150 years and still going strong:

Demand for train travel on the increase

By Gamini Warushamana

The Sri Lanka Railways (SLR) marked 150 years of service to the country on December 24, 2014. The service was launched by British mainly for the transportation of goods from upcountry plantations.

The first discussion to construct a railway line was held in 1845 and in the same year, the Ceylon Railway Company was set up and the project finalised.

However, the launch of the project was delayed for another decade.

Construction work on the railway track from Colombo to Kandy was launched on August 3, 1858 by then British Governor in Sri Lanka, Henry George Ward.

By August 1864, the first phase of the 34-mile railway line from Colombo to Ambepussa was completed and on December 27, 1864 the train service was launched.

After one-and-a-half centuries the railway service has now become one of the main modes of transport for commuters and goods. However, some critics describe it as a monster that has become a burden to the State budget, because it does nor earn profits in financial terms.

But transportation experts say that this service is neglected and underutilised and its huge potential can be used to address transportation issues in a sustainable way.

Subsidy

Commercial Superintendent, Sri Lanka Railways (SLR), Sisira Kumara said that the CGR is not a burden on the economy and if correctly valued the service it provides is profitable.

He said that in 2013, the CGR earned a revenue of Rs.5.4 billion and the total financial loss disbursed as a subsidy by the Treasury was Rs. 5.8 billion.

Passenger transportation is the main source of revenue and in 2013 SLR earned Rs.3.55 billion by transporting passengers in addition to Rs. 930 million from season tickets where subsidies range from 60-90 percent.

A large number of government and private sector employees and students enjoy this subsidy. In 2013, revenue from passenger transportation increased by 20 percent compared to 2012.

The demand for railway services has been increasing in recent years and as as a result the revenue from passenger transportation too is increasing.

For instance revenue in the first three quarters of 2014 was 12 percent higher compared to 2013.

The reasons for this increase are extension of the Northern track, improvement of services with new power sets and carriages, reduced train delays after track development and signal system improvements.

"In the recent past, huge investments came into SLR and generally we are in a position to provide better service," Sisira Kumara said.

He said SLR makes profits though the books show a huge loss.

The value of the subsidy given in 2013 for season tickets was Rs. 2.8 billion. The train fare has not been revised since 2006 even though the price of oil was increased several times.

As a result the train fare is 50 percent lower than bus fare and for instance the Colombo-Kalutara train fare is Rs. 40 whereas the bus fare is Rs. 60. Therefore, through price revision alone SLR can raise its revenue by 50 percent and by price revision and abolishing subsidies, SLR can become a profit-making venture.

Not only the financial gains, the economic benefits to the country through the services provided by SLR should be taken into account. SLR operates 320 trains a day and carries over 500,000 passengers a day.

Traffic congestion

"Daily, we bring over 300,000 passengers to Colombo and our contribution to ease traffic congestion in the road network and resulting cost saving should also be considered. Travel time by train is 50 percent less compared to travelling by road," Sisira Kumara said.

"For instance the travel time between Colombo and Kalutara is 2.5 hours. But we bring passengers within 40 minutes or a maximum of one hour. We transport 200,000 people to Colombo daily and the financial value of saved working time should also be taken into account," he said.

However, revenue from transportation of goods has been declining. In 2012, revenue from goods was Rs. 462 million and in 2013 it declined to Rs. 412 million.

Kumara said that the main reason for this trend is the development of the road network with which the CGR cannot compete. Since there is no significant development in the industrial sector in the country new demand cannot emerge for the transportation of goods.

"However, we expect significant improvement in revenue from transportation of goods after completion of several projects in the future. The extension of the railway line from Matara to the Hambantota port, reconstruction of the Kankesanthurai and Thalimannar railway tracks will create demand for the transportation of goods," he said.

According to Dr. Lalithasiri Gunaruwan of the Department of Economics of the University of Colombo, the railway service had been neglected and investments to develop infrastructure and rolling stocks had not been channelled to it for over three decades until 2006.

New carriages were not added to the service from 1992 to 2006, over 13 years. Dr. Gunaruwan who was the General Manager of SLR and a former Secretary to the Ministry of Transport said that transport sector issues can be solved only by developing the railway service.

He said that the Sri Lankan railway service has a glorious history from British colonial era. Local knowledge and skills were used to build the railway tracks, carriages and machinery. Reports of British Governors to the Imperial government in the 1890s have said that locally manufactured carriages were of higher quality compared to imported carriages.

Profitability

In the first 50 years after the launch of the service it earned profits and the main revenue was from the transportation of goods. The railway was a low cost, reliable and time saving mode of transport for planters.

Since there was no developed road network, the railway had the monopoly in the transportation of goods. The service started to deteriorate due to several reasons such as development of the road network, situation created after First and Second World wars, low investments and negligence.

In the 1990s some of the railway tracks, Nanuoya to Ragala, Avissawella to Yatiyantota were abandoned.

This trend could be seen not only in Sri Lanka but in all parts of the world. The main reason for the deterioration of the railway service is the development of the road transportation system.

The competition is unfair because road transportation enjoys all infrastructure such as roads and traffic signals, free, while the railway has to maintain all these with its own money.

As a result, the railway was considered a monster that has become a fiscal burden on governments. However, since about a decade ago, this perception has been changing globally.

Environmental pollution, traffic congestion on roads and the high rate of road accidents has compelled transportation strategists to look at railway in a new light.

Several solutions

Thailand is the best example in this scenario. Thailand mainly uses the railway for the transportation of goods and the road network played the main role in passenger transportation.

With increasing traffic congestion, solutions such as flyovers and expressways were constructed, but every year traffic congestion intensified even on the expressways. The railway has been now considered as the best alternative to address transport issues. Hong Kong too has followed suit.

Transport experts have proposed several solutions based on the expansion of the railway line to address Colombo and suburb traffic congestion.

Renovation of the rail track up to the Sapugaskanda refinery and providing service to Kelaniya, Biyagama and Delgoda is one project. Renovation and use of the Bloemendhal line up to Colombo port is another.

The Kolonnawa line can be also used to provide transportation to the Wellampitiya area.

The extension of the Kelani Valley line to Battaramulla is another important project proposal considering the present traffic congestion in the Jayewardenapura and Kotte areas. These project proposals are the most practical solutions for another 10 years compared to the other options, he said.