Sampel RFP - Pak Railway

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Request for Proposal for Leasing Out Freight Trains/Wagons

REQUEST FOR PROPOSAL FOR OUTSOURCING ALL


WAGONS/TRAINS
FREIGHT WAGON/TRAIN TOFOR
PRIVATE PARTIES

May - 2021

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Request for Proposal for Leasing Out Freight Trains/Wagons

TABLE OF CONTENTS

SECTION 1: INVITATION FOR RFP ...............................................................................................................................4


FORM GENERAL – 1: GENERAL INFORMATION ........................................................................................................11
FORM GENERAL – 2: LITIGATION HISTORY...............................................................................................................12
SECTION 2: INSTRUCTIONS TO BIDDERS ..................................................................................................................13
2.1. DEFINITIONS: ........................................................................................................................................... 13
2.2. INTRODUCTION......................................................................................................................................... 14
2.3 CONFLICT OF INTEREST ............................................................................................................................... 14
2.4 CONFLICTING RELATIONSHIPS ...................................................................................................................... 14
2.5 FRAUD AND CORRUPTION ........................................................................................................................... 15
2.6 ELIGIBILITY OF BIDDERS .............................................................................................................................. 15
2.7 PRE-BID MEETING:.................................................................................................................................... 16
2.8 PROPOSAL VALIDITY .................................................................................................................................. 16
2.9 CLARIFICATION AND AMENDMENT OF RFP DOCUMENTS ................................................................................. 16
2.10 PREPARATION OF PROPOSAL ....................................................................................................................... 17
2.11 BID SECURITY ........................................................................................................................................... 17
2.12 PERFORMANCE GUARANTEE ........................................................................................................................ 17
2.13 STAFF AND MACHINERY.............................................................................................................................. 18
2.14 TECHNICAL PROPOSAL FORMAT AND CONTENT ............................................................................................... 18
2.15 FINANCIAL PROPOSAL ................................................................................................................................ 18
2.16 PAYMENT OF SERVICES FEE ......................................................................................................................... 18
2.17 TAXES .................................................................................................................................................... 18
2.18 SUBMISSION AND RECEIPT OF PROPOSAL ....................................................................................................... 18
2.19 PROCEDURE FOR OPENING OF BIDS............................................................................................................... 19
2.20 CORRECTION OF ERRORS ............................................................................................................................ 19
2.21 EVALUATION OF TECHNICAL PROPOSAL ......................................................................................................... 19
2.22 PUBLIC OPENING AND EVALUATION OF FINANCIAL PROPOSALS ........................................................................... 19
2.23 CONFIDENTIALITY ...................................................................................................................................... 19
2.24 NOTIFICATION OF AWARD........................................................................................................................... 20
2.25 COMMENCEMENT OF ASSIGNMENT .............................................................................................................. 20
2.26 MALPRACTICE OR UNSATISFACTORY PERFORMANCE ........................................................................................ 20
2.27 DEFAULT ................................................................................................................................................. 20
DATA SHEET (INSTRUCTION TO BIDDERS) ............................................................................................................21
SECTION 3: CONDITIONS OF THE CONTRACT (COC) .................................................................................................24
3.1 DEFINITIONS ................................................................................................................................................ 24
3.2 COMMENCEMENT, COMPLETION, MODIFICATION, AND TERMINATION OF CONTRACT................................................ 24
3.3 OBLIGATIONS OF THE BIDDER .......................................................................................................................... 26
3.4 BIDDERS PERSONNEL..................................................................................................................................... 28
3.5 OBLIGATIONS OF THE CLIENT .......................................................................................................................... 28
3.6 PAYMENT TO THE CLIENT ............................................................................................................................... 28
3.7 FAIRNESS AND GOOD FAITH ........................................................................................................................... 28
3.8 SETTLEMENT OF DISPUTES .............................................................................................................................. 29
SECTION 4: ..........................................................................................................TERMS OF REFERENCE (TOR)
................................................................................................................................................................................30
4.1 SCOPE OF LEASING OUT OF FREIGHT TRAINS ...................................................................................................... 30
4.2 GENERAL RESPONSIBILITIES ........................................................................................................................... 31

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Request for Proposal for Leasing Out Freight Trains/Wagons

SECTION 5: .................................................................................................................................APPENDICES
................................................................................................................................................................................33
APPENDIX-A TECHNICAL PROPOSAL SUBMISSION FORM .....................................................................................34
APPENDIX-B CRITERIA FOR RESPONSIVENESS CHECK ...........................................................................................35
APPENDIX-C CRITERIA FOR EVALUATION OF TECHNICAL PROPOSAL ....................................................................36
APPENDIX-D FINANCIAL PROPOSAL SUBMISSION FORM MULTIPLE TRAIN OPTIONS ............................................39
APPENDIX-E STANDARD FORMAT OF CONTRACT AGREEMENT FORM OF CONTRACT AGREEMENT .....................41

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Request for Proposal for Leasing Out Freight Trains/Wagons

Section 1: Invitation for RFP Date: 20-05-2021

SUBJECT: REQUEST FOR PROPOSAL (RFP) FOR LEASING OUT COMMERCIAL MANAGEMENT OF
FREIGHT TRAINS FOR 2 YEARS

1.1. In accordance with the advertisement on the subject published in the press as well
as available on Pakistan Railways & PPRA websites, we now invite sealed Bids from
the interested parties for taking part in the open competitive bidding for providing
dedicated block trains for the Transportation services in freight sector of Pakistan
Railways.
1.2. To maximize its revenues through multiple dimensions, Pakistan Railways (PR)
intends to invite private parties having relevant experience and expertise for leasing
out of commercial management of Freight Trains through one stage – two envelope
proposal. All high capacity freight wagons as well conventional freight wagons of
PR will be offered on Outsourcing model to the private sector for various
destinations of national rail network.
1.3. Following proposed routes are available for this service, however parties can offer
routes of their choices with details of cargo commodity and the required number of
freight wagons on those proposed routes:
Sr. Route Committed Wagon
No Trips Monthly type
(1) GROUP – A: High Capacity Five COAL AND PHOSPHATE
Karachi-Faisalabad Dry Port- (5) ZBKC 575
Karachi ZBKH 120
Karachi-Chichu ki Malian- (ZBKH will be
Karachi Offered at destinations
Karachi-Jia Bagha-Karachi where
Karachi – Lalamusa – Karachi unloading facility
Karachi – Wazirabad– Karachi for subject
Karachi – Kundian – Karachi wagons are available)
Karachi-Daudkhel-Karachi

OR Any other route with max.


Rev to be decided in the pre-
bid conference.

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Request for Proposal for Leasing Out Freight Trains/Wagons

(2) GROUP-B: Four


Same as in Group A
Karachi-Piran Ghaib-Karachi (4)
Karachi-Machi Goth-Karachi
OR Any other route with max.
Rev. to be decided in the pre-
bid conference

(3) GROUP-C Six (6) ZBFC 518


Karachi – Qila Sattar Shah – Small
Karachi Large
Karachi – Faisalabad Dry Port–
Karachi
Karachi –Jia Bagha – Karachi –
Five (5)
OR Any other route with
max. Rev. to be decided in
the pre-bid conference
(4) GROUP-D Four (4)
Karachi – Lahore – Karachi
Karachi-Badami Bagh-
Karachi
ZBC
Karachi – Faisalabad –
371 wagons
Karachi
Karachi – Multan – Khi
Six (6)
OR Any other route with max.
Rev. to be decided in the pre-
bid conference.

(5) Group-E Three (3)


Karachi – Pir Pai (Azakhel) –
Karachi
MBFR
Karachi-Chaman-Karachi
189 wagons
OR Any other route with max.
Rev. to be decided in the pre-
bid conference.

(6) Group-F To be decided Covered wagons


Destinations to be decided in in the pre-bid C (4-wheeler)
the pre-bid conference conference 345 wagons

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Request for Proposal for Leasing Out Freight Trains/Wagons

(Conventional)

(7) Group-G To be decided Conventional


Destinations to be decided in in the pre-bid Container wagons
the pre-bid conference conference FRC(4-wheeler)
124 wagons
BFRC(8-wheeler)
15 wagons
BFC(8-wheeler)
59 wagons
BKFC(8-wheeler)
64 wagons
BKF(8-wheeler)
74 wagons

(8) Group-I To be decided


Karachi-Khushalkot-Karachi in the pre-bid
Conventional
Karachi-Pind Dadan Khan- conference
Open top
Karachi
Wagons
OR Any other route with max.
KC
Rev. to be decided in the pre-
445 wagons
bid conference.
BKC
37 wagons

(9) GROUP-J To be decided


ZBTO (High Capacity)
Destinations to be decided in in the pre-bid
192 wagons
the pre-bid conference conference
(10) GROUP-H To be decided Conventional
Destinations to be decided in in the pre-bid Tanks (4-wheeler)
the pre-bid conference conference 138 wagons
Tanks (8-wheeler)
181 wagons (Air Brake)
95 wagons(Vacuum)

Note:
a. The bid will be evaluated based on highest offer per wagon per trip for each
destination based on the committed trips.
b. The bidder can bid for one or more than one groups subject to maximum of 4 rakes
(4x34 wagons) of High capacity wagons and 2 rakes (2x30 8- wheeler or 60 4-
wheeeler wagons) of conventional wagons to ensure diverse participation of bidders.
c. If more than one bid is received for one destination beyond the capacity of the
terminal to handle these trains the highest bid will be considered as the successful
bid.
d. The revenue for minimum trips will be based on offered rate per wagon which will be
guaranteed revenue irrespective of the fact that wagon is utilized or not.

