[🇧🇩] Bangladesh Railway

[Saif]

WB resumes TA project for BR to help it go green

After more than one and a half decades, the World Bank is coming forward with its technical assistance to conduct a feasibility study on greening the operations of Bangladesh Railway (BR), officials said on Saturday. The global lender has recently proposed to provide US$6.0 million in assistance u

thefinancialexpress.com.bd

WB resumes TA project for BR to help it go green
FHM Humayan Kabir
Published :
Apr 05, 2025 23:47
Updated :
Apr 05, 2025 23:47

After more than one and a half decades, the World Bank is coming forward with its technical assistance to conduct a feasibility study on greening the operations of Bangladesh Railway (BR), officials said on Saturday.

The global lender has recently proposed to provide US$6.0 million in assistance under the "Green railway transport project preparation facility" under which a massive green-railway plan would be framed, said a senior official at the Economic Relations Division (ERD).

About one and a half decades ago, the Washington-based lender almost put on hold its support to BR for reasons like failure to bring expected reforms in improving the services, and the Padma Bridge construction scam.

Between 2009 and 2011, it provided around US$40 million as "Bangladesh Railway reform programmatic development policy credit", which was the last financial support to the state entity.

Meanwhile, the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), European Investment Bank (EIB), and Korea continued their support to develop the BR.

Insiders say lack of expected outcome from the railway reforms under the WB's last support in 2009 and Padma Bridge construction project scam were the key reasons for the suspension of the support.

In 2012, the World Bank suspended its $1.2 billion loan for the Padma Bridge project in Bangladesh, citing corruption concerns and the government's unsatisfactory response to investigations.

The BR has been a losing concern of the government for a long. Around 60 per cent of BR's operating revenues are from passenger services, followed by freight services with 20 per cent share.

Among the revenues from passenger services, intercity trains are the largest contributor, accounting for some 89 per cent.

Fare of intercity trains is fixed reasonably higher than those of local trains. Bangladesh Railway increased intercity trains and decreased local trains to focus on more revenue-generating segments for commercial-oriented operation.

Under the WB's proposed $6.0 million support, BR would conduct a feasibility study and prepare conceptual designs for making Kamalapur Railway Station and Airport Station multimodal hubs, for the improvement of the Dhaka-Chattogram freight corridor and Chattogram railway workshop and purchasing some locomotives for improving services, targeting elimination of carbon emission, a BR official said.

Based on the feasibility study and conceptual designs under the proposed TA project, the BR would undertake some investment projects for making the Kamalapur and Airport railway stations as multimodal-transport hubs, Dhaka-Chittagong a freight corridor and the proposed other infrastructure development of the BR, he added.

Meanwhile, the Planning Commission completed a Special Project Evaluation Committee meeting and the ERD arranged an inter-ministerial meeting for implementing the project.

As part of the project, there will be a feasibility study on reconstructing the station building yards, including the relocation of the existing operation and maintenance facilities to facilitate the construction of multimodal transport hubs at the Kamlapur and Dhaka Airport stations, said a PC official.

He said: "If we find the TA project viable, we will go for taking up investment projects. The TA and future projects will make BR's operation more green and environment friendly."

Reduction of carbon emission would be the main focus of the WB-supported TA project as well as the future investment projects, the BR official said.​

 

[Bilal9]

Cox's Bazaar iconic Railway Station in Southern Bangladesh, possibly the nicest, newest and most modern railway station in South Asia. Designed and built entirely using local resources.

More in the next post

 

[Bilal9]

 

[Bilal9]

Yet more of the CXB Railway Station

 

[Saif]

Govt initiates Tk 935.1 million project for green railway

The government has initiated a move to implement Taka 935.1 million (93.51 crore) project in a bid to conduct necessary preparations for operating green railway transport system in the country. Bangladesh Railway under the Ministry of Railways will implement the project titled “Green Railway

thefinancialexpress.com.bd

Govt initiates Tk 935.1 million project for green railway
Published :
May 03, 2025 17:48
Updated :
May 03, 2025 19:10

The government has initiated a move to implement Taka 935.1 million (93.51 crore) project in a bid to conduct necessary preparations for operating green railway transport system in the country.

