added. He said that the Sindh police would provide security to the foreign engineers and other related persons, deputed to commission this project.

Business Recorder [Pakistan's First Financial Daily]

 

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PIA to induct 10 aircraft in 2 years ​

MD says no employee will be laid off​

Wednesday, May 14, 2008

KARACHI: Pakistan International Airlines (PIA) would induct 10 aircraft in the next two years to enhance revenue and ward off the need to retrench employees for saving runaway costs, new Managing Director Aijaz Haroon said on Tuesday.

He also announced rescinding the decision of the previous management to ground eight B-747 aircraft due to excessive cost incurred on the particular model, saying the airline could not afford to lose capacity at present.

“We know they are fuel guzzlers,” he said referring to the grounded aircraft. “But we have to use whatever available capacity at hand. There is no other choice.”

Speaking at a press conference here at the PIA head office, he said it had not yet been decided which aircraft were to be inducted and neither could elaborate on the sources for funding the purchase or lease at a time when the airline was faced with accumulated losses of Rs42 billion.

These aircraft are in addition to seven A320-200 aircraft, which the PIA will start receiving from next year in order to replace the aging fleet of Boeing 737-300. A letter of intent to this effect has already been signed for the lease of the aircraft with Aviation Lease and Finance Company (ALAFCO) of Kuwait.

Despite having no previous experience of heading an organisation unlike his experienced predecessors, Haroon, who is a B-777 pilot, was confident he would be able to steer PIA out of financial crisis.

“I have served this airline for too long,” he said, recalling his own success at the central control and airport services departments. “Three managing directors have failed and I don’t want to fail.”

He criticised the people who were suggesting the PIA to stop serving meals on domestic routes to cut costs, saying they had no aviation background. He, however, did not offer any alternative.

But Haroon minced no word in saying that the national flag carrier would not be privatised and none from ‘common employees’ would be retrenched.

The PIA, suffering from annual losses exceeding Rs13 billion, sank deeper into the quagmire of financial losses during the past 15 months as the top slot of managing director saw three changes and rising fuel prices exacerbated the operational cost. With B-747 included, the airline now has a fleet of 42 aircraft.

PIA to induct 10 aircraft in 2 years

 

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KPT achieves docking 12m draft ship ​

KARACHI: Karachi Port Trust (KPT) has become the fist port of the country to accommodate 12 meter draft ships. KPT safely docked 4,400 TEUs container vessel MV “Hyundai Admirl”, 270 meter long at Karachi International Container Terminal (KICT) West Wharf.

According to a press release on Tuesday, Karachi port achieved this milestone by dredging its approach channel and berthing basin on war footings by using fleet consisting of state of art dredgers. To achieve the required draft in a short period was a challenging job and around 1.5 million cubic meters of slit was removed in a period of one month. All the dredgers worked around the clock to achieve this record target well before time.

Daily Times - Leading News Resource of Pakistan

 

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Infrastructure sector: Romanians, Malaysians keen to invest ​

ISLAMABAD (May 14 2008): Romanian and Malaysian investors have expressed interest in investment opportunities in infrastructure sector in Pakistan under the Public Private Partnership (PPP) modality. A delegation from Romania currently visiting Pakistan has evinced interest in participating in the energy and construction industries.

The Romanian delegation also wants to evaluate potential for bolstering trade between Romania and Pakistan and opportunities in local manufacturing. Briefing the delegation the CEO Infrastructure Project Development Facility (IPDF), Aijaz Abmad outlined the government policy on PPP and the opportunities available in the infrastructure development in the country.

IPIDF also facilitated the meetings of the delegation with the relevant agencies and organisations such as Board of Investment (BOl), Private Power Infrastructure Board (PPIB), Overseas Employment Corporation and the local chamber of commerce. A Malaysian delegation led by Wan Mohamed Yaacob Bin Dato' Wan Salaidin, Executive Director, DWITASIK SDN BHD, was briefed on the investment opportunities in Pakistan at a presentation arranged at BOI.

Malaysian delegation expressed keen interest in the PPP programme in Pakistan and the opportunities available for the Malaysian investors in the country. Both the delegations appreciated the government policy of Public Private Partnership and indicated that they are keen to participate in the investment opportunities in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Flight information display system at Peshawar airport ​

Thursday, May 15, 2008

KARACHI: The Civil Aviation Authority (CAA) has installed an indigenously manufactured Flight Information Display System (FIDS) at the Peshawar Airport.

It has been developed by the CAA in collaboration with the National Engineering and Scientific Commission (NESCOM), said a CAA handout issued here on Wednesday.

