Engage private sector more for a smarter multi-modal transportation system

Over the course of the last three terms, the government has made significant progress in fortifying our transportation infrastructure. It is particularly pleasing to observe the deliberate prioritisation of establishing a comprehensive multi-modal transportation system, with a near-equitable emphasis on all sectors, including road, rail, shipping, and aviation.

Prior to gaining independence, a well-balanced approach prevailed in the usage and investment across diverse transportation sectors. However, subsequent governments shifted their focus, channelling investments predominantly towards the road sector in accordance with the interests of lenders. 

We categorise this shift as eccentricity, drawing a parallel to how an unbalanced diet adversely affects the body. Similarly, an imbalanced transport system obstructs the optimal realisation of investments.

Presently, the road sector dominates with an 88% share in cargo transportation and a 90% share in passenger transportation, sidelining rail and shipping systems, with the railway system nearly fading into obscurity.

Internationally acknowledged as a providential conduit, waterways constitute the indispensable backbone of sustainable transportation. Despite encountering navigation challenges in Bangladesh, maintaining these water routes is imperative. 

Being a riverine country, Bangladesh possesses the potential for farmers to secure fair prices for their produce. In this context, river transport assumes a pivotal role in efficiently conveying agricultural products from villages to urban areas. Waterways continue to serve as a cost-effective means of transporting vegetables from surrounding areas to the capital.

However, our waterways have been overlooked for decades. The emphasis gradually shifted away from rail, rendering the system largely non-performing.

In the endeavour to develop our transport infrastructure, the government has taken a significant stride by establishing a dedicated ministry for railways. Beyond mere paper-based reforms, substantial investments have been injected into the previously under-funded railway and shipping systems.

Although arriving somewhat belatedly, this government investment has ignited enthusiasm, paving the way for the potential realisation of a more balanced infrastructure. This equilibrium is paramount, especially considering the disparate distribution of transportation systems across various regions. Some areas abound in shipping routes, while others exhibit an excess of railways.

However, the realisation of investment and subsequent development lacked coordination. Ministries and divisions independently implemented their projects, resulting in various initiatives becoming puzzled.

An evident clash arises between the road bridges and the waterway headroom, particularly noticeable around Dhaka, where the immense potential of waterways remains underutilised due to the presence of 13 bridges. The low clearance of these bridges poses a hindrance to the operation of water buses.

In numerous other regions, both road and rail bridges that overlook waterways were not constructed at the intended height. These oversights have entangled waterways in the current of development, leading to significant disruptions and damage.

The absence of dedicated planning units for road, rail, shipping, and aviation has hindered the formulation of a research-based, well-planned development philosophy. 

The Ministry of Planning which is responsible for coordinating development across the country, lacks proficient planners to navigate the complexities arising from the isolated efforts of various agencies. 

Consequently, each project is individually approved without considering potential conflicts or synergies between projects.

Regrettably, the focus has been on the development of individual ministries and divisions, rather than a holistic approach considering the entire country. A critical weakness in Bangladesh's transport sector lies in the absence of a central organisation capable of fostering coordinated and planned development.

This deficiency has been persistent, and currently, development appears to be predominantly consultant-driven, progressing in an environment marked by conflicting conditions.

Over the decades, the anticipated returns of projects estimated during the approval stage have proven elusive due to various complexities, particularly evident in the case of the railways.

The railway service in Bangladesh operates under full government management, with government agencies handling infrastructure development and the private sector contributing services in other sectors. 

The involvement of the private sector has led to significant innovations and improved service quality, introducing luxurious launches, steamers, VIP cabins on waterways, and expanding accessibility for the general public.

Market competition among entrepreneurs in the commercial sector has further elevated the quality of services, highlighting the positive impact of private sector involvement. The government is actively investing in road infrastructure, with service provision entrusted to the private sector.

Similarly, in the aviation sector, the government is investing in the construction of terminals and runways, and the majority of services are outsourced to the private sector, contributing to improved service delivery in these three sectors.

