CGR not exploiting profitable opportunities

by Gamini Warushamana

The Ceylon Government Railway (CGR) has neglected its potential and profitable opportunities as the main mass transportation mode in the backdrop of increasing passenger demand with escalating oil prices, workers and passengers charged.

Top officials of the CGR pursue multi-million new projects which are unproductive while the existing service deteriorates daily. The demand for railway travel is increasing with the increasing oil price since even the upper middle class people cannot afford the increased petrol and diesel prices and cannot use their own vehicles. If the railway can provide a better service it can attract these passengers.

This is the opportune time for the railway to be turned into a profitable business, experts said. Railway tracks have deteriorated and on the upcountry railway line a 5 Km/h speed limit has been enforced at some points. The first priority should be to renovate the railway tracks to maintain an average 80 Km/h speed which is essential to provide an efficient service to commuters, said General Secretary of the All Ceylon Railway Service General Workers Union Sumathipala Manawadu.

However investments have not been channelled for these essential requirements of the railway service. Instead top officials channel funds for expensive and wasteful projects. The Colombo-Katunayake expressway is one such project and even after President Mahinda Rajapaksa ordered to stop it, officials attempt to carry out the project, Manawadu said. The cost of the project is Rs. 29 billion.

The Horana-Panadura new rail track is another unproductive proposal. All these are unsolicited proposals and top officials of the government chase after them for huge underhand commissions, Manawadu alleged. Sources said the CGR officials are not following government tender procedure guidelines for these unsolicited projects.

The CGR has not revised rail fares though oil prices increased several times since April and as a result it loses Rs. 400 million per year. This would severely affect the operational capacity of the CGR as it faces a financial crisis as the treasury is not granting the amount as a subsidy, sources said.

Manawadu said that CGR officials do not use profitable opportunities but attempt to give them to multinational companies to earn commissions. With the oil price increase the CGR has got an opportunity to expand its cargo transportation and increase income as transportation costs by rail are significantly lower.

Offers have already come from the CPC and Prima to increase the transport of petroleum and wheat flour. Following the ban on heavy vehicles on the dam of the Kantale tank the CPC and Prima have offered special transportation contracts to the CGR.

The Railway is the best option available to the Prima company at present. Instead of accepting the contract and doing a profitable job CGR officials attempt to get locomotives from these companies.

Manawadu said that today the CGR transports cargo at Rs. 2.50/Tonne/Km and the rate has not been revised for seven years. However CGR officials are now planning to enter into a 30-year contract with the Prima company to transport cargo at 60 cents /Tonne/Km to obtain locomotives from the company.

Manawadu said that his union will bring the matter to the notice of President Rajapaksa and inform him about the shady transaction that is going to take place.

General Manager of the CGR K. A. Premasiri however, denied the trade union allegations. He said the Colombo-Katunayake express railway and Horana-Panadura railway were only proposals and the CGR does not have money to go ahead with it.

The CGR is negotiating with Prima but has not finalised the contract so far. He agreed that the CGR is seeking Prima locomotives because the CGR does not have money to purchase them.