Infrastructure and Transport News

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46 road projects of Rs 400 billion to be completed by 2015

KARACHI (January 07 2007): Federal Minister for Communication, Shamim Siddiqui said, about 46 projects of Rs 400 billion in road sector will be completed by 2015. Speaking at a seminar on "Project Management" in collaboration with 'All Pakistan Contractors Association' and 'Project Management Institute' here on Saturday.

He said the present government has started project worth billion of rupees across the country. Project management experts are, therefore, needed to complete the projects efficiently.

"At present about 22 projects are delayed including the most important Islamabad-Murree project, due to lack of proper project management expertise," he added. Among the mega projects being carried out by the government were Karakoram Highway, M-1, M-4, M-5, M-6, M-7, RCD, N-55 Highway and Gwadar-Hub road, these will be completed by 2015.

To a query about the progress on Thatta road, he said, proper departmental investigation is being carried out as Sindh Government has also complained and involved staff would be punished. He appreciated the organisers for arranging a seminar on topic of project management.

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Pakistan plans rail link on its side of Kashmir

Saturday January 6

The Indian Railways' effort to run trains to the Kashmir valley this year has had an impact across the Line of Control, with Pakistan Railway starting feasibility studies to lay tracks from Rawalpindi to Muzaffarabad, the Capital of Occupied Kashmir (***).
Pakistan Railway is also looking into building a 40-km link between Dina and Mirpur at the southern tip of ***. This shorter link (see map) is likely to be executed first as the Rawalpindi-Muzaffarbad line will be more difficult to build, considering the mountaneous terrain.

Mirpur is presently connected to Pakistan through the Peshawar-Lahore Grand Trunk Road. Pakistan Railway officials said that since Mirpur is fast emerging as the industrial hub of ***, having rail connectivity with the place was economically crucial.

"We are studying three or four different routes between Dina and Mirpur. Our survey began only recently and we will be completing it by April," Mohammed Ashfaq Khattak of the consultancy firm told The Indian Express over phone.

"Apart from deciding on possible routes, the feasibility study is also trying to find out if the project will be economically viable," said Malik Hayat, Rawalpindi's divisional superintendent of railways.

The railways there spent Pakistani Rs 10 lakh last year on the Dina-Mirpur feasibility study, official data show. And sources said international help and expertise may be sought at a later stage.

On the Indian side, preparations to run trains in Kashmir are at an advanced stage, with operations between Udhampur and Katra slated to begin soon. And the more significant target of bringing a train into the Valley is likely to be met sometime by March.

http://in.news.yahoo.com/070105/48/6avq5.html

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Airblue depicts 91.6 percent seat capacity growth in 2006: CEO

KARACHI (January 09 2007): Pakistan's fastest growing airline, Airblue, recorded a growth of 91.6 percent in available seat capacity on its route network from January to December 2006 as compared to the corresponding period last year. There was also an 85.5 percent increase in revenue passenger kilometers flown during the period.

Airblue CEO Shahid Khaqan Abbasi, reviewing the performance of the new generation airline, said it had last month reported a growth in profitability of over Rs 150 percent according to audited accounts for the 2005-06 accounting period, showing exceptional financial performance, and bucking the trend of substantial losses suffered by other Pakistani airlines.

The youngest airline of Pakistan, Airblue, he said, was able to achieve the unprecedented results by doubling its fleet size, floating additional capacity, and carrying revenue passengers at higher yields allowing it to achieve profitability in an environment where high fuel prices and operational costs were causing losses in billions in the Pakistan's aviation sector.

In the calendar year 2006, the Airblue achieved 1,820 million ASKs (available seat kilometers) as against 950 million ASKs in 2005 - showing a growth of 870 million ASKs or a 91.6 percent increase in the available seat capacity for the travelling public.

The revenue passenger kilometers (RPKs) were recorded at 1,410 million in the year 2006 as compared to 760 million in 2005 - showing a growth of 650 million RPKs or an 85.5 percent increase in the utilised seat capacity.

The passenger revenue in the period increased from Rs 2,370 million to over Rs 6,150 million, a 160 percent increase, reflecting substantial yield improvement in the period as the seat factor reduced from 80 to 77.5 percent.

Abbasi said the Airblue was able to achieve the outstanding results by offering a quality product with innovation at affordable prices. The airline has introduced e-tickets in Pakistan, web-based bookings, wireless check-in at the airports, self check-in-kioska, in-flight entertainment on domestic flights, gourmet meals, RRM and many more firsts to redefine flying.

