What happened to the Econo Rail Project
Econo Rail was a project to manufacture Diesel Multiple Units in Sri Lanka. It was approved by the government in November 2004. Even thou we applaud this government for the steps it has taken to import new carriages, locomotives and DMUs after many years, it is imperative that they support and implement indigenous projects like Econo Rail.
Dr Lawrence Perera’s name has gone down in the annals of the history of Sri Lanka as the first man to manufacture utility motor cars in Sri Lanka and is one who risked and took up the challenge of first local manufacture of cars and the product – economical and affordable ‘Micro Car’ is now fast selling in the local market and expected to export soon.
A man with 30 years of experience in the field of transport saw that there is an infrastructure built in since 147 years in the Sri Lanka Government Railway without maximizing its efficiency.
He said that road transport can serve only a limited way and it would not serve the masses of the country properly. This reason prompted him to use his expertise, pick up the vast technology available internationally in designing a prototype train which can carry many people at the same time – to establish Lanka Econo Rail Project.
As they did not have the right kind of total technology in Sri Lanka, they have obtained technical assistance from a world renowned manufacturer Bombardier Transportation from Denmark and also the other company involved is ZF AG transport manufacturers from Germany for the engine. He said that they tied up with this company to manufacture the first prototype train in Sri Lanka.
The system called ‘Diesel Multiple Unit System’ (DMU), where every three carriages is powered with a medium horse power, Power Pack. It is not one engine carrying the entire carriages and this system is ideal for a country like Sri Lanka, as now energy is used to run 10 compartments. He said that Sri Lanka has the highest mountains in broad gauge and climbing up to 1,700 meters. He said that in this context the proposed DMU is ideally suits the local conditions, which is ideal for pushing and pulling and the weight of the train on the track would be minimal.
DMU is very much economical and affordable for Sri Lanka as instead of spending huge sums of money for power-sets at costs ranging from Rs 300 million for one engine. If the DMU is turned out locally the cost would be around Rs 50 million and also the maintenance cost would be low and economical in value because the system is run on diesel hydraulic.
Dr Perera said that the original offer was that the Micro Cars that it would undertake the cost of the first prototype power-pack to be borne by them and the Railway Department could test the first train and on satisfactory operation the payment could be made. Dr Perera said “I do not think that anybody in the world would have given an undertaking to the government to bear the initial cost of the trains, but I undertook because that I am too sure that the system works”.
On 11th November 2004 the Sri Lankan Government approved the first Diesel Multiple Unit (DMU) manufacturing project to manufacture Lanka Econo Rail. This project was jointly designed developed and was to be manufactured by Micro Cars Ltd and the Ceylon Government Railway (CGR). This was revealed by Dr Sarath Amunugama, Minister of Finance on that day at a press briefing.
The Minister went on to say that the Treasury had promised to fund this project and hoped to commence services within nine months. He said that this project would bring a huge saving and it was also a source of income to the government.
Dr Perera commenting on the transport system in the country said that it is in an utter chaotic situation, mainly because; we have not capitalized the massive infrastructure available in the Railway Transport network.
Econo Rail proposed that the first few prototype trains could used the discarded under-frames which are now sold as scrap iron, which are lying all over the railway yard at present. Dr Perera said “We would use three under-frames and six bogies. If scrap iron is used the maximum amount would be rupees one million. There are about 30 such under-frames available now and about 10 power-sets could be manufactured. He said that they have prepared full technical and commercial proposals for these prototypes.
He said that the DMU system has penetrated to almost all parts of the world during the last five decades where well over 9,000 such DMU power sets are in operation now, covering all kinds of terrains with an annual approximate distance of 300,000 to 500,000 km showing a new trend in the rail industry which is heading towards a new era, where DMUs are being used instead of costly conventional locomotives.
If a locomotive of 1500 HP handles a train of 10 coaches, then for each coach approximately 150 HP is consumed from the engine power. Instead of having the 1500 HP locomotive in front, same train could be powered by 10 of 150 HP engines, under slung, on each coach. When the passenger load is less accordingly engines could be switched off.
