Railways Earns Rs 3.9B from Vans
An official from the Ministry of Railways said that Pakistan Railways made over Rs 3,959 million in the last three years by running brake vans and luggage vans.
These vans were run by Pakistan Railways directly and also given to private companies through contracts.
The official said the luggage vans were given to private contractors through a fair and open bidding process. Pakistan Railways advertised tenders publicly and chose the best offers based on rules.
He added that contracts are given according to set rules, and the expected earnings are based on past years’ income from these vans.
The winning companies have to pay 15% of the contract money at the start, and the rest is paid in 10 equal parts over 10 months.
These contracts usually last two years, with a chance to extend for one more year if both sides agree and the contractor performs well.
The official said that Pakistan Railways and private companies are the main players in this process.
He also shared that Pakistan Railways is planning to outsource more services soon to improve quality.
These services include cleaning, dining cars, catering, and passenger train management, he said.
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