Although, it is a universal fact that rail transport has advantages over road transport, like the bulk movement of passengers and cargo, providing a safe, economical and environment-friendly mode of transport, but with the expansion of road network, growing availability of road vehicles, flexible timings and easy access to originating as well as terminating points, people all over the world now-a-days prefer road transport for distances up to 500 kms.
The railway stations are now difficult pick-up points for passengers as well as cargo and it is more time- and money-consuming to arrange road transport from the terminating point of the railways to reach their ultimate destination.
The statistics of passenger and freight traffic published by Pakistan Railways in their year books do not show a decline in Passenger Kilometers (Passenger Traffic) and Tonne Kilometers (Freight Traffic), but if we view it from another angle by comparing it with the growth of population of Pakistan, then it can be easily concluded that a very little segment of the population preferred or utilised rail transport.
The following chart proves this fact:
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Year Population No of Ratio of Public Ratio
of Pakistan passenger population Goods carried of population
(in Millions) travelled vs (Million Tonnes) vs
(Million) Passengers by Rail Good carried
by Rail
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1980-1985
Averages 84.251 113.474 1.340 8.100 0.096
1990-1995
Averages 110.343 69.084 0.620 6.738 0.061
1995-2000
Averages 136.352 67.964 0.49 5.169 0.038
2008-2009 170.200 82.542 0.48 5.700 0.033
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Source: PR Year Book 2008-2009 & Federal Bureau of Statistics (2010)
The above figures also show that Rail Traffic has not grown with the same pace as the growth of population in our country. Rather it remained very low, and proves that the passenger kilometers as well as tones kilometers earned by Pakistan Railways have drastically dropped.
As per Economic Survey of Pakistan, roads have become the most important segment of transport sector in Pakistan. In 1947, reliance on roads was only 8%, however, currently, it accounts for 92% of national passenger traffic and 96% of freight. However, neglect of other modes of transportation (particularly Railways) in favour of improvement of the road infrastructure has been a prevalent problem in the country's transportation sector.
Following chart shows how rail traffic is losing share over the road. In the year 1996-97, rail had 10.45% share of passenger traffic and 5.17% of freight traffic, which has dropped to 9.95% and 4.72% respectively by the year 2006-07:
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Fiscal Year Passenger Traffic Freight
(Million Passenger Km) (Million Tonne KM)
Road Rail Road Rail
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1996-97 163,751 19,114 84,345 4,607
1997-98 173,857 18,774 89,527 4,447
1998-99 185,236 18,980 95,246 3,967
1999-00 196,692 18,495 101,261 3,753
2000-01 208,370 19,590 107,085 4,520
2001-02 209,381 20,783 108,818 4,573
2002-03 215,872 22,306 110,172 4,820
2003-04 222,779 23,045 114,244 5,336
2004-05 232,191 24,238 116,327 5,532
2005-06 238,077 25,621 117,035 5,916
2006-07 238,821 26,446 110,040 5,453
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Source: Economic Survey of Pakistan 2009-2010
Primarily on account of increasing preference for road transport by passengers as well as goods forwarders over rail transport and owing to a diversion of already scarce resources towards the expansion of the road network, the performance and condition of Pakistan Railways has declined and its share of inland traffic (if compared with the early 70s) has reduced from 41% to 10% for passenger and 73% to 4% for freight traffic.
The above qualitative and quantitative analysis reveals that Pakistan Railways has lost its significance and it is no more an attractive mode of transport. The railwaymen have to realise this fact and forget Railways has absolute benefits over road transport and that the Railways is the biggest mode of transport. It is a requirement today that rail transport is restricted to and enhanced on the corridors where long haul and mass scale traffic both for passengers and freights is available, and where there is sufficient revenue generation to bear the O&M (Operation & Maintenance) cost.
The survival of the rail system all over the world and particularly in Pakistan lies in cutting down its empire to size and diversification of business plans. Pakistan Railways instead of publicising its high profile studies and corporate plans should realistically consider a future strategy and concentrate on favourable revenue generating sections, as well as matters of day-to-day operation and management, rather than consuming energy in futile/wishful exercises.
