ISLAMABAD: The Pakistan Railways (PR) is going to restructure its corporate companies to increase their efficiency and performance, WealthPK reported.
The companies undergoing restructuring are the Pakistan Railways Freight Transport Company (PRFTC), Railway Constructions Pakistan Limited (RAILCOP), and Railway Estate Development and Marketing Company (REDAMCO).
The PRFTC will be renamed Freight Traffic Management Company, RAILCOP Railway Infrastructure Management Company, and REDAMCO Railway Estate Management Company.
According to Minister for Railways Muhammad Azam Khan Swati, the ministry is considering restructuring its land department (Real Estate Development and Management Company) into a new company through amendments to the Railway Acts.
Moreover, each company will have its CEO appointed by the ministry in MP-1 or MP-2 scale, the minister added.
Currently, REDAMCO has two responsibilities, i.e., building up and leasing the railway’s land, while the Railway Estate Management Company is responsible for looking after all the (railway’s) land.
He said the Railway Estate Management Company will have its board of directors and chief executive officer. The CEO will be made independent and no railway officer or minister will be able to interfere in his duties. In contrast, the company’s sole priority will be revenue generation from the lands through lease.
However, according to the WealthPK research, the PR covers three functional units. The Operations Unit, the Manufacturing and Services Unit, and the Welfare and Special Initiative Unit. While the Operations Unit incorporates all the operations of the railways, the Manufacturing and Services Unit supervises the management of concrete sleeper factories, locomotives, and carriage factories. The Welfare and Special Initiative Unit oversees all the railway-owned schools, hospitals, director stores, purchases, monitors, and executes projects.
Lastly, the restructuring and transformation of PR can play a significant role in achieving the highest possible revenues for the railway sector.
INP
