Published on January 23, 2013
PROJECT PRESENTATION: PROJECT PRESENTATION HAILEY COLLEGE OF BANKING & FINANCE, PU, LAHORE PowerPoint Presentation: Course Instructor: ECONOMY OF PAKISTAN GROUP MEMBERS: GROUP MEMBERS What is Rail Transport?: What is Rail Transport? Conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. And it is categorized as primary mode of conveyance. Its Consisted on: Freight Passenger PRE-STEAM Railway System Era.: PRE-STEAM Railway System Era. On 26 July 1803 World’s first public railway Was Opened by Jessop with the name of the surrey iron railway in south London which was Drawn by horses. AGE OF STEAM: AGE OF STEAM The development of the steam engine during the Industrial revolution in the United Kingdom spurred ideas for mobile steam locomotives that could haul trains on tracks in the 1820s, which made use of steam locomotives was first practical form of mechanized rail transport and remained primary form of mechanized land transport for next 100 years. ELECTRIFICATION AND DIESELIZATION SYSTEM: ELECTRIFICATION AND DIESELIZATION SYSTEM Experiments with electrical railways were started by Robert Davidson in 1838. He completed a battery-powered carriage capable of 6.4 km/h (4 mph). After World War II, dramatically increased labor costs in developed countries made steam an increasingly costly form of motive power. At the same time, the war had forced improvements in internal combustion engine technology that made diesel locomotives cheaper and more powerful. This caused many railway companies to initiate programs to convert all un-electrified sections from steam to diesel locomotion. HISTORY OF RAILWAYS IN SUB- CONTINENT: HISTORY OF RAILWAYS IN SUB- CONTINENT History of Railways in Sub-continent: History of Railways in Sub-continent IDEA-1847 Sir Henry Edward Frere, appointed as the Commissioner of Sindh , sought permission from Lord Dalhousie to begin a survey for a Karachi Seaport and a railway line in 1858. On May 13th, 1861 the first railway line was opened to the public, between Karachi (city) and Kotri, with a total distance of 105 miles (169 km). PAKISTAN RAILWAYS: PAKISTAN RAILWAYS At the time of independence , 1,947 route miles (3,133 km) of North Western Railways were transferred to India, leaving 5,048 route miles (8,122 km) to Pakistan. VISIONARY STATEMENTS: VISIONARY STATEMENTS Our MOTO Safety first and Always Mission Statement To provide a safe reliable , modern, efficient and cost effective infrastructure to its customers: to contribute in building the economy of Pakistan and to look after the welfare of its employees. Pakistan Railways: Salient Features: Pakistan Railways: Salient Features Head quarter in Lahore. Stretched over 8000 km. Important mode of transport. Administer under federal Government, ministry of railways. Vertically integrated organization. It has an annual revenue of around Rs.18.6 Billion (2010-2011) PAKISTAN RAILWAYS: PAKISTAN RAILWAYS MINISTRY & ORGANIZATIONAL STRUCTURE MINISTRY OF PAKISTAN RAILWAY: MINISTRY OF PAKISTAN RAILWAY Personnel in railway board: Personnel in railway board The Railway Board (RB) is the highest governing body for technical matters of the Railways and Ministry of Railways, which stands merged with the Division. PERSONNEL IN RAILWAY BOARD: PERSONNEL IN RAILWAY BOARD The following list includes the officers and government appoint bureaucrats reporting directly to the Secretary Railways: General Manager of Railway Operations (GM Operations) General Manager of the Manufacture and Railway Services (GM of Manufacture) Government Inspector of Railways (GIR) Director of the Railways Marketing (DRM) Director-General of Vigilance Department\ (DG Vigilance) PAKISTAN RAILWAYs DIVISIONS: PAKISTAN RAILWAYs DIVISIONS Personnel and Functions President Mr. Imtiaz Ahmad PAKISTAN RAILWAY DIVISION: PAKISTAN RAILWAY DIVISION Railway Division is responsible for