MoU signed to add 105km rail track for Thar Coal

ISLAMABAD: Under a public-private partnership (PPP) worth 170 million euro, Pakistan Railways would add 105km rail track to connect Thar Coal Block II with the rest of the country via the new Chorr station on the Hyderabad-Mirpurkhas rail link.

Railway Constructions Pakistan Limited (RAILCOP), M/s Al Furqan Holdings Private Ltd and BIL Pakistan Pvt Ltd have signed a memorandum of understanding (MoU) to execute the project.

The project would be executed under 100 percent foreign direct investment (FDI) by Al Furqan Group UAE, RAILCOP CEO Syed Najam Saeed said in his address at the MoU signing ceremony.

“The project would provide new rail link from Thar Coal Mines to national railway network for ensuring availability of indigenous Thar lignite fuel throughout the country,” he added. It would give maximum coverage of all Thar Coal Mine Blocks and far-flung population centres in Tharparkar district, while avoiding any existing infrastructural relocations.

Saeed reaffirmed the mission of Minister for Railways Azam Khan Swati, who envisions transforming Pakistan Railways into a profit-making entity by initiating such PPPs. He also thanked Railways Secretary/Chairman, Habib-ur-Rehman Gilani for his continuous support for the project.

RAILCOP CEO reiterated the vision of Prime Minister Imran Khan who stressed on attracting FDI with lucrative incentives and policies to the investors in a competitive business environment.

Divulging the project details, Saeed said that with every passing day, the need of rail link to connect Thar Coal mines with the existing railway system was gaining priority and urgency.

He said all the relevant authorities and stakeholders would prefer to adopt rail as a primary mode of transportation for Thar coal as compared to the highway mode. This new rail link would be helpful in the coal driven energy projects executed under China-Pakistan Economic Corridor (CPEC), he added.

The CEO said the project would also create thousands of jobs, which would boost investment in other associated projects, enhance export of coal, and positively impact macro-economic indicators.