LAHORE: The Pakistan Railways has been losing Rs408,000 daily at least for the last three months or so when ‘red-tape’ started ‘irritating’ contractors operating Cargo Express between Lahore’s Badami Bagh and Karachi stations.

Minister for Railways Khwaja Saad Rafique had on Sept 4 last year inaugurated the resumption of the Cargo Express train after a lapse of more than three years when it used to have 27 bogies per round trip.

However, the train started leaving Badami Bagh station with 26 bogies soon after its inauguration as the PR authorities refused to hand over M/s Haris Enterprises a bogie for loading.

“The contractor remained in litigation with the railways and got relief from the Lahore High Court which annoyed the powerful in the (railways) ministry,” an official of the railways commercial wing told Dawn on Sunday.

Soon after monsoon this year, M/s Ocean and FJR Company abandoned one bogie each on account of huge losses they had suffered because railway authorities concerned paid no attention towards their repeated requests to repair the sheds allotted to them for storing luggage.

“The two contractors paid thousands of rupees in damages to their customers on the assumption that work on leaking sheds would start soon after the monsoon but it did not. The authorities kept on saying the case was being processed,” said the officer while seeking anonymity.

Initially, the cargo train between Badami Bagh and Karachi had been started in 1992 by contracting out its idle cargo wagons to private parties on a round-trip per wagon rate basis. After a year, the train route was extended up to Gujranwala on the demand of the business community.

The operation of the cargo train was suspended on April 13, 2010, without any reason. The contractors had offered to enhance the per wagon rate, but railway authorities preferred inviting fresh tenders.

In the re-bidding process, the railways insisted on Rs96,600 round-trip charges per wagon against the Rs80,000 offered by the contractors.

The operation of cargo express was thrice suspended as railways authorities asked the contractors to increase payments and invited fresh tenders. The affected contractors moved the Lahore High Court and got relief.

In pursuit of the orders of Justice Shujaat Ali Khan, the then GM (Operations) submitted under his Arbitration Award (dated July 10, 2013) that the PR would introduce this train on availability of locomotives preferably from the first week of September 2013. In the first phase, the cargo train was to be operated twice a week and later on a daily basis.

However, instead of implementing the Arbitration Award, the railways started adopting delaying tactics holding meetings with contractors and making false promises, said the PR official.

In the first meeting on Aug 27, 2013, a committee of PR marketing, commercial and accounts officers asked the contractors to enhance the freight charges to Rs130,000 per wagon round-trip and promised to resume train operations immediately.

In the second meeting, on Sept 3, the railway authorities informed the contractors that the trains operation would restart from Nov 1, 2013. In the third meeting on Oct 22, the PR authorities reiterated their resolve to resume the operation of cargo express initially once in a week and to increase its frequency on availability of more locomotives.

“The PR has been losing Rs136,000 per bogie daily and the railway high-ups seem least interested in utilising the available resources of the organisation to generate revenue.

The PR should offer these three bogies to interested parties through bidding to load either from Badami Bagh or Faisalabad where the train would have stoppage,” said the official.

Published in Dawn, November 16th, 2015

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