HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAYRESEARCH OBJECTIVES:The study is part of a larger consultancy being undertaken in conjunction with aseparate team. The terms of reference assigned to this team have generated thefollowing outputs: What are the mean hurdles faced by Pakistan Railway in delivering itsefficient performance?Which factors are responsible for these inefficiencies?How to overcome these inefficiencies?What are the different procedural steps for turnover of Pakistan Railway?Time FrameThe Research will be completed in one month starting from startingfrom 22-12-2009 to 29-01-2010..Preparation of research proposal 7 daysData collection 7 daysData analysis 5 daysConclusion 2 daysFinal report composing 8 da

List of Trains• Allama Iqbal Express• Bahaudin Zakariya Express• Bahawalpur Express• Baluchistan Express• Bolan Mail • Buraq Express•Chiltan Express•Faisalabad Express•Farid Express• Jaffer Express• Karachi Express• Karakoram Express• Khush Hal Khan Khatak Express• Khyber Mail • Pakistan Express• Rawalpindi Express

• Samjhauta Express• Shalimar Express• Sialkot Express• Subak Kharam• Subak Raftar •Tezgam• Super Parcel Express • Mehrabpur train derailment  Future DevelopmentsNew LinesIn 2006 it was announced that a railway line between Gwadar and Quetta will be builtand the Bostan-Zhob narrow-gauge railway line will be converted into broad gauge in2007 at a cost of US$1.25 billion. Plans to increase train speeds, install more lengths of double track and to convert the country's railways to standard gauge are also currentlyunder work.ElectrificationI n   a d d i t i o n ,   t h e r e   a r e   s e v e r a l   o n g o i n g   e x p a n s i o n   p l a n s   i n t o   C e n t r a l   A s i a  a n d electrification of the entire Pakistan Railways, estimated at a worth of about $2 billion over the next five years (from 2005 to 2010).High-Speed RailIn 2008, Pakistan Railways announced a plan of the construction of a $1 billion high- speed railway line between Punjab and Sindh.International LinesChinaEstablishing direct rail connections with China were announced by Pervez Musharraf in2006.TurkeyBUSINESS RESEARCH REPROT15

  IranIn spring 2009, a rail link between Quetta and Zahedan was constructed and allowedPakistan Railways direct access to Europe and the Middle East. The gauge changingstation was constructed to the standard gauge at Zahedan and the Turkish Lake Van trainferry (soon to be bypassed) and the Marmaray Tunnel under the Bosphorus. It is plannedto run

container trains and through passenger trains. Pakistan plans to convert the Quettaline to standard gauge eventually.

 

 Problems of Pakistan RailwaysPakistan Railways have been facing a persistent deficit since 1975-76. This has gravei m p l i c a t i o n s   f o r   t h e   n a t i o n a l   e x c h e q u e r ,   t h e   m o r a l e   o f   t h e   o r g a n i z a t i o n ,   r e n e w a l   o f  essential assets and consequently the quality of the service. It indicates existence of  chronic problems that have perverted the organization’s performance. While a detailed a n a l y s i s o f t h e o r g a n i z a t i o n r e q u i r e s a l o n g e r t i m e p e r i o d a n d m o r e r e s o u r c e s , s o m e major issues identified are:Absence of Clear DirectionIn discussions with officers of Pakistan Railways concern for the abysmal state of affairswas universal. However, there was no clarity on a vision for a desirable change. There appeared to be the anomaly of the desire for improvement jarred with latent fears of theresults of the reform. These fears result from an absence of a clear understanding of theend point of the reform. Reform for what? The question remains unanswered in the mindsof most officers and a collective vision does not exist.The vague sense of vision and direction also pervades the upper echelons of decisionmaking. The Government has still not been able to articulate a clear direction for the national railways. In any case, in the absence of an overall national transport policy it isdifficult to find a viable solution for railways in isolation.Asset DepletionP a k i s t a n   R a i l w a y s   h a v e   t h e   r e s p o n s i b i l i t y   o f   d e v e l o p i n g   a n d   m a i n t a i n i n g   t h e i r   i n f r a s t r u c t u r e .  T h e   t a s k   b e c o m e s   m o r e   d i f f i c u l t   a s   R a i l w a y s   h a v e   t o   d e p e n d   o n centralized structures for approval and funding. As mentioned earlier, this makes it lesscompetitive in response to road carriers who do not have to invest in basic infrastructurelike roads.Orientation (Public Service versus Commercial)Pakistan Railways are “administered as a special department of the federal governmentand enjoys par t ia l  autonomy  in   i t s day   to  day opera t ions  wi th in   the overa l l  pol icyframework and publ ic service