As per corporate plan, PR has assumed that they will have traffic of 32,800 MPKMs (Million Passenger Kilometers) and 20,529 MTKMs (Million Tonne Kilometers) by the year 2015-16. These assumptions are quite misleading. If we see the trend of traffic for the last 10 years or so (referring to PR Year Book), the PR can hardly achieve 28,000 MPKMS and 12,000 MTKMs by 2015-2016. It is admitted that the PR carried only 25,701 MPKMs and 5,896 MTKMs during 2008-2009 and that the freight traffic has increased only @ 3.75% per annum and passenger traffic increased only @ 3.87 per annum. The Authors of the Corporate Plan have, therefore, based the future traffic forecast purely on wishful thinking by showing an unrealistic increase of 231% in freight traffic and 28% in Passenger Traffic. This can never be achievable.
Now coming to the real solution to save the dying Pakistan Railways and to bring it out of the financial crunch, which primarily lies in the downsizing of the top/middle management, realistic assets management, restriction of train operation to favourable revenue generating routes, besides good governance.
These proposals are elaborated as follows:
Downsizing of top/middle management
The present organisation of Pakistan Railways, particularly the top slots, needs to be critically analysed. A number of higher scale posts, which were created on wishful thinking of the expansion of the railway system, and becoming more professional did not bring any impact on performance. These posts will have to be cut down according to actual requirements and to live within earnings. No business can bear losses by keeping top heavy management. It cannot be justified that on the one hand the PR is losing revenue and on the other hand, they are spending huge amounts of money on salaries and fringe benefits to poorly utilised managers.
A number of departments as highlighted can be closed and merged or cut short to bring them within a reasonable limit. With unbearable losses, there is hardly any justification for the three general managers, three purchase and procurement chiefs, three financial and accounts heads, seven operating divisional superintendents, three chief civil engineers, two chief electrical engineers, four joint directors training, four mechanical project directors in Mughalpura etc. With the reduction of posts of top/middle management, the attached officers in lower management will also be reduced. Besides, a number of departments can be closed/cut to size like; PR Academy Walton, Telecommunication Department, Railway Police, Sleeper Factories, merger of Loco Factory and Carriage Factory under one administrative control etc. Similarly, PRACS and RAILCOP can be merged under one MD and a good number of engineers/transport managers, who are not being fully utilised can be reduced to bare minimum requirement. A newly created department of Project Management Unit (PMU) is also an added burden and most of the railway officers are even not aware of this department, what to say about the utility for which it was created.
A good number of posts of officers can be cut down and officers so released can be adjusted against vacant posts, replacing officers on contract and/or officers promoted on ad hoc. There is no immediate need to reduce the strength of supervisors and workmen, rather they can be utilised on core activities on various divisions.
Realistic assets management
The Railways is a very old organisation and like all such old organisation, they have vast collection of assets, both moveable and immovable. Disposal of surplus moveable property is regularly done but not with full force whereas the disposal of immovable property like Land, Buildings, Railway Lines etc has remained very slow and negligible. A comprehensive strategy will have to be planned for the disposal of condemned railway assets, which will definitely on the one hand generate revenues for the PR and on the other hand, will get rid of unwanted assets, which are causing loss on account of Watch and Ward services, maintenance and occupation of working space besides thefts and pilferages.
In addition, other inactive assets in the shape of locomotives, rolling stocks (the PR has still 236 other coaching stock including saloons), signalling system, overhead electric traction, furnace oil reservoir, powerhouses, buildings, track etc are also a burden on Railways. All such assets have to be identified for getting rid of them to save the expenditure on their Watch and Ward, utilities and thefts, pilferages and encroachments.