In contrast, the railways in Bangladesh are managed entirely by the government, from infrastructure development to service delivery and the accumulation of rolling stock. This centralised approach poses challenges, as service quality demands continuous attention and adaptation, which is not always achievable through permanent government employment.

Globally, many countries have shifted away from providing transportation services through government agencies. In these cases, the government typically oversees infrastructure development and rolling stock accumulation while ensuring service through third-party entities.

Recognising the challenges within Biman Bangladesh, the government rejected its proposal to manage the newly built third terminal of Hazrat Shahjalal International Airport. Citing issues of transparency, accountability, and professionalism within Biman, the government opted to assign the responsibility to a Japanese company, with expectations of improved and more efficient services.

Concerning waterways, the Patenga Terminal, under the Chittagong Port Authority (CPA), no longer offers container handling services and the operational responsibilities have been entrusted to Saif Tech for an extended period, resulting in a significant improvement in the port's ranking over the past 10-12 years.

The connection between service, output, and productivity is crucial. As the management company benefits from increased productivity, the port authority also reaps a share of the gains. 

To boost profits, the private sector aims to enhance container handling at the port through worker training and round-the-clock operations.

A surge in foreign investment within the shipping industry is evident, with potential outsourcing of the bay terminal's operations to an external company. Notably, a major Danish company is considering a substantial investment in the newly proposed Laldia container terminal in Chittagong.

It's worth noting that the US ports aren't exclusively managed by their respective nationals. About 45% of American ports are managed and operated by companies based in Dubai. 

In Bangladesh, there's a growing acknowledgment that the government struggles to take on the operational responsibility after infrastructure construction. Bangladeshis are perceived as unable to provide service efficiently, as seen in the railways and Biman failing to deliver quality service.

The Ministry of Railways faces a challenge in delivering envisioned services due to a lack of skilled manpower. While acquiring rolling stock is possible, the crucial components of service delivery and accountability are absent.

Despite not meeting expected returns, the ministry often justifies this by stating railways are not meant for profit, which is a critical error. Initiatives promise public benefits, but explanations vary when returns fall short.

To enhance service delivery, the responsibility for managing railway services should be delegated to experienced and accountable private institutions, akin to global practices. Engaging competent organisations for service management, similar to infrastructure development, would yield a more substantial return on investment.

Recognising the need for outsourcing, Bangladesh Railway should earnestly consider it. Efficiently managing its substantial immovable property could generate significant revenue, highlighting the potential benefits of outsourcing and efficient property management for overall improvement and financial sustainability.

Thirdly, the railway system has a significant revenue opportunity through container transport. However, low passenger fares, deliberately kept so in countries like Bangladesh, contribute to operating losses, particularly in container transport.

Despite efforts to ensure efficient container transportation through a dedicated corporation, the lack of direct benefits for those managing it hinders its growth. Accountability measures that were once in place have waned, leading to a lack of interest in reformative actions.

The focus should shift from haemorrhaging funds on free passenger travel to prioritising container transport. Instead, the introduction of express trains and the discontinuation of local trains deviates from addressing commuter needs.

While the government introduces modern transport systems like BRT and MRT, implementation has not been optimal. Time-bound planning and specific targets could have lowered passenger fares, making it a people-centric transport system.

Transport infrastructure projects face prolonged implementation and increased costs, making it challenging to maintain low passenger fares. Compared to other countries in our socio-economic landscape, we spend two to three times more, which pushes the fare also to increase.

Lack of professionalism and internal mismanagement hinder the promotion of advanced systems in public transport. The decision to run these systems by government authorities is considered a serious mistake.

Metro Rail is a modern and technology-driven service, which needs skilled manpower for effective operation and the government has no such human resources capacity.

The decision to entrust infrastructure management to government personnel seems self-interest, focusing on procurement and recruitment. As railways are subsidised, poorly operated Metro Rail could escalate subsidies. 

Analysing Metro Rail's development, it appears not to have been appropriate for Dhaka. While substantial funds