infonalysis - karachi chamber of commerce & industry€¦ · karachi traffic chaos – jamming...

Product of: KCCI Research & Development Departmenti

INFONALYSISAugust 2017

Product of: KCCI Research & Development Departmentii

Executive Summary

Massive traffic jams on the roads have become a common feature of Karachi while the situation isgetting worse day by day. It has turned into an alarming situation which if not handled on prioritybasis would soon turn in to a deadlock severely disrupting the economic activities in the city. Manytimes it gets impossible for even the ambulances to reach hospital in time. Where increase invehicles is one aspect; the fearless violation of traffic rules, amateurish driving, absence of civicsense and debilitated infrastructures are other major reasons that make commuting an arduous andnerve wracking experience. While excessive emissions from unfit vehicles and extensive traffic jamsaccompanied by unrestrained use of horns also add to environmental pollution, pose threat to thehealth of the citizens and reduce the productivity of the workers.

Currently there are more than 4Mn registered vehicles on Karachi roads. The mushroom growth ofvehicles is also a result of failure of the government in providing sufficient low cost public transportfacilities. Even though there is considerable demand, the private sector is reluctant to launch newbus services in Karachi. Previously, the foremost reason was that of protection as buses were usedto be damaged or even burnt in rampages. As law and order situation has improved considerably,now the financial viability and constraints have taken the fore seats.

Although the launch of app-based taxi services in Karachi have created a major impact on the trafficin the form of a significant addition of private cars with relatively better vehicle condition, the trafficon the road continued to swell as more and more cars hit the roads. This shift necessitates majorimprovement in road infrastructure ideally with seamless roads, more overhead bridges andunderpasses to accommodate this traffic bulge.

On the other hand, large number of pushcarts are also seen being dragged on the roads or parkedin a disorderly manner, many times occupying even one-third of the road. There is absolutely nocode of conduct for them and often given full liberty by the police officials in return ofpredetermined daily or weekly under-the-table payments which also cause to disrupt the smoothtraffic flow.

Many issues of traffic are effectively controllable by increasing awareness and enforcement of law.There is need to completely overhaul the entire traffic policing system in order to improve trafficflow and this has to be done from the grass root level. The first step in the right direction will be toimmediately disallow people from driving without a license, followed by a massive Public AwarenessCampaigns at all levels and proper training not only to the public but also to traffic police officers sothat they could become capable enough to efficiently control traffic and strictly deal with violatorsof traffic rules. Strict penalties should also be imposed on persons who damage or cause to damagethe public infrastructure including roads so much so that they should be made to bear the cost of

Product of: KCCI Research & Development Departmentiii

the repair. Schools can be a very effective medium to spread awareness as when the children areprovided with know-how of traffic rules and their civic responsibilities, they are more likely to followthem in their lives and enforcement of law would be much easier.

To resolve the issue of dearth of parking space, a parking plaza was inaugurated in July 2009 inSaddar area however, it could not be utilized and continued to remain deserted. It is still unclear asto why this apparently very viable project could not be put to use. A relatively new technology ofSmart Rotary parking has been adopted in many different countries and even in Lahore toaccommodate large number of vehicles in a very small parking space. This technology can also beadopted in Karachi at congested and commercial areas to handle the issue of shortage of parkingarea.

Lack of infrastructure maintenance is among the major reasons for the traffic jams. The repair andmaintenance of roads should be an ongoing process and promptly addressed within 24 hours of thedamage throughout Karachi to maintain smooth flow of traffic as well as reduce risk of accidentsand to save precious lives. In fact, there should be a pavement maintenance policy to keep roadsand streets from falling apart. There should be sufficient budget allocation available for repair andmaintenance, dedicated department and workforce exclusively for maintenance of infrastructureon continuous basis, maximum response time limitations and methods to evaluate performance,procedures to receive complaints and conduct surveys etc. It is recommended also because thecost of repairing a road in abysmal condition is typically ten times higher than maintaining a streetin fair or good condition.

The growing traffic in Karachi is calling for developing and upgrading the existing transportinfrastructure particularly the KCR on priority basis as local circular railways work as a backbone oftransport system in all the mega cities of major economies with Karachi being an exception.Moreover, modern construction methods and capability of promptly repairing the wear and tear ofinfrastructure also need to be instituted in Karachi. While the country is anticipating a fast pacedeconomic growth in the wake of China Pakistan Economic Corridor (CPEC) project, it becomes evenmore crucial for this mega port city of Karachi to improve its infrastructure ahead of the anticipatedeconomic boom to avail maximum opportunities arising therefrom.

Product of: KCCI Research & Development Departmentiv

TABLE OF CONTENTSExecutive Summary.................................................................................................................... ii

Traffic in Karachi – a challenge for all .........................................................................................1

Mushroom growth of vehicles in Karachi....................................................................................2

Shortage of Public Transport ......................................................................................................2

Rickshaws as an alternate to public buses .....................................................................................................3

Private sector shy to invest in Bus services....................................................................................................4

Uber and Careem Phenomena.......................................................................................................................4

Pushcarts contribute much to traffic woes..................................................................................5

Weak law enforcement and awareness ......................................................................................5

Massive awareness campaigns needed .........................................................................................................5

Unlicensed amateur drivers – a serious risk ..................................................................................................6

Ineffectiveness of Traffic Signals.................................................................................................7

Demand Response System – as a solution to manage traffic ........................................................................8

Technology as a solution to control traffic ..................................................................................8

Traffic Violation Evidence System (TVES).......................................................................................................8

Intelligent Traffic Control System using RFIDs ...............................................................................................9

Dearth of Parking space ...........................................................................................................10

Saddar Parking Plaza grossly underutilized..................................................................................................10

Smart Rotary parking – a new technology ...................................................................................................10

Transport sector development way too slow ............................................................................11

Repair is 10 times costlier than maintenance ..............................................................................................13

Karachi Circular Railway – critical for traffic management ..........................................................................14

Karachi Metrobus Service ............................................................................................................................17

Lyari Expressway ..........................................................................................................................................18

Northern and Southern Bypasses ................................................................................................................19

Efficient Traffic indispensable for economic growth..................................................................20

KARACHI TRAFFIC CHAOS – Jamming the wheels of the Economy

Product of: KCCI Research & Development Department1

As the cities grow, the requirement of civic facilities also increase requiringcontinuous development, technological advancement and efficientmanagement. Karachi city is among the fastest growing mega port cities withvery high rate of urbanization where the need of transport infrastructure andservices is growing rapidly. It is also one of the oldest cities of the world dueto which the old city areas do not have much provisions available to managethe rising traffic making it an even more challenging job for the authorities.This report tries to analyze the traffic situation in Karachi; how much it affectsthe lives of its citizens as well as its impact on commercial activities. Itrecommends various measures to tackle the issue and also includes the statusof transport sector projects which are critical to ease off the problems ofcommuting.