He said that this would work as a private public joint venture. He said that project design was started in 2003 and the proposal was submitted early in 2004. The government accepted the proposal and the Cabinet appointed a committee to handle the project.
As the whole issue of the DMU has received wide publicity, the country would be thinking that the project is underway which could make a tremendous impact on the present chaotic transport system in the country. The actual situation is far from that. In the final analysis of the process that has taken place, it is apparent that certain officials have sabotaged this vitally important national project and now it has reduced to correspondence only.
Dr Perera said that as far as he know, the Cabinet paper was misinterpreted by the Railway Department as when the Cabinet approval was given to handle the project, it was misinterpreted in such a way as to evaluate the project by a committee of 8 members. He said that he was not blaming the politicians at all as the Minister of Finance, the Minister of Science and Technology and the Minister of Transport have valued the project very much. These officials have misled to the extent that this project would not take off the ground.
Thoroughly depressed Dr Perera said that it was not a loss to Micro Car, but the project not coming up would be a national calamity. These officials first came up with a theory that the project could be handled by the Railway Department. The original estimated cost was Rs 40 million, but it went up to Rs 50 million. These officials pointed out that the railway department could do it at a cheaper rate. But after their evaluations, the cost exceeded more than Rs 50 million.
Dr Perera said that only on 19th January 2005, Micro Car received a communication from the Ministry of Finance which is a copy of a letter addressed to the Chairman, National Procurement Agency (NPA) indicating that Ministry of Finance has encouraged Micro Cars Ltd to enter the field of production of cars and Econo Rail, since it is a local company making use of local expertise.
The Minister of Finance has drawn the attention of the NPA to the fact that there was a study on purchasing 100 new carriages and diesel locomotives from China and said that there was a fear that such a study would exclude the possibility of Lanka Econo Rail from participating in the development of the railway system.
The letter which was under the Minister’s own signature indicated that the Econo Rail could be accommodated in the area of commuter transport as Lanka Econo Rail seems to be a very promising development regarding rapid transportation of urban travelers. The Minister therefore has urged the NPA to integrate the proposals of the Micro Cars with whatever recommendations the NPA makes regarding the Chinese proposals.
On 14th July Micro Cars have addressed a letter to Minister of Transport Felix Perera drawing his attention to the proposal submitted by Micro Cars on the Lanka Econo Rail Project a year ago. In response to this letter, Secretary to the Ministry of Transport wrote back to Micro Cars by his letter dated 30/6/2005 indicating the matter was referred to the NPA for evaluation. The entire matter is now on hold with a reply by NPA indicating that it has submitted a report.
Several pioneering manufacturers who risked large investments has said that though it was the bounden responsibility of the government to assist them, while not only the government agencies failed to provide any assistance, there had been occasions that some of these agencies were really sabotaging and tried to prevent such ventures.
It is high time that the country must identify and weed them out as their continuance would make serious further damage to the development process of the country.
By Q. Perera
Source: Serve Sri Lanka
Recent interviews with Dr. Lawrence Perera regarding the Econo Rail Project
Interview with LMD Magazine in December 2007
Q: How is Sri Lanka’s transport sector performing at present?
A: I see transport as a key element of infrastructure in any country. In Sri Lanka, our transport sector is in a terrible state. You are here on time only because you had a personal means of transport. What would have happened if you didn’t?
We frequently hear arguments about the world oil market. The price of a barrel of oil is heading towards US$ 100. Can you or I bring down this price? No. But we can use oil efficiently.
Look at how much oil we waste. We are stuck in traffic because our transport system is not adequate. Any other country would use their railway system. We don’t develop that sector here. We have railways given to us by the British over 150 years ago, but to place rolling stock on it is expensive. For how much longer can we import carriages? Given that the industry is controlled by five manufacturers, locomotives are very expensive. You have to pay their price – so, importing locomotives won’t solve our problem. That’s why I proposed the ‘Lanka Econo Rail’ – but again, people didn’t want to accept it.
Q: What happened to that project?
