CPEC ML-1 project: Pakistani federal cabinet green lights negotiations on FCA

Islamabad: Pakistan’s Federal Cabinet of Pakistan has granted approval to initiate negotiations on the Financial Commitment Agreement (FCA) between Pakistan Railways and China, a significant step towards the realization of the long-anticipated Mainline-1 (ML-1) upgrade project.

This project is a cornerstone of the China-Pakistan Economic Corridor (CPEC) and is crucial for enhancing Pakistan’s railway infrastructure.

The decision was made during a cabinet meeting held in Islamabad, chaired by Prime Minister Shehbaz Sharif. It was determined that once the negotiations are concluded, the final agreement for the ML-1 project will be presented to the cabinet for formal approval.

The ML-1 project is a vital infrastructure development initiative, central to the broader strategic goals of CPEC. Its approval follows the federal government’s endorsement of the annual budget plan for 2024-25 in June, which marked the initiation of CPEC’s second phase. This new phase of CPEC emphasizes enhanced bilateral cooperation across various sectors, including industrial development, agricultural modernization, socioeconomic growth, scientific research, infrastructure, and energy.

Spanning a length of 1,726 kilometers, the ML-1 railway project will be executed in three distinct phases. Upon completion, it is expected to significantly enhance Pakistan’s logistics and transportation capabilities. The Chinese government has pledged financial support for the project, potentially including loans on favorable terms. The specific details of this financial assistance will be finalized through negotiations between the relevant departments of both countries.

The upgrade of the ML-1 railway is designed to accommodate train speeds of up to 160 km/h, with an operational speed set at 120 km/h on the newly constructed tracks. This modernization will increase the railway line’s capacity from its current 34 trains per day to 120 trains per day, ensuring it can meet the transportation needs of Pakistan’s growing population for the next 25 to 30 years.

In terms of passenger and freight capacity, the upgraded ML-1 is expected to handle up to 170 million passengers annually, a significant increase from the current 29 million. Additionally, the line’s freight capacity is projected to rise from 8 million tons to 43 million tons, which will be crucial for supporting the country’s economic growth.

However, despite the extensive benefits anticipated from the ML-1 upgrade, concerns have been raised by relevant ministries regarding certain aspects of the project. Notably, the current Project Concept-I (PC-I) does not include provisions for rolling stock and security infrastructure. To address these issues, a separate PC-I, estimated at approximately Rs36 billion, is being processed to ensure that the security aspects of the project are adequately covered.

The envisioned ML-1 upgrade represents a major leap forward in Pakistan’s infrastructure development, aiming to provide a robust, reliable, and efficient railway network that meets the country’s long-term transportation needs.