For the year 2007, he said the Airblue has many first to offer to the value-conscious traveller. Additional domestic frequencies and destinations, more Gulf frequencies and destinations, and direct flights from Pakistan to the United Kingdom in early 2007, he added.

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PIA and Ufone announce business strategy alliance

KARACHI (January 09 2007): Pakistan International Airlines and Ufone on Monday signed a partnership agreement to launch a key strategic alliance. The key focus of this alliance will be on providing mutual benefits to existing and potential customer base of the two companies in terms of convenience, comfort and competitive advantage.

The programme will offer Ufone post-paid customers free and immediate enrolment into PIA's Awards + Plus frequent flyer programme, and enable them to earn PIA A+ air miles on use of Ufone services. In addition, members will benefit from other travel-related key benefits including access to business class lounges, excess baggage allowance, and other special promotions.

Currently PIA's domestic operations have registered a growth of 5pc with a market share of 69.5pc during 2006. The said partnership agreement thus focuses comparable benefits to both the companies and their customers. "PIA-Ufone alliance is a significant step in taking PIA's Frequent Flyer Programme to the next level, 'our Frequent Flyers are our most valuable customers'.

PIA team has been engaged in developing a set of unique, innovative and exciting offerings that will exponentially increase the value of programme for them, during calendar year 2007," Tariq Kirmani, Chairman & CEO, Pakistan International Airlines added on the occasion.

The contract was signed between Tariq Kirmani Chairman & CEO, Pakistan International Airlines and Mubashir Naqvi President & CEO Ufone. Senior officials of both the organisations joined strategic partnership signing ceremony.

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Sialkot airport to be operational in first quarter of 2007

SIALKOT (January 09 2007): The mega project of Sialkot International Airport would be operational in first quarter of 2007. The development work on Sialkot International Airport costing more than Rs 2 billion is in top gear.

This mega project had a great significance because it was being totally financed by the private sector and the private sector had not built a project of this magnitude and size so far in the country.

According to airport sources that the Sialkot International Airport was being developed on Build, Own and Operate (BOO) basis and this airport at Sialkot would be a landmark not only in the history of this export-oriented city and hub of cottage industries but also for the country.

The air field light system costing more than Rs 170 million had already been installed at Sialkot International Airport as a result of which Boeing 747 planes would land at the airport.

The country's longest runway measuring 3.6 KM had been completed which would provide landing and take off facilities to Boeing 747 and other aircraft in bad weather like mist. The cargo terminal, apron and eternal roads of the airport had also been completed adding that terminal for domestic passengers were nearing completion.

According to a rough estimate over ten thousand exporters of Sialkot besides a large number of exporters and other passengers of Gujrat, Narowal, Hafizabad, Mandi Bahauddin, Wazirabad, Jehlum and Mirpur (Azad Kashmir) would be benefited with the completion of this mega project.

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Accor to open hotel in Pakistan

KARACHI: Mercure Grand Hotel Karachi Airport, a project of Accor, one of the European leaders in the hotels and tourism and globally incorporate services, is to start operations on April 1, 2007, according to a press statement issued on Monday.

According to the statement the establishment of the hotel in Pakistan will bring an attractive European addition to the Karachi Airport district. The hotel will be located in the Civil Aviation Security Zone, a short five minutes away from the Jinnah International Airport Terminal.

The hotel will begin commercial operations in two phases. Phase I opening on April 1 2007 will consist of 120 rooms and 2 suites, with an all day dining restaurant, coffee shop, swimming pool with pool bar.

http://www.dailytimes.com.pk/default...-1-2007_pg5_11

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Pakistan plans rail link on its side of Kashmir

Saturday January 6

The Indian Railways' effort to run trains to the Kashmir valley this year has had an impact across the Line of Control, with Pakistan Railway starting feasibility studies to lay tracks from Rawalpindi to Muzaffarabad, the Capital of Occupied Kashmir (***).

Mirpur is presently connected to Pakistan through the Peshawar-Lahore Grand Trunk Road. Pakistan Railway officials said that since Mirpur is fast emerging as the industrial hub of ***, having rail connectivity with the place was economically crucial.

It would be better if Pakistan could reduce or in fact eliminate duty and quotas on buses and if not all vehicles than at least ones that have higher people capacity such as 8 seaters and then also using the funds allocated to the rail development to improving roads infrastructure.

Rail is not a rational solution to an area which is mountainous and has not very high population density (which applies to Kashmir) however the only reason it appear to be "cost effective" is because the price of motor transportation is artificially hiked by taxes and quotas.

