Bangladesh's first commercial railroads were built more than a century and a half ago by the British rulers. Since the colonial era, freight rail has been a symbol of the nation's resource mobilisation and increasing trades.

After the country's independence railways began losing market share gradually with the gradual emergence of road transport. But the railway's offer still stands out as freight rail has the potential to carry 25% of container traffic countrywide – equivalent to removing 500 container trucks per day from roads.

Railway's capacity constraints, however, limit the services to only 10% as only two container trains currently operate on Dhaka-Chattogram route – the major trade and transport artery of Bangladesh – every day.

After years of passenger-bias approach, Bangladesh Railway now makes fresh moves to improve freight transport to facilitate trades and boost its revenue earning. It has planned a $1.68 billion project to overcome its infrastructural bottlenecks and raise its modal share in container freights on the route, according to officials.

They said the project had been designed after the World Bank showed interest in it, and expected the Washington-based lender would finance $1.09 billion.

With a 2030 deadline, the master-plan includes development of the Dhaka-Chattogram rail corridor, remodelling Dhaka's Kamalapur station yard, a transport hub at Dhaka airport rail station and buying 20 cargo locomotives.

SM Salimullah Bahar, chief planning officer of the Bangladesh Railway, said they had prepared the plan focusing freight train frequency on the route.

"This will boost rail revenue, ease pressure on the Dhaka-Chattogram highway, and make cargo transport on the route easier and cheaper," he told The FP.

He said World Bank officials showed interest in the project and asked them to send a primary development project proposal.

After preparing the plan, the railway authorities have sent it to the Planning Commission for approval and to the Economic Relations Division for reaching out to the global lender.

The World Bank mission visited the Bangladesh Railway on 11-22 April and 4-9 September this year. Railway officials said the World Bank representatives visited the project sites and discussed with the Ministry of Railways in detail.

Railway transport is substantially cheaper and quicker for shippers. To reach Chattogram from Dhaka, a truck takes 10-16 hours while freight trains take 10.5-12 hours. Truck transport costs $200-$300 each container while train charges $150-$260.

According to latest railway data, freight trains across the country now contribute only 21% of railway's total revenue while 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 in Chattogram Port.

Md Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), believes attitudes of rail officials to service-seekers have to be changed alongside new investments.

"If it takes six hours to release containers from rail depots due to red tape, businessmen will not go for train services. For the sake of maintaining professionalism, the private sector could be tasked with the freight service, if necessary," he told FP.

Leading logistician Syed Ershad Ahmed, managing director of the Expeditors (Bangladesh) Ltd and also the president of the American Chamber of Commerce in Bangladesh, said there should be a strategic plan in place to ensure other logistic support alongside the rail freight service.
He emphasised infrastructural development connecting Dhaka airport and Chattogram port.
The rail corridor development comprises five components as it aims at improving Dhaka-Chattogram rail corridor through converting the Faujdarhat-Chattogram Goods Port Yard (CGPY) metre-gauge section into a dual-gauge double-track.

The corridor will also connect the Bay terminal with the railway network.

Under the project, Kamalapur rail station will be developed into a multi-modal transport hub spanning 40.6 acres of existing Kamalapur Inland Container Depot (ICD).

The rail authorities also plan to relocate the Kamalapur depot to Dhirasram station with more container handling and stacking facilities.

Officials said the multimodal hub will play a crucial role for the metro rail, Dhaka-Chattogram high-speed trains and Dhaka elevated expressway.

Apart from Kamalapur, Dhaka airport rail station will also be turned into a multi-modal transport hub.

The rail station is currently witnessing a number of transport projects in adjacent areas. Those include the third terminal construction of Dhaka airport, the Bus Rapid Transit, first Dhaka Elevated Expressway and Tongi-Ashulia Elevated Expressway.

Turning the airport rail station into a multi-modal hub will help develop an integrated transportation facility in the area.

Railway officials said they have conducted a feasibility study and detailed design to make the Faujdarhat-Chattogram Goods Port Yard railroads into a dual-gauge double-track line.

The railroad connecting Dhaka and Chattogram is now mostly a double-line metre-gauge train track. The railway authorities in separate projects are converting it to a mixed-gauge line.

Under the rail corridor project, railway wants to buy 20 metre-gauge diesel electric locomotives, three accident relief cranes and three underfloor wheel lathe machines.

Logistician Syed Ershad Ahmed said the railway has huge potential, but no focus. The Kamalapur depot needs to be relocated to Dhirasram immediately as the place is almost unusable thanks to traffic gridlock both at entry and exit points.