LOGISTICS AND INVENTORY CONTROL

PRESENTATION
ON
A REAL COMPARISON OF LOGISTICS BETWEEN PAKISTAN RAILWAY AND TRUCKINIG INDUSTRY (HEAVY VEHICLE INDUSTRY)
BY
Waqqas Kayani Jehanzeb Anees Moazzam A.Vahidy

PAKISTAN INTRODUCTION
‡ ‡ ‡ ‡ Population Population Growth Rate GDP Contributors to GDP:
± Agriculture ± Manufacturing ± Services

170.0 million 1.999% US$164.0 bn

21.0% 22.0% 57.0%

‡ Per Capita Income

US$1,045

A REAL COMPARISON
PAKISTAN RAILWAY

NATIONAL LOGISTICS CELL
&

CHOUDHARY CARGO

Ccargo
Goods Transporter

PAKISTAN RAILWAY AND ROADS LOGISTICS
‡ Pakistan's roads and highways are in dangerously poor condition. Minor maintenance is performed on existing roads as new construction continues. ‡ This ineffective planning and an erratic prioritization of resource usage and poor implementation of policies and regulations explain why Pakistan's inadequate road network doesn't serve its needs. ‡ Trade and commerce languish in the void of crucial road transport services. Moreover, serious and numerous fatal road accidents could be prevented with common sense, enforced regulations and practical traffic management systems.
‡ Second only to the armed forces, Pakistan Railway is the largest employer in Pakistan. The number of employees and their low skill levels drain any revenue earned. A single ministry, Ministry of Railways, manages this one sub sector of transportation. Yet, the viability of Pakistan Railways is in question. Flagrant sub-standard maintenance is performed. Modern and functional locomotives are in short supply. Unreliable and lacking passenger services receive resources on higher priority than possible revenueproducing cargo. Furthermore, inadequate investment levels deposited the fate of Pakistan Railways existence on the desk of the Privatization Commission.

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INTRODUCTION OF PAKISTAN RAILWAY

ABOUT PAKISTAN RAILWAY
‡ Pakistan Railways is the state-owned railway company of Pakistan. It is a large organization under the administration of the Pakistani Government's Ministry of Railways. ‡ Pakistan Railways provides an important mode of transportation in the farthest corners of the country and brings them closer for business, sightseeing, pilgrimage and education and its headquarter in Lahore ‡ It has been a great integrating force and forms the life line of the country by catering to its needs for large scale movement of people and freight. The current chairman is Mr. Shakil Durrani.

HISTORY OF PAKISTAN RAILWAY
‡ The possibility of Karachi as a sea port was first noticed in the middle of 19th century. Sir Henry Edward Frere was appointed after its annexation to British India's Bombay Presidency in 1847 and sought permission from Lord Dalhousie to begin a survey for a sea port. He also initiated the survey for a railway line in 1858. ‡ It was proposed that a railway line from Karachi City to Kotri, steam navigation up the Indus and Chenab rivers up to Multan and from there another railway to Lahore and beyond be constructed. ‡ It was on 13 May 1861, that the first railway line was opened for public traffic between Karachi City and Kotri, a distance of 105 miles (169 km). The line between Karachi City and Kiamari was opened on 16 June 1889. During 1897 the line from Keamari to Kotri was doubled.

PAKISTAN RAILWAY ROLE
‡ Pakistan Railway forms the life line of the country by catering to its needs for large scale movement of freight as well as passenger traffic. It not only contributes to its economic growth but also promotes national integration. Pakistan Railway endeavors to run the trains strictly in accordance to time table and maintain high standard of punctuality. The progressive freight train sport organization operated by professional management and competent staff committed to provide reliable, competitive and economical service of recognized standards to its customers. It provides logistics services to its customers and having a country biggest cargo providing services to its customer. Pakistan Railway plays an important role in the development of economy and earning a huge revenue for country.

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NETWORK OF RAILWAY BEFORE 1947

PAKISTAN RAILWAY
± Largely neglected since independence in 1947. ± Carry less than 9% of passenger and approximately 4% of freight. ± Total length of rail tracks in Pakistan are 8,162 KMS. ± Railways connect agricultural heartland to the port of Karachi. ± Sector, especially freight being opened by Government to private sector, however legal issues remain.

PAKISTAN RAILWAY MAJOR ROUTES FOR FREIGHT 
Major Routes ‡ Train platform at Rohri Junction ‡ Train platform at Sahiwal Junction  The total length of railway tracks in Pakistan is 5,072 miles (8,163 km). The busiest routes include: ‡ ‡ ‡ ‡ ‡ Peshawar-Karachi Route Peshawar-Quetta Route Lahore-Sialkot Route Lahore-Faisalabad Route Faisalabad-Khanewal Route

FREIGHT TRAFFIC OF PAKISTAN RAILWAY
‡ The Freight Business Unit, with 12,000 personnel, operates over 200 freight stations on the railway network. ‡ The Unit serves two major ports of Karachi and Bin Qasim as well as all four provinces of the country and generates revenue from the movement of agricultural, industrial and imported products, Petroleum Oil & Lubricants (POL), wheat, coal, fertilizer, rock phosphate, cement, container traffic and sugar. ‡ About 39% of the revenue is generated from the transportation of POL products, 19% from imported wheat, fertilizer and rock phosphate. The remaining 42% is earned from domestic traffic.

