Electrification of transport sector

a solution to economic crisis

by damith
January 14, 2024 1:15 am 0 comment 683 views

By Rasika Kotudurage

The transportation sector can be pointed out as a major issue among the factors that directly affect the economic crisis. To recover from the current economic crisis, it is essential to make a big change. This article is compiled from the views expressed by Professor Emeritus Amal Kumarage of the Transport Management and Supply Engineering Department of the University of Moratuwa. Prof. Kumarage is a scholar with extensive experience in sustainable development strategies.

Everyone in the country is currently going through a very difficult period economically. What many people are waiting for is a solution that can help us rise from this situation as soon as possible. There are many factors that lead us to focus on this. These can be classified as political, economic and social. It is very important to find solutions accordingly. Here, my attention is directed to a matter that directly affects the economy – transportation. This is aptly termed mobility. We want to travel from place to place. Transportation is a structured method of providing facilities for this. This field is expanding and progressing both locally and globally. A large part of our economy depends on how we can accomplish tasks.

Transportation

We need transportation to make and spend money. Keeping a balance between these two functions is essential. But looking at the past, importing vehicles costs approximately US$ 20 billion in forex per year. If so, we have to have an income proportional to the amount spent. But we cannot earn this amount by manufacturing goods and exporting them. Therefore, we spend the foreign exchange earned from the export of labour to Middle East countries.

Eight percent of the foreign exchange earned is spent annually on importing vehicles and spare parts. Also, 16 to 17 percent is spent annually to import crude oil. That is because the price of a barrel of crude oil is between US$ 80-90. In addition, we spend three to four percent of foreign exchange annually on building and maintaining highways. So about 25-30 percent of the annual goods imported into Sri Lanka are spent on the transportation sector. This value is very high compared to other countries. The main reason for this is the absence of domestic car manufacturing.

We import cars in large numbers. Currently, the number of private vehicle owners in Sri Lanka is 257 per 1,000. Compared to the developed countries, as a country with a per capita income of less than US$ 4,000, we are ahead in terms of importing vehicles. It appears that we own vehicles beyond our economic level. But we are neither a car manufacturing country nor a crude oil producing country. We have to import all that by spending our foreign exchange.

The main reason that has affected our foreign exchange deficit is the lack of planning to reduce such expenses. On the other hand, maintaining a lifestyle that costs more than our income has also led to this. Most people in our society try to build their social values not by leading an ethical life but by buying a lot of expensive consumer goods. Due to this, a higher percentage of the dollar income received by the country has to be spent on high-maintenance lifestyles. The amount spent on traffic, auto parts, crude oil and highway maintenance is more than the foreign exchange spent on our food, milk powder, medicine and other essential consumer goods.

So we have to change. The alternative is to strengthen public transport. Although we have intervened and presented facts on this issue on many occasions, we have not been able to make it a reality so far. But like a blessing in disguise, we have a great opportunity for this from several sides. One of them is the economic crisis. Also, the percentage of carbon released into our environment is increasing. The Government of Sri Lanka signed the Paris Agreement in 2016 to bring carbon emissions to a minimum value and has signed many other such international agreements. If we do not try to fulfill these accords as much as possible, we cannot avoid falling into a very difficult position globally. So we have to make some effort for that. On the other hand, electric vehicles have recently entered the field of transportation. Its technology has gradually improved and advanced. Its cost has become more affordable. For example, there is not a huge price gap between a petrol motorcycle and an electric motorcycle, but its running costs are very low and carbon emissions are zero.

Economic strategy

Last year, the Government moved to a low-carbon development strategy as an economic strategy, and its primary intention was to adopt a new economic development pattern that reduces carbon emissions as much as possible. But currently, the transport sector accounts for 50 percent of the carbon emissions. Therefore, the best option for this is to establish an electric transportation service in the country.

With the Minister of Transport, Highways and Media Dr. Bandula Gunawardena focusing on electric transport, the Cabinet has taken approval to prepare a new policy. After inviting me and a group of other experts, we happily accepted these tasks and we saw that the costs can be brought to a minimum level by electrification. That means that the country can maintain the transport sector without being a burden on the economy.

With the electrification of the transport sector, there is no need to import such a large amount of oil, and at the same time, it is possible to produce the required Renewable Energy in our country. Although it is at a minimum level today, it can be gradually increased to 60 to 70 percent. On the other hand, there is no automobile manufacturing industry in our country. That is because the ability to reach the current technical level is very low. But electric vehicles do not require sophisticated technology. It does not have an engine as its main components, only a motor and a battery. Also, if we move to electric vehicles, there is a great potential to produce vehicles in this country. Accordingly, it is also possible to provide a significant contribution from within the country for local needs. Then we get a chance to re-enter the automotive industry. We will also be able to reduce a significant percentage of vehicles being imported.

It is a timely step to use this electrification process for public transport. This can create a transport service that can attract more people. Therefore, it is appropriate to proceed with an electric bus service as the basic step of this project. If they are imported and run on electricity instead of petrol, even if the price of oil is reduced to some extent, the cost of importing vehicles and the necessary accessories will have to be borne in the same way. Also, the fuel burning and carbon emissions that occur in traffic jams will also remain the same. Therefore, rather than electrifying a petrol vehicle to fully reap its benefits, one must move to a fully electric transportation service.

On the other hand, the tendency to leave public transport and acquire private vehicles needs to be changed. Considering the population in the Western Province, about 60 percent of the transportation sector should be public transportation, because it is easy to provide good passenger service as the population increases.

Traffic jams

Even if a person has a car, if there is a good public transport service, he or she will be reluctant to drive a car and come to Colombo. It is easier than being stuck in traffic jams and struggling to find a safe place to park. But from time to time there is no public transport service and they come to Colombo bearing such difficulties. In order to change this situation, if the quality of public transport service is started in a new phase, traffic congestion, carbon emissions, the money spent on transportation will be reduced and human relations will also improve.

Therefore, the third benefit can be the increase of public transport. On the other hand, due to high carbon emissions, many people suffer from respiratory diseases and treatment for these patients also costs a lot of money. This will bring the diseases to almost zero and reduce the cost.

At the beginning of 2000, public transport, which was around 70 percent, has now decreased to 39 percent for the first time in history. According to that, it appears that 31 percent of people have left public transport in the past 23 years. Such situations have caused us to fall into such a crisis. But through this new strategy we will be able to build local industries and address this issue too.

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