Pakistan Railways privatization opposed

[INDIC]

Making Railways pure private is a problem
As in South Asia Railways are a necessity
In Europe and US railways are mainly used as a leisure

But Public-private partnership could do wonders
Expressways in India , New Airports , Infra projects like the Bandra Worli Sealink

Privatizing railways will ensure that railway line won't reach far flung thinly populated areas.

 

[Zeeshan360]

Privatizing railways will ensure that railway line won't reach far flung thinly populated areas.

Yeah that's the problem
Companies would just think of profits and keep only the lines connecting major cities active
For e.g. The line from Lahore Karachi would be kept active and line from Karachi to some town in Baluchistan will be closed

While on the other side government would make sure railways reaches everywhere

But you could have a public private partnership where private company invests in railway tracks/trains/stations and then earn by getting a percentage earned from selling tickets

 

[INDIAISM]

Now Railway is for common man
Bur After Privatization it will become
common man's Dream.....Privatization of railway in west is good because common man their can affort to pay high price for railway ticket As per capita Gdp in west is around 25k Dollars on the other had per capita Gdp in sub continent is around 1.8K dollars....You can yourself see the difference between them and us......

 

[livingdead]

Railways should never be privatized, it needs long term investment which only govt can do.
PIA can be privatized though.

 

[BATMAN]

Karachi—Representatives of Pakistan Railways (PR)’s major unions addressing at a seminar on ‘Pakistan Railways: Problems, Planning & Strategy’ opposed its privatization & demanded restructuring of the management by inducting professional managers, providing funds for repairs & purchase of locomotive & making railway profitable through transportation of cargo in the country. Planning Commission and Pakistan Institute of Labor & Research (PILER) jointly organized the consultation session here.

Trade union leaders reiterating that PR, that provided service to millions of people & employed hundreds of thousands, termed the political interference in PR affairs, lack of accountability & uncontrolled corruption by bureaucracy as major factors of the its failure. Maintaining that new legislation should to be made according to ILO conventions they said that the act enacted in 1890 needed revision through parliament. They demanded that Trade Unions should be given representation at the board and management levels. Suggesting writing off all the loans & interest against PR & appointment of professionals, they informed that the companies who were handed over the Business Train and Shalimar Express defaulted. Trade unionists further pointed out that PR had acquired workshops/other facilities - as well as trained manpower - for manufacturing/overhauling of engines, (making coaches, sleepers & tracks) which should be utilized.

Senior economist Dr. Kaiser Bengali said that PR needed to focus on provision of facilities to common people. Holding that its privatization would be quite different from the privatization of other state owned organizations, he said application of Chinese model of creating a competition. Maintaining that track and other facilities should be owned by the state, Kaiser Bengali suggested that private sector might be allowed to run their own trains besides PR’s. Executive Director PILER Karamat Ali stressed on safeguarding the interest of workers and passengers in future planning. Tanveer Hussain Bukhari from Planning Commission and Amer Zafar Durrani from World Bank also spoke on the occasion.

Pakistan Railways privatization opposed

Best way is to change Zardari.

 

[Alfa-Fighter]

That is the problem.
I agree with Chinese Tiger. The corporations will eat people up. This is sort of like a pure Capitalistic system...

Thanks not , Remember China High Speed railway accident ? china censor all news related to train crash, milk scandal.....

 

[AZADPAKISTAN2009]

What we need is to implement CHINESE SYSTEM corporate head is found to be corrupt they hang them

That is what Pakistani understand ... a kick on the buttocks

 

[AZADPAKISTAN2009]

Railways does not need Privitization but it needs to let go of its 85,000 Employees

To have about 10,000 Workers

A company with 60 locomotives out of 500 total running with -ve income balance can't justify having
85,000 workers



60 Trains need 85,000 works ? It makes not sense one would expect that with so many workers passengers would be served a mango shake and a railway employee would give them a massage ...

But these extra workers are just waiting to collect Bail out checks

Government goves 10 dollar , Railways release their budget of 15 dollars .. so every thing government gives 90% goes in paying salaries and 10% goes to repairs


The other day Pakistan Government released 35 Billion rupees for Railways

Ref:http://paktribune.com/business/news...rupees-released-for-PR-restoration-10084.html

2 days later Pakistan Railways projected a budget that they will be in loss of 40 billion rupees

For 40 billion loss
Ref:http://www.brecorder.com/market-data/stocks-a-bonds/0/1218968/

 

[Markus]

Privatization - bad idea

1). Lease railway landbank (which I am sure will be quite large) to corporates
2). Advertise on trains - inside and outside
3). Lease out redundant buildings to corporates
4). Reduce extra staff via voluntary retirement
5). Ensure all train engines and rakes are serviced and used with optimum efficiency
6). Increase ticket prices
7). Clamp down on ticketless travelers with high penalty

 

[Cheetah786]

I know, but the privatization won't make it better, the greedy corporation will put the profit before people's safety.

Isn't greedy corporations the reason china is economic power today cause if greed wasn't the motivation i doubt Western MFG would have moved to lower cost countries.