Traffic in Karachi – a challenge for all

Massive traffic jams on the roads have become a common feature of Karachi.Many times it becomes impossible for even the ambulances carrying seriouspatients to reach hospital in time. While increase in vehicles is one aspect, thefearless violation of traffic rules, amateurish driving, absence of civic sense anddebilitated infrastructures are other major reasons that make commuting anarduous and nerve wracking experience. While excessive emissions from unfitvehicles and due to extensive traffic jams accompanied by unrestrained use ofhorns also add to environmental pollution, pose threat to the health of thecitizens and reduce the productivity of the workers at work.

When it is raining in Karachi, the traffic situation gets further worse for whichthe public is more to blame. According to a statement by the ChairmanBusinessmen Group (BMG) and Former President Karachi Chamber ofCommerce and Industry (KCCI) Siraj Kassam Teli, around 60% of the trafficjams, particularly after rains, are caused by the public themselves. Whenevera commuter sees some standstill rainwater on any road or underpass, he orshe fearlessly violates the one-way traffic rule, which encourages dozens ofothers to follow suit. Although these commuters regularly use these roadsevery day and are well aware that no potholes are present on that particularroad yet they prefer to immediately make a U-turn and violate one-way trafficrule. Consequently, severe traffic jams occur where people remain stuck upfor hours.

He believes that failure to deal with encroachments, timely unclog rainwaterand other Nullahs, negligence to city’s dilapidated sewerage network and

Fearless violation of trafficrules, amateurish driving,absence of civic sense anddebilitated infrastructuresare among major reasonsthat make commuting anarduous and nervewracking experience.

The number of vehiclesregistered in Karachi hasincreased by 1.13Mn or37% since 2013 to 4Mn.



unavailability of traffic police officers and other municipal staff at importantspots to deal with different situations are responsible for the traffic mess.

Mushroom growth of vehicles in Karachi

Currently there are more than 4Mn registered vehicles on Karachi roads. Thenumber of vehicles registered in Karachi has increased by 1.13Mn or 38% since2013 with rickshaws rising sharply by 76% to 229,826, motorcycles by 50% towhopping 2.34Mn and private vehicles by 18% to 1.28Mn in 2016. Thismassive surge in rickshaws and motorcycles have contributed a great deal inincreasing the traffic chaos since these vehicles run at a very slow speed,remain on the move almost the whole day and are often wrongly parked, attimes covering up to three lanes at the gates of public places and crowdedbuildings for their own convenience or in the bid to grab more passengers.

Total number of Vehicles REGISTERED / ON ROAD in Karachi

Types ofvehicles 2013 2014 2015 2016 Growth

2014Growth

2015Growth

2016Cumulative2013-2016

Minibus 16,152 16,834 16,542 16,623 4.2% -1.7% 0.5% 2.9%Buses 6,361 6,449 6,393 6,696 1.4% -0.9% 4.7% 5.3%Mini Truck 13,983 14,468 15,802 16,655 3.5% 9.2% 5.4% 19.1%Truck 16,572 17,145 18,650 20,325 3.5% 8.8% 9.0% 22.6%Van/Pickup 118,479 119,564 133,510 155,374 0.9% 11.7% 16.4% 31.1%Taxi 47,107 47,016 46,923 46,923 -0.2% -0.2% 0.0% -0.4%Rickshaw 130,340 153,996 199,165 229,826 18.1% 29.3% 15.4% 76.3%Tanker 3,027 3,069 3,156 3,337 1.4% 2.8% 5.7% 10.2%PVT Vehicles 1,079,443 1,126,486 1,181,648 1,275,317 4.4% 4.9% 7.9% 18.1%Motorcycles 1,560,674 1,759,852 1,976,252 2,344,976 12.8% 12.3% 18.7% 50.3%Others 9,400 10,413 12,849 14,660 10.8% 23.4% 14.1% 56.0%Total 3,001,538 3,275,292 3,610,890 4,130,712 9.1% 10.2% 14.4% 37.6%

Source: Transport & Communication, KDA

Shortage of Public Transport

The mushroom growth of vehicles is also a result of failure of the governmentin providing sufficient low cost public transport facilities. District RegionalTransport Authority (DRTA) of Karachi has issued 11,488 route permits forpublic transport (5,929 minibuses, 5,297 buses and 262 coaches & UTS1) whichtranslates into just 0.46 per 1000 persons in Karachi which is very low

1 http://www.sindh.gov.pk/dpt/Transport/route.html

The mushroom growth ofvehicles is also a result offailure of the governmentin providing sufficient lowcost public transportfacilities.



particularly in the absence of any rail transport system as an alternate.According to the President of Transport Ittehad - Mr. Irshad Bukhari, totalbuses, minibuses, coaches and contract carriages actually trolling on roads ofKarachi are not more than 9,500 and at least 20,000 more buses are neededto fulfill the requirement of public transport in the city.

Moreover, the buses now remain overcrowded risking the lives of people andarrive with significant delays of almost 15-20 minutes which were onceavailable with lag of just 2-3 minutes some ten years back. They also disruptstraffic flow by abruptly pausing anywhere to pick and drop passengers in theabsence of proper low enforcement as well as due to non-availability of properbus stops.