Bangladesh Railway under the Ministry of Railways will implement the project titled “Green Railway Transport Preparatory Technical Assistance” with an estimated cost of Taka 93.51 crore to be completed by March 2027.

Of the total project cost, Taka 283.7 million (28.37 crore) will come from the Government of Bangladesh portion, while the rest, Taka 651.4 million (65.14 crore) as a project loan from the IDA of the World Bank.

The project has recently been approved by the Executive Committee of the National Economic Council (ECNEC) at its meeting.

The project area covers Dhaka Railway Station in Kamalapur and Dhaka Airport Railway Station under the Dhaka-Chattogram corridor, from Faujdarhat to the Chattogram Goods Port Yard (CGPY) and then CGPY to Bay Terminal at Patenga in Chattogram, and Mirsharai upazila in Chattogram.

The World Bank funding will be used for the project involving carrying out a feasibility study for the expansion and reconstruction of the station building and other facilities at Airport Railway Station, conducting a feasibility study for the relocation of existing operational and maintenance facilities, and reconstructing the station building yard to create a multimodal transport hub at Kamalapur Station.

Besides, the project objectives also include establishing rail connectivity from Faujdarhat to the Goods Port Yard and Bay Terminal in Chattogram, and enhanced rail links in the Mirsharai Economic Zone.

Talking to BSS, a Planning Commission official said that the Physical Infrastructure Division of the Planning Commission held a meeting of the Special Project Evaluation Committee (SPEC) on February 12, 2025, where the Planning Commission recommended implementing the project subject to the fulfilment of some conditions.

The official said the World Bank has initially given consent to provide $6 million as a Project Preparatory Advance (PPA) from the project's main loan.

As part of the project, there will be a feasibility study on reconstructing station building yards, including the relocation of the existing operation and maintenance facilities to facilitate the construction of multimodal transport hubs at the Kamalapur and Dhaka Airport stations.

There will be a feasibility study on the development of rail connections from Faujdarhat to the Goods Port Yard and Bay Terminal in Chattogram.

The purchase of freight locomotives, relief trains, and haulage, as well as the development of rail connection infrastructure in the Mirsharai Economic Zone, will be financed by the main project. Once the green railway transport system is launched fully, then there will be less carbon emission, which would also help to minimise environmental pollution.

The Planning Commission official said that the purpose of the Green Railway Transport is to enhance the overall capacity of the railway management alongside improving its standard of services in a bid to develop and modernise properly the railway infrastructures as well as developing a sustainable and environment-friendly transportation system.

An improved railway transportation system will also ensure easier communication, reduce manifold the transport cost, help flourish trade and commerce and thus create employment opportunities, added the official.

Earlier, the World Bank issued an aide-memoire where it said it plans to finance the technical assistance project along with the main investment project.

The project has been included in the new list of foreign-funded unapproved projects under the Revised Annual Development Programme (RADP) for the current fiscal year (FY25). A feasibility study will be conducted under this project.​

 

[Saif]

Dhaka-Ctg connectivity: is bullet train the best solution?

The Dhaka-Chittagong corridor serves as a critical lifeline for Bangladesh, primarily due to Chittagong's role as the principal seaport handling most of the country's import and export activities. As Dhaka faces growing pressure from overpopulation and chronic traffic congestion, positioning Chitta

thefinancialexpress.com.bd

Dhaka-Ctg connectivity: is bullet train the best solution?
Jabed A Khan
Published :
May 07, 2025 23:28
Updated :
May 07, 2025 23:28

The Dhaka-Chittagong corridor serves as a critical lifeline for Bangladesh, primarily due to Chittagong's role as the principal seaport handling most of the country's import and export activities. As Dhaka faces growing pressure from overpopulation and chronic traffic congestion, positioning Chittagong as the true commercial capital becomes inevitable. Therefore, establishing faster, more efficient commuting between these two cities is not just desirable -- it is imperative.

