LAHORE: Pakistan Railways (PR) has decided to go for open auction to outsource various passenger and express trains so as to ensure transparency in the bidding process.

The decision will also be applicable for the ongoing process of outsourcing nine passenger trains for which the railway management has been asked to reevaluate the process and implement open auction model, Dawn has learnt.

“We have decided to outsource commercial management of our trains through an open auction, as this model provides opportunity for most parties to participate in the competitive bidding,” said Railways Minister Hanif Abbasi while talking to Dawn on Friday.

“The previous outsourcing model (single stage two envelope / submission of technical and financial bids) was good, but I think open auction is more transparent. Moreover, we have recently floated tenders for some freight trains’ outsourcing through open auction. Therefore, both models cannot be adopted and we though open auction is the better option,” the minister explained.

Last year, PR floated tenders for outsourcing 22 trains. However, in the first week of August last year, PR canceled the bidding process. It cited a lack of competitiveness due to participation from only three companies, which violated PPRA rules and regulations.

Decision comes after Senate Standing Committee raised concerns over outsourcing under public-private partnerships

Later, the PR admin decided to outsource trains under public-private partnership under a phased manner instead of advertising many trains at once. It advertised 10 trains but bids for only four trains were deemed suitable.

“This year, PR again floated tenders for 11 trains and the process for outsourcing was almost completed. However, in a meeting held on Friday the minister directed to outsource these trains through an open auction,” said an official source.

However, PR Chief Executive Officer Amir Ali Baloch claimed the process of outsourcing these trains was underway and not yet completed. “We have been asked by the minister to reevaluate the bidding process for these trains,” he added. According to him, the commercial operation of one coal and one container / freight trains would also be outsourced under the public-private partnership model. “Outsourcing through open auction will be implemented in true letter and spirit,” he said.

It is pertinent to mention that the Senate Standing Committee on Railways, in a recent meeting, raised concerns regarding outsourcing trains under public-private partnerships. Committee member Senator Rubina Khalid questioned the procedure and rationale behind adopting models not widely practiced internationally. The committee asked the Ministry of Railways to provide a thorough briefing on its outsourcing policies and practices in the next meeting.

Meanwhile, in an important meeting presided over by the Federal Minister for Railways here on Friday, various important decisions regarding reforms and improvement of the railways were taken. It was decided that passenger trains would be outsourced through open auction, and this decision would also be applicable to the ongoing outsourcing process. The meeting also approved the revision of the annual revenue benchmark of trains, for which a special committee has been constituted. Furthermore, to ensure safe train operations, the Safety Department has been upgraded to the status of a full-fledged Directorate, along with transfers of officers and staff to strengthen the department.

During the meeting, a detailed briefing was given on the condition of guards’ and drivers’ running / rest rooms. The minister directed upgradation of running rooms, beginning with Rohri, Khanpur and Khanewal. These running rooms will be equipped with air-conditioning, kitchens, and common dining facilities.

The minister expressed his satisfaction over the progress of targets assigned to the Mechanical Department. The meeting was informed that by March 30, a total of 295 high-capacity freight wagons will be inducted into the system. Freight booking will be shifted entirely to an online system, which will become operational from next week.

Moreover, all AC standard and AC parlour coaches of the Shalimar Express will be completely replaced with brand new ones, while refurbished coaches for the Lahore–Rawalpindi railcars will be introduced by November 11. Similarly, all four rakes for the Lahore–Narowal section will be received by January 8.

Published in Dawn, September 20th, 2025