Plan to import 150 foriegn locomotives dropped...local locomotives ordered!

[DESERT FIGHTER]

ISLAMABAD: Pakistan Railways has decided to lease out its Risalpur factory to private sector to convert it into a modern, state-of-the-art locomotive manufacturing facility.

The main objective of the move is to manufacture 25 locomotives yearly for the Railways and to unitise any excess capacity for potential export opportunities, according to a project document made available to Dawn.

The private sector consortium would make an upfront payment of Rs1 billion to the Railways after signing of the concession agreement.

The private party would make investment through its own resources without any financial assistance from the locomotive factory or PR to make the plant a successful and self-sufficient unit. The private party would have no access to locomotive factory’s assets for securing financing for the project.

The locomotive factory in Risalpur was commissioned in 1993 at a cost of Rs2.28bn with the Japanese assistance. Spreading over 100 acres and with production capacity of 25 locomotives in single shift basis, the factory has so far manufactured 97 locomotives and rehabilitated another 26.

The factory has been running into losses with only 97 locomotives manufactured in 21 years instead of estimated 235 locomotives since January 1993.

The Railways has offered the factory to a private sector consortium through the Infrastructure Project Development Facility (IPDF) of the Ministry of Finance.

The factory will partner with the private sector by contributing land and its existing facilities as a form of equity, while the private party will be responsible for upgrading the factory and its operations.

The project would have a possible capacity to export products while still retaining the functions of fulfilling the local railway transportation demand and achieving high delegation levels for the industry.

The concession to private consortium would be for 25 years subject to a manufacturing capacity of at least 25 locomotives a year.

Official statistics showed that the Railways currently has 300 locomotives which are out of service, waiting major repairs. The government is arranging funding of Rs6.1 billion through a consortium of commercial banks for the rehabilitation of 66 held-up locomotives through PRACS.

Rehabilitation of 27 locomotives is being arranged through PSDP at a cost of Rs5.108bn for which an agreement has been signed with a US locomotive manufacturing enterprise.

Special repair of 150 locomotives to improve their reliability and performance was also being carried out through PSDP at a cost of Rs5.005bn. Under this initiative, 20 locomotives would be repaired in 2012-13 and 65 locomotives each in the next two years.

The Executive Committee of National Economic Council (Ecnec) has already approved the procurement of 275 locomotives, and the delivery of first 50 locomotives will start from March 2014. PR has also submitted a proposal to Planning Commission for another 100 locomotives for approval by Ecnec.

The Railways has a total of 515 locomotives, out of which more than 300 are off-track for want of service. Since 2011, the number of locomotives available for use has reduced by an average of 10 locomotives a month. By June 2012, only eight locomotives were available for freight and 92 for passengers. As a result, PR revenue earnings have drastically fallen by 25 per cent.

The worst crisis of the Railways is evident from the fact that the passenger traffic which was 230 trains a day has been reduced to 92 trains daily, while the number of freight trains has dropped from 96 to merely one per day.


https://www.google.com/url?sa=t&rct...joGoDA&usg=AFQjCNFcL3cZqclbg3I-dP5nttgBBQDVTg


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https://www.google.com/url?sa=t&rct...ioCIDQ&usg=AFQjCNGedEqxW3-7dzXyppM1MDPGGcaHHg

About effen time....after all these years.... just hope the new govt isnt as corrupt as the previous one... n our taxes are used in a constructive way...

 

[RescueRanger]

Very interesting. I can see merits to this but also opens up avenues for abuse. Lets see where this goes.

 

[SQ8]

It would only work if there was fair competition and fairer treatment of the firm. Business in Pakistan is a swim in a shark pool.

 

[my2cents]

So what happened to Indian locomotives order???

 

[black_jack]

Right step by pakistani government

 

[indian_foxhound]

70 to 75 new trains damn good move.... work apriciated by new government

 

[farhan_9909]

will indeed help us in long run.

I hope the private firm is honest aswell

 

[ziaulislam]

a huge investment in 1993 to create local locmotives unfortunately like every govt enterprise it was bond to fail...had it been privitze or public private patnership it could have survived
they are other examples like telephone manufacturing plant in haripur
now the steal mills
and long list

 

[Jungibaaz]

It may seem beneficial at first, but giving all the contracts to a single firm would not be wise. In Pakistan, these firms would take full advantage of their monopoly powers.

Is there anyway to diversify orders? How many firms produce these kind of locomotives in Pakistan? Competition is key.

Very interesting. I can see merits to this but also opens up avenues for abuse. Lets see where this goes.

Almost forgot about that. Corruption becomes more likely in this scenario.
Strange isn't it? we have more faith in private foreign firms only out to make money than our own leaders.