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Request for Proposal for Leasing Out Freight Trains/Wagons

e. The viability of the bid submitted for each group will be decided by the constituted
committee based on high yield per wagon.
f. The party can also bid for the wagons with fuel being their responsibility. The matter
will be discussed in the pre-bid conference.
1.4
1.4.1 The rakes will be allocated based on minimum number of wagons per train
i.e. 34 ZBFC, ZBKC, ZBC (2040 tons), 40 ZBKH (2400 tons), 60 4-
wheeler(conventional) or 30 8-wheeler wagons(conventional) (1200 tons) payload
per train. Each bidder will bid for wagons in above multiples.
1.4.2 The wagon will be loaded up to maximum carrying capacity of the wagon
which is 60 tons for ZBKC, ZBKH, ZBC, ZBFC, ZBTO, MBFR/C and 22 tons for 4-wheeler
conventional stock and 44 tons for 8-wheeler conventional stock.
1.5 Loading and Un-loading points
1.5.1 The loading and unloading yards for the container will be as under:
Loading yards Unloading yards
Port Qasim/QICT Faisalabad Dry Port
Jumma Goth Premnagar
Marshalling Yard Pipri Qila Sattar Shah
SAPT Jia Bagha
KPT( East wharf/West wharf) Moghulpura
Wazir mansion Azakhel
Wazirabad
Gujranwala
Any other point to be decided in the pre-bid Any other point to be decided in the pre-bid
conference conference

1.5.2 The loading and unloading yards for coal will be as under:
Loading yards Unloading yards
Marshalling Yard Pipri Faisalabad Dry port
Chichu ki Maliyan
Jia Bagha
Daudkhel
Kundian
Any other point to be decided in the pre-
bid conference

1.5.3 The loading and unloading yards for phosphate will be as under:
Loading yards Unloading yards
East wharf Piran ghaib
West wharf Machi goth
Any other point to be decided in the pre-bid Any other point to be decided in the pre-
conference bid conference

1.5.4 The loading and unloading yards for other commodities will be decided in the pre-bid
conference.

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Request for Proposal for Leasing Out Freight Trains/Wagons

1.6 To maximize PR revenue, one-month advance payment will be maintained in the FDA of
the party. If, however the party fail to recoup the FDA on the first day of the month its
operation and booking will be stopped till the recoupment of FDA. If the party fail to
recoup the FDA by the 15th of the month, his contract shall be cancelled and performance
guarantee shall be forfeited.
1.7 The party will be bound to maintain FDA at all times equivalent to one trip of the rake
1.8 Private party’s performance will be monitored on quarterly basis based on the
timely loading and unloading and efforts to maintain the turnaround of the stock.
1.9 PR will provide guaranteed “minimum number of round trips per month” as
mentioned in clause 1.3 above for each group.
1.10. In case of making less trips than the committed / guaranteed trips the party will be
adjusted and the method will be decided in the pre-bid conference.
1.11. Private parties will ensure guaranteed revenue to Pakistan Railways per wagon per
trip basis.
1.12 In case of any additional round trips by Pakistan Railways, over and above the
minimum guaranteed trips per month, the rate offered in the bid will be charged
and the same party will be bound to load.
1.13. Minimum one rake and maximum 4 rakes of High Capacity per party will be
allocated. The party who has been allocated High capacity stock up to 4 rakes can
also bid for conventional rakes as elaborated in 1.14 below.
1.14 Minimum one rake and maximum 2 rakes of conventional wagons per party will be
allocated.
1.14. In summary this model requires the following:
1.14.1. PR to provide minimum number of round trips per month at any specific
route of these trains.
1.14.2. PR to provide assured number of wagons for each train
1.14.3. Private parties to ensure guaranteed loading / unloading time of 6 hours at
originating and destination station. If, however, the party fail to load/unload
within the specified period of 6 hours’ demurrage will be levied as per
Railway rules.
1.14.4 If however, the party fail to load for continuous 24 hours, full freight for the
round trip will be charged.
1.14.5. Private parties to provide assured revenue per wagon per trip basis to
Pakistan Railways on the basis of committed trips for each destination.
1.14.6. PR will allocate dedicated number of wagons with serial number and will
form part of the contract.
1.14.7. If more than one party bids for same commodity train, then the highest
financial bid will be awarded the contract.
1.14.8 The stock allocated can be temporarily withheld by the client on account of
emergent or strategic interests. However, Payment of such period will not
be charged.
1.15 The procedure for open competitive bidding on the subject project is as under: -

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Request for Proposal for Leasing Out Freight Trains/Wagons

(i) The bids are called under single stage two envelop procedure of PPRA rules
2004
(ii) Each bid shall contain two envelopes marked as “FINANCIAL PROPOSAL” and
“TECHNICAL PROPOSAL” in bold and legible letters to avoid confusion.
(iii) Initially, only the envelope marked “TECHNICAL PROPOSAL” shall be
opened.
(iv) The envelope marked as “FINANCIAL PROPOSAL” shall be retained in the
custody of the procuring agency without being opened.
(v) PR (client) shall evaluate the technical proposal of the responsive bids as
prescribed in the bid documents, without reference to the price and reject
any proposal, which does not conform to the specified requirements.
(vi) After the submission of bids, no amendment/change/alteration would be
allowed.
(vii) After the evaluation and approval of the technical proposal, the financial
proposal of bids of technically unqualified bidders shall be returned
unopened to the respective bidders.
(viii) After notifying the result of technical evaluation Pakistan Railways shall at a
time within the bid validity period, publically open the financial proposals of
the technically accepted bids only on the notified date as per laid down
rules.
(ix) The financial proposal of bids shall be opened publically at the time, date
and venue announced and communicated to the technically qualified
bidders in advance.
1.16 Bid documents containing the following are hereby issued to firm(s) for submission
duly filled in as per instructions specified in the Bid Documents:
General 1: General Information
General 2: Litigation History
Section 2: Instructions to Bidders (including Data Sheet)
Section 3: Conditions of Contract
Section 4: Terms of Reference
Section 5: Appendices
1.17 The Technical Bid must be accompanied by a Bid Security (in the form and amount
specified) in the data sheet and all other documents as stated in the Bid Documents
and must be delivered at the address stated in Bid Documents by 11th June up to
1100 hours. Bids will be opened half an hour thereafter in the presence of Bidders
or their authorized representatives who choose to attend.
1.18 It is mandatory for proposals to be prepared using Standard Forms of RFP. Any
proposal not prepared according to prescribed format may be rejected. If any
information required in the Forms is found missing or written elsewhere, no credit
will be given in the relevant section of the evaluation.
1.19 The Bidders can be single entity or Joint Venture / consortium of national firms, with
total number of firms in JV not more than three or a group of companies (sponsors).
However, the sponsor must be the owner of group of companies or the group of
sister companies under the umbrella of sponsor.

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Request for Proposal for Leasing Out Freight Trains/Wagons

1.20 Interested parties can download the bid documents from the website
PAKRAIL.GOV.PK or PPRA.GOV.PK. However, the bids will be submitted only on
payment of Rs.7000 in favour of FA&CAO/Revenue. The bids will be submitted to:
Chief Marketing Manager, Pakistan Railways
Headquarter Office, Lahore
Tel:042-99201789

1.21. Minutes of the pre-bid meeting will form an integral part of this RFP.

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Request for Proposal for Leasing Out Freight Trains/Wagons

Form General – 1: General Information

DESCRIPTION Remarks

Name of Firm with complete registration details +


1
NTN and should be filer with FBR.

2 Type of Organization and Present business

3 Past experience of similar business

4 Office address in Pakistan

5 Telephone & Fax No.

6 Office Address:-

7 E-mail and website

8 Place and year of Incorporation/Registration

9 Person to be contacted cell No.

Annual turnover of the firm along with the Bank


10 and Income Tax statement and audited reports for
the last three 3 years
The Bidders are required to provide accurate
information on any litigation or arbitration, arising
11 out of the assignments completed or in progress
over the last five years in the manner as prescribed
in the Form General-2.
Certificate/Affidavit that the firm is not blacklisted
12
by any Government Department/ Authority.
No default certificate showing that the party is not
13 defaulter of any Government/Semi-Government
or Government or Private Organization.
Power of Attorney to sign the Bid
14
(in case of representative).

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Request for Proposal for Leasing Out Freight Trains/Wagons

Form General – 2: Litigation History

Bidders should provide information on any history of litigation or arbitration resulting from
contracts executed in the last five years or currently under execution.

