The government has decided to outsource the commercial management of newly introduced trains to improve their financial viability, it is learnt. Sources revealed to Business Recorder that the Pakistan Tehreek-e-Insaf-led government has introduced 20 new trains so far. All these trains are operating at around 70 percent capacity which increases up to 100 percent on weekends.
Only one train Mianwali Express (175-UP/176-DN) is operating on less than 70 percent of its capacity, said the official, adding that railway administration keeps an eye on all new trains and expect to reach a final decision on the viability of all new trains in 90 days. Out of the newly introduced trains, the bids for outsourcing of commercial management of Rawalpindi Express (109-UP/110-DN), Moenjo Daro Passenger (213-UP/214-DN) and Rohi Passenger (215-UP/216-DN) were called through tendering process to improve their financial viability by December 28, 2018.
According to sources, due to not receiving an encouraging response, the date for submission of bids had been extended till February 14, 2019. Rest of the trains will also be offered for outsourcing in due course of time. All the new trains have been started with old rolling stock and the same operating staff. The passenger segment of railways is loss incurring around the world and the government is cognizant for introducing freight trains to balance earnings in the future.
According to official, the comparison of earning and fuel expenditure depicts that against the fuel cost of Rs 128.422 million, these train have earned Rs 150.435 million during introductory phase up to December 31, 2018. These trains have earned Rs 22.013 million above the fuel cost. Financial analysis of each train is being conducted regularly to determine periodical financial assessment of each train. These trains have been introduced initially for a period of three months on trial basis.
Sources said that cost benefit analysis was conducted prior to starting these trains and comparison of potential earning at 100 percent filing with operational cost. The Mainwali Express will cover its operational cost once it attains patronage of 80 percent, Rawalpindi Express will cover its operational cost once it attains patronage of 60 percent, Faisalabad Express will cover its operational cost once it attains patronage of 67 percent, Rohri Express will cover operational cost once it attains patronage of 112%, percent, Dabehji Express (KD- 1/ KD- 2) will cover its operational cost it attains patronage of 132 percent and Dabehji Express ( KD- 3/ KD-4) will cover its operational cost once it attains patronage of 75 percent.
The operational cost of Rawalpindi Express (109Up/ 110Dn) is currently Rs 152 million per annum. If the train gets the patronage of 62 percent, it can meet with its operational cost. Whereas, the operational cost of Mianwali Express (175Up/ 176Dn) is Rs 138 million per annum and if the train gets the patronage of 82.02 percent, it can meet its operational cost. Rawalpindi Express, (109Up/110Dn) if gets 100 percent filing will generate revenue of Rs 245 million per annum and will get profit of Rs 93 million per annum against its operational cost. Mianwali Express, (175Up/ 176Dn) if gets 100 percent filing will generate revenue of Rs 168 million per annum and will get profit of Rs 30 million per annum against its operational cost.
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