loss in FY2022-23
see no progress
Bangladesh Railway (BR) has undertaken numerous projects over the past decade in a bid to balance its income and expenditure, but many of these projects, taken up mainly to boost revenue, have turned into ‘white elephants’.
Senior railway officials said that non-viable projects have been undertaken on political grounds, but many lifeline projects, including Dhaka-Chattogram chord line, Bogura-Sirajganj chord line, Joydebpur-Ishwardi double line, Dhaka-Sylhet double line and Dhaka-Jamalpur double line, have been neglected by the authorities concerned. Even the work on these major projects has not started yet, they added.
On the other hand, the construction work on the fourth line in Dhaka-Tongi section, financed by the donor agency, is left on the backburner due to conflicts with the Dhaka Elevated Expressway project. The donor agency is also dragging its feet over funding the project.
Railway insiders reported that Ishwardi-Dhalarchar and Rajbari–Gopalganj rail line projects, failed to generate profits even after its completion. The under-construction Madhukhali-Magura rail line project is likely to meet the same fate, they said.
Such projects are termed ‘white elephants.’ It means that project costs are high but they bring little or no benefits.
In the fiscal year 2022-23, Bangladesh Railway earned Tk 1,783 crore, but it spent Tk 3,307 crore. It suffered a loss of Tk 1,524 crore mainly due to these non-profitable projects.
The construction of a new rail line from Rajbari to Gopalganj’s Tungipara, and renovation of an old line cost over Tk 2,000 crore. Though 14 trains were expected to operate on this route every day, only two trains currently run on this route, opened in 2018.
Similarly, the Ishwardi-Dhalarchar railway project approved in 2010 was scheduled to be completed in 2015. But it wasn’t completed until 2018. Initial costs were estimated at Tk 983 crore but ballooned to Tk 1,715 crore. Even no feasibility study was conducted before launching the project.
Two years passed after its opening without any train service. Now only one train--Dhalarchar Express--operates on this route sporadically.
According to sources, the project was launched under the influence of former Planning Minister AK Khandaker, a resident of Pabna.
In 2018, a broad gauge rail line from Madhukhali to Magura via Kamarkhali was also constructed. The project was taken up at a cost of Tk 1,217 crore. The authority was expected to run only 2-3 intercity trains after completion of the project. It may be another non-profitable project.
Railway officials have indicated that ex-MP Saifuzzaman Shikhor influenced the project.
The Khulna-Mongla and Akhaura-Agartala (India) railways face similar fate with very few trains operating compared to construction costs.
Two of the country’s much-talked-about construction companies, Max Group and Toma Construction, have been awarded most of the railway works. Toma Construction is led by Awami League leader Ataur Rahman Bhuiyan Manik, while Golam Mohammad Alamgir leads Max Infrastructure Limited.
The Dhaka-Chattogram rail line project, which could reduce travel distance by 90 km with an alternative (chord line) route, has been stalled. The 230-km project would reduce travel time to just three hours.
The project was launched in 2010 after conducting a feasibility study. However, work on this project has been halted due to reasons unknown.
The Bogura-Sirajganj railway construction project was supposed to be completed by June 2023, but its tenure has been extended to 2026. The project, expected to cover 85 km from Shaheed M Mansur Ali Station in Sirajganj to Raniihat in Bogura’s Shahjahanpur Upazila, faces funding issues, and its implementation with Indian credit is becoming more uncertain due to political instability.
or the Joydebpur-Ishwardi dual-gauge project, an agreement was signed during Chinese President Xi Jinping’s visit to Bangladesh in 2016, and funding was promised under the government-to-government (G2G) initiative. However, in 2020, China withdrew its commitment. Bangladesh then approached JICA for investment, but there’s been minimal progress since then.
The Tongi-Jamalpur double rail line and Dhaka-Sylhet double rail line projects also show no signs of progress.
Ashish Kumar Dey, General Secretary of the National Committee for the Protection of Waterways, Roads, and Railways, expressed concerns, stating, “Bangladesh Railway lacks a clear action plan for profitability. Most projects are driven by political and personal interests, rather than their potential profitability.”
Prof Md Hadiuzzaman of Civil Engineering Department at BUET echoed the same, saying that numerous railway projects have been initiated to benefit political figures and contractors.
“There was no consideration for profitability or public utility. This cycle of political and contractor influence has led to the loss of public funds.”
Director General of Bangladesh Railway Sardar Shahadat Ali told the Bangladesh Post, “The government has plans to upgrade all major railways to double lines in phases. But we cannot do it as donor agencies are not funding these projects timely. We have to depend on financing from development partners like ADB, World Bank, and JICA.”
When questioned about the focus on unimportant projects over critical ones, he mentioned, “The Dhaka-Chattogram chord line was halted by the Ministry of Railways without any explanation. Despite sending repeated letters requesting funding for projects like Bogura-Sirajganj and other LoC projects, there has been no response from donors.”
