PR No. 257 Islamabad

Pakistan Railways and Ministry of Petroleum signed Fuel Transportation Agreement (FTA) on Wednesday, which would increase fuel transportation activity of the railways. The agreement was signed by Syed Rashid Kamal, General manager logistics, PSO and Abdul Hameed Razi, Additional General manager Traffic, Pakistan Railways(PR).

The FTA has been approved from the legal advisers so that both the departments/institute could work in their legal right. Both parties have decided to enter into this Agreement top set out their respective rights and obligations in relation to the transportation of fuel from Keamari, Marshalling Yard Pipri, Bin Qasim, Mehmood Kot and Attock Refinery limited.PSO and Railways have settled for the fuel hauling to the various power companies and terminals.PSO shall make the imbursement of transportation charges to railways for the movement of fuel. Railways reserve the right to revise the rates during the term of this agreement or any extended period.PSO shall make full payment of transportation charges to Railways of all booked consignments within 15 days from the time of booking.PSO shall endeavor to transport at least 2.0 million tons of fuel per year through Railway which is subject to demand placed by Ministry of Water and Power. This agreement has tenure of 5 years which can be extended after getting consent from both parties.

The fuel will be transported from Kaemari terminal to Muzzafargarh, Nishatabad, Piran Ghaib and Lalpir with the rate ranging , from Pipri Marshalling Yard and Bin Qasim Port to Muzaffargarh, Nishatabad,Piran Ghaib, Lalpir and Akhundabad, from Mehmood Kot to Chakpirana,Sihala and Tarujabba and from Attock Refinery, Morgah or Rawalpindi to Lalpir.

PR was purchasing petroleum products worth Rs 15 billion from the PSO for its own consumption whereas it has also been transporting petroleum products. The oil transportation of Pakistan State Oil (PSO) through Pakistan Railways has increased from four percent to 38 in three years. In the past, the percentage of the oil transportation of PSO through railways was only four percent which was very low that has now enhanced by concerted efforts of the Pakistan Railways. The increase has around 10 times more as to the previous transportation of oil through railways and efforts were underway to further enhance it.

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