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





16 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.

Riaz Haq said...

#Pakistan moves to save face as #coronavirus hits Belt and Road. "The world....will be a different place by the time the pandemic is over. Investment flows will shrink, and China will be one of the very few countries with available capital" #China #CPEC https://asia.nikkei.com/Spotlight/Belt-and-Road/Pakistan-moves-to-save-face-as-coronavirus-hits-Belt-and-Road2

The government of Pakistan has ordered the resumption of all infrastructure and energy projects that are part of China's Belt and Road Initiative, but experts believe the move is a matter of face-saving.

Work on the China-Pakistan Economic Corridor, a major piece of the Belt and Road, stopped when the novel coronavirus started to spread in Pakistan in February. According to Johns Hopkins University data, Pakistan has confirmed 9,216 cases as of Tuesday, including 192 deaths.

Naghmana Hashmi, Pakistan's ambassador in Beijing, told Pakistani media on Sunday that a number of mechanisms have been established to complete all corridor projects within the prescribed time frame. But analysts say restarting the projects at the height of the pandemic is meant to spare Beijing and Islamabad embarrassment.

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

Amid the economic crisis, some have questioned the economic viability of Belt and Road projects. According to the Planning Commission of Pakistan, the country's top development planning body, Chinese skilled laborers are paid 1,300% more than Pakistani laborers for the Main Line 1 (ML-1) railway project, a discrepancy it says must be rationalized.

The commission has also asked Pakistan Railways to evaluate the impact of a huge Chinese loan of almost $9 billion for the ML-1, which is the single largest infrastructure project for the corridor in the country. Pakistan expects 90% of the funding for the ML-1 to come from the Chinese loan. The commission fears the terms may saddle the country with heavy debt if it is not looked into now.

On the other hand, there are bullish voices who say that resuming Belt and Road projects is worth the risk.

Hasaan Khawar, a public policy analyst based in Islamabad, believes the corridor's special economic zones can help Pakistan solve its economic woes. "The world is changing fast, and it will be a different place by the time the pandemic is over. Investment flows will shrink, and China will be one of the very few countries with available capital," Khawar said. He added that the corridor and the zones provide a ready framework for Pakistan to attract Chinese capital and should, therefore, be a priority for Pakistan.

Malik believes that the aftermath of the COVID-19 crisis will leave China better positioned as a global power and savior of a world in deep crisis. After this, the world will see a continuation and expansion of Belt and Road projects, he says.

Kugelman sees the corridor as the most concrete and active part of the Belt and Road and says its trajectory will be shaped to a great extent by how the corridor develops. He adds that if corridor projects are put on hold until the pandemic has ended, the Belt and Road as a whole could take a pause. If they move ahead, that portends more forward movement for the initiative in the near future, Kugelman says.

Riaz Haq said...

306 Km #Sukkur-#Hyderabad Motorway in #Pakistan to revolutionize interior #Sindh. It will be constructed on a build-operate-transfer (BOT) basis. It will complete #CPEC eastern route from #Khunjarab Pass to #Gwadar via #Karachi - Profit by Pakistan Today https://profit.pakistantoday.com.pk/2020/07/18/sukkur-hyderabad-motorway-to-revolutionise-interior-sindh-bajwa/#.Xxh85hpt-VA.twitter

Lt Gen (r) Asim Saleem Bajwa, chairman of the China-Pakistan Economic Corridor (CPEC) Authority, said on Saturday that the Sukkur-Hyderabad (M-6) Motorway project will bring a development revolution in interior Sindh.

In a tweet, Bajwa, who is also the prime minister’s special assistant on information and broadcast, said that the 306-kilometre highway was approved in a meeting of the executive committee of the National Economic Council (NEC) which will be constructed on a build-operate-transfer (BOT) basis. BOT is a model for large-scale infrastructure projects, wherein a private entity receives a concession from the public sector to finance, design, construct, own, and operate a facility.

He said following the construction of the project, the eastern route of the CPEC (Peshawar-Karachi) will also be completed

Bajwa added that the project would also connect eastern Balochistan to the countrywide network of motorways.

Riaz Haq said...

