530 bogie-wagons to be built locally: Ecnec likely to approve project on March 26

The government has decided to manufacture 530 new high-capacity bogie-wagons locally to replace the existing 1890 four-wheeler wagons, sources in Railways Ministry told Business Recorder. They said that the government had planned, in 2005, to import or manufacture 530 new design wagons for railways at a cost of Rs 5.330 billion.
However, last year the cost was revised downward to Rs 4.589 billion. They said that the project would be financed from Public Sector Development Program (PSDP). Foreign exchange component (FEC) of the project has already been provided by the Islamic Development Bank (IDB). According to sources, the number of container flat bogie-wagons will be 156, high side open bogie-wagons will be 344, and brake vans 30.
The project was considered by Central Development Working Party (CDWP) in its meeting on November 11, 2008, which recommended it for approval of the Executive Committee of National Economic Council (Ecnec), subject to the condition that report on the issue of excess axle load is submitted by the Ministry of Railways to the Planning Commission, which would form part of the summary to the Ecnec.
The Railways Ministry has been directed to rationalise the project cost through a committee under the chairmanship of Planning Commission Member, Infrastructure, with representation at appropriate level from the Railways Ministry and Finance Division. In pursuance of the CDWP decision, the Railways Ministry has submitted a report on the issue of excess axle load.
The committee held detailed discussions on the matter and decided that all bogie-wagons would be manufactured locally, in CKD condition. "Pakistan Railways have developed indigenous expertise to manufacture such wagons" sources said.
They said that the cost of the project has also been slashed further, from Rs 4.589 billion to Rs 4.135 billion. The project is likely to be approved by Ecnec in its meeting scheduled to be held on March 26, under the chairmanship of Advisor to Prime Minister on Finance Shaukat Tarin.