Development of appropriate investment models for multimodal transport terminals in Sri Lanka

Abstract

Though Multimodal Transport Terminal is a novel infrastructure development experience to Sri Lanka; the concept of “Multimodal Transport” is not. Nowadays the concept has become much popular than ever since it has been playing major role in international and local transportation in both passenger and cargo movements. The Government of Sri Lanka (GOSL) have taken necessary measures to introduce Multimodal Transport Terminals (MTTs) to the country’s transport family as it has been identified as a major solution to streamline the infected transport systems in the country. But no scientific research has been conducted yet to identify the best fit Ownership, Facility Management and Terminal operation models for the introducing MTTs in Sri Lanka. This is the gap that has been bridged by this research project. The project consists of three main objectives; 1) To identify the existing ownership, facility management and terminal operation models that are successfully practiced in transport terminals in the global context. 2) To examine the existing ownership, facility management and terminal operation models that are successfully practiced in different disciplines (including transportation) in Sri Lankan context. 3) To develop the best fit ownership, facility management and terminal operation models for multimodal transport terminals in Sri Lanka. The identification of existing ownership, facility management and terminal operation models that are successfully practiced in transport terminals in global context have been done covering all three main transport modes; maritime, aviation and land transportation and several scenarios are discussed with the different institutional structures applied including their successes and failures. Different models were introduced representing most of the components in Public Private Partnership (PPP) spectrum. Thus it has been concluded that most of the global scenarios with mega investments that have followed PPP frameworks have become successful. Further the PPP model provides the enough freedom for the private partners to improve their efficiencies and public sector influence vi helps to keep them on the correct track until it reaches the expected socio economical outcomes and the partnership always pushes the project to reach its maximum outcomes. The examination of the existing ownership, facility management and terminal operation models that are practiced in different disciplines (including transportation) in Sri Lankan context have been carried out by analyzing the scenarios across all three sectors maritime, aviation and land transportation and non-transportation disciplines. It has been concluded at the end of the analysis that there are several government owned and partially government owned models that are already practiced in Sri Lanka even without properly established direct legal support from the legislature. The government’s intention on future infrastructure projects is to invest with partially government owned structures with the participation of private partners as it allows them to concentrate more on social oriented projects where in others parties are not interested. PPP initiatives are not novel to the country; but they have been developed case by case as fulfill the requirements of the partners at that particular point. Unlike other countries with well-established PPP frameworks; Sri Lanka lacks common PPP framework adopted by government which is crucial for infrastructure development projects that bears a commercial value and to attract potential private partners. Having analyzed all the scenarios from global and local contexts mentioned in the first two objectives the solutions for the main research problem have been developed based on two structural formations. I. Public Models II. PPP Models Seven optional models have been introduced at the end of the analysis including four public models (GGG, GGP, GPG, GPP) and three PPP models ([G+P]PG, ([G+P] PP, ([PPP]+G) that can be applied successfully with in Sri Lanka. It has been highlighted that the current socio political environment of the country is yet not mature enough to bear the weight of some of the models introduced. Further, having considered the existing environment of the country; an especial implementation process for the proposed models has been introduced and it is suggested to initiate the application of the proposed models with “Public Models” (like GGP or GPP) and evaluate the progress of them and then move towards the “PPP Models” which have been concluded as the best fit sustainable models for MTTs in Sri Lanka. If it is the “PPP Models” that are most sustainable to the country; a well-established PPP framework is a must for the success of the MTT projects. This research has formulated “Final Draft of the PPP framework for MTTs in Sri Lanka”. And it is recommended as a future research opportunity which is a necessity before implementation the best fit models. (Key Words: Multimodal Transport, Ownership Models, Facility Management, Terminal Operations, Public Private Partnership, Framework)