ML-1 Project: How can an outdated railway line change the destiny of Pakistan? - BBC URDU

https://youtu.be/D7pTwYlzkrI

یک وقت آئے گا جب پاکستان میں ٹرینیں بنا توقف 160 کلو میٹر فی گھنٹہ پر دوڑیں گی اور لاہور سے اسلام آباد آپ صرف ڈھائی گھنٹے میں پہنچ پائیں گے۔ کراچی سے حیدرآباد تو صرف ایک گھنٹہ لگے گا۔ یہاں تک کہ مال بردار ٹرین بھی 120 کلو میٹر فی گھنٹہ پر چلے گی۔ ایسا اس وقت ہو گا اگر آٹھ برس کی مدت میں کراچی سے پشاور تک جانے والی مین لائن ون چین کی مدد سے بحال ہو پائے گی۔ اس سے نہ صرف ریلوے کو نئی زندگی ملے گی، پاکستان کی معیشت بھی اس سے مستفید ہو گی۔ ایم ایل ون کیا ہے، کس حال میں ہے اور کیسے بحال ہو گی، دیکھیے ہمارے ساتھی عمر دراز اور فرقان الٰہی کی اس رپورٹ میں

Riaz Haq said...

#China vows $100 million grant for #Sindh #infrastructure. Two governments signed a letter of exchange for rehabilitation of specific sections of National Highway (N-5) project. Under the agreement, China will provide grant assistance of RMB 659.8 million https://www.thenews.com.pk/print/767335-china-vows-100mln-grant-for-road-infrastructure-in-sindh


The signing ceremony was witnessed by Ambassador of China to Pakistan Nong Rong and Minister for Economic Affairs Khusro Bakhtyar. Rong said N5 is an important road that extends from the south part to the north and west border in Pakistan, and carries a large amount of traffic capacity. Four sections between Hala and Moro will be rehabilitated under the project.

“Unfortunately, this road was seriously damaged by the record flood in 2010,” the envoy said in a statement. At the request of the Pakistani government, the Chinese government helped repairing parts of N5 and N55 sections during 2011 and 2016. With the joint efforts by the Pakistani and Chinese workers, the rehabilitation work was completed at the end of 2016, and greatly improved the road conditions of the relevant sections.

Considering the importance of the N5 road, the Chinese government agrees to rehabilitate the remaining 66 kilometers of the N5 road with Chinese grant in accordance with the previous bilateral agreement.

The new project of rehabilitation of N5 road is the largest road project funded by Chinese grant in recent years in Pakistan. The implementation of this project will further increase the traffic capacity, while facilitating people’s travel along the route. Construction of the project will also create considerable employment, and promote related building materials and transportation sectors along the route. The Embassy will work closely with EAD and other relevant departments to ensure the project starts at the earliest.

During the meeting, bilateral economic relations, CPEC projects and other matters of mutual interest were discussed.

The minister for economic affairs lauded the grant assistance extended by China for various infrastructure and socioeconomic projects in Pakistan. The minister also appreciated the significant work of joint working groups on socioeconomic development and transport infrastructure under CPEC.

“Socioeconomic projects agreed therein are in line with the vision for socioeconomic uplift of the common people and enhanced economic activities in the country,” he said.

The second meeting of the joint working group on socioeconomic development under the CPEC framework was held in November via video link to discuss and review the projects under the $1 billion Chinese grant. The seventh meeting of the joint working group on transport infrastructure was held last year.

China is leading an estimated $60 billion worth of projects in Pakistan under its road and belt initiative that aims at infrastructure development and acceleration of the economic integration of countries along the route of the historic Silk Road.

CPEC is an integral part of the initiative and Pakistan is the foremost territory to make the initiative a success.

Riaz Haq said...

Pakistan Logistics Industry to 2020 - $30.77 Billion Outlook and Growth Opportunities - Research and Markets | Business Wire


https://www.businesswire.com/news/home/20160921005655/en/Pakistan-Logistics-Industry-to-2020---30.77-Billion-Outlook-and-Growth-Opportunities---Research-and-Markets

Pakistan Vision 2025 seeks to enhance the national transportation infrastructure by establishing an efficient and integrated transportation and logistics system. Establishing industrial parks and developing SEZs along the China-Pakistan Economic Corridor (CPEC) will strengthen the transportation network and logistics infrastructure. Road freight transportation contributed over 90% of the goods transported by land.

