‘Rs 40 mn daily diesel bill unbearable’

By Shamindra Ferdinando

General Manager, Railways, Dhammika Jayasuriya says revision of railway fares shouldn’t be delayed any further. Jayasuriya asserts that the national economy is in such a precarious state, continuing losses suffered by Railways, primarily due to steep increase in diesel price this year, cannot be sustained.

Speaking to The Island after having attended a meeting chaired by President Gotabaya Rajapaka at the President’s House on June 09 to discuss public transport issues, Jayasuriya said that their daily fuel bill amounted to Rs 40 mn while daily revenue stood at Rs 15 mn.

 Jayasuriya said that a sharp increase of bus fares recently resulted in a significant surge in railway commuters. However, an increase in daily revenue wouldn’t be sufficient at all to cover mounting losses, caused by rising cost of diesel and other inputs, Jayasuriya said, underscoring the responsibility on the part of the government to decide on this matter soon. The outspoken official said that season ticket holders paid just a fraction of the real value. When compared with bus fares, railway season tickets cost just seven percent of the bus fares, Jayasuriya said, drawing the government’s attention to their dilemma.

 Responding to another query, Jayasuriya said that a third class ticket should be about 50-60 percent of bus fares. According to him, the third class ticket was very much less than the bus fare and in the case of those buying return tickets even cheaper.

 Referring to a recent statement attributed by Transport, Highways and Mass Media Minister Bandula Gunawardane as regards the need for an increase in the fare structure, GMR said that the dependence on the Treasury for handouts should be reduced.

Jayasuriya admitted that they would never be able to revise train fares to such an extent, where losses could be eradicated. And a significant increase was required to cut down on daily losses to sustain the loss making venture, he said, declaring that the current operation was a very heavy burden on the bankrupt national economy.

 The crisis couldn’t be addressed by printing money, Jayasuriya said, urging decision-makers to take tangible measures to streamline public transport.

 The meeting chaired by President Gotabaya Rajapaksa, and also attended by Minister Gunawardena, the government has discussed ways and means of ensuring an uninterrupted fuel supply to maintain train and bus services. A statement issued by the Presidential Media Division (PMD) stated that arrangements would be made to provide diesel to private buses from service stations, operated by the SLTB.

Jayasuriya said that short, medium and long term plans were required to take the Railways to the next level. Asked to explain, GMR said that they would have to significantly increase charges for fuel transportation to cut down on losses. Jayasuriya pointed out that there was a huge difference in payments made to fuel bowsers and the CGR and in spite of discussions at various levels the issues at hand remained unsolved. When pressed for their response to the developing crisis, Jayasuriya said that they had made representations to relevant authorities. “We have also drafted a Cabinet paper in this regard. We are confident the government will address this issue soon.”

According to Jayasuriya, the second class ticket is priced double the third class ticket. Railway operated a profitable special train service, Jayasuriya said, underscoring the urgent need for thorough review of the entire service to meet any eventuality.