FREIGHT TRAFFIC OF PAKISTAN RAILWAY
‡ The Freight Business Unit offers services to meet customer requirements and reduce costs through efficiency, innovation and modernization. ‡ All possible efforts are made to increase revenues and pass on the benefits to customers. The Freight Business Unit is headed by an additional General Manager. ‡ The Freight Rates structure is based on market trends, particularly of road transport, which is the Railways' main competitor. ‡ The freight rates are no longer rigid but flexible, depending on the lead, peak-off peak season, and quantum offered.

CURRENT PROBLEMS IN PAKISTAN RAILWAY
‡ Pakistan railway still suffers from a mixture of gauges, 1,676 mm (5 ft 6 in) and 1,000 mm (3 ft 3 in), but this is being gradually tackled by converting the narrow gauge lines to broad gauge, with little narrow gauge remaining.

PAKISTAN RAILWAY IS OPERATING ON THREE GUAGES

FUNCTIONS OF PAKISTAN RAILWAY
‡ All matters pertaining to Pakistan Railway. ‡ Movement and priority in respect of Defence traffic. ‡ Maintenance of Railway lines for strategic reasons. ‡ Negotiations with International Organizations and other Countries and implementation of agreements, with them. ‡ Coordination of Development Projects of Railways as a part of the National Development Programmed. ‡ Standardization and specifications of materials and stores. ‡ Overall efficiency and safety of Railways. ‡ Coordination of Rail movements into and from Ports

PAKISTAN RAILWAY NETWORK

PAKISTAN RAILWAY FREIGHT RATES DETAILS
Commodity: Unit: Effect from date: RICE PER TONNE 30/06/2009

Station From

Station To

Distance

Rate

QUETTA LAHORE LAHORE DRY PORT MURIDKE KAMOKE KARACHI BANDAR GUJRAT KBX WAZIR MANSION

VIA KOHI TAFTAN KOHI TAFTAN KOHI TAFTAN KOHI TAFTAN KOHI TAFTAN LAHORE KOHI TAFTAN KOHI TAFTAN

-

1635:00:00 1610:00:00 1610:00:00 750 2170:00:00 890 1635:00:00 1925:00:00

PAKISTAN RAILWAY FREIGHT RATES
PLANT & EQUIPMENT Route - Kilometers Track - Kilometers Locomotives Coaching Vehicles Other Coaching Vehicles Freight Wagons Railway Stations OPERATIONS Passenger, Mixed & other Coaching Trains Run. Train Kilometers, Passenger Mixed and other Coaching. Coaching Vehicle-kilometers Freight Train Run Freight Train-Kilometers Freight Wagon-Kilometers (Freight & Mixed Trains) Other Coaching Freight TonneKilometres. UNIT Kms Kms No No No No No UNIT No Thousand Thousand No Thousand Thousand Thousand 2006-2007 7,791 11,636 544 1,670 246 19,638 589 2006-2007 88,871 33,697 592,390 16,728 7,132 352,290 562,705 2007-2008 7,791 11,658 555 1,627 241 18,638 559 2007-2008 83,884 33,413 603,445 18,181 7,338 365,480 550,205

Volume of Traffic Passengers Carried Passengers Kilometers Tonnes of Freight Carried Tonne - Kilometers Tonne - Kilometers Freight & Coaching Combined. Freight Wagons Loaded

UNIT Thousand Thousand Thousand Thousand Thousand No

2006-2007 83,899 26,446,362 6,420 5,453,969 6,016,674 320,335

2007-2008 79,984 24,730,726 7,234 6,187,299 6,737,504 363,564

FUEL CONSUMPTION Furnace Oil H.S.D. Oil Electric Energy Coal

UNIT Tonnes Tonnes KWH Tonnes

2006-2007 1,499 149,133 10,942,567 90.15

2007-2008 1,473 151,902 5,810,094 60

EMPLOYMENT & WAGES Persons Employed Cost Of Employees Pension Payment

UNIT No Thousand Thousand

2006-2007 86,564 8,597,244 4,067,468

2007-2008 86,669 9,414,211 4,364,471

FINANCIAL RESULTS Gross Earnings Total Ordinary Working Expenses Operating Ratio

UNIT Thousand Thousand Percent

2006-2007 19,192,485 20,240,569 105,46

2007-2008 19,972,858 21,889,768 109.59

PAKISTAN RAILWAY Comparative Statistics 2003 - 2004 Through 2007-2008
S.No Particulars
Capital-at-charge (at the end of the year in Thousand) Stores Fund (Thousand) Route-kilometers Track-kilometers including sidings Capital outlay (Per Route-kilometer) Gross Earnings (Thousand) Operating Expenses Appropriation to Depreciation Reserve Fund (Thousand) Net Earnings (Thousand) Interest Charges (Thousand) Gain (+) Loss (-) (Thousand) Operating Ratio

2003-2004

20042005
29,524, 219 6,228,8 89 7,791 11,515 3,789,5 28 17,828, 650 14,158, 740

20052006

20062007

20072008

1 2 3 4 5 6 7

Rs. Rs. Rs. Rs. Rs. Rs. Rs.

