COPA wants Railways to revive goods transport business that has declined drastically

The Committee on Public Accounts (COPA) has asked 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 Railway Department had dropped drastically over the years, Parliament sources said yesterday.

From 1867 to 1934, freight accounted for 57% of the Railway Department’s revenue and it decreased by 9.3% in 2017, 8.5% in 2018 and 7.1% in 2019.

The Committee which met with State Minister Dayasiri Jayasekara in the chair 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 roads.

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 was 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, due to the lack of infrastructure development of the Railway Department, only the agreement to transport limestone from Aruwakkalu to Puttalam was currently in effect.

In consultation with the relevant parties, action should be taken to reconnect them and retain the existing customers, the committee said, noting the lack of a proper plan for goods transportation rates and recommended that a formal scheme be prepared for the same.

The committee also noted that resources including land and equipment owned by 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 that regard.

Officials of the Petroleum Storage Terminals Ltd. (CPSTL) revealed that 32% of the fuel transportation was currently carried by trains and it was expected  to increase 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 hindrances 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 state officials were present at the meeting.