SAARC REGIONAL MULTIMODAL TRANSPORT STUDY (SRMTS) FINAL REPORT COUNTRY REPORT FOR SRI LANKA Amal S. Kumarage Professor, University of Moratuwa, Sri Lanka April 2006 TABLE OF CONTENTS 1 COUNTRY PROFILE ___________________________________________________ 1 1.1 Geography _________________________________________________________ 1 1.2 Population _________________________________________________________ 1 1.3 Economy __________________________________________________________ 1 1.4 Trade _____________________________________________________________ 3 1.5 Tourism ___________________________________________________________ 7 1.6 Transport __________________________________________________________ 8 1.6.1 Early Development of Transport ____________________________________ 8 1.6.2 Inland Waterways ________________________________________________ 8 1.6.3 Land Transport __________________________________________________ 9 1.6.4 Current Land Transport Activity ____________________________________ 9 1.6.5 Ports _________________________________________________________ 10 1.6.6 Airports _______________________________________________________ 11 1.6.7 Transport Map _________________________________________________ 11 2 PROFILE OF CORRIDORS/SECTORS ____________________________________ 13 2.1 Aviation Sector ____________________________________________________ 13 2.1.1 Aviation Gateways in SAARC Region ________________________________ 14 2.1.2 Air Services Agreement between Sri Lanka and India ___________________ 16 2.1.3 Air Services Agreement between Sri Lanka and Maldives ________________ 17 2.1.4 Air Services Agreement between Sri Lanka and Pakistan ________________ 17 2.1.5 Air Services Agreement between Sri Lanka and Bangladesh ______________ 18 2.2 Maritime Sector ___________________________________________________ 19 2.3 Road Corridors ____________________________________________________ 23 i 2.4 Rail Corridors _____________________________________________________ 25 2.5 Inland Waterway Corridors ___________________________________________ 26 2.5.1 Talaimannar- Rameshwaran ______________________________________ 26 3 PROFILE OF GATEWAYS ______________________________________________ 29 3.1 Airports – Description of Airport Sector and Policies ______________________ 29 3.1.1 Bandaranaike International Airport (Colombo) ________________________ 29 3.2 Seaports – Description of Port Industry _________________________________ 30 3.2.1 Port of Colombo ________________________________________________ 30 3.2.1.1 Terminals, Berths, Quays & Other Facilities ______________________ 30 a) Jaya Container Terminal (JCT) ___________________________________ 31 b) South Asia Gateway Terminals (SAGT) ____________________________ 32 c) Unity Container Terminal (UCT) _________________________________ 32 d) Bandaranaike Quay ____________________________________________ 33 e) Feeder Berth _________________________________________________ 33 f) Prince Vijaya Quay ____________________________________________ 33 3.2.1.2 Other Facilities _____________________________________________ 33 3.2.2 Port of Galle ___________________________________________________ 34 3.2.3 Port of Trincomalee _____________________________________________ 35 4 RELEVANT CONFIRMED SECTOR DEVELOPMENTS _____________________ 36 4.1 Aviation__________________________________________________________ 36 4.2 Maritime _________________________________________________________ 37 4.3 Rail _____________________________________________________________ 40 4.4 Road ____________________________________________________________ 40 4.5 Ferry Transport ____________________________________________________ 41 ii 5 ISSUES/CONSTRAINTS TO INTRA-REGIONAL TRANSPORT _______________ 42 5.1 Aviation__________________________________________________________ 42 5.1.1 Infrastructure __________________________________________________ 42 5.1.2 Services _______________________________________________________ 42 5.1.3 Qualitative Responses ____________________________________________ 44 5.2 Maritime _________________________________________________________ 45 5.2.1 Infrastructure __________________________________________________ 45 5.2.2 Services _______________________________________________________ 46 5.2.3 Industry Responses ______________________________________________ 46 5.3 Ferry Transport ____________________________________________________ 47 5.3.1 Infrastructure __________________________________________________ 47 5.3.2 Services _______________________________________________________ 48 5.4 Land Transport ____________________________________________________ 48 6 TRAFFIC FORECASTS ________________________________________________ 49 6.1 Aviation__________________________________________________________ 