Early completed, Padma rail project saves Tk1,845 crore

Infographic: TBS

The Padma Rail Link Project has set a remarkable benchmark by saving a sizable amount – Tk1,845 crore – from the initial estimate, thanks primarily to its completion way ahead of schedule. 

The project was scheduled for completion by 30 June 2025, with a one-year defect liability period extending to 30 June 2026.

Now the entire rail line is expected to go into operation on the first day of December. 

The foreign-funded multibillion-dollar project faces a drawback though –  It is being launched at only one-third of its capacity, mainly due to shortages in manpower and rolling stock. 

The highly anticipated 169-km rail line connecting Dhaka with Jashore via the Padma Bridge will initially see operation of eight of the planned 24 daily trains, according to officials involved with the project.

Cost-effective measures

In its Development Project Proposal (DPP), the costs were originally estimated at Tk39,246 crore but have now been revised down to Tk37,401 crore.

This savings achievement includes a Tk621.89 crore reduction in the second revision of the DPP and an additional Tk1,223.65 crore saved during the project's implementation phase, as revealed in project documents obtained by The Business Standard.

Project Director Afzal Hossain told TBS, "This was possible due to the timely completion of the project. When the budget was planned, inflation was projected until the end of the project. However, we completed it seven months early, avoiding the inflated costs.

"We also adopted cost-effective measures at the implementation level, ensuring that we spent only where absolutely necessary, so that not a single taka was wasted." 

A document reveals the specific savings of Tk44.63 crore in design and survey fees, Tk4.80 crore in signalling and telecommunication, and Tk12.62 crore in environmental safeguards.

Additionally, Tk676.33 crore was saved from provisional sums in areas such as level crossing gates, river training works, and ballastless track installations. 

Besides, Tk1,341.18 crore was saved through product price adjustments within the project, while Tk855.91 crore was allocated for additional work under physical contingency. After adjusting all these costs, the amount saved totalled at Tk1,223.65 crore.

Under-utilisation of the megaproject 

A significant manpower shortage is expected to affect the project's operations. Bangladesh Railway has yet to receive approval from the Ministry of Public Administration to create the necessary 1,680 positions, forcing operations to rely on existing staff and some outsourced workers.

Sardar Shahadat Ali, director general of Bangladesh Railway, told TBS, "We tried to obtain the required approvals but were unsuccessful. We will need to commence operations on the route using our existing workforce along with outsourced workers."

Bangladesh Railway currently faces a manpower shortage across all categories, operating with only half the workforce it needs.

Shahadat Ali said, "Due to the existing manpower shortage, we will open only six of the most important stations among the 14 new stations under the project."

Rolling stock limitations further restrict operations.

"Although we have rolling stock limitations, additional stock is expected next year with other ongoing projects," Project Director Afzal Hossain said. "Initially, eight trains will operate, with flexibility for double trips if demand increases."

The new rail line is designed to accommodate speeds of up to 120 km per hour, though trains will initially operate at a maximum of 100 km/h, reducing travel time between Dhaka and Jashore from over eight hours to just 3.5 hours.

Funded by China, the project is being executed by China Railway Group Limited, with consultancy from the Bangladesh Army.

An 82-km section between Dhaka and Bhanga was previously opened on 10 October last year and currently operates five trains on this partial route.