It is a backward mentality that links motor vehicles with personal consumption rather than an essential investment in a nations transporation link that is holding back development in this sector in Pakistan.

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Ragardless of the density, raillink would be cost effective in terms of time management and heavyduty transportation.
There's also a stretegic aspect to this in times of crisis.

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Mercure Grand Hotel to start operation at Karachi Airport from April

KARACHI (January 10 2007): Mercure Grand Hotel, Karachi, a five-star hotel, will start operation from April 1, 2007 and will bring an attractive European style hotel to the Karachi Airport. The hotel is located in the Civil Aviation Security Zone, a short 5-minute drive from the Jinnah International Airport Terminal.

This was announced by Christophe Landais, Managing Director of Accor, Middle East, while briefing newsmen in the hotel premises on Monday. He said that the hotel would begin commercial operation in two phases. Phase I, opening on April 1 2007, will consist of 120 rooms and 2 suites, with an all-day dining restaurant, coffee shop, swimming pool, with pool bar.

Phase II will open shortly afterwards and will consist of additional 55 superior rooms, all on ground level, with balconies and direct garden access, multiple seminar and convention facilities as well as a complete fitness centre.

He said that guests would experience a feeling of tranquillity, spaciousness and relaxation due to the extensive gardens, recreational amenities, and the general layout of the attractively landscaped property. The renovation is both attractive and contemporary with direct assistance from globally recognised companies such as W&A International. The hotel will offer guests one of a kind leisure experience in Karachi area.

The Mercure Grand Hotel, Karachi Airport, project is a complete and total refurbishment of an existing facility on 10 acres land. The hotel is owned by United International Group (UIG) Private Limited, with Muhammed Akhtar Qureshi as C.E.O. The project has a substantial minority interest from the JS Group, which is the largest financial conglomerate in the country with increasing stake in the hospitality sector.

Upon opening, the Mercure Grand Hotel Karachi Airport will be the only international standard hotel in Northern Karachi and Airport area. Accor Middle East already has an advance team in place and is actively seeking permanent staff for the hotel.

Christophe in his presentation said: "Accor Middle East is delighted to have been chosen to manage this attractive and dynamic project which will provide at least some much sought after relief to the significant hotel room demand situation in Karachi. Accor Middle East is wholly committed to the Pakistani market and we intend to significantly grow our portfolio of hotels in this dynamic country."

Grand Mercure is one of several fast growing Accor brands in the Middle East region along with Sofitel, Novotel, Mercure, and Ibis. The addition of the Mercure Grand Hotel Karachi Airport will create total 5 Grand Mercure hotels in the Middle East zone (comprising the entire Arabian Peninsula, including the Levant countries as well as Iran and Pakistan). The hotel will join a global network of over 700 Mercure hotels in 49 countries and will add to Accor's existing portfolio of 20 hotels in the Middle East.

In addition to Mercure Grand Hotel Karachi Airport, the Sofitel Karachi in Clifton is another Accor hotel, which would shortly begin construction with the opening planned in late 2009. Accor is one of the most significant hotel management companies with regard to expansion and development in the region with over 30 hotels currently under construction in the Middle East area. Within 3 years, Accor Middle East anticipates having approximately 70 hotels under management contract in the Middle East.

With 160,000 associates in nearly 100 countries, Accor is the European leader in hotels and tourism and the global leader in corporate services. To provide private and business clients with superior service, it leverages nearly 40 years of expertise in its two core activities:

Hotels, with Sofitel, Novotel, Mercure, Suitehotel, Ibis, Etap Hotel, Formule 1, Motel 6 and Red Roof Inn brands, represent more than 4,000 hotels and 475,000 rooms in 90 countries, as well as strategically related activities, notably Lenotre Services to corporate clients and public institutions, through Accor Services. Total 21 million people in 35 countries benefit from its broad portfolio, which includes food vouchers, people care, incentives and loyalty programs.

Muhammad Akhtar, CEO of UIG and Muhammad Imran Qureshi, Director, UIG were also present on this occasion.

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$400 million ADB loan for infrastructure projects

ISLAMABAD (January 15 2007): The Asian Development Bank (ADB) has approved $400 million loan to Pakistan for 'Private Participation in Infrastructure and Program-I (PPIP)' aimed at enhancing economic growth through improved infrastructure services.

Its outcome will enhance private sector participation in the country's infrastructure investment and maintenance to reduce the government's fiscal burden and provide better infrastructure services to the population and enterprises, official sources told Business Recorder.