Rail freight is likely to gain share due to modernization and expansion. High priority is given to road network development. Private sector participation in logistics infrastructure development is likely to gain momentum, and transportation and warehousing are likely to lead logistics industry growth during 2016-2020.

The potential opportunities in the logistics industry in Pakistan, is estimated at approximately US $ 30.77 billion in 2015. Key targets set in the national development initiatives for the transportation sector include reduction in transportation costs, effective connectivity between rural areas and urban centres, inter-provincial high-speed connectivity. Also high priority is given for the development of integrated road/rail networks between economic hubs (including air, sea and dry ports) and high capacity transportation corridors connecting with major regional trading partners.

Up-gradation of all major airports to trans-shipment hubs, development of cargo villages, modernization of rail transport, E-commerce, CPEC related investments in industrial centres and Special Economic Zones (SEZs) will serve as primary macro drivers for logistics sector growth. CPEC related projects intend to upgrade and modernize road transport and related logistics infrastructure such as logistics park and establishment of cargo villages at major airports. Hence, high priority is given for road network development; private sector participation in logistics infrastructure development is likely to gain momentum.

Storage and Warehousing demand from CPEC related industrial corridors are likely to derive increased storage and warehousing requirements including cold chain logistics, establishment of Cargo Villages Ports will facilitate goods traffic to central Asian countries and evolve as a major transhipment hub in the region.

Riaz Haq said...

Bankability of the Transport Sector by Karandaaz

https://karandaaz.com.pk/wp-content/uploads/2018/11/Bankability-of-the-Transport-Sector-2-1.pdf

Executive Summary:

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.

Riaz Haq said...

Globally, logistics is a $4.3 trillion industry, contributing an average of eight to 10% to the GDP, creating thousands of new jobs and improving export competitiveness substantially. A look at the World Bank’s Logistics Performance (LPI) for the last 10 years provides sufficient evidence; the countries ranked in the top 20 include the 10 strongest economies in the world.


https://www.globalvillagespace.com/pakistans-logistics-industry-hampering-industrialisation-and-growth/

The performance of the logistics sector provides a stark contrast to the economic recession Pakistan has been mired in. As of December 2018, the logistics sector is valued at $34.2 billion, registering an annual growth rate of 18% between 2017 and 2018 (source: Ministries of Communications and Postal Service). However, experts are quick to point out that the figures present only part of the picture because a large segment of the sector operates in the grey economy with no verifiable records or data.

There are about 2,500 logistic and freight forwarding companies in Pakistan that not only serve as shipping companies that transport cargo but also provide end-to-end solutions to customers facilitating trade through sea, air, road transport systems and a combination of these modes.

Recently, the transport industry has jumped to protests and suspension of operations due to policy changes. Operations were impact when the government attempted to revise the axle load limits which stirred controversy between the transporters, business community, and the government. The National Highway Authority (NHA) increased the fines imposed on violations approximately 10 times which was not received well by transporters. A speeding fine, for example, which was previously RS. 750 has now gone up to RS. 10,000 for some vehicles.

Riaz Haq said...

Pakistan is ranked at 95 among 167 countries on the aggregated Logistic Performance Index (LPI), trailing behind a number of Asian countries due to lack of spending on infrastructure projects including airports and highways.

https://propakistani.pk/2019/07/24/pakistan-ranks-among-the-worst-in-logistic-performance-index/

India is at 35th position while Sri Lanka stands at 92nd place in the list. Regional countries including Thailand, Vietnam, Indonesia, Malaysia, and the Philippines are far ahead of Pakistan, according to a report published by the State Bank of Pakistan.

Where’s CPEC?
Luckily, Pakistan’s performance on the infrastructure component of the LPI is likely to improve, particularly in the wake of CPEC-related development of roads, railways, and the Gwadar port. In addition, CPEC is also expected to boost the prospects of the shipping industry, and forward-thinking investors are reportedly keen to explore such opportunities.

