Old Dhaka business halves due to traffic congestion
Stakeholders recommended the introduction of smart traffic systems and increased utilisation of river routes to improve the situation
Around half of the businesses in Old Dhaka, one of the busiest areas of the capital, have relocated elsewhere due to traffic congestion, leading to a significant decline in the value of shops, say local businessmen.
They demanded the deployment of more traffic police, the improvement of road infrastructure, and the implementation of one-way traffic systems as necessary measures to reduce traffic congestion in the area at a seminar on Tuesday (2 April).
The event, titled "Effect of Traffic Congestion on the Business and Commerce of Old Dhaka and Identifying Solutions," was organised by the Dhaka Chamber of Commerce & Industry (DCCI).
Various stakeholders, including the mayor and officials of the Dhaka South City Corporation (DSCC), as well as transport experts, illustrated the effects of traffic congestion on businesses and the lives of residents in Old Dhaka.
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They said that factors such as road digging, illegal footpath encroachment, unplanned car parking, inadequate road infrastructure, and inefficient traffic management have led to significant congestion in Old Dhaka, increasing the cost of business operations.
They recommended the introduction of smart traffic systems and increased utilisation of river routes to improve the situation.
"Dhaka's contribution to GDP is 46%, of which Old Dhaka's contribution is about 20%"
On the adverse effects of traffic congestion, Md Golam Mawla, President of the Bangladesh Wholesale Edible Oil Traders Association, said, "About 50% of businesses from Old Dhaka have relocated to other areas due to traffic congestion. The price of a shop in the Moulvibazar area of this part of the city, which was Tk1 crore 10 years ago, has now dropped to Tk50 lakh."
"Due to traffic congestion, many residents have moved to different places or are staying in rented houses. At the same time, our children's education is being disrupted. We cannot even walk on the roads," he said.
"Many plans have been proposed for Old Dhaka, but it is unclear when they will be implemented. That is why we need some immediate solutions," he added.
He further said, "The government has decided that covered vans transporting export goods can move across the city for 24 hours. However, using this opportunity, the owners of these covered vans transport all kinds of goods, including iron, copper, and brass, and place them in the narrow lanes of Old Dhaka."
Abdus Salam, a businessman from Chawkbazar in Old Dhaka and former vice-president of DCCI, said, "We expected that our business would improve day by day, but on the contrary, it is deteriorating."
Presenting the keynote at the programme, DCCI President Ashraf Ahmed said, "Dhaka's contribution to GDP is 46%, of which Old Dhaka's contribution is about 20%. The expansion of the light engineering sector has increased tremendously in the country, with about 15% in Old Dhaka."
Daily transactions in important areas of Old Dhaka, including Moulvibazar, Chawkbazar, and Begumbazar areas, exceed Tk1,000 crore, he said.
Referring to the problem caused by traffic jams, he said that in 2022, more than 8 million working hours were wasted on the roads of Dhaka every day. Dhaka ranks second among the 20 slowest cities in the world.
He added, "The overall GDP of the country decreases by about 2.9% due to traffic congestion in the capital, and the financial value of working hours lost due to traffic jams every day is about Tk140 crore."
Transport expert Dr SM Saleh Uddin said, "Today, we are in a very bad condition in terms of health, traffic congestion, and pollution. We have pursued development-oriented transit, but we should prioritise transit-oriented development."
"Our first priority should be implementing one-way traffic. Motorised vehicles in Bangladesh are still fewer than in many countries, but what we lack is effective management."
Dhaka South City Corporation Mayor Sheikh Fazle Noor Taposh said that the city corporation has already taken various initiatives to address the problems.
The issue of waterlogging in the city has been given priority, and several canals have been recently cleared of encroachments, which will reduce the problem to some extent in the coming days, he said.
The mayor mentioned plans for building a new commercial city in Keraniganj, located on the banks of the Buriganga River, and initiatives to revive Chawkbazar and Motijheel.
He also said that an initiative has been taken to install artificial intelligence technology at 64 intersections to reduce traffic congestion and identify traffic law violators in the capital.
Commenting on the issue of evicting hawkers from the sidewalks and roads of Dhaka, he said that the DSCC has identified eight places as yellow and green zones, where hawkers can operate their businesses, but no one can set up shop in the red zone marked by the city corporation.
The mayor said, "There was a fire a few days ago, and such incidents are occurring regularly. Warehouses and factories with the storage of chemical products have already been relocated to the Industrial Zone in Shyampur. However, only one has relocated there so far. We have granted them a trade licence."
He continued, "I want to inform businessmen that we will be stringent with those conducting chemical businesses in Old Dhaka. You must apply to the Ministry of Industry in accordance with the law and relocate there. If you do not, after Eid we will conduct a thorough inspection. The electricity, water, and gas connections of buildings housing chemical warehouses will be disconnected."
