Rail strike disrupts supply chain

Rail communications across the country were suspended yesterday as Bangladesh Railway's running staff launched an indefinite strike demanding mileage allowance, severely disrupting supply chains, particularly along key routes from Chattogram port.

Officials and traders said the halt in rail cargo transportation is feared to cause severe congestion at the port. If the stalemate is not addressed soon, importers will face delays and difficulties in receiving their goods. 

According to sources at Chattogram Port Goods Yard (CPGY), at least nine trains, including six container trains and three oil and wheat trains, were stranded at various yards till yesterday. 

The last cargo train, carrying wheat, left for Dhaka at 8pm on Monday. Three scheduled trains – due to leave at 2am, 3am, and 9:30am yesterday – were cancelled due to the ongoing strike. These included a container train bound for Dhaka, an oil train heading for Sylhet, and a wheat train destined for Rangpur. 

Abdul Malek, chief yard master at CPGY, said six container trains loaded with goods were awaiting departure from the yard. "Each container train carries 31 wagons, with a total of 62 TEU containers. In total, six trains carrying 372 TEU containers are waiting to head for Dhaka's Kamalapur ICD."

Normally, four container trains and at least three oil and wheat trains depart from CPGY for various destinations daily, including Dhaka, Sylhet, and Rangpur. However, due to the strike, daily rail services have been suspended, further escalating the crisis.

Importers warn that these goods, particularly food items like wheat and oil, cannot easily be transported by road. The disruption in the transportation of essential goods is expected to have a ripple effect on industries reliant on these imports.

Railway's running staff, including locomasters, assistant locomasters, sub-locomasters, guards, and ticket checkers, went on indefinite work abstention yesterday, demanding the inclusion of overtime allowances in their pension calculations and gratuity benefits.

Growing backlog worries

Chattogram port officials and importers have expressed concern over a growing backlog of containers destined for Dhaka ICD. Containers unloaded after 19 January have yet to be scheduled for transport, and 134 TEU containers were offloaded on 28 January. 

As of now, the port's yard has a capacity to handle 850 TEU containers by rail, but with increased imports ahead of Ramadan, the number of containers in the yard has swelled to 1,049 TEU, and this figure is likely to rise further due to the stoppage, they said.

Khairul Alam Sujan, vice president of the Bangladesh Freight Forwarders Association, told TBS that an eight-day backlog of goods bound for Dhaka ICD by rail still exists. 

"With containers continuing to accumulate at the port, there are fears of rising storage costs and production delays if goods are not delivered promptly," he said.

He called for urgent measures to address the crisis and prevent further disruptions to the supply chain.

Container train shortage

Azad Mohammad Howlader, owner of MN Traders and a clearing and forwarding agent, said, "Previously, engine shortages hindered timely container deliveries. The current engines are outdated and operate at a sluggish pace. As a result, we are forced to spend an average of Tk20,000 to transport freight containers to Dhaka, which is significantly higher than usual."

Railway data shows a downward trend in container train operations: 153 in October 2024, 138 in November, and around 100 in December. Similarly, oil train operations fell from 61 in October to 29 by December.

"With containers stuck in Chattogram port, we're now facing daily standing charges of Tk10,000 to Tk15,000," Azad added. 

"The business climate has been tough for a while, and now, with this disruption, we are either operating at no profit or at a loss. Some clients have even told me they would rather let their containers sit at the port and go to waste than incur further losses by moving them to Dhaka, he said.

Azad also warned that this disruption could lead to price hikes in imported goods. "Although essential goods aren't primarily transported by rail, unscrupulous traders may still raise prices, blaming the strike."

According to the railway, approximately 15,000 to 20,000 tonnes of freight are transported daily by train, while 150,000 passengers rely on trains for travel across the country.