Pakistan Railway Projects.
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Pakistan and China are planning to arrange bidding for $10 billion Mainline-1 — the 1,872km Railway Track along with associated facilities from Karachi to Peshawar — next month (December) and have agreed to have its foreign exchange component of $8.4bn fully financed through Renminbi (RMB) based Chinese loan.
The bidding would be among the leading Chinese companies to be identified and recommended by the Chinese government. During the meeting of Chinese President Xi Jinping and Prime Minister Shehbaz Sharif early this month, both sides agreed to immediately activate their respective teams of technical and financial experts to fast-track progress on the much-delayed project.
The Executive Committee approved the project of the National Economic Council (Ecnec) hours before Prime Minister Sharif’s visit to Beijing at a total cost of $9.85bn subject to the recommendation of cost, technical details by the third party consultant and preferably an equity participation financial model.
The project was part of the original $46bn China-Pakistan Economic Corridor (CPEC) framework but could not take off in more than eight years while most of its sister energy sector portfolio was up and running a few years back. The fresh push comes at a time Beijing has already become the single largest lender to Pakistan with an over $23bn existing debt portfolio.
The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour
On the basis of bidding results, the financial teams of the two countries would then finalise detailed term sheets of the Chinese loan and financing plan to be spread over eight years of project implementation. This will be carried out in a way that the entire loan portfolio is not booked on Islamabad’s accounts and instead is drawn gradually in line with the project requirements.
During these meetings, the two sides broadly agreed that the entire Chinese loan would be in RMB as pressed by Beijing since most of the foreign exchange has to be utilised for machinery and material imports from China.
Pakistan had been insisting on a Chinese loan mix of US dollars and RMB. It had to give in given the project’s criticality, whose funding significance has increased manifold after recent devastating floods damaged a lot of railway infrastructure and is posing risks of a major tragedy. The Chinese loan is expected to be a mix of a Central Chinese Government loan and a sovereign guaranteed loan.
The two sides are aiming to complete negotiations leading to commercial contract signing that would be followed by financial closure by the Chinese contractors with a target to hit groundbreaking latest by end-March 2023. After signing, the project is expected to take about eight years and six months to reach the commercial operations stage, i.e. by September 30, 2031.
To cover these milestones, the two sides have extended the five-year framework (second) agreement signed on May 5, 2017, and expired six months ago. The two governments signed the first framework agreement on April 20, 2015, for a feasibility study for ML-1 upgradation and modernisation.
The project cost was estimated at $9.2bn in February 2020, with a financing share of 10:90 between Pakistan and China. However, this was revised to $6.8bn in August 2020 through cost rationalisation, but the Chinese side remained unconvinced and hence uninterested.
The project costs have been revised again to $9.85bn, including a Chinese financing of $8.4bn (85pc), with the remainder of $1.48bn or 15pc to be financed through local resources. At an exchange rate of Rs200/dollar, the total project cost is Rs1.97 trillion, including a Chinese share of Rs1.675tr and Pakistan’s Rs296bn.
Considered the country’s logistic backbone, the ML-1 starts from Karachi, passes through Kotri/Hyderabad, Rohri, Multan, Lahore, Rawalpindi, and terminates at Peshawar but is now in dilapidated condition at present. Its freight and passenger traffic crawls between 37km per hour and 65km per hour, respectively. The 1,872 km line includes a 55km Taxila-Havelian section and a 91km Lodhran-Khanewal section.
The project also involves the upgradation of existing ML-1, the establishment of a dry port near Havelian Railway station, the upgradation of Railway Academy Lahore and the improvement of facilities and stations in Karachi, Hyderabad and Rohri in Sindh, Multan, Lahore and Rawalpindi in Punjab and Nowshera and Peshawar in Khyber Pakhtunkhwa.
The project aims to increase passenger train speed to up to 160km per hour and that of a freight train to 120km per hour with increased axle load from 22 tonnes to 25 tonnes and to increase the number of freight trains to 171 per day from less than 34.
Under a recent decision of the Executive Committee of the National Economic Council (Ecnec), the ministry of railways would set up a project implementation unit for monitoring and timely implementation. Moreover, a steering committee would be constituted by the minister for railways with representation from all stakeholders to oversee progress.
Meanwhile, the Ministry of Railways will be required to update its Railway Business Plan and Railway Strategic Plan along with a roadmap for the future transformation of existing systems into electric traction systems.
While the project is of utmost importance to Pakistan’s passenger and freight transport, even upon completion, this would remain an island — unable to meet the country’s requirements in isolation.