 

[DESERT FIGHTER]

Lets see n hope every thing goes fine... as for corruption. its a part of life in our country... unless some strong radical steps are made... we will keep suffering frm this disease..

 

[AZADPAKISTAN2009]

Well

CHINA ANGLE
First there were 140 Locomotives from China , 60 were attained they had mechanical problems
rest or order were cancelled - some people reported that they used , used oil into engines causing them to go bad.

US (General Motors GM Locomotives)
Then there was talk of buying from General Motors , good quality engines that plan was shelved

Indian Locomotives at 1 million / engine rate
Then there was plan to attain engines from India , that plan was shelved

Then there was plan to attain engines from South Korea used General Motors brand , failed


Recently news surfaced to get engines from Catarpillar , USA..


Bottom line is since 2008 , they could not "ORDER" engines , its one thing not to have money but not being competent enough to select a company to buy from (BIG FAILURE)

JAPANESE CONTRIBUTION (FACT) not story from newspaper , research document
This was one of the items Musharraf gave to Pakistan with Japanese cooperation: End result that no funds were given to this factory in PPP time
Japanese, donated money and from that money we created Rasulpur factory , and Japanese were kind enough to give us Blue prints of making a Japanese Model Locomotive , yes this is documented proof that Japanese taught our engineers how to make a Japanese Model Locomotive
There was transfer of Technology involved when they created the factor under Musharraf's rule


However due to red tape ... only 10-15 engines were made when it was planed that that factory could make 300 engines over 5 years period


One Locomotive would cost 2 Million Dollars (USD) 200 Million would have been sufficient
To Buy 100 Brand new Locomotives with life span of 20 years

If we had purchased 100 Locomotives back then may be we would have recovered all our cost of purchase


Problem:
Cost to get 200 Brand New State of Art Engines $200-250 Million US Dollars


Pakistan Railways :
Spend probabaly 70-80 Million per year on salaries and pensions , many of these works do not even come to office

Between 2008-2013 , 6 years that totals $500 Million in salaries



BAIL OUT HISTORY

2013 NEW ------- 31 Billion Rupees = 300 Million US Dollar (Enough for 150 New Locomotives OR repair 300 engines)
Reference:
http://awampk.com/federal-budget-2013-2014/




Reference:
June 16, 2012 - 22 Billion Rs = $219 Million Dollars - Enough for 100 Locomotives or repair 200 engines
Reference:
http://tribune.com.pk/story/394308/bailout-package-may-not-put-pakistan-railways-on-track/


Refercence:
August 07, 2011 : 11 Billion Rupees = $110 Million Dollars - Can by 50 Locomotives or repair 200 engines
http://www.dailytimes.com.pk/default.asp?page=2011\08\07\story_7-8-2011_pg3_1


Reference:
December 31, 2010 Bail Out given 11 Billion Rupees = $110 Million Dollars- Can buy 50 Locomotives or repair 100 locomotives
Railway Rep Demanded this to be increased to 200 Million Dollars
http://www.nation.com.pk/pakistan-n...c-2010/Railways-bailout-package--insufficient


Between 2010 - 2013 , with the money given to Railways , a total of 350 Brand new Locomotives from USA (20 year warranty) would have been bought ......buying from india would have given us 700 locomotives

In Pakistan Railways the priority has been
a) Paying Salaries
b) Spending money on so called special Projects and feasibility studies
c) Paying consultant's fee

Instead of buying what is needed!!! Locomotives

$850 Million Dollars ... ALMOST A BILLION DOLLARS DOWN THE DRAIN AND NO ONE IS HANGED

WHERE IS THE ANTI CORRUPTION COMMITTEE



Hang this man ? & Railways officials from 2010-2013???

 

[Kompromat]

So what happened to Indian locomotives order???

We allowed N.Modi to keep them as souvenirs.

 

[DESERT FIGHTER]

Well

CHINA ANGLE
First there were 140 Locomotives from China , 60 were attained they had mechanical problems
rest or order were cancelled - some people reported that they used , used oil into engines causing them to go bad.

US (General Motors GM Locomotives)
Then there was talk of buying from General Motors , good quality engines that plan was shelved

Indian Locomotives at 1 million / engine rate
Then there was plan to attain engines from India , that plan was shelved

Then there was plan to attain engines from South Korea used General Motors brand , failed


Recently news surfaced to get engines from Catarpillar , USA..


