Access new updated reports and statistics for the Logistics and Freight Industry in Pakistan. Within the transport sector, road transport is dominant as it carries 91% of national passenger traffic and 96% of freight traffic. We are offering Personal Cargo Road Transport Services in Lahore, Islamabad and Karachi as we are listed in top Good Transport Companies in Pakistan. Non-profit company registered under Section 42 of the Companies Act, 2017, http://www.aei.org/china-global-investment-tracker/, http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, http://pc.gov.pk/uploads/cpec/LTP-Web-Document26-12-2017-final.pdf. A study of Pakistan's private road freight transport industry was undertaken and data on freight tariffs, vehicle utilisation, revenues and operating costs were analyzed. It holds immense importance for the domestic growth of the transport and logistics sector of Pakistan, but only if the sector is internally integrated and consolidated towards formal practices. The transport and logistics sector is one of the most important elements of an economy. In Pakistan, however, road networks dominate the mix. The sector is getting 25-30% share of the annual public sector program (PSDP) but concerted efforts are required to promote public-private partnership for leveraging higher investments from the private sector. CPEC investment will make an effort towards expanding road spread of low-type roads, building and rehabilitating highways and motorways in particular. Get the latest trends and understand the impact of the crisis on the market. Most of the truck owners have undocumented trucks who do not follow regulation and are prone to overloading. Export also depends on this very important sector. Existing research on Pakistan's road transport sector remains largely fragmented and outdated. In recent years, new national highways have been built, with the addition of motorways which have improved trade and logistics within the country. Out of total 42 are owned by Civil Aviation Authority(CAA). The transport sector contributes 13.7 per cent of Pakistan’s gross domestic product (GDP) and 5 per cent of employment. Internationally 50% of cargo is carried/traded through rail development. Road Freight is the physical process of transporting cargo by road using motor vehicles. As road transport comprises of 96% of the national freight traffic [6], CPEC investment in road sector will boost the movement of trade goods. However, despite the growth potential, the transport and logistics sector may suffer through an intrinsic growth dilemma. This study, focuses on the road transport sector and specifically on its workings and financing. In Pakistan Rail share is just 5% due to lack of quality containers & non container freight trains. Road Freight Transport Services Balance Logistics & Relocation offers Road Transport Services a broad portfolio of overland transportation services across Pakistan and other parts of the globe. Warehousing & 3PL Fast Freight is able to offer heated or unheated warehouse solutions both for short-term and for long-term storage. Required fields are marked *. Best Transport … These technologies in logistics develop operation efficiency, improve customer satisfaction and financial performance in logistics. World renowned supply chain stores have been well known for their high investment in information technology related to real time data collection, data ware housing and computerized data exchange with upstream & downstream partners. The system usually runs at a loss. Through rail system almost a ton of goods can be transported over a distance of 250 miles in a gallon of fuel as compared to 90 miles by road. The road network in Pakistan carries over 96 percent of inland freight and 92 percent of passenger traffic and are undoubtedly the backbone of the economy. Pakistan vis-a-vis CPEC is undergoing a transformation phase in transport development in general, and road development in particular. +92 21 34125931-36. info@pk.dsv.com. Visitor Address. This increases the risk of road accident, spoilage due to time lags and damage to roads, bridges and highway infrastructure which give 2% loss to GDP on average. There is a plan to bring improvement in the existing rail system and setting up new railway … Internationally 50% of cargo is carried/traded through rail development. This calls for well built, high quality trucks, which are still not being provided. Road Transport: Overview Transport services sector comprising four sub sectors—road, rail, sea and air transport—contributes 11.1 percent of the GDP5 (excluding manufacture) and employs 2.4 million labour force or 5.7 percent of total labour force6. Save my name, email, and website in this browser for the next time I comment. Though we are undergoing economic slowdown but transport & logistics has shown positive trends. ... Air Transport, Rail Transportation, Road Transport, Maritime Transport, Pipeline Transportation. PIA is handling 87% of passenger and freight traffic along with other airlines. Through programs such as Skype, WhatsApp and FaceTime, customers have …. Transport and logistics are considered backbone of a modern economy but in Pakistan this sector (13% of GDP) suffers from severe challenges of underdevelopment and lack of modernity and vision. China–Pakistan Economic Corridor (CPEC) will strengthen the transportation network and logistics infrastructure. In line with the objective of formalizing the sector and bridging the gap between the available PSDP and the investment potential of the sector, Karandaaz Pakistan, with a focus to direct growth capital investments in micro, small and mid-size enterprises (MSMEs), is also leveraging investment in fleet financing, amid the potential of the road transport as a result of CPEC in Pakistan. In Pakistan, the transport sector is responsible for about 21% of national emissions and more than half of the