The system would provide information about incoming and outgoing flights on nine plasma screens and four LED board to the passengers and visitors.

The system also has the facility of digital signage and infotainment. The digital signage would cater to the requirements of various companies to display their advertisements, where as the space for the infotainment would be utilised for the news and weather updates.

The facility of digital signage would generate reasonable amount of revenue for the CAA.

Such FIDSs have already been installed at the Karachi, Lahore and Islamabad airports by German and Italian companies.

However, to save valuable foreign exchange, the FIDS was developed, which is much cheaper than the one installed by the foreign companies.

Flight information display system at Peshawar airport

 

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Dubai Ports World building Rs 10 billion container terminal at PQ ​

KARACHI (May 17 2008): The Dubai Ports (DP) World is constructing a new container terminal with a draft capacity to accommodate mother ships at Port Qasim at an estimated cost of 10 billion rupees. A portion of the terminal would be financed by a banking syndicate under the Islamic finance facility.

According to sources, the international port developer was building the "QICT-II" next to Qasim International Container Terminal (QICT) under an agreement it had signed with the Port Qasim Authority in 2006.

On May 15, a tripartite banking syndicate comprising National Bank of Pakistan, Dubai Islamic Bank Pakistan Limited and Standard Chartered Bank Pakistan Limited inked a deal with the QICT, a company of DP World, for Rs 5 billion Musharika finance facility to expand its infrastructure.

DP World has started work on the project, which would be completed in three phases with the first phase to be completed by 2010, a QICT official told Business Recorder on Friday. He said the new terminal, which would be made operational by the end of the first phase in 2010, would have a capacity to handle around 0.3 million TEUs.

Currently, the cargo handling capacity of the QICT stands at 0.8 million TEUs, while total number of containers handled in the country stands at 1.8 million TEUs.

The official said the terminal would be developed on built-operate-and-transfer (BOT) basis with a 21-year transfer period adding that the second phase of construction would be completed by 2013.

The QICT official said the terminal would have a 13.5-meters draft and would have the capability to accommodate the mother vessels. However, a PQA official confirming visit of mother vessels to the new terminal, said the draft issue would be decided by the authority after undertaking capital dredging.

He recalled that a five-member delegation had visited Dubai sometimes in the second quarter of 2006 to negotiate the Rs 10 billion project with DP World. The two sides after discussing all modalities had singed an agreement in August 2006 in Islamabad.

Business Recorder [Pakistan's First Financial Daily]

 

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Country to have Euro-2 standards for vehicles by 2009 ​

ISLAMABAD (May 28 2008): The Environment Ministry has planned to introduce Euro-2 standards for vehicles in the country to make the environment cleaner and people-friendly. Sources at the Ministry said on Tuesday that petrol vehicles in the country would start observing these standards from January 2009, although Euro standards for diesel vehicles is still a far cry.

The Automotive Parts Manufacturing Association has already consented to observe Euro-2 standards from January next year, sources told APP. "Although our diesel vehicles also need to abide by Euro standards and convert to clean fuel, but certain technicalities are still hampering this process," they said. "The Association has agreed to observe Euro standards, but has demanded provision of Euro fuel for conversion of the vehicles to these standards," they added.

But the oil refineries foresee massive investment in introducing these standards, sources said, and added that Environment Minister Hamidullah Jan Afridi has convened a meeting of stakeholders to discuss this issue. The government, under its 'Clean Air Programme', has installed air pollution monitoring system in Islamabad and all provincial capitals. Centralised data is gathered daily at the laboratory set up in Islamabad.

It is also consulting with the petroleum companies to bring down sulphur use, a major air pollutant and emission of gases resulting in climate change. Measures are also on way to introduce clean fuels, regular inspection of vehicles, installation of pollution control devices at industrial units and discourage emission of GHGs.

Pollution of suspended particulate matters in the air, during recent years, has exceeded four to five times the WHO prescribed standards. "Particulate matters are the major pollutants and hazardous for the environment and human health," experts note with concern.

"Most of the time, the particulate matter density rises to more than 100 microgram per cubic metre instead of 35," say the Ministry officials managing the pollution data. Meanwhile, leakage of methane from CNG station is also one of the polluters, and a contributor to climate change. Sources said that the government is also encouraging conversion of the vehicles using petrol and diesel to compressed natural gas (CNG).

