LAHORE: For the first time, Pakistan Railways (PR) is about to finalise a deal of selling its 1,360 condemned goods wagons after it received a good offer from the Peoples Steel Mills (Karachi) — a state owned entity.

If finalised, it will greatly help railways increase its revenue up to Rs2 billion at least, Dawn has learnt.

“It will be a government-to-government deal agreement as the Peoples Steel Mills is a state owned entity which has offered us a good price of Rs113 per kilo of the scrap comprising nearly 1,500 condemned wagons — many of them were declared condemned 15/20 years ago,” PR Chief Executive Officer Amir Ali Baloch told Dawn on Tuesday.

“All these four-wheel condemned wagons are parked at Karachi yard since long and it is necessary to sell this huge scrap to increase PR’s revenue,” he added.

According to him, though the offer is good, the PR wants some more increase in the per kilogram rate by Rs2-3.

“It will be a great achievement in the best interest of our department if we dispose of such a huge number of condemned wagons,” he maintained.

A senior official, who wished not be quoted, told Dawn that weight of a condemned wagon is about 10 tonnes (10,000kg) and if it is sold in at the rate of Rs115 per kg, the amount of each wagon will be Rs1.15m. And the total amount of the entire condemned wagons at Karachi would be Rs1.72bn or so.

According to a letter, dated Dec 16, sent by the Peoples Steel Mills (PSM) Karachi to the PR headquarters in Lahore, the rate of Rs113 per kg has been offered for the purchase of 1,360 condemned wagons.

The letter states that the PR, if accepts the offer, will allow cutting of wagons and weightment of wagons cutups at the PR premises. It also states that the Nonferrous materials like air filters, plastics, rubber and heavy dust particles and stones etc would not be included in the offered price. The company also explained some other terms and conditions, including adjustment of Rs203m outstanding dues related to RAILCOP — a subsidiary of the PR, permission of part payment and lifting, GST invoice, delivery schedule spanning over 8 months, income / sales tax.

“Our offered price is valid up to Dec 20, 2024,” the letter concludes.

The PR CEO hoped for the best saying that the deal is expected to be finalised in a day or two.

Published in Dawn, December 18th, 2024