EDITORIAL: Even after all the problems the Railways has faced since the Pakistan Tehreek-e-Insaf (PTI) government took over it seems that the ministry has finally put together an action plan of sorts aimed at cutting unnecessary costs and improving overall efficiency. Yet while the federal railways minister, Sheikh Rashid, must be credited for working on reforms it must not be forgotten that the programme he's so excited about has taken its sweet time coming, and everybody will now be looking to see how he honours some of his rather bold promises. Shifting half the Railways headquarters to Karachi seems like a smart idea since the port city is, in his own words, the railways freight and passenger hub, even though calling Lahore "only a debating club" might be going a little too far. The thinking is right and it is something of a surprise, come to think of it, that this decision did not come a lot sooner. Once the main work centre moves closer to the real action it is only natural for it to function in a better and more coordinated manner.
It is also smart thinking to want to give train system operations to private parties to try and improve efficiency and check corruption. Clearly, the government does not have the capacity to trim the budget as needed for too many reasons to explain all at once. And operations constitute, after all, the most fertile ground for fraud for personal gain in most public departments. So it is best give it over to those whose only concern is profit maximisation (while ensuring that they employ best practices) and they will do whatever is necessary, including chopping off dead wood and throwing out corrupt officers, to get the job done. If this works nicely it could set the standard for more private sector involvement in State-Owned Enterprises (SOEs) to improve project delivery. Six passenger trains were allotted to private parties on Monday and there's a good chance that 17 more will also be handed over soon. 500 freight coaches have also already been transferred with 400 more to follow. All this is very nice and makes for the perfect headlines but the real test will come now because these initiatives will have to deliver results on the ground in order to justify all the expectations and what could be taken for premature praise. Making something look nice on paper is one thing but considering the unimpressive history of the railways ministry especially when it comes to meeting important deadlines, one can only be certain of something when one sees it.
The main line (ML-1) project seems to be the game changer. That's why the minister said that when the $6.8 billion tender is floated soon, it "will revolultionise the railway service of Pakistan." That 90 percent of all jobs created will go to Pakistanis, about 150,000 in all, and China would pay for all of them is welcome news indeed considering that it will transform the infrastructure all the way from Karachi to Peshawar as well. We're told that the Karachi Circular Railway (KCR) project will also pick up speed now since Rs1.8 billion out of the earmarked Rs10.5 billion has already been released and nine out of 14 kilometers of track planned for revival in the first phase has already been cleared.
Perhaps the only thing missing from what is a very fine plan is the realisation that railways tend to run in profit when the goods to passenger bogey ratio is something like six to one. So for things to really turn around this balance would have to be restored. Unfortunately, the railways ministry has long been in the habit of focusing on passenger trains for reasons related to popularity with people. Goods then need to be transported by road, which takes a heavy toll in terms of damage to highways, waste of funds, traffic jams, and all that. Now that Sheikh Rashid has made it something of a mission to improve the working of Pakistan Railways, and rightly so since that is his duty, he should make sure that this very important aspect is not left out of his turnaround plan. They can improve operations and overhaul infrastructure, which are big steps in the right direction, but they will still keep struggling till the institution is returned to profitability. And while they are at it, they must employ some of the tried and tested methods that have worked around the world.
Copyright Business Recorder, 2020
Comments
Comments are closed.