Reko Diq project: Co asked to share logistic requirements

ISLAMABAD: A federal government panel has asked Reko Diq Mining Company (RDMC) to share their logistic technical requirements of the project like initial and peak volume to be transported, power, gas and water as the company is unwilling to use Gwadar Port for the time being, well informed sources in Planning Commission told Business Recorder.

Sharing details, the sources said, in compliance with the decision of project Support Team on Reko Diq a meeting of the Sub Committee under the chairmanship Member (I&M), Planning Commission, General Zahir Shah was held on December 27, 2023, which was attended by all stakeholders including Country Director, Reko Diq Mining Company (RDMC) and their consultant for Railway connectivity, Eric Peiffir.

Country Director, RDMC informed the participants that after studying facilities available at port Qasim, they support transport of the load via Railway line (ML1 & ML3) and export it from Port Qasim.

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In this regard they have been in contact with Pakistan Railway since March 2023 and their consultant has carried out initial survey of railway link from port Qasim to project site using the existing railway network and a feasibility study in this regard has been initiated.

Eric Peiffer informed the participants that they have recommended RDIVIC to construct a branch railway line from Noukandi to project site and use the existing railway route Noukandi-Rohri-Karachi (ML3 and MLI).

Further RDMC should invest in their own dedicated rolling stock (locomotive and wagons) and use of special type of containers.

Keeping in view the volume to be transported they foresee movement of two trains of twenty wagons each per day, which will increase to five trains a day with turnaround time of 6 days.

In order to complete the feasibility study, they have requested Pakistan Railway to provide the profile of the existing track along with capacity of the line (Noukandi-Rohri-Karachi (ML3 and ML 1)) and operational plan, so that bottlenecks can be identified for upgrading the track.

Member (Infra), Planning Commission informed the committee that SIFC had given direction to work out the connectivity of District Chaghi to Gwadar port, whereas the load of Reko Diq project is being proposed to be transported via rail network to port Qasim.

In this regard, country Director RMDC informed that as per project timelines, the project will have financial close by March 2025 whereas at present Gwadar port does not have a bulk container terminal and has limited ship traffic.

Under the present circumstance it would not be feasible for them to use this port, where as in the long-term plan they would prefer using Gwadar port when the situation improves.

Further that transportation by road will not be feasible, as existing Quetta-Karachi (N-70) section is already overloaded and keeping in view the volume to be transported the only workable solution is to use existing railways network which will require upgrading at an approximate cost of $200 million.

Secretary Railway Board highlighted the impediments of transportation on ML1 and ML-3. He informed that ML1 is already overloaded with a mix of traffic including passenger and freight trains as such the allied capacity on the section is already limited.

Further there are many operational issues on ML-3 (Rohri-Quetta), as different sections have a step gradient (1 ft to 50 ft up or down) which limits the load carrying capacity to only 300 tons per train, with maximum speed limitation of 30 Km/ hour. Resultantly, load will be required to be transported piece-meal and then assembled at different stations.

Further, in this section Banking Locomotives (one leading and one pushing) are used which increased the operational cost. These operational issues will increase the turnaround time by more than 10 days, resulting in considerable increase in rolling stock.

Further that 400-Km section from Noukandi needs considerable upgrading. Even with the upgrading/ rehabilitation these impediments are likely to stay.

Secretary, Railway Board, noted that distance from Noukandi to Karachi port is more than 1,100 km, where as a direct route from Noukandi to Gwadar port will have a length of nearly 670-km. Keeping in view the volumes to be transported in next 45 years, there will be a huge operating cost if Port Qasim is used as compared to Gwadar Port. As such the route to be used in medium term and long term needs to be finalised on these bases.

Further that when a new route is being designed, it can be tailor made as per requirements, whereas upgrading of the existing route has its limitations.

On road connectivity (Gwadar to Noukandi), Member (IRC), Planning Commission stated that Noukandi-Mashkel section is already under construction with 55% progress. PC-1 for Mashkel-Panjgur section has been received and is under process in MoPD&SI. Further that the PC-1 for upgrading/ carpeting of Panjgur to Gwadar section will be processed, when volume on these sections increase.

During discussion on power requirements, representative from NTDC informed the Committee that as per information provided by RDMC, initial requirements will be 150 MW (2028), which is likely to be increased to 300 MW by 2031. Further they plan to generate 150 MW through furnace oil and 25% of their electricity requirements through solar energy.

In order to connect the project site to National Grid, they have carried out studies for following three routes: (i) Dadu-Khuzdar- Panjgur-Reko Dig transmission line, length 880-Km with approximate cost of $385 million; (ii) connection from China Hub-Awaran-Panjgur-Reko Diq transmission line, length 820-km, approximate cost $405 million and;(iii) Mustang-Dalbidin-Reko Diq transmission line, length 530-km, approximate cost $ 320 million.

After detailed discussion, the meeting decided that Country Director PDMC may share with the Committee technical requirement of the project, i.e., initial and peak volume to be transported, power, gas and water.

Country Director RDMC has also been asked to provide details of their technical requirement to Pakistan Railway, along with volume to be transported on existing railway network (M1/ML3) (Karachi-Rohri-Noukandi).

Based on requirements provided by RDMC, Railway Division will work out upgrading requirements, operational issues, volume of trains that can be added to existing traffic of ML-1, along with turnaround time based on existing and upgraded ML-3.

Railway Division will also share feasibility study for Panjgur-Gwadar railway link. Based on volume to be transported by RDMC, Railway Division will carry out Feasibility Studies for upgrading of existing Karachi-Rohri-Noukandi (ML1/ML 3) and Gwadar-Noukandi rail link.

A Sub working group for railway connectivity, which will include Member (I&M), Planning Commission, Member (IRC), Planning Commission, Country Director RDMC, Secretary Railways Division and Secretary Railway Board will meet after every two weeks to review progress and resolve bottlenecks.

Power Division is tasked to submit their best option for electricity connectivity to Reko Diq project site with time lines by January 8 (tomorrow).

On receipt of specific requirements, Committee under the chairmanship of Member (I&M) will hold meetings with relevant stakeholders on power connectivity, gas connectivity and water requirements for the project.

Copyright Business Recorder, 2024