HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY RESEARCH 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 its efficient 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 Frame The Research will be completed in one month starting from startingfrom 22-12-2009 to 29-01-2010.. Preparation of research proposal 7 days Data collection 7 days Data analysis 5 days Conclusion 2 days Final 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 Developments New Lines In 2006 it was announced that a railway line between Gwadar and Quetta will be builtand the Bostan -Zhob narrowgauge railway line will be converted into broad gauge in2007 at a cost of US$1.25 billion. Plans to increase tra in speeds, install more lengths of double track and to convert the country's railways to standard gauge are also currentlyunder work. Electrification I 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 electrificatio n of the entire Pakistan Railways, estimated at a worth of about $2 billion over the next five years (from 2005 to 2010). High-Speed Rail In 2008, Pakistan Railways announced a plan of the construction of a $1 billion high -speed railway line between Punjab and Sindh. International Lines China Establishing direct rail connections with China were announced by Pervez Musharraf in2006. Turkey BUSINESS RESEARCH REPROT15 Iran In spring 2009, a rail link between Quetta and Zahedan was constructed and allowedPakistan Railways direct access to Europe and the Middle East. The gauge changing station 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 Railways Pakistan 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 esse ntial assets and consequently the quality of the service. It indicates existence of chronic problems that have perverted the organizations perfo rmance. 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 Direction In 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 Depletion Pakistan Railways have the responsibility of developing and maintaining their infrastructure. 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 government and e nj o ys p a r t i a l au to no m y i n i t s d a y t o d a y o p e r a t io n s wi t hi n th e o ve r a l l po l i c yfr a me wo r k a n d p ub l i c s e r vi c e o b li ga t i on s i mp o s e d on it b y t h e Go ve r n me n t . I t c a n therefore be classified as a quasi-commercial organization being managed with social c on s i d e r a t ion s . To da t e , P a ki s t a n R a il wa ys h a v e gi ve n p r io r i t y, un d e r s u cc e s s i ve Government directives, to passenger movement over freight on government approved r a t e s . P a ki s t an R a i l wa ys a r e t h e o n l y l on g r ou t e p a s s e n ge r c a r r i e r fo r 98 % o f t h e 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 organizationsability to fu nction as a commercially oriented and profit making entity. In most countries passenger business is a non-profit making venture. DETERMINENTS OF SERVICES IN RAILWAYS F o l lo wi n g a r e th e S e r vi c e s D e t e r mi n a n t s wh i c h sh o ws t h e e ffe c t i ve n e s s o f r a i l wa y services. We can say that these are the goals for Pakistan railway if these are achieved Pakistan 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 Pakistan Railway 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.

Th e r a i l wa y s e r vi c e ma n a g e m e n t mu s t b e a bl e a nd s kil l e d en ou gh to so l ve customers 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 doesnt happen. Passengers face a lot of problems because they dont find the willing and cooperative staff to help themout. The employees in customer services canter at railways must also have enough knowledge 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 p e r s o n a l a t t e nt i on to a l l th e p a s s e n ge r s h a vi n g a n y ki nd o f p r ob l e m i n th e i r journeys. The services staff must show a caring and touchy fashion in their appearance to th e c u s tome r s s o t h a t th e c u s t o me r s fe e l fr e e t o c o n su l t t h e m i n c a s e o f a n y 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 customers 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 journ ey 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 doesnt seem that thestaff is really want to help the passengers because they dont 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 t h e cu s t ome r s t o fe e l fr e e t o t a l k t o th e m a n d e xp l a in t h e i r is s u e s e a s i l y. Th e d r e s s e s o f t h e s e r vi c e a t t e nd a nt s s hou l d b e p r e s s e d a nd t id y wh i c h gi ve s 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 to achieve all these services for their value customers in order to maintain their services andgroom themselves more and more

Recommendations 1. The Overarching Issue: A National Transport Policy An o ve r a r c h i n g d e fi c i t in R a i l wa ys p l a n n i n g i n P a kis t a n h a s b e e n t h e ab s e n c e o f 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 and unnecessary political interference in decision making will impede the countrys progress.Indias 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 three decades. Turnaround of the organisation will be a challenge. The deficit itself has causedd e m o r a l i s a t io n a nd r e s i gn a t ion t o t h e st a t e o f a ffa i r s wh i c h i n t ur n h a s e n su r e d t h e continuity of losses and depletion of assets.The turnaround will need to be undertaken in a number of phases. Each phase will needto id e n ti f y a s e p a r a t e o b j e c t i ve . At t h i s p oi nt th e p r i ma r y o b j e c t i ve s wi l l h a ve t o b e 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 the e nd r e su l t s . Th e r e a re ma n y e x a mp l e s i n t h e c ou nt r y wh e r e c o r p o r a ti s a t i on h a s no t insulated organisations from political interference, corruption and inefficiency. Secondly, most functions in Railways operations are specialised and dependence on thecu r r e n t hu ma n r e s o u r c e r e ma i n s i n e vi t a b l e an d s o do e s th e o wn e r s h i p o f t h e r e fo r m p r o c e s s b y t h e c u r r en t s e t o f e mp l o ye e s . I n ou r i n t e r vi e ws w e fo u n d t h a t th e wo r d 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 transformedfr o m l o w mo r a l e a n d i nd i ffe r e n c e t o o wn e r s h i p o f th e p ro c e s s o f s a vi n g P a ki s t a n Railways. 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 d e ve l o p me n t , wi l l b e t r a i n in g to imp r o ve ma n a ge me n t o r i e n ta t i o n, i mp r o ve d c a r e e r 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 wasa mb i gu i t y a mo n g t h e o ffi c i a l s o f P a ki s t a n R a i l wa ys a b ou t an y vi s i o n fo r P a kis t a n Railways.