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HomepakistanFederal Cabinet Greenlights Negotiations with China for Major ML-1 Railway Project

Federal Cabinet Greenlights Negotiations with China for Major ML-1 Railway Project

Upgraded Plan to Boost Train Speeds to 160 km/h and Increase Daily Train Capacity from 34 to 120 for Future Growth

Federal Cabinet Approves Negotiations for Major ML-1 Railway Project with China

ISLAMABAD:

The federal cabinet has granted approval to commence negotiations with China on the Financial Commitment Agreement for the Mainline-1 (ML-1) railway project, a crucial component of the China-Pakistan Economic Corridor (CPEC). This decision was made during a cabinet meeting chaired by Prime Minister Shehbaz Sharif on Friday.

The ML-1 project, which is integral to Pakistan’s infrastructure development under CPEC, aims to revolutionize the country’s railway system. The cabinet’s endorsement marks a significant step forward following the approval of the annual budget for 2024-25 in June, which officially launched the second phase of CPEC. This ambitious project will be undertaken in three phases and is expected to substantially enhance Pakistan’s logistics and transportation capabilities.

Project Overview

The ML-1 railway line stretches 1,726 kilometers and is designed to improve both passenger and freight services across Pakistan. Once completed, the upgraded line will support train speeds of up to 160 km/h, though operational speeds will be set at 120 km/h. This significant upgrade is projected to increase the railway’s capacity from 34 to 120 trains per day, addressing future growth and boosting overall efficiency.

The upgraded ML-1 project is set to expand its passenger capacity from the current 29 million to an impressive 170 million annually. Additionally, the freight capacity will see a substantial increase from 8 million to 43 million tons. These improvements are expected to meet Pakistan’s transportation needs for the next 25 to 30 years, facilitating economic growth and enhancing connectivity.

Financial and Technical Aspects

The Chinese government has pledged to provide financial support for the ML-1 project, potentially including favorable loans. The specifics of the financing will be finalized through discussions between the relevant departments of both countries. The project’s financial agreement will play a crucial role in determining the scope and execution of the upgrades.

The current focus of the negotiations includes the Financial Commitment Agreement, which will be presented to the cabinet for final approval once negotiations are complete. This agreement will outline the financial terms and conditions of the project, ensuring a clear and structured approach to its implementation.

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Concerns and Considerations

While the ML-1 project promises substantial benefits, there are concerns regarding the project’s scope and cost. Notably, the current PC-I (Planning Commission-I) for ML-1 does not encompass the costs related to rolling stock and security infrastructure. To address these aspects, a separate PC-I, estimated at around Rs36 billion, is being processed to cover security measures necessary for the project’s success.

The upgraded ML-1 is designed to integrate advanced railway technologies, ensuring a combination of speed, reliability, and capacity. The project aims to provide long-term solutions for Pakistan’s transportation challenges, enhancing both domestic and international trade routes.

Future Outlook

As negotiations proceed, the focus will be on finalizing the financial arrangements and addressing any outstanding issues related to project execution. The federal government remains committed to ensuring that the ML-1 project meets its objectives and delivers significant benefits to Pakistan’s infrastructure and economy.

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