Rickshaws as an alternate to public busesA few years ago, Qingqi Rickshaws started running on the roads chargingnominal PKR 10 for short distances. However, these motorcycle convertedvehicles were illegal and unsafe which were later banned by the SupremeCourt of Pakistan. Subsequently, many normal 3 seat rickshaws were modifiedto 5-12 seating capacity to replace these Qingqis. These rickshaws usuallycharge PKR 15-20 for short routes but on long distances they reportedly chargeup to PKR 60 per passenger. Although they provide convenience andaffordability on shorter routes, they are not an ideal solution to fill the gap ofshortage of public transport as they cause further traffic congestion beingslow, unregulated and disorderly and they are not feasible for longer routes.

Minibus0%

Buses0%

Mini Truck0%

Truck1%

Van/Pickup4%

Taxi1%

Rickshaw6%Tanker

0%PVT Vehicles31%

Motor Cycles57%

Others0%

Share of Vehicles Registered in Karachi

Source: Transport & Communication, KDA; KCCI Research

Transporters believe thatrunning a bus service is ahigh risk and a hugeinvestment business andwith high fuel cost,expensive spare parts andadditional bribesdemanded by Police alongwith low fares, it isunfeasible.



Private sector shy to invest in Bus servicesEven though there is considerable demand, the private sector is reluctant tolaunch new bus services in Karachi. Previously, the foremost reason was thatof protection as buses were used to be damaged or even burnt in rampagesand since these buses were seldom insured, transporters used to sufferintense losses. As law and order situation has improved considerably now, thefinancial viability and constraints have taken the fore seats. Transportersbelieve that running a bus service is a high risk and a huge investment businessand with high fuel cost, expensive spare parts and additional bribes demandedby Police along with low fares, it becomes unfeasible to undertake this project.

According to the Transport Minister of Sindh Syed Nasir Hussain, Karachi needsat least 8,000 more buses. In March 2017, Sindh Chief Minister Murad Ali Shahdecided to extend PKR 2Bn subsidy to transporters to launch a fleet of 600vehicles with debt to equity ratio of 70:30 to meet the growing requirementof quality passenger buses in the city. The transporters’ equity was supposedto be 15% and the Sindh government had consented to contribute a similaramount in the shape of interest-free loans, repayable by the transporterswithin a year of the completion of the loan to the Sindh Modaraba Limited.The government also consented to provide 30% credit risk guarantee for theoutstanding principal loan amount, excluding the Sindh government equity. 2

However, the transporters did not pursue this project considering it non-viableas a single bus would cost them nearly PKR 1 Crore and with fare of PKR 15 for20Km distance, they believed that it is not possible to repay the outstandingamount and be profitable at the same time.

Uber and Careem PhenomenaLaunch of app-based taxi services in Karachi created a major impact on thetraffic in the form of a significant addition of private cars but with relativelybetter vehicle condition as compared to other public transport available inKarachi. First Careem Taxi booking service was launched in mid of 2015 whichwas followed by Uber offering similar services in August 2016. Since then amajor surge in the private cars was visible on the roads of Karachi with theirdrivers wearing seatbelts. Later in March 2017, women-only ‘Pink Taxis’ or‘PAXI’ service with women drivers wearing black coat and a head-scarf were asurprising addition to the fleet. These services bridged the gap of non-availability of public transport to some extent, created employment, improvedthe available service quality, normalized the fares of other comparableservices of taxis and rickshaws due to competition and reduced the need of

2 https://www.dawn.com/news/1323617

According to the TransportMinister of Sindh SyedNasir Hussain, Karachineeds at least 8,000 morebuses.

Launch of app-based taxiservices in Karachi createda major impact on thetraffic in the form of asignificant addition ofprivate cars but withrelatively better vehiclecondition.



parking space at commercial centers. However, the traffic on the roadcontinued to swell as increasing number of cars hit the roads. This shiftnecessitates major improvement in road infrastructure ideally with seamlessroads, more overhead bridges and underpasses to accommodate this trafficbulge.

Pushcarts contribute much to traffic woes

Large number of pushcarts selling fruits, vegetables and other consumer goodsare also seen being dragged or parked in a disorderly manner, many timesoccupying even one-third of the road. There is absolutely no code of conductfor them and often given full liberty by the police officials in return ofpredetermined daily or weekly under-the-table payments. To add to the mess,the motorcycle and car drivers stopover on the middle of road to purchaseconsumables from them while sitting on the driving seat, totally incognizantto the distress they are causing to other commuters. There should be somesort of code of conduct or area restrictions be applied on the pushcarts andenforcement should be ensured. For instance, these pushcarts can be confinedto dedicated areas, some sort of overhead bridges or underground pavementsso that they don’t disrupt traffic flow in any way.

Weak law enforcement and awareness

Many issues of traffic are effectively controllable by increasing awareness andenforcement of law. In this regard, Mr. Teli is of the view that there is need tocompletely overhaul the entire traffic policing system in order to improvetraffic flow and this has to be done from the grass root level. The first step inthe right direction will be to immediately disallow people from driving withouta license, followed by a massive Public Awareness Campaigns at all levels andproper training not only to the public but also to traffic police officers so thatthey could become capable enough to efficiently control traffic and strictlydeal with violators of traffic rules.

Strict penalties should also be imposed on persons, organizations, businessesand other government departments who damage or cause to damage thepublic infrastructure including roads so much so that they should be made tobear the cost of the entire repair.

Massive awareness campaigns neededThe desired results can only be achieved through concerted efforts of all thestakeholders including policy makers, law enforcers as well as public

Large number of pushcartsare seen being dragged orparked in a disorderlymanner, many timesoccupying even one-thirdof the road.

There should be some sortof code of conduct or arearestrictions be applied onthe pushcarts andenforcement should beensured.



themselves which cannot be achieved unless everyone is aware of his duties,responsibilities and rights. For this purpose, there should be some sort oftraining sessions on regular basis or public awareness programs can beconducted through electronic and print media etc. Schools can be a veryeffective medium to spread awareness as when the children are provided withknow-how of traffic rules and their civic responsibilities, they are more likelyto follow them in their lives and enforcement of law would be much easier.

