LAHORE: The plan to outsource train operations has hit a snag. Officials have decided to shift course and now train operations will be outsourced through an open auction. Consequently, the entire process has stalled.
Pakistan Railways had decided to outsource 11 of its trains to the private sector. After technical bids were opened, financial bids were also reviewed several days ago, with private companies submitting offers for nine trains. According to sources, Pakistan Railways received financial bids totalling Rs7.90 billion for the nine trains. However, final approval remains pending.
During a meeting held Saturday at the Railway Headquarters under the chairmanship of Federal Minister for Railways Hanif Abbasi, it was decided that the outsourcing of passenger trains would now be conducted through an open auction. This decision will also apply to trains for which bids have already been submitted. As a result, the outsourcing process has stalled. it was decided that the outsourcing of passenger trains would now be conducted through an open auction.
The railways received bids of Rs 2.62 billion for the Hazara Express, Rs 2.60 billion for the Millat Express, Rs 640 million for Subak Kharam, Rs 690 million for the Rawal Express, Rs 240 million for the Badr Express, Rs 250 million for the Ghouri Express, Rs 600 million for the Thal Express, Rs 86.5 million for the Faiz Ahmad Faiz Passenger Train, and Rs 161.2 million for the Ravi Express. No bids were submitted for the Bahauddin Zakariya Express or the Moenjodaro Express.
It is worth noting that nine trains are already being operated with private sector cooperation on various routes. Sources further indicated that in the past, Pakistan Railways had also attempted to outsource trains through advertisements, but the auction process could not proceed due to a lack of interest from private companies. On several occasions, companies declined to participate, citing the requirement that ticket booking must be conducted through the Railways’ system rather than their own.