RETURN9 TO REPORTS DESKRESTRICTED WITHIN R ep o rt N o.T.O.228a ONE WEEK FILE ICU1Y This report was prepared for use within the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPRAISAL OF PAKISTAN RAILWAYS' INITERIM PROGRAM November 18, 1959 Department of Technical Operations CURRENCY EQUIVALENTS 1 Pakistan Rupee - US$ 0.21 1 U.S. Dollar - Pak. Rs. 4,762 Appraisal of Pakistan Railways' Interim Program. Table of Contents Page Summary and Conclusions i I. ITTRODUCTION 2 II. PRESENT POSITION OF THE RAILWAYS 1 Organization and Management 1 Existing Properties 3 A) INorth W'iestern Railway (N R) 3 B) Eastern Bengal Railway (EBR) 3 C) General 4 Present Traffic 5 Utilization of Equipment 5 Earnings and Finance 6 Use of Previous Loans 7 III. THE PROJECT 8 Financial Outline 8 Financing Plan 9 The Ieed for the Interim Program 9 Procurerment and Lzecution 9 Conclusions 10 Annexes: I - Goods and Pa-senger Traffic TI - Utilization of Equipment - NWR III - Utilization of Equipment - EBR IV - Summary Stavement of Earnings - NVJR V - Summary Statement of Earnings - EBR VI - Forecast of Earnings 1960-65 VII - Breakdown Foreign Cost of Interim Program Miap: MIJR and EBR systems APPRAISAL OF PAKISTA>! ,AILD4AYS' INTERII PRCGRAMŽ Summary and Conclusions i. The Pakistan Government wishes to borrow US$ 12.5 million equiva- lent from the Bank to meet part of the foreign exchange cost of the Rail- ways' interim program. of rehabilitation, improvement and expansion, pend- ing the completion of a traffic study and the formulation, based on this study, of' a five-year Railway program as part of Pakistan's proDosed Second Five-Year Plan 1960-65. ii. This report appraises the current position of Pakistan's two State-owned railway systems -- the North uestern Railway (NWR) in West Pakistan and the Eastern Bengal Railway (EBR) in East Pakistan - and of the interim program. iii. The Railways are well nanaged and are fairly efficiently run. Improvemen,t in ooerations is likely with tlhe recent establish.ment of a semi-autonomous Railway Board. The present cumbersome accounting and budgeting procedu-:'es are being revised with the help of outside experts. iv. The maintenance of the Railway property is, or tiae wihole, sat- isfactory. !nxce-pt for ba7ast on the EBR, the permanent way shows little deferred maintenance. The average age of locomotives and wagons is high and the percentage of overage rolling stock, requiring extensive mainten- ance, is still increasing. Replacements -ander the current lFive-Year Plan and the proposed interiml program, combired with improved efficiency result- ing from the renoval of traffic bottlenecks,should lead to a gradual im- provement of the rolling stock position. The Railways are awrare, however, thlat much remains to be done in thle near future to bring the rolling[ stock up to satisfactory standards. v. The interim prograrml as planned by the Railways is necessary to avoid further delays in present traffic and to meet the essential requira- ments of the Railways for moving the expected traffic during the time needed to draw up and secure firancing for their Second Five-Year Program. vi. The Railways' staff is competent to plant and execute the wvorks under the interim program., with the exception of certain special items, for which outside experts will be retained. vii. Althoughi the EBR is operating on a marginal basis, the financia' position of the Railways taken as a whole is sound. It is expected that the local cost of the nrogran wi-ll be adequately, covered by depreciation charges and earnings. viii. The Railways' interim Program is suitable for Bark financin-. A loan of US, 12.5 million equivalent and a term of 15 years,including a three-year period of :?race, appear to be justified. The Governmenrt would be the borrower since tne Railways have no financial autonomy. I. INTRODUCTION 1. The Pakistan Government wishes to borrow US" 12.5 million equivo* alent from the Bank to meet part of the foreign exchange costs of the Rail- ways' interim program of rehabilitation improvement and expansion. In 1952 and 1957 Bank loans in the amounts of USs 27.2 and USS 31 million were made for similar purposes. 2. The proceeds of the loan would be used to procure rolling stock, signalling equipment and track materials for the two State-owmned Railways - North Western Railway (NMR) in rwest Pakistan and Eastern Bengal iailway (EBR) in East Pakistan. 