22,538,645 6,124,496 7,791 11,515 3.277,967 14,634,579 13,354,342

35,082,670 8,647,914 7,791 11,515 4,502,975 18,182,079 17,693,619

38,783,272 9,883,807 7,791 11,636 4,977,958 19,192,485 20,240,569

43,419,142 11,851,117 7,791 11,658 5.572,987 19,972,858 21,889,768

8

Rs.

216,519

248,060 ()225,73 3 2,145,9 92 ()4,069,9 93 79.42

373,630 ()3,854,022 3,726,626 ()11,642,79 1 97.28

542,518 ()6,213,454 3,363,889 ()15,277,66 8 105,46

484,123 ()7,500,521 3,795,061 ()16,854,78 9 109.59

9 10

Rs. Rs.

(-)2,438,445 2,095,681

11 12

Rs. %

(-)6,010,943 91.25

PAKISTAN RAILWAYComparative Statistics 2003 2004 Through 2007-2008 Contd..
Per Route-Kilometer Worked:13 14 Gross Earnings Operating Expenses Depreciation Reserve Fund (D.R.F.) Interest Operating Expenses Plus D.R.F. & Interest Rs. Rs. 1,878,395 1,714,072 2,288,364 1,872,288 2,333,72 8 2,271,03 3 2,463,41 7 2,597,94 2 2,563,58 0 2,809,62 2

15 16

Rs. Rs.

27,790 268,897

31,839 275,445

47,956 278,324 2,797,31 4 ()1,494,38 9

69,633 431,766 3,099,34 2 ()1,960,9 38

62,138 487,108 3,358,86 9 ()2,163,3 66

17

Rs.

2,010,851

2,124,573

18

Gain (+) Loss (-) Total trainkilometers excluding Departmental (Thousand) Railcar and Trailer Coach kilometer (Excluding Departmental (Thousand)

Rs.

(-) 771,523

(-)522,396

19

Kms

38,718

37,760

38,064

40,829

40,829

20

Kms.

Nil

Nil

Nil

Nil

Nil

PAKISTAN RAILWAYComparative Statistics 2003 2004 Through 2007-2008 Contd..
Per Train-Kilometers (including. 1/3 Car & Trailer Kms.
21 22 Gross Earning Operating Expenses Depreciation Reserve Fund (D.R.F.) Rs. Rs. 377.9 344.9 472.1 374.9 477.6 464.8 470 495.7 487.9 534.7

23

Rs.

5.5

6.5

9.8

13.2 11.8

24

Interest Operating Expenses plus D.R.F. & Interes

Rs.

54.1

56.8

97.8

82.3

92.7

25

Rs.

404.6

438.3

572.2

591.4

639.3

26

Gain (+) Loss (-) Passenger Carried (Thousand) Passengerkilometres (Thousand)

Rs.

(-)155.2

(-)107.7

(-)305.8

(-)374.1

(-)411.7

27

75,700

781.79

81.428

83,899

79,984

28

23,045,1 05

24,237,7 96

25,621,2 28

26,446,3 62

24,730,7 26

PAKISTAN RAILWAYComparative Statistics 2003 - 2004 Through 2007-2008 Contd..
Tonnes Carried
(i) Public Goods (Excl. Livestock) (Thousand) (ii) Departmental (Thousand)

29

4.82

5.255

4,647

4,951

5,730

30

1,320

1,155

1,380

1,469

1,504

31

(iii) Live-stock (Thousand) Total Goods (i+ii+iii) (Thousand) Tonne-Kilometres (Thousand)

1

--

--

--

--

32

6,140

6,410

6,027

6,420 5,453,96 9

7,234 6,187,29 9

33

4,796,269

5,013,540

4,970,847

34

Average kilometers a Tonne of Goods was Carried Coaching Earnings (Thousand)

781.2

782.1

824.7 11.269,05 6

849 11.674,5 15

855.3 11,347,4 07

35

Rs.

9,145,884

10,154,901

PAKISTAN RAILWAYComparative Statistics 2003 - 2004 Through 2007-2008
36 Goods Earnings (Thousand) Rs. 4,565,722 5,287,056 4,934,73 9 5,115,3 31 6,120,1 76

37

Average rate charged per tonne per kilometer

Paisa

0.9

1.05

0.94

0.9

1,.06

38

Miscellaneous Earnings (Thousands)

Rs.

