Pakistan opens railways industry to private sector

KARACHI, May 7 - Pakistan invited expressions of interest on Thursday from companies for running private train operations, as it seeks to open up the railway industry which has been a state monopoly.

The Ministry of Railways has asked private firms and consortia to submit their EoIs for running passenger and freight trains on the existing infrastructure by May 25.

This is the first time the government has moved to open up the railways to the private sector, although private airlines are allowed to operate.

"The selected train operating companies may use various railway routes, yards ... etc on mutually agreed terms and conditions," the ministry said in a newspaper advertisement.

Agreements would initially be for 20 years, and operating companies would be required to procure and mobilise their own rolling stock and locomotives, it said.

A government official, requesting anonymity, said at least two local companies have expressed interest in the project.

"We are hoping that they will be able to arrange for a tie-up with some foreign company as well," he said, adding that the project could see investment of up to $300 million.