3. This report appraises the present organization, management and operations of the Railways and describes the technical, ecoormic and finan- cial aspects of the interim program. The report is based on the findings of a Bank mission which visited Pakistan during February/llarch 1959 and on information received subsequently from the Pakistan Railways. II. PRiSENT POSITION OF TI-E RAILWAYS Organizatior and Mlanagenent 4. Until recently, the Central Government administered both the NJR and EBR through a Railway Division headed by a Director General of Railways (DGR) in the ianistry of Conmunications. Operating at the same level as the DGR was a Financial Adviser Communications (FAC) who was responsible to the Hinister of Finance and had his own staff dealing with financial and account- ing matters within the Railway organization. 5. In August 1959 a new organization was established introducing a semi-autonomous Railway Board. The Board refers to the Government only on matters of general policy; it has no financial autonomy and all funds are still under control of the Government, the Railway budget remaining part of the Government budget. The Board has wide powrers in matters of management and the previous duality of control by the DGR and the FAC has been elim- inated. Tariffs and rates are set by the Board within broad limits speci- fied by the Government. 6. The Board membership comprises the former DGR (Chairman), the form- er FAC and the Chief 1ngineer of the Railways. They are assisted by a snall techr.ical traffic and operational staff which was previously directly under the DGR. Each Railway has retained i-ts oim General IManager who is in charge of daily operations but refers to the Board on matters such as personnel, procurement, and rates. 7. In each province arn Advisory Board will be established, consisting of six members to be drawn from commerce, industry and government. A senior railway officer will attend the meetings of these 3oards as an observer. Sug- gestions by the Advisory Boards will be transmitted to the Railway Board fur consideration. - 2 - 8. The new organization should contribute to better management and greater efficiency of operations. It appears to rule out a transfer of the Railways to Provincial control, which formerly had been contemplated. 9. The Railways are capable of directing and executing the interim program without outside help, except for a few special problems mentioned later. The executive officers of both systems are, on the whole, competent; the senior officers have usually been promoted from within the service after long experience. Permanent staff are members of the Pakistan Civil Service andp whereas promotion was formerly based principally on seniority in the Railwayst service, the Railway Board now considers capability the governing factor. There is no bar to promotion of meritorious subordinate staff to the officer grades. In fact, 20% of the vacancies in these grades are re- served for the selective promotion of subordinate staff. The normal retire- ment age of the permanent staff is still 55 years. However, the Railway Board now has authority to defer retirement of employees for periods varying from one to five years. For the Board members such extension needs the ap- proval of the President. By these measures the low retirement age now presents less of a problem. 10. The Management recognizes that some of the lwer ranks are over- staffed, particularly in the EBR. This is a burden on the operating budget although the low wages make the effect much less serious than it would be in more industrialized countries with correspondingly higher wage levels. An abrupt release of a large number of employees would create political problems. The ranks involved have therefore been closed to new personnel. 11 A committee was appointed early in 1958 to revise the outmoded rules and regulations still in force governing railway operations. As a result of its recommendations some speed restrictions are being gradually removed. Other factors affecting operational efficiency are being reviewed by committees appointed for the purpose. To speed up the work a request has been made to the German railways for services of experts who will act as ad- visers. 12. Another shortcoming is the cumbersome accounting and budgeting pro- cedure, which rejires overhauling with a view to making the accounts of value to the Managementfcontrolling the current operations of the Railways. Under the recent reorganization the accounting department was put under the Railway Board but the Auditor General of the Government remained responsible for all accounting records and procedures. As a result of the negotiations for the previous loan,assistance of the accounting firm Price Waterhouse & Co., (London), was obtained and in the light of their recommendations a program of improvements will be drawn up. Accounting experts will be periodically consulted during its execution. 