Despite the relatively short distance, air travel between Dhaka and Chittagong has gained unexpected popularity -- an indication of inefficiencies in current ground transportation. Train journeys take around five hours, and buses often face unpredictable delays. Although the government once explored a bullet train, the proposal was shelved due to high costs and impractical ticket pricing for the average traveler. A more pragmatic and economically sound solution lies in the long-discussed plan to connect Laksham with Narayanganj. This alignment could reduce the rail distance by approximately 90 kilometers. Furthermore, upgrading existing infrastructure -- completing double-lane tracks, reinforcing the railway bed with adequate stone ballast, and converting the meter-gauge line to broad-gauge -- could reduce journey time to roughly three hours. This will enable Bangladesh Railway to recover project costs easily due to shorter journey times and lower operating expenses, while keeping ticket prices unchanged. Moreover, it will allow an increase in daily train trips from the current two to four, resulting in better revenue opportunities for Bangladesh Railway.

Freight transport also deserves focus. A significant portion of the country's exports are produced in the Savar-Gazipur region, relying on costly and inefficient road transport for both raw materials and finished goods. Establishing a railway link to the seaport could cut transportation costs, improve delivery times, and reduce road-related risks -- while also easing traffic congestion on the Dhaka-Chittagong highway and enhancing overall efficiency. Instead of pursuing another expensive elevated expressway, smart upgrades to the existing highway -- such as adding service lanes and replacing U-turns with U-loops or underpasses -- can improve traffic flow and reduce commute time to 3-4 hours. The long-standing belief that bus operators oppose railway improvements can be addressed through mutual gains. With faster roads and railways, let them run more trips, lower fares, and attract more passengers.

Bangladesh must adopt a multimodal transport strategy, investing in rail and road where it matters most. Modernising the Dhaka-Chittagong corridor will strengthen logistics, promote decentralisation, and fuel economic growth. The time to act is now.

The writer is a senior banker and social altruist​

 

[Saif]

Bangladesh Railway: Costs exceed double the profit

Short, mid and long term work plans to curb costs. Some sectors have been identified for cost-cutting

en.prothomalo.com

Bangladesh Railway: Costs exceed double the profit
Anowar Hossain Dhaka
Updated: 16 May 2025, 15: 25

Bangladesh Railway is spending more than Tk 2.5 to earn Tk 1. This state-owned public transport agency has been running on loss for years. The railway has taken a series of initiatives to reduce this gap between income and expenditure. Their target is to reduce the gap to below Tk 2 per Tk 1 profit within a short time. The government wants to make the railways profitable in the long term.

The railway sources say the authorities have taken up short, mid and long-term plans for cost cutting. The railway wants to stress on curbing maintenance costs instead raising fares and increase revenue through operating more trains on routes that make more profit and by leasing out the vast land properties owned by Bangladesh Railway. Besides, it has set a target to reduce maintenance waste.

Railway figures show it earned Tk 8.36 billion in the six months from July to December last year from passengers, freight and other sectors. At the same time, it spent Tk 21.48 billion. The deficit from the railways stands at more than 20 billion on average each year in recent times. The railway cost was Tk 1.45 for earning Tk 1 in 2005.

In case of the ratio of income and cost, the daily expenditure of the railway is taken into account. The daily expenditures include salary-allowances, fuel cost, maintenance cost and pension and arrears of retired employees.
According to the Bangladesh Railway, since independence, it made profit only once in the 1998-99 fiscal. The cost was Tk .96 for an earning of Tk 1 that year. However, the gap between cost and earning only grew after that.

A company’s ratio of income and cost can be determined by ‘operating ratio’. It indicates how efficient and profitable a railway system is. Operating ratio is basically total cost in a certain period divided by the income in the same time. The more the operating ratio, the weaker the company or an organisation is considered.

In case of the ratio of income and cost, the daily expenditure of the railway is taken into account. The daily expenditures include salary-allowances, fuel cost, maintenance cost and pension and arrears of retired employees.

A significant portion of railway’s income comes from transporting cement, fertiliser, jute, fuel and food products. It has also been dwindling over the recent few years. No effective initiative has been taken to increase freight train services
The railway’s main sources of income are freight and passengers. Apart from that, the railways also earn a little leasing out its lands.