In the words of the planning commission, “the railway sector in Pakistan does not have the governance framework, institutional framework, management process or regulatory framework to compete in an increasingly challenging 21st century transport market effectively.”
Published in Dawn, The Business and Finance Weekly, November 14th, 2022
Once signed, the ML-1 project may take about eight years to reach the commercial operations stage
The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour.Pakistan and China are planning to arrange bidding for $10 billion Mainline-1 — the 1,872km Railway Track along with associated facilities from Karachi to Peshawar — next month (December) and have agreed to have its foreign exchange component of $8.4bn fully financed through Renminbi (RMB) based Chinese loan.
The bidding would be among the leading Chinese companies to be identified and recommended by the Chinese government. During the meeting of Chinese President Xi Jinping and Prime Minister Shehbaz Sharif early this month, both sides agreed to immediately activate their respective teams of technical and financial experts to fast-track progress on the much-delayed project.
The Executive Committee approved the project of the National Economic Council (Ecnec) hours before Prime Minister Sharif’s visit to Beijing at a total cost of $9.85bn subject to the recommendation of cost, technical details by the third party consultant and preferably an equity participation financial model.
The project was part of the original $46bn China-Pakistan Economic Corridor (CPEC) framework but could not take off in more than eight years while most of its sister energy sector portfolio was up and running a few years back. The fresh push comes at a time Beijing has already become the single largest lender to Pakistan with an over $23bn existing debt portfolio.
The project aims to increase passenger train speed from 65 to 160km per hour and freight train from 37 to 120km per hour
On the basis of bidding results, the financial teams of the two countries would then finalise detailed term sheets of the Chinese loan and financing plan to be spread over eight years of project implementation. This will be carried out in a way that the entire loan portfolio is not booked on Islamabad’s accounts and instead is drawn gradually in line with the project requirements.
During these meetings, the two sides broadly agreed that the entire Chinese loan would be in RMB as pressed by Beijing since most of the foreign exchange has to be utilised for machinery and material imports from China.
Pakistan had been insisting on a Chinese loan mix of US dollars and RMB. It had to give in given the project’s criticality, whose funding significance has increased manifold after recent devastating floods damaged a lot of railway infrastructure and is posing risks of a major tragedy. The Chinese loan is expected to be a mix of a Central Chinese Government loan and a sovereign guaranteed loan.
The two sides are aiming to complete negotiations leading to commercial contract signing that would be followed by financial closure by the Chinese contractors with a target to hit groundbreaking latest by end-March 2023. After signing, the project is expected to take about eight years and six months to reach the commercial operations stage, i.e. by September 30, 2031.
To cover these milestones, the two sides have extended the five-year framework (second) agreement signed on May 5, 2017, and expired six months ago. The two governments signed the first framework agreement on April 20, 2015, for a feasibility study for ML-1 upgradation and modernisation.
The project cost was estimated at $9.2bn in February 2020, with a financing share of 10:90 between Pakistan and China. However, this was revised to $6.8bn in August 2020 through cost rationalisation, but the Chinese side remained unconvinced and hence uninterested.
The project costs have been revised again to $9.85bn, including a Chinese financing of $8.4bn (85pc), with the remainder of $1.48bn or 15pc to be financed through local resources. At an exchange rate of Rs200/dollar, the total project cost is Rs1.97 trillion, including a Chinese share of Rs1.675tr and Pakistan’s Rs296bn.
Considered the country’s logistic backbone, the ML-1 starts from Karachi, passes through Kotri/Hyderabad, Rohri, Multan, Lahore, Rawalpindi, and terminates at Peshawar but is now in dilapidated condition at present. Its freight and passenger traffic crawls between 37km per hour and 65km per hour, respectively. The 1,872 km line includes a 55km Taxila-Havelian section and a 91km Lodhran-Khanewal section.
The project also involves the upgradation of existing ML-1, the establishment of a dry port near Havelian Railway station, the upgradation of Railway Academy Lahore and the improvement of facilities and stations in Karachi, Hyderabad and Rohri in Sindh, Multan, Lahore and Rawalpindi in Punjab and Nowshera and Peshawar in Khyber Pakhtunkhwa.
The project aims to increase passenger train speed to up to 160km per hour and that of a freight train to 120km per hour with increased axle load from 22 tonnes to 25 tonnes and to increase the number of freight trains to 171 per day from less than 34.