Why Logistics Sector Holds Great Value?
A more concerted policy focus is required to tackle the shortcomings reflected in other LPI components. These can be viewed as a subset of the ease of doing business, and may thus be added to the agenda items that the country is looking to address in order to attract more FDI and boost exports.

The efficient logistics lie at the heart of competitiveness, both at the firm and country level. They enable firms to connect with domestic and international markets and affect a country’s prospects of integration within global value chains.


Logistics impact trade, job creation, and economic development. Given its importance, there is a need to track logistics performance and take corrective action as needed.

The Criteria
To this end, the World Bank’s LPI serves as a benchmarking tool that scores and ranks logistics performance. The index can be further categorized into 6 distinct components, namely:

International shipments: The ease of arranging competitively priced international shipments
Logistics competence: The competence and quality of logistics services
Infrastructure: The quality of trade and transport-related infrastructure (for example, ports, roads, railroads, information technology)
Customs: The efficiency of customs and border management
Timeliness: The frequency with which shipments reach consignees within the scheduled or the expected delivery time
Tracking and tracing: The ability to track and trace consignments
World Bank’s aggregated LPI 2012-2018 provides a composite, weighted score and ranking based on four surveys, which minimizes random variations across individual surveys and facilitates comparison across 167 countries.

Moreover, the six components reveal that Pakistan’s weaknesses are broad-based. In four out of six components, Pakistan’s ranking ranges between 100 and 112. In fact, the country ranks last on the ‘Tracking and tracing’ component compared to selected South Asian countries.

Riaz Haq said...

Pakistan’s road network comprises of Motorways, National Highways, Expressways, Strategic
Roads, Provincial / District Roads and Farm to Market Roads as well as urban roads.
The entire road network has a length of more than 260,000 km with present road
density of 0.32 km per sq. km.
The urban roads are linked with district and provincial road which terminate at National
Highways hence form a complete highway network for inter and intra country
movement. Road transport presently dominates Pakistan’s transport system carries
about 90% passenger traffic and 95% of freight traffic. Pakistan’s National Highways
are differentiated in terms of North South and East West Corridors providing connectivity to the
population, divided into two parts by River Indus which flows through the center of country


https://www.piarc.org/ressources/documents/1217,Pakistan-Profile.pdf

Riaz Haq said...

Pakistan is striving to improve its ranking as the slowest for infrastructure expansion in the region, according to the World Bank, through a $2.4 billion government investment for highways, power and transportation this year.

The investment is in addition to billions of projects being funded by the World Bank, Asian Development Bank (ADB), Gulf Council Countries, JICA and the $56 billion China–Pakistan Economic Corridor (CPEC), which has been criticized for the high debt burden it will place on Pakistan.


https://www.enr.com/articles/51571-pakistan-invests-in-infrastructure-but-many-obstacles-to-overcome


Three metro projects are planned while several motorways and a revival of the circular rail in the port city of Karachi are also in the works. The Asian Infrastructure Investment Bank (AIIB) and the ADB have approved a $500 million loan to Pakistan for construction activity. Prime Minister Imran Khan’s has also announced a $30 billion plan to rehabilitate and develop the dying River Ravi into a perennial freshwater body. That project is being managed by Singapore’s Meinhardt Group.

But fundamental issues, such as safety, quality and contracting in the country, threaten to derail any progress, Said Mneimne senior vice president and managing director of Asia-Pacific for Hill International told ENR from Islamabad.

U.S. based Hill entered Pakistan’s real estate sector in 2017 as a project coordinator when it was awarded the $2.4 billion Crescent Bay 108-acre mixed-use development on reclaimed land at a seafront site about 12 miles from Karachi. Last year, the company was selected to provide construction consultancy services for the 2 million sq. m mixed-use development project called Elite Reverie, also known as Eighteen. The company is also pursuing opportunities in funded power and mass transit programs such as the Bus Rapid Transit in Karachi, Mneimne says.


“The consultant-contractor relationship in Pakistan, for example, is a tough one. Contractors treat themselves as labor demanding money every week instead of that laid out in the contract, or else threaten,” to leave, he said. “The concept of project management is not used here as the environment doesn’t justify it.”