Railway sources say the operational cost of Bangladesh Railway has increased at a rate of 10 per cent in recent years. However, the growth of revenues is less than 5 per cent. A significant portion of railway’s income comes from transporting cement, fertiliser, jute, fuel and food products. It has also been dwindling over the recent few years. No effective initiative has been taken to increase freight train services.

During the 15-year-rule of Awami League, more than Tk 1 trillion was spent for railway’s development under different projects. Most of this money was foreign loans. The government now is paying the instalments for loans against various mega projects including the constructions of Padma Bridge Rail Link and Chattorgram-Cox’s Bazar railway route. However, this huge expenditure is not taken into account in operating ratio.

Speaking to Prothom Alo, Shamsul Hoque, professor of civil engineering department at Bangladesh University of Engineering and Technology (BUET) and transport expert, said it’s difficult for the state to bear the additional cost for the gap between income and expenditure. A solution must be found for this.

He further said new railway tracks, engines and coaches were purchased recently at a huge cost. These will get old with time resulting in a rise in the maintenance cost. As a result, the gap between income and expenditure is likely to increase further.

Various initiatives for cost cutting

Bangladesh is among the top countries in terms of construction cost of roads and railway infrastructure. There are criticisms regarding the implementation of unnecessary projects and extension of project deadlines several times during the rule of Awami League government.

The interim government has taken several initiatives to reduce project costs after taking over. Besides, railways ministry adviser Fouzul Kabir Khan also gave directives to curb daily expenditures. Following that, several sectors have been identified for cost reduction.

It’s difficult for the state to bear the additional cost for the gap between income and expenditure. A solution must be found for this. New railway tracks, engines and coaches were purchased recently at a huge cost. These will get old with time resulting in a rise in the maintenance cost. As a result, the gap between income and expenditure is likely to increase further---Shamsul Hoque, BUET professor and transport expert.

First, the authorities sought opinions from different divisions regarding what needs to be done to increase the income and reduce the expenditure of the railway. After that, the railways secretary and director general held several meetings with the top officials in the last six months. Different short, mid and long-term work plans were prepared in these meetings. On 30 April, the Planning Commission, railways ministry and Bangladesh Railway held a joint meeting to review the proposals regarding increasing revenue.

Relevant sources said railways spent Tk 35.48 billion in operations in the 2023-24 fiscal. Of this, Tk 9.46 billion were spent for pensions of retired railway officials and employees. There is no way to reduce this cost. However, the railway wants to bear the cost from the budget allocated for the finance ministry as it is for other agencies and directorates of the government.

Apart from that, the railway is also stressing on avoiding unnecessary purchase and reasonable repair costs. The government organisation also made a plan to reduce official tours home and abroad.

There is a practice in different government agencies of unauthorised persons using cars. The railway has plans to stop unauthorised use of cars to curb expenditure. It will reduce fuel and repair cost and the expenditure for the salary-allowances of the drivers. The cars purchased under different railway projects are used arbitrarily and the drivers are appointed on an ad-hoc basis.

Relevant sources said railways spent Tk 35.48 billion in operations in the 2023-24 fiscal. Of this, Tk 9.46 billion were spent for pensions of retired railway officials and employees. There is no way to reduce this cost.
Relevant sources say it has been decided to curb costs for maintenance of repair of railway buildings, equipment and accessories and to scrutinize the actual need for appointing workers and staff to carry out various railway works on an ad-hoc basis.

Adviser Fouzul Kabir Khan told Prothom Alo, “The railway expenditure must be curbed. Directives have been given to find ways to reduce unnecessary expenditures and to increase revenue. The railway authorities are working on this. New initiatives and decisions are coming soon.”

Initiatives to increase revenue

The railway has taken some short-term-initiatives to increase revenue, including addition of 26 metre-gauge and broad-gauge engines and recruiting loco-masters for them to increase product transports and identifying routes with comparatively less passengers to reduce train services on that route.

Officials say the railway has huge demands on the Dhaka-Chattogram and Dhaka-Cox’s Bazar route. So, more intercity trains could be added on these routes. There is no train service for the low-income people on the Chattogram-Cox’s Bazar route. Therefore, some mail trains could be added to the service on this route for the benefit of common people and additional earnings.

