Monorail Implementation

Project - Phase 1

Malabe

Talahena

Robert

Gunawardana

Mawatha

National Hospital

Union Place

World Trade Centre

Colombo Fort

Existing problem

Heavy traffic congestions in Malabe corridor

• highest number of vehicles entering the city per day (60 000)

• second highest number of persons entering the city (150,000)

• no rail based public transport system

• lack of space for further widening of the road network

Change we wish to achieve

• Reduce traffic congestion

• Encourage the usage of public transport

services

Stakeholders Reasons

Ministry of Transport

Have embarked the project under the Urban Transport

Development Project for Colombo Metropolitan Region

Urban Development

Authority

Road Development

Authority

Japanese International

Cooperation Agency

(JICA)

Assistance

Fund the first phase

NTC Providing relevant policies, regulations and plans

Korean investors furnishing an economic study and EIA on the route and more

details on the type of technology that will be provided

Government Providing necessary acts and approve them at the parliament

Capital cost of building the line

General Public Users

Existing overall socio-economic policy decisions

affecting this project

• regulating the public transport fares at low levels (inclusivity)

• inability to provide more equitable opportunities for all income groups such as

different classes of service (equity)

• financing a government subsidy through other tax sources including foods

consumed by people in rural regions who do not travel on the monorail due to

its high operating and maintenance cost (cost)

• socio policies regarding the democracy of the Members of Parliament and

VVIPs as a monorail over the road on concrete poles in the middle of the road

leading to Sri Jayawardhanapura can disturb VIP movements

Desired outcomes expected from the project

1. Enhance Mobility for daily commuters in Colombo metropolitan area and

its suburbs

2. Enhance Accessibility for people

3. Support economic vitality of the metropolitan area through enabling

productivity and efficiency

4. Protect and enhance environmental quality

5. Ensure coordination among the planning and development activities of the

county

Objectives to achieve the above set of goalsGoal 1 - Enhance Mobility for daily commuters in Colombo metropolitan area and its suburbs

• Minimize the vehicular traffic flow on the city

• Improve safety on the road network

• Provide affordable, high quality, comfortable public transport service

Goal 2 - Enhance Accessibility for people

• Enhance the connectivity of key County activity centers, employment centers and public services

• Enhance access to land uses

• Better manage connectivity trough multimodal terminals and the Colombo Transport Hub in Pettah

• Ensure all citizens including differently abled and persons who lack access to automobiles are provided with adequate levels of access to the services

Goal 3 – Support economic vitality of the metropolitan area through enabling productivity and efficiency

• Maximize investment in transportation system from private sector

• Relieve congestion and transport costs

• Provide inclusive and equitable development through equal distribution of benefits to the country

Goal 4 - Protect and Enhance Environmental Quality

• Minimize air quality impacts of transportation investment

• Encourage measures to reduce fossil fuel consumption

• Preserve the natural and environmentally sensitive areas

• Preserve and enhance the character of the historic and existing communities

Goal 5 - Ensure Coordination among the Planning and Development Activities of the

County

• Incorporate new technologies to enhance capacity and extend the useful life of facilities

• Eliminate conflicts between transport modes

• Encourage the use of Intelligent Transportation Systems

Implementation of the project

Top- down approach

• The decision to implement this project will be decided on the basis of availability offunding sources

• The Government will take the final decision to implement whatever the possiblemeasures to streamline the traffic along the city streets and to develop a newtransport mode such as monorail system to make the public transport system moreefficient on a short term, medium term and long term basis

Bottom- up approach

• The study was started in May 2012 after JICA gave a grant for a comprehensivestudy to reduce the traffic congestion in the Colombo Metropolitan area and suburbs

• Feasibility studies are being carried out to recognize the passenger demand and theaffordability for the public to use this transport system to the masses

Existing transport policy conditions

*State Railway Operations

|linkage between rail and road

| participation of the private sector

*Environmental Principles

|concerns air , noise, flora and fauna

|transport technologies with less polluting

*Energy

|promoting public transport

|improved vehicle technology

*Modernization of Technology & Research

|encourages innovation ,modernization of transport sector

|supports the research, development

*Safety

*Fares

* Provision of a Choice on Modes of transport

|BRT, LRT, MRT systems

|monorail

* Improved Sustainability

Transport policy reform required

•Participation of the private sector

•Optimum composition of public sector and private sector entities

•New card system for travelling fare

•New price classes for passengers

Cost involved the investment

1. Construction cost

• Cost varies with several factors like “total length of the system,

topography(terrain) ,speed, land acquisition and numbers of station needed.

• Most of the construction materials needed are made with pre casted

concrete.

• Minimum land acquisition is needed. Only at stations

2. Operation and Maintenance Cost

• O & M cost is only for the rolling stock and stations.

• In rolling stocks maintenance is needed only for motors and tires

• Electricity is the main operating cost driver.

3. Life Cycle Cost

• Cost of rolling stock

Cost Per km cost Total cost

Construction cost $ 42 Mn $ 1.3 Bn

O & M cost $ 2.5 per car km $ 58 per trip

Recourses : Urban development plan. (ComTrans), http://www.lankabusinessonline.com/news/sri-lanka-to-build-us$1.3bn-monorail-with-japan-

finance/1056043503 , http://www.monorails.org/

Equity impacts

•This project needs immense investment, and the source is taxes and loans. But

the whole country has to repay regardless whether they use it or not.