922.972

2,385,510

1,978,07 9

2,402,6 38

2,505,2 73

39

Earnings Under Suspense (Thousand)

(-)685,546

(-)332,366

81,450

()242 ,747

244,14 3

PAKISTAN RAILWAYComparative Statistics 2003 - 2004 Through 2007-2008
Rolling-Stock Owned on 30th June
40 Locomotives Coaching Vehicles Brake·Vans (goods) 592 557 544 544 555

41

1,865

1,818

1,904

1,916

1,868

42

328

328

373

411

421

43

Goods Wagons (in terms ef 4 wheelers)

25,324

25,249

24,644

23,593

23,289

44

Total Carrying Capacity of Goods Wagons Persons Employed

487,822

488,500

546,564

606,119

598,303

45

90,891

86,807

86,096

86,564

86,669

PAKISTAN RAILWAY PRICING POLICY
‡ Pakistan Railways moves cargo on rails at a lesser cost in fuel spent in moving the same cargo by road. The organization by reason of this advantage is able to formulate its pricing policy to the maximum advantage allowable to the customer and the organization. The pricing policy of Railways is that all the commodities be charged on differential basis according to the principle of "What each type of traffic can bear" The rate structure of Pakistan Railways is designed to fix an upper limit while taking into account the basic cost incurred in transport value of commodity, its load ability, susceptible to damage and pilferage along with various other factors. Promotional reduced rates are quoted to provide incentive to move the commodities by Rail of Road. Seasonal reduced rates are quoted to attract the commodity. ‡

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PAKISTAN RAILWAY CARGO EXPRESS
‡ A Cargo Express Service introduced Since 1974 is now running daily for transportation of general cargo from Karachi City to Badami Bagh / Lahore and Vice Versa. This cargo express has been re-structured with High Capacity and High Speed Wagons along with terminal facilities to increase the present load of 1000 tones to 1600 tones A Similar Cargo Service has been initiated between Faisalabad Multan and Karachi and vice versa. Presently, these services are being run five time a week. The containerization of cargo and the establishment of Dry Ports were the steps that further facilitated multimodal movement of goods

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PAKISTAN RAILWAY MATERIAL HANDLING EQUIPMENTS

HEAVY VEHICLE INDUSTRY (FREIGHT CARGO) OF

PAKISTAN

ROAD LOGISTICS SHARE IN PAKISTAN
‡ The road freight services are mostly (95%) in the private sector, though fragmented but very efficient. ‡ The public sponsored National Logistic Cell has a 5% market share, and enjoys a preferred status. ‡ Carry 91% of national passenger and 96% of freight. ‡ Total number of trucks registered in Pakistan are 210,027 (2008-2009).

TOTAL LENGTH OF NATIONAL HIGHWAY AND MOTORWAYS OF PAKISTAN
‡ Pakistan National Highways is consist of 9,555 Km and in this Punjab secures the first position and second is Sind third is Baluchistan Fourth is Northern Areas and at last is Kashmir. ‡ Pakistan Motorway total length is 1930 Km and playing a vital role in the development of the country and in this Baluchistan is having 1030Km of road Motorway than comes Punjab.

(2003-2004).

WEIGH STATIONS IN PAKISTAN
Highways/ Motorways Weigh Stations Installed SSWIM HSWIM 10 Static 13 16 (7 HSWIM are being used with static) 9 1 12 2 2 1 2 0 Operational Planned/ In Progress

M-1 M-2

9 -

M-3 M-9 N-5 N-25 N-40 N-55 N-65 N-70

3 10 1 -

-

1 2 2 2 2 2

0 1 5 1

SSWIM ---- Slow Speed Weigh In Motion HSWIM ---- High Speed Weigh In Motion

Weigh station

Unfortunately In Pakistan Axle Loads are uncontrollable resulting in Damaging the Roads

OVERLOADING CAUSE ACCIDENT

COMPARISON DISTRIBUTION OF ACCIDENTS IN PAKISTAN AND EUROPE DUE TO POOR ROADS AND OVER AXLE LOADS

Composition of Trucks by Axle Configuration ( 1995 Data)
No
Two Axle Three Axle Three Axle Trailer Four Axle Five & Six Axle Total

Numbers

53864

16805

944

5076

1503

78192

% age

70

21.5

1.2

6.5

1.92

100

Composition of Trucks by Axle Configuration In Pakistan (1995)

Composition of Trucks by Axle Configuration Description
‡ The study revealed that there is a trend in the commercial market to use multi axle trucks instead of 2-axle. In 1982, share of 2-axle was 96.5% that reduced to 69% in 1995, whereas share of multi axle trucks increased from 4% in 1982 to 31% in 1995. ‡ Premature pavements failure of the National Highways and its rehabilitation and maintenance is the result of over loading. Axle load study NTRC conducted in 1995 indicates that 88% of trucks are loaded above the designed limits of 8.2 tons and 43% above the axle load limits of 12 tons.