13. The Board is empowered to make all purchases for the Railwaysp in- cluding the general stores items formerly bought through the Government's central purchasing agency headed by the Director General Supply and Develop- ment. It is expected that the problems of overstocking or shortage of es- sential goods and undue delays in obtaining supplies, frequent under the previous system, will be gradually eliminated. - 3 - 14. Management is controlling a number of activities foreign to direct railway administration, such as a fire brick factory, a small steel and roll- ing mill and, on the EBR, inland water transport and the Port of Chittagong. Products of the factory and the mill are used exclusively in the Railways. There seems to be no good reason for EBR to continue its water transportation services as private enterprise is fully capable of taking over. The Port of Chittagong will be transferred from EBR to the recently established Chittagong Port Commissioners within the next few months. 15. Summarizing, the Railways are functioning in a fairly efficient manner and should improve under the new organization. Existing Properties A. North Western Railway 16. This system consists of 5,334 route miles (7,470 track miles) and serves mainly the Eastern, most developed part of West Pakistan (see map). Of the three different gauges, the Broad Gauge (5'6") is by far the most important with 4,635 route miles of which 635 miles are double track. Only 699 route miles are Meter and Narrowr Gauge (266"), all single track. 17. The mainline track for the greater part has 90-lb. rail, branch- lines having 75-lb. rail. Rail on some of the branck-lines will be changed to 90-lb. and bridges will be strengthened to cater for the increasing traf- fic (and train loads) which is developing in certain areas due to industriali- zation. Wooden, steel and cast iron sleepers are used extensively and a con- crete sleeper factory has been put into operation producing 50,000 sleepers yearly. The track is well aligned and in good condition; both ballasting and sleepers are satisfactory. i8. Rolling stock as off March 31, 1959, includes 706 steam locomotives partly coal and partly oil-fired; 145 diesel locomotives; 25,800 goods wagons and 2,820 coaching vehicles. By March 31, 1963, when all rolling stock pro- vided for in the interim program will have become available for service, the following stock will be over 45 years of age: Steam locomotives 44% Coaching vehicles : 21% Goods wagons : 24% These figures indicate that there uyill be need for further rehabilitation, especially for locomotives (dieselization) in the near future. B. Ea torn Bengal Railway 19. This network consists of 1,713 route-miles (2,554 track-miles) and serves mainly the northern part of the Province (see map). The inland water- way transport system serves the rest of the territory, sometimes in competi- tion with the railway, and carries about two-thirds of all traffic. The rail- way system, like the ITTR, consists of three sections with different gauges. - 4 - Here the M1eter Gauge line with 1,145 route-miles is the most important one, followed by the Broad Gauge (5t6") section of 548 route-miles, and some 20 miles of 2'6" gauge. 20. The meter gauge railway network is cut in two parts by the Brah- maputra river and is connected by cumbersome ferry services. This slows dowm transportation and raises cost. After Partition the system had to be reorientated from its previous port, calcutta, to the port of Chittagong on the other side of the Brahmaputra river system. 21. The track nainly has 60-lb. rail which is in satisfactory ccndi- tion. The ballast bed is generally too thin, and in some parts absent al- together, due to the lack of stone in East Pakistan. Building of a rope- way between the railhead at Chhatak and Bholanganj, to exploit shingle and boulder deposits in that region for ballasting, is included in the Railways' interim program. Meanwhile on most sections the sub-grade of silt seems to provide a sufficiently resistent support for the rather light axle loads of the traffic. The condition of the sleepers has been improved; the track rehabilitation program including rail renewals of 130 miles and sleeper re- newals of 564 r,iles has been completed. Taking into account the ballast problem, the alignment and