Business Recorder [Pakistan's First Financial Daily]

 

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PIA’s three B-747 aircraft resume flights​

KARACHI: Pakistan Inter-national Airlines (PIA) has resumed operating its three jumbo B-747 fleets for domestic and Umra flights recently after standing 70-days idle, officials told Daily Times.

Officials told the three aircraft started providing passengers services on domestic and international routes during last couple of days subsequently after up-gradation, refurbishment and refresher course of its all crew members.

The remaining other two B747 aircraft are being repaired by the engineers and they will have to be inspected by airline regulator, Civil Aviation Authority (CAA), before rejoining the fleet. Officials added that these two aircraft will also be inspected during testing flights in this week and one of them might be ready to operate at the end of the week. These were grounded on March 19 by the previous management and it also terminated engineers who were designated to these aircraft. But, the new Managing Director has reverted this decision recently and restored all the aircraft and engineers as well. The national flag carrier is now spending on these aircraft by conducting testing flights and refresher courses for its crew members as per rules of CAA.

PIA’s six Boeing 747-367 have a capability to carry 433 passenger and two other Boeing 747-240 Combis have capacity of 264 passengers and 30 tonnes main deck cargo capacity. However, the new management has decided to utilise five of them for the current Umra and upcoming Hajj operation avoiding chartering aircraft from other foreign airlines this year. The B-747 aircraft are 12 to 15 year old aircraft and consume 27 percent more fuel as compare to new aircraft of B-777 series but, it has capacity to carry more passengers than B-777.

Daily Times - Leading News Resource of Pakistan

 

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Rs 107 billion to be spent on construction of six new highways, expressways: National Assembly informed ​

ISLAMABAD (June 05 2008): The National Assembly was informed on Wednesday that the federal government has planned to construct six new highways/expressways in addition to conversion of Karachi-Hyderabad Super Highway into motorway costing Rs 107 billion till 2013.

Through a written answer provided by the Ministry of Communication in reply to a question by MNA Mohammad Afzal Khokhar, it said that the new highways/expressways would be completed till 2013.

Faisalabad-Khanewal, E-4 will be completed at a cost of Rs 33.10 billion, Wazirabad-Pindi Bhattian, E-3 Rs 15 billion, Khanewal-Lodhran E-5 Rs 15, Peshawar-Turkham Rs 13 billion, Karachi-Hyderabad highway at Rs 8 billion, Hassanabadal-Havelian Rs 10 billion and Havelian-Mansehra highway Rs 12 billion.

Besides, the Ministry of Communication also informed the House that Rs 1000 million were allocated in PSDP 2007-08 for Indus Highway project and Rs 700 million released to NHA of which Rs 161.750 million has been incurred so far.

To a question of PPP lawmaker Yasmin Rehman, the in-charge minister for Petroleum and Natural Resources told the House that the annual requirement of petrol during 2007-08 is estimated at 1,450,000 tons, diesel 8,000,000 tons and Hi-Octane 10,000 million tons. During 2007-08, the annual domestic production of petrol is estimated at 1,328,00 tons, diesel 3,010,00 tons and Hi-Octane 10,000 tons.

The total quantity of imported petrol and diesel during 2007-08 is 122,000 tons and 490,000 tons, respectively. The Minister of Petroleum also informed the House that the provincial government of Sindh has developed six blocks in the Thar coalfield, which has the potential to cater to the coal requirement of 1000MW power plant.

To a question, the ministry opined that the total coal deposits of Pakistan are about 185 billion tons including 175.5 billion tons in Thar coalfield, Sindh. To a written question, the Ministry of Local Government and Rural Development informed the House that during 2006-08, almost Rs 3,801.464 million were allocated for 5,637 development projects under Khushhal Pakistan Programme-I scheme.

Business Recorder [Pakistan's First Financial Daily]

 

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Plans afoot for linking airport with city through KCR ​

KARACHI (June 06 2008): Plans are afoot for linking Karachi airport with the city through Karachi Circular Railway. The plan has been incorporated in the Karachi Circular Railway project, which is now being revived under Karachi Urban Transport Corporation (KUTC).

Expression of interest (EoI) has been invited for environmental impact assessment study for revival of Karachi Circular Railway project. The terms of reference for special assistance for the project formulation (SAPROF) study has been signed, study of which would be completed by end of the year.

Revalidation of Japan External Trade Organisation (Jetro) report has been completed and executive summary of the final report has been furnished by the consultants - Scott Wilson Railways of UK and Umar Munshi Associates, Karachi. In a meeting held on May 29 at the Prime Minister Secretariat, it was decided that PC-I of the project to be furnished immediately and project would be sponsored by the Ministry of Railways.