Composition of Trucks by Axle Configuration Description Contd..
‡ The prime reasons for the overloading as indicated in the study are the dominant presence of 2-axle trucks i.e. 69% in the overall truck fleet presently plying on our National Highways. Various studies nave indicated that 2 axle trucks cause most of the damage to pavement structure because of load distribution Mainly on rear axle. ‡ Technically speaking damage of road by standard axle (8.2 tons) is one and any increase in load on an axle increase by a power of 4.5 Tons. ‡ In addition to higher loading and to offset its effect tyres are over inflated far in excess of their normal pressure capacity. Studies revealed that almost 100% of the tiers are inflated in excess and are mostly as high as 160 psi against permissible design limits of 100 psi.

COMMERICAL TRUCKS IN PAKISTAN FOR CARGO TRANSPORTATION
‡ In Pakistan presently there are around 210,027 (2008 ± 2009) registered commercial trucks (3% of total vehicles) plying on our roads. ‡ Since there is no adequate truck manufacturing industry in Pakistan, types and makes of these trucks varies. ‡ Bodies are mostly manufactured in Pakistan by local Industry not following proper dimensions. ‡ Bed Ford (53%), Hino (23%), Nissan (16%), Isuzu (5%), other (3%) are common types of trucks.

INTRODUCTION OF
NATIONAL LOGISTICS CELL

ABOUT NATIONAL LOGISTICS CELL
‡ NLC is a multifaceted organization where diversification guides growth. With business interests, both domestic and international, NLC¶s development strategies exploit the strength of the core business while evolving challenging activities. Through infrastructure development, provision of freight services, management of border terminals and strategic inland dry ports, manufacturing and engineering excellence, enhancing energy resources; we endeavor growth towards a self reliant Pakistan. This established reputation of the Cell has resulted in the assignation of mega engineering and construction ventures in Qatar, Afghanistan and other countries of the Middle-East. This has resulted planned expansion of its operations to Central Asian Republics, Turkey and Iran.

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NATIONAL LOGISTICS CELL HISTORY
‡ National Logistics Cell (NLC) was raised on 6th August 1978 to reduce the congestion at Karachi Port, which had resulted in a waiting time of 50 days for the ships and was costing the Government $12.5 Million per annum in demurrage. ‡ In the process NLC introduced in the country the concept of containerization and became the largest multi-modal freight handler in the region. ‡ NLC also serves as the Crisis Management Arm of the Government to handle and diffuse logistics emergencies. In recognition of its services, NLC has been awarded Gold Mercury Award by the Government of Pakistan.

E NATIONAL LOGISTICS CELL
‡ Under the eNLC Program, the National Logistics Cell plans to create a fully networked, IT-enabled environment which will streamline business processes and will eliminate operational redundancies. ‡ Additionally, it will provide µreal-time¶ accurate data for managing all our administrative and business functions. Using the latest web based technologies, NLC envisions itself transforming into a µOne Stop Shop¶ for clients¶ multimodal freight requirements. ‡ Clients will be able to make bookings on the Internet and view the progress of their goods from pickup point to final destination. In an environment where the customer continues to have increasing options, NLC plans to offer quality services that no one else can provide.

E NLC ERP SYSTEM

NLC LOGISTICS FLEET
‡ NLC is a financially independent, multidimensional organization that employees more than 7000 personal, equipped with more than 1500 state of the art trucks. NLC today is on its way to become a modern, flexible and sophisticated logistics service provider in Asia. NLC has imported EURO 3 Mercedeze Benz prime movers which are the first of their kind in Pakistan, meeting all the international regulation of fitness, to be able to go in any country in the world. In the transportation and allied sector, NLC makes use of the most modern tracking developed indigenously by NLC and is adapting to fully automated concept of fleet management for its 1500 strong fleet of modern trucks.

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NLC LOGISTICS FLEET CONTD..
‡ NLC embraces the emerging technologies developed both in Pakistan and abroad . ‡ Sadly, none of the Pakistan tucks at present come up to these standards. It also holds credit for the new car carrier which has the capacity of transporting 10 cars. ‡ These cars carriers are now being fabricated in NLC workshops in Karachi.

NLC DRY PORTS FOR LOGISTICS
‡ NLC is spearheading the drive to establish Dry Ports in Pakistan. ‡ It exclusively operates the Karachi and Hyderabad Dry Ports. ‡ In addition, NLC has established modern Container Freight Stations at Lahore and Amangarh (Nowshera). ‡ It has additional detachments at Sialkot, Multan, Faisalabad, Rawalpindi and Peshawar to meet the requirements of the business community.

NLC DRY PORTS FOR LOGISTICS Contd..
‡ NLC also handles international freight transiting Pakistani ports and offers warehousing facilities to United Nations World Food Program, UNHCR, UNICEF and other donor agencies. ‡ NLC is also employed by the government to monitor and arranges logistics for government and private sectors.

