Tremendous potential for private sector exists in Pakistan Railways under PPP Model

ISLAMABAD: Pakistan Railway sector offers tremendous potential for private sector participation while bringing improvement for the quality of services for the citizens and business community.

Government has decided to involve private sector participation in the railway system under public private partnership model, said Ghulam Murtaza Satti, Head Infrastructure Project Development Facility (IPDF) during a meeting held here today.

The meeting also discussed status of "Track Access Project" of Pakistan Railways under public private partnership model.

Satti said that IPDF has received interest from more than 15 parties to operate cargo trains for various products on PR's infrastructure on PPP modality.

He further said that Pakistan Railways had been neglected by the previous governments in the past but the current government is working on plans for building strong partnership with the private sector to revamp Pakistan Railways.

Government is fully committed in developing communication infrastructure and modernizing rail networks and already several initiatives have been planned in partnership with the private sector to restructure the railways under the instructions of President Asif Ali Zardari.

He also said that ‘Track Access Project’ will full fill the potential backlog of rolling stock (locomotives and wagons) for the Pakistan Railways.

The project is primarily meant for transport operators, power plants, oil marketing and refinery companies, freight forwarders and cement manufacturers.

The routine operations and maintenance will be undertaken by the private sector, whereby the major overhauling expenditure will be undertaken by Pakistan Railways on cost basis.

He further said that the public private partnership modality is being executed in most of the countries of the world and they have achieved remarkable infrastructure development by involving the private sector under this framework.

"We are focusing on good governance and regulation, while providing an enabling environment for the generation of investment opportunities in Pakistan to harness the private sector as the engine of growth for the economy," he added.

He also appreciated Chairman Railways for his efforts to develop this crucial project with IPDF's assistance.