LAHORE: Six parties have submitted proposals to operate four passenger trains under the public-private partnership policy of Pakistan Railways.

A decision to involve the private sector in the operation of Khushal Khan Khattak Express, Bolan Mail, Fareed Express and Hazara Express had been taken with the objective to further facilitate travellers, a railways officer of the commercial wing told Dawn on Wednesday.

Khushal Khan Khattak Express runs between Karachi and Peshawar through Jacobabad, Kot Adu and Kundian; Bolan Mail between Karachi and Quetta through Kotri and Larkana; Hazara Express between Karachi and Havelian through Khanewal, Jhang, Lala Musa while Fareed Express between Karachi and Lahore through Pakpatan.

Pakistan Railways Advisory and Consultancy Services (PRACS), a subsidiary of the railways, M/s Abdul Qayyum Mazari Company, Shalimar Group, AA Enterprises, Jamil and Company and Sarfraz Company submitted single-stage two-envelope bids on April 26.

The benchmark was fixed at 75pc of the carrying capacity of each train’s composition.

“The PRACS has expressed interest in Khushal Khan Khattak Express, M/s Abdul Qayoom Mazari Company in Bolan Mail, while M/s Shalimar Group, AA Enterprises, Jamil and Company and Sarfraz Company are vying for Hazara Express and Fareed Express,” said the officer.

Comprising the deputy chief marketing manager, deputy chief commercial manager and deputy chief operating superintendent, a committee had been constituted to check the technical bids and declare participating firms qualified for the next step. Subsequently, the matter would be referred to accounts and revenue office.

The railways re-invited tenders to run Hazara Express under public-private partnership without deciding the bid documents submitted by private parties on April 2.

Some 13 private parties had bought bid documents in response to an advertisement in national dailies for outsourcing commercial management of Hazara Express. Only seven firms submitted technical and financial bids, but their representatives protested with railway officers supervising the process when the PRACS did not deposit 5pc of the benchmark as advance earnest money.

After failing to convince the protesting representatives, railway officers announced constitution of a committee to redress the grievance. Instead, the railways commercial wing authorities re-invited bids for outsourcing the commercial management of Hazara Express while extending contract with the PRACS for a month from April 4.

The PRACS had been operating Hazara Express since Feb 15 while paying a lump sum amount of Rs332.85 million annually or Rs911,918 per day round trip plus 60pc of the profit share per annum. There have been no changes in the terms and conditions for the extended period except the ratio of net profit has been revised. Earlier, railways were getting 60pc and the PRACS 40pc. Now railways would get 70pc and the PRACS 30pc, the officer added.

Published in Dawn, April 28th, 2016