Pakistan railways earns Rs3.95 billion from cargo and luggage van operations over three years

Pakistan Railways has earned a total of Rs3.95 billion over the past three fiscal years through its cargo, luggage, and brake van operations, combining both department-run and outsourced services.

Official documents show that the department collected Rs836.247 million in FY2021-22, Rs1,184.213 million in FY2022-23, and Rs1,939.215 million in FY2023-24, reflecting a consistent upward trend in freight revenue.

The data indicates that outsourced luggage and brake vans contributed nearly three times more revenue than those operated directly by Pakistan Railways. In total, outsourced services generated Rs2.790 billion, broken down as Rs570.249 million in FY2021-22, Rs739.630 million in FY2022-23, and Rs1,480.805 million in FY2023-24. By comparison, department-operated trains brought in Rs1.169 billion, including Rs265.998 million, Rs444.583 million, and Rs458.410 million in the respective years.

A senior official at Pakistan Railways said the outsourcing initiative was launched to meet the growing transport demand from industrial and energy sectors and to expand logistics connectivity between major cities in order to support trade, travel, and tourism.

He explained that bids for outsourcing luggage and brake vans are invited through an open tender process, with public advertisements followed by transparent evaluation and contract awards. The benchmark for bids is determined based on the previous year’s earnings, while successful bidders deposit 15% of the total amount upfront. The remaining balance is paid in 10 equal monthly instalments.

Contracts are initially valid for two years, with the option to extend for another year upon mutual consent, provided the contractor’s performance remains satisfactory.

The outsourcing framework involves close coordination between Pakistan Railways and private contractors, allowing the department to focus on improving freight efficiency and revenue generation.

In earlier years, Pakistan Railways also operated dedicated freight services nationwide, including cargo express trains from Karachi to Multan, Faisalabad, and Lahore, Kundian freight routes between Quetta and Taftan, container services for Prem Nagar and Qila Sattar Shah, oil transport from Multan to Rawalpindi, and other cargo express operations supporting Pakistan’s commercial and industrial supply chains.

The department said the Rs3.95 billion in cumulative freight revenue reflects ongoing efforts to modernise logistics, enhance financial sustainability, and leverage public-private collaboration to strengthen the national transportation network.