1. Transport Sector Performance Indicators: Sri Lanka Existing Situation
Amal S. Kumarage Professor, Department of Civil Engineering, University of Moratuwa
Chairman, National Transport Commission
21st April 05

2. Overview of Land Transport & the Economy- 2003
GDP – Rs 1,400 billion
Value Addition to Economy Rs 178 billion (12%)
Employment Direct 700,000 (11% of national)
Government Capital Allocation Rs 300 bn
Government Expenditure on Transport Sector
Highways Rs 13.5 bn (4.5%)
Transport Rs 6.5 bn (2%)

3. Sri Lanka Transport: The Demand
Population 19 million
Distribution 70% in rural areas
Metro Areas – Colombo 3 million
Town Centres – 50,000 to 300,000
GDP per capita US$ 980
Employment (Agricultural based 45%, industries 25%, services 30%)

4. Sri Lanka Transport: The Supply
Transport Infrastructure
Transport Services

5. Transport Infrastructure
Highways
Expressways -None
National Highways -11,760 kms
Provincial Highways -15,743 kms
Rural Roads ,843 kms
Footpaths & Tracks – estimated at 120,000 kms
Railways 1,449 kms
Navigable Inland Waterways – less than 100 kms

6. Ancient Modern 1st Cent. BC
Road Network based on connectivity of Anuradhapura to ports in the North-East and connection between the kingdoms and places of worship mostly in dry zone
11th Century
Coastal roads in the southwest after migration of people
17th Century
Dutch Canal System in southwest develops it further
Year
RDA
Provincial
Access
Urban
Rural
Total
1815
Commencement of Road Building by British
1905
6,024
1959
7,034
 12,070
19,104
1990
10,447
14,916
2,791
66,054
94,208
2002
11,760
15,743
5,200
77,800
110,503
Ancient
Modern

7. Motor Vehicle Fleet

8. Vehicle Ownership per 100 households (Central Bank, Consumer Finance Surveys)
1978/79
1981/82
1986/87
1996/97
Bicycle
21.5
31.5
34.0
41.5
Motor Cycle
0.9
2.4
5.3
12.0
Motor Car/Van
1.9
2.3
3.0
3.4

9. Modal Share of Land Transport- 2001

10. National Modal Share

12. Priorities in Land Transport
Reduce Total Transport & Externality Cost for Economy.
Improve Quality/Service Levels of Public Transport.
Reduce Financial Burden of Public Transport on Treasury through Strategic Reform of SLR and Cluster Cos.
Managing Road Space & Traffic Flow by Levying charges to recover actual cost of Road Use
Reduce the burden from road accidents and environmental impacts

13. Description of Sub Sectors
Buses
Railways
Three Wheelers
Trucking
Private Transport
Rural Transport

14. Bus Transport In Sri Lanka
Private Individual Operators (1907)
Re-entry of Private Individual Operators (1978)
Formation of Companies (1942)
Formation of Companies?
Nationalization (1958)

15. Impact of Bus Transport on Sri Lankan Society & Economy
50 billion passenger kms per year  65% of all travel
30 billion Rupees in economic value  3% of GDP
10 million trips per day 2 trips per household per day
80 % households use the bus at least 1 time per week
Also 84,000 persons directly employed

16. What are the basic problems facing the industry?
Inadequate fares Inadequate investment in buses?
Weak regulation  Lack of Enforcement
Weak Market Structure Unmanageable number of operators
Abandonment of professional practices  poorly managed industry
Although regulated fares, and the single bus ownership have been the most quoted reasons for this state of affairs, recent study and documentation reveals that a host of regulatory lapses are in fact the primary cause of this situation.

17. Performance Indicators- Buses
Quality – Load Factor, Journey Speeds, Directness, Availability during unprofitable times, routes. Reliability
Efficiency: Bus Utilisation, Revenue/Cost per km.
Fare – Affordability to lower income deciles.
Cost to Society: Net Subsidy
Safety- crew standards, accidents, bus standards
Convenience & Comfort- value additions.
Niche Markets: Schools, Offices, Industries served
Infrastructure: Terminals, Stops, Busways

18. Railway Transport Fully regulated since inception Problem areas
Lack of commercial/passenger interest
Pre-occupation with employee rights
High financial losses
Abortive attempts on unbundling or private investment/management