overall control of Pakistan Railways as well as to guide the overall policy. There are four (4) Directorates in this Division namely Administrative Directorate, Technical Directorate, Planning Directorate, and Finance Directorate. DIVISIONS IN PAKISTAN RAILWAY: DIVISIONS IN PAKISTAN RAILWAY Currently Pakistan Railway has Seven Divisions: Lahore Multan Rawalpindi Karachi Sukkur Peshawar Quetta Functions of the Railway Division: Functions of the Railway Division All matters pertaining to Pakistan Railways. Movement and priority in respect of Defense traffic. Maintenance of Railway lines for strategic reasons. Negotiations with International Organizations and other Countries and implementation of agreements, with them. Coordination of Development Projects of Railways as a part of the National Development Programme. Standardization and specifications of materials and stores. Overall efficiency and safety of Railways. Coordination of Rail movements into and from Ports Ahsan riaz: Ahsan riaz That’s all from my side Further Proceeds M11MBA054 Pakistan Railway: Pakistan Railway A Country insides Country Pakistan Railways: Country Insides Country: Pakistan Railways: Country Insides Country Pakistan Railway comprises 7,791 route km 707 stations and 37 trains halts. 563 diesel electric locomotives 25,815 wagons and 1,623 passenger coaches. More than 85000 Employees PAKISTAN RAILWAY has its own : PAKISTAN RAILWAY has its own Housing Colonies Hospitals Schools, Colleges and a University Law Court with its own Magistrate. Own Electricity Production Unit (Shuts down) Own PSTN and Wireless Telephonic Network. Provides Free Sui Gas to Railway Colonies but now PR is charging due to misuse of consumers. Most Employees than any Pakistani Organization. Railway Police Water Supply Revenue Department Owned Huge Land Property(167,690 Acres). Manufacturing & Services Unit: Manufacturing & Services Unit Headed by the General Manager Manufacturing & Services. This unit is composed of: 1 . Concrete Sleeper Factories, ( CSF ) 2 . Carriage Factory. Islamabad, ( CFI ) 3 . Locomotive Factory, Risalpur. 4 . Rehabilitation Project, Moghalpura Lahore . 5. Medical and Health Service . 6. Railway Construction Company ( RAILCOP ) 7 . Pakistan Railway Advisory & Consultancy Services ( PRACS ) 8 . Educational Facilities. Maintenance and Repair workshops: Maintenance and Repair workshops Maintenance is provided by three major locomotive workshops and thirty-five smaller workshops. Carriage And Locomotive Workshops Mughalpura. (Historical Background) Central Hub of Railway Workshops Department : Carriage And Locomotive Workshops Mughalpura. (Historical Background) Central Hub of Railway Workshops Department Locomotive Workshop, Risalpur: Locomotive Workshop, Risalpur Manufacturing Capacity: PHA 2000 Horse Power Engines 3000 Horse Power Electric and Diesel Locomotive. Locomotive Spare Parts. Repairing Carriage Workshop, Rawalpindi: Carriage Workshop, Rawalpindi Ability to Manufactures Freight and Pas s enger Wagons. Sleeper Factory, Khanewal, Jehlum & Sukkur: Sleeper Factory, Khanewal , Jehlum & Sukkur Track Rehabilitation & Improvement Workshops: Track Rehabilitation & Improvement Workshops Build Up with the cost of Rs. 256 Millions Kohat Shahinabad Kotri Khanewal RAILWAY ACADEMY: RAILWAY ACADEMY WALTON SIGNALLING SYSTEM: SIGNALLING SYSTEM Signaling facilities at important stations are track circulated within interlocking limits. Radio and telephonic communication: Radio and telephonic communication Most routes have VHF radio coverage for communication between train dispatchers and trains. Telephone Communication is over wire lines and microwave. DOMESTIC ROUTES OF PAKISTAN RAILWAY: DOMESTIC ROUTES OF PAKISTAN RAILWAY FIVE MAJOR DOMESTIC ROUTES MAJOR ROUTES OF PAKISTAN RAILWAYS: MAJOR ROUTES OF PAKISTAN RAILWAYS The total length of railway tracks in Pakistan is 5,072 