Feasibility of establishing an integrated railway-based containerised cargo transport network between the Port of Colombo and free trade zones in Sri Lanka

Abstract

A large percentage of Sri Lanka's exports and imports are generated by the manufacturing sector and originates from facilities dispersed throughout Export Processing Zones (EPZs) around the country. An efficient hinterland transport network is required between the Port of Colombo and these EPZs. However, road trucks are used as the dominant transport mode for moving containerised cargo to/from Colombo Port. This study proposes a dry port-based containerised import/export cargo transportation method using a railway network to connect the Port of Colombo and the EPZs under several alternative network configurations. This study conducts a questionnaire survey with 40 experts to identify issues with the current road-based container transport network and ascertain the benefits of proposed railway-based networks in Sri Lanka. A majority of respondents highlight the benefits of the proposed network from multiple perspectives along with several drawbacks with the current road-based network. Initially, the feasibility of two alternative dry port locations in Orugodawatta and Kerawalapitiya are analysed. A mathematical model is developed to analyse the feasibility of the proposed alternative networks. Finally, the optimum dry port location is selected as Aluthwaththa using a simulation-based Greenfield analysis approach. Results highlight the advantages of proposed networks under several scenarios. The study demonstrates a systematic approach to decision-making by optimising the local cargo handling process, where, Sri Lankan inland logistic operations will become more efficient, with total transport costs, environmental pollution, and transportation time decreasing significantly.