Unlicensed amateur drivers – a serious riskIt is very unfortunate that currently anyone can fearlessly drive on the streetsof Karachi even without a valid driving license and in many cases even thelicense holders are not well aware of traffic signs and rules.

If the number of driving licenses issued/renewed in the past five years iscompared with the number of vehicles registered, there are just 19%motorcycle driving licenses per total motorcycles registered (please see thetable below). It is more surprising that the total active driving license holdersof motorcycles are mere 43% of even the new motorcycles registered in thelast five years. Based on this data, it can be safely asserted that quite asignificant number of motorcyclists are driving their bikes on the road withouta driving license.

The situation is worst in case of Rickshaw category which is experiencing thehighest growth in number of vehicles but the number of license holders arejust 2% and 3% of the total registered and new registered rickshawsrespectively. This depicts that the enforcement of traffic laws in this categoryis almost non-existent.

Comparison of Active Driving Licenses with Registered Vehicles in Karachi

VehicleCategory

New Licensesissued

(2013-2017)

RenewedLicenses

(2013-2017)

Total ActiveLicenses

(2013 to 2017)

RegisteredVehicles till

2016

% Licensesper Vehicle

New RegisteredVehicle

(2012-2016)

% Licenseper newVehicles

Motor Cycle 237,179 213,937 451,116 2,344,976 19% 1,048,495 43%

Motor Car 215,442 228,338 443,780 1,275,317 35% 276,397 161%

LTV* 212,265 114,556 326,821 239,205 137% 57,433 569%

HTV 2,303 21,480 23,783 34,605 69% 6,417 371%

MCR** 1,940 1,841 3,781 229,826 2% 124,142 3%

Total 669,129 580,152 1,249,281 4,123,929 30% 1,512,884 83%NOTE: *LTV License holder can drive private Car (LTV registered vehicles’ data exclude private cars) ** MCR is license for Rickshaws ***Licensesare renewed for 3 or 5 years so 5 years data (Jan 2013 – Aug 2017) is assumed to include approx. all active driving license holders.

Source: DIGP Traffic (LT)-KHI; KDA; KCCI Research

No one should be allowedto drive on the roads atany cost without a validdriving license.



The situation of Private Car and LTV (Light Transport Vehicle) categories isrelatively better than motorcycle and rickshaw categories, with total 770,601driving licenses against 1.5Mn total registered cars and LTVs translating in 51%licenses per vehicle. There may still be many out there driving their fourwheelers without a license.

In contrast, total number of HTV (Heavy Transport Vehicle) driving licenseholders corresponds to 69% of the total registered HTVs depicting that mostof the HTVs drivers bear valid driving licenses as not all of the registeredvehicles would actually be running on the roads.

The scenario is urgently calling for a strict crack down on the persons drivingvehicles without a valid driving license particularly the rickshaw andmotorcycle drivers as amateur drivers are more prone to accidents and are athreat to the safety of life of other as well.

In a statement Chairman BMG quoted, “We have been demanding from timeto time that no one should be allowed to drive on the roads at any cost withouta valid driving license which should only be issued after proper training only tothose individuals who qualify the relevant theoretical and practical tests.Unfortunately, the concerned authorities have paid zero attention to thisdemand and the consequences are in front of us every day while driving onthe streets of Karachi where traffic flow situation continues to worsen day byday.”

He also stressed the need to substantially raise the existing penalties for trafficrules violators which, if done, would trigger some kind of fear amongst themasses. Chairman BMG hoped that the decision makers at the provincial andlocal governments would pay attention to this serious issue and deviseeffective strategies to control traffic, besides improving the dilapidatedinfrastructure of Karachi in order to provide some relief to the perturbedcitizens who continue to suffer for hours and even get looted on the streetsduring traffic jams.

Ineffectiveness of Traffic Signals

Traffic signals in Karachi have not been optimally effective in managing thetraffic at crossings due to various reasons. Many times signals are not workingdue to technical faults or power failures and are also suspended after 11:00pm. There is a strong tendency of breaking the traffic signals which is morecommon in bikers. In rush hours, the signals lose their efficacy as some roadsare more crowded than others causing long queues to accumulate which often

Driving licenses shouldonly be issued after propertraining only to thoseindividuals who qualify therelevant theoretical andpractical tests.

Desired results cannot beachieved unless everyoneis aware of his duties,responsibilities and rightsfor massive awarenesscampaigns are the need ofthe hour.



extends so much that they disrupts the flow of the adjacent crossings.Sometimes, traffic police or city traffic wardens are not available to takecharge of the situation and control the traffic when signals gets ineffectivewhich causes traffic jams and even accidents.

Many roads have been made signal free corridors to facilitate traffic flow butstill the jams occur due to bottlenecks at turnings, due to wrong parking,accidents or a broke down car on the road and where the roads get narrow.

CDGK introduced SCOOT (Split, Cycle and Offset Optimization Technique)system under a World Bank project, which resulted in installation of fixed cycletime traffic signals though any traffic control center was not implemented. 3

However, the growing traffic necessitates further improvement in the trafficmanagement technologies.

Demand Response System – as a solution to manage trafficIn order to effectively manage traffic flow particularly during the peak hourswhen flow increases towards the dense commercial areas of Karachi in themorning and towards the residential side in the evening, there is arequirement of intelligent traffic control system. For this purpose, a DemandResponse System can be put in place to smartly control and adjust time oftraffic signals based on the traffic need remotely through a centralized andautomated traffic control center.

Technology as a solution to control traffic

Several measures have been taken to incorporate latest technology in trafficmanagement. However, due to several operational loopholes, the systemcould not be upgraded. Modern technology still remains a major missingaspect which have become indispensable in the city as it continues to grow.

Traffic Violation Evidence System (TVES)In January 2016, the Karachi Traffic Police Department introduced a TrafficViolation Evidence System (TVES) where CCTV cameras were installed at somelocations in Karachi which have the capability to view the vehicle’s numberplates at the intersections/traffic signals. Alternatively there were also mobileunits manned by traffic police personnel, who could take photographs of lawoffending motor vehicles.

