This action might not be possible to undo. Are you sure you want to continue?
The railways industry is not attractive to many of the investors. Government is not taking any interest to make some improvements in this industry. The condition of this industry is getting worse day by day. When we talk about Pakistan railways industy Pakistan Railway always comes into our mind with the view as the cheapest mode of transportation but no now is willing to use this except the poor people or the organizations. But the current condition is worse. Today almost all government corporations of Pakistan are in worst shape but Pakistan Railways is in really bad condition and costing country huge loses every month. For more than a century the railroad was the dominant form of land transportation in much of the world. It was, and still remains the economic backbone of a country. It has a total of 220 passenger trains/locomotives and the department has decided to shut down 102 trains due to financial loses. Today Pakistan Railways with Rs.334 billion liabilities is at the verge of bankruptcy because of corruption, shortage of locomotives and losses incurred due to the running expenses. According to one report Rs 21 billion is spent on wages and pensions every month leaving the department less or nothing for maintenance of power and rolling stocks.
Instead of growth in this sectors only continuous losess can be seen in this industry. With the curent management system and overall structure of railway industry we cant expect any growth from this industry. A major revival is much needed before it goes bankcrupt. The government is not unaware of the current condition of PR. Their ignorance extent can be known from their interest in this sector as the proposed budget says ³budgetary expenditure on railways was only Rs45.5bn compared to Rs155bn on the national highways´.Only 42% of the total tracks is being currently used ad it is expected that this amount will fall. The remaining 58% is not bwing utlilzed and why not its must be answered by the government.
COMPETITIVE FORCES: Power OF Buyers:
The buyers of railway industry are scattered so their bargaining power is low. While the switching cost for the buyers are high but they are switching because of the importance of transportation.
Power of suppliers:
The supplier of railways industry are not concentrated. They are few in numbers. The fuel supplier is PSO who has currently stopped the supply due to deferred payment by railway industry. Due to this the trains were stopped. According to PSO officials the railways has received over 3 million litres of diesel from March 16 to March 20. The daily consumption of diesel is approximately 422,000 litres. So railway industry is much dependent on the selected suppliers.
Competition: As we know that the in railway industry PR has not any competitor because of their monopoly in this industry as it is a government owned organization. 6 5 4 3 2 AirLine 1 0 Motorways Motorways Airline industry . Power of rivals: There are no rivals in this industry cause of monopoly of PR. There are two main competitiors of PR 1. Power of new entrants: There no threat of new entrants in this industry except it can go for privatization. Some days before they also stopped the supply to the railway industry. Here the powers of suppliers are very high. 2.One more key supplier of this industry is the water board. Power of Substitutes: There is very high power of substitutes in this industry cause the substitutes are the airline industry and motorway industry.
6. Over the past ten years. According to the National Disaster Management Authority.7 billion to the railway network as several hundred kilometers of lines were washed away. Pakistan railway: PR is facing losses due to mismanagement. y It consume more time of their customers. There have also been political interventions in decision-making about which new routes to open.65 percent of the total road network . the heavy floods have caused a loss of Rs. y Its Shipment facility is not so good so people or businessmen prefer other substitute like buses. They have their stations at every 20 minutes.carries 80 percent of Pakistan's total traffic. With the rush of people. y Pakistan Railway has no Comport at all. y Train gets too much stops during the Journey. y There is no proper check of tickets in Trains. y Train is always overloaded with the bundle of people and Customer feel very difficult to take their seats. poor maintenance and weak ticket checks that allow people to get away with not paying for their tickets. Aero planes and other services are getting more and more profits. PR is not allowed to charge a market-clearing price. road traffic ± both passenger and freight . The 9.has grown significantly faster than the national economy. Most of the time the 2 persons claim of their seats because they have same seat numbers.Road transport is the backbone of Pakistan's transport system. The railway coaches were also the targets of angry mobs and arson attacks after Benazir Bhutto¶s assassination resulting in huge losses.which is 3. The earning of Pakistan Railway is always loses for the Government but on the other side buses. Aero planes. Currently. Furthermore. y y The staff of Pakistan Railway is In-efficient that¶s they give the tickets of same seat to the 2 customers. etc y y No stations in big cities like Dera Ismail Khan Etc but buses and other transportation facilities are there. So it is the wastage of time. y The expenditure of Pakistan Railway is very high as compare to revenue. So people get frustrated. . it is accounting for 91 percent of national passenger traffic and 96 percent of freight. The people cannot reach their destination on time. fares have always been dictated by the federal government.574 km long National Highway and Motorway network . People feel very difficulty while they are using Pakistan railway service but they get very tied due to uncomfortable seats. the customer¶s dress gets dirty. So they capture the market of Pakistan Railway. Pakistan Railway should launch some comfortable Trains because customers feel comfortable Journey through comfortable buses and vehicle like Daewoo and Aero planes.
