Railways’ income rises by over Tk140cr in first quarter following new initiatives
Revenue in the Eastern Region rose by 34% to Tk310.75 crore in the July-September period of FY2025-26
Bangladesh Railway earned Tk142 crore more in the first quarter of the current fiscal year compared to the same period last year across its two operational regions, raising hopes that the state-owned entity may finally begin to shake off the chronic losses plaguing it for years.
Bangladesh Railway Director General Md Afzal Hossain attributed the improved performance to a series of initiatives.
"Previously, there was only one trip on the Cox's Bazar route with a single train. Now we are operating two trips. Special trains have also been introduced. Various initiatives and strengthened monitoring have boosted earnings," he told The Business Standard.
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"Income from freight trains has decreased due to reduced imports from India, but passenger revenue has gone up. Once the locomotive shortage is resolved, the growth trend will continue. The income–expenditure gap will shrink. We hope this momentum will sustain," he added.
According to data from the Railway's Commercial Manager's Office, revenue in the Eastern Region rose by 34% to Tk310.75 crore in the July-September period of FY2025-26, up from Tk206.15 crore in the same period last fiscal year.
In the Western Region, income increased by 28%, rising from Tk133.53 crore to Tk 170.09 crore over the same period.
Railway officials said multiple measures have been taken to curb expenditure and increase income. Ticket checking has been strengthened, and additional coaches have been added to high-demand routes, with a 20% surcharge imposed on luxury chair coaches and 30% on AC coaches added as supplementary units.
Again, more coaches and trains were deployed on busy routes during Eid, Puja, tourist seasons and holidays, which also helped boost revenue, officials informed.
An official from the Eastern Railway's Commercial Management Department said trains on the Cox's Bazar route previously operated with 16 coaches, which has now been increased to 23. Two additional coaches have also been added to three Sylhet-bound trains. Special trains have been operated as well, and the additional surcharges are being collected accordingly.
Facing years of chronic losses – averaging around Tk2,000 crore annually for the past 15 years - the interim government undertook several measures aimed at cutting costs and increasing income.
Officials believe that if quarterly revenues rise by Tk100-150 crore, year-end income could rise by Tk500-600 crore – significantly narrowing the deficit and moving the organisation closer to an income–expenditure balance.
For FY2025-26, the revenue target for the Eastern Railway has been set at Tk1,650 crore, compared to last year's Tk1,564.95 crore, while actual income stood at Tk1,076.32 crore.
The Western Railway's target for the current fiscal year is Tk1,343.38 crore, compared to a Tk1,159.96 crore target and Tk621.31 crore income in FY2024-25.