obl igat ions imposed on i t by the Government . I t can therefore be classified as a quasi-commercial organization being managed with socialconsidera t ions” .  To date ,  Pakis tan  Rai lways  have  given  pr ior i ty ,  under  success iveGovernment directives, to passenger movement over freight on government approvedrates . Pakis tan Rai lways are the only ‘ long route passenger carr ier for 98%’ of the  population, and its pricing for this sector is ‘strongly influenced by social considerations’.This orientation, both at the policy and executing level, has hampered the organization’sability to function as a commercially oriented and profit making entity. In most countries passenger business is a non-profit making venture.DETERMINENTS OF SERVICES IN RAILWAYSFol lowing  are   the  Services  Determinants  which  shows  the  ef fec t iveness  of   ra i lwayservices. We can say that these are the goals for Pakistan railway if these are achievedPakistan railway can never be in loss.These are: Reliability, Responsiveness, Assurance, Empathy and Tangibility. RELIABILITY:•The service management should be reliable in such a way that they must provideservices as promised. They should never deceive their customers. Like in Pakistanrailways there must be time mismanagement which is a major issue in PakistanRailway Department.•If there are any new services to be offered in near future, the customers must be  provided with the information on the right time so that they can avail it easily.•The ra i lway  service  management  must  be  able  and ski l led  enough  to  solvecustomers problems e.g. seat reservations, availability of seats in case of need,luggage safety etc.BUSINESS RESEARCH REPROT47

  Responsiveness:•The employees hired must be willing to help their customers al the time of need.In Pakistan railways unfortunately it doesn’t happen. Passengers face a lot of  problems because they don’t find the willing and cooperative staff to help themout.•The employees in customer services canter at railways must also have enoughknowledge to help the customers in the right way. They must have knowledge togive the customers regarding the train timings, the gap between arrival times,departure times and weather conditions as well.•The employees must be ready all the time to help and manage their customers interms of everything related to the customers and their journeys. Empathy:It means•The service sector of railways must be so much managed that they can easily give personal a t tent ion to a l l the passengers having any kind of problem in thei r    journeys.•The services staff must show a caring and touchy fashion in their appearance to the customers so that the customers fee l f ree to consul t them in case of any timings problem, luggage issues, seat reservation issues etc.BUSINESS RESEARCH REPROT48

  Assurance:•The management should hire those employees who carry the ability to instill andcan give a better impression to their customers by helping them correctly. Thosewho can develop confidence in the customer’s mind that they really care for them.Like helping them in the seat reservations, safe and sound journeys with their  families etc.•They must give the customers feelings that their journey with our service staff  will always be safe and sound for them and their families so that they can alwayscome to them.•T h e   m a n a g e m e n t   m u s t   a s s u r e   t h a t   t h e i r   s e r v i c e   s t a f f   i s   a l l   c o u r t e o u s   a n d enthusiastic to perform their duties. In Pakistan railways it doesn’t seem that thestaff is really want to help the passengers because they don’t show seriousness totheir duties.Tangibles:It includes

•The railway stations and the equipment required must be of latest technology so that every thing could be managed easily and with saving time of the departmentas well as of the passengers. The ticketing system, luggage checking system,r e s e r v a t i o n   p r o c e d u r e s ,   l u g g a g e   s a f e t y ,   a l l   s h o u l d   b e   h a n d l e d   w i t h   l a t e s t equipment available in the market.BUSINESS RESEARCH REPROT49

 •The employees must have a neat and professional appearance which can attract the customers to fee l f ree to ta lk to them and expla in thei r i ssues eas i ly . Thedresses  of   the service  a t tendants should be  pressed  and  t idy  which  gives  a  professional appearance.•The employees should also have the habit of understanding the needs of their  customers. They have a sense of sympathy for their customers so that they can perform their services in the best manner.Conclusion:According to my understanding a market manager must follow all these determinantswhich are set on International standards. The Manager should prepare his followers toachieve all these services for their value customers in order to maintain their services andgroom themselves more and more

