Native World News

Railways auction yields mixed results

Railways auction yields mixed results

Majority of trains remain unoutsourced despite fresh bidding round

Pakistan Railways (PR) has once again failed to attract private operators for most of the trains offered under its outsourcing programme. with only five of the 15 passenger services receiving successful bids amid limited participation from companies.

Railway sources said PR had invited bids to operate 15 passenger trains in an effort to improve services. boost revenue through public-private partnerships. However, the response remained lukewarm, with 10 trains failing to attract successful bidders.

An open auction for the train services was held at the Railways Headquarters in Lahore. The sources said that most private companies showed little interest in the exercise, resulting in a low level of participation. preventing several trains from being outsourced.

The trains that were successfully outsourced include Awam Express, Millat Express, Karakoram Express, Mianwali Express and Narowal Passenger.

However, a number of major and regional services failed to secure bidders. These include Karachi Express, Fareed Express, Bahauddin Zakaria Express, Ravi Express, Lasani Express, Thal Express, Sukkur Express, Sialkot Express. Faiz Ahmed Faiz Passenger.

Railway officials believe that the limited response from the private sector reflects concerns over the financial viability of operating some routes under the existing terms. conditions.

The latest outcome follows a similar experience earlier this year. Sources said Pakistan Railways had conducted an open auction for eight trains in February as part of the same outsourcing initiative. Despite the effort, those services also failed to attract operators.

According to officials familiar with the process. one of the major reasons for the lack of interest was the benchmark rates set by the department. Potential bidders reportedly considered the benchmark figures too high, making it difficult to run the services profitably.

The PR has increasingly explored outsourcing arrangements in recent years as part of broader efforts to improve operational efficiency, enhance passenger services. reduce the financial burden on the state-run organisation. Under the model, private operators are allowed to manage train operations while paying agreed fees to the railway administration.

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see ourComments FAQ

Source: https://tribune.com.pk/story/2615173/railways-auction-yields-mixed-results

Discussion

Sign in to join the thread, react, and share images.