Pakistan Railways has earned over Rs 3,959 million in revenue from the operation of brake and luggage vans over the past three years, according to an official from the Ministry of Railways.
The revenue has been generated through both direct operations by the department and services outsourced to private contractors. The official confirmed that luggage van operations were outsourced during this period through a transparent and competitive bidding process.
“All outsourcing was carried out via open tenders, publicly advertised by the Railways Department,” the official said. Contracts were awarded in line with existing regulations, with bid benchmarks determined based on the previous year’s income from the respective vans.
The official explained that contractors who secure these agreements are required to pay 15 percent of the total contract value upfront. The remaining amount is paid in 10 equal monthly installments. Each contract runs for two years, with the possibility of a one-year extension subject to mutual agreement and satisfactory performance by the contractor.
He further noted that Pakistan Railways and the awarded contractors remain the key stakeholders in these agreements, working jointly to manage brake and luggage van operations.
Responding to a query, the official disclosed that Pakistan Railways plans to expand its outsourcing model to additional services in an effort to improve operational efficiency and service quality. Among the services under consideration for outsourcing are janitorial duties, dining car management, catering operations, and commercial oversight of passenger trains.
The move is part of a broader effort by Pakistan Railways to leverage public-private partnerships to enhance service delivery and generate sustainable revenue streams.