19. Performance Indicators- Trains
Quality – Load Factor, Journey Speeds.
Efficiency: Track & Rolling Stock Utilization
Fare – Affordability to lower income deciles.
Cost to Society: subsidies less externality benefits
Safety- track & rolling stock standards,
Convenience & Comfort- value additions.
Niche Markets: Freight, Tourism
Infrastructure: Land Utilisation, Station Development

20. Three Wheelers
Popularity rising due to deterioration of public transport
Primary reason being attractive as means of self-employment
Presently 142,000 vehicles, but transport 2% of share.
Problem areas:
Cartelisation
Inefficiency

21. Performance Indicators- Three Wheelers
Quantity & Efficiency: Vehicle Utilisation
Fare – Affordability to middle income deciles.
Cost to Society: pollution and parking costs

22. Trucking Has always been fully deregulated
Efficient in corporate settings
In informal settings, poor productivity, high fares, externalities
Trucking is subsidized by the Govt.

23. Performance Indicators- Trucks
Efficiency: Vehicle Utilization
Cost to shippers.
Cost to Society: externalities due to pavement damage, congestion, pollution
Safety- vehicle and crew standards,
Infrastructure: Logistics Centres, Warehousing

24. Private Vehicles

25. Vehicles/Traffic in Colombo City
140,000 vehicle enter the city daily
1,000,000 passengers enter the city daily
64% arrive by bus (takes 25% of road space)
10% arrive by railway
26% arrive by private transport (takes 65% of road space)

26. The Problems of Road Safety
Costs lives, disables 4,000+, injures a further 12,000.
Damage only accidents 38,848.
Total accidents 57,618
Only 700 (4%) receive any compensation.
Economic Cost of accidents Rs. 10 billion ++
Risk of death due to road accident has risen from 1 in 115 (1977) to 1 in 51 (2002)

27. Performance Indicators- Private Vehicles
Efficiency: Network Speed, Vehicle Occupancy
Cost to users as VOC.
Cost to Society: externalities due to congestion, pollution and accidents
Safety & Environment- vehicle and crew standards,
Infrastructure: User Separation, Intersection Control

28. Performance Indicators Rural Transport
Accessibility (to basic services, employment opportunities and markets)
Ownership of vehicles
Affordability of services

29. Performance Indicators- Overall Transport
Efficiency: Network Speeds (rail, roads, bus)
Cost to Government: Net Subsidies
Resource Utilization: Energy Efficiency, Land Utilization,
Affordability of different modes to different sectors of society
Cost to Society: inputs plus externalities due to congestion, pollution and accidents
Employment Generation
Safety & Environment- minimum standards,

30. THANK YOU

31. Economic Cost of Transport 2003
Direct Operating Costs
Railways Rs 4,700 mn
Buses Rs 36,288 mn
Three Wheelers Rs 13,230 mn
Private Vehicles Rs 71,875 mn
Goods Transport Rs 61,000 mn
TOTAL Rs 178,393 mn
Cost of Externalities
Time Value > 30 km/hr Rs 77,500 mn
Time Value <30km/hr Rs 16,250 mn
Unpaid Accident Costs Rs 10,000 mn
Environmental Rs 2,000 mn
TOTAL Rs. 105,750 mn

32. Fuel Consumption-2003 Diesel 2,700 mn litres – Rs. 91,000 mn
Petrol 400 mn litres – Rs. 12,000 mn
Fuel Cost for railways - Rs 3,500 mn
Fuel Cost for buses - Rs. 3,000 mn
10% of fuel for railways/buses – but they carry 73% of passengers.
Over the last few months all these costs have increased by around 60%.

33. Economic Direct Costs in Land Transport (2003)
PASSENGER
Vehicles
Veh Kms
Pax Kms
Cost Rs.
Cost per Pax Km
Railways -
4,258
6,500
1.53
Buses
25,000
1,296
49,112
36,288
0.73
3Wheeler-Taxi
167,764
1,890
1,328
13,230
9.96
Private Vehs.
880,034
10,125
17,784
71,875
2.73 MC
5.26 C/V
FREIGHT
Ton Kms
Railway
128
Trucks/Vans
173,643
3,000
5286

34. Government Expenditure 2003
Roads – National Rs.11,300 mn
Roads – Provincial Rs. 2,151 mn
Railways Rs 3,500 mn
Buses Rs 3,000 mn
TOTAL Rs 20,000 mn
Income
Vehicle taxes etc. Rs 12,000 mn
Import Taxes Rs 5,000 mn
Taxes on Fuel Rs 5,000 mn
Registration/Annual License Rs 2,000 mn
TOTAL Rs 24,000 mn