Railways to outsource five more trains

ISLAMABAD: Pakistan Railways (PR) on Tuesday announced the outsourcing of five more trains for Rs10. 75 billion as part of its ongoing efforts to increase private-sector participation in railway operations and improve service efficiency. The PR announced that the commercial management of five trains for Rs10. 75 billion has been handed over to private partners. Earlier, these trains were generating Rs8 billion per annum, which reflects that now the PR will get Rs2. 75 billion in revenue. According to the Railway Ministry, the Awam Express, the Karakoram Express, and the Millat Express services have been handed over to the private partners. Moreover, commercial management of the Narowal Passenger Train and the Mianwali Express has also been transferred to the private sector. According to PR officials, the Ministry of Railways had planned to outsource a total of 15 passenger train services this year, for which the PR has already sought expressions of interest. Officials said the trains would be allocated to eligible companies through an open bidding process. According to reports, several private firms have already been declared eligible to take part in the auction. The trains included in the latest outsourcing plan are the Hazara Express, the Karachi Express, the Fareed Express, the Bahauddin Zakariya Express, the Ravi Express, the Lasani Express, the Thal Express, the Sukkur Express, the Sialkot Express, and the Faiz Ahmed Faiz Passenger train. The outsourcing of all these trains under a public-private partnership is to generate an estimated Rs24. 7 billion annually. Pakistan Railways has made similar attempts in the past to outsource train operations through competitive bidding. However, earlier efforts saw limited participation from the private sector, with bids submitted for only a few trains while several services had failed to attract interest. Officials said the latest move reflected the department’s “continued strategy to modernize operations, improve efficiency, and enhance passenger services” through collaboration with the private sector. According to Pakistan Railways officials, this year so far, Pakistan Railways had generated nearly Rs100 billion in revenue, and it was striving to reach around Rs122 billion. Pakistan Railways is also pursuing commercialization of various coaching and station-related services, including dining cars, kitchen portions, parking stands, platform tickets, kiosks, restaurants at major stations, station branding, billboards, and other commercial activities. These measures aim to create additional revenue streams and ensure optimal utilization of available assets. Officials said that the expansion of PR freight operations is under consideration through new commodity-based freight services, including edible oil and automobile trains, expected to commence by December 2026. Extensive marketing campaigns and business development efforts are also underway to increase freight volumes and capture a larger market share. These efforts are expected to help PR achieve estimated Rs38 billion freight revenue. According to the Railways Ministry officials, PR has outsourced 41 luggage and brake vans, boosting revenue from around Rs1 billion to Rs6billion over the last five years. In the freight sector, the railways currently transport approximately 22, 000 tons of cargo daily via nine freight trains, generating an average daily revenue of about Rs151 million. Referring to past performance, officials said PR had recorded a revenue of Rs93. 601 billion during FY2024-25, driven by enhanced efficiency, improved resource management, growth in core business activities, and strict financial discipline. Operating expenditures were contained at Rs91. 184 billion through austerity measures and tighter financial controls, resulting in an operating surplus of Rs2. 417 billion. Copyright Business Recorder, 2026

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