Railway authorities plan to privatize passenger trains in phases

The Pakistan Railways (PR) authorities once again have decided to run the passenger trains under the private sector, reported 24NewsHD TV channel on Tuesday.

According to report, after the failure of the 22-train privatization project, the railway authorities have now planned to privatize the trains in phase-wise.

In the first phase, 10 trains will be run under the private sector.

Interested firms can submit applications till September 19, 2024 while on September 19, technical bids will be released.

Chief Executive Officer (CEO) Railways has given permission to issue the tender.

Private trains include Karachi Express, Awam Express, Hazara Express, Bahauddin Zakaria Express, Meher Express, Sukkur Express, Chenab Express, Mehran Express, Mohenjodaro Passenger and Rawalpindi Passenger.

PR to outsource more trains

Pakistan Railways has planned to outsource the commercial management of additional trains to private entities under a Public-Private Partnership (PPP) model through a transparent and competitive bidding process.

“The basic purpose of outsourcing the trains is to provide better facilities to the passengers and generate more revenue for the department, official sources in the Ministry of Railways told APP.

The department initially invited tenders for this outsourcing initiative, but only three companies participated, offering bids

below the benchmarked amount, they added.

As a result, they said Pakistan Railways deemed it unfeasible to proceed with these firms under the rules and regulations set by the Public Procurement Regulatory Authority (PPRA). Consequently, the department plans to re-advertise the tenders soon.

They said a committee within Pakistan Railways observed that the bids submitted in the initial tender process were lacking in both technical and financial aspects, which would have resulted in a lack of competitiveness.

The sources emphasized that all trains will be outsourced through a transparent tendering process, adhering strictly to PPRA rules, with advertisements placed in leading newspapers.

Currently, Pakistan Railways operates 49 passenger trains, with 12 of these already managed by private entities under the PPP model.

They remain optimistic about the success of the outsourcing plan. However, it is prepared to continue operating the trains independently if private parties fail to meet passenger expectations.

Reporter: Saeed Ahmad Saeed