P’ment tells Railway Dept. to boost goods transportation

Tuesday, 16 February 2021 02:07 - - {{hitsCtrl.values.hits}}

Freight revenue has reduced drastically over the years to 7.1% by 2019
Among key reasons for loss of revenue
Aims to increase fuel transportation from 32% to 40%

The Committee on Public Accounts (COPA) recommended to the Secretary to the Ministry of Transport to implement an expeditious action plan to streamline and promote the transportation of goods by rail in Sri Lanka after it was revealed that freight revenue of the Department has dropped drastically over the years.

When the Ceylon Government Railways (CGR) was started, from 1867 to 1934, its freight revenue accounted to 57% and it has decreased to 9.3% in 2017, 8.5% in 2018 and 7.1% in 2019.

The Committee heard that the Railways moving away from transportation of goods has been a major cause of losses to its revenue. The importance of taking steps to minimise this loss without placing a heavy burden on the Treasury was discussed at the meeting.

The Committee which met with State Minister Dayasiri Jayasekara chairing it emphasised the importance of streamlining the transportation of goods by rail to reduce traffic congestion and environment pollution caused by the entry of large containers into the road.

Special Audit Report to evaluate the use of the Railway for goods transportation was discussed at the meeting.

Railways General Manager Dilantha Fernando said that the railway service is currently mainly engaged in passenger transport and the existing infrastructure should be further developed for the transport of goods.

Although there were three agreements with a major cement company for the transportation of cement by rail, it was revealed that due to the lack of infrastructure development of the Railway Department, only the agreement to transport limestone from Aruwakkaru to Puttalam is currently in effect.

The committee said that the main customers of the railway have been lost in the recent past and accordingly, in consultation with the relevant parties, action should be taken to reconnect them and retain the existing customers. The committee also drew attention to the lack of a proper scientific plan for goods transportation rates and recommended that a formal program be prepared for the same.

The committee also discussed that a large number of unused resources including lands and other equipment were in the possession of the Department of Railways had not been properly identified and utilised for the betterment of the institution. The committee instructed the Secretary to the Ministry of Transport to look into the matter and submit a report immediately in this regard. Officials of the Petroleum Storage Terminals Ltd. (CPSTL) revealed that 32% of the fuel transportation is currently carried by trains and it is expected to increase it to 40% in the future and they pointed out the need to enter into an agreement with the Railway Department to increase this to 40% without any hindrance such as strikes.

The committee also emphasised the importance of changing the attitudes of the employees of the Railway Department.

State Ministers Lasantha Alagiyawanna, Duminda Dissanayake, MPs Tissa Attanayake, Prof. Ranjith Bandara, Dr. Upul Galappaththi, B.Y.G. Ratnasekera, Niroshan Perera, Weerasinghe Weerasumana, Dr. Harini Amasooriya and Government officials were present at the meeting.