The system allowed to record any traffic violations as they happen after whichthe information of the law violator was to be collected from the Citizens Police

3 Karachi Transportation Improvement Project Report

A Demand ResponseSystem can be put in placeto smartly control andadjust time of trafficsignals based on the trafficneed remotely through acentralized & automatedtraffic control center.



Liaison Committee (CPLC) database using the license plate numbers. If it wasconfirmed that the vehicle owner has actually broken the law, then a ticket /electronic challan was to be couriered at the registered address. However, thissystem could not be enforced across the city due to major inconsistencies inthe records of vehicle registration, ownership and residence which made itdifficult to trace and charge the right person for the violation.

Intelligent Traffic Control System using RFIDsCurrently, vehicles remain scot free after traffic violating vehicle whilemotorcycles are frequently used for robberies and snatching which in theabsence of any tracking system easily makes the escape. Thus, monitoring ortracking of a vehicle is an important aspect of controlling traffic andmaintaining security which can greatly reduce not only the traffic violationsbut also street crimes. For this purpose, radio frequency identification (RFID)technology can be effectively used for Automatic Vehicle Identification andtracking to get hold of rule violators and criminals even on the move.

RFID uses electromagnetic fields to automatically identify and track tagscontaining electronically stored information attached to vehicles. Passive tagscollect energy from a nearby RFID reader's interrogating radio waves. Since itis a very small and inexpensive chip, it can be easily attached to any hiddenpart of the vehicle. RFID tracking of vehicles can operate in real-time, checkvehicle speed, improve traffic flow and safety. Since it is fully automated, it iscost efficient and minimizes human involvement.

Source: transid

RFID uses electromagneticfields to automaticallyidentify and track tagscontaining electronicallystored informationattached to vehicles. RFIDtracking of vehicles canoperate in real-time, checkvehicle speed, improvetraffic flow and safety.



This system can be introduced in Karachi by making it mandatory to install RFIDchips in all the vehicles including motorcycle and rickshaws and installing RFIDreaders at all the signals, crossing and critical locations. This system can thenbe integrated with associated systems like Traffic Violation Evidence System,Traffic Signals, Crime Investigating Agency, CPLC and Police for morecomprehensive management of this mega city.

Dearth of Parking space

Karachi is a very old city and has remained a commercial hub at a time whenmotorized vehicles moving on the roads was a rare occurrence. The oldbuildings seldom had parking spaces while many roads of old city area weretoo narrow to accommodate car-parking on their sides. As more and more carsare getting in, many roads have been restricted for one way traffic, newbuildings are being built with dedicated parking areas, no-parking and tow-away areas are defined though the situation is still far from being undercontrol.

Saddar Parking Plaza grossly underutilizedA multi-storey parking plaza was built in Saddar a few hundred meters awayfrom congested Empress Market area with two floors reserved for shops, twofor offices and eight for parking of vehicles. This parking plaza was constructedat a cost of about PKR 650Mn on a 35,654 square-foot plot on a signal-freecorridor. It holds capacity for over 700 vehicles and 500 motorcycles andhouses 160 shops and 118 offices. The parking plaza was inaugurated in July2009 and its management was given to a private party on a contract. However,it could not be utilized and continued to remain deserted while lots ofpushcarts grabbed the road space just on the opposite side of this plaza. It isstill unclear as to why this apparently very viable project could not be put touse.

Smart Rotary parking – a new technologySmart Rotary parking is a relatively new technology of electronically parkingcars vertically in the air. It has been adopted in many different countries andeven in Lahore to accommodate large number of vehicles in a very smallparking space. This technology can also be adopted in Karachi at congestedand commercial areas to handle the issue of shortage of parking area.

Saddar Parking Plaza holdscapacity for over 700vehicles and 500motorcycles and 160shops and 118 offices.

Smart Rotary parking canalso be adopted in Karachiat congested andcommercial areas tohandle the issue ofshortage of parking area.

Saddar Parking Plaza holdscapacity for over 700vehicles and 500motorcycles and 160shops and 118 offices.



Transport sector development way too slow

The budget documents of Government of Sindh reveals that there are PKR43Bn worth of projects related to Transport and Mass Transit development inthe Sindh Budget 2017-18. In the last few years, the annual expenditure onsuch Transport development projects remained below PKR 510Mn which istoo low and if development continued at such a slow pace, it would ratherneed another 80-90 years to complete all these projects. However, for FY18,the government has increased allocation to PKR 3,195Mn with majorinvestment of PKR 1,503.4Mn on BRTS Orange Line completion and PKR506.8Mn for Integrated Intelligence Transportation Systems for Karachi whichif it manages to spend as stipulated, it would be an achievement of the SindhGovernment and a major relief to the commuters.

Transport & Mass Transit Annual Development Programme 2017-18Amount in PKR Million

Scheme Location Date ofApproval

Targetcompletion

EstimatedCost

Est. Expenditureup to June'17

Ongoing SchemesRehabilitation of Drivers trainingschools under PPP mode

KHI, Sukkur, Hyderabad& Larkana

12.11.09 Jun-18 102.2 76.502

Construction of Bus Terminals Thatta, Badin & Qamber 15.12.11 Jun-18 280.5 136.825Up-gradation of Traffic Signals KHI, Sukkur, Hyderabad,

Larkana & Mirpurkhas05.01.17 Jun-18 143.2 0

Larkana Inter-City Bus Project Larkana 18.05.16 Jun-18 197.5 0Construction of BRTS Orange Line Karachi 26.12.14 Jun-18 2,364.2 860.749Red Line Detail Design through ADBAssisted PDA-PC-II

Karachi 21.12.15 Jun-18 277.5 0

Revival of Karachi Circular Railway(Consultancy PC-II)

Karachi 17.03.17 Jun-18 41.5 0

New SchemesRevival of Karachi Circular Railway(Cost: $2.583Bn)