Status
Party / Parties of Nature of Claims / Amount of the (Award FOR or
Date initiated
the claim / dispute Dispute claim / dispute. AGAINST the
Bidders)

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Request for Proposal for Leasing Out Freight Trains/Wagons

Section 2: Instructions to Bidders

2.1. Definitions:
2.1.1 “Government of Pakistan” means the Government of Pakistan and all its associated
departments, agencies, autonomous/semi- autonomous bodies, boards, universities
and similar other organizations.
2.1.2 “Client” means Pakistan Railways
2.1.3 "Bidders" means any entity / firm / Joint venture of firms or group of companies that
is participating in bidding procedure.
2.1.4 "Agreement" means the Agreement signed by the Client and the Bidders and all parts
of Bid Documents.
2.1.5 "Data Sheet" means such part of the Instructions to Bidders used to reflect specific
conditions.
2.1.6 "Instructions to Bidders" means the document, which provides Bidders with all
information needed to prepare their Bids.
2.1.7 “Personnel" means professionals and support staff proposed / provided by the Bidders
to perform the services.
2.1.8 "Services" or "assignment" means the work to be performed by the Bidders pursuant
to the Agreement.
2.1.9 "Terms of Reference" (TOR) means the document included in the BID which explains
the objectives, scope of work, activities, tasks to be performed, respective
responsibilities of the Client and the Bidders.
2.1.10 “RFP” means the Request for Proposal issued by the Client for the selection of Bidders.
2.1.12 “Similar Assignment” means successfully completed assignments for providing door
to door transportation services of containers & other general goods by railway or
road. Using of Railway transit will get preference.
2.1.13 ZBKC means open top coal/phosphate wagons with side wall for manual discharge with
maximum weight condition of 60 tons each wagon.
2.1.4 ZBKH means open top coal/phosphate wagons with bottom discharge with facility/pit available
for unloading with maximum weight condition of 60 tons each wagon.
2.1.5 ZBFC/S means container small wagons with the capacity to load 2-TEUs or 1-FEU with
maximum weight condition of 60 tons each wagon
2.1.6 ZBFC/L means container wagons with the capacity to load 3-TEUs or 1-FEU and 1-TEU with
maximum weight condition of 60 tons each.
2.1.7 ZBTO means liquid cargo high capacity wagon with the capacity to load 60 tons each wagon
2.1.8 ZBC means 8-wheeler covered wagon for loading loose cargo like
fertilizer/wheat/rice/miscellaneous in bags and in boxes with maximum weight condition of 60
tons each wagon.
2.1.9 MBFR/c means container wagon with maximum capacity to load 2-TEUs 0r 1-FEU and
maximum weight condition of 60 tons each wagon.
2.1.10 FRC means container 4-wheeled wagon with capacity to load 1-TEU with maximum weight
condition of 22 tons each.
2.1.11 BFRC/BFC means container 8-wheeled wagon with capacity of to load 2-TEUs or 1-FEU with
maximum weight condition of 44 tons each.

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Request for Proposal for Leasing Out Freight Trains/Wagons

2.1.12 KC means open top coal/phosphate wagon with side wall for manual discharge with maximum
weight condition of 22 tons each wagon
2.1.13 BKC means open top coal/phosphate wagon with side wall for manual discharge with
maximum weight condition of 44 tons each wagon.
2.1.14 C wagons means covered 4-wheeled wagon with side door for loading loose cargo like
fertilizer/rice/wheat/miscellaneous in bags and cargo in boxes with maximum weight
condition of 22 tons each
2.1.15 BC wagons means covered 4-wheeled wagon with side door for loading loose cargo like
fertilizer/rice/wheat/miscellaneous in bags and cargo in boxes with maximum weight
condition of 44 tons each wagon.
2.2. Introduction
2.2.1 The Client named in the Data Sheet will select Bidders in accordance with the method
of selection specified in the Data Sheet.
2.2.2 The Bidders are invited to submit a Bid for the service/services required for the
assignment named in the Data Sheet.
2.2.3 Bidders should familiarize themselves with assignment conditions and take them into
account in preparing their Bids. Bidders should contact the Client's representative
named in the Data Sheet to obtain information regarding the assignment. Bidders
should ensure that the official is informed well- ahead of time in case they wish to
visit the Client.
2.2.4 (a) Bidders shall bear all costs associated with the preparation and
submission of their Bids.
(b) The Client is not bound to accept any Bid, and reserves the right to annul
the selection process at any time prior to Agreement award, without thereby
incurring any liability to the Bidders.
2.3 Conflict of Interest
2.3.1 Government of Pakistan policy requires that Bidders provide professional, objective,
and impartial advice and always hold the Client’s interest’s paramount, strictly avoid
conflicts with other assignments or their own corporate interests and act without
any consideration for future work.
2.3.2 Without limitation on the generality of the foregoing, Bidders, and any of their
affiliates, shall be considered to have a conflict of interest and shall not be recruited,
under any of the circumstances set forth below:
2.4 Conflicting relationships
2.4.1 A Bidder (including its Personnel and Sub- Bidders) that has a business or family
relationship with a member of the Client’s staff who is directly or indirectly involved
in any part of (i) the preparation of the Terms of Reference of the assignment, (ii)
the selection process for such assignment, or (iii) supervision of the Agreement, may
not be awarded an Agreement, unless the conflict stemming from this relationship
has been resolved in a manner acceptable to Pakistan Railways throughout the
selection process and the execution of the Agreement.
2.4.2 Bidders have an obligation to disclose any situation of actual or potential conflict
that impacts their capacity to serve the best interest of their Client, or that may
reasonably be perceived as having this effect. Failure to disclose said situations may
lead to the disqualification of the Bidders or the termination of its Agreement.

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2.5 Fraud and Corruption


2.5.1 PR requires Participant Bidders to adhere to the highest ethical standards, both
during the selection process and throughout the execution of an agreement. In
pursuance of this policy of Pakistan Railways.
(a) Defines, for the purpose of this paragraph, the terms set forth below:
(i) "Corrupt practice" means the offering, giving, receiving, or
soliciting, directly or indirectly, of anything of value to influence the
action of a public official in the selection process or in agreement
execution;
(ii) "fraudulent practice" means a misrepresentation or omission of
facts in order to influence a selection process or the execution of
agreement;
(iii) "Collusive practices" means a scheme or arrangement between two
or more Bidders with or without the knowledge of the Client,
designed to establish prices at artificial, noncompetitive levels;
(iv) "Coercive practices" means harming or threatening to harm,
directly or indirectly, persons or their property to influence their
participation in a procurement process, or affect the execution of
agreement.
(b) Will reject a Bid for award if it determines that the Bidders recommended
for award
has, directly or through an agent, engaged in corrupt, fraudulent, collusive
or coercive practices in competing for the agreement in question;

(c) Will debar a Bidder, including declaring the Bidder ineligible, either
indefinitely or for a stated period of time, to be awarded an agreement if at
any time it determines that the Bidder has, directly or through an agent,
engaged in corrupt, fraudulent, collusive or coercive practices in competing
for, or in executing the agreement.
2.6 Eligibility of Bidders
• The bidders may be a single corporate entity or a group of companies
(“Sponsors”).
• However, the sponsor must be the owner of the group of companies or the
owner of the sister companies participating under the umbrella of sponsor.
• The single entity must be registered and established under Companies
Ordinance 1984.
• The term bidders used hereinafter would apply to both, a single entity or a
Sponsor.
• The bidders shall submit a Power of Attorney duly attested by Notary Public.

Bids submitted by a consortium shall comply with the following additional


requirements:

(a) The bid shall contain information required for each member of the
consortium;

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Request for Proposal for Leasing Out Freight Trains/Wagons

(b) The bid shall include a description of the roles of individual members as per
required format.
(c) Members of the Consortium shall nominate one member as the ‘Lead
Consortium Member’. The nomination(s) shall be supported by a Power of
Attorney as per the required format, signed by all the members.
(d) Any entity, which has been barred by law or by PR, or has been blacklisted
by PPRA from participating in projects in Pakistan, would not be eligible to
submit the bid, either singly or in a consortium.
2.7 Pre-bid Meeting:
Pre-bid meeting will be held before opening of the bids as intimated in the
advertisement. Participation of all intended bidders in this meeting is encouraged.
This meeting will be aimed at providing an opportunity to the bidders for seeking
any clarifications or explanations on the bid documents, scope of services to be
provided, bidding process or any other matter important to the bidders.
In the interest of productiveness of the pre-bid meeting the bidders are requested,
as far as possible, to submit any questions in writing, to reach the office of Chief
Marketing Manager, Pakistan Railways, headquarter office, Lahore not later than
three working days before the date of meeting. Minutes of the meeting, including
the text of the questions raised and the responses thereof shall be transmitted to all
shortlisted bidders. The minutes of pre-bid meeting shall form an integral part of
this RFP document.
2.8 Proposal Validity
The Data Sheet indicates how long Bidders' Bid must remain valid after the
submission date. In exceptional circumstances, prior to expiry of the original bid
validity period, the Client may request that the bidders extend the period of validity
for a specified additional period which shall in no case be more than the original bid
validity period. The request and the responses thereto shall be made in writing. A
bidder may refuse the request for which his Bid Security will not be forfeited. A
bidder agreeing to the request will not be required or permitted to modify his bid,
but will be required to extend the validity of his Bid Security for the period of the
extension.
2.9 Clarification and Amendment of RFP Documents
2.9.1 Bidders may request a clarification regarding any part of the Bid documents up to
the number of days indicated in the Data Sheet before the Bid submission date. Any
request for clarification must be sent in writing, or by standard electronic means to
the Client's address indicated in the Data Sheet. The Client will respond in writing,
or by standard electronic means. Should the Client deem it necessary to amend the
Bid Documents as a result of a clarification, it shall be done following the requisite
procedure. Minutes of the pre-bid meeting will be made part of the RFP document
for clarity.
2.9.2 At any time before the submission of Bid, the Client may amend the Bid Documents
by issuing an addendum in writing or by standard electronic means. The addendum
shall be sent to all Bidders and will be binding on them. Bidders shall acknowledge
receipt of all amendments. To give Bidders reasonable time in which to take an

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amendment into account in their Bids the Client may, if the amendment is
substantial, extend the deadline for the submission of Bids.

