LAHORE: With a view to attracting investment from the private sector, the Pakistan Railways (PR) has decided to outsource commercial operation of its passenger trains in phases.

Under the first phase, the PR has offered 10 trains (up and down) to the interested parties to operate under the model of public-private partnership (PPP).

The trains advertised recently for commercial operation’ outsourcing include Hazara Express (11-up/12-down), Awam Express (13-up/14-down), Karachi Express (15-up / 16-down), Bahauddin Zakria Express (25-up/ 26-down), Mehar Express (127-up / 128-down), Sukkur Express (145-up /146-down), Chenab Express (135-up / 136-down), Mehran Express (149-up / 150-down), Mohinjo Daro Passenger (213-up / 214-down / local train) and Rawalpindi Passenger (267-up / 268-down, local train). The interested parties have been told that the bidding would be conducted through single-stage two envelop procedure of the PPRA rules. They have been asked to submit the technical bids by Sept 19 and the same day their bids would be opened at the PR headquarters’ committee room.

Offers 10 trains to operate under PPP model

It may be mentioned that, the PR had, earlier advertised its 22 trains for outsourcing purpose. These included Karakoram Express, Karachi Express, Awam Express, Green Line, Mehr Express, Chenab Express, Saman Sarkar Express, Mohenjo Daro Express, Pak Business, Bolan Mail, Thal Express, Sukkur Express, Marvi Express, Chaman Express, Hazara Express, Shalimar Express, Bahauddin Zakariya Express, Kohat Express, Mehran Express, Attock Express, Jand Express and Rawalpindi Express.

But during first week of the ongoing month, the PR stopped it through a letter stating that “Bidding of 22 passenger trains for commercial management carried out on Aug 1, 2024 has been scrapped. Now bidding schedule will be advertised accordingly. It is requested to please collect your bid documents, bid security and unopened financial proposals from chief commercial manager (CCM office)”.

According to official sources, the bidding process on Aug 1 had been scrapped following participation of only three companies, thus resulting into less competitiveness which is not allowed under the PPRA rules, regulations etc. The other issues behind participation of less companies in the bidding were some tough conditions that, perhaps, forced most companies to better stay away from entering into passenger trains’ business.

On the other hand, Chief Executive Officer/Senior General Manager Amir Ali Baloch of the PR seems optimistic about outsourcing of the trains in line with the interest of the department.

“We have decided to outsource trains under a phased manner. Initially, we have advertised 10 trains for which I am having some good vibes,” Mr Baloch said while talking to Dawn on Monday.

To a question, he said the terms and conditions would remain the same as there is no change in this regard. “I hope we will have a positive and enthusiastic response from more and more bidders this time,” he said.

Published in Dawn, August 27th, 2024