miles (8,162 km). The busiest routes include: Peshawar-Karachi Route (Main Line) Peshawar-Quetta Route (Branch Line) Lahore-Sialkot Route (Branch Line) Lahore-Faisalabad Route (Branch Line) Faisalabad- Khanewal Route (Branch Line) Double Track System: Double Track System Double line track consist of 1,043kms: Electrified Section: Electrified Section The 274 km (170 mile) section between Lahore and Khanewal and Lahore to Mughalpura (23 Km) was electrified. But due to downfall now currently Pakistan Railways have no Electrified Sections. International ROUTES: International ROUTES Iran India China Turkey Afghanistan Turkmen istan INTERNATIONAL ROUTES: INTERNATIONAL ROUTES CURRENT Pakistan India International Route is Most Operative. ( Samjhota Express). Pakistan Iran is also Operative route to the Zahidan City Iran PROPOSED Pakistan to Turkey via Iran Pakistan to China Pakistan to Afghanistan & Turkmenistan SYED MUHAMMAD OUWN RAZA: SYED MUHAMMAD OUWN RAZA Over To M11MBA046 Traffic of Pakistan Railways: Traffic of Pakistan Railways PASSENGER AND FREIGHT PASSENGER TRAFFIC: PASSENGER TRAFFIC Passenger traffic comprises 50% of the total revenue annually. Pakistan Railways carries 65 million passengers annually and daily operates 228 mail , express and passenger trains. Daily, PR carries an average of 178,000 people. Pakistan Railways also operates special trains during occasions such as Eid - ul - Fitr , Eid - ul - Azha and Independence Day. Pakistan Railways also operates special trains during occasions like congregations of the Dawat -e- Islami . CLASSES OF PASSENGER TRAFFIC: CLASSES OF PASSENGER TRAFFIC 1. Air-Conditioned Sleeper 2. Air-Conditioned Parlor 3. Air-Conditioned Business 4. Air-Conditioned Lower 5. First Class Sleeper 6. Economy FREIGHT TRAFFIC: FREIGHT TRAFFIC The Freight Business Unit, with 12,000 personnel, operates over 200 freight stations on the railway network. The Unit serves the Ports of Karachi and Bin Qasim as well as all provinces of the country. The Freight Rates structure is based on market trends, particularly of road transport, which is the Railways' main competitor. Public-Private Partnership In Pakistan Railways: Public-Private Partnership In Pakistan Railways The Pakistan Railways and a private company will be signing on December 6, 2011 Two Trains are privatized: Shalimar Express and Pak Business Express The company would be responsible for the provision of facilities to passengers on board the train. It would develop its infrastructure on the PR network exclusively for the passengers of the new train, said the official. Private Companies Four Brothers Association Air Rail Service PRIVITIZED TRAIN: PRIVITIZED TRAIN PAK BUSINESS EXPRESS COMPANY : FOUR BROTHERS ASSOCIATION PRIVITIZED TRAIN: PRIVITIZED TRAIN SHALIMAR EXPRESS COMPANY: AIR RAIL SERVICE(ARS) Economic highlights: Economic highlights Survey Report 2011-2012 ECONOMIC HIGHLIGHTS 2011-12: ECONOMIC HIGHLIGHTS 2011-12 Ministry of Railways has also adopted a “Track Access Policy” for private sector participation to operate freight and passenger trains on Pakistan Railways infrastructure . ECONOMIC HIGHLIGHTS 2011-12: ECONOMIC HIGHLIGHTS 2011-12 Ministry of Railways has created a “Real Estate Development and Marketing Company” as subsidiary of Ministry of Railways. ECONOMIC HIGHLIGHTS 2011-12: ECONOMIC HIGHLIGHTS 2011-12 Six factories including Locomotive Factory Risalpur, Carriage Factory Islamabad, and four Concrete Sleeper Factories in Kohat , Khanewal , Sukkur and Kotri, are being corporatized for eventual privatization subject to approval of the government. ECONOMIC HIGHLIGHTS 2011-12: ECONOMIC HIGHLIGHTS 2011-12 Cabinet Committee of Restructuring has approved a restructuring framework for Pakistan Railways . During the last financial year, 16 kms of track was rehabilitated on Pakistan Railways network besides doubling more than 15 kms of