Railway carries about 105 million passengers, almost 1.6 Million metric tonnes of freight per annum. Accordingly it performs 4.4 bn Passenger km and 138 million freight tonne- Km. annually. Although it has been identified as Economical mode of Transport for Passenger as well as freight there is lot of room for enhance it’s contribution for the development of the country. It is planed to increase railway share of passenger transport from percent 5% to 10% and Modal share of freight transport from 2% to 10% by 2010. This objective is to be achieved by focusing on the following target and strategies action.
 
     
  Short Term  
    Target  
    Improve cleanliness & quality of coachers / stations  
    Reduce train delays by 25 % & accidents/ derailment 50%  
    Remove all speed restrictions less than 8 Km Ph  
    Establish management structure based on performance evaluation and monitoring process  
    Enhance the percentage of efficiency  
    Put in place a methodology for utilization of public funds corresponding to specific services  
    To make the present negative contribution in to a positive one  
         
  Medium Term  
   
Target   Projects
Revival of Freight Service   Remove all temporary speed restrictions
Petroleum Products : 20% ->60%   Reduce train delays by 25 % & accidents/ derailment 50%
   Cement   Reduce journey time : Eg. FOT-ANP journey in 3 hours by end 2008
   Food Item   Re-establishment of local building/rehab. of Carriages (Saving expected per carriage : Rs 20 Mn) Signaling & Communication System.
   Target: Doubling the revenue toRs 500 Mn   Establishment of Rail base container depot
Special Value Added train Services      
Rationalization of fares      
Commercialization of Assets      
Attracting more passengers and Freight through image building      
 
       
  Long Term  
   
1. Expansion of the network   2. Technology “leap-froging”   3. Commercialization
  Matara-Kataragama     Faster trains and speedy tracks     Making SLR financially viable
  Kurunegala-Dambulla     Communication and Information technology     Broadening the horizons
  Ratnapura-Embilipitiya     Electrification        
  Other                
 
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