Karachi Unapproved Jun-20 18,029.5 0

Construction of Boundary Fencingalong existing alignment of KCR

Karachi Unapproved Jun-18 241.0 0

Construction of BRTS - Red Line(Cost: PKR 19Bn; ADB Loan: 85%)


Construction of BRTS - Blue LineProject Segment I


Construction of BRTS - Blue LineProject Segment II


Shifting of Utilities for BRTS YellowLine Project


Integrated Intelligence TransportSystem


Construction of Bus Terminal Jacobabad Unapproved Jun-19 183.0 0Construction of Mini Bus Terminal Khairpur Unapproved Jun-19 30.0 0Up-gradation of Traffic Signals KHI, Sukkur, Hyderabad,

Larkana & MirpurkhasUnapproved Jun-20 200.0 0

Total 43,220.1 1,074.1Source: KCCI Research; Sindh Annual Budget Statement

In budget FY18, Sindh govt.has increased allocation toPKR 3,195Mn with majorinvestment of PKR 1,503Mnon BRTS Orange Linecompletion & PKR 506.8Mnfor Integrated IntelligenceTransportation Systems forKarachi.



Several road and bridge construction, remodeling and rehabilitation projectswere included in the Sindh Budget FY18 for Karachi having total estimated costof PKR 15.7Bn. Total estimated expenditure up to June 2017 amounted to PKR5.3Bn where significant progress was made on the ongoing projects during theyear FY17. These ongoing and new projects would no doubt improve thecondition of city’s many major arteries, however, the link roads and otheradjacent streets are also in debilitated state across the city which cause to slowdown the traffic on the main roads as well. Therefore, a lot more is still neededin the city.

Mega Road Schemes for Karachi 2017-18Amount in PKR Million

Scheme Date ofApproval

Targetcompletion

EstimatedCost

Est. Expenditureup to June'17

Ongoing SchemesConstruction of University Rd. from Hassan Square to Nipa 16.05.17 Jun-18 1,285.27 770Construction of University Rd. from NED to Safoora Chowk 16.05.17 Jun-18 1,470.31 777.386Rehab/Reconstruction of Tariq Road from Shaheed-e-Millat Road to Shahrahe-Quaideen

16.05.17 Jun-18 918.45 516.506

Rehab/Reconstruction of Mosamiyat Rd. from MadrasChowk to Super Highway

10.08.16 Jun-18 200.68 200

Construction of Hub River Road 16.05.17 Jun-18 620.59 500Rehab/Reconst. of Road from Surjani to Madinatul Hikmat 10.08.16 Jun-18 1,249.16 750Construction of U-Turn at Natha Khan Bridge 10.08.16 Jun-18 214.47 70.5Widening of Shahrahe-Faisal from Metropol to Star Gate 10.08.16 Jun-18 844.38 850Remodelling of Baloch Colony Flyover and constr. Of Road 10.08.16 Jun-18 119.57 119.136Constr. Of Drig Road Underpass along Shahrae Faisal withrestoration of Right Turn Bridge

10.08.16 Jun-18 755.85 505

Constr. Of Underpass at Submarine Chowrangi 10.08.16 Jun-18 699.46 250New SchemesConstruction of Road from Tank Chowrangi to SuperHighway via Thado Naala

Un-approved Jun-18 350.00 0

Reconstr. of Tipu Sultan Rd from Shahrahe Faisal to Karsaz Un-approved Jun-18 280.00 0Construction of Bridge at Tipu Sultan Road and Khalid BinWaleed Road at Shaheed-e-Millat intersection

Un-approved Jun-18 1,500.00 0

Widening and Re-construction of Stadium Road fromUniversity Road to Rashid Minhas Road


Construction of Flyover at Lee Market, Lyari Un-approved Jun-18 644.00 0Constr. and remodelling of 12000 Road Landhi, Korangi Un-approved Jun-18 1,500.00 0Improvement Plan for roads at Cantt. Railway Station Un-approved Jun-18 240.00 0Const. of road from Fawara Chowk to Garden via AbdullahHaroon Rd. and back to Fawara Chowk via Zaibunissa Rd.


Construction of Interchange Bridge at ICI Intersection Un-approved Jun-18 1,000.00 0Widening of bridge over Korangi Naala near Habib Bank Un-approved Jun-18 200.00 0Const. of Bridge at Intersection of Sunset Blvd & Gizri Blvd Un-approved Jun-18 700.00 0Total 15,712.18 5,308.53

Source: KCCI Research; Sindh Annual Budget Statement FY18



On the other hand, the registration fees collected in Sindh during the previousthree years ranged between PKR 124Mn and PKR 282Mn while surprisingly thebudget targets exceeded PKR 2Bn for the subsequent years. On the otherhand, receipts under Provincial Motor Vehicle Tax Act, which include trafficviolations and penalties, surged to PKR 4.9Bn in FY16 where the budget targetwas PKR 1.85Bn revised to PKR 2.7Bn for FY17 and PKR 3.2Bn for FY18. It isdifficult to ascertain the exact reasons of these disparities, probably thegovernment anticipated a much higher surge in vehicles getting in forregistration or for some reason believed that the traffic violations woulddecline drastically in the following years.

Motor Vehicle Tax Receipts

(Amount in PKR Million) 2013-14 2014-15 2015-16 2016-17Revised Est.

2017-18Budgeted

Fees for registration 141 282 124 2,308 2,795

Fees for misc. receipts 479 61 26 488 651

Receipts under Prov. Motor Vehicle Tax Act 3,305 3,531 4,910 2,735 3,208

Luxury Vehicles Tax levied under Fin. Act 1997 220 251 231 471 648

Other Taxes on Vehicles - - - 4 4

Motor Vehicle fitness certificate 2 4 60 81 101

Vehicle Route Permit Fee 8 82 85 114 142

Total 4,153 4,210 5,435 6,200 7,550

Source: KCCI Research; Sindh Budget Statements

Repair is 10 times costlier than maintenanceLack of infrastructure maintenance is among the major reasons for the trafficjams. The repair and maintenance of roads should be an ongoing process andpromptly addressed within 24 hours of the damage throughout Karachi tomaintain smooth flow of traffic as well as reduce risk of accidents and to saveprecious lives.