2.10 Preparation of Proposal


2.10.1 The Bid, as well as all related correspondence exchanged by the Bidders and the
Client, shall be written in the language (s) specified in the Data Sheet.
2.10.2 Material deficiencies in providing the information required/requested may result in
rejection of a Bid.

2.11 Bid Security


2.11.1 Each Bidder shall furnish a Bid Security in the amount stipulated in the Data Sheet.
2.11.2 The Bid Security shall be in the form of Deposit at Call issued by a Scheduled Bank of
Pakistan in favor of the FA&CAO/Revenue valid for a period 28 days beyond the Bid
Validity date.
2.11.3 Any Bid not accompanied by an acceptable Bid Security shall be rejected by the Client
as non-responsive.
2.11.4 The Bid Securities of unsuccessful Bidders will be returned as promptly as possible,
but not later than 28 days after the expiration of the period of Bid Validity.
2.11.5 The Bid Security of the successful Bidders will be returned when the Bidder has
furnished the required Performance Guarantee and signed the Contract Agreement.
2.11.6 The Bid Security may be forfeited and bid will be rejected:
(a)
(i) if the bidder is issued Letter of Acceptance and he refuses
to start service
(ii) If the bidder withdraws his bid during the period of Bid
validity.
(b) In the case of successful Bidder, if he fails within the specified time
limit to:
(i) Furnish the required Performance Guarantee;
(ii) Or sign the Contract Agreement.

2.12 Performance Guarantee


The successful bidders shall furnish to the Client a Performance Guarantee in the
form and the amount stipulated in the Data Sheet within a period of 10 days after
the receipt of Letter of Acceptance. However, if the bidder deposits performance
guarantees and fails to start work or sign agreement, his performance guarantee
may be forfeited and the bidders may not be allowed to take part in future bidding.

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2.13 Staff and Machinery


2.13.1 The Bidders are required to provide the list / details of Key staff / personnel to be
deployed for this assignment.
2.13.2 The Bidders are required to provide the list / details of machinery /
equipment/gadgets etc.
2.14 Technical Proposal Format and Content
2.14.1 The Technical Proposal shall be prepared keeping in view the required standards as
stipulated in technical evaluation criteria given in “Appendix-C”. The technical
proposal will be submitted under format given in “Appendix-A”.
2.14.2 The Technical Proposal shall not include any financial information. A Technical
Proposal containing financial information may be declared non-responsive.

2.15 Financial Proposal


The Financial Proposal shall be prepared using the attached Standard Forms. It shall
list all costs associated with the assignment.

2.16 Payment of Services Fee


2.16.1 The amount due will be claimed / paid as per the relevant clause of conditions of
contract. All payments will be made in Pak Rupees.
2.16.2 The Client/bidders shall make all payments in Pak Rupees.

2.17 Taxes
The bidders shall be responsible, at all times, for payments, of any/all applicable
taxes and provision of evidence to Pakistan Railways.

2.18 Submission and Receipt of Proposal


2.18.1 The original Bid shall contain no inter-lineation or overwriting, except as necessary to
correct errors made by the Bidders themselves. The person who signed the Bid must
initial such corrections.
2.18.2 An authorized representative of the Bidder shall initial all pages of the original Bid.
The authorization shall be in the form of a written power of attorney accompanying
the Bid or in any other form demonstrating that the representative has been duly
authorized and competent to sign.
2.18.3 The Bids and the number of copies shall be sent to the addresses indicated in the Data
Sheet. All required copies of the Bid are to be made from the original. If there are
discrepancies between the original and the copies, the original governs.
2.18.4 The original and all copies of the Bid shall be placed in a sealed envelope clearly
marked “BID DOCUMENTS”. The envelope should also bear the address and title of
the Assignment. The Client shall not be responsible for misplacement, losing or
premature opening if the outer envelope is not sealed and/or marked as stipulated.
This circumstance may be case for Bid rejection.
2.18.5 The Bids must be sent to the address/addresses indicated in the Data Sheet and
received by the Client not later than the time and the date indicated in the Data
Sheet, or any extension granted thereof. Any Bid received by the Client after the
deadline for submission shall be returned unopened.

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2.19 Procedure for opening of bids


2.19.1 The Client will open the Bids in the presence of Bidders or their authorized
representatives who choose to attend, at the time, date and location stipulated in
the Data Sheet.
2.19.2 The Bidders or their representatives who are present shall sign a register evidencing
their attendance.
2.19.3 The Bidders name, total Bid price, the presence or absence of Bid Security and such
other details as the Client may consider appropriate, will be announced by the Client
at the opening of Bids.
2.19.4 As a first step all bids will be checked in regard to their responsiveness as per
Appendix-B.

2.20 Correction of Errors


Bids determined to be substantially responsive and explicit will be checked by the
Client for any typographical/arithmetic errors. Errors will be corrected by the Client
as follows:
“Where there is a discrepancy between the amounts in figures and in words, the
amount in words shall govern”

2.21 Evaluation of Technical Proposal


The evaluation committee shall evaluate the Technical Proposals based on their
responsiveness to the Terms of Reference, applying the evaluation criteria, sub-
criteria, and point system specified in Evaluation Criteria given in Appendix-C and
each responsive Proposal will be given a technical score. A Proposal shall be rejected
at this stage if it does not respond to important aspects of the RFP, and particularly
the Terms of Reference or if it fails to achieve the minimum technical score indicated
in the Evaluation Criteria.

2.22 Public Opening and evaluation of financial proposals


2.22.1 After the technical evaluation is complete the Client shall notify in writing to Bidders
who have secured the minimum qualifying marks, the date, time and location for
opening the Financial Proposals. Bidders’ attendance at the opening of Financial
Proposals is optional. The opening date shall be set to allow interested Bidders
sufficient time to decide for attending the opening.
2.22.2 Financial Proposals shall be opened publicly in the presence of the bidders’
representatives who choose to attend. The name of the bidders, and the technical
scores of the bidders shall be read aloud. The Financial Proposal of the Bidders who
met the minimum qualifying mark will then be inspected to confirm that they have
remained sealed and unopened. These Financial Proposals shall be then opened,
and the total prices read aloud and recorded.
2.23 Confidentiality
Information relating to evaluation of Proposals and recommendations concerning
awards shall not be disclosed to the Consultants who submitted the Proposals or to
other persons not officially concerned with the process, until the publication of the
award of Agreement. The undue use by any Consultant of confidential information
related to the process may result in the rejection of its Proposal and may be subject

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to the provisions of the Consultant Selection Guidelines relating to fraud and


corruption.

2.24 Notification of Award


2.24.1 Prior to expiration of the period of bid validity prescribed by the Client, the Client will
notify to the successful bidders in writing (“Letter of Acceptance”) that his Bid has
been accepted. This letter shall name the sum which the Bidders will pay to the
Client in consideration of the provision and completion of the Services by the Bidders
as prescribed by the Contract. However, commencement of freight trains operations
will be started after signing of the contract between Pakistan Railways and the
private party.
2.24.2 No Negotiation with the bidders shall be permitted, however, Client may have
clarification meetings to get any item clarified.
2.24.3 The notification of award and its acceptance by the bidders will constitute the
formation of the Contract, binding the Client and the bidders till signing of the formal
Contract Agreement as per standard format at Appendix-E.

2.25 Commencement of Assignment


The Bidders, whose bid is accepted, will be required to commence the assignment
within 30 days, specified in the Letter of Acceptance, failing which the Client shall
forfeit the performance security of the bidders and cancellation of bid/contract.

2.26 Malpractice or Unsatisfactory Performance


If Pakistan Railways has ever declared a Bidders defaulter and/ or blacklisted, his
Bids will be rejected by the Client.

2.27 Default
If a Bidders had any contract with Pakistan Railways and he defaulted in that
contract, his Bid will be rejected by the Pakistan Railways, no matter whether he has
been declared defaulter or not.