track. Renovation of Khudian Khas , Usmanwala , Raiwind and Kanganpur railway stations was carried out at a cost of Rs. 24.0 million to improve facilities for the passengers . ECONOMIC HIGHLIGHTS 2011-12: ECONOMIC HIGHLIGHTS 2011-12 52 new design passenger coaches were imported from China at a cost of Rs. 4.1 billion. Remaining 150 passenger coaches will be manufactured at Pakistan Railway Carriage Factory Islamabad by June 30, 2013. In addition, 22 passenger coaches have been rehabilitated at Pakistan Railway Carriage Factory Islamabad during last year. A new dry port was set up at Prem Nagar near Raiwind industrial area, Lahore through Public Private Partnership at a cost of Rs. 494.0 million. Current Status Of Pakistan Railway: Current Status Of Pakistan Railway The unbundling of Pakistan Railways into core business units (Infrastructure, Freight and Passenger) is under process Managing Directors (MD) for the three core business units Infrastructure, Freight and Passenger have been appointed. A notification for the operation of the core business units and delegation of powers to the MDs has been issued. Accounting separation and segregation of assets is being formalized. Non-core assets will be evaluated and prepared to be sold through open auction. Regulatory environment is being established. Adeel saeed: Adeel saeed M11MBA024 COMPARISON OF PAKISTAN RAILWAYS: COMPARISON OF PAKISTAN RAILWAYS US RAILWAYS: US RAILWAYS Speedy Luxury Classy RUSSIAN RAILWAYS: RUSSIAN RAILWAYS Russia’s most profitable company (extensively spread to remote areas) CHINA RAILWAYS: CHINA RAILWAYS High speed railway technology (bullet trains) Comparison: Comparison Indian Railways Pakistan Railways PowerPoint Presentation: Indian Railways Pakistan Railways 39,901 miles of track 7791 km of track 7,083 stations 986 stations Passengers carried daily30 million Passengers carried daily7 million Employees 1.6 million Employees 86,096 Own (freight) wagons 230,000 Own (freight ) wagons 20,809 Coaches 60,000 Coaches 1,904 SWOT ANALYSIS: SWOT ANALYSIS STRENGTS WEAKNESSES OPPORTUNITIES THREATS PowerPoint Presentation: STRENGTHS Potential customers Human resource Monopoly Savings In Travel Time. Speed And Certainty. Safety Reducing Air Pollution And Preserving The Environment. Encouragement To Tourism. Employment. Convenient & comfortable. WEAKNESSES Leadership Over emplacement No proper check of tickets In-efficiency of staff Financial Position. Passenger Reservation. Railway Budget. Mismanagement. No Contribution Towards Economic Growth. Operational Inefficiency. PowerPoint Presentation: OPPORTUNITIES Reservation offices have been planned to be computerized. Demanding customers Al ready setup tracks Economic cost Promotion to national integration THREATS Expenditures Uncontrolled loses Expenditures are high Customer move to alternate options. CORRUPTION Adverse Affects For The Economy. Threat To Trade. Transportation services. PEST ANALYSIS: PEST ANALYSIS PEST ANALYSIS: PEST ANALYSIS POLITICAL FACTORS Adverse Political Conditions and Instability. New investors are now more reluctant . Threatened foreign companies. Government is reluctant to Subsidize. ECONOMIC FACTORS Fares of railways are increasing due to: Increasing inflation New taxes Rising fuel charges PEST ANALYSIS: PEST ANALYSIS SOCIAL FACTORS Stakeholders’ Attitudes Desires Expectations TECHNOLOGICAL FACTORS Electrical Locomotives New railway tracks Online ticketing Social & Economic Impact of the Pakistan Railways : Social & Economic Impact of the Pakistan Railways How Railways Can Create Jobs. PowerPoint Presentation: Social & Economic Impact of the Pakistan Railways People became more interested in politics & this led to the growth of political parties People were able to travel greater distances for leisure & to work Seaside towns developed; the railways made cheap day trips possible Newspapers could