At the moment, most intercity trains are run with 10-14 coaches on average. As a result, it is not being possible to realise the full potential of the manpower and the engines. So, directives have been given to run each intercity train with 18-20 coaches at least. This will enable the railway to raise the earnings without any additional fuel cost.

Officials say the railway has huge demands on the Dhaka-Chattogram and Dhaka-Cox’s Bazar route. So, more intercity trains could be added on these routes. There is no train service for the low-income people on the Chattogram-Cox’s Bazar route. Therefore, some mail trains could be added to the service on this route for the benefit of common people and additional earnings.

Meanwhile, there are some unused portions of fibre cable owned by the railway. It is planning to lease out those to different companies on a commercial basis. Besides, the authorities have decided to intensify ticket-checking at important stations and on the trains to prevent people from travelling without tickets. Besides, it is also possible to increase the railway’s revenue by leasing out illegally occupied lands owned by the railway after retrieving them.

Official documents say the railway has nearly 62,000 acres of land. Of this, around 3,614 acres of land have been illegally occupied. However, the size of the railway's illegally occupied land is much bigger, railway officials suspect.

As part of its mid-term plans, it wants to ensure transport of food grains, fertilisers, fuels and other products under government projects through the railway.

Besides, a target has been set to increase income through advertising inside the trains, at the stations and railway lands. The railway traffic officials would fine passengers for travelling without tickets through mobile courts in the past. However, the railway officials no longer have that authority. The railway wants to resume that system.

The launching of Jamuna Rail Bridge has opened the opportunity to carry products in the northern part of the country by freight trains. To realise the opportunity, initiatives will be taken to create new sheds in Tejgaon and Tongi rail stations near the capital.

Apart from these, the railway has taken nine long-term initiatives to increase its revenue. One of these initiatives is to construct shopping malls, residential hotels and office buildings on railway lands not directly involved in the operations and rent those out.

To run more trains, the government transport organisation has planned to purchase 80 metre-gauge and 50 broad-gauge engines to operate more trains. Besides, a total of 500 metre—gauge and broad-gauge coaches and more than 200 freight containers will be added to the service. There is also a proposal to collect 250 coaches to increase commuter train service in areas adjacent to Dhaka.

The railway cost is 63 cents per dollar profit in Canada. Trains are operated by private companies in the US. Most of these companies spend some 30-40 per cent less than their income.

Nearly 80 per cent of the freight trains from Chattogram and Mongla ports are Dhaka-bound. So there have been proposals to construct yards with advanced facilities to unload the products and preserve them.

Another initiative could be taken to construct another Internal Container Terminal in Nimtali to increase transport of products from Mongla port through the Padma Bridge.

The railway is also aiming to implement a few more projects to construct rail lines as part of its long-term plan, including a new line from Dhaka to Chattogram through Laksam in Cumilla, which will reduce the distance between Dhaka and Chattogram by nearly 90 kilometres and a different railway track from Chattogram’s Fouzdarhat to Laksam in Cumilla for freight trains only.

Railway is profitable in many countries

Considering the service quality and profits, the Indian Railway is among the tops in the world. The organisation spent Rs .98 against an income of 1 rupee in the 2024-25 fiscal. The railway cost is 63 cents per dollar profit in Canada. Trains are operated by private companies in the US. Most of these companies spend some 30-40 per cent less than their income.

BUET professor Shamsul Hoque said, “One recognised way to increase railway revenue is to increase freight train services. The railway has vast unused lands. The influential persons and political leaders are making the most of these lands by illegal occupation. Some dishonest officials are the prime beneficiary of these. The railway has to make arrangements to make more from its lands. Moreover, the railway has to bring transparency in procurement processes.”

“Trains are still long-distance public transport in Bangladesh. The railway has to increase short distance services by introducing more commuter and circular trains. A monthly ticket system could be introduced, which will open the opportunity for railways to earn more in advance,” he added.

*This report appeared on the print and online editions of Prothom Alo and has been rewritten in English by Ashish Basu​