Under a recent decision of the Executive Committee of the National Economic Council (Ecnec), the ministry of railways would set up a project implementation unit for monitoring and timely implementation. Moreover, a steering committee would be constituted by the minister for railways with representation from all stakeholders to oversee progress.
Meanwhile, the Ministry of Railways will be required to update its Railway Business Plan and Railway Strategic Plan along with a roadmap for the future transformation of existing systems into electric traction systems.
While the project is of utmost importance to Pakistan’s passenger and freight transport, even upon completion, this would remain an island — unable to meet the country’s requirements in isolation.
In the words of the planning commission, “the railway sector in Pakistan does not have the governance framework, institutional framework, management process or regulatory framework to compete in an increasingly challenging 21st century transport market effectively.”
Published in Dawn, The Business and Finance Weekly, November 14th, 2022
ghazi52
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46 new coaches consignment exported for Pakistan Railways reached Karachi port. Modern bogies arriving in Pakistan are manufactured in China.
46 new coaches consignment exported for Pakistan Railways reached Karachi port. Modern bogies arriving in Pakistan are manufactured in China.
ghazi52
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KARACHI: Pakistan Railways on Sunday received the first 46 out of 230 new high-speed passenger coaches from China.
The new rail coaches reached Karachi port and will be transported to Lahore by the Karachi-Lahore main line-1 by end of this month, the authorities said.
Pakistan and China’s CRRC Tangshan Locomotive & Rolling Stock Company inked an agreement in November 2021 for the supply of 230 high-speed coaches to Pakistan Railways as part of a plan to upgrade and enhance long-distance passenger services in the country.
The PR spokesperson said that passenger rail coaches will include 80 compartments each for economy and air-conditioned class, 30 parlour cars, and 20 vans each for luggage and brake.
Two hundred freight vans will be imported, while 620 of such bogies will be prepared at the factory, he added.
Under $140 million contract (Rs31 billion, approximately), the Chinese company is to manufacture 230 state-of-the-art passenger coaches, of which 46 will be provided as completely built units and the remaining 184 will be manufactured in Pakistan by the PR engineers and technical staff under the supervision of the Chinese experts.
It merits mentioning that the PR is working to upgrade the dilapidated track (ML-1) as the Khanpur-Kotri section is not fit for high-speed train operation.
Pakistan Railways receives first batch of high-speed rail coaches from China
November 28, 2022
KARACHI: Pakistan Railways on Sunday received the first 46 out of 230 new high-speed passenger coaches from China.
The new rail coaches reached Karachi port and will be transported to Lahore by the Karachi-Lahore main line-1 by end of this month, the authorities said.
Pakistan and China’s CRRC Tangshan Locomotive & Rolling Stock Company inked an agreement in November 2021 for the supply of 230 high-speed coaches to Pakistan Railways as part of a plan to upgrade and enhance long-distance passenger services in the country.
The PR spokesperson said that passenger rail coaches will include 80 compartments each for economy and air-conditioned class, 30 parlour cars, and 20 vans each for luggage and brake.
Two hundred freight vans will be imported, while 620 of such bogies will be prepared at the factory, he added.
Under $140 million contract (Rs31 billion, approximately), the Chinese company is to manufacture 230 state-of-the-art passenger coaches, of which 46 will be provided as completely built units and the remaining 184 will be manufactured in Pakistan by the PR engineers and technical staff under the supervision of the Chinese experts.
It merits mentioning that the PR is working to upgrade the dilapidated track (ML-1) as the Khanpur-Kotri section is not fit for high-speed train operation.
FuturePAF
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How long do trains wait at each station? How fast are baggage cars loaded and unloaded at each station?,.,.
Pakistan Railways receives first batch of high-speed rail coaches from China
November 28, 2022
KARACHI: Pakistan Railways on Sunday received the first 46 out of 230 new high-speed passenger coaches from China.
The new rail coaches reached Karachi port and will be transported to Lahore by the Karachi-Lahore main line-1 by end of this month, the authorities said.
Pakistan and China’s CRRC Tangshan Locomotive & Rolling Stock Company inked an agreement in November 2021 for the supply of 230 high-speed coaches to Pakistan Railways as part of a plan to upgrade and enhance long-distance passenger services in the country.
The PR spokesperson said that passenger rail coaches will include 80 compartments each for economy and air-conditioned class, 30 parlour cars, and 20 vans each for luggage and brake.
Two hundred freight vans will be imported, while 620 of such bogies will be prepared at the factory, he added.