NLC WAREHOUSING FACILITY
‡ Warehousing
‡ NLC owns both covered and open warehouses throughout the country. ‡ It offers covered accommodation of over 50,000 sq m and open warehousing facility of 0.5 million sq m for containerized cargo at Quetta and Amangarh (Nowshera). ‡ NLC is now launching a program of building additional ware housing capacity in the Rice Belt in Pakistan, especially in Gujranwala, Mured-ke and Shahdara.

NLC CUSTOM CLEARANCE AND HANDLING FACILITY
‡ In order to provide one window operation to its customers, NLC is Providing efficient custom clearance and handling services as per International Standards, with the assistance of Central Board of Revenue. ‡ This enables NLC to efficiently handle export cargo.

NLC STATE OF THE ART SCANNERS
‡ NLC is installing container scanners all across the country on behalf of Central Board of Revenue (CBR). ‡ In the first phase 6 scanners are being installed. Subsequently the Scanners at Lahore, Sialkot and Faisalabad will also be installed. ‡ This will facilitate the customers to conduct their business free of encumbrances of the post 9/11 security paradigm. These scanners are already functional at Port Qasim, Karachi and Lahore.

NLC BORDER TERMINALS
‡ Modern Border Terminals
‡ The government has decided to establish four modern border terminals on routes entering Pakistan. In order to promote trade through land routes, the border terminals will be fully automated with in-house scanners and online data management. ‡ NLC has been tasked to build these state of the art Border terminals at Wagah, Torkham/Jamrod, Chaman and Taftan. NLC has therefore acquired land in these locations to develop these terminals and provide ware housing and display centres. ‡ Thus, the Pakistani exporters will be able to display their goods closer to the zero point and will be able to strike deals with importers on the spot. ‡ The establishment of such terminals would also meet one of the major requirements of trade facilitation in the region and promote land route trade among the countries of the region.

NLC TRANSPORTATION OPERATIONS

DRY CARGO OPERATIONS
‡ Dry Cargo Operations NLC specializes in transportation of containerized cargo and has the ability to deliver it cis or trans-frontier. It also handles commodities such as fertilizers, wheat, rice, cotton and sugar from ports and production sites to consumption centers all over Pakistan.

NLC LIQUID CARGO OPERATIONS
‡ NLC is a major oil carrier for OGDC, BP and MOL. It lifts over 50% of the nation's crude oil production from the far flung oil fields where the private bowzers dare not venture. The crude oil is transported by NLC from oil fields to refineries at Karachi and Rawalpindi. NLC employs special carriers to transport liquid chemicals and other products.

NLC CAR FLEET MONITROING SYSTEM
‡ NLC is Pakistan's only road transportation organization to install fully computerized vehicle's monitoring system. The system facilitates in the identification of the location of cargo being transported, and in forecasting its arrival at destination. The system is being extended to enable customers to trace their cargo when transported by NLC.

NLC IN WATER LOGISTICS SERVICES
‡ Water Services
Provision of pure water in Karachi is one of the major problems of the metropolitan city. NLC has dedicated its bowzers for delivering pure water in Karachi and supplies over 3 million liters of water on a daily basis.

NLC DRIVING SCHOOL
‡ National Logistics Cell (NLC) Driving School Dina was established at 25 acres of land, equipped with modern training facilities in 2003 on GT Road at Dina near Jhelum. The school has the unique distinction of being the only and pioneer institute of its kind in Pakistan, solely dedicated to impart professional training to the driving segment of NLC in particular and the public Sector in general. ‡ Dynamic programme encompassing state of the art equipment, modern driving track, driving simulators, dedicated and professional instructional staff and congenial atmosphere are the hallmarks of the school. The school has a twenty seater Driving Simulator of Japanese origin ‡ The school is committed to develop its students into proficient drivers and responsible citizens with a passion to contribute towards the objective of safe driving and tolerance on the roads. So far this school has trained 983 NLC heavy vehicle drivers.

NLC TRANSPORT SHARE

NLC MATERIAL HANDLING EQUIPMENTS

INTRODUCTION OF CHOUDHARY CARGO

ABOUT CHAUDHARY CARGO
‡ Chaudhary cargo is a local transport goods company. ‡ There office is located in Mari Pur Bus Ada near Hawks bay. ‡ The company is about more than 10 years old. ‡ They give transport facility to their clients and having a 2 , 3 and 4 axle trucks and there quantity is around 8. ‡ They deal in all types of goods and cargo transfer facility.

CHAUDHARY CARGO LOGISTICS SERVICES
‡ Chaudhary cargo has a wide range of transport network all over the Pakistan. ‡ The major cities includes in their transport are Lahore, Faisalabad, Pindi, Quetta and Peshawar. ‡ There Trucks reach upcountry with cargo in 3 to 5 days or sometimes 7 days depending on cargo size and weight.