49 6.1.1 Passenger – Overall National ______________________________________ 49 6.1.2 Cargo – Overall National _________________________________________ 51 6.1.3 General Observations ____________________________________________ 53 6.2 Maritime _________________________________________________________ 54 6.2.1 Overall Growth in Maritime Traffic _________________________________ 54 6.2.2 Growth in Container Sector _______________________________________ 54 6.3 Ferry Transport ____________________________________________________ 55 7 National Development Priorities and Scheduling ______________________________ 56 7.1 Aviation__________________________________________________________ 56 iii 7.2 Maritime _________________________________________________________ 56 Appendix A: Data for Aviation Sector SAARC Regional Operations To/From Sri Lanka Appendix B: Data for Maritime Sector SAARC Regional Operations To/From Sri Lanka iv LIST OF TABLES Table 1: Sri Lankan GDP (1990-2004) __________________________________________ 2 Table 2: The State of the Economy in 2004 ______________________________________ 3 Table 3: Trends in value of trade between Sri Lanka and the rest of the world ___________ 5 Table 4: Sri Lanka’s External Trade with SAARC Countries (2000-2004) – Rs Million ___ 5 Table 5: Quantities Exported to SAARC Countries (2004) __________________________ 6 Table 6: Quantities Imported from SAARC Countries (2004) ________________________ 6 Table 7: Foreign tourist arrivals in Sri Lanka, 1990 – 2003 __________________________ 7 Table 8: Tourist Arrivals from SAARC countries (2000-2004) _______________________ 7 Table 9: Transport Modal Shares: Sri Lanka (2001) _______________________________ 9 Table 10: Port Services (2003-4) _____________________________________________ 10 Table 11: Regional Transport Corridors _________________________________________ 13 Table 12: Sri Lanka’s Air Service with SAARC Countries _________________________ 19 Table 13: Road Length and Road Density (2001) ________________________________ 24 Table 14: Estimated Operational Vehicle Fleet (2001) _____________________________ 24 Table 15: Passenger Traffic on Indo-Sri Lanka Ferry Service (up to 1984) ____________ 26 Table 16: Potential for Ferry Services _________________________________________ 27 Table 17: Outline of Existing Airport Facilities __________________________________ 29 Table 18: Estimated Capacity Requirements of Existing Facilities up to 2025 __________ 36 Table 19: Identified Port Development Projects __________________________________ 38 Table 20: Summary of Infrastructure Requirements at BIA for year 2020 _____________ 42 Table 21: Capacity of Existing Passenger and Baggage Handling Facilities ____________ 43 Table 22: Summary of Facility Requirements for Passenger Terminal (2025) __________ 43 Table 23: Existing and Potential Enhanced Capacity of Existing Terminals (TEUs) ______ 46 v Table 24: Historic Air Passenger & Aircraft Traffic at Bandaranaike International Airport (1990-2004)_______________________________________________________________ 49 Table 25: Tourist Arrivals from SAARC Countries (2000-2004) _____________________ 50 Table 26: Forecast Results of Total Passenger Movements at BIA (2003-2013) _________ 51 Table 27: Total Passenger Demand (2006-2025) _________________________________ 51 Table 28: Historic Air Cargo at Bandaranaike International Airport (1990-2004) _______ 52 Table 29: Forecast Results of Total Cargo Movements at BIA (2003-2013) ____________ 53 Table 30: Total Cargo Demand (2004 to 2025) __________________________________ 53 Table 31: Forecast of Domestic Container Traffic for Port of Colombo _______________ 54 Table 32: Forecast of Transhipment of Container Traffic to the Indian Sub Continent ____ 55 LIST OF FIGURES Figure 1: Transport Map of Sri Lanka __________________________________________ 12 Figure 2: SAARC Air Routes from Sri Lanka ___________________________________ 15 Figure 3: SAARC Maritime Routes from Sri Lanka ______________________________ 22 vi PREAMBLE Terms of Reference At the 12 th SAARC Summit held in January 2004 in Islamabad, the Heads of State/Government emphasized the need to strengthen transportation, transit and communication links in the region for accelerated and balanced economic growth in the region. Therefore, it had been decided to conduct a comprehensive regional multimodal transport study with a view to developing the transport sector within the region in an integrated manner. As such, the SAARC Secretariat with financial assistance from the Asian Development Bank has initiated the SAARC Regional Multimodal Transport Study (SRMTS) in order to enhance transport connectivity among SAARC Member States to promote intra-regional trade. The Inception Workshop for