Under $140 million contract (Rs31 billion, approximately), the Chinese company is to manufacture 230 state-of-the-art passenger coaches, of which 46 will be provided as completely built units and the remaining 184 will be manufactured in Pakistan by the PR engineers and technical staff under the supervision of the Chinese experts.
It merits mentioning that the PR is working to upgrade the dilapidated track (ML-1) as the Khanpur-Kotri section is not fit for high-speed train operation.
A very good walkthrough and review. These stations should be rebuild so they can start generating more revenue as shopping centers and hotels, which can fund railway operations and maintenance.
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ghazi52
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The government has decided to link Thar coal and Port Qasim (PQ) with Pakistan Railways network through Rs 58.240 billion project in order to provide bulk transportation facilities as per requirement of the economy.
The project comprises construction of 105-kilometer long track including 24.58-kilometer loop-line new single line railway track infrastructure from Thar Coal mines to new Chhor Station and;(ii) construction of 18-kilometer long new double line track (9-Kilometer on each side), includes 4.20-kilometer long loop-lines, from Bin Qasim railway station to Port Qasim.
The construction of seven railway stations along the railway route with 14 platforms are in the scope of the work of the project, and of seven stations, two major stations would be established at Thar coal mines and new Chhor station, respectively. And five intermediate stations would be established between two major stations.
The coal demand in Pakistan is mainly driven by two major sectors, i.e., Power Sector and Cement industry. The demand of coal will further increase due to upcoming capacity additions in both Power and Cement sector.
The government has decided to link Thar coal and Port Qasim (PQ) with Pakistan Railways network through Rs 58.240 billion project in order to provide bulk transportation facilities as per requirement of the economy.
The project comprises construction of 105-kilometer long track including 24.58-kilometer loop-line new single line railway track infrastructure from Thar Coal mines to new Chhor Station and;(ii) construction of 18-kilometer long new double line track (9-Kilometer on each side), includes 4.20-kilometer long loop-lines, from Bin Qasim railway station to Port Qasim.
The construction of seven railway stations along the railway route with 14 platforms are in the scope of the work of the project, and of seven stations, two major stations would be established at Thar coal mines and new Chhor station, respectively. And five intermediate stations would be established between two major stations.
The coal demand in Pakistan is mainly driven by two major sectors, i.e., Power Sector and Cement industry. The demand of coal will further increase due to upcoming capacity additions in both Power and Cement sector.
FuturePAF
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Upgrading of Mainline 1, if done in the Chinese model, may look like look how Kenyan Standard gauge railway in terms of how the stations will be re-designed and operated as well as how service is probably done on board the train. The Pakistani trains will be faster at a top speed of 160 kmph compared to the Kenyan trains at a top speed of 120 kmph.
Except in Pakistan’s case, a lot of the stations have been recently upgraded, so changes will probably be around ticketing, food service on board, security screening, etc.
Also, building out metro-bus or metro-train connections to the railway stations will ease travel and the station to each city and its airports and bus terminals for ease and affordability of travel, including passengers not paying high prices for taxis.
Btw, there should perhaps be an app that has a QR code so tourist don’t have to fill out forms at each place they go to, including checking in at hotels.
What Pakistan can improve on the SGR, if the trains run on time, is ending the cooking on board and shifting the production of food to each station along the route, with passengers order food from an attendant and having that food be delivered on board when the train passes through the station. It will be a good way to also “up-sell” passengers for better meals and allow the railways to get some of the profit from the food, while maximizing the number of passengers they carry.
Except in Pakistan’s case, a lot of the stations have been recently upgraded, so changes will probably be around ticketing, food service on board, security screening, etc.
Also, building out metro-bus or metro-train connections to the railway stations will ease travel and the station to each city and its airports and bus terminals for ease and affordability of travel, including passengers not paying high prices for taxis.
Btw, there should perhaps be an app that has a QR code so tourist don’t have to fill out forms at each place they go to, including checking in at hotels.
What Pakistan can improve on the SGR, if the trains run on time, is ending the cooking on board and shifting the production of food to each station along the route, with passengers order food from an attendant and having that food be delivered on board when the train passes through the station. It will be a good way to also “up-sell” passengers for better meals and allow the railways to get some of the profit from the food, while maximizing the number of passengers they carry.
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Kenyan model is turned out to be a white elephant. i travelled on it a few times; it is pretty much empty. There was no incentive for the goods to be transported; then a knee jerk reaction to clamp down on trucking so that people would use the train for transportation. SGR has been a disaster for entire region and saddled it with debt.
