Running new partnerships

By Uditha Jayasinghe

Business magnate Dhammika Perera appears to be getting ready to shake up the Transport Ministry by promising approvals for private sector investment ideas “within one hour.”

Perera on his first appearance as the Transport Ministry Secretary at a private sector forum organised by Shippers’ Academy – Colombo at the Ceylon Chamber of Commerce yesterday made special effort to encourage the private sector to invest in the infrastructure of Sri Lanka and insisted that he would always be available for support.

Responding to questions Perera insisted that the cumbersome approval process for projects that hitherto existed in the ministry has come to an end and he would streamline processors by intervening directly.

“We are aware that there are many challenges in this sector. However, we alone cannot provide answers to everything. It is up to the private sector to also come forward with proposals that will serve as solutions. The door is always open for anyone to come and talk to me, to air out their problems and present solutions for them,” he said adding, “I can get approval for you in one hour if necessary.” 

Presenting the government’s ambitious plans for the railway sector he nonetheless admitted that there were huge challenges in the way and investment implementation would take several more years to complete. He was urged by the audience to provide small solutions within the system that already exists by upgrading service standards for railway booking, enabling vegetables to be transported via rail to Colombo and encouraging export processing zones to use rail as a means of conveying cargo.

While acknowledging their issues Perera was keen to outsource these problem-solving points to the private sector pledging assistance if they were willing to invest and absorb part of the risk of the venture. Moreover, he was confident that the private sector could work closely with the Transport Ministry using equipment such as railways and trains at their disposal. “Just come and talk to me,” was the repeated message.

Despite the openness Perera was quick to point out the constraints placed on transport development by per capita income and GDP. Giving an example of the high maintenance costs that the government would incur by introducing highways he said, “We must have highways I agree to that but some people ask me why we haven’t made them six lane highways. This is because of the massive maintenance cost that the government will have to absorb. All these technology infusions come at high costs and they have to be entered in the balance sheet of the country. It is the same scenario with other forms of transport as well.”

Referring to the airport train he observed that passengers have to walk for about 600m after the last stop, which was the reason that it was being run only twice a day. “We will extend the line within the next six months and after that the train will run regularly.” Perera claimed that there are 1300 level crossings with only 300 guarded by warning signals. However, accidents are prevented by the engine drivers running slowly. “If we increase speed then there will be more casualties. People want 1300 crossings and they want trains to go fast. This cannot happen. Either money must be found for overhead bridges or there must be some kind of change.”

It is here, he stated, that the private sector can contribute, pointing out that 4, 000 busses are run by the State sector with a Rs.4 billion subsidy per year while the private sector runs around 20, 000 busses with no assistance from the government proving that the latter can be of immense use.