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DATA SHEET

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Performance Guarantee
50 Million minimum or 5% maximum of the guaranteed revenue for one year
2.13 whichever is higher in advance within 10 days after issuance of acceptance letter,
in the form of Bank Guarantee valid for 12 months in favor of FA&CAO/Revenue,
Pakistan Railways, Lahore.
The Bidders undertakes to discharge any/all liabilities/ obligations pertaining to tax
(es), duties, Cess, and levies etc. that are or may become applicable due to operation
of law of the land. Pakistan Railways, however shall be competent to withhold/
deduct any amount(s) due under the need of applicable tax (es), accordingly, the
2.18
Bidders hereby, covenants and warrants to discharge his extant duties. Proof of
payment of tax (es) directly payable by the Bidders shall be provided to Pakistan
Railways on regular basis. Failure to comply with the provisions here of shall
constitute a breach of contract.
11.3 Bidders must submit complete Bid.
Address for Submission of Bid:

Chief Marketing Manager,


Pakistan Railway
Headquarter Office, Lahore.
1.4
042-99201789

Proposals must be submitted not later than the following date and time:

On or before 15th June, 2021 not later than 1100 hours.


Date and time of opening of Bids shall be after 30 minutes from the cut-off time for
1.4
submission of bids
Commencement date of the contract will be mentioned in the letter of acceptance.
Pre-proposal conference shall be held as per following schedule:
Pre-proposal conference:
Date: June 5th June, 2021, Time: 1100 Hrs. in committee room no.3, Pakistan
2.9 Railways, Headquarter office, Lahore.

Currency of Agreement

Section-3 The contract period will be valid for a period of two years subject to satisfactory
2.3 performance as defined in Section-I

Note: - Above data sheet will be applicable for each category/group of train mentioned in
Section – 1:

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Section 3: Conditions of the Contract (COC)


3.1 Definitions
Unless the context otherwise requires, the following terms whenever used in this
Contract shall have the following meanings:
(a) “Applicable Law” means the laws and any other instruments having the
force of law in the Islamic Republic of Pakistan, as those may be issued and
in force from time to time;
(b) “Contract” means the Contract signed by the Parties, to which these
Conditions of
Contract are attached, together with all the documents listed in the
Contract;
(c) “Contract Price” means the price to be paid for the performance of the
Services;
(d) “Personnel” and “Staff’ means persons hired by the Bidders and assigned to
the performance of the Services or any part thereof;
(e) “Services” means the work to be performed by the Bidders pursuant to this
Contract;
(f) “Party” means the Client or the Bidders, as the case may be, and “Parties”
means both of them;
3.1.1 Law Governing the Contract
This Contract, its meaning and interpretation and the relation between the Parties
shall be governed by the Applicable Laws of Pakistan.
3.1.2 Language
This Contract has been executed in the English language which shall be the binding
and controlling language for all matters relating to the meaning or interpretation of
this Contract. All the reports and communications shall be in the English language.
3.1.3 Notices
Any notice, request, or consent made pursuant to this contract shall be in writing and
shall be deemed to have been made when delivered in person to an Authorized
Representative of the party to whom the communication is addressed, or sent by
registered mail, or any other established means of communication to such party at
the address of the Bidders /Authorized Representative. A Party may change its
address by giving the other Party notice of such change.
3.1.4 Headings
The headings shall not limit, alter or affect the meaning of this Contract.

3.2 Commencement, Completion, Modification, and Termination of Contract


3.2.1 Commencement of Services
The commencement date of services will be as notified by the Client and accepted
by the Bidders through Letter of Acceptance / Letter of Award.

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3.2.2 Expiry of Contract


Unless terminated earlier pursuant to Sub-Clause 3.2.5 , this Contract shall expire
after completion of two years from the date of commencement when, pursuant to
the provisions hereof, the Services have been completed and the payments of
services performed have been made.
3.2.3 Duration of Contract
Duration of contract will be two (02) years.

3.2.4 Force Majeure


3.2.4.1 Definitions
(a) A “Force Majeure Event” shall mean any event or circumstance or
combination of events or circumstances that is beyond the reasonable
control of a Party and adversely affects the performance by the party of its
obligations under or pursuant to this agreement, provided, however, that
such material and adverse effect could not have been prevented, overcome,
or remedied in whole or in part by the affected party through the exercise
of diligence and reasonable care, it being understood and agreed that
reasonable care includes acts or activities to protect the Railway Equipment
from a casualty event, which are reasonable in light of the likelihood of such
event, the probable effect of such event if it should occur, and the likely
efficacy of the protection measures. “Force Majeure Events” hereunder
shall include each of the following events and circumstances.
(i) Political events that occur inside or directly involve Pakistan (“Pakistan
Political Force Majeure Events”):
(ii) Any act of war (whether declared or undeclared), invasion, armed
conflict or act of foreign enemy, blockade, embargo, revolution, riot,
insurrection, civil commotion, act or campaign of terrorism, or
sabotage;
(b) Strikes, works to rule or go-slows that extend beyond the P.R transportation
operations, are widespread or nationwide, or that are of a political nature e.g. labour
actions directed against Pakistan Railways or its facilities
(C) Accident on the network of Railways which blocks the line for more than 3
hrs. will be treated as force majeure
3.2.4.2 Other Events
Other events beyond the reasonable control of the affected party (“Other Force
Majeure Events”), including but not limited to:
(i) Uncontrollable events, including, but not limited to;
a. Lightening, earthquake, flood, storm; accident;
(ii) Explosion or chemical contamination in which case it shall be a Pakistan
Political Force Majeure Event;
(iii) Epidemic or plague;
(iv) Political Events that occur outside Pakistan and do not directly involve
Pakistan, but affect the parties’ ability to meet obligations under this
Agreement.

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3.2.4.3 Duty to Mitigate


The affected Party shall use all reasonable efforts to mitigate the effect of a Force
Majeure event. Resumption of work will be dealt with in the light of clause 3.6 of
COC.

3.2.5 Termination
3.2.5.1 By the Client
The Client may terminate this Contract, by issuing not less than thirty (30) days
written notice of termination to the Bidder:
(a) If the Bidder does not remedy a failure in the performance of his obligations
under the Contract, within fifteen (15) days, as specified above, after being
notified or within any further period as the Client may have subsequently
approved in writing and his performance security shall be forfeited.
(b) If the Bidder fails to comply with any final decision reached as a result of
arbitration proceedings pursuant to Clause 7 thereof and his performance
security shall be forfeited.
(c) If, as the result of Force Majeure, the Bidder is unable to perform a material
portion of the Services for a period of more than thirty (30) days.
(d) In case of emergency and strategic interests
3.2.5.2 By the Bidder
The Bidder may terminate this Contract, by giving not less than Thirty (30) days
written notice to the Client and to be counted from the date of reception, such
notice to be given after the occurrence of any of the events specified in paragraphs
(a) through (c) of this Sub Clause:
(a) If the Client is in material breach of its obligations pursuant to this Contract and
has not remedied the same within fifteen (15) days following the receipt by the
‘Bidders’ notice specifying such breach; provided that such notice
(i) shall specify the nature of the failure, and
(ii) shall request the Client to remedy such failure within a period not
exceeding fifteen (15) days after receipt of such notice
(b) If the Client fails to comply with any final decision reached as a result of
arbitration proceedings pursuant to Clause-7 thereof.

3.3 Obligations of the Bidder


3.3.1 General
3.3.1.1 Standard of Performance
The Bidder shall perform the Services and carry out his obligations with all due
diligence, efficiency, and economy, in accordance with generally accepted
professional techniques and practices, and shall observe sound management
practices, and employ appropriate advance technology and safe methods. The
Bidder shall always act, in respect of any matter relating to this Contract or to the

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Services, as faithful advisers to the Client, and shall at all times support and
safeguard the Client’s legitimate interests.

3.3.2 Damage to Persons and Property


The Bidder shall indemnify the Client against all losses and claims in respect of:
(a) death of or injury to any person, or
(b) loss of or damage to any property, rolling stock, or container which may arise
out of or in consequence of the rendering the services and the remedying of
any defects therein, and against all claims, proceedings, damages, costs,
charges and expenses whatsoever in respect thereof or in relation thereto
(c) During occurrence of above incidents, operation of business will be kept
intact by the bidders.
3.3.3 Accident or Injury to Workmen
The Client shall not be liable for or in respect of any damages or compensation
payable to any workman or other person in the employment of the Bidder. The
Bidder shall indemnify and keep indemnified the Client against all such damages and
compensation, other than those for which the Client is liable and against all claims,
proceedings, damages, costs, charges, and expenses whatsoever in respect thereof
or in relation thereto.
3.3.4 Compliance with Statutes, Regulations
The Bidder shall conform in all respects, including by the giving of all notices and the
paying of all fees and /or amount / sums payable, with the provisions including but
not limited to the following:
(a) Any National or State Statute, Ordinance, or other Law, or any regulation, or
byelaw of any local or other duly constituted authority in relation to the
execution and completion of the Services and the remedying of any defects
therein, and
(b) The rules and regulations of all public bodies and companies whose property
or rights are affected or may be affected in any way by the Services, and the
Bidders shall keep the Client indemnified against all penalties and liability of
every kind for breach of any such provisions.
3.3.5 Safety Precautions
In order to provide for the safety, health and welfare of’ persons, and for prevention
of damage of any kind, all operations for the purposes of or in connection with the
Contract shall be carried out in compliance with the Safety’ Requirements of the
applicable laws/policies with such modifications thereto as the Client may authorize
or direct and the Bidder shall take or cause to be taken such further measures and
comply with such further requirements as the Client may determine to be
reasonably necessary for such purpose.