Here in Tanzania, we are doing the same - instead of upgrading the existing lines - where there was slack capacity, they decided to put a lot of billions into SGR - the concept is good but from ROI and getting all on board is a difficult preposition.
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That’s why many countries give the railways land around the stations to lease out the land to develop or directly rent out hotels, apartments, restaurants, dry ports, special economic zones, etc. as in Japan. These business subsidies the railways. The railways are always loss leaders, not intended to turn a profit, unless overcoming a major transportation bottleneck.
Perhaps if the railway extended to West Africa, it could outcompete trucking, so that goods and time sensitive items such as food could pay for rail shipping or trucking.
What is the state of road transport between East Africa (Kenya and Tanzania) and West Africa?
I agree that the nation shouldn’t have to bear the costs of the railway, but a private company, that has to convince customers to use their services over trucking, like a private freight railway or publicly traded railway company. The only problem could be that these investors may also not see the ROI within the desired time frame and decide not to invest. That is why government is usually have to invest in the initial section and find a way to make it profitable to get investor interest. Isn’t their a rail safari in Kenya? What are the unique business ventures in Tanzania to try to make the line profitable?
Rail transport is non existent; there is now attempt to establish SGR for entire great lakes - connecting Rwanda/Uganda/Kenya/Tanzania. Due to mismanagement and corruption; there was just no interest given to existing railways e.g. Tazara which links Tanzania to Zambia. Once we can upgrade and establish proper values from goods/passenger, there is a lot of opportunity.
You must remember, the distance and geographical not to mention political nonsense we have between west africa (francophone - who are completely controlled via Paris) and anglophone countries; French will screw any attempt to improve economic situation of their former colonies unless it is from Paris - which means let the status quo remain; this will change as we are seeing in Mali which kicked out the French; similarly in Rwanda where they have abolished French totally and joined the rest of the east african community.
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Couple things I noticed here. The coaches don't seem air conditioned. I only see ugly fans sticking out. I wonder if that's just for economy class or first class as well. Secondly, its written on these coaches that its capable of running at speeds of upto 160km/h. Currently that's not possible and it only hints that these same coaches will be used once the multi-billion dollar upgrade of tracks are completed which frankly speaking is pretty disappointing because I was hoping they would convert the tracks to standard gauge and electrify the whole system as part of the upgrade
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What’s the situation in Chad? If a train can go from Sudan through Chad to Nigeria, it can bypass lost of the Francophone countries. The Ethiopian Railway can be then connected with Sudan (it’s already connected with Djibouti and its port) and via Ethiopia go to Kenya and Tanzania.
The coaches, the stations, the amenities can all be rolled out first to try to recoup that investment, while when the money for the tracks comes in, it can be built. It’s fits and starts to try to get things done without good economic or political management.
ghazi52
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Pakistan Railways (PR) has been talking about its plans to introduce new, high-tech, and high-speed passenger bogies, but there’s no point in importing them if they don’t even work.
The latest report from Express News reveals that these bogies were imported from China at a cost of $149 million and are unable to run.
The brakes on these bogies have a critical mechanical fault. Due to the lack of pressure, the brakes cannot function properly at any speed.
The report adds that the government had sent 88 Pakistan Railways (PR) officers to China to inspect the bogies. Why the department sent a small army to inspect these trains is anybody’s guess. However, despite a two-week visit, none could point out this critical mechanical fault.
It also stated that each officer that went to China, received $100 per day for their duties, which adds up to $123,200 or nearly Rs. 2.79 crore based on the current exchange rate. Keep in mind this is just a napkin math figure, the actual expenses may be much higher
Pakistan Railways (PR) has been talking about its plans to introduce new, high-tech, and high-speed passenger bogies, but there’s no point in importing them if they don’t even work.
The latest report from Express News reveals that these bogies were imported from China at a cost of $149 million and are unable to run.
The brakes on these bogies have a critical mechanical fault. Due to the lack of pressure, the brakes cannot function properly at any speed.
The report adds that the government had sent 88 Pakistan Railways (PR) officers to China to inspect the bogies. Why the department sent a small army to inspect these trains is anybody’s guess. However, despite a two-week visit, none could point out this critical mechanical fault.
It also stated that each officer that went to China, received $100 per day for their duties, which adds up to $123,200 or nearly Rs. 2.79 crore based on the current exchange rate. Keep in mind this is just a napkin math figure, the actual expenses may be much higher
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