Chairman Railways Shahid Hassan has said the first public-private joint venture Prem Nagar Dry Port near Riawind on Lahore-Sahiwal section with an estimated cost of Rs 1729 million would be very beneficial both for the people and the department.
While addressing the opening ceremony of the port here on another day, he said the private sector should come forward to invest in Railway Open Access Policy( ROAP). The first train loaded with 60 containers arrived at the port on Friday.
Ashfaq Ahmad Khatak, General Manager Operations and high officials of the department and the companies General Managers were also present on the occasion.
The Dry Port is the first joint venture of the PR, Premier Mercantile Services and Qasim International Container Terminal financed Rs 494 millions, Rs 660 million and Rs 575 millions respectively in the project. The railway administration believed that the port would provide easiest and cheapest access of transportation of goods to the Sundar Industrials Estates which is located near the port.
The Chairman said the department would further introduce public-private projects to increase earning and curtail financial losses. In this regard, he added the dialogue with two other companies were under process. Shahid said the focus of the railway administration would be on running freight trains so that the business community could be facilitated and the department overcame shortage of funds. Initially, tow trains in week would arrive at the port but within the next five-year trains on daily basis would be operated ,he maintained.
When asked , he said that one freight train between Lahore and Karachi approximately earned about one billion rupees per annum adding that the future of the department was bright and it would operate dozens of mail express and freight trains in coming days. In response to a question,he said that shortage of locomotives was a major problem faced by the department and as soon as Rs 11.1 billion in grant was received, the shortage would end and the department could be able to operate more trains
It may be mentioned here that Prem Nagar Dry Port is being operational after the long delay of one and half year. The Competent authorities had given the operational date of the project June 2009 that is being constructed about 140 acres land near Raiwand
According to the agreement documents made available to Business Recorder,Pakistan Railways had acquired 100 acres of land at Prem Nagar Railway Station for the new dry port at a total cost of Rs 122.788 million. Out of the total investment of Rs 1729 million, Pakistan Railways had contribute about Rs 494 million, QICT about Rs 575 million and PMS Rs 660 million. The joint venture agreement is on Build, Operate and Transfer (BOT) basis. The land will be handed over to QICT and PNS, 30 acres each, on lease for 35 years for setting up their own Inland Container Depots, he added. According to the agreement , the title of ownership of 100 acres of land will rest with Pakistan Railway.