be sent from Pakistan all over the country. Railway engineering towns grew up , Fish & Mutton Industry grew, because the railways needed coal & iron; railways in turn allowed factories to transport their goods to markets. Townspeople were able to receive meat, fish, milk and vegetables brought in whilst they were still fresh by the railways. First Class Mail The Post was speeded up PowerPoint Presentation: How Did Railways Create More Jobs? Railways make the moving of goods cheaper. Goods can now be sold for less. More people can afford to buy these goods More goods are sold & so more need to be produced. Businessmen employ more workers. More people with jobs means … This is called the Cycle of Productivity! Decline in pakistan railways: Decline in pakistan railways Decline Of Pakistan Railways: Decline Of Pakistan Railways Over the years, lack of attention, poor policies, increasing expenditures, misappropriation of funds, pilferage, nepotism and most recently, the floods have left the Railways with huge deficits running in billions of rupees. In 1990, the government appointed an officer from the Civil Services of Pakistan chairman and from then on there has been a rapid decline not only in performance but also the balance sheet of the organization. Decline Of Pakistan Railways: Decline Of Pakistan Railways Till 1990, the carriage factory in Islamabad was exporting freight wagons and coaches to Sri Lanka and Bangladesh, in addition to meeting local requirements. Rather than augmenting this facility, the lure of kickbacks has resulted in its virtual shut down and orders were placed for import of carriages. Although Moghalpura has facility to produce High Capacity (HC) wagons, the same were imported from China. These imported wagons have the handicap that they cannot ply on branch lines because of axle load limitations. Decline Of Pakistan Railways: Decline Of Pakistan Railways Pakistan Railways had compatible locomotives from GE, Hitachi and other companies – all with different axle loads but compatible with the railway tracks. Main line tracks have the capability of handling a load of 22 tons per axle, while branch lines can sustain 16.5 tons per axle. Out of 522 total engines only 220 are in working order, out of which 100 are in poor condition. MUHAMMAD USMAN SAEED: MUHAMMAD USMAN SAEED M11MBA074 KEY FINANCIAL ANALYSIS OF PAKISTAN RAILWaYS: KEY FINANCIAL ANALYSIS OF PAKISTAN RAILWaYS DECLINE IN TRAFFIC: DECLINE IN TRAFFIC Current operational position: Current operational position On the Basis of Financial Analysis CURRENT OPERATIONAL POSITION : CURRENT OPERATIONAL POSITION Faces deficit of Rs 26252.315 Millions Shortage of locomotives No freight trains Half of locomotives are out of order Communication system is out dated Track is over aged Borrowed 40 billion from state bank Paying 4.6 billion as a interest to SBP Revenue declining consecutively Problems BEING FACED BY PAKISTAN RAILWAYS: Problems BEING FACED BY PAKISTAN RAILWAYS Factor’s Decreasing Productivity: Factor’s Decreasing Productivity Soaring Budget Deficit Biggest problem Unnecessary departments Mismanagement Low managerial and technical efficiency Shortage of Locomotives Unable to generate revenue Maintenance of Asset Corruption Contractor system PRACS(Pakistan Railways Advisory Commute Services ) Eroding Market Share Shutting down operations Indifferent attitude of governments Growing operating subsidies Lack of equitable fare structure Low service quality Widespread state ownership Waiting for a Bailout: Waiting for a Bailout Prime Minister approved Rs. 11.5 billion as a bailout package for Pakistan Railways. But the finance ministry refused to grant Rs5 billion saying it could not provide further subsidies to Pakistan Railways seeing as it is already suffering huge losses . Mismanagement, Corruptions and Scams: Mismanagement, Corruptions and Scams According