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3.4 Bidders Personnel


3.4.1 General
The Bidders shall employ and provide such qualified and experienced Personnel as
are required to carry out the Services including the rake escort and Railway will not
be responsible for the safe custody of cargo.
3.4.2 Description of Personnel
Prior to commencement of the services the Bidder will provide list of Key
staff/personnel to be deployed indicating the name, the title, CNIC number, present
residential address, activities of job description and estimated period of engagement
in the carrying out of the Services.

3.4.3 Removal and/or Replacement of Personnel


If Bidder removes / replaces or considers removing / replacing any personnel due to
his own reasons the Client shall be informed accordingly. The details of new
personnel so employed shall be conveyed to the Client pursuant to Sub Clause 4.2
3.4.4 Employment of Persons in the Service of Client
The Bidder shall not recruit his staff and labor from amongst the persons in the services of
the Client. He will not engage staff from blacklisted firms.

3.5 Obligations of the Client


3.5.1 Access to Land
The Client (PR) shall provide and allow to the Bidder access to all land of which
access is required for the performance of the Services by the Bidder subject to
availability by the concerned Divisional Superintendent. Such charges will be paid
independent of freight charges.

3.6 Payment to the Client


3.6.1 Mode of Billing and Payment:
Bidder will open an FDA for operation of the dedicated trains with Pakistan Railways
as per section-1. It will be responsibility of the bidder to arrange deposit in advance
of one month the freight charges or any other amount as per accepted financial
proposal.
3.6.2 Clients’ entitlement to terminate bidder’s services:
In case the bidder fails to deposit the requisite amount payable to the client as per
agreed schedule the contract shall be terminated forthwith, without any notice
along with forfeiture of the security money.

3.7 Fairness and Good Faith


3.7.1 Good Faith
The Parties undertake to act in good faith with respect to each other’s rights under
this Contract and to adopt all reasonable measures to ensure the realization to the
objectives of this Contract.

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3.7.2 Operation of the Contract


The Parties recognize that it is impractical in this Contract to provide for every
contingency which may arise during the life of the Contract. The Parties hereby agree
that it is their intention that this Contract shall operate fairly as between them, and
without detriment to the interest of either of them. If during the term of this
Contract either Party believes that this Contract is operating unfairly, the Parties will
use their best efforts to agree on such action as may be necessary to remove the
cause or causes of such unfairness. But on failure to agree on any action pursuant to
this Sub-Clause shall give rise to a dispute subject to arbitration in accordance with
Clause 7 hereof.
3.8 Settlement of Disputes
3.8.1 Amicable Settlement
(i) The business and affairs, under the agreement between the Client and the
Bidders shall be monitored by a committee comprising;
• Advisor Business Planning = Chairman

• Director/Legal = Member
• Chief Marketing Manager = Member
• Two representatives of the bidder = Member
(ii) The committee so constituted shall deal with the matters involving disputes
placed before the committee for settlement. It shall settle the dispute
amicably within 15 days failing which the matter shall be dealt with according
to the clause 3.8.2 below. In case of any disagreement, the matter will be
referred to Secretary/Chairman Railways for final settlement.
3.8.2 Arbitration
Any dispute between the Parties as to matters arising pursuant to this bid which
cannot be settled amicably within fifteen days after receipt by one Party of the other
Party’s request for such amicable settlement shall be submitted by either Party for
settlement to CEO/Sr.GM, Pakistan Railways in accordance with the provision of the
Arbitration Act (Act x of 1940) and rules made hereunder and any statutory
modifications thereto whose decision will be final and binding upon both parties to
the agreement. Services under the Bidders shall, if reasonably possible, continue
during the arbitration proceedings.
Both the parties are precluded from approaching any court of law before resorting
to clause 3.8.1 & 3.8.2 and if they do so, such litigation shall be treated as void.

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Section 4: Terms of Reference (TOR)


4.1 Scope of Outsourcing of Freight Trains
4.1.1 There is an enormous demand for moving Freight and Cargo from the ports and
other freight originating points to upcountry destinations and vice versa. Millions of
tons of liquid and dry cargo is waiting to be lifted through an efficient and cost
effective rail network. This potential demand can be met by involving the private
sector in freight train operations; wherein Pakistan Railways would ensure to
provide freight wagons on dedicated basis for each freight train, along with loading
and unloading facilities to the private party and other support as may be required
by the private sector in providing its role for freight trains business. Private Party
would provide the volume of freight / cargo through commercial clients for which
private sector would ensure to provide guaranteed volume in tons at commercial
rates, will go into commercial agreements on lease basis with clients to offer them
freight delivery services. These agreements will be signed on the basis of the counter
assurances provided by Pakistan Railways to the private sector in terms of dedicated
freight trains and committed trips per month and other relevant assurances.
4.1.2 The Ministry of Railways is desirous of inducting private sector companies to facilitate
the efficient and cost effective movement of freight traffic on lease basis on PR’s
robust infrastructure. PR wishes to enhance freight traffic in the country through
multidimensional approaches. Through this arrangement private sector will be
permitted to operate freight trains on commercial outsourcing basis to meet the
growing demand for movement of block trains in an efficient and cost effective
manner.
4.1.3 Main purpose of this document is to find the parties having requisite experience,
personnel, plant & machinery and financial capabilities to provide a multimodal
approach to try and provide freight train services to the end customer through a
coordinated approach with the private party to meet the rail freight traffic demand
in the country.
4.1.4 Ministry of Railways has an objective to transform Pakistan Railways into
commercially viable, self-sustaining organization through focus on transportation of
freight, including but not limited to, coal and other freight traffic, from Karachi to
multiple destinations in upcountry.
4.1.5 At present Pakistan Railways has enough locomotives and freight wagons available
for running the freight trains in the country. Pakistan Railways intends to seek
services from Private sector who can provide assured traffic as described in Section-
1.
4.1.6 To achieve this, MOR has mandated Pakistan Railways to concentrate on freight
transportation, remove bottlenecks, deficiencies, low reliability, efficiency
challenges on Pakistan Railways as compared with road traffic and improve cargo
handling, loading and unloading, initiate attracting the private sector In the shape of
forming strategic alliances and evaluate possible collaboration options with Private
Sector so that Pakistan Railways may be able to raise its share of freight traffic by
rail on national level beyond the existing figures.

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4.1.7 To achieve this target Pakistan Railways intends to call for the services of reputed
private companies having managerial and financial capability to provide the
requisite services.
4.1.8 Validity of the contract will be for 2 years.
4.2 General Responsibilities
4.2.1 Responsibility of Pakistan Railway (PR):

(a) PR, will guarantee to provide 34 fit High capacity wagon of ZBKC, ZBFC, ZBC
AND 40 fit ZBKC (30 8-Wheeler and/or 60 4-wheeler fit freight conventional
wagons for conventional trains) for each commodity freight train as required
by the bidders and operate the trains as per contract.

(b) Private parties will get dedicated wagons from the signing of the agreement.

(c) PR would provide minimum 6 hours’ free time for each loading and
unloading of the trains to the bidders. For covered wagons 8 hours loading
time will be given. Beyond the free time demurrage charges shall be
applicable as per rules of PR.

(d) In case of any shortfall in the provision of wagons will be refunded to the
party based on the offered rate per wagon.

4.2.2 Responsibility of Bidders (Private Contractor):


(a) The bidders would provide assured traffic on monthly basis to Pakistan
Railways.
(b) The bidders would deposit advance freight in FDA (Freight Deposit Account)
in the shape of Pay Order drawn in the name of FA & CAO/Revenue, Pakistan
Railways, which will be operated by Pakistan Railways and shall be debited
on every trip before departure of train.
(c) This FDA would be recouped in such a way that advance freight equal to one
month always remain in the account.
(d) PR will issue freight invoice (Railway Receipt) per wagon per trip, which may
include LHC/Shunting charges, applicable GST & other taxes over and above
applicable freight charges to be paid by the bidder.
(e) The bidders would pay annual land lease charges as per PR existing policy,
Royalty charges on bonded cargo, liquidated charges and any other charges,
if applicable.
(f) The successful bidder is bound to provide any documents, information and
data as and when demanded by the client (PR).
(g) The successful bidder will ensure loading up to carrying capacity of the
wagon i.e. 60 tons for ZBKC, ZBKH, ZBFC, ZBC, ZBTO, MBFR/C; 22 tons for 4-
wheeler and 44 tons for 8-wheeler conventional stock.