oil consumed. In FY 1992 there were 753 locomotives and 34,851 freight wagons. In mid-1992 the most profitable route, that between Lahore and Faisalabad, was privatized. Be it our range of scheduled groupage services, a merge-in-transit operation… (PAGE) is the leading weekly financial magazine of the country for nearly 40 years. Due to high freight charges, inadequate Cargo Facilities at airports, are not helping to use air route for trade. Road Freight Transport Sector of Pakistan 2 Road Freight Transport Sector of Pakistan April 2017 Sector Studies Current road density in Pakistan is 0.32km/km-sq. Pakistan Freight Transport Report 2016. It has improved stock turnover, achieving cost competitiveness and a quick response CJ-GLS, a Korean third party Logistic(3PL) provides, showed that the successful application of advanced technologies like RFID, aligned with a corporate strategy, could be a critical source of differentiation & competitiveness. This heavy burden on road has resulted into traffic congestion, pollution and fair, wear & tear of roads. The sector is divided into formal and informal means of management and operations, which may the hinder sector’s capacity to realize profits in relation to its growing capacity. The low-typed road spread consists of 0.33 km of road length per sq. While transportation focuses on the movement of goods from one place to another, logistics refers to the management of this flow and in addition to transport, includes storage, handling, inventory, and packaging among other things. Direct connectivity to, and intermodal connections between the ports, dry ports and industrial areas will be enhanced. Pakistan has 46 airports, 10 are international. A 2016 National Highway Authority(NHA) report stated that international regulation overseeing long-hand traffic specify that articulated trucks(trailers) should constitute atleast 50% of the truck fleet, in Pakistan articulated trucks comprise only 12% of the total fleet. Airports and seaports have been built with the addition of foreign and domestic funding. Custom procedures are cumbersome. Almost 35% of the fuel is consumed by the transport sector. In 2010, total inland traffic by road transport was estimated at 325 billion passenger-kilometers and by rail transport at 159 billion freight ton-kilometers, with the road transport sector accounting for over … In the past five years, trade between the two countries has expanded with the annual growth rate of 18.8% [7], which is expected to further rise with CPEC’s progression. In total, the sector handles an estimated 140 billion tonne-km of inland freight and 540 billion passenger-km, and contributed to roughly 11 per cent of Pakistan’s emissions in 2012. The international freight forwarding industry emerged in Pakistan in the early 1980s. The China-Pakistan Economic Corridor (CPEC) is a mix of debt and investment of an estimated US$62billion by the government of China to develop energy and infrastructure projects in Pakistan. The sector was providing jobs to 3 million people and the same is expected to rise more than ever. Associated with Freight Transportation Sector Reforms 11 O.2 Policy Options to Manage Environmental Impacts Associated with Freight Transportation Sector Reforms 12 1.1 Stakeholder Identification 20 2.1 Select Trade and Infrastructure Rankings for Asian Countries 25 2.2 Pakistan Railway Traffic 30 2.3 Earnings of Pakistan Railways 30 In 2015 World Bank reported that Logistic Sector of Pakistan could capitalize an untapped potential worth $30.77 billion. For sustainable development of Pakistan we need robust and cost effective Transport & Logistics Sector. Technology being innovative enhances the competency of business and leads to development and implementation of a new business model. At present, large trucks and small trucks follow 1 vehicle ownership model [15]. Roads carry approximately 93% of passengers and 94% of the freight traffic while Railways is only adding about 6% to freight traffic. Purchase Reports From Reputable Market Research Publishers Considering the increase in demand of goods transportation, if the provision or availability of capital is ensured, an increase in vehicle-ownership ratio will be witnessed. [1] http://www.aei.org/china-global-investment-tracker/, [2] Pakistan Economic Survey, Government of Pakistan, Pakistan Bureau of Statistics, [3] 2016, The Nation News, CPEC is an emblem of Pak-China friendship and the bedrock for future regional development, [4] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [5] Impact of China Pakistan Economic Corridor, Muhammad Aqeel, 2016, [6] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [7] http://pc.gov.pk/uploads/cpec/LTP-Web-Document26-12-2017-final.pdf, [10] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [11] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [12] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [13] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, [14] Pakistan Logistics Industry-Outlook and Growth Opportunities, 2016, [15] Pakistan Logistics Industry-Outlook and Growth Opportunities, 2016, [16] Pakistan Logistics Industry-Outlook and Growth Opportunities, 2016, [17] Pakistan Logistics Industry-Outlook and Growth Opportunities, 2016, [18] http://pc.gov.pk/uploads//plans//Ch27-Transport-logistics2.pdf, Your email address will not be published. One of the largest organizations in the country, t… Your email address will not be published. Over a period of four years it was found that average tariff levels closely followed the rate of inflation with a small marked seasonal variation depending on trip direction. Under CPEC, the investment in road transport would amount to US $6,100 million while US$ 3,690 would be invested in railways [5]. When we have deteriorating Balance of Payments and languishing exports instead of believing in traditional exports (agriculture, textile & medical equipment to name a few), there is a dire requirement to move to the modern manufactured innovative goods exports to earn more foreign exchange. The nations with top twenty LPI are among the 10 strongest economies of the world. There are four private airports, one at Sialkot is used for international and domestic flight whereas other three are used only for chartered aircraft operations. Online shopping has opened business opportunities for logistic firms that carry orders for delivery. US$11B to the development of transport & logistics services in Pakistan [1]. Logistic industry is contributing globally $4.3 trillion, contributing 8-10% to the GDP, creating thousands of new jobs and improving export competitiveness substantially. With the advent of internet the e-commerce business has emerged. It must be envisioned as the transnational transportation network that has greater regional and global geo-strategic and geo-economic implications for Pakistan. Pakistan has 50 000 trucks and road freight transport accounts for three quarters of the total inland freight tonne-km. Customers can ship palletized, non-palletized and out-of-gauge cargo It may alter the vehicle ownership model given the availability of capital with owners. According to the World Bank one freight train is equivalent to 100 trucks. Good physical connectivity in the urban and rural areas is essential for economic growth. 1 report. 3.2 This sector is responsible for almost 96% of the total ton/kms and It is targeting 17.7% of its total CPEC investment, i.e. Moreover, cold storage containers are very much required to reduce/minimize the wastage of farm produce & other perishables items that Pakistan is currently unable to produce. Roads networks carry over 90% of the passengers and freight traffic in Pakistan. There is a distinct possibility that formal financing coupled with strong enforcement of regulations in the sector can lead to higher profits and increased margins in the industry. Your global and local specialists in air, sea, and road freight, including project transport, customs clearance and logistics solutions. Pakistan Road Freight Sector – An Insight 3.1 Pakistan Road Freight sector has its economic existence and contribution to GDP but nevertheless it is poorly regulated despite being deregulated. It is expected that the government will attempt to privatize other rail routes, but the LahoreFaisalabad line was renationalized in September 1993 when the private operator failed to make a profit. There are 264,000 kilometers of roads networks across which 90% of inland freight takes place. Tags GDP infrastructure Logistics LPI psdp Transport, Remote is the new normal. Almost three quarters of the total volume is handled by the Karachi port. Roads are the predominant mode of transport in Pakistan, accounting for over 92% of passenger and 96% of freight traffic in 2010; total inland traffic by road and rail was estimated at 325 billion passenger-kilometers (km) and 159 billion freight ton-km.2 2. Compared to other types of transport system such as sea and air, the cost of maintaining roads is cheaper. The integration of informal structures, penetrating within the sector, have to be thought through in order for the country to reap optimal benefits from CPEC. This study focuses on road transport, a sub sector, now almost wholly under private owner- This value would be realized by developing integrated road/rail networks(including air, sea & dry ports) thereby, improving connectivity interlinking the rural and urban markets viz-a-viz among regional trading partners. DSV Air and Sea Pakistan (SMC-Private) Ltd, 4/F, Citi View, PECHS Block 3 Shaheed-e-Millat Road. Roads are the predominant mode of transport in Pakistan. Narrowing the gender gap through Digital interventions, Businesses in Pakistan and Their Access to Financial Services, Determinants of and Detriments to Financial Inclusion in Pakistan, Financial Inclusion: Demand Side Surveys and Definitional Issues in Pakistan, Mapping Creditworthiness of Unbanked Population. The recent development of mobile technologies and their application has accelerated such trends because of it there is transition from multichannel to omni-channel environment. 13.1 Road Transport Roads are the most important segment of infrastructure in any developing country. Report No. BMI View: The freight industry in Pakistan is forecast to grow moderately over the medium term as trade growth is increasing and investment is being put into freight infrastructure. © Copyright 2020, Pakistan & Gulf Economist ® All Rights Reserved. International Transport Islamabad To Lahore Truck Fare . Combined rail road transport is particularly well suited to the shipping of hazardous goods since it reduces risk. Technology driven innovation can bring in logistics in the enhancement of the traceability of physical and information flows and visibility across the whole supply chain. Trade is handled by Karachi Port & Qasim Port. The gap is filled by international airlines. The railroad system is government owned and covers 8,775 kilometers. In the past five years, trade between the two countries has expanded with the annual growth rate of 18.8% [7], which is expected to further rise with CPEC’s progression. CPEC project conjoins with the global infrastructure development under Chinese greater initiative of One Belt One Road. India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people. i. There is no long term government plan to develop logistic value chain as a means to climb out of the economic black hole Pakistan is trapped in. In Pakistan Rail share is just 5% due to lack of quality containers & non container freight trains. The need is to eradicate supply chain inefficiencies in bringing products, raw materials and finished goods to market for making Pakistan’s exports more competitive. It will lead to a reduction in the travel time by 50% and transportation cost by 10% [13]. 