In the 70s and 80s, the expansion of railway infrastructure in the shape of Mechanized Marshalling Yard Pipri, Locomotive Factory Risalpur, Carriage Factory Islamabad, Five Sleeper Factories at various locations, Telecommunication System, Railway Academy, Railway Police etc did not bring any fruit like an increase in revenue earnings, efficiency and/or self-reliance. Rather these infrastructures have become a burden on the national exchequer. Without any appreciable productivity, these facilities are being guarded with heavy expenditure on utility bills, maintenance and non-productive employees. More upcoming projects like Increase in the Locomotive Fleet from 520 to 657 (as per PC-1 for Procurement of 150 Locomotives), Doubling of Track between Khanewal and Raiwind, between Shahdara and Faisalabad, Rail Link between Gwadar to Quetta, Peshawar to Jalalabad (Afghanistan) etc also needs reconsideration in view of very little business and revenue generation. All such upcoming projects, if not examined for their productivity and revenue generation, their fate will also be the same as of the infrastructure pointed out above.
Restriction of train operations to favourable revenue-generating routes
The train operation will have to be restricted to long routes and only for mass-scale haulage of passenger as well as cargo. In this regard, an initiative was taken in the recent past to close down uneconomical passenger trains. This has to be continued and a good number of passenger trains of shorter distances and less popular with the public should be closed down to save heavy expenditure on their maintenance and operation. The resources thus saved can be used to run more passenger trains on popular revenue generating routes, particularly the main corridors of Karachi to Lahore, Faisalabad, Rawalpindi and Peshawar as well as Karachi to Quetta, Rawalpindi to Quetta etc. For the people of small towns/villages situated away from the main corridors of the Pakistan Railways, connecting short distance trains can be run matching the time table of the mail/express trains.
The classes of passenger services may also be reduced. The PR is still offering services of First Class Sleeper and Second Class which may be abolished and passenger coaches be converted to Economy Class (non-AC). The Freight Train Services can be improved by restricting to long mass-scale movement of cargo in the shape of container trains, POL movement etc.
The short distance freight services should be curtailed and all mixed trains, which are about 46 numbers may be discontinued. These mixed trains are a big source of leakage of revenue, because of running on unimportant sections, where there is little check by Railways authorities for unauthorised booking of goods and ticketless travelling. Similar is the case with 62 passenger slow trains, which also need to be examined on the basis of train occupancy and earnings, thereby a good number of trains can be discontinued.
Good governance
Besides primary recommendations as above, briefly the areas for the sake of good governance are identified like strict financial discipline, operational discipline, adherence to rules/regulations and diversification of business plans. Without strict financial discipline, no department can survive. Expenditure on a number of activities is against the spirit of the economy/austerity drive. All such expenditure will have to be identified and curtailed to live within means. The VIP culture will have to be curbed. The expenditure on procurement and works should be strictly according to budget and to bare minimum requirement. No expenditure should be incurred on assets, which are inactive and surplus to requirement.
Similarly, strict operational discipline (including observance of operating rules, punctuality, safety and public comfort) is the essence of Railway efficiency.
The PR will have to diversity its business plan realistically and not to build up an image by concocting facts and figures, rather on market demand and revenue generation. In addition to transportation business, the diversification in the field of catering, hoteling, shopping plazas and other commercialisation of property can be considered under the guidance of professionals. This has been done by many rail roads of the world like Japan rail, Indian rail and most of the European rails where they have diversified their business in these fields. Pakistan Railways under an agreement and the financial support of the city governments can run Metro Services in big cities like Karachi, Lahore, Rawalpindi/Islamabad.
The PR will have to live within means as its survival lies in limiting its operation, assets and organisation according to demand and financial health. It is very difficult for the beneficiaries of the rail empire, eg, the serving bureaucracy, including officers on contract, public representatives and other opportunists to accept this reality.
They will not be ready to come out of the glamour and supremacy of the railway kingdom and to agree to shrinkage of the Rail Empire. However, we can hope that the people at the helm of affairs will note these submissions with an open heart and mind for cutting the Rail Empire within manageable limits to bring the PR out of financial crunch.
(The writer is a retired Railways engineer and Member of Chartered Institute of Logistics & Transport Pakistan.)
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