condition of the track is remarkably good. 22. Rolling stock on M1arch 31, 1959, irncluded 385 steamn locomotives, partly oil and partly coal-fired; 51 diesel locomotives; 17,750 goods wagons in terms of four-wheelers and 1,350 coaching vehicles. The follow- ing stock will be over 45 years of age by Harch 31, 1963: Steam locomotives : 41% Coaching vehicles : 37.5% Goods wagons : 29% 23. Here also there appears to be need fLor further rehabilitation in the near future. There has been a considerable reductio,:; in the fleet of goods wagons by the scrapping of those beyond repair, and replacements have not been sufficient to maintain numbers at tne 1957 level. The EBR also owns and operates a flotilla of eight tugoats and 32 barges for inland water transport services. C. General 2L. Both networks are at various places interconnected with the Indian Railways and wagons are interchanged on a per diem basis. WThile traffic from the Indian State of Assam to Calcutta can be routed -through Indian terri- tory, a considerable amount follows thle shorter way via East Pakistan. A bridge is now bein- built across the 3rahmaputra river in Assam to replace the existing ferry service and it will increase the line capacity through Indian territory for transportation of oil pound in Assam. However traffic via the EB?. route is not expected to decrease. 25. Buildings, stations and bridges are, on the whole, adequate and well maintained. The layout of workshops for the repair of rolling stock, includ- ing steam locomotives, is being improved; in the main NWR workshop at - 5 - JMbghalpura a production line has been established for manufacturing goods wagons from raw materials at the rate of 1,000 per year. Passenger carriages are assembled in the same shop. The machinery on hand and on order is adequate for maintenance of the present rolling stock, and for the additions provided for in the interim program. 26. The diesel maintenance and repair shop at Karachi is being extended to cater for light and medium repairs; the extension is expected to be com- pleted by June 1960. A second shop is to be erected in Rawalpindi to take care of general overhaul. In East Pakistan a diesel repair shop of ample capacity has been constructed in Pahartali near Chittagong. The shops will provide adequate capacity for the existing fleet of diesel locomotives and for those to be procured under the interim program. 27. The percentage of equipment under repair is not high, considering the rather large amount of over-age rolling stock, and should decrease after the new workshop machinery has been put into operation. Maintenance is car- ried out on a regular time schedule which tends to keep down the number of vehicles out of service. Present Traffic 28. Both goods and passengers in West Pakistan are mainly transported by rail. In 1958/59, 3,557 million ton-miles of goods and 5,147 million passenger-miles were achieved, (Annex I). There has been a steady increase in both categories since 1954/55, the beginning of the First Five-Year Plan period. The most important goods are: building materials, agricultural prod- ucts (mainly wheat, rice and cotton) and coal. What little there is of road competition is not expected to increase considerably, due to Pakistan's liznited road system and lack of foreign currency to acquire trucks and fuel. 29. The Railways' position in East Pakistan is very dissimilar. In- land waterray transport is the main carrier of goods and passengers, and only one-third is moved by the Railways. EBR traffic in 1958/59 amounted to 817 million ton-miles of goods and 1,600 million passenger-miles. Since 1954/55 there is a noticeable increase in both goods and passenger traffic. (Annex I). The bulk of the goods transported comprises coal and agricultural products (jute and rice). There are few roads and consequently there is little road competition. ftilization and Equipment 30. Annemes II and III show statistics of serviceability and utiliza- tion of equipment for 1NJR and EBR respectively. Taking into account the high percentage of overage stock, the serviceability is good and the utilization is satisfactory. 