Project: Pakistan Railways

HERE are five major problems Pakistan Railways is facing: (a) shortage of advanced locomotives, (b) railroad cars, (c) mismanagement, (d) single railway track and (e) lack of technique-oriented staff, including railway minister. All such problems are related to finance. In fact, the Pakistan Railways is one of the richest departments in the country as it has large commercial lands in every metropolitan and small city in the most prime locations. These lands are either no-mans-land having sewerage lines or dams for providing water to nearby cities or they are under the control of land-grabbers. These crime-infested areas are safe havens for criminals. Large swathes of agriculture lands of the Pakistan Railways are under the control of landlords and politicians who pay a meager amount annually. We can overcome many problems of the department by managing the railway lands effectively and prudently. A detailed survey of the railway land is essential to assess its value. A board of honest individuals should be constituted to chalk out a strategy. The real estate is one of the most lucrative businesses. We have examples of countries like the UAE which has turned a desert into an oasis by focusing on real estate. There are three ways to generate revenue: giving the railway land on 30, 50 and 99 years lease. Its agricultural land can be leased for 10 to 20 years on annually increased percentage of lease. With such methods and a little help from the federal government, the Pakistan Railways can be revitalized and jobs of thousands of employees can be saved. As a result, cheap, fast and comfortable mode of transportation can be provided to the public.However, there is a need to reconstruct the Pakistan Railways to make it a profitable and beneficial service. According to the railway minister, the department has shortage of locomotives due to paucity of funds. If the government adopts, without any internal or external pressure, the policies suggested above, the Pakistan Railways can certainly become a profitable department.The current set-up of the Pakistan Railways is old and hub of corruption, plagued by red-tape. There is a lack of motivation and technique-oriented staff. The old bureaucratic structure of the department is the rot which is destroying this vital service.We have first and second generation locomotives which are low-speed, weak, inefficient, have high

consumption of oil, and need expensive spare parts. Again, if commercial and residential railway colonies are utilized and managed properly, there could be no dearth of funds for procuring advanced locomotives and other equipment. By acquiring sophiscated third generation locomotives and other system based on advanced technology, we can save billions of rupees annually which we spend on maintenance of old equipment. The current reservation system should also be improved by following Chinese, Japanese and Indian railway structure. Although it might be a difficult task for a weak coalition government, yet it is not impossible to revamp the Pakistan Railways through OD and change management.

QUESTIONS: (3000 words) Devise a Business Plan for Railways till the year 2020. Your plan should be phasal. and should involve the re-evaluation of organizational structure through OD. Proper investments should be forecasted/ ensure proper change assumptions i.e. phasal strategy. Your report should be structured as follows 1. Introduction to the Sector :----------------------------------------(500 words) Contemporary Organizations involved/ share holdings? Organizational / Governance structure Public and Private Sector entities? WAPDA, PEPCO PPIB, AEDB / KESC / PIA /Railwasy etc Regulations and competitors. SWOT of the power sector (evaluate macro and micro environment) Circular Debt issue

2. Your Strategy:

2000words

Your theory O & E Your OD I,e structural / technology / behavioural (both for peak and low demand)? Maximum choose 2 No of change agents you propose Resistance / organizational politics you expect Investment you propose Type of leadership you propose

 Source of Investment you propose IPPS / Imported electricity / Federal budget /Rentals / Donor Agencies. / Strategic Alliances with other Nations / Incentives for investment you propose Phases of you Change Plan Your proposed OD grid Your Metrics of change Your leadership Your process interventions Your team building

3. How effectively you can make your plan sustainable? 500 words

NOTE: Your report must be properly referenced, as your references will be checked and your report will be graded accordingly. Your assumptions must be based on real time forecast and scenarios. Your presentation should be not more than 15 min followed by an individual viva carrying additional 5 marks. Ensure your presence in the class on the 16th lecture.