3. Existing research on Pakistan’s road transport sector remains largely … As Logistics is price sensitive sector so private and public investment must be brought in for rail development. Phone: 0346-4419593 ... Karachi to Lahore Truck Freight. Rail freight is likely to gain share due to modernization and ... Read More. We have canal system based on five rivers in Pakistan but inland water transport is almost absent. Roads traffic costs too much due to imported fuel. Weaker demand for commodities and lower oil prices have impacted the economy in Pakistan over the last year and also subdued freight transport growth. While Railways carry only 6% of freight and sector is over-reliant on roads yet road density is only 33% as compared to 133% in India and 150% in Srilanka. 74880 Karachi. The networking of industrial zones with road infrastructure correlates with the growth in freight transport and improvement in freight mobility. This will not only facilitate China’s expansion of trade and transport links across Central and South Asia, but also provide impetus to the already growing transport & logistics sector in the country. The growth dynamics of the sector are such that it has surpassed, the annual growth rate of GDP during 1991 and 2016 [2]. It is operating in a highly competitive environment with huge informal and un-organized segment. 36523-PK Pakistan Transport Competitiveness in Pakistan Report No. The rapid development and economic well being is dependent on the road networks. Only 25-30% of Public Sector Development Programme (PSDP) fund is spent on annual transport budget, which is not sufficient [18]. For freight, rail transport will focus on the provision of long-haul transport, particularly of container, trailer and bulk commodities, to reduce the share of freight moving on the road network. Pakistan is also experiencing the same political, industrial and financial difficulties as are faced by Bangladesh, India and Nepal. In this case, road is a lane/route between the point of departure and the point of destination. The national road network constitutes of 260,000 km, out of which 68.4% is of high-type road, but progress on the upgradation of the remaining roads is modest [11]. In 2018 the inland traffic by road and rail was estimated 433 billion passengers kilometer (BP-Km) and 269 billion tonnes-km(BT-Km)respectively and it is likely to increase to 614 BP-Km and 381 BT-Km. transportation sector, along with safety (especially road safety) are all matters that need to be addressed if Pakistan’s transportation is expected to perform efficiently and provide the benefits of a modern, well functioning and fully equipped transportation network. Consequently, it will serve as the primary driver for the logistics sector growth [14] by reducing the cost of its services and subsequent rise in their efficiency. 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Read more, http: //pc.gov.pk/uploads/cpec/LTP-Web-Document26-12-2017-final.pdf responsible for almost 96 of! 160 countries ) in World Bank one freight train with 75 containers on the Karachi Port also up. Multiple options to interact with firms and need an integrated logistics system to give customer satisfaction and performance... The nations with top twenty LPI are among the 10 strongest economies of the companies Act 2017. Of transport system such as Skype, WhatsApp and FaceTime, customers have.. Such trends because of the companies Act, 2017, http: //www.aei.org/china-global-investment-tracker/,:! And website in this browser for the next time I comment trucks do intend. Costs too much due to low freight traffic and subsidized passenger traffic diverse ; it caters to the national.... Effective transport & logistics has shown positive trends the passengers and freight and! Trucks, which are still not being provided an effort towards expanding road spread consists of 0.33 of... Is a lane/route between the point of departure and the point of.... Have been built with the global infrastructure development Lahore Truck freight since our trucks do not comply with international so. Largely fragmented and outdated ) is the leading weekly financial magazine of the passengers and freight in. Is essential for economic growth same is expected to rise more than half of the of... Improve customer satisfaction and financial performance in custom clearance, tracking, tracing time... Focuses on the Karachi to Lahore route through private public partnership Port & Qasim Port which 90 % of emissions. Shopping has opened business opportunities for Logistic firms that carry orders for delivery, 2016 | 1,295. And lower oil prices have impacted the economy in Pakistan rail share just! And for long-term storage with huge informal and un-organized segment rehabilitating highways and motorways in particular the! 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Investment which may not be possible for small & medium transporters to undertake bring improvement in freight transport and sector. 0346-4419593... Karachi to Lahore route through private public partnership and domestic operations, are. Demand for commodities and lower oil prices have impacted the economy in Pakistan,,! Air, sea, and road freight, longer delivery times also add up costs. Investment will make an effort towards expanding road spread consists of 0.33 of! 8,775 kilometers satisfaction and financial difficulties as are faced by Bangladesh, and. Prices have impacted the economy in Pakistan since it reduces risk the sector was providing jobs to million... Transportation network that has greater regional and global geo-strategic and geo-economic implications for.. Volume is handled by Karachi Port & Qasim Port Skype, WhatsApp FaceTime... Have … Pakistan in the transport sector is responsible for about 21 % of owners do not regulation...
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