31. Average speed of goods trains on both systems is low, Drincipally because of traffic bottle necks but also because of various speed restric- tions on several sections, for which in many cases proposals for alleviation - 6 - are under consideration. Wagon miles per day on EBR are low partly due to the necessity of ferrying wagons across the Brahmaputra river. Earnings and Finance 32. The recent Railway reorganization has not brought about substantial changes in financial procedures. All funds are still under the control of the Government which makes annual appropriations to cover capital and operat- ing expenditure. All cash collected goes directly to the Central Government and expenses are paid by checks drawn against the Central Government. In 1959 the Railways' fiscal year was changed to end at June 30 instead cf March 31, in accordance with the change in the fiscal year of the Government. 33. Since Partition the Pakistan Railways as a whole have been operat- ing at a profit. However, the profit was generally produced only by NWR, and was partly offset by losses incurred by EBR which operates under less favor- able conditions. Only during recent years has EER been making small profits. 34. The Railways' accounts show that the net earnings of ER amounted to Rs, 109.9 million in the year ending March 31, 1958 und have been main- tained at approximately the same level since 1955 (Annex IV). Its operating ratio for 1958 was 66%. Net earnings of EBR amounted to Rs. 8.3 million in 1958 but losses were incurred in 1955 and 1957 (Annex V). EBR's operating ratio for 1958 was 85%. Final reports for fiscal 1959 (15 months) are not yet available but the revised budget estimates, which are generally conserva- tive, indicate net earnings of Rs. 126.3 million for VWR and of Rs. 1.2 mil- lion for EBER. 35. According to a forecast submitted by the Railways (Annex VI), gross earnings of each railway system would increase by approximately 10% for the period June 1960-1965. Net earnings of NIR would increase at almost the same rate, up to Rs. 136 million per year. However, EBR would show losses, averag- ing Rs. 3.6 million per year. The forecast seems reasonable in the light of past performance but my have to be revised after completion of the traffic study which is noW being undertaken. 36. During the past five years, goods revenue averaged 53% of the gross revenue of MIR and almost 50% of the gross revenue of EBR. The Railways have not yet been able to assess the relative costs of goods versus passenger traf- fic and relate them to tariffs and rates, which have not been changed sub- stantially during recent years. 37. At the time of Partition in 1947 it was not possible to determine accurately the value of the assets acquired. The net value of all assets in- cluding land was assessed at Rs. 1,150 million after deducting Rs. 180 million on account of depreciation and Rs. 170 million as an agreed reduction in the purchase price of a number of strategic lines. Government investment, called "Capital at Charge" was determined at this amount. A physical inventory of the assets has not yet been taken; it may be expected that their true value is larger than the indicated book value. -7- 38. tCapital at Charge"t at the time of Partition and on June 30, 1959 for each system is given below: Port NMJR EBR Chittagong Total - - - - ARs. 001-,000 - - - - - August 15, 1947 821.4 321.2 7.4 1,150.0 June 30, 1959 997.7 502.5 125.9 1,626.1 Investments in EBR have been relatively larger because in 1947 Pakistan took over a disrupted system in Eastern Bengal and had to make many new additions, whereas in NWR expenditure was more for renewals and replacements, especial- ly of rolling stock. 39. Interest on capit4 has been charged against the revenue of each system at 3j% through 1953 and at 3/ thereafter. It does not appear that the rate of interest is related to the cost of funds to the Government. 40. S-nce 1957 depreciation has been corputed on an overall basis of one-thirtieth of "Capital at Charge" as compared to one-sixtieth in earlier years. The Railways believe that the previous rate was too low because it did not cover replacement costs. Ad-hoc amounts had already been added to the depreciation reserve in each of the years 1952 through 1957. ho interest is payable to the Government on expenditure for replacements and renewals charged to the depreciation reserve. 41. The depreciation policy of the Pakistan RailwrJayrs is not in accord- ance with usual business principles. IHowever, by increasing the rate from one-sixtieth to one-thirtieth net operating revenue has been decreased, which resulted in^ more conservative financial data. Depreciation charges in 1958 amounted to 8.5% of gross earnings which in comparison with other railways does not appear to be unreasonable. Use of Previous Lcans 42. In 1952 the Bank lent '? 