CHAUDHARY CARGO MATERIAL HANDLING EQUIPMENTS
‡ Chaudhary Cargo does not have a material handling equipments. ‡ The labour is arranged by them for their clients to lift off the cargo or goods and light and medium weight freights are handle by hands. ‡ Heavy Duty Fork Lifters and Mobile Cranes are available on hourly charges but it does not belongs to the company. ‡ Sometimes company bring their own labours. ‡ Oil and Diesels are provided by the PSO , CALTEX TOTAL and SHELL on credit to them.

CHAUDHARY CARGO MATERIAL HANDLING EQUIPMENTS

PERSONAL VISIT PHOTOS
OF PAKISTAN RAILWAY NLC AND CHOUDARY CARGO

AFTER AN EXTENSIVE RESEARCH WE ARE ABLE TO COMPARE PAKISTAN RAILWAY , NLC AND CHAUDARY CARGO

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ ‡ ‡ Pakistan Railway plays an important role in the transportation of goods from one city to another. Pakistan railway is cheaper then NLC and Choudary Cargo. Insurance facility is available in Pakistan railway as they have two options Owner Risk and Railway Management risk such as if customer uses its own labour and if any theft occurs than railway is not responsible and if customer sends goods through Railway Management service they appoint their person who takes care of goods and charges from customer. for eg if 50 packets of cement have to be sent to Faisalabad and their weight is around 3 tons and distance is around 700 km they will charge at the rate of 125.3 per ton . In Pakistan railway rates are totally depend on weight , distance or Km or mileage and it also depend on the railway stations.

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COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO CONTD..
‡ Pakistan Railway charges Rs.5 for per kg to keep goods in their godown after the arrival of goods after 24 hrs. ‡ Pakistan Railway gives free godown to their customer for 24 hrs after that they start to charge. (See Above) ‡ Maximum ZBFC AND ZBKC takes 60 tons of goods, 40 tons and minimum 20 tons of goods. ZBFC and ZBKC are cargo train carriers they have been imported from china and are also known as China Rack and their capacity is more then Pakistan railway has. ZBFC cargo carrier is closed from all sides and all goods , parcel and cargo send through them. And ZBKC is a opened cargo train carrier in this car , trucks and heavy machineries are send.

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO CONTD..
‡ But Pakistan railway takes the longest time to shift goods from one city to another at least 4 to 5 days and the risk is high as compared to road transport. In Pakistan railway if excel load exceeds then the goods are not taken by the railway master. In Pakistan railway Rates are fixed by the government and they are cheaper then road transportation. Pakistan railway provides goods services to each part of the country. In Pakistan railway they have no advance equipment all labour are using and they use local trawls. If NLC does not ship the goods within the time then they have to give 3000 rupees to their customer as a penalty on per ton.

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National Trade Corridor

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ ‡ ‡ ‡ ‡ ‡ ‡ Every day Pakistan Railway sent the goods at 4.00 pm after the complete collection of good. According to the sources Pakistan railways have around more cargo carriers then others in Pakistan i.e. Road transport. Pakistan railway takes all products of government, private and semi government. Railway is cheaper then road transport but they are not speedy. Packing facility in Pakistan railway is partially given though most of the customers do by them self. No automatic tracking system only builty system is available. The routes charges are fixed by the government.

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Handling of goods (Loading and unloading) Pakistan railway has given the contractor to local company and the agreement is of 0ne year. Due to its cheaper rate Pakistan railway has destroyed the work of local truck industry. Pakistan railway has no proper warehousing facility to its customers. Now days all heavy weight cargo are taken by the Pakistan railway. Pakistan railway has their own weighing machines. Pakistan railway has their own policy and can be seen in the picture. Routes are selected by the railway management. Diesel rates are fixed by the government and they are cheaper then another road transport companies.

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ NLC is a multifaceted organization where diversification guides growth. With business interests, both domestic and international, NLC's development strategies exploit the strength of the core businesses while evolving challenging activities. Through infrastructure development, provision of freight services, management of border terminals and strategic inland dry ports, manufacturing and engineering excellence, enhancing energy resources; we Endeavour growth towards a self reliant Pakistan. NLC provides online cargo tracking facilitates to its customers and Pakistan railway has no such computerized system as well as chodary cargo also. NLC provides cargo inspection machines. NLC only provides vessels to its customers and no such packing facilities are provide to their customers.

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COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ ‡ Containers are also not providing by NLC customer have to arrange by its self. NLC provides warehousing facility to its customer for container and they charge around Rs.40000 to 5000 rupees per day depending on cargo weight. They have around 1500 trucks. NLC take 2 to 4 days to reach its destination. Insurance facility is provided by the NLC to its customer. Builty system is not available in NLC. NLC have 40 feets (25 tons) , 45 feet ( 35tons) MB VEHICLES ( Mercedeze Benz Vehicle ) and GC VEHICLES (Grey Carrier vehicle) and they are all Volvo made vehicles.