To achieve the desired objectives, subprograms will also be executed, including strengthening the enabling environment for PPI by addressing the remaining policy, legal, regulatory, and institutional constraints and providing technical and financial support for PPI projects.

This is a cluster program that will consist of Subprogram-I and Subprogram-II (the design of which will depend on the outcome of Subprogram-I and the government's emerging priorities).

A technical assistant grant will support implementation of Subprogram- I and capacity-building initiatives required to support the government's PPI initiatives over the medium- and long-term.

By promoting PPI, the operation will help the government to leverage more financial resources into infrastructure by using the private sector as an intermediary. This will help to fill the gap between (i) the infrastructure the government can afford, and (ii) the infrastructure needed for economic development and poverty reduction, as articulated under the government's Medium Term Development Framework (MTDF).

Infrastructure development is a key pillar of the government's MTDF in recognition of its importance for sustaining economic growth and alleviating poverty. The MTDF acknowledges the necessity of PPI in infrastructure and utilities from the point of view of capital mobilisation, but also in terms of ensuring efficiency and effectiveness.

The government is committed to promote PPI by addressing remaining political, legal, regulatory, and institutional constraints to PPI in priority sectors. Further, under the MTDF, the government has approved specific development programs for the power, transport, and water sectors.


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'ADB extending $900 million for mass transit scheme'

KARACHI (January 15 2007): The Asian Development Bank (ADB) is extending financial assistance to the tune of $900 million in the shape of grants for the mass transit programme in the metropolis and the city's water and sewerage projects.

This was stated by Karachi Naib Nazim Nasreen Jalil. She was speaking in the 'Bilmushafa' programme of Radio Pakistan, Karachi, on Sunday. She said that the ADB assistance would be utilised for the mass transit programme in the metropolis, the rail system, roads, overhead bridges, underpasses and for improvement of water supply and sewerage.

The Naib Nazim said that Karachi had been neglected in the past. However, she added that attention was paid to this metropolis when President Pervez Musharraf came to power.

She said that a package of $29 billion was prepared under Tameer-i-Karachi programme and the stakeholders were asked to invest in it.

She pointed out that now development programmes are being carried out in Karachi. Nasreen said that both federal and provincial governments want that Karachi should make progress.

She said that Karachi earns almost 68 percent of the revenue of the country, which speaks of its significance. She highlighted the strategic location and importance of Karachi and said that in its development lay the development of the province and the country.

She said that from the K-3 water scheme of 100 MGD, arrangements were being made to provide 6 MGD to Lyari, and 3 MGD to DHA. Steps are also being taken for supply of water to Baldia Town from this scheme, she added.

The Naib Nazim said that Rs 50 million each have been given to the towns for laying sewerage lines and strengthening the water supply lines.

She said that a lot of attention was being paid towards education, and 38 schools would be upgraded as model schools and they would be of the standard of private schools.

She said Nazim Mustafa Kamal "is doing a lot" for the progress and development of the city. She said that concerted efforts should be made by all so that this city could make a rapid headway.

She also spoke about `Hamara Karachi' programme which is being celebrated to mark the platinum jubilee of the Karachi Metropolitan building.

Nasreen said that a number of programmes were being organised for every segment of the society to foster understanding and brotherhood among various communities who dwell in this metropolis and to develop a sense of belonging for the city.

She also pointed out that there are more than 200 historic buildings and "we want to provide information to the people about this city".

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Private sector, overseas Pakistanis told to run trains

LAHORE (January 17 2007): Pakistan Railways (PR) was encouraging private sector and overseas Pakistanis to invest and run their trains on nominal charges while using the PR tracks. Federal Minister for Railways, Sheikh Rasheed Ahmed stated this while talking to newsmen, here at Nazria-e-Pakistan Foundation on Tuesday.

The minister maintained the PR had also handed over the operation of a Freight Express to as many as 23 parties from the private sector. Pakistan Railways will lay down the track between Spin Boldak and Kandhar as and when it gets green signal from the Afghan government, he added. He said Pakistan Railways was offering its eight plots for construction of hotels.

The minister said that he would inaugurate the Ran Patthani Bridge during the current month. He announced that a Rawalpindi-Karachi bound Mashaheer (Luminaries) Muslim League Train would be launched on March 23, 2007. Although the new train would be slightly expensive but it would offer quite a range of facilities. Catering service of this train would be given to five-star hotels, he added.

Pakistan Railways had successfully launched Pakistan Express and Jinnah Express to facilitate the passengers to a maximum extent, especially those belonging to middle class of the society, he said.

