September 25, 2003	Thursday	Rajab 27, 1424

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ISLAMABAD, Sept 24: Pakistan has decided to induct as many as 1,300 new high capacity wagons in the Pakistan Railways at a total cost of Rs5.87 billion including a foreign supplier’s credit of Rs3.6 billion.

Official sources told Dawn on Wednesday that Executive Committee of the National Economic Council that meets on Saturday would approve import of 420 CBU (completely built units) wagons from China beginning this year and manufacturing of 880 units locally during the next five years.

The government also plans to adopt open access policy to involve private sector financing through setting up of a Railways Regulatory Authority (RRA) for handling private rail operators, involvement of private sector in industrial units, salaries and other expenditures.

The summary to the ECNEC suggests the foreign exchange component of the project cost would be financed through Chinese supplier’s credit to the extent of 87.5 per cent (Rs3.6 billion) for 12 years, excluding a grace period of three years at an interest rate of 4.8 per cent for the entire pay back period.

In overall terms, each wagon would cost Rs4.515 million. Of these, 1,000 wagons would be covered with central couplers, air- brakes and roller bearing and 300 flat container wagons as replacement of 2,600 four wheeler wagons.

The 420 CBUs include 130 covered, 130 flat, 130 high-sided wagons and 30 brake vans. The 880 units to be manufactured locally include 340 covered, 150 flat, 340 high-sided wagons and 50 brake vans.

The new wagons will operate at a speed of 80 kilometres per hour and are expected to reduce the turn around time from 21 to five days between Lahore and Keamari (1219 km) besides carriage of freight traffic of 4.217 million tons per annum.

This is expected to increase the share of Pakistan Railways inland freight traffic from 3.96 to 5.68 per cent by the year 2012-13.

The share of Pakistan Railways in freight traffic has declined from 77 per cent in 1960’s to less than five per cent.

The PR’s rolling stock now comprises a number of overage wagons and a substantial part of the stock will become obsolete and beyond redemption in the years to come.

This is estimated to completely erode the inland freight traffic by 2005.

The PR is currently maintaining a fleet of 27,381 freight wagons of which 1,339 wagons are overage, another 5,340 and 5,531 units will become overage by 2005 and 2012, respectively, making a total of 12,210 overage units by 2012.

The sources said the central development working party (CDWP) had cleared the project for approval on Sept 5, 2003, with a total cost of Rs5.87 billion including a foreign exchange component of Rs3.607 billion.