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Public-private partnership for railways?

by Rajmi Manatunga

The railway service is likely to become a public-private venture with transport authorities considering a proposal to obtain private sector assistance to make the service more efficient and productive.

A Transport Ministry spokesman told the Daily News that a public-private partnership was among the options to improve the non-viable service.

As a preliminary step the Ministry has signed an agreement with an Indian company called 'Rights of India' for a study on the possibility of joint maintenance of the service.

Commenting on the proposal to seek private sector assistance for the railways, General Manager of Railways Priyal de Silva said it would help the loss-making service. "There are various ways in which the government could get private sector assistance to improve the service. In England maintenance of rail tracks and fuelling is carried out by private investors (Railtrack) while the government controls the administration and the management. There are several other countries where the management has been handed over to the private sector and a third category where the two sectors are jointly involved in all aspects of the operations," he said.

De Silva said there should be an authority or a rail regulator to supervise the progress of the public-private partnership and monitor any malpractices.

The final report of the study conducted by ministry officials in collaboration with the Indian experts is expected to be handed over to the Transport Minister.

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