27.2 million to the Pakistan Government for the rehabilitation and improvement of the Railways. The funds were spent mainly for the procurement of diesel locomotives, carriages and wagons. The introduction of diesel traction has resulted in increased operating ef- ficiency and in considerable savings in fuel costs. Because of delays ex- perienced in placing the order for the carriages the loan has not yet been ftJJy disbursed. Some w 1.0 million remains to be spent, mainly M'.n*y held until the end of the guarantee period for the carriages and also funds allocated for spare parts. 43. A second loan of $ 31.0 millior was made in 1957 of which about $ 11.0 million is still undisbursed. The funds are being spent mainly for the procurement of wagons, track materials and the replacement of the Lans- downe Bridge. iviost equipment and materials have been delivered; track re- habilitation is making good progress. After rejection of earlier tenders the contract for the new Lansdowne Bridge will be awarded shortly. - 8 - III. THE PROJECT Financial Outline 44. The project consists of the Railways' interim program, as presented to the Bank, and involves the expenditure of the equivalent of almost Rs. 340 million for the rehabilitation, improvement and expansion of its railway faci- lities, pending the completion of a traffic study and the formulption, on the basis of the study, of a five-yeer program as part of the Governmentts pro- posed Second Five-Year Plan (1960-1965). The placing of orders will be com- pleted by June 30, 1961; expenditure will be divided equally ovter the years ending June 30, 1961 and 1962. The interim program is suirmarized below: Foreign Local Total - - Rs. 000,000 - - Rolling stock and floating 120˘0 31.5 141.5 equipment Track 33.5 19.2 52.7 Bridges l0,8 9.2 20.0 Other Engineering Works* 31.1 73.5 104.6 New Construction 5.1 14;7 19.8 Total 190.5 148.1 338.6 ($ 000,00) 40.0 _ 31.1 71.1 * Including signalling and Rs. 30.5 million for works not involving foreign expenditure. 45. About 22% of the proposed expenditure is for expansion and improve- ments and charged to capital; the remainder is for replacements and renewals and charged to depreciation. A breakdown of the interim program is contain- ed in Annex VII. 46. Of this interim program the Pakistan Government has requested the Bank to help finance the following items: Required Foreign Currency Item in US$ 000 equivalent_ Goods wagons 6,719 Tags and motor boats 661 Signalling equipment 2,540 Sleepers 2,392 Unallocated 188 Total 12.500 -9- Financing Plan 47. The reouirements in foreign currency, amounting to the equivalent of $ 40.0 million, will be provided from the proposed Bank loan ($ 12.5 million) and from a loan granted by the Development Loan Fund ($ 22.0 mil- lion), The balance of $ 5.5 million may be financed by German credits or will othenrise be provided from the Government's owm resources. 48. The local currency requirements amount to Rs. 148.1 million. Dur- ing the two years ending June 30, 1962, the Railways expect to generate about Rs. 330 million in earnings and depreciation charges. This amouit more than covers the local currency requirements of the project and will also be suf- ficient to provide an amrount of Rs. 22e3 million, required in local currency for commitments made under the previous loan, and to be spent after June 30, 1960. The need for the Interim Program 49. The First Five-Year Plan of the Pakistan Government will end June 30, 1960 and is to be followed by a Second Five-Year Plan, to be finalized by the end of 1960. The Railways have appointed a committee to assess future rail- way traffic and on the basis of this study they will formulate their program as part of the Second Five-Year Plan. Arrangements for the financing of this railway program are unlikely to be completed before June 1961. 50. In the meantime traffic is expected to follow the trend of the last several years and unless measures are taken to keep pace, the present delays in traffic movement will get worse. The interim program is therefore neces- sary to meet the essential requirements of the Railways in moving the expect- ed traffic during the time needed to draw up and securb financing for their Second Five-Year Program. 51. The Railways, both the NWR and EBR, are essential to the economic life of the country. No other form of transportation could substitute for them at anywhere near the same operational cost. Procurement and Execution 52. The goods to be financed by the Bank will be obtained through in- ternational competitive bidding, this being the Railways' general policy for all its imports. 