Billions invested, yet Railway struggles to stay on track

Summary:

• Annual losses exceed Tk1,500 crore due to inefficiencies and lack of modernization.
• New rail tracks exist, but engine, coach, and manpower shortages limit operations.
• Over 50% of railway engines and coaches have exceeded their service lifespan.
• Doubling capacity could raise revenue to Tk3,650 crore, but major upgrades are needed.
• Expanding freight transport and increasing passenger capacity are key to profitability.

Despite Bangladesh's GDP growing by Tk40 lakh crore over the past decade and foreign-funded infrastructure projects boosting development across various sectors, Bangladesh Railway has largely missed out on this progress due to poor planning and lack of coordination, according to experts.

Over Tk1 lakh crore was invested in the sector during this period, yet its service capacity has not expanded proportionally. Instead, the state-owned entity continues to incur annual losses exceeding Tk1,500 crore, according to Railway sources.

Rail tracks worth thousands of crores of taka have been constructed during this period, but railway officials say operations on these new tracks are frustrated by shortages of engines, coaches, and manpower – despite strong demand. 

Muhammad Fouzul Kabir Khan, adviser of the Railways ministry, told TBS, "For years, railway development has primarily meant track construction, but no significant investments were made in locomotives or coaches. We are now working on procuring them."

Over the last decade, the Railway has introduced only 22 pairs of new intercity trains, accommodating around 31,000 passengers. For short distances, over 10 new commuter trains have been launched, yet more than 50 older ones – some operating for over half a century – have been discontinued.

As a result, the Railway's ambition of becoming a popular and profitable service provider remains elusive, raising the question of why.

More than 50% of the engines and coaches have exceeded their service lifespan. At present, only about 2,000 coaches and a little over 200 locomotives are in working condition.

Poor planning, no real outcome

According to experts, the entire development plan for the Railway was poorly conceived, with faulty investments, leading to no tangible outcomes.

"They [Railway authorities] spoke of great utility in theory, but they knew that even with the [newly built] tracks, the trains wouldn't run due to a lack of coaches and engines," Shamsul Hoque, a transportation expert and professor at Buet, told TBS.

"They have no accountability – that's why they have deceived the organisation themselves," he added.

According to the Railway, its total operational expenditure for the fiscal 2022-23 was Tk3,307 crore, while its revenue amounted to Tk1,783 crore, resulting in a loss of over Tk1,500 crore.

A recent report by the railway indicates that if the railway's capacity could be doubled, revenue could go up to Tk3,650 crore.

Adviser Fouzul Kabir said, "Passenger services alone do not generate profit for the Railway. To reduce losses and move towards profit making, we are planning to improve service quality and increase freight transport revenue, as well as working on upgrading workshops to enhance maintenance capacity."

Engine, coach, manpower crisis cripples Railway

According to the Railway, 385 trains are supposed to be operating across the country, with 214 in the eastern region and 171 in the western region. 

However, in reality, only 286 trains are in service. Due to shortages of engines, coaches and staff, 99 trains have been suspended. Of them, 50 are in the eastern region and 49 in the western region.

Additionally, there is a demand for 15 locomotives for the transportation of fuel oil, stone, food grains and industrial raw materials from Chattogram Goods Port Yard. Currently, only seven engines are available regularly. 

For container-carrying trains, there is a need for seven engines, but only two are being provided to the yard. As a result, cargo transportation has dropped by half.

According to the Railway's Transportation and Mechanical Engineering Department, operating all trains requires over 3,000 coaches and nearly 300 locomotives but the Railway currently has just over 2,500 coaches and more than 300 locomotives, though not all are operational.

More than 50% of the engines and coaches have exceeded their service lifespan. At present, only about 2,000 coaches and a little over 200 locomotives are in working condition.

In the eastern region, 1,131 coaches and around 75 locomotives are operational, while the western region has 890 functional coaches and 153 locomotives. However, to resume all suspended trains and maintain full operations in the eastern region, at least 116 locomotives and 1,500 coaches are required.

The western region also faces a severe crew shortage. Of the 47,000 sanctioned Railway positions, only 23,000 employees are currently in service.

Md Afzal Hossain, director general of Bangladesh Railway, told TBS, "There was a plan to convert all routes to broad gauge, but this is a long-term process spanning 25-30 years.

"A Korean company has expressed interest in supplying spare parts and repairing old locomotives, and the proposal is under consideration."

How to increase Railway revenue

Recently, Md Shahidul Islam, chief operating superintendent (Eastern Region) of Railway, highlighted various ways of increasing railway revenue in a report.

The report says Bangladesh Railway currently sells an average of 2 lakh tickets per day. However, an online ticketing server traffic analysis suggests that the actual demand is at least 20 lakh tickets daily.

The report indicates that to double the railway's capacity – enabling the sale of 400,000 tickets per day – an additional 1,300 coaches, 200 locomotives and 1,500 personnel would be required. If achieved, Railway revenue could amount to Tk3,650 crore annually.

The report suggests several changes in railway service patterns to enhance passenger experience and boost revenue.

One key recommendation is to increase the number of coaches on intercity trains from 14 to 18, which could raise revenue by 25%, requiring 323 additional coaches and generating an estimated Tk261 crore annually.

Additionally, since passenger demand is higher on Thursdays and Saturdays, adding two extra coaches to 30 train pairs on these days could increase annual revenue by Tk45 crore, requiring 75 more coaches, the report says.

The report also proposes running 20 special trains during peak travel periods such as Eid, Puja, and other high-demand occasions, which could bring in Tk120 crore annually. This would require 450 additional coaches.

The report highlights opportunities to boost Railway revenue by increasing freight transport capacity.

Currently, only 2% of Chattogram Port's handled containers are transported by rail, though the port authority is willing to raise this to 25%. However, this is not feasible with the existing Kamalapur Inland Container Depot (ICD).

The proposed Dhirashram ICD must be completed to accommodate the increase. Additionally, 40 new meter-gauge locomotives and 450 additional personnel – including guards, locomotive masters, assistant locomotive masters, and Railway Nirapatta Bahini (RNB) members – would be required, potentially generating Tk700 crore in revenue, the report says.

Furthermore, the newly constructed ICD at Nimtala Station near Padma Bridge could facilitate the transport of 200,000 TEU containers from Mongla Port, generating an additional Tk300 crore annually.