Will more freight tracks, ICDs change Railway’s future?
The medium-term budgetary framework has a total allocation of Tk10,640 crore for railway projects until FY28
Highlights
- Railway plans to be a commercially profitable enterprise in 10 years
- It pays special focus on commercialisation of freight trains
- There are plans for more commuter services around Dhaka, other major cities
- Railway targets no loss in passenger train, commercially viable services
- It plans to build highly profitable ICDs
- It will also build commercially profitable multi-modal hubs
Bangladesh Railway needs dedicated freight tracks and connectivity with major sea and land ports to raise its share in cargo transportation and become commercially viable, says a strategic plan drafted by the Planning Commission.
Full conversion to broad gauge line, building more inland container depots (ICDs), and procuring adequate equipment to modernise the railway services and maintenance are among the integrated future strategic plans that also aim to ensure full operational cost recovery in the next 10 years.
To increase the railway's earnings through commercial services, it also plans for container handling through private sector operators, and leasing out additional capacities of the railway's optical fibres to telecom companies.
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To halve travel time to three hours, the Dhaka-Chattogram line should be the first broad gauge double track with dedicated container trains. Dedicated freight trains can also be introduced from Dhaka to Mongla and Payra seaports in the next 10-15 years, according to the Integrated Network Planning and Sector Plan Preparation Exercise, prepared by the Planning Commission's Physical Infrastructure Division for Bangladesh Railway.
Planning Commission officials said the medium-term budgetary framework (MTBF) has a total allocation of Tk10,640 crore for railway projects till the fiscal 2027-28. The amount of investment required to implement the new strategic plan will be determined in consultation with the railway authorities.
The Planning Commission will make a formal presentation on the strategic plan to an audience of railway officials and stakeholders on 11 September.
Dr Mohammad Emdad Ullah Mian, a member of the Physical Infrastructure Division, stressed the economic viability of container transport by train. This shift not only reduces pressure on road infrastructure but also makes the railway profitable, he said.
"The Planning Commission has already prepared a proposal in this regard, and specific targets will soon be requested from Bangladesh Railway to shape the new strategic plan," Emdad added.
According to a media report, there was a proposal from the Chittagong Port Authority to the shipping ministry in 2018 to build a dedicated freight track between Dhaka and Chattogram for faster transportation of export-import cargo.
Shipping secretary Mostafa Kamal told The Business Standard yesterday that he is not aware of any such proposal. There is a plan to widen the Dhaka-Chattogram highway into six-lane and then more cargo would be transported by road, he informed, adding that the port authority could say if a dedicated freight rail line would still be required.
CPA Chairman Rear Admiral Mohammad Sohail and port Secretary Omar Faruk could not be reached for comments as they were outside the country, while port's Director (Traffic) Enamul Karim was also not available by phone.
Planning Commission officials told TBS that the Railways' existing Master Plan (2015-2045) has fallen behind in achieving its targets. In the execution of the strategic plan, priority will be given to corridor-based projects, they mentioned.
Railway hopes to regain freight traffic
Bangladesh Railway carried 4.8 million tonnes of freight in 1969-70, which dropped to half now as it lost freight business to road transport.
Increasing capacity between Dhaka and Chattogram, acquiring more rolling stock (locomotives, wagons etc), and completing ongoing conversion and line expansion projects will help the railway increase its freight traffic to 18m tonnes by 2045 from merely 2m tonnes now, hopes the railway master plan.
Bangladesh has only two ICDs – one is at Kamalapur serving a tiny fraction of the country's container traffic and another is at Pangaon, connected with Chattogram port by only three small cargo ships.
The master plan includes building a new ICD at Dhirasram in Gazipur and two others at Benapole land port and Uttara EPZ.
Chattogram port handled 3 million twenty-foot equivalent units (TEUs) containers in FY23. Of them, the Kamalpur ICD handled only 1.56% of the total container handling.
Three to four cargo trains run daily from Chattogram port to Dhaka's Kamalapur ICD with containers, each trip taking 10-12 hours.
According to the latest railway data, freight trains across the country now contribute only 21% of railway's total revenue while the average rail speed has reduced to 12km per hour. However, the railway dominates in the transport of stone, iron, steel, and food grains, and carries about 10% of Dhaka-bound containers handled at Chattogram port.
The master plan believes the railway, for its environment-friendly nature, will support the government's target to lower greenhouse gas emissions by reducing the number of trucks on the road.
Broad gauge-only track
The Akhaura-Laksham section loop lines, completion of the Broad Gauge Double Track, and the Dhaka-Cumilla Chord Line are very important initiatives to significantly reduce travel time between Dhaka and Chattogram, slashing it from over six hours to just three for passenger trains.
According to the Railway Master Plan, the conversion of the Dhaka-Chattogram railway line was originally slated for completion by 2025, but the project could not start due to difficulties in securing foreign loans.
This upgradation efforts will also increase rail transport capacity allowing trains to carry 30% more passengers and goods as confirmed by railway officials.
Recently, a significant milestone was achieved with the completion of the 72km dual gauge double line from Akhaura to Laksam, financed by the Asian Development Bank (ADB). Additionally, both the Laksam-Chattogram and Tongi-Akhaura railway lines have been converted into dual gauge lines, connecting Chattogram and Dhaka with the broad gauge rail line.
Furthermore, work is underway to convert the Chattogram-Dohajari metre gauge railway line into dual gauge to extend broad gauge rail connectivity up to Cox's Bazar. Notably, the construction of a dual gauge line from Dohazari to Cox's Bazar has already been completed with ADB funding.
Investment proposals for corridor development
Railway officials told TBS that they have received several investment proposals for corridor-based development with the World Bank expressing interest in providing a loan for the Dhaka-Chattogram rail corridor's development.
Subsequently, railway authorities submitted a loan proposal to the global lender this July. The total cost of the project is estimated to be Tk15,807 crore, and the World Bank is expected to contribute Tk10,377 crore.
The rail corridor development encompasses five key components, focusing on enhancing the Dhaka-Chattogram rail corridor. This involves the conversion of the Faujdarhat-Chattogram Goods Port Yard metre-gauge section into a dual-gauge double-track, as well as establishing a connection between the Bay terminal and the railway network.
As part of the project, the Kamalapur rail station will undergo development to become a multi-modal transport hub, spanning 40.6 acres of the existing Kamalapur ICD. Additionally, plans include the relocation of the Kamalapur depot to Dhirasram station, offering improved container handling and stacking facilities.
The multimodal hub is expected to play a pivotal role in accommodating the metro rail, Dhaka-Chattogram high-speed trains, and the Dhaka elevated expressway.
Furthermore, besides Kamalapur, the Dhaka airport rail station is also slated to be transformed into a multi-modal transport hub.
A World Bank mission conducted visits to the Bangladesh Railway on two occasions, on 11-22 April and from 4-9 September last year. During the visits, World Bank representatives inspected the project sites and engaged in detailed discussions with the railways ministry.