A: They say we are not capable of doing it. Again, we underestimate ourselves. Why can’t we do it? If I have two hands, two legs and a head, I can do what you do or you can do what I do. It’s only the thinking that is needed. By not undertaking this project, we may all find ourselves on the road sooner rather than later. Imagine if you move 30 per cent of prevailing road-traffic volumes to the railways…
Q: But the Government has been talking about developing the railways to ease the pressure on our public-transport system, hasn’t it?
A: The problem is that they talk about it in reverse. They think that we first need the most expensive, high-speed rail systems. That’s not what we need. The existing tracks are good enough. Average road speeds in Colombo have declined to 10 kilometres per hour – so, a train (at even 30 kilometres per hour) is better.
Any developed or developing country must improve its travel and transport systems. The rationale for the Micro project and Lanka Econo Rail was to improve the transport sector. To import each power set of locomotives costs us US$ 3 million. But we could have done it for US$ 1 million.
Sri Lanka once had a strong bus network and the Government owned the CTB depot at Werahera. There were two local bus manufactures. What happened? The Government purchased buses from India. Why? We cry about unemployment, particularly among males. But we have solved India’s unemployment problem! When a bus is built in India, at least 10 people work on it.
Source: LMD
Interview with The Sunday Leader in December 2007
Q: What is the status with Lanka Econo Rail?
A: We got technological expertise from Germany; they came forward and were very interested in the project, but unfortunately the government at that time wasn’t very keen to pursue the project. But, the present government is interested and we’re trying to get the Germans involved again, but convincing them once they’ve lost faith is tough.
Q: With the current situation of the railways do you think this project will ever happen?
A: It’s not entirely impossible, it can be done, it’ll just take a lot of time and hard work. A mass transport system will carry at least 600 to 900 people at any given time by employing a few DMUs (Lanka Econo Rail type). I’m sure at least 30% of road traffic could be shifted onto the railways, resulting in less congestion and pollution thus saving huge amounts of foreign exchange on fuel imports as less traffic on the road means saving fuel. Also traveling about would be so much faster and it would be affordable to the masses — yet offering a decent and comfortable service.
Look at the cost of three wheelers! To travel just one kilometer in a three-wheeler would cost you minimum Rs.50 to 70 but in a train it costs less than a rupee. What if we raised train fares with the new train concept to Rs. 10 for a decent, safe and comfortable service? I too would travel by train.
When we go overseas most of us travel by train and I’m sure if we had more trains running more frequently it will solve most of the transport issues. To achieve this, importation of trains is not the answer as they are costly; we have to look at the local manufacturing option similar to what India and China have done.
I’m not looking at this from a businessman’s point of view, because of course there’d be risks but I am looking at it from the perspective of an engineer who’s been in the industry for long enough to know that with the right kind of dedication, this could work. I was educated in Sri Lanka and I just want to give something back. I don’t think one needs to be only a politician to serve our motherland.
Source: The Sunday Leader
Tags: broad gauge, carriages, diesel multiple units, highest mountains, horse power, local market, motor cars, prototype, railway, renowned manufacturer, road transport, sri lanka government
February 22nd, 2008 at 1:52 pm
Another interesting promise made after Tsunami was ;making an alternative inland railway line going parellel with proposed Colombo – Matara highway.I do not know whether that decision is abandoned or in progress.If this comes effective , it will give a huge thrust for Sri Lankan economy.
March 20th, 2010 at 9:19 am
I beg to differ. I have great doubts about the motives of the so called ‘Dr’ Lawrence Perera whose doctorate is similar to the one possessed by our infamous Mervyn.
He showed us a car built in Sri Lanka (the Micro 800) and now is in the business of selling cars brought to Sri Lanka in semi-knocked down format. The value addition in minimal and the cars are essentially made by Hafei in China and are sold in many Asian countries. Almost all vehicles sold by Micro now are of this type.
They also tried to defraud the government of huge tax revenue by doing some jugglery when bringing down knocked down kits of Ssang Yong jeeps and the customs investigated the company although now everything seems to have been swept under the carpet.
Lawrence Perera has a very chequered past and in my opinion the government saved itself a lot of money by not going ahead with this project.