Bottom line is since 2008 , they could not "ORDER" engines , its one thing not to have money but not being competent enough to select a company to buy from (BIG FAILURE)

JAPANESE CONTRIBUTION (FACT) not story from newspaper , research document
This was one of the items Musharraf gave to Pakistan with Japanese cooperation: End result that no funds were given to this factory in PPP time
Japanese, donated money and from that money we created Rasulpur factory , and Japanese were kind enough to give us Blue prints of making a Japanese Model Locomotive , yes this is documented proof that Japanese taught our engineers how to make a Japanese Model Locomotive
There was transfer of Technology involved when they created the factor under Musharraf's rule


However due to red tape ... only 10-15 engines were made when it was planed that that factory could make 300 engines over 5 years period


One Locomotive would cost 2 Million Dollars (USD) 200 Million would have been sufficient
To Buy 100 Brand new Locomotives with life span of 20 years

If we had purchased 100 Locomotives back then may be we would have recovered all our cost of purchase


Problem:
Cost to get 200 Brand New State of Art Engines $200-250 Million US Dollars


Pakistan Railways :
Spend probabaly 70-80 Million per year on salaries and pensions , many of these works do not even come to office

Between 2008-2013 , 6 years that totals $500 Million in salaries


BAIL OUT HISTORY
June 16, 2012 - 22 Billion Rupees = $219 Million Dollars

Ur facts r wrong the factory was inaugurated in 1993... and has produced around 97+ locomotives n refurbished 26 locos..

 

[AnnoyingOrange]

ISLAMABAD: Pakistan Railways has decided to lease out its Risalpur factory to private sector to convert it into a modern, state-of-the-art locomotive manufacturing facility.

The main objective of the move is to manufacture 25 locomotives yearly for the Railways and to unitise any excess capacity for potential export opportunities, according to a project document made available to Dawn.

The private sector consortium would make an upfront payment of Rs1 billion to the Railways after signing of the concession agreement.

The private party would make investment through its own resources without any financial assistance from the locomotive factory or PR to make the plant a successful and self-sufficient unit. The private party would have no access to locomotive factory’s assets for securing financing for the project.

The locomotive factory in Risalpur was commissioned in 1993 at a cost of Rs2.28bn with the Japanese assistance. Spreading over 100 acres and with production capacity of 25 locomotives in single shift basis, the factory has so far manufactured 97 locomotives and rehabilitated another 26.

The factory has been running into losses with only 97 locomotives manufactured in 21 years instead of estimated 235 locomotives since January 1993.

The Railways has offered the factory to a private sector consortium through the Infrastructure Project Development Facility (IPDF) of the Ministry of Finance.

The factory will partner with the private sector by contributing land and its existing facilities as a form of equity, while the private party will be responsible for upgrading the factory and its operations.

The project would have a possible capacity to export products while still retaining the functions of fulfilling the local railway transportation demand and achieving high delegation levels for the industry.

The concession to private consortium would be for 25 years subject to a manufacturing capacity of at least 25 locomotives a year.

Official statistics showed that the Railways currently has 300 locomotives which are out of service, waiting major repairs. The government is arranging funding of Rs6.1 billion through a consortium of commercial banks for the rehabilitation of 66 held-up locomotives through PRACS.

Rehabilitation of 27 locomotives is being arranged through PSDP at a cost of Rs5.108bn for which an agreement has been signed with a US locomotive manufacturing enterprise.

Special repair of 150 locomotives to improve their reliability and performance was also being carried out through PSDP at a cost of Rs5.005bn. Under this initiative, 20 locomotives would be repaired in 2012-13 and 65 locomotives each in the next two years.

The Executive Committee of National Economic Council (Ecnec) has already approved the procurement of 275 locomotives, and the delivery of first 50 locomotives will start from March 2014. PR has also submitted a proposal to Planning Commission for another 100 locomotives for approval by Ecnec.

The Railways has a total of 515 locomotives, out of which more than 300 are off-track for want of service. Since 2011, the number of locomotives available for use has reduced by an average of 10 locomotives a month. By June 2012, only eight locomotives were available for freight and 92 for passengers. As a result, PR revenue earnings have drastically fallen by 25 per cent.

The worst crisis of the Railways is evident from the fact that the passenger traffic which was 230 trains a day has been reduced to 92 trains daily, while the number of freight trains has dropped from 96 to merely one per day.


https://www.google.com/url?sa=t&rct...joGoDA&usg=AFQjCNFcL3cZqclbg3I-dP5nttgBBQDVTg


https://www.google.com/url?sa=t&rct...joGoDA&usg=AFQjCNEyeXAENPWcbGZXZpNBWvXgdWdnEw


https://www.google.com/url?sa=t&rct...ioCIDQ&usg=AFQjCNGedEqxW3-7dzXyppM1MDPGGcaHHg

About effen time....after all these years.... just hope the new govt isnt as corrupt as the previous one... n our taxes are used in a constructive way...

Excellent step.... strengthens local economy. And more jobs for Pakistani youth......

 

[my2cents]

In a way good step to boost your productivity. Indian locos would not have worked if your conditions did not improve and would have been viewed as cheap maal from across the border.