•Would have to charge higher fares due to the high investment and O & M,

high quality service provided. Thus making it unaffordable for poor people.

Investment

Option 1 Option 2 Option 3

Investment for both

rolling stock and

infrastructures are borne

by the government. Total

operation is under the

government control (SLR)

Government invest for

the infrastructure is borne

by the government.

Operation and investment

of rolling stocks are borne

by both public and private

sector(PPP).

A BOT system where an

investor is invited to make

investment, operate and

then transfer it.

Sustainability

• Financial stability will be mainly achieved through the revenue generated from the

money coming from the monorail passengers.

• Social sustainability will be achieved through creating new opportunities for

business environment, Reduction in road accidents, Increased land values, Job

opportunities through the new project, Urban development, Increase education and

employment access.

• Reducing congestion cost, crashes, energy imports and pollution costs will ensure

environmental sustainability.

• Economic sustainability can be achieved by;

• Improving access to key County activity centers, employment centers and

public services

• Improving the accessibility and the mobility of the factors of production.Economic

Social Environment

Sustainability

Risks and Disadvantages of a Mono-Rail

System

High Initial Cost

This is because the system requires the elevated track and supports, which

are more costly than a basic railroad.

Might have to charge a higher price initially which will distract private

vehicle users.

Such a condition will jeopardize the expected outcomes of the project.

In case of an emergency ?

The greatest drawback for monorails is what happens when something

does go wrong, either with the track or train. On a standard railway there

are many lines a train can travel on; on a monorail it is limited to one. If a

section of track needs to be replaced, the entire system needs to be shut

down resulting in no service rather than reduced service.

• Compatibility among different versions;

• Another disadvantage of monorails is their incompatibility with other rail

systems, and often between monorails systems by differing manufacturers.

Monorail infrastructure and vehicles are often made by separate manufacturers,

with different manufacturers using incompatible designs.

• Turnouts;

• Especially at high speeds, may be marginally more difficult compared to

conventional railway points, although certainly not impossible.

External costs of the project

Monorails harm the aesthetics of the environment

The land and property values will decrease in the areas in between

stations

Equity issues

• Solutions

Building the station architecture designed to match the surrounding

environment.

The equity issue is minimized by providing several classes of

compartments.

Consumer surpluses and the producer surpluses

Consumer surplus

• Time saving

• consumer convenience

• reduction of private vehicles

Less environmental pollution

Fuel saving

Producer surplus

•Healthy profits

•less wastage

•customer satisfaction

•Less damage to environment

Regulations For The Project

• The government will have the authority to handle the whole mono rail

system.

• Sri Lanka railway department will have the power to decide rates and

adjust the rates of mono rail system.

• The ministry of transport Sri Lanka will assist the policy and planning

of the project.

Alternative A: Introduce a Bus Rapid Transit(BRT) system from Malambe to Pettah.

Alternative B: Construct a new railway line from Pettah to Malabe and implement a new

train service from Malabe to Pettah.

1 2 3

Origin Passenger demand Distance Ticket price Revenue (Rs)

Per day

Malabe =150,000*.35*.12

=6300

8km =9*10

=90

=6300*80*2

=1008000

Battaramulla =150,000*.35*.09

=4725

13km =16*10

=160

=4725*130*2

=1228500

Colombo =150,000*.35*.79

=41,475

21km =21*10

=210

=41,475*210*2

=17419500

Revenue per year = Rs. 6149.5 million

Revenue calculation

NPV calculationY-0 Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10

INVESTMENT

(Rs m)

(13160

0)

REVENUE

(Rs m)

6149.5*

1.1

6149.5*

1.12

6149.5*

1.13

6149.5*

1.14

6149.5*

1.15

6149.5*1

.16

6149.5*

1.17

6149.5*

1.18

6149.5*1

.19

6277.6

*1.110

OPERATING

COST

(Rs m)

8.67*1.1 8.67*

1.12

8.67*

1.13

8.67

*1.14

8.67*

1.15

8.67*

1.16

8.67*

1.17

8.67*

1.18

8.67*

1.19

8.67*

1.110

Scrap value after 20 years 12110

NET CASH

INFLOW

(Rs m)

6755 7430.5 8173.5 8991 9890 10879 11967 13164 14480 15928

D.F(@10%) .9090 .8264 .7513 .6830 .6209 .5644 .5131 .4665 .4241 .3855

PRESENT

VALUE

(Rs m)

6149.5 6149.5 6149.5 6149.5 6149.5 6149.5 6149.5 6149.5 6149.5 6149.5

Net present value = 3500 millions

Payback calculation

Year Net cash inflow(Rs m) Cumulative N.C.F (Rs m)

Y1-19 6149.5 116840.5

Y20 6149.5 122990

Payback period = 21years 4months

IRR calculation

NPV @ 20% D.F =6771.1*.8333+7448.2*.6944+8193.1*.5787+9012.4*.4822+9913.6*.4018

+10905.0*.3348+11995.5*.2790+13195*.2325+14514.5*.1918+30671*.161

5-(25972)=15797.5

NPV @ 10% D.F =3500

IRR = 12.367%

Any Questions????????

Thank You !!!