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75 locomotives to be imported

ISLAMABAD (January 17 2007): The government will soon float international tenders for the import of 75 locomotives to overcome the shortage, which is causing huge losses to Pakistan Railways.

"We plan to import 75 new locomotives to meet the growing demand for transportation. Tenders would soon be floated internationally," Railways Minister Sheikh Rashid Ahmed said this while talking to Business Recorder here on Monday.

The Pakistan Railways was facing acute shortage of locomotives, especially due to increasing number of accidents, which had not only created scarcity of wagons but also harmed national exchequer.

About 30 accidents happened during last year, which caused losses of around Rs 40 million to the PR, he told. "We have serious problem regarding shortage of locomotives. We will not only import locomotives but also the production of engines locally is also on the cards," he further said.

Th minister had also met with the Iranian ambassador last week in this connection and expressed his desire to import locomotives from Tehran. On the other hand, the controversy over the supply of faulty locomotives by a Chinese manufacturing company is still on. He told this correspondent that the authorities have worked out a plan to manufacture locomotives at Risalpur locomotive factory. "Initially five locomotives would be built on trial basis at Risalpur," he said, adding that it would also help prove the 'productivity' of the factory.

The productivity of the factory has been questioned time and again and opposition legislators have even voiced for shutting down the unit. He said that funds were one of the major reasons behind poor manufacturing.

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Air Arabia to start Sharjah-Pakistan flights

ABU DHABI (January 18 2007): Air Arabia LLC on Wednesday announced upcoming start of operations between Sharjah and Pakistan. After talks in Abu Dhabi with United Arab Emirates and Pakistan authorities, Air Arabia's project to fly to Pakistan was given go ahead and will not fail to please Pakistani community of UAE.

Sheikh Abdulla Bin Mohamad Al Thani Chairman Air Arabia said "We are pleased with outcome of talks. We had desire to operate to Pakistan for very long time. It is happy to announce that people in UAE and Pakistan will be able to benefit from using low fare travel between two the countries.'

Air Arabia will fly daily to Pakistan, splitting operations between Karachi four days a week, and Peshawar three days a week. Flight schedules will soon be announced and allow eager passengers to book and pay online by simply visiting www.airarabia.com. Pakistan is the 21st country Air Arabia flies to raising its destinations portfolio to 34 destinations in three years of operations.
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PIA seeks Rs 18 billion to offset losses

ISLAMABAD (January 18 2007): Pakistan International Airline (PIA) has approached to the government for seeking a Rs18 billion package for financial restructuring to offset losses it suffered in 2005 and 2006 due to high fuel prices. Its management on Wednesday held a press conference here to give details of its operations and steps taken to improve financial health.

It said PIA suffered loss of Rs 18 billion due to high fuel cost and it needed the government financial support to overcome its financial woes for smooth sailing now onward. Meanwhile, when the management was holding the press conference, PIA Chairman Tariq Kirmani was holding a meeting with Prime Minister Shaukat Aziz to apprise him of PIA financial woes.

The management told the newsmen that PIA operating expenditures rose to Rs 9,188 million in 2006 due to increase in the international fuel prices, claiming that steep increase in fuel prices started from early 2005 and reached an unprecedented level of $78 per barrel in September 2006, taking PIA fuel cost from Rs 18 billion in 2004 to approximately Rs 34 billion in 2006.

The management said it took a number of steps to mitigate the impact of fuel cost to improve operating results of the corporation such as introducing various operational restructuring steps.

Reuters adds: State-run Pakistan International Airlines would start hedging up to 20 percent of its fuel purchases from February to guard against volatile prices, a senior airline official said on Wednesday. "The process will start within a month," Kamran Hasan, airlines's senior vice president, told a news conference.

Hasan said the airline has hired a consultant to help with hedging jet oil as the country lacks expertise. The government last month allowed PIA, which buys over $558 million of jet fuel a year, to hedge its fuel purchases.

Another PIA official said the airline has short-listed four foreign banks, including ABN Amro, Citi Bank, Standard Chartered Bank and Deutsche Bank for the hedging. "Everything is in place and we are waiting for a right time to go for hedging," Arif Majeed, head of PIA's finance department, told Reuters.

PIA's fuel cost went up to 34 billion rupees in 2006 from 18 billion rupees in 2004. It suffered a loss of 6.14 billion rupees in the first six months of last year, while its accumulated losses currently stand at 17.94 billion.

The airline is also paying over two billion rupees annually in financial charges on bank borrowing for fuel purchases. PIA, Pakistan's biggest airline with 42 planes and around 19,000 employees, is slated for privatisation.

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