ISLAMABAD: Pakistan Railways and the Ministry of Petroleum signed a fuel transportation agreement under which the Pakistan State Oil (PSO) will transport at least 2 million tonnes of fuel every year based on the demand placed by the Ministry of Water and Power.

The agreement was signed on Wednesday by PSO General Manager (Logistics) Syed Rashid Kamal and Pakistan Railways Additional General Manager (Traffic) Abdul Hameed Razi in the presence of Railways Minister Saad Rafiq.

The agreement will increase fuel transportation activity of the railways.

It will ensure transportation of fuel from Kaemari Terminal in Karachi to Muzzafargarh, Nishatabad, Piran Ghaib and Lalpir, from Pipri Marshaling Yard and Bin Qasim Port to Muzaffargarh, Nishatabad, Piran Ghaib, Lalpir and Akhundabad, from Mehmoodkot to Chakpirana, Sihala and Tarujabba and from Attock Refinery, Morgah or Rawalpindi to Lalpir.

PSO will make the imbursement of transportation charges to Railways for the movement of fuel.

Pakistan Railways contractor will be fully responsible for the loss of any quantity of fuel during transportation.

Under the agreement, Pakistan Railways reserves the right to revise the transportation charges during the term of the agreement which is for five years or any extended period.

PSO will make full payment of transportation charges to Railways of all booked consignments within two weeks from the time of booking.

Pakistan Railways was purchasing petroleum products worth Rs15 billion from PSO for its own consumption whereas it has also been transporting petroleum products. The oil transportation of PSO through Pakistan Railways has increased from four per cent to 38pc in three years, according to the Ministry of Railways.

Published in Dawn, May 25th, 2017