53. In general the Railways' staff is competent to plan and e7ecute the works under the program. For the installation and operetion of modern signal- ling equipment and of the proposed ropeway between Chhatak and Bholaganj outside expert help will be retained. - 10 - Conclusions 54. The Railways are well managed and are functioning fairly efficient. ly.r Their financial position is sound. They are essential to the economic life of the country. 55. The Railways' interim program is suitable for Bank financing. A loan of US$l2.5 million equivalent and a term of fifteen years, including a three year period of grace, appear to be justified. The Government would be the borrower since the Railways have no financial autonomy, ANNEX I GOODS AND PASSENGER TRAFFIC North Western Railway 2 G o o d s P a s s e n g e r s Million Million Million Million Tons Ton-Miles Passengers Passenger-Miles Year 1951-52 8.7 2,523.1 79.1 4,3bO.3 1952-53 9.0 2,756.3 79.7 4,314.0 1953-54 10.1 3,057.9 80.8 4i137.0 1954-55 9.9 2,826.0 85.5 4,366.2 1955-56 10.7 2,874.0 87.2 4,4O8.7 1956-57 10.9 3,172.9 95.5 4,800.8 1957-58 11.9 3,362.h 103.2 5,106.9 1958-59 12.6 3,557.4 106.3 5,147.3 Eastern Bengal Railway 1951-52 3.6 544.7 50.7 1,807.5 1952-53 3.7 558.3 47.O 1,609.1 1953-54 3.3 508.7 42,2 1,319.4 1954-55 3.3 472.3 45.7 1,373.3 1955-56 3.9 573.7 51.3 1)479.0 1956-57 4.6 708.9 56.8 1,615.1 1957-58 4.5 723.1 58.8 1,611.3 1958-59 5.1 817.3 61.5 1,600.9 2/ Figures for broad and meter gauge only. AINEX II UTILIZATION OF EQUIPMENT North Wdestern Hailway 1955/56 1956/57 1957/58 1958/59 Gcods Stock 1. Niumber of vehicles (units) 24,934 2h,303 24,538 25,798 2. Percentage of unserviceable wagons daily (in terms of 4-wheelers) to average total number on line 5.9 6.6 7.2 6,7 3. Wagon miles per wagon day (4-wheelers) all wagons 36.3 40.0 41.6 42.6 Coaching Stock 1. Passenger carriages (units) 1,652 1,685) 2,6 2,82 Other coaching vehicles 1,01 1,027) 2. Percentage under or awaiting re- pairs daily (in units) and average total number on line: - Passenger carriages 15.9 17.5 16.5 16.2 - Other coaching vehicles 7.3 11.0 8.8 12.5 3. Vehicle miles per vehicle day 155 n.a. 160 166 Locomotive Stock 1. Locomotives owned: a) Diesel 92 98 120 145 b) Steam 733 721 709 706 c) Total 825 819 829 851 2. Percentage under or awaiting re- pairs daily to total number on line: a) Diesel 10.5 10.2) 14.47 17.1 b) Steam 12.1 12.8) 3. Engine miles per day per engine on line: - Diesel and steam 93 99 101 104 4. Engine miles per day per engine in use: - Diesel and steam 125 126 131 133 5. Percentage of work done by diesel locomotives to total work done: a) Locomotives (percent of total) 9.9 12.8 n.a. 17.0 b) Train miles 20.0 31.7 n.a. 35.0 c) Gross ton-miles 33.9 1.5 n.a. 14.0 AiNEX II UTILIZATION OF EQUIPMENT Eastern Bengal Railway 1955/56 1956/57 157/58 1958/59 B.G. M.G. B.G. M,G. B.G. H.G. B.G. M.G. Goods Stock 1 .lumber of vehicles (expressed in terms of 4-wheelers) 3,880 15;291 39861 15,539 3,626 14,130 3,626 13,996 2. Percentage of wagons under or awaiting repairs daily to average total on line 3.6 3.6 2.6 3.1 3.2 1.6 2,9 2.3 3. gagon miles per wagon day (4-wheelers) 21 14 20 16 20 16 25 17 Coaching Stock 1. Number of passenger carriages and other coaches 489 1,024 491 1,024 491 1059 481 1,024 2. Percentage under or awaiting repairs daily to average total on lines -Passenger carriages 12.7 14.2 15.1 12.3 14.1 13.5 15.7 14.7 -Other coachingvehicles 11.5 13.2 n.a. n.a. 12.3 10.6 12.8 14.4 3. 'Jehicle miles per vehicle day 98 104 104 108 108 113 113 116 Locomotive Stock 1. Number of locomotives l on line 133 274- 133 295. 133 303.Zi 133 303' 2. Percentage under or awaiting re-pairs daily to total number on line 18.2 15.2 15.3 15.7 13.7 14.2 15.3 15.6 3. Engine miles per engine day: a)on line)total 64 81 66 n.a. 71 92 77 94 b)in use )steam and 113 119 113 n.a. 117 130 116 129 )diesel c)on line steam - 68 - n.a. - 79 - 81 d)in use steam - 103 - n.a. - 118 - 116 e)on line diesel - 210 - n.a. - 158 - 158 f)in use diesel - 241 - n.a. - 175 - 181 i/ Includes 25 diesel locomotives LI Includes 51 diesel locomotives Annex iV NORTH WESTERN RAILWVAY Summary Statement of Earnings (in millions of Rupees) Year ended March 31 I Tear ended June 3o0/ f/ 1956 1957 1958 f t 195 1960 % i Operating Revenue Passenger 131.3 37 136.4 38 148.5 38 158.8 38 204.2 37 171.5 37 Goods 189.5 54 197.1 54 204.9 53 221.2 53 ' 289.2 52 242.4 53 Other 3y2.2 9 28.2 8 35.8 9 38.9 9 ' 58.6 11 43.5 10 Total 353.0 100 36i.7 100 389!2 100 418.9 100 : 552.0 100 457.4 100 Operating Expenditure Administration 28.2 8 31.3 9 32.8 8 32.5 8 ' 45.7 8 37.7 8 