to Chief Justice Pakistan “Ninety metric tons of silver worth millions was sold for mere Rs28,000 as scrap, while a light bulb worth Rs60 is being purchased at Rs400, whereas absence of maintenance turned expensive locomotives into junk one by one, besides a Grade-18 officer, a blue-eyed boy of the railways minister, is promoted to hold a Grade-20 post of secretary purchase.” Condition Of Employees: Condition Of Employees Pakistan Railways has about 90,000 employees consisting of staff and officers. Employees are taking salaries without working and sitting idle at home. More than Rs.20 billion is allocated for salaries and pensions. Employees have very strong unions so it is difficult for Government to fired them. Disasters : Disasters The recent floods have caused a loss of Rs.6.7 billion to the railway network. 1000 Million Loss faced by railways through attack of angry mobs on assassination of a Political Party Head in 2009 at Sindh . SOLUTIONS TO THE PROBLEMS: SOLUTIONS TO THE PROBLEMS SUGGESTIONS AND RECOMENDATIONS Recommended Solutions: Recommended Solutions Privatization Of Railway: Privatization Of Railway Privatization places the risk in the hands of business or Private Enterprise. Private enterprise is more responsive to customer complaints and innovation. The Govt. should not be a player and an umpire. PAKISTAN RAILWAYS COOPERATION WITH CHINA: PAKISTAN RAILWAYS COOPERATION WITH CHINA PR Co-operation with China: PR Co-operation with China China is actively involved in the development. China is to export 69 modern locomotive engines to Pakistan. The first 15 engines will be manufactured in China and the remainder will be assembled in Pakistan, with spare parts and technology provided by China. Restructuring Pakistan Railways: Restructuring Pakistan Railways Time is important to the customers. The seat reservation system should be made online. The first line staff should be trained. Railways service center should be initiated. Proper information should be provided to the customers. MODERNIZATION IN PAKISTAN RAILWAYS: MODERNIZATION IN PAKISTAN RAILWAYS Procurement of 1400 high capacity wagons; Procurement of 50 wagon movers; Introduction of Management Information System; Improvement and Rehabilitation of track to cater for high speeds; Telecommunication and Signaling Network on main and important branch lines. STRATEGIC Goals to rehabilitate pakistan railway: STRATEGIC Goals to rehabilitate pakistan railway GOAL A: Ensure availability of sufficient railway engines. Ensure availability of sufficient passenger coaches. How? Repair and Manufacture old engines & Wagons at railway workshops instead of Import. GOAL A According to Ex minister Railway Sheikh Rashed Ahmad:: According to Ex minister Railway Sheikh Rashed Ahmad: “If we can make Atom Bomb then How it can be difficult to manufacture Railway Locomotive to us? If you cannot, then why you have appointed Engineers?” A railway Engine Repaired so efficiently which was categorized as scrap at Quetta Railway factory.: A railway Engine Repaired so efficiently which was categorized as scrap at Quetta Railway factory. We Have Potential Goal B:Time Efficient: Goal B: Time Efficient Task the station managers to start train on time. Conduct study to determine appropriate time duration for each time route. GOAL C: Repairing and Manufacturing: GOAL C: Repairing and Manufacturing Training workshops to enhance capacity of Pak railway engineers and technicians. Routine maintenance schedules to be strictly followed. Purchased required railway spare part from open market (domestically). Goal D: Goal D Regaining the freight traffic Market. CONCLUSION: CONCLUSION Pakistan Railway is lifeline of country and it is primary source of transportation not for only common person but also for military movements. It needs perfect concentration by policy makers to save it for economy of Pakistan.