The railway – the way forward
There are only a few among the living today who can recall the glory days of the Sri Lanka Railway. Rail travel was comfortable, affordable, and reliable. There are no improvements, no expansion, no innovation during the last 50 years. In fact the Railway appears to stand still after the British left Sri Lanka. There are many reasons for its present deplorable state.
(a) Inadequate investment on Railway infrastructure.
(b) Fast expansion of the Road network which became more convenient to the public and less of a financial burden on the treasury to maintain and expand.
(c) Loss of the freight business to Road transport. (it is relevant to mention here that the Railway in Sri Lanka was established to carry freight and that the Indian Railway is a profitable concern because of income from the freight business.).
(d) Disruption to the Northern line, which was a substantial source of income.
(e) CGR being a Government department did not have the strategic management and financial flexibility and independence to undertake an operational institution that had to compete with the Road Transport.
(f) Reluctance of all Governments to revise rail fares to meet rising operational costs. Treasury subsidy this year will exceed a massive Rs. 27 B. The subsidy required for next year will be much more and will continue to rise!!
One might question as to why we should invest in a Railway which at present is a “white elephant”?
(a) Railway is a cheaper and a more efficient mode of mass transport than Road Transport. Cost of fuel per passenger Km or freight Ton Km is cheaper than Road transport.
(b) It is environmentally more friendly.
(c) Road Network is at bursting point. Widening of Roads, Bridges and other related infrastructure will not be as costly as the Railways but physically not easy and time consuming.
The Treasury has failed in the Past to provide the necessary finance to even maintain the existing facilities. Is it in a position to do so now when other more important demands need its financial support? As it is, Treasury’s financial support to the Railway will be further reduced in future and will result in the Railway dying a slow death.
It is now very clear that a efficient Railway is very necessary and that the Treasury is not in a position to assist, even maintain the continued existence of the present deplorable service. Private Sector investment, better utilization of railway’s existing assets, and a better and flexible management structure is the answer.
We do not advocate privatization and handover of the ownership of state assets to the Private Sector. We believe in setting up a competitive environment in which the State and Private Sector will compete with each other to provide a better service to the traveller. Such a policy will also reduce the financial burden on the Treasury.
Look at the recent success and gains in the Telecommunication, Banking and Insurance Sectors in Sri Lanka. All the stakeholders – Treasury, Consumers and the Institutions – have benefited. This is what you get removing the bureaucratic and political decision making process and introducing professional management in a competitive environment.
By Daham Wimalasena Ex Chairman-CPC and Priyal de Silva Ex General Manager-SLR.
Source: Dailmirror
