Government makes plans to privatize railways in the south

by Staff Writer 05-06-2018 | 8:51 PM
Colombo (News1t) - Last week, the Cabinet approved a call for an international tender to build a railway line linking Beliatta, Hambantota, Kataragama and Mattala airport stretch on a Build Operate and Transfer (BOT) basis. According to the Secretary to the Ministry of Transport, G. S. Vithanage, The company undertaking the project would be required to construct a rail track of nearly 100km, install signalling systems and operate the services within the district. It could decide on the fare to be levied, deploy its own locomotives and carriages for passenger or cargo transportation and levy charges for the state-sector trains entering the area and using the services. In turn, if the company’s locomotives or carriages use Sri Lanka Railway tracks and its services, it would have to pay for it. The secretary said the company would also be able to carry out commercial activities such as putting up restaurants, cargo storage facilities and shopping complexes in the areas coming under its purview. The Government’s initial estimates show that the project will cost around US$ 800 million, but, it could be higher depending on the quotations. The trains would serve the Hambantota Port, the Mattala airport and Kataragama pilgrims. The railway trade unions have already expressed displeasure over the project. President of the Station Masters Union (SMU) Janaka Fernando says The Government’s proposal to privatise the Hambantota Railways is a clear indication that the State wants to create a Chinese colony.