 

  Recommendations1.The Overarching Issue: A National Transport Policy An overarching def ic i t in Rai lways p lanning in Pakis tan has been the absence of a ‘National Transport Policy. Despite the fact that the Railways remain a highly capital intensive business, government has never formulated a holistic policy that would analyzethe overall transportation issues and balance investment into road and rail, supported byany research. Devising a National Transport Policy or even identifying its contours goes  b e y o n d   t h e   s c o p e   o f   t h i s   r e p o r t   b u t   i t   i s   s t r o n g l y   r e c o m m e n d e d   t h a t   t h e   i s s u e   b e considered by the Government. Not only should railways policy be devised within the framework of an overall transport policy, the implementation and impact should be reviewed within this framework. Ideallythe Ministry of Railways should be subsumed into a larger entity which should be theMinistry of  Transport and Communication. That Ministry should be responsible for theformulation of the National Transport and Communication policy . Nevertheless, this can be seen as a long-term government priority, and given existing political realities ande x i g e n c i e s   t h e   M i n i s t r y   o f   R a i l w a y s   c a n   r e t a i n   i t s   s t a t u s ,   h o w e v e r ,   w i t h   c l e a r l y demarcated roles and responsibilities.BUSINESS RESEARCH REPROT56

 2. Eliminating Political Interference

 Any process of reform that cannot be insulated from extraneous interference will fail. Atthe political level there has to be recognition of the seriousness of the problem. Railwayshave a very important role in the economic growth and development of Pakistan andunnecessary political interference in decision making will impede the country’s progress.India’s success in Railways’ turnaround owes a lot to marginalisation of interference.3. Approaching Reform of Pakistan Railways Pakistan Railways face chronic issues that have led to continued deficits over threedecades. Turnaround of the organisation will be a challenge. The deficit itself has causeddemoral isa t ion and res ignat ion to the s ta te of af fa i rs which in turn has ensured the continuity of losses and depletion of assets.The ‘turnaround’ will need to be undertaken in a number of phases. Each phase will needto ident i fy a separa te object ive . At th is point the pr imary object ives wi l l have to be retrenchment and repositioning for elimination of the financial loss of Pakistan Railways.This will have to be achieved without major re-organisation of the core business sincethat might prove counter-productive as the organisation has neared a point of collapsewhere it may not be able to bear the throes of major changes. It has to be a deliberateincremental approach.In the immediate phase corporatisation or privatisation cannot be pursued. These willremain counter-productive as without transforming the organisational ethos, and withcontinued political intervention, changes in organisational structures do not change theend resul ts . There are many examples in the country where corpora t isa t ion has not insulated organisations from political interference, corruption and inefficiency.

  Secondly, most functions in Railways’ operations are specialised and dependence on thecurrent human resource remains inevi table and so does the ownership of the reform  process by the current se t of employees . In our in terviews we found that the word corporatisation (which is sometimes confused by employees as privatisation) invokesserious reservations even from senior officers of the regular Railways cadres. Faith will have to be placed in the current set of officers and staff to begin the process of the turnaround. This will be possible only if the organisational ethos gets transformedfrom low morale and   indi f ference   to  ownership  of   the  process  of   saving  Pakis tanRailways. This will require leadership and political commitment from the Government.I m p o r t a n t   f a c t o r s   t o   c o n s i d e r ,   i n   a d d i t i o n   t o   i n v o l v e m e n t   i n   t h e   r e f o r m  p o l i c y development ,  wi l l  be   t ra in ing   to   improve  management  or ienta t ion,   improved  career  structures, incentives and accountability.4. Finding a Direction Railways under the British developed as an important infrastructure for imperialism.Whether it developed routes for export of raw material out of India or strengtheningdefense related lines it had clear directions. After independence the direction, apparently,did not get revisited and, as already stated, in the bulk of interviews conducted there wasambigui ty  among  the  off ic ia ls  of  Pakis tan  Rai lways  about  any  vis ion   for  Pakis tanRailways.