USTDA Supports Capacity Improvement for the Karachi-Lahore Railway
May 15, 2012
(USTDA)
KARACHI, PAKISTAN – Today, USTDA conferred a
grant to Premier Mercantile Services (PMS), a
private sector port and freight logistics
operator in Pakistan, for expert assistance to
facilitate the acquisition and operation of a
fleet of locomotives on the existing
Karachi-Lahore Railway. This initiative is
central to improving the capacity of one of
Pakistan's most important trade corridors, and
promoting continued economic growth in northern
Pakistan.
The $628,000 grant was signed in Karachi on
behalf of USTDA by U.S. Consul General William
J. Martin, and on behalf of PMS by its Chairman
Mr. Haleem A. Siddiqui.
This technical assistance will enable
Pakistan's rail system to handle the growing
volume of cargo between Lahore and Karachi. To
remedy a shortage of properly maintained
locomotives, Pakistan Railways (PR) has agreed
to allow PMS to deploy and operate a fleet of
locomotives using PR's existing rolling stock
and railway infrastructure. Initially, these
trains would operate between Karachi and Lahore
but the project also contemplates the eventual
expansion of the project northbound from Lahore
into Afghanistan. The USTDA-funded technical
assistance will provide PMS with an assessment
of future freight volumes, security and
communications needs, and financing
requirements for the project.
"Assisting PMS with its planning for locomotive
acquisitions will help improve trade flows and
access to the international market for northern
Pakistan and potentially Afghanistan," stated
USTDA Regional Director Henry Steingass. "This
project also represents significant
opportunities for U.S. companies in Pakistan's
growing transportation sector, and USTDA is
pleased to partner with PMS in this important
endeavor."
As a next step, PMS will select a U.S.
contractor to perform the feasibility study.
The opportunity to conduct the USTDA-funded
study will be competed on the Federal Business
Opportunities (FBO) website. A link to the FBO
announcement will be posted to USTDA's website
at www.ustda.gov. Interested U.S. firms should
submit proposals according to the instructions
in the FBO announcement.
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