Additionally, construction technology is from the 1960s, cranes are old and excavations must be done manually. However, he said, some clients are beginning to understand the need for improvements.

The Asian Development Bank is encouraging improvements and providing funding for things such as smart technologies and innovative development approach. The Pakistan government has frozen or reduced some taxes for construction projects and has granted amnesty to those with undeclared money if they invest in construction. This will be “to offset the negative impact of the Covid-19 pandemic on the national economy,” Prime Minister Imran Khan announced in January.


The government of Pakistan is also starting to focus on public-private partnerships. “Pakistan represents an opportunity for significant growth,” Mneimne explained. “The government’s attention to the construction sector, combined with the demographic realities of the population, means that urban development simply must occur.”

Riaz Haq said...

Centre removes all bottlenecks to launch Sukkur-Hyderabad motorway project

https://www.dawn.com/news/1621736

The 306-km-long motorway is part of PM’s Rs446bn Sindh development package.

A recent meeting of the Public-Private Partnership Authority chaired by Federal Minister for Planning, Development & Special Initiatives Asad Umar took up several matters, including the Sukkur-Hyderabad motorway project which was facing some issues to take off.

With the fresh development, sources said, the project could formally be launched in the current month for further proceedings.

Mr Umer in a tweet said: “Chaired meeting of public private partnership authority today in which we authorised the viability gap fund and transaction structure for the Sukkur Hyderabad motorway project. This motorway will be the biggest project in the Sindh development package announced by the PM.”


Meanwhile, a source privy to the development said that the project envisaged construction of a 306-kilometre-long green-field six-lane access controlled motorway on build-operate-transfer (BOT) basis at a cost of Rs191 billion.

“The federal government intends to supplement through capital and operational VGF [Viability Gap Fund], the financial viability and bankability of the project,” the source said citing financial and technical details of the project.

“The project’s construction period is three years including six months financial close and concession period is 25 years. The project is expected to be financed through debt-to-equity ratio of 70:30 after deducting government of Pakistan’s share of capital VGF in the project. The project is expected to provide 17 per cent equity IRR [internal rate of return] to the investor while generating NHA [National Highway Authority] revenue share amounting to Rs127 billion,” he said.

He said that since the project was proposed to be financed on a BOT basis, all the significant risks related to Sukkur-Hyderabad motorway construction and operations including arranging finances would remain with the private sector except change of law and political risk.

It would be the biggest project under the Sindh development package announced by the PM in April, he said and added that its commercial feasibility study along with transaction structure had been approved with high hopes that it would be floated in the market in May 2021.

Prime Minister Imran Khan had on April 16 unveiled a historic development package worth Rs446bn to develop backward areas of the PPP-led Sindh through power supply, irrigation, sports and communication projects.

The package features restoration of 200,000 acres of agricultural land, upgrading of 14 passports offices, construction of the Nai Gaj dam to irrigate around 28,800 acres, 306-kilometre Sukkur-Hyderabad motorway, gas supply to 160 villages and annual 30,000 new power connections in the neglected districts.

Under the package, Rs52bn would be spent on power and gas supply to the deprived areas and Rohri; and the Hyderabad’s railway stations would be upgraded. The federal government has also decided to complete the Nai Gaj dam project after the Sindh government refused to do its part. Similarly, some 100,000 youth in 14 preferred districts would be imparted skill training; and sports facilities would be developed for the benefit of 130,000 youth, 35,000 of them female.

The package would also ensure introduction of 3G and 4G internet services for 3.7 million people and optic fibre connectivity for 1.2m.

An official privy to the details of the Sukkur-Hyderabad motorway design, meanwhile, said the motorway was proposed to be a high-speed toll road facility for efficient and safe transportation, which would start from Hyderabad — end of the Karachi-Hyderabad motorway M-9 — and terminate at Naro Canal — start of the Sukkur-Multan motorway, M-5.

“The project alignment passes through Jamshoro, Tando Adam, Hala, Shahdadpur, Nawabshah, Moro, Dadu, Naushehro Feroze, Mehrabpur, Rasoolpur, Larkana, Khairpur and Sukkur,” he added.