To reduce corruption employees should be give performance based remuneration. Blue ocean creation: We can create Blue Ocean by looking across the time. This is also the possible solution of problem because currently government of Pakistan has to bear the huge losses monthly. But there is a lot of corruption in this organization and to eradicate it. 7. 1. 3. In addition. 2. The productivity of PR¶s freight services is about 1/8 of Chinese Railways. 1/3 of Indian Railways (IR). PR continues to cross-subsidize . privatization is the only solution. To ensure the time efficiency proper online ticket system should be introduced instead of waiting in the line for the purchase of tickets. Other benefits of privatization of Pakistan Railways include the increase in service quality and expansion of Railways because government has nothing to invest in PR. Pakistan Railways should be partially privatized. Over employment should be reduced.5 2 1. The duration of a train on station should be reduced to ensure arrival nd departure of customers in time.5 3 2. Reduced the work force by another 5000 employees through attrition and rationalization. We need proper implementation of the proposals. Pakistan Railways (PR) needs to take major steps to make freight services more competitive.5 0 Railways After analyzing the current situation of PR there are many ways through which a revival can be made of PR. As we know that PR is a government owned organization. 4. 6. 5. We have to unbundle the railways infratsrture into rail tracks and management and services. and half of Thai Railways. a network of comparable size.Railways 3.5 1 0. Late departures should be discouraged so ensure the timely arrival and departure.
13. Discounts for students. resulting in non-competitive freight rates over road transport. Reduction in the number of train services on un-remunerative routes.e. China rail is 2-3 times cheaper than road. 12. a) c) Electrical engines Setup of such system that improves the efficiency b) New railway tracks d) Online ticketing e) System that finds defaults in railway tracks 14. Thar coal reserve of Sindh is about 850 Trillion Cubic feet which is more than oil reserves of KSA and Iran put together i.passenger services from freight services. Pakistan railway needs to encourage investment to utilize the modern technology and to promote the research and development activities. By doing so the sole dependence on oil reserves would be avoided. As a result. 8. The employees should be trained how to treat the customers. In contrast. As China did in several other sectors including coal and nuclear power generation and manufacture of automobiles it has granted access to its enormous market by insisting on the transfer of technology. journalists and old age people will be given Government should ask Chinese for help in order to make it profitable organization because China has made wonderful progress in railway industry. carrying less than 10 percent of passenger traffic and 5 percent of freight. 9. 11. The technological factors are of great importance in any industry like Pakistan railway. 10. the PR has a very low and stagnant market share. 375 billion barrels. It has managed to develop its railway industry to the point at which it was able to out-compete the established systems in Europe and North America in winning the contract to build a high speed line connecting Mecca with Medina. The waiting lounges of the railway should be redesigned and must provide comfort zone for the customers . At present. Coal reserves should be utilized as Pakistan is rich in coal reserves.
extra routs of rails 3. oil consumption 4.performance based remuneration Reduce 1.comfort zone for customers 5. technology improvement Eliminate 1. employees efficiency 3.time efficiency 4. aging railway tracks 2. coal consumptions 6. redefined enviromnt 2.inovative technology 3. over employment 2.new recriutment system Create .6 5 4 3 2 1 0 cost or fares friendly service Time efficiency Ease Technology Efficiency of usage Employees Speed Railways AirLine Motorways Raise 1.corruption 1.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.