LAHORE: The future of the maiden Green Parcel Express of the Pakistan Railways seems to be in jeopardy within a month or so after its launch.

Comprising 13 luggage and one guard-cum-brake vans, Parcel Express had left Lahore on Feb 10 on its maiden journey to Karachi with 11 empty luggage vans.

“The 369-Up/370-Down Parcel Express has not been a commercially viable venture. It has earned Rs3,112,725 in seven round trips between Lahore and Karachi from Feb 10 to March 13. The variable cost of Parcel Express is Rs347 million. The fixed cost is Rs637m. Variable cost is the expenditure on operating an express train from Lahore to Karachi,” an official of railways commercial wing told Dawn.

Since the train could earn Rs195,300 on its first trip, the railways authorities decided on Feb 13 to introduce “promotional rates for a period of one month” to lure private cargo contractors. The new per kilo charges from Lahore to Karachi were Rs7.50, from Lahore to Hyderabad Rs6.60, from Faisalabad to Hyderabad Rs6 and from Faisalabad to Karachi Rs6.60.

However, the train earned Rs115,400 on its second trip on Feb 15 to Karachi, Rs435,090 on Feb 20, Rs78,150 on Feb 24, Rs3,470 on Feb 29 and Rs5,040 on its sixth trip on March 4. On the latest trip to Karachi on March 9, the train left Lahore with no luggage at all.

Similarly, the train earned Rs684,045 on its first trip on Feb 13 to Lahore, Rs387,285 on Feb 18, Rs216,710 on Feb 23, Rs335,285 on Feb 27, Rs372,320 on March 3, Rs147,480 on March 8 and Rs137,150 on its latest trip on March 13.

“Dispatching the empty train to Karachi was inevitable as only one rake is available at present for the Parcel Express,” said the official.

A decision to operate the train was taken when none of the 20 potential bidders submitted tenders for the auction of luggage and brake vans attached with eight express trains.

The PR had invited bids for the auction of luggage vans attached with Allama Iqbal Express, Awam Express, Millat Express and Pakistan Express, besides brake vans of Tezgam, Karachi Express, Akbar Bugti Express and Karakorum Express.

A total of 20 parties responded to the advertisements appearing on Dec 6 last year in national dailies and bought bid documents after paying non-refundable Rs10,000 each.

However, all the potential bidders gathered at the Railways Headquarters’ committee room No 2 on Dec 21 last year but instead of handing over their single-stage two-envelop bids to the tender committee, handed over a memorandum to the deputy chief marketing manager, citing their reservations about the `harsh’ terms and conditions mentioned in the tender documents.

Published in Dawn, March 16th, 2016