Sunday, November 24, 2019

Pakistan's Longest Motorway M5 to Boost Road Transport Sector

Recent opening of M5, Pakistan's longest access-controlled motorway, is a boost for the nation's fast-growing road transport sector. The 6-lane 392 kilometers long M5 motorway is longer than than the 375 kilometers long 6-lane M2 motorway. After M5 opening, the only missing section in planned 1,694 kilometer long 6-lane Peshawar-Karachi motorway is 296-kilometer Sukkur-Hyderabad M6 motorway. Growing network of high-speed motorways is opening up less developed parts of the country for investment, business and tourism. It is aiding agriculture, trade and commerce by moving freight and people faster. Transport sector is part of the service sector which constitutes 54% of the national economy. Service sector includes education, health, financial services, legal services, communication services, hotels, restaurants, recreation, entertainment, retail and wholesale, personal services, etc. It is growing faster than industry (26%) and agriculture (20%) sectors.



Here's a brief overview of Pakistan's road transport sector as summarized by Karandaz research:

1. The Transport, Logistics and Communications (TLC) sector is estimated to have contributed 13.3% of GDP in 2016-17. Of this, more than 62% was contributed by the road transport sector. In 2014-15 the sector employed 3.1 million people.

2. Most traffic intensive routes are a) Karachi to Peshawar via Hyderabad-Multan-Faisalabad-Rawalpindi; b) Sukkur to Quetta; c) Karachi to Quetta via the RCD Highway; and d) N-5 National Highway segment of Multan-Lahore-Gujranwala-Rawalpindi.

3. Passengers and freight are the primary segments of road transport sector. The fastest growing freight segment is the delivery vans at 7.5% annually, while for the passenger segment it is motor cabs and taxis at 5.9% annually.

4. Road transport grew at an average rate of 6.2% annually between 1991 and 2016, faster than the average GDP growth rate 4.4% during this period. China-Pakistan Economic Corridor (CPEC) is expected to accelerate transport sect or growth with construction of roads and other transport infrastructure.

5. Freight transport sector is highly lucrative with profit margins ranging from 21% for large trucks to 43% for rickshaws. Passenger transport sector is even more lucrative with 30% profit margin for wagons to 50% for luxury buses.

Here's a video of Uch Sharif service area on M5 Sukkur-Multan Motorway:

https://youtu.be/NC6J8YRAJS4





5 comments:

Riaz Haq said...

WEF 2019 Ranking of Pakistan Among 141 Countries (Page 447) :

http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf


Transport Infrastructure 69/141

Road Connectivity 52

Quality of Road Infrastructure 67

Riaz Haq said...

HIGHWAYS OF HOPE
A closer look at Balochistan's roads of change
Muhammad Amir RanaUpdated Oct 06, 2019 11:22pm

https://www.dawn.com/news/1509153

Newly constructed highways in Balochistan are not only bringing connectivity to remote areas of the province. They are also boosting a process of unplanned urbanisation which is bringing about socioeconomic and political shifts within the populace and challenging stereotypes about it


The newly constructed M-8 — which connects Gwadar to the old RCD highway near Surab and passes through Turbat, Hoshab, Panjgur and Basima — had been under construction since 2007 but the project only completed in 2016 because of the security situation and fiscal difficulties. Dozens of labourers from Sindh and south Punjab lost their lives during its construction in attacks by insurgent groups.

Now that the project has finished it has created new avenues of economic activity for the inhabitants of the areas it crosses, but in a province with a long history of people being suspicious of development projects, some are still sceptical of the M-8.

Curiously, this highway is also called the CPEC highway, although it was not built by China or under the CPEC infrastructure projects; the Frontier Works Organisation (FWO) constructed the highway which, through RCD highway, connects eastern Balochistan with Quetta and rest of the country.

Some locals believe this route will be used by China to transport goods and oil from Gwadar to the Xinjiang region. They fear heavy traffic will not only damage the highway but will also make commuting difficult for locals. Adding fuel to the fire, the recent heavy rains dilapidated parts of the two-year-old M-8 and locals fear that heavy containers will further deteriorate the roads. Others say that the highway is well made but, being a single road, it will get blocked or slow down public transport when a convoy of five to 10 containers will drive on it. These perceptions will only be tested when the load will come on the highway.

