Muhammad Faisal Kaleem

Pakistan Railways (PR) has generated a total revenue of Rs3.95 billion through the cargo vans operated directly by the department and outsourced parties in three years, beginning FY2021-22, reports Wealth Pakistan. The revenue collection testifies to the department’s ongoing efforts to boost freight operations, enhance logistics efficiency, and strengthen its overall financial performance across the transportation network.

The year-wise breakdown, according to the official documents, shows that Rs836.247 million was collected in Fiscal Year 2021-22, Rs1184.213 million in 2022-23, and Rs1939.215 million in 2034-24. The revenue generated from outsourced luggage and brake vans was nearly three times higher than that from by the vans/trains operated by the department.

Over the past three years, the PR-operated trains earned Rs1.169 billion (Rs265.998 million in FY2021-22, Rs444.583 million in FY2022-23, and Rs458.410 million in FY2023-24), while the outsourced vans generated Rs2.790 billion (Rs570.249 million in FY2021-22, Rs739.630 million in FY2022-23, and Rs1480.805 million in FY2023-24).

According to the railway ministry officials, the decision to outsource freight vans was taken to address the growing demand of the industrial and energy sectors. Freight services are also important to connect major cities to boost trade, travel, and tourism. Bids for outsourcing luggage and brake vans are initiated through an open tendering process. After public advertisement and completion of due procedures, contracts are awarded to the successful bidders.

The documents further state that the benchmark for the bid is set keeping in view the previous year’s earnings from luggage and brake vans. Successful bidders are required to deposit 15% of the total amount in advance, with the remaining balance payable in 10 equal monthly installments. The contracts are valid for two years and are extendable to another year with mutual consent and are subject to the satisfactory performance of the contractor.

The major stakeholders involved in outsourcing are Pakistan Railways and the private contractors to whom the luggage and brake vans are outsourced. Previously, the department ran regular freight trains countrywide, including cargo express from Karachi to Multan/Faisalabad and Lahore area, Kundian freight operations between Quetta and Taftan, container services for Prem Nagar and Qila Sattar Shah, oil transportation between Multan and Rawalpindi, and dedicated cargo express services, supporting broader commercial and industrial supply chains.

Speaking to the media outside the Parliament House, Minister for Railways Muhammad Hanif Abbasi claimed that Pakistan Railways is undergoing a huge transformative phase in its 77-year history. He also highlighted improvements in train punctuality, noting that it had increased from a dismal 46 percent to over 86 percent despite operations continuing on outdated tracks.

Credit: INP-WealthPk