The Karachi Urban Transport Corporation (KUTC) has on its board of directors senior officials of Pakistan Railways, government Of Sindh and City District Government Karachi (CDGK). It may be mentioned here that the KCR was opened for traffic in two phases in 1964 and 1970.

The KCR originates from Drigh Road station on main line and, after crossing Sharea Faisal short of Karachi airport, it passes through populated areas of Gulistan-e-Johar, Gulshan-e-Iqbal, Liaquatabad, Nazimabad, Site, Baldia, Lyari, Kharadar, Mithadar and finally touches Karachi City Station. It has 16 stations, 22 level crossings in its 29.32-kilometre route length.

The KCR remained functional for almost 15 years, but gradually, it lost charm due to lack of investment in infrastructure and rolling stock, resulting in increase in travel time, non-punctuality etc. This led to gradual reduction in number of trains and eventually was closed for traffic in January 2000.

At a meeting, chaired by the Prime Minister on December 6, 2004, it was, inter alia, decided that Karachi Circular Railway (KCR) be revived as modern commuter system for the citizens of Karachi and Karachi Urban Transport Corporation (KUTC) be set up for the implementation and operation of the KCR with Pakistan Railways, government of Sindh and City District Government Karachi (CDGK) as stake holders.

The Japanese Ministry of Economy, Trade and Industry had commissioned a study on revival of Karachi Circular Railway as modern commuter system under the aegis of Japan External Trade Organisation (Jetro). The Jetro report has recommended dualisation of KCR loop (29.32 kilometere) and provision of two dedicated tracks along mainline.

The report also recommended that the major cities around the world have dedicated railways for airport that connect their airports with the city centres. Therefore, the KCR should also be linked to the airport so as to provide facility to commuters for travelling to and from various city centres to the airport.

The proposed rail link with terminal station at airport with route length of six kilometres, including 1,870-metre elevated, 830-metre underground and 3,260-metre surface track. The railway station will be provided in the vicinity of present car parking area.

The link to Karachi airport will facilitate the passengers to commute from various centres of the city in shortest possible time, say a passenger will be able to reach from and to Karachi Airport from Liaquatabad in about 25 minutes.

Three trains per hour will be operating to Karachi Airport and the track will have the capacity to increase the number of trains, depending on the increase of passengers, the cost of rail link, including infrastructure, rolling stock etc will be 156 million dollars.

Business Recorder [Pakistan's First Financial Daily]

 

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200km-long roads being built in Sialkot district ​

SIALKOT (June 06 2008): City District Government Sialkot (CDGS) is spending more than Rs 40 crore during current fiscal period on the construction of 200 km long new roads in Sialkot, Pasrur, Daska and Sambrial tehsils of the district. The work on the project would be started soon in all tehsil headquarters of the district.

Official sources told Business Recorder here on Thursday that the construction of 93 roads had already been completed during the past two years by the district government at a cost of more than Rs 35.60 crore. In addition, renovation and rehabilitation of 85 roads at a cost of Rs 23 crore had also been completed during the same period for ensuring speedy and better travelling facilities to the masses of the district.

The district government had concentrated its special attention on the improvement of Allama Iqbal hospital and during current fiscal period Rs 1.64 crore would be spent on the purchase of new hospital machinery for extending modern treatment facilities to the patients.

Similarly, more than Rs 5.88 crore would be utilised on the purchase of medicines for government hospitals of Sialkot district. Besides, Rs 2.50 crore would be spent on the repair and construction of government hospitals and dispensaries in the district, sources added.

Business Recorder [Pakistan's First Financial Daily]

 

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Airblue cuts meal, travel agents to save cost ​

Sunday, June 08, 2008

KARACHI: Airblue has decided to replace regular meals on flights with cheap sandwiches and shift sales to internet mode in a bid to cut soaring fuel cost, a top airline official told The News on Saturday.

Stopping full meals, which cost Rs500 per head, and introduction of Rs100 sandwich dish will help the private airline save around Rs100 million a month, said Syed Nasir Ali, Airblue Managing Director.

“Easiest thing to do is to increase fares and punish passengers,” he said about possible ways to overcome fuel-related cost. “But ultimately that will be negative for the whole industry. That will shrink market.”

The global aviation industry is going through tumultuous times as oil soars past $138 per barrel, forcing airlines to rationalise routes, stop use of fuel-guzzling aircraft and add different charges to air tickets.

