Government to launch Free Track Policy to allow the private sector to run its own freight trains

Around $8.2 billion worth Railways Main Line (ML-1) project would be initiated in March 2020 under the China-Pakistan Economic Corridor (CPEC) framework, said Railways Minister Sheikh Rashid Ahmed. Addressing a press conference, the railways minister also announced the Free Track Policy (FTP) where private sector could utilize Railways tracks while bringing their own engines, wagons and fuel after paying fare.

He said Free Track Policy will encourage private sector to run its own freight trains. The move would eventually increase Pakistan Railways’ (PR) earning, besides boosting the country’s economy, the minister said. Under the policy, he said the private freight trains would only be charged with the track fee that would be fixed by following the international market rates.

Rashid invited the prime minister and transport minister of China to witness the start of ML-1 project under which 1,800 km track would be upgraded. He further said that PC-1 of the ML-1 would be submitted to the Planning Ministry on Oct 23, and after getting approval from ECNEC, a tender of the project would be issued.

The first package would cost $2.248 billion while the cost of second and third packages would firm upon completion of preliminary design. The PC-1 for Package-1 based on cost estimates is validated by third part review consultants. The ML-1 upgrade has been declared a strategic commercial project with loan on favourable terms as it presents a perfect business plan covering 75 percent traffic/population and 65 percent industrial areas.

With the upgrade of ML-1, train speed will increase from the current 65-105 km to 120-160 km, line capacity from 34 to 171 trains each way per day, freight volume from 6 to 35 million tons per annum by 2025, and railway share of freight transport volume would increase from less than 4 percent to 20 percent. The project would create around 0.1 million jobs for the young people.

The minister announced that five freight trains have been given to private sector at Rs 160,000 each against the current Rs 80,000. He further said that 16 freight and 138 passenger trains are being run and there is no capacity to run any additional train. The minister further said that railways will carry 8 million additional passengers in the current year and is expecting additional revenue of Rs 2 million.

He further said seven railway stations have been upgraded and Chinese investors are keen to build commercial plazas and shopping malls on public private partnership basis. He further announced 50 percent increase in the basic pay of railways police while bringing them at par with the civil armed forces, Islamabad police, and national highway and motorway police.

Replying to a question, the minister said if war is imposed, it would be an atomic war. He appealed to JUI-F chief Maulana Fazlur Rehman for reconsidering the decision of ‘Azadi March’ while saying that there is tense situation at border. He further said politically matured people are part of Rahbar Committee and they would take a decision in the best interests of the country.