Locals also think that this highway has been built to facilitate trade and oil supply to China. And the neighbouring country should set up an industry, training institutions and other infrastructure alongside the road for the development of the area. These narratives appear to be a bit simplistic. The highway was planned before the CPEC and the Chinese footprints in the province. Nonetheless, these claims say a lot about the high hopes locals have pinned on the highway.

------------------------

The real estate boom in Gwadar is no more the only “success” story in the region. Turbat city is following in its footsteps. Real estate in Turbat is attracting investment from not only the Makran region, but also from other parts of the province, which has transformed the whole city and become a symbol of the urbanisation of Baloch towns.

Turbat city has grown. Turbat University’s beautiful campus on the highway and billboards of new housing societies that frequently pop up along the route tell the story of expansion of a city which has welcomed a number of inhabitants from neighbouring towns. Five degree colleges affiliated with Turbat University offer better opportunities of higher education to students in the adjoining districts of Panjgur, Gwadar and Awaran. Apart from the university, the Makran Medical College, smaller elementary colleges and other public and private educational and health institutions have made Turbat a major urban centre in Balochistan after Quetta. These facilities are not yet comparable with those in major cities of Punjab and Sindh, but they have reduced the locals’ dependence on Karachi and Quetta in terms of educational and employment opportunities.

Riaz Haq said...

#Pakistan #Railways reports record income in 2018-19. PR increased the number of rail #passengers to 70 million. PR says it recorded a 7% increase in #freight volume compared with a 4% increase in 2017-18 by introducing special container trains. #transport https://www.railjournal.com/financial/pakistan-railways-achieves-record-income-in-2018-19/#.XevzV4HDHoc.twitter

PR faced higher costs in 2018-19 of Rs 6bn due to pay increases, higher pension contributions, and rising fuel charges. Nevertheless, it managed to cut its annual deficit by Rs 4 billion from Rs 36bn in 2017-18 to Rs 32bn in 2018-19.

PR refurbished 24 passenger trains at its workshops in Lahore and Islamabad. These trains attracted around 8 million passengers and generated Rs 5bn in additional revenue. Overall, PR increased the number of rail passengers to 70 million. PR also introduced free Wi-Fi at its major stations and launched apps for the sale of tickets.

PR says it recorded a 7% increase in freight volume compared with a 4% increase in 2017-18 by introducing special container trains.

Infrastructure upgrades
During 2018-19, PR started the installation of a state-of-the-art command and control centre at its headquarters in Lahore to improve safety and operating efficiency on the network.

Under the China Pakistan Economic Corridor, PR signed an agreement with China to upgrade 1872km of track on the Karachi – Peshawar main line. PR also floated tenders to upgrade the Attock – Jacobabad – Kotri, Rohri – Jacobabad – Quetta/Taftan, and Gwadar main lines.

PR claimed 155 hectares of land worth Rs 30 billion along 38km of the 43km Karachi Circular Railway from people encroaching on the line.

PR managed to reduce diesel fuel consumption by 3.5 million litres despite operating 24 additional passenger trains, and it planted 500,000 trees under the Clean and Green Pakistan campaign.

The hospitals, schools and colleges run by PR were offered to the private sector as either public private partnership (PPP) schemes or joint ventures.

Riaz Haq said...

Pakistan's services sector accounts for 54 percent of GDP and little over one-third of total employment.


https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-79.pdf


Services sector has strong linkages with other sectors of economy; it provides essential
inputs to agriculture sector and manufacturing sector. The objective of this paper
is to analyse the importance of services sector in an economy and better
understanding about Pakistan services sector. The study also explores the
relative performance of services sector and its contribution in the economic
growth, trade and employment generation.

