Private sector urges Pakistan Railways to privatise freight operations through open auction

LAHORE: As Pakistan Railways (PR) continues its efforts to outsource the commercial operations of passenger trains, stakeholders in the freight sector are now calling for similar measures to be applied to freight train operations. The PR has already initiated the outsourcing of its passenger train services, as well as luggage and brake van operations, through open auctions.

Individuals associated with the freight business are advocating for the privatisation of the entire freight train operations, including the transportation of coal, fertiliser, containers, and general goods, under the same open auction model. A senior officer from a private firm involved in freight services stated, "Open auction is an important method to ensure transparency for outsourcing or privatising the passenger and goods train operations in railways. The same model is also being adopted by other departments for outsourcing various operations."

The officer expressed surprise at Pakistan Railways' reluctance to outsource the commercial operations of its freight trains, urging the administration to adopt the open auction approach for these services as well. "I am surprised why the PR is reluctant to outsource commercial operation of its freight trains," he said, adding that transparency would be ensured if the process followed the open auction model. He further commented, "It will remain a question mark if PR continues avoiding to do so."

Currently, PR’s freight operations remain under the direct management of the railways, despite the ongoing privatisation of passenger-related services. Stakeholders argue that extending the open auction model to freight operations could enhance transparency and efficiency, similar to practices in other government departments.

The call from the private sector reflects growing interest in the potential benefits of privatising freight operations, as the railways seek to improve service delivery and operational transparency through public-private partnerships.