Unfortunately, here repair and maintenance are also taken as developmentprojects after the roads are turned into ruins. In 2016-17, Sindh governmentannounced a Karachi development package of PKR 10Bn which included repairand construction of roads in Karachi. Massive construction and repair workwhen started all at once on so many main arteries created a havoc for thecommuters in the city during that period. Even afterwards, encroachments,

The repair andmaintenance of roadsshould be an ongoingprocess and promptlyaddressed within 24 hoursof the damage.



parking at no-parking areas and weak enforcement of traffic laws almostnullified the positive impact of the development.

To effectively address the issue, there should be a pavement maintenancepolicy to keep roads and streets from falling into poor or very poor condition.It is recommended also because the cost of repairing a road in abysmalcondition is typically ten times higher than maintaining a street in fair or goodcondition. The proverb “A stitch in time saves nine” rightly applies to this.

Policies should include different pavement treatments like ‘fog and cracksealing’, ‘grind and pave’, ‘base repair’ and ‘reconstruction’. Then there existspermeable pavement option which is a modern technology. It absorbs all thewater on the road, keeping the roads clean and dry even after rains and thatwater can be also be reused for different purposes. To make the policyworkable, there should be sufficient budget allocation available for repair andmaintenance, dedicated department and workforce exclusively formaintenance of infrastructure on continuous basis, maximum response timelimitations and methods to evaluate performance, procedures to receivecomplaints and conduct surveys etc. There should also be some considerationfor the movement of disabled in the policies like constructing ramps for wheelchairs.

Karachi Circular Railway – critical for traffic managementRevival of Karachi Circular Railway (KCR) is a major project in pipeline which isexpected to bring in substantial relief to the commuters while would alsocontribute to reduce the traffic burden. KCR project envisages revival andconstruction of 43.2km double railway track with 24 stations and procurementof 162 locomotives. The project ridership is estimated at 550,000 passengersper day in the opening year with projected demand of 749,541 till 2030.

KCR was commissioned in 1964, originally for the employees of PakistanRailways which was later converted to a full circle of 44Km in 1970 where itwas connected to the port, the Sindh Industrial Trading Estate, old city’scommercial areas and the Landhi Industrial Area. After 1984, the number ofits trains started phasing out leading to an ultimate closure in 1999 due to lackof maintenance and repair, burgeoning losses arising due to higher fuel andoperational costs and decreasing revenue amid subsidized tickets and thegovernment’s inability to pour in money to improve tracks and stations. 4

In 2001 Engineering Consultants International (ECIL) were appointed toprepare a Viable Implementation Plan for the Revitalization of the Circular

4 http://herald.dawn.com/news/1153792

There should be apavement maintenancepolicy to keep roads andstreets from falling intopoor or very poorcondition.

KCR project envisagesrevival and construction of43.2km double railwaytrack with 24 stations andprocurement of 162locomotives.



Railway in Karachi. KCR project faced several snags which led to delays in itsexecution. In 2009, Japan International Cooperation Agency (JICA) showed itsinterest in this project but some years later their interest was overshadoweddue to the hurdles in the project mainly encroachments on the mainline. Still,encroachments by people on the railway land remains a big issue to tackle.According to recent reports, there are around 7,650 structures, including4,653 houses, illegally built on 67 acres out of 360-acre land required for theKCR. In this regard, Chief Minister Sindh Syed Murad Ali Shah has alreadyordered to remove these encroachments and approved to pay compensationsto people who abode there before 2013.

JICA was reportedly considering providing 85% of the cost as soft term loan ona mark-up of 0.1%, repayable in 40 years, including a 10-year grace period.However, when negotiations failed to materialize, JICA decided that it wouldnot finance it. Subsequently, Sindh government got it included in ChinaPakistan Economic Corridor (CPEC) projects.

Karachi Circular Railway – Route Map

Source: www.tribune.com.pk



Recently it has been reported that Sindh government is also pursuing withPakistan Railways to transfer land used for 30Km of the KCR route to theprovince at a nominal rate of one rupee per square yard and provide a no-objection certificate to use the remaining 13-kilometre patch of land.5

The Pakistan Railways has agreed to the land transfer but, in return, it hasdemanded a share of 60% of the revenues to be made from leasing out spotsfor commercial use at KCR stations and other installations. While Sindhgovernment intends to use those revenues to subsidize KCR ticket rates as wellas maintain the quality of its service. Instead, provincial authorities areoffering the railways a share of the net profit to be generated by KCR’soperations. Although Karachi Circular Railway project was earlier envisaged tobe launched by September 2017 and now expected to be launched on

5 http://herald.dawn.com/news/1153792

Source: skyscrapercity.com

Sindh govt. approachedChina to finance the KCRproject worth ~$ 2.5Bnunder China PakistanEconomic Corridor (CPEC).



December 25th, 2017, the resolution of all the upfront issues would decide thefate of this project whether it will ever be materialized or not.

Karachi Metrobus ServiceThe Karachi Metrobus project is another much demanded project fortransport which is stipulated to run on a dedicated track to provide efficientbus service to the public and handle the growing traffic issue. Currently, twoBus Rapid Transit (BRT) projects – the Green Line BRT and the Orange Line BRTare under construction.

Green line project: The government anticipates Green line project to becompleted by December 2017. However, it may witness further delays as workprogresses quite slowly. The line will have 37 bus stations when completed.

Orange Line: On the Orange Line, construction began on June 11, 2016 yet toget operational. It is the smallest of the five line's spreading over 3.9 km withonly four stations.

Bus Rapid Transit System (BRTS) Route Map

http://www.kidcl.com.pk/green-line-brts-route-map/



Karachi Metrobus Service

Busways Route Alignment Length(Km) Total Cost Details

Green Line Merewether Tower to Surjani Town 35 PKR 24.6Bn Major funding by GoP. Constructionbegan on Feb 26, 2016.

