Railway's profitable freight operations shrink amid severe locomotive shortage

Highlights:

• Freight services plummet due to severe locomotive shortages.
• Container trains from Chittagong drop from 120 monthly to about 60.
• Over 90 of 281 locomotives are inactive and ageing.
• Chittagong Yard receives far fewer engines than required.
• Industries face delays, higher costs, and shift to road transport.
• Major investments built tracks, but only 40 engines purchased.

Bangladesh Railway's lucrative freight transportation sector is rapidly contracting, losing essential customers and revenue due to a severe shortage of functional locomotives. 

Services have been drastically curtailed, despite high demand for the cost-effective and secure rail network.

Officials confirm that the number of container trains operating monthly from Chittagong Port, the country's main gateway for imports and exports, towards Dhaka has fallen by more than half – from over 120 to just 50-60.

Infograph: TBS

Steep decline in services

According to Railway data, the number of total annual freight train services dropped sharply from 4,273 in the 2021-22 fiscal year to 3,387 in FY23, an annual reduction of 886 services. In the eleven months leading up to November this year, only 2,285 freight services operated, including 1,175 container trains and 881 fuel trains.

"While the passenger sector requires subsidies, freight transport is profitable," Md Shahidul Islam, joint director general (operations) of Bangladesh Railway, told TBS. "But the engine shortage forces us to cut down the number of trains. Moreover, if a passenger train engine breaks down, we often divert a freight train engine to complete the journey, increasing delivery times for goods."

Crisis of ageing fleet

The core of the problem lies in the railway's ageing fleet. Out of a total of 281 locomotives, over 90 remain inactive and unfit for service, with the majority having exceeded their operational lifespan, said officials. Frequent mechanical failures are becoming common.

The Eastern Zone, which handles over 95% of freight transport, is particularly hard hit, with 55 out of its 131 locomotives currently out of service.

The shortage is acutely felt at the Chittagong Goods Port Yard. Officials report that against a demand for 15 engines for oil, stone, and foodgrain transport, only 5-6 are regularly supplied. For container trains, the requirement is seven engines, but Chittagong Goods Port Yard often receives only one or two.

Consequences for industry

The crippling service has led to significant delays and cost increases for major industries. 

Container serial waiting time has ballooned from two days to one week. Shamsuddin Ahmed Chowdhury, general secretary of the Container Shipping Association, confirmed that importers and exporters now incur extra port charges and suffer from delayed deliveries.

AKM Azad-ur Rahman, director (operation and transport) of the Bangladesh Petroleum Corporation, noted that despite rail being the safest and most economical way to transport fuel, "We are not receiving the desired service." Consequently, the transport of fuel by road tankers and waterways has increased, driving up costs.

Fertiliser supply via rail has been suspended for over a year due to the lack of locomotives and wagons, forcing companies like Shahjalal Fertiliser Company Limited to rely on expensive road transport.

Investment paradox

The news highlights a significant paradox: while Bangladesh Railway invested approximately Tk88,000 crore in 121 projects, building 948 km of new railway line between June 2009 and June 2024, only 40 new engines were purchased during this entire period.

Eastern Railway General Manager Mohammad Subuktogeen acknowledged the issue, noting that maintaining scheduled passenger services often means that freight trains are delayed. However, he stated that the railway is undertaking initiatives to repair existing engines and procure new ones through projects, which should eventually normalise freight services.