KARACHI: Pakistan Railways announced plans Wednesday to outsource the operation, rehabilitation and upgrading of three concrete sleeper factories through private-sector investment under a public-private partnership model.
The state-owned railway operator will issue concession for the factories located at Khanewal, Sukkur and Kohat Cantt, seeking companies to rehabilitate, upgrade, maintain and operate the facilities for a 15-year concession period, with a possible 10-year extension based on mutual consent and satisfactory performance, according to an official document seen by Bolnews.
The initiative aims to modernize aging infrastructure and increase production capacity to meet growing demand for pre-stressed concrete sleepers required for railway track projects and new connectivity lines.
Pakistan Railways, established in 1861 and headquartered in Lahore, operates as a national strategic organization providing passenger and freight transportation. The railway owns land and infrastructure at the three factory sites, which currently operate under in-house management.
Factory capacities and conditions
The Khanewal factory, established in 1981 with technical assistance from Germany’s Dywidag, spans 32.37 acres and currently produces 400 PSC sleepers per day in a single shift, with an annual capacity of 115,000 sleepers. Production could double to 230,000 annually with double-shift operation, though existing machinery is outdated.
The Sukkur factory, established in 1966-67 on 48.64 acres with similar German technical assistance, has identical production capacity and aging equipment challenges.
The Kohat Cantt factory, established in 1981 on 13.83 acres with technical assistance from France’s STEDEF, currently produces 400 RCC Twin Block sleepers per day in a single shift, with an annual capacity of 100,000 sleepers that could double with double-shift operation.
Scope of work and requirements
Under the concession terms, the selected company will be responsible for the overall operation and management of the factories, including:
- Rehabilitation and upgrading of outdated machinery to original equipment manufacturer standards, including installation, commissioning and testing
- Laboratory upgrading to meet relevant standards, including dynamic loading tests
- Quality control measures requiring third-party inspection and OEM vetting every five years
The contractor must supply a minimum of 100,000 PSC sleepers (2600mm and 2750mm) from each rehabilitated factory to meet Pakistan Railways’ requirements. After fulfilling railway demand, the company may use surplus capacity for manufacturing similar concrete products for the open market on a gross revenue sharing basis of at least 10%, under mutually agreed terms.
If Pakistan Railways requires more than 250,000 sleepers, the company will be obligated to upgrade the factories further to meet the increased demand, installing additional production lines with new technology at its own expense, subject to railway approval.
Contract terms
At the end of the contract period or upon termination, the facility must be returned to Pakistan Railways in properly maintained and operational condition, with training provided to railway personnel at no cost or unfulfilled liabilities to the employer.
The accepted rates for sleepers will remain applicable for one year or until any abnormal price increase during that period, according to bidding documents.
Pakistan Railways intends to select companies through a competitive bidding process for the concession, with detailed terms and conditions outlined in bidding documents and the eventual agreement.
The outsourcing represents a significant shift for Pakistan Railways as it seeks to modernize its track infrastructure through private-sector efficiency and investment, addressing what officials describe as a dire need to enhance production, efficiency and quality of concrete sleepers for ongoing and upcoming Public Sector Development Programme projects.