Repairs and maintenance 70,,0 20 71.1 20 73.5 19 81.6 19 t 120.6 22 97.5 21 Operating staff 34.9 10 36.3 10 37.2 9 38.1 9 t 56.1 10 45.2 10 NMel (operating) 46.7 13 54.1 15 61.7 16 70.9 17 1 88.8 16 71.7 16 Other Operating Costs 6.o 2 9.1 2 6.2 2 9.2 2 t 14.4 3 10.8 2 Miscellaneou. Expenses 10.1 2 11.2 3 10.8 3 11.4 3 1 13.9 2 13.4 3 Depreciation 30.7 9 25.2 7 44.0 11 32.2 8 ' 42.7 8 34.3 8 226.6 64 238.3 66 266.2 68 275.9 66 f 382.2 69 310.6 68 Net Operating Revenue 126.4 36 123.4 34 123.0 32 143.0 34 ' 169.8 31 146.8 32 Non-Opergting Charges I Int. on Govt.capital 27.1 8 27.9 8 28,8 7 30.2 7 ' 38.6 7 32.0 7 Other 3.7 1 1.8 - 2.9 1 209 1 4.9 1 3,2 1 30.8 9 29.7 8 31.7 8 33.1 8 , 43.5 8 35.2 8 ht larnings 95.6 27 93.7 _ 26 91.3 24 109.9 2b ' a96.32 23 111.6 24 I/ Expressed as percentage of total operating revenue. g./ Rerised budget estimates for fifteen months' period ended June 30, 1959 and bu4get estimates for twelve months' period ending June 30, 1960. EASTEIJf BERGAL RAILWAY Annex V Summary Statement of Earnings (in millions of Rupees) Year ended. March _1 I Year ended June 309/ 1955 f~i- 1956 M957 1958 _ 1959 ; 1960 _ Operating Revenue Passenger 43.8 39 50.0 39 54.8 38 55.2 36 1 68.6 36 60.6 37 Goods 51.7 47 t3.7 50 71.9 49 76.4 50 1 101.3 52 81.6 51 Other 15.7 14 144,7 11 19.1 13 21.5 14 1 24.1 12 19.4 12 Total 111.2 100 128.4 100 145.8 100 153.1 100 t 194.0 100 161.6 100 Operating Sxpenditure Administration 18.4 17 18.5 14 20.0 14 18.9 12 t 27.2 14 22.7 14 Repairs and maintenance 34.3 31 38.1 30 39.4 27 41.7 27 ' 50.1 26 42.8 27 Operating staff 20.8 19 20.9 16 21.3 15 21.0 14 1 30.5 16 23.9 15 auel (operating) 13.8 12 10.7 8 17.7 12 18.6 12 1 25.4 13 19.3 12 Other operating costs 5.0 4 4.3 4 7.0 5 4.4 3 ' 6.8 4 5.0 3 Miscellaneous exoenses 7.0 6 6.8 6 6.8 4 8.4 6 1 10.8 5 12.8 8 Bepreciation 16.2 15 13.3 10 22.4 15 16.3 11 1 20.9 11 17.2 11 115.5 104 112.6 88 134.6 92 129.3 85 t 171.7 89 143.7 89 Net Operating Revenue or (Loss)( 4,3) ( 4) 15.8 12 11.2 8 23.8 15 t 22.3 11 17.9 11 Non-operating Charges Int. on Govt.Capital 14.3 13 14.6 11 14.9 10 15.2 10 ' 18.,9 10 15.7 10 Other 0o6 - 0.3 - 0.5 1 0°3 - t 2.2 1 0.3 - 14.9 13 14.9 11 15.4 11 15.5 10 t 21.1 11 16.0 10 Net Earnings or (Los) ( 1902) (17) 0.9 1 (4.2) (3) 8.3 5 1.2 - 1.9 1 1/ Expressed as percentage of total operating revenue. t/ Revised budget estimates for fifteen months' period ended June 30, 1959 and budget estimates for twelve monthsf periot ending June 30, 1960. Annex VI PAMISTAN RAILWAYS Forecast of larning s 1960-65 (in millions of Rupees) Year ending June 30 M9I1 1962 1963 1964 1965 NOR.TH lEST&Ib\T RAIWAY Total Operating Revenue 47700 h87.2 497.4 510.2 522.6 Operating ixpenditure 281.8 287.4 294.6 299.8 305.0 Deprecietion 35.0 35.6 37.5 39.5 4105 Total Operating 4xpenditure 316,8 323.0 332.1 339.3 346.5 Net Operating Revenue 160.2 164.2 165.3 170.9 176.1 Non-operating Charges 35.4 36.6 37.9 39.2 40.5 Net Larnings 124.8 127.6 127-4 131.7 135.6 EASTERIT BE'GAL RAILWAY Total Operating Revenue 160,8 164.5 168.3 173.5 178.3 Operating Expenditure 132.4 13L.0 13644 136.9 138.7 Depreciation 17X5 17.8 18.8 19.8 20.8 Total Operating laponditure 149.9 151.8 155.2 156.7 159.5 Net Operating Revenue 10.9 12.7 13.1 16.8 18.8 Non-operating Charges 16.8 17.4 18.0 18.7 19.3 Net Earnings or (Loss) (5.9) 4 4.7) ( 4.9) ( 1.9) ( 0.5) Annex V:T B?JAKDOXIR OF T1H FGOEIGN COST OF PAKISTAN RAIL1qThiY' I!ITIJRI ~RQQhA* (us.. 000) Rolling stock and floating eqaipment: 5 diesel locomotives 9,187 10 locomotive boilers 164 140 passenger carriages 5,201 75 other coaching vehicles 506 21400 wagonm* 6,719 4 railcars and 8 trailers 672 2 tugs and 2 motorboats* 661 23,110 Track: Rails and fit,tings 4,646 Sleepers* 2, 3?2 7,038 Bridges: Structural steel 2,269 Otther Engineering IJorks: Signalling* 2, 540 Other wiorks for increase of line capacity 3,235 Diesel shop and equipment 420 Other works 339 6,534 NTew Construction: Ropeway 420 Other works 651 1,071 Total 40,022 * Items to be financed from the proposed Bank loan. NORTHWESTERN AND EASTERN BENGAL RAILWAY SYSTEMS-PAKISTAN -- RAILWAYS I BROAD GAUGE (56S) DOUBLE TRACK JAMMU 8 KASHMIR - BROAD GAUGE (5-6 ) SINGLE TRACK METRE GAUGE -SINGLE TRACK N~~~~~~~~~~~~~~~~~~~~~~PARAWAR GALE { MTTGACA- / N-R-~~~~~~~~~~~~~WRA -- IV IT- O -0 100 150 200 MILES NORTHWESTERN RAILWAY WEST PAKISTAN EASTERN BENGAL RAILWAY EAST PAKISTAN . ' PUNJAB STATES t /t _t . s _ ' > / 5 < D 98 ~ ~ ~ ~ ~ ~~~~~~~~~#~o~t -ERA.A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~AGU K A R\g \) CALCUTTA | ) C A ___________----______________