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4.2.3 Service Charges payable to Pakistan Railways:


(a) Freight charges levied per freight train including LHC/LMC/Shunting charges
would be paid by the bidders as per the rates offered by bidders for type of
stock provided to it.
(b) In addition to railways freight payable to FA&CAO/Revenue, for each
commodity per wagon the applicable taxes will also be paid by the successful
bidder.
(c) The bidder would ensure full capacity load of the rake provided within
prescribed time by Pakistan Railways.
(d) The bidder would ensure use of all state of the art equipment, machinery
tools & plant for dealing the loading/unloading & stacking if necessary of the
freight.
(e) During handling of freight through contractor, any loss or damage to
equipment/rolling stock or injury or causality to any person of Pakistan
Railways during handling of freight will be solely borne by contractor.
(f) It will be responsibility of bidders to make efforts to attract the business for
the running of freight trains.

(g) If any overloading is detected, the private party will be bound to pay 10
times freight of the loaded wagon as penalty beside detachment of the
subject wagon.

(h) The weighment of cargo will be done by the party at its own cost.

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Request for Proposal for Leasing Out Freight Trains/Wagons

Section 5: Appendices

Appendix – A. Technical Proposal Submission Form

Appendix – B Criteria for responsiveness check

Appendix – C Technical Evaluation Criteria

Appendix – D Financial Proposal Submission Form

Appendix – E Standard Format of Contract Agreement

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Request for Proposal for Leasing Out Freight Trains/Wagons

Appendix-A

TECHNICAL PROPOSAL SUBMISSION FORM


(Please submit on Company’s Letterhead)

To: The CMM,


Pakistan Railways HQ Lahore.

Subject: REQUEST FOR PROPOSAL (RFP) FOR LEASING OUT


COMMERCIAL MANAGEMENT OF FREIGHT TRAINS
PER DAY.

Dear Sir,
We, the undersigned, offer to provide the transportation services for the subject
assignment, in accordance with your Request for Proposal. We are hereby submitting our
Proposal, which includes Technical Proposal, and a Financial Proposal sealed under separate
envelopes.
We are submitting our Proposal in association with: _______________________
[Insert a list with full name and address of each associated Consultant]
We hereby declare that all the information and statements made in this Proposal
are true and accept that any misinterpretation contained in it may lead to our
disqualification.
We hereby undertake, subject to acceptance of our proposal, to initiate the
transportation services related to the assignment not later than the date indicated in the
Data Sheet of the proposal.
We understand you are not bound to accept any Proposal you receive. We remain,

Yours sincerely,

Authorized Signature [In full and initials]: _______________________________

Name and Title of Signatory: __________________________________________

Name of Firm:______________________________________________________

Address:___________________________________________________________

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Request for Proposal for Leasing Out Freight Trains/Wagons

Appendix-B

CRITERIA FOR RESPONSIVENESS CHECK

Sr. No CRITERION

1. Bid is properly signed by an authorized person

2. Acceptable and proper Bid Security attached or not

3. Bid Validity according to the Tender Document or not

4. Information required through Forms General-1 and General -2 provided or not

5. Technical Proposal and Financial Proposal properly filled and duly signed on the
prescribed format or not
6. Is the offer unconditional?

7. Tender Conditions observed / agreed or otherwise?

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Request for Proposal for Leasing Out Freight Trains/Wagons

Appendix-C
CRITERIA FOR EVALUATION OF TECHNICAL PROPOSAL

1. GENERAL:
After checking the responsiveness (Applicants Basic Eligibility) of the bidders as per Appendix-
B, the technical proposal of the responsive Bidders shall be evaluated for the Post-qualification
(final selection) of bidders for opening of financial bid as per criteria given in succeeding paras
regarding Relevant Experience, Personnel Capabilities, Equipment Capabilities and Financial
Soundness.
1.1. Weightage/Marks:
The weightage/distribution of the marks shall be as given below:
S. No. Categories Marks
(i) Business relationship with Railways 5
(ii) Experience 20
(iii) Machinery, Plant and Equipment 15
(iv) Financial Soundness 20
Note: The overall minimum qualifying score shall be 70% marks to qualify. A detailed post-
qualification criterion is given hereunder:

2. EVALUATION CRITERIA:
2.1. Business relationship with Railways:

Description Max. Marks


FDA with Railways
Bidders maintaining FDA account with Railways
5

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Request for Proposal for Leasing Out Freight Trains/Wagons

2.2 Experience:
2.2.1 Experience with Railways
Bidders having relevant experience of commercial
10
transportation operations with Railways
Above 1 year 10
2.2.2 Experience in Logistics Industry

Description Max. Marks


The bidders should have relevant experience of 10
commercial transportation operations:
Experience above 1 year 10

2.3 Machinery, Plants and Equipment:


2.3.1 Number of Shovels/Stackers
Scoring for Machinery, Plants and Equipment for handling container/cargo of the firm or joint
venture shall be evaluated as per following criteria:
Description Max. Marks
Cargo Loading equipment including Top loader/ 10
Reach Stacker or trucks for lifting of Cargo for
freight trains (To ensure that the bidders is an
experienced entity with some relevant
equipment’s also)
Bidders should have 100% ownership or leased of
the equipment’s in its name for which
documentary proof will be submitted.
In all other case, the bidders will provide
documentary evidence of owned or lease
equipment
5 or more stackers /shovels/Trucks 10

4 stackers/shovels/Trucks 6

3 stackers/shovels/Trucks 4

Less than 3 stackers/shovels/Trucks 1

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Request for Proposal for Leasing Out Freight Trains/Wagons

2.3.2 Number of terminals owned?


Description Max. Marks

Number of terminals owned 05

Two or more 05

At least 1 03

Note: Undertaking on stamp paper (in original) of ownership of Machinery, Plants and
equipment is mandatory for submission.

2.4 Financial Capabilities: (Turnover PKR 500m per annum or equivalent amount in foreign
currency)
Marking for financial position of the firm or joint venture shall be evaluated on the basis of
following criteria. Financial strength of the bidders should show at least 1-year value in terms
of balance sheet size of the performance value of this contract.
Sr.
Description Maximum marks
No.
i) Turnover per financial year:

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Request for Proposal for Leasing Out Freight Trains/Wagons

Appendix-D
FINANCIAL PROPOSAL SUBMISSION FORM MULTIPLE TRAIN OPTIONS

To,

The CMM

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Request for Proposal for Leasing Out Freight Trains/Wagons

Conventional
Wagon 30
Covered(4- 8-
1320
wheeler and 8- wheeler
Ton
wheeler) Or 60
4-
wheeler
MBFR 22 wagons
1320 Ton

Conventional 30
wagons open 8-wheeler
1320 Ton
top (4-wheeler or 60 4-
and 8-wheeler) wheeler
Conventional 30
tank wagons (4- 8-wheeler
1320 Ton
wheeler and 8- or 60 4-
wheeler) wheeler
Conventional 30
container 8-wheeler
wagons (4- or 60 4- 1320 Ton
wheeler and 8- wheeler
wheeler)

Note:
1. Rate to be quoted on the basis of Per wagon per trip basis for each commodity train
only.

2. Full train load consisting of minimum 34 HC freight wagons (ZBKC, ZBFC, ZBC and
ZBTO) 40 ZBKH,30 8-Wheeler and 60 4-wheeler fit Conventional wagons
3. Separate Bids are submitted for separate commodity trains
4. Our Financial Proposal shall be binding upon us subject to the modifications resulting
from Agreement, up to expiry of the validity period of the Proposal.

Yours Sincerely

Authorized signatures (in full and initials)

Name and Title of Signatory

Name of Firm

Address

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Request for Proposal for Leasing Out Freight Trains/Wagons

Appendix-E
STANDARD FORMAT OF CONTRACT AGREEMENT FORM OF
CONTRACT AGREEMENT

THIS CONTRACT AGREEMENT for Handling of Freight (hereinafter called the "Agreement")
made on the _______ day of (month) 20_____ between Chief Marketing Manager, Pakistan
Railway, Lahore (hereafter called the "Client") of the one part and (hereafter called the
"Bidders") of the other part, for a period of ONE (01) years extendable for another year
subject to satisfactory performance.
NOW this Agreement witnessed as follows:
In this Agreement, words and expressions shall have the same meanings as are respectively
assigned to them in the “Conditions of Contract” (Copy enclosed and forms integral part of
the contract)
BIDDER’s OBLIGATIONS

1) The successful bidder will ensure loading of minimum number of wagons per train i.e. 34 ZBKC
/ 40 ZBKH (coal wagons with bottom discharge subject to facility available with the successful
bidder) with loading of 60 tons’ cargo per wagon and maximum load of 2100 tons for ZBKC and
2400 tons for ZBKH per coal train.

2) 68 TEUs/34 FEUs per container train(ZBFC) with loading of 60 tons’ cargo per wagon a
maximum load of 2100 tons,34 ZBC for loose cargo and 34 ZBTOs for liquid cargo subject to
maximum weight condition of 60 tons for each wagon and maximum load of 2100 tons per
train. These weight conditions are for payload and does not contain weight of the wagon.

