All transport services may be opened to private sector
Good move. Socialism and nepotism does not work.
http://www.dawn.com/2012/02/13/all-transport-services-may-be-opened-to-private-sector.html
ISLAMABAD: The government is opening up the entire transportation sector and services — rail, road, air, ships, ports, airports and waterways — to the private sector under an integrated National Transport Policy (NTP) expected to be considered for approval by the federal cabinet in a forthcoming meeting.
Informed sources told Dawn on Sunday that a comprehensive document envisaging policies and framework to guide planning, implementation, operations and monitoring of the transport system was finalised at a recent meeting presided over by Deputy Chairman of Planning Commission Dr Nadeem-ul-Haque and attended by secretaries and senior officers of the ministries concerned and organisations in the transportation chain.
The NTP covers six areas and five sets of issues across the different modes and levels of government in whole or in part. These six areas include roads, railways, ports and shipping, aviation, pipelines and waterways. The five sets of issues are urban transport, rural transport, transport services, logistics and customs and inter-modal services. All these modes and sets would be brought under one coordinated ministry.
The government initially considered creating a new ministry of transport to cover these areas but then decided to place under a renamed ministry of communications and transport (MOC&T) to avoid loss of time in the creation of a new ministry. As a result, the restructured ministry would house various modal and supporting agencies such as safety, research and development for coordinating policy, planning and monitoring across the national and sub-national transport system and its linkage to economic and social development.
The national trade corridor task force, transport advisory council and provinces would work in coordination with the ministry. The government has acknowledged that 95 per cent of all passenger and freight transportation was being made through roads and since the trucking and passenger services were in the unorganised private sector, it is a source of high-cost external factors hampering not only domestic trade but also with neighbouring countries.
ROADS: In the road infrastructure and services sector, the government will give priority to maintenance of roads that will primarily depend on user charges. All major construction decisions will be subject to rigorous assessment and cost-benefit and alternatives analysis to justify a project. The role of private sector and public-private participation (PPP) in infrastructure finance and service provision will be utilised to expanded levels.
This will lead to strict enforcement of the axel and gross loads, certification, training and licensing regulations of the trucking industry and other modes while regulated passenger fares will be adjusted rapidly to meet the demand of fast changing conditions in a deregulated environment. The fares will be completely deregulated.
RAILWAYS: The railways will be operated purely on commercial lines through use of commercial management practices and the focus of future development would be on freight. Pakistan Railways will be directed to focus on providing core services and divesting non-core activities.
The cross functional subsidies in the railway operations will be eliminated. The PR will provide loss producing lines or services only when the government decides to continue them and services and provide funds for subsidising the cost. The PR will also be responsible for adapting a continuous rolling stock management system and expanding the role of private sector and PPPs for increased financial participation.
PORTS & SHIPPING: In the shipping sector, the government will continue with port management and operations but will corporatise and outsource services to the private sector. An integrated master plan will be prepared to monitor port charges and reduce them where excessive rates are found compared with revenues and profit levels of other regional port operators because higher charges were resulting in trade constraints. Also, the Pakistan National Shipping Corporation (PNSC) will be made to compete on an even basis with all competitors for providing transport and freight services to government cargo.
AVIATION & AIRPORTS: The government plans to restructure Civil Aviation Administration into a competitive organisation, independent from provision of airport and other services, to ensure customer choice, safety, environmental integrity and energy efficiency. The airport management and related services will be commercialised through PPPs and privatised. Likewise, the Pakistan International Airlines (PIA) would be opened up for private sector participation while passenger and cargo services will be deregulated. New airports and runway investments will be based on prior cost and alternative option assessments to ensure full cost recoveries.
PIPELINES: To reduce road congestion and transportation costs, the use and development of a pipeline infrastructure will be aggressively pursued through increased private sector participation for both domestic and international fluid and gas transportation. Operating and safety standards will be put in place before inviting the private sector in pipeline investments and their operations.
URBAN TRANSPORT: To increase productivity of urban transport, the government will increase the use of large buses on priority lanes first and then seek investment in mass transit systems in major cities. The public fares will be formula based indexed to fuel prices to change automatically.