Pakistan Railways to outsource commercial management of trains

ISLAMABAD: In a bid to improve overall service delivery, Pakistan Railways plans to outsource various services, including the commercial management of passenger trains.

According to an official from the Ministry of Railways, Pakistan Railways has generated over Rs 3,959 million in revenue from the operation of brake and luggage vans over the past three years.

“These operations were carried out both directly by Pakistan Railways and through outsourcing to private contractors,” the official told state-run APP.

He said that the luggage vans have been outsourced through a transparent bidding process during this period. “The outsourcing is done via open tenders which are publicly advertised by the department,” the official said.

The official said that the contracts are awarded in accordance with prevailing regulations, and bid benchmarks are set based on the previous year’s earnings from the luggage and brake vans.

He said the successful bidders are required to deposit 15 percent of the contract value in advance, with the remaining amount payable in 10 equal monthly installments.

The official said the standard duration of these contracts is two years, with the possibility of a one-year extension based on mutual consent and satisfactory performance by the contractor.

The official emphasized that key stakeholders involved in the process include Pakistan Railways and private contractors who are awarded the luggage and brake van operations.

In response to a query, the official revealed that Pakistan Railways is set to outsource additional services to enhance overall service delivery.

These services include janitorial work, dining cars, catering services, and the commercial management of passenger trains, he added.