Rs. 200 b loss to economy through inefficient transport

By Uditha Jayasinghe

Unprofessionalism, regulatory lapses and politicisation is responsible for Sri Lanka losing Rs. 200 billion annually from the transport sector, a top industry expert revealed yesteray.

Private Bus Owners’ Association (PBOA) President Gemunu Wijeratne told a forum on transport issues that the annual losses to Sri Lanka’s economy were estimated to be around Rs. 200 billion. These include Rs. 15 billion in traffic congestion, Rs. 360 million in sulphurous diesel usage, Rs. 720 million in EPF payments to bus crews, Rs. 36.5 million in damage to the environment and Rs. 4.5 billion due to commuter delays.

He made these statements at a transport forum titled ‘Public Transport in Sri Lanka – Blessing or Curse?’ organised by Friedrich Ebert Stiftung. The panel also included former National Transport Commission Chairman Prof. Amal Kumarage, Transport Ministry Senior Assistant Secretary M. Yalegame and Ceylon Federation of Labour Deputy President R. Rasseedin.

Making his address, Wijeratne pointed out that incompetent regulatory systems were one of the main reasons for the inefficient public transport system.

Rs. 200 b lost...

“We have the National Transport Commission (NTC) and Provincial Councils as regulatory authorities. This means that there is constant friction between the two parties. There are 11 transport ministers in Sri Lanka, eight provincial and three central government ministers,” he explained, insisting that this complicated regulatory system was one reason for the lack of timetables in public transport.

Recalling that his organisation had repeatedly gone to the Supreme Court to redress their issues, he observed that the deep politicisation of the transport industry was a significant constraint.

“Everywhere we can see more political appointees rather than professionally qualified people. One reason is so that political parties can use public transport for their own needs. One example is the recent May Day rally, when all public buses were used to transport people.” This was a point that Prof. Amal Kumarage also highlighted in his presentation.

Questioning how the public buses can make profit under these circumstances, Wijeratne stated that the Government spends around Rs. 8.4 billion as subsidy on public buses, which is Rs. 5,500 a day, but can operate only 4,000 odd vehicles. On the other hand, 18,000 private busses operate without any subsidies and manage to make profits. He blamed the inefficiency of private buses on the haphazard regulatory system, reiterating how they have been trying to induce the Government to approve improvements for years.

“We have been trying to get the Government to agree to a card system operated through mobiles for the last two years instead of direct payment. If it is implemented, then there would be no problem of paying change on buses.”

Wijeratne also criticised Government plans such as building the southern railway line, claiming that it was not conceptualised or executed practically.

Prof. Kumarage urged the Transport Ministry to implement the National Transport Policy which was drawn up and approved by Cabinet two years ago to solve many of these issues.

Pix by Upul Abayasekera

Expolanka to steam ahead with luxury passenger train service

Upcoming debutant to the Colombo Stock Exchange (CSE), the Expolanka Holdings is to launch a scheduled luxury passenger rail service.

The move follows Expolanka Holdings recently signing a five year agreement with the Sri Lanka Railways under the Ministry of Transport to deploy a value added premium service.

Initially the service branded “Expo Rail” will deploy two upgraded carriages, each having the capacity of carrying 42 passengers, fitted with premium airline type comfortable seats, air conditioning and wireless connectivity as well as catering.

The carriages will be hooked on to Sri Lanka Railways services on select but popular routes.

The luxury service is aimed at special groups and tours as well as citizens who prefer to enjoy a pampered ride. Unlike Viceroy Special, Expo Rail will be a regular scheduled service with no restrictions on minimum passenger limit.

Expo Rail will purchase tickets from Sri Lanka Railways, but a small premium offering value for money will be added to passengers using the luxury service. Marketing of passengers for this service will be done by Expo.

“We are keen to popularise the use of railways among people in the upmarket segments as well as offer a value-added service to holidaymaking tourists and foreign corporate personnel coming for conventions who have some extra time for sightseeing,” Expolanka Holdings Group Director and CEO Hanif Yusoof told the Daily FT.

“From a Group strategy perspective, we are keen to complement and enhance our transport solutions offering, which currently includes air and shipping,” he added.