Orange Line Shahrah-e-Quaideen near TMOOffice Orangi to Board Office 3.9 PKR 2.0Bn Entirely funded by the Sindh govt.

Blue Line Merewether Tower to Bahria Town 30 - Project funded by the Bahria TownGroup.

Yellow Line Landhi to New M.A. Jinnah road 26.5 PKR 14.4Bn Sindh govt. would fund 14%; Chinesecompany would share 16%.

Red Line Model Colony to Regal Chowk ViaSafoora Goth and University Road. 27 $ 184.2Mn ADB to fund 52%, DFID (UK) (12.62%)

and Sindh (34.42%).Source: KCCI Research; KMC

Lyari ExpresswayKarachi Lyari Expressway project is an important project aimed at reducingtraffic jams in the city. This 39km project consisting of two bounds on bothsides of Lyari Nullah stretching between Maripur and Sohrab Goth started in2002. Its south-bound track – from Sohrab Goth to Mauripur – had long beencompleted and operational, however, the work on the north-bound partremained halted because of encroachments on the area of about 2.2km. Thetotal cost of this project was estimated at around PKR 11.5Bn where anamount of PKR 9.8Bn has already been spent on it.

Recently, all the encroachments in the way of the second track of the LyariExpressway have been cleared, which resulted in displacement of more than1,500 families who had been shifted to the colony of the Lyari ExpresswayResettlement Project (LERP) in Taiser Town and Mochko.6

On March 13, 2017, the land was handed over to National Highway Authorityand the Frontier Works Organization to complete the construction. TheStanding Committee of the National Assembly had been assured that theKarachi Lyari Expressway will be open for public by August 14, 2017. However,it is likely to be delayed by more than a year as a lot of work is yet to becompleted.

6 https://www.dawn.com/news/1339972



Northern and Southern BypassesTwo bypasses namely the Northern and Southern Bypasses were conceived

somewhere in late nineties to link KPT with two grand trunk roads withouttouching major residential areas particularly for the movement of heavytraffic. Unfortunately, the Southern bypass project was abandoned in 2008,apparently due to the paucity of funds.

The Karachi Northern Bypass or M10 was completed which is a 57km long 2-laned road Built at a cost of PKR 2.2Bn that directly connects the M9 motorwayto Karachi Port. Since this is a single carriageway, it gets clogged for trafficcreating difficulties for motorists including the heavy industrial traffic. There isa need to develop it to dual-carriageway so that particularly the commercialand heavy traffic can smoothly move on this track.

On the other hand, the Southern Bypass was envisaged as an alternative inter-city route from Karachi Port Trust (East and West Wharf) to National Highway(NH). The first phase was completed which consisted of double road starting

Source: wikipedia

Karachi Northern Bypassor M10 is a 57km longsingle carriageway roadBuilt at a cost of PKR 2.2Bnthat directly connects theM9 motorway to KarachiPort.



from KPT, Jinnah overhead bridge, M.T. Khan Road, branching off to the rightas Mai Kolachi Road and finally ending near Boating Basin.

However, in the second phase, it was to merge into NH and there were threealternative proposals. According to the first proposal a track was to beconstructed along the seashore from the Boating Basin to Orange Creek whereit was to join the NH. Second proposal was to have an elevated road to beconstructed alongside the railway track from near the Boating Basin which wasto merge into the NH near Malir. The third alternative suggested a raised roadfrom Schon roundabout in Clifton, Sunset Boulevard and Korangi Roadintersection from where it was proposed to merge into NH through KorangiIndustrial Area.7 This project should be revived to ease off traffic woes and tohave an alternate more efficient route available to the heavy and commercialtraffic which is critical for economic growth.

Efficient Traffic indispensable for economic growth

The growing traffic in Karachi is calling for developing and upgrading theexisting transport infrastructure particularly the KCR on priority basis as localcircular railways work as a backbone of transport system in all the mega citiesof major economies with Karachi being an exception. Moreover, modernconstruction methods and capability of promptly repairing the wear and tearof infrastructure also need to be instituted in Karachi. While the country isanticipating a fast paced economic growth in the wake of China PakistanEconomic Corridor (CPEC) project, it becomes even more crucial for this megaport city of Karachi to improve its infrastructure and management ahead ofthe anticipated economic boom to avail maximum opportunities arisingtherefrom. With the concerted efforts of all the stakeholders, we hope thatthe traffic system would improve to an extent that people will start having apleasant traveling experience, traffic rules will get enforced, corruption will beuprooted, and drivers will start respecting traffic rules, following signals andgiving way to pedestrians on zebra crossings etc.

7 https://www.thenews.com.pk/archive/print/133111-southern-bypass-project-abandoned

Karachi Southern Bypasswas envisaged as analternative inter-city routefrom Karachi Port Trust(East and West Wharf) toNational Highway



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This report produced by KCCI Research & Development Department (KCCI Research) contains information from sourcesbelieved to be trustworthy; it is not guaranteed that the matter is accurate or complete. This report may not bereproduced, distributed or published by any person for any purpose whatsoever, without the prior writtenpermission/approval of KCCI and/or KCCI Research. It is not intended as professional and/or financial advice nor does anyinformation contained herein constitute a comprehensive or complete statement of the matters discussed or the lawrelating thereto. The information in this report is not intended as an offer or recommendation to buy, sell or call on anycommodity, security, currency, product, service or investment.

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The Analyst(s) compile this document based on opinions and judgments, which may vary and be revised at any timewithout notice. KCCI Research makes no exemplification as to its exactitude or completeness and it should not be reliedupon as such. This report is provided only for the information of members of KCCI and business community representativeswho are expected to make their own corporate decisions and investment without undue reliance on this report and KCCIResearch accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of thisreport or its contents. The views expressed in this document are those of KCCI Research and do not necessarily reflectthose of KCCI or its management.

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* Analysts: Uzma Taslim - Director, Shehzad Mubashsher – Deputy Director, Sidra Arshad – Research Analyst, JaneesAlam – Research Analyst and Iffraah Rehman – Research Database Officer.

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