INP-WealthPk

Shifting Freight Carriage from Road to Rail

February 22, 2022

By Jawad Ahmed ISLAMABAD, Feb. 22 (INP-WealthPK): Road and rail are the two major modes of freight and passenger carriage in Pakistan. Despite its potential and importance in accelerating economic growth and contributing significantly to employment creation in the country, Pakistan’s logistics sector performs poorly on the logistic performance index, ranking 122nd out of 160 nations. Though Pakistan Railways (PRs) has monopoly on rail transportation in the absence of the private sector, roads predominantly capture over 90% of freight and passenger transportation share in the country. Over 94% of all freight and approximately 93% of all passenger movement is done through roads, according to WealthPK. In the 1950s, the share of PRs in freight transportation was over 86%, but has since dropped steeply to around 6% today. This over-reliance on roads for transportation leads to traffic congestion and deterioration of major road networks. The national highways and motorways, though account for only 12% of total road length in Pakistan, bear almost all freight traffic. The National Highway (N5) is the busiest route connecting Karachi in Sindh with Khyber, the last tribal district in Khyber Pakhtunkhwa province bordering Afghanistan, carrying more than 65% of inter-city traffic and serving over 80% of urban population. The over-dependence on roads for freight and passenger carriage has resulted in many issues, particularly the environmental degradation, thus making sense for Pakistan to shift the burden from road to rail. It is astonishing that about 45% of the approximately 354,000 registered trucks plying on Pakistan’s roads are from the 1980s or earlier models with rigid suspensions. These outdated trucks not only deteriorate road conditions but also put a detrimental effect on the environment. A lack of regulatory environment in the trucking industry leads to over-loading, poor safety and poor service quality, reported WealthPK. According to a World Bank research, also seen by WealthPK, a single freight train can reduce congestion of 100 trucks on the road at a time. Rail transport is considered the cost-effective mode of logistics in today’s world as a tonne of goods can be transported to 250 miles with consumption of only one gallon of fuel compared to just 90 miles on the road with the same quantity of fuel. Massive consumption of imported oil not only raises transportation costs but also harms the country's balance of payment. According to estimates, road transportation is one of the major contributors to global warming, accounting for approximately 23% of global carbon dioxide emissions, forcing the countries to adopt and promote sustainable modes of freight and passenger transport to mitigate environmental impacts. As the China-Pakistan Economic Corridor progresses, there will be a greater need for additional trucks to transport construction materials and handle increased trade volume. In this scenario, freight transportation by rail can help minimise the demand for more trucks, alleviate congestion on roads, lower road damage, and promote faster, safer, cost-effective and environment-friendly freight movement. Benefits of freight by rail Improved rail freight reduces congestion and deterioration of roads; minimises traveling time and cost and low transportation costs result in commodity prices being brought down. Improved rail freight operations promote regional connectivity and efficient transportation system. Furthermore, better transportation logistics will not only increase government income but also enhance supply chain management by transporting raw materials and finished goods from one location to another in a speedier way.