BIWTC explores new avenues to stay afloat as income sinks 70%

The Bangladesh Inland Water Transport Corporation (BIWTC) has seen a sharp 70% decline in daily income since the launch of the Padma Bridge, as passengers increasingly prefer road transport over waterways.

To cover expenditures, the BIWTC is now resorting to prematurely withdrawing fixed deposit receipts, according to officials of the state-run river vessel operator. 

Besides, the BIWTC is contemplating chartering passenger ships to tourism companies and making significant investments in cargo ships to tap into strong market demand, they said.

"Previously, we used to earn over Tk2 crore every day, but now our income has dropped to below Tk1 crore, barely reaching a monthly Tk30 crore," the corporation's Chairman SM Ferdous Alam said. 

"However, our monthly expenses exceed Tk35 crore," he added.

After the Padma Bridge opened, once-busy ferry routes like Shimulia-Banglabazar and Shimulia-Majhirkandi had to be discontinued, Ferdous Alam mentioned.

"Furthermore, the rising preference for faster road transport in the southern region has compelled us to cease operations of our inland passenger ships," he pointed out.

The BIWTC has 55 ferries, out of which 14 were previously operating on the two discontinued routes. In addition, all five inland passenger ships provided services from Dhaka to Khulna via Chandpur, Barishal and Jhalokati.

Ferdous Alam said, "We've redeployed the 14 ferries to our current six routes to maintain their operation. Despite our efforts to continue running passenger ships, passenger numbers were very low, making it challenging to cover even 50% of the voyage expenses."

Exploring new routes

With the opening of the Padma Bridge, the BIWTC began exploring new ferry routes, and conducting feasibility studies in various locations, said the corporation's spokesperson Nazrul Islam Misha.  

"This year, we successfully established a new route based on the positive outcomes of these studies," he added.

The spokesperson noted that the BIWTA had conducted feasibility studies in at least ten locations in pursuit of suitable alternatives to Shimulia. Additionally, ongoing feasibility studies are being carried out in some other areas. 

"We identified a viable ferry route, Najirganj (Pabna)-Ghowapara (Rajbari), launched in January. Additionally, we've identified the Roumari-Chitalmari route, but it will take some time to start as we need to build an approach road and set up a pontoon in Roumari," he mentioned.

Refloating water buses

The water bus project, which was a financial setback for the BIWTC, no longer serves as a passenger transportation service in Dhaka city. Instead, the buses are now chartered.

Spokesperson Misha stated that the introduction of 12 water buses from 2011 to 2015 incurred a cost of approximately Tk25 crore for the corporation.

The BIWTC operated the service around Dhaka for three years, incurring an additional expense of around Tk14 crore. Including maintenance costs and staff salaries, the total expenditure amounted to approximately Tk57 crore.

Despite persistent financial losses, the BIWTC tried to keep the service operational but eventually had to suspend it due to escalating daily challenges.

Misha explained that the discontinuation was primarily due to low-height bridges, which caused their ships' masts to become stuck, as well as challenges with landing stations. Additionally, people were discouraged by the pollution and unpleasant odour of the Buriganga River.

However, to prevent the water buses from deteriorating while being unused, the BIWTC decided to charter them, Misha mentioned.  

"Currently, six out of the 12 water buses are in use for crossings from Dhaka Sadarghat-Telghat. Two have been acquired by tour operators and are being used for trips to Tanguar Haor in Sunamganj. Additionally, one has been chartered by a company and is being used in Foy's Lake, Chattogram," he said.

As for the remaining three water buses, tenders have been issued for chartering one, and the other two have been put into service at a dockyard, Misha concluded.