Akhaura-Agartala railway idle a year after inauguration, trade prospects delayed

  The Akhaura-Agartala dual-gauge railway, a Tk241 crore project aimed at enhancing cross-border trade between India and Bangladesh, lies idle even a year after its inauguration.

Despite the completion of trial runs, political instability and unfinished infrastructure have delayed the start of trade operations.

The 12.24-kilometre railway, which extends from Gangasagar station in Brahmanbaria's Akhaura to Nischintapur in Agartala, was launched to facilitate imports and exports between Bangladesh and India.

The Bangladesh segment, spanning 6.78 kilometres, was constructed by the Indian contracting firm Texmaco Rail and Engineering Limited at a cost of Tk241 crore.

Initially estimated as a 1.5-year project beginning in July 2018, construction was delayed for over six years due to the Covid-19 pandemic and other crises.

The project was inaugurated on 1 November 2023 by then prime minister Sheikh Hasina and Indian Prime Minister Narendra Modi through a video conference.

A day before the inauguration, the National Board of Revenue (NBR) issued a notification allowing the import and export of over 50 types of goods from India and enabling Bangladeshi businesses to export all types of goods via this new route.

But essential facilities such as immigration, customs buildings, platforms and connecting roads were still unfinished. These works have now been completed and the contractor is in the process of handing over these infrastructures to the rail authorities.  

Bhaskar Bakshi, project manager of Texmaco Rail and Engineering Limited, acknowledging the delays, said, "The work has been completed. The process of handing over the project to the government is now underway. A letter has already been sent to the relevant department in this regard." 

Sources say the final handover is expected this month, potentially allowing for the commencement of trade once operational decisions are finalised.

Nevertheless, the timeline for initiating trade remains uncertain.

No trains are currently operating on the railway, and local business owners have expressed concerns that, despite initial expectations, the track might primarily serve Indian commercial interests rather than fostering significant gains for Bangladesh's export trade.

The rail network, which shortens transit times from India's western to its north-eastern states through bypassing the Siliguri Corridor, is likely to provide a cost-effective alternative for Indian businesses.

This ease of access may reduce demand for certain goods currently exported from Bangladesh through Akhaura land port, as local businesses in India can source directly from within the country.

Akhaura land port's importer-exporter Rajib Bhuyan noted the challenges facing Bangladeshi exports.

"Due to India's improved internal transportation system, exports through Akhaura land port have naturally decreased. Among the few products that are regularly exported, rods and cement are the most important," he said. 

"Tripura's businessmen, in particular, incur higher costs when transporting these products from other states. As a result, they import from Bangladesh. However, the Akhaura-Agartala railway allows Tripura's businessmen to transport rods and cement at a lower cost, which will adversely affect the export trade," he further added.

Hasibul Hasan, president of the C&F Agents Association at Akhaura land port, said that while the new rail route may not significantly increase Bangladesh's export volume, it could boost government revenue through expanded import options.

"It is possible to increase government revenue through the import of goods. If the opportunity to import all types of goods is provided, businesses could import high-demand products at lower costs through the railway, which would enhance profits and generate more revenue for the government," he said.

TBS could not reach the project director of the Bangladesh section of the railway, Abu Zafar Mia via phone for comments regarding the potential commencement of railway operations.

Akhaura Upazila Nirbahi Officer Gazala Parveen Ruhi clarified that the decision rests with the government.

"When trains will start running on the railway is a government decision. It is not possible to say clearly about starting trade in the current situation. Once the contracting company hands over the project, discussions will be held on starting trade and a decision will be made at the highest level of the government," she told TBS.

For now, the Akhaura-Agartala railway remains an untapped resource, leaving stakeholders uncertain about when or how its intended trade benefits will materialise.