1,320 MW Sahiwal Power Plant faces outage risk due to railway wagon shortage for coal transport from Karachi ports

The Sahiwal coal-fired power plant has raised alarms about an ongoing shortage of railway wagons required to transport coal from Karachi ports to the plant, warning that this issue could lead to a forced outage, affecting the stability of the national grid, Business Recorder reported.  

The 1,320 MW plant, operated by Huaneng Shandong Ruyi (Pakistan) Energy (HSRL), a key China-Pakistan Economic Corridor (CPEC) project, has formally addressed the matter with authorities.

The plant, already facing financial stress due to delayed payments from the Central Power Purchasing Agency – Guarantee (CPPA-G), highlighted the widening gap between the high power dispatch allocations from the Independent System Operator (ISMO/NPCC) and the coal transportation capacity of Pakistan Railways. 

CEO Liu Zeng Rui, in a letter to the Special Assistant to the Prime Minister, warned that the plant’s coal inventory would drop below 50,000 tons by mid-August if the transportation issues persist.

Despite multiple engagements and verbal assurances, the daily supply of wagons remains insufficient, with only 540-590 wagons delivered daily, far below the required 1,000 wagons (five trains per day). 

The ongoing deficit has caused a backlog of coal at the Karachi ports, with approximately 500,000 tons currently available, and four vessels scheduled to deliver an additional 170,000 tons in August. 

The company has requested immediate interventions, including coordination for sufficient wagon allocation or a temporary reduction in power dispatch to align with transportation capabilities.

The plant has also requested that no capacity payment deductions or liquidity damages be imposed in case of a forced shutdown due to the coal transportation crisis. Furthermore, HSRL urged Pakistan Railways to expedite the repair of damaged wagons and provide a clear action plan to improve long-term wagon availability.