Classification of Services Sector in Pakistan
I. Distributive Services
· Transport, Storage and
Communications
® Railways
® Water Transport
® Air Transport
® Pipeline Transport
® Road Transport
® Mechanised
® Non- Mechanised
® Communications
® Storage
® Water Transport
· Wholesale, Retail Trade and Hotels
and Restaurants
® Wholesale and Retail Trade including
Imports
® Purchase and Sale Agents and Brokers
® Auctioning
II. Producer Services
· Financial Institution
® State Bank of Pakistan
® Commercial Bank
® Other Financial Intermediaries
® Insurance Corporations and Pension Funds
III. Personal Services
· Entertainment and Recreation
Services
· Ownership and Dwelling
IV. Social Services
· Public Administration and Defense
· Social Community and Private
Services
® Education
® Medical and Health Services
® Other Household and Community Services

Riaz Haq said...

91-Kilometer 4-lane #Lahore-#Sialkot #Motorway M11 opened for traffic. M11 has 7 interchanges, 6 flyovers, 24 bridges, 22 underpasses, 13 subways and 274 culverts. Connects #industries in Sialkot, #Gujranwala & #Gujrat to Lahore in a big boost to #exports. https://nation.com.pk/19-Mar-2020/lahore-sialkot-motorway-opened-for-traffic

The project will reduce total distance between both the cities from two and half hours to only 50 minutes.

The project was initiated by the previous government of Pa­kistan Muslim League-Nawaz (PML-N) in 2017. The project is completed by Frontier Works Organisation (FWO) on Built Operate Transfer (BOT) mode. The maintenance and operation of said motorway would remain with FWO for next 25 years after which the road would be hand­ed over to the National High­ways Authority.

When contacted, a spokesper­son for NHA Muhammad Saleem confirmed that the motorway has been opened for commut­ers on Wednesday. He informed that the inauguration ceremony of this project could not be ar­ranged due to the emergence of corona virus.

According to the NHA docu­ments, the four-lane motorway having two lanes on each side has been completed at the cost of around Rs.43 billion. There are 7 interchanges, 6 flyovers, 24 bridges, 22 underpasses, 13 subways and 274 culverts have been included in this project.
The motorway starts from La­hore where it is connected with eastern bypass and Ring Road while its first interchange is sit­uated at Kala Shah Kaku which joins it with N-5, commonly known as GT Road as well as the Lahore-Islamabad Motorway (M-2).

Its second interchange links Muridke and Narowal while third interchange connects Aimanabad and Wando. The fourth interchange links district Gujranwala and Pasroor while the fifth one is between Daska and Pasroor.

The sixth interchange falls be­tween the Daska and Sialkot while the last interchange is sit­uated around 15km in the west of Sialkot city.

It is pertinent to mention here that this is the place which is considered as a gateway to Sialkot, Kharian and Wazirabad.

When contacted by The Na­tion, MNA from Sialkot and a senior leader of PML-N Kha­waja Muhammad Asif main­tained that the completion of Lahore-Sialkot Motorway is the fulfilment of another promise made by his leader Nawaz Sha­rif — the former prime minister.

“It was the vision of Nawaz Sha­rif to connect all regions through infrastructure to strengthen the federation of Pakistan”, he said, adding; “We had the plan to ex­tend said motorway from Sialkot to Dina via Kharian and then it was to be linked with proposed Mirpur to Muzaffarabad Motor­way and Lahore-Islamabad Mo­torway (M-2) by crossing Rawat at Rawalpindi.

He criticised by saying that the incumbent government is visionless and its agenda is de­struction not the development.

The completion of this long-awaited project will im­prove connectivity of industri­al triangle of Sialkot, Gujranwa­la, Gujrat-Wazirabad to the rest of the country especially Lahore — resulting in a big boost to exports.

The area was a key manufac­turing part of the country, ac­counting for about 15 percent of Pakistan’s annual exports. Exports from Sialkot included sports goods, surgical equip­ment, leather garments, riding gear, polo equipment, badges, motorbike accessories and ag­ricultural products including the world-famous Basmati rice. The neighbouring Gujranwala is the center of ceramics and tex­tile products, while Wazirabad and Gujrat provide a big share of cutlery.