3) For conventional stock the successful bidder will ensure loading of minimum number of
wagons/tons per train i.e. 60 four-wheeler or 30 8-wheeler per train subject to maximum
weight condition of 22 tons per 4-wheeled wagon and 44 tons per 8-wheeled wagons. The
conventional stock is available for container, coal, loose cargo and liquid cargo.

4) The bidders would provide assured traffic on monthly basis based on committed trips per
month for each destination as defined in section-1 of the bid documents.

5) The bidder will ensure that loading is done up to the marked carrying capacity of 22 Ton for
4-wheeler and 44 Ton for 8-wheeler wagon as described in clause 1,2 & 3 above. No
overloading will be allowed.

6) The weighment of cargo will be done at the cost of the bidder.

7) The bidders would deposit advance freight in FDA (Freight Deposit Account) equivalent to one
month of the bid amount on the first of every month in the shape of Pay Order drawn in the

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Request for Proposal for Leasing Out Freight Trains/Wagons

name of FA & CAO/Revenue, Pakistan Railways, which will be operated by PR.

8) This FDA would be recouped in such a way that advance freight equal to one month will remain
in the account.

9) PR would serve a freight invoice/Railway Receipt (RR) for every trip, which may include
applicable GST & other taxes over and above applicable freight charges to be paid by the
bidder.

10) The bidders would pay annual land lease charges as per PR existing policy, royalty charges on
bonded cargo, liquidated charges and any other charges.

11) The successful bidder is bound to provide any documents, information and data as and when
demanded by the client.

12) The payment will be made on the basis of guaranteed revenue per annum and will be debited
from the FDA of the successful bidder on every trip.
13) The successful bidder will be bound to load after placement at loading point and unload after
placement at unloading point within 6 hours. If delay is caused by the party demurrage will be
charged as per rules.

14) Since the parties will be allocated rolling stock on dedicated basis, if they fail to load the
wagons for a continuous period of 24 hours after loading time then the freight will be charged
at the offered rate irrespective of the fact that party is able to load or not.
15) The successful bidder will be bound to Unload after placement at unloading point within 6
hours. If delay is caused by the party demurrage will be charged as per rules of Pakistan
Railways.
16) Since the parties will be allocated rolling stock on dedicated basis, if they fail to reload the
wagons the stock will be considered as released after 6 hours unless the party gives its intent
to reload the wagons. In case of detention to the stock demurrage will be charged.
17) Private parties will provide guaranteed revenue for PR on per wagon per trip basis.
18) At no time the wagons will be allowed to be loaded and dispatched unless booking of subject
wagons has been made by the party

19) Standard of Performance

a. The Bidder shall perform the Services and carry out his obligations with all due
diligence, efficiency, and economy, in accordance with generally accepted professional
techniques and practices, and shall observe sound management practices, and employ
appropriate advance technology and safe methods. The Bidder shall always act, in

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Request for Proposal for Leasing Out Freight Trains/Wagons

respect of any matter relating to this Contract or to the Services, as faithful advisers to
the Client, and shall at all times support and safeguard the Client’s legitimate interests.

b. The bidder shall arrange loading/unloading and security of the consignment at his own
cost

c. The bidder shall ensure adequate environmental safety measures as required for
ensuring environmental protection specially in case of coal.

d. Private party’s performance will be monitored initially after the signing of the contract
for three months and thereafter if the performance is not found satisfactory the
contract will be rescinded and the performance guarantee will be forfeited.

20) Damage to Persons and Property

The Bidder shall indemnify the Client against all losses and claims in respect of:

a. death of or injury to any person, or

b. loss of or damage to any property, rolling stock, or container which may arise out of
or in consequence of the rendering the services and the remedying of any defects
therein, and against all claims, proceedings, damages, costs, charges and expenses
whatsoever in respect thereof or in relation thereto

c. During occurrence of above incidents, operation of business will be kept intact by the
bidders.

21) Accident or Injury to Workmen

The Client shall not be liable for or in respect of any damages or compensation payable to any
workman or other person in the employment of the Bidder. The Bidder shall indemnify and
keep indemnified the Client against all such damages and compensation, other than those for
which the Client is liable and against all claims, proceedings, damages, costs, charges, and
expenses whatsoever in respect thereof or in relation thereto.

22) Compliance with Statutes, Regulations

The Bidder shall conform in all respects, including by the giving of all notices and the paying of
all fees and /or amount / sums payable, with the provisions including but not limited to the
following:

a. any National or State Statute, Ordinance, or other Law, or any regulation, or bye-law
of any local or other duly constituted authority in relation to the execution and

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Request for Proposal for Leasing Out Freight Trains/Wagons

completion of the Services and the remedying of any defects therein, and

b. the rules and regulations of all public bodies and companies whose property or rights
are affected or may be affected in any way by the Services, and the Bidders shall keep
the Client indemnified against all penalties and liability of every kind for breach of any
such provisions.

23) Safety Precautions

In order to provide for the safety, health and welfare of’ persons, and for prevention of damage of
any kind, all operations for the purposes of or in connection with the Contract shall be carried out
in compliance with the Safety’ Requirements of the applicable laws/policies with such
modifications thereto as the Client may authorize or direct and the Bidder shall take or cause to
be taken such further measures and comply with such further requirements as the Client may
determine to be reasonably necessary for such purpose.

24) BIDDERS PERSONNEL

a. General

i. The Bidders shall employ and provide such qualified and experienced
Personnel as are required to carry out the Services including rake escorts and
PR will not be responsible for safe custody of the cargo.

b. Description of Personnel

i. Prior to commencement of the services the Bidder will provide list of Key
staff/personnel to be deployed indicating the name, the title, CNIC number,
present residential address, activities of job description and estimated period
of engagement in the carrying out of the Services.

c. Removal and/or Replacement of Personnel

i. If Bidder removes / replaces or considers removing / replacing any personnel


due to his own reasons the Client shall be informed accordingly. The details of
new personnel so employed shall be conveyed to the Client.

d. Employment of Persons in the Service of Client

25) The Bidder shall not recruit his staff and labor from amongst the persons in the services of the
Client. He will not engage staff from blacklisted firms.

26) Booking Charges:

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Request for Proposal for Leasing Out Freight Trains/Wagons

a. Freight charges levied would be paid by the bidders as per the rates offered by bidders

b. In addition to railways freight payable to FA&CAO/Revenue, for each commodity per


train, the bidders shall pay withholding tax for each trip if applicable

27) The bidder would ensure full capacity load of the rake provided within prescribed time of 6
hours failing which demurrage will be charged.

28) The bidder will pay to Pakistan Railways any charges that are incurred on the extra shunting
caused on account of overloading at the rates of LHC.

29) The bidder would ensure use of all state of the art equipment, machinery tools & plant for
dealing the loading/unloading & stacking if necessary of the freight.

30) During handling of freight through contractor, any loss or damage to equipment/rolling stock
or injury or causality to any person of PR during handling of freight will be solely borne by
contractor.

31) It will be responsibility of bidders to make efforts to attract the business for the running of
freight trains.

PAKISTAN RAILWAYS OBLIGATIONS

1) Pakistan Railways will offer dedicated freight wagons.


2) If PR fail to provide designated wagons on any trip during the contract period, then refund
for such short supply of wagons will be made and the party will be compensated. The
modality will be decided in the pre-bid conference.

3) Access to Land

a. Pakistan Railways shall provide and allow to the Bidder access to all land of which
access is required for the performance of the Services by the Bidders subject to
availability by the concerned Divisional Superintendent. Such charges will be paid
independent of main charges as per policy of PR for unloading during the contract
period. However, loading will be made by the parties on goods on ground basis i.e.,
the party will be allowed to stack the commodity for maximum of 2 train loads during
any time.

4) Pakistan Railways (PR), will guarantee to provide dedicated freight wagons for each commodity
freight train as required by the bidders and operate the trains as per schedule between PR and
the Private parties.

5) PR would provide minimum 6 hours’ free time for each loading and unloading of the trains to

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Request for Proposal for Leasing Out Freight Trains/Wagons

the bidders. Beyond the free time demurrage charges shall be applicable as per extant rules
of PR.
The following documents after incorporating agenda, if any, shall be deemed to form and be
read and construed as part of this Agreement, viz:

(a) The Contract Agreement;


(b) The Letter of Acceptance;
(c) The complete Financial & Technical Proposal;
(d) General Information;
(e) Conditions of Contract;
(f) Terms of Reference;
(g) The complete Appendices to Bid
(h) ________________________________ (any other)

In consideration of the payments to be made by the Bidder to the Client, the Bidder hereby
covenants that he will abide by all the conditions of the contract and terms of reference as
covered in bid documents.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on
the day, month and year written in accordance with their respective laws.

Signature of the Bidders Signature of the Client


(Seal) (Seal)

Signed, Sealed and Delivered in the presence of

Witness: Witness:

____________________ ______________________

(Name, Title and Address) (Name, Title and Address)

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