Sahiwal Coal Plant Warns of Forced Outage Amid Railway Wagon Shortage

Sahiwal-Power

ISLAMABAD: The Sahiwal coal-fired power plant, a flagship project under the China-Pakistan Economic Corridor (CPEC), has raised alarm over a critical shortage of railway wagons for coal transportation, warning that continued delays could trigger a forced outage and threaten national grid stability.

Huaneng Shandong Ruyi (Pakistan) Energy (Private) Limited (HSRL), the Chinese operator of the 1,320 MW facility, has formally communicated its concerns to top government officials, including the Special Assistant to the Prime Minister. The plant is already grappling with financial strain due to payment delays from the Central Power Purchasing Agency – Guarantee (CPPA-G).

In a letter, HSRL CEO Liu Zeng Rui cautioned that the mismatch between high dispatch orders from the Independent System Operator (ISMO/NPCC) and inadequate coal transport capacity by Pakistan Railways could soon reduce the plant’s on-site inventory below 50,000 tons by mid-August—a level that could jeopardize continuous operation.

Despite repeated assurances, Pakistan Railways is only providing an average of 540–590 wagons per day, against the required 1,000 wagons (approximately five trains). This shortfall has continued for months:

  • May 2025: 6,200 wagons requested, 3,019 supplied (deficit: 51.30%)
  • June 2025: 5,800 wagons requested, 2,923 supplied (deficit: 49.60%)
  • July 2025: 5,800 wagons requested, 3,001 supplied (deficit: 44.81%)

As a result, approximately 500,000 metric tons (MT) of coal are currently stuck at Karachi ports. Four additional vessels carrying 170,000 MT are due in August, while 470,000 MT are expected during September–November.

HSRL has highlighted the increasing number of damaged wagons and shrinking availability of serviceable ones, exacerbated by competition from other power plants and industrial clients.

To avert a crisis, the company has urged the government to take immediate policy-level actions, including:

  1. Ensuring daily wagon allocations align with the plant’s generation schedule.
  2. Temporarily reducing grid dispatch load if transport limitations persist.
  3. Waiving capacity payment deductions and liquidated damages in case of shutdowns caused by transport bottlenecks.

The company has also requested a written update from Pakistan Railways on its plan to repair and recommission damaged wagons to meet coal transport demands.

“We remain committed to full-generation availability,” CEO Liu stated, calling for urgent interdepartmental coordination to prevent disruption and uphold grid reliability.

Story by Mushtaq Ghumman

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