Any abrupt hike in fares will mean a businessman who travels three times a week will reduce trips and a family planning vacation this summer will prefer using train, Nasir said, warning the impact of high fares has started costing airlines their passengers.

But another cost-cutting endeavour of the airline has faced stiff resistance from travel agents. In a bold move, the airline slashed commission of its travel agents by 2-3 per cent, drawing immediate condemnation from the Travel Agents Association of Pakistan (TAAP).

Muhammad Hanif, a TAAP member, said the airline should let the high cost reflect in fares on basis of which travel agents earn their commission. “They want us to earn just Rs90 on sale of Rs16,000 ticket.”

Around 350 members of TAAP have stopped selling tickets for Airblue, which has now decided to directly approach its customers and through other travel agents who have not agreed with the association’s stand.

“We still want to work with them. We don’t want any confrontation,” Nasir said. “But all options are open. We will sell tickets through internet on special discount.”

Meanwhile, the Civil Aviation Authority (CAA) is keeping itself away from the troubles the airlines are facing. “This is a global phenomenon. According to IATA, airlines will record a loss of $2.5 billion against earlier projections of a profit of $6bn,” said Farooq Rehmatullah, CAA Director General.

He said private airlines being low cost and efficient could manage the hike in fuel cost. “CAA cannot interfere; it can only regulate,” he said, adding: “I am not aware if they (airlines) are in any crisis.”

On its part, state-owned Pakistan International Airlines (PIA) is looking at the option of increasing fuel surcharge, a senior official of the airline said.

However, Aijaz Haroon, Managing Director of the airline, could not explain what his management intends to do to curtail cost. “Oil prices are fluctuating, just few days back it was $120 per barrel,” he said and when insisted that he dilate on the subject, added: “I don’t want to ‘repeat the measures’ we have already announced.”

Airblue cuts meal, travel agents to save cost

 

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Reconstructing KPT berths 10-14 to cost Rs5.5bn ​

Saturday, June 14, 2008

KARACHI: Ports & Shipping Secretary Saleem Khan visited the Karachi Port on Thursday to review the progress made by the KPT on the reconstruction of berths, a press release said.

The secretary was briefed about the berth at East Wharf that was reconstructed by Korean company Ssang Yong.

He was informed that the detailed design of berths 10-14 has cost Rs70 million and their reconstruction would cost Rs5.5 billion. Two of these berths will be ready by next June and the remaining three by March 2010.

He was further informed that after reconstruction the berths will have 16 metres’ depth which would enable the port to handle larger vessels.

The secretary was briefed about the Pakistan Deep Water Container Port at Keamari Groyne and other projects under way along with those that the KPT has already accomplished.

He congratulated Nasreen Haque for becoming the first woman chairperson of the KPT.

The secretary along with the chairperson and other officials inspected berths 10-14 at East Wharf and later the entire port.

Reconstructing KPT berths 10-14 to cost Rs5.5bn

 

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Nasreen aims to make KPT transshipment hub ​

Saturday, June 14, 2008

KARACHI: Karachi Port Trust Chairman Nasreen Haq, after assuming the charge, shared her views and vision with the KPT management and workers and said she believed in team work for achieving milestones.

She said her previous expertise and achievements in the road, rail and sea transportation sector would enable the port to make effective use of these linkages with the KPT, which would ultimately benefit in reducing cargo congestions, stated a press release.

The KPT chairperson mentioned that her aim would be to convert the port into a transshipment hub of the region and to create a win-win situation for the port and its users.

She said her focus would also be on the fishing community and the KPT would look into the problems faced by them and try to resolve them.

She said her aim would be to benefit the workers and officers of KPT and vowed to further reduce the turnaround time of vessels calling at the Karachi Port.

The inter-modal connectivity of the port with the hinterland would be the top priority. The trade corridor for Afghan Transit Trade would greatly benefit from KPT connectivity as envisioned, she added.

Nasreen aims to make KPT transshipment hub

 

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PIA working on strategic plans​

KARACHI: Pakistan Internati-onal Airlines (PIA) management is working on the strategic plan that will be presented to the Board of Directors in the near future.

In 314th meeting Friday, the Board reviewed the commercial aviation environment of PIA and the various issues confronting the national carrier. Chairman PIA, Mohammad Aijaz Haroon briefed the Board on the short term and long term measures being taken by the management for the revival of PIA.

Board hoped that with the support of federal government, PIA would turn around into a profitable organization. Ch Ahmed Mukhtar, Syed Mohammad Fazal Agha and additional secretary, ministry of defence also attended the meeting.

Daily Times - Leading News Resource of Pakistan