 

[AZADPAKISTAN2009]

General Motors Locomotives are sold 2 Million a pop

Reference:Yahoo! Groups

So that means , you can buy 300 High Performance (30 years life time) GM locomotives at Price of 600 Million Dollars
Straight forward

a) The 500 Old models you send them to Local Factories in Pakistan to rebuild the 500 engines over 2-5 years
b) But put an order out for 300 Brand new engines

Problem Solved

Its not like Pakistan does not have 20 Billion dollars in reserves or lack of funds just need serious solution

Pakistan Government released 35 billion rupees equal to 350 Million dollars for whole year


That is enough money to buy 150 brand new locomotives, yet the Railways says that its in loss mean all the MONEY is gone ...

The truth is they are just collecting their SALARIES .. that is the real problems they worry frist about the salaries and then about any repairs

 

[Cheetah786]

Railways does not need Privitization but it needs to let go of its 85,000 Employees

To have about 10,000 Workers

A company with 60 locomotives out of 500 total running with -ve income balance can't justify having
85,000 workers



60 Trains need 85,000 works ? It makes not sense one would expect that with so many workers passengers would be served a mango shake and a railway employee would give them a massage ...

But these extra workers are just waiting to collect Bail out checks

Government goves 10 dollar , Railways release their budget of 15 dollars .. so every thing government gives 90% goes in paying salaries and 10% goes to repairs


The other day Pakistan Government released 35 Billion rupees for Railways

Ref:Thirty five billion rupees released for PR restoration Pakistan Business

2 days later Pakistan Railways projected a budget that they will be in loss of 40 billion rupees

For 40 billion loss
Ref:Railways expects budget deficit of Rs 40.46 billion | Business Recorder

The problem is management simple Most crown corporations in Pakistan are being run by ex military personals that have no clue what they are doing plus no accountability.

Private corporations will get rid off all dead wait including managers that shouldn't be allowed to sweep the floor in trains as they aren't even qualified to do that.

By Privatizing GOP can tax the profits and don't have to subsidize the losses if the engine or employee doesn't work owners have to fix it them self's without a dime from Tax payers money.

 

[AZADPAKISTAN2009]

Mean while quietly , NATIONAL LOGISTICAL CELL bought 10 locomotives (Refurbished) to run them for freght supplies
NLC to buy 10 reconditioned locomotives - thenews.com.pk

They got the millions quickly and they did the purchase quickly so they can supply undisclosed shipments to undisclosed destination

That happens to be NATO and Afghanistan respectively

ISLAMABAD: The National Logistic Cell (NLC) has signed an agreement with a Korean rail company for purchase of 10 reconditioned locomotives for freight operation at a cost of $11.2 million, sources said on Friday.



The agreement was signed by Major General Junaid Rehmat, director general of NLC and Paeng Jung Goang, vice president of KORAIL, a South Korean firm.



According to the Finance Division, the Korean firm will deliver the locomotives in Karachi within 10 months of opening of the letter of credit.



The government will make 20 percent payment in advance, while the rest of the money will be paid on delivery of the locomotives.



NLC and KORAIL have been negotiating for the purchase of refurbished GMU-30 type locomotives since October 2010 and the deal was culminated through direct negotiations between the buyer and the supplier, said the ministry, adding that National Logistic Cell showed its interest to procure more locomotives next year following phasing out of 46 locomotives by the manufacturing firm, according to the officials of the ministry of finance.



The KORAIL will provide the type of locomotives already held on the inventory of Pakistan Railways except for different gauge.



It will overhaul these locomotives and change the gauge to suit Pakistan Railways track requirements.



NLC will also procure the spare parts for two years, said the finance ministry.



At an additional cost of $1.4 million, National Logistic Cell will also hire the consultancy services of five Korean engineers for a period of two years, said the ministry, adding that NLC will also establish workshop facilities for maintenance of these locomotives.




So while Pakistan Railways can't do much with 350 Million dollars, a company run by General can buy 10 Engines for mere 10 Million dollars , make 80 million in freight shipments and then sell it back to Pakistan Railways

 

[Dr. NooB NinjA]

Privatization can be good..
It will make the system more efficient and profitable...
Better infrastructure and faster movement of people and goods can go wonders for any countries economy...

And as far as the concerns about privatized railway not going towards less profitable routes; clauses can be imposed by govt that a particular % say 50 will have to be invested in upgrading existing and laying down new tracks.. The profits generated can be used to subsidize the movement of people; which will be very helpful in the long run...
Not to forget the amount of $$$reserves a govt can save on the oil import... Railways are much more efficient when compared to any road transport system especially for goods/freight/cargo....
Everything has a solution..
You just need the will to work and implement...!!

 

[Samlee]

The Best Idea Is To Introduce Reforms In The Railway Sector:
1.Liberalisation
2.Deregulation
3.Professionalisation of Management in PR
4.Un Bundling Of Railway Functions
5.Introducing Alternatives
These Same Reforms Were Introduced In The Telecom Sector and A Revolution Came About.There Is Absolutely No Reason Why This Cannot Work In Railways.
The Competition Will Give The Common Man Quality Rail Transport At Knock Down Rates