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Relative Operating Characteristics Surveyed after Great Research
Operating Characteristics Speed Availability Dependability Capability Frequency
1=best, 5=worst

Rail 4 2 3 2 4

NLC 2 1 1 1 2

Chaudary 3 3 4 3 5

COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO CONTD..
‡ ‡ ‡ They have both types of vehicles Containerized and flat truck vehicles. Rates are not fixed they are changed daily on the basis of market need and oil prices. NLC have their own fueling system the diesels are given to their vehicle from their own petrol pump and they charge diesel rates according to the distance and cargo weight (Rates not disclosed by them). NLC have a edge from their competitors they have modern handling equipment that can carry up to 60 tons of containers. If the container was not taken by the NLC on time then customer can fined them on daily basis i.e. Rs.3000 per kg. Route Racke done by NLC which means to select the shortest routes and it all done by the Lt. Colonel and liuetent after every 5 to 8 years.

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COMPARISON BETWEEN PAKISTAN RAILWAY , NLC AND CHOUDARY CARGO
‡ NLC only takes the containers of government and semi government and some private companies such as Pakistan Ordinance factory , radio broad casting , Pakistan Army etc. Packing of goods done by the customers. NLC only arrange container Vehicles and ordinary vehicle. NLC as compared to Chowdary Cargo is more superior as well as from Pakistan railway but they are reliable ,to the time but little costly approximately they charge Rs.60,000 to 80,000 for 40 feet containers but rates are depend on the route distance.

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COMPARISON TABLE AT A GALANCE OF PAKISTAN RAILWAY NLC AND CHOUDARY CARGO

Pakistan Railway
1.Pakistan Railway is cheaper. 2. No speclized Handling equipments. 3. No proper Warehousing. 4. Charge 250 to 500 rupees for godwon for 24 hrs. 5. Takes 5 to 6 days to reach its destination. 6. Builty System no computerized tracking. 7.No computerized System such as ERP.

NLC
1.NLC is expensive then Pakistan Railway. 2. They have speclized equipments. 3.Proper warehouse container facility. 4.They charge 5000 to 7000 rupees for 12 hrs. 5.They take 3 to 4 days. 6.Computerized tracking system. 7.ERP SYSTEM is available in NLC.

Choudary Cargo
1.Chaudary cargo is also expensive. 2.They don¶t have specialized equipments. 3.Proper warehouse facility but not comparative with NLC. 4.They sometime don¶t charge for there cargo. 5.They take 4 to 7 days for up country. 6. They have a builty system.

7.No computerized system all hand work.

Pakistan Railway
8. Pakistan Railway can carry up to 60 Tons of Cargo. 9. They don¶t have specialized staff. 10. Facing problems in term of different gauges. 11. Rates Charges are fixed by the government a edge for Pakistan Railway. 12. Fuel is given by the government on discount but not disclosed by the officer.

NLC
8. NLC is capable of carrying 45 tons. 9. They have speclized staff and all are train. 10. Facing problems because of road conditions. 11. Rates are change on daily basis.

Choudary Cargo
8. Chaudary cargo can carry up to 20 to 40 tons of cargo. 9. They also don¶t have specialized staff all local labour on rent. 10. Proper warehouse facility but not comparative with NLC. 11. Rates are not fixed they charge on the weight of the cargo and company appearance. 12. . PSO , Caltex , Total and shell gives diesel on contract basis to them.

12. They their own PSO petrol pump from where all trucks fill diesel and the fuel is given on discount.

ADVANTAGES OF NLC OVER CHAUDHARY CARGO

RECOMMENDATIONS
± Pakistan Railway should improve the line gauges to promote the cargo transport from one city to another as well their warehousing facility. ± Pakistan Railway should have a latest handling materials. ± NLC should try to adopt more modern technology such as GPS so that drivers can avoid from traffic jam and reach its destinations. ± NLC must develop more logistics techniques. ± Chaudhary Cargo have to develop its fleet in proper manner. ± They should develop a driving school facility for the drivers.

CONCLUSION
‡ Logistics plays an important role in the development of the country. Pakistan can earn a heavy revenue from transport of cargo from one city to another. ‡ Pakistan Railway, NLC and Chaudhary Cargo is playing its role to promote the logistics but there is more to do in order to give Pakistan a name in the world just like Japan. ‡ Pakistan Government have to develop a robust policy in logistics and they have to open a training institute and should implement the Axle Load Policy in all trucks so that the roads will not be damaged results in delay transportation of Freights and accidents.

MANY THANKS TO THOSE WHO HELP US TO SHARE THE INFORMATION
‡ Pakistan Railway ± Parcel Office (Karachi). Mr.Fiaz. ‡ Mr. Muhammad Aslam ± Pakistan Railway (Commercial Superintendent (Parcel). ‡ Brigadier Fahim ± NLC Freight Cargo DG. ‡ Mr. Qasim Bin Imad ± NLC (Manager Marketing). ‡ Mr.Saud Khalid Chaudhry & ‡ Mr.Hamood Khalid Choudhry. ‡ National Highway Authority.

MANY THANKS
FOR YOUR

KIND ATTENTION

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