A strategically important project of China-Pakistan Economic Corridor (CPEC), main line (ML-1), has successfully got the attraction of the Beijing which agreed to provide long-term loan on most favorable terms for its up-gradation from Karachi to Peshawar.
“Pakistan Railways (PR) requires up to $30 billion in the next 12 years with sustainability of good policies to upgrade the ML-1 to international standard, but it should not be solely dependent on CPEC,” said the said Federal Minister for Railways Khawaja Saad Rafique while addressing a press conference. Financial support under the CPEC was estimated at $5.7 billion and was expected to increase up to $8.2 billion after approval of new framework, he said.
The contract of the ML-1 project would be signed in next Joint Cooperation Committee (JCC) while the project would be completed in five years.
With the up-gradation of ML-1, the speed of trains will increase to 160 kilometres per hour as compared to the current 120 km/h while capacity would be increased from current 32 to 171 trains per day.
The minister further said the PR had completed the first feasibility of ML-1 up-gradation with its own resources while the second feasibility would be completed by May 2017.
China and Pakistan had also established working groups for discussion on up-gradation of the rail line and negotiations would start by the midst of this month, he added.
Three other projects, including Karachi Circular Railway, Peshawar Mass Transit and Quetta Mass Transit projects, had also been included in the CPEC.
He said the infrastructure of Pakistan Railways (ROW) would be used for the execution of the three projects. He assured that the federal government would extend full support, including sovereign guarantee and technical, for the completion of these projects.
He said that KCR had been handed over to the Transport Working Group and would be approved in the coming JCC.
The minister further said that a high-level delegation including chief ministers of three provinces visited and attended the 6th JCC which gave a positive indication to Chinese side that all are on the same page for the national interest irrespective of their political affiliation.
The minister also praised all the chief ministers for their positive approach while saying it would help in inclusion of important projects in the CPEC.
ML-1 was 1,600km while total railway track in the country was 12,000km, hence massive investment was required for its up-gradation.
The minister also announced that Pakistan Railways was going to start unprecedented operation of its history for Sahiwal Coal project by end of the current month from Karachi to Sahiwal.
The project would help increase PR income massively. The PR had completed its arrangements including induction of new locomotives and rehabilitation of tracks. Initially 1-2 trains would be operated and the number would be increased to five gradually.
The minister said that feasibility study for Islamabad-Muzaffarabad railway project had been completed but it required an estimated amount of Rs 175 billion.
Prime Minister Nawaz Sharif was trying to arrange foreign investment for the project, Saad Rafique added.
The minister said that seven locomotives were on the way while the shipment of all 55 locomotives procured would be completed in next three months.
