Pakistan Railways is planning to outsource the commercial management of additional trains to private entities under a Public-Private Partnership (PPP) model.
The department initially invited tenders for this outsourcing initiative, but only three companies participated, offering bids below the benchmarked amount.
Pakistan Railways deemed it unfeasible to proceed with these firms under the Public Procurement Regulatory Authority (PPRA) rules and regulations. The department has planned to re-advertise the tenders soon.
A committee within Pakistan Railways observed that the initial bids lacked both technical and financial aspects, which would have resulted in a lack of competitiveness. All trains will be outsourced through a transparent tendering process, adhering strictly to PPRA rules, with advertisements placed in leading newspapers.
Currently, Pakistan Railways operates 49 passenger trains, with 12 of these already managed by private entities under the PPP model.
Currently, PR is operating 49 passenger trains, with 12 of them already being operated by private parties under the Public-Private Partnership (PPP) mode. These include the Sir Syed Express, Karakoram Express, Karachi Express, Awam Express, Green Line, and Pak Business Express.
“The conditions are very tough. And in such circumstances, running a train has become an uphill and thankless job. On the other hand, the profit/margin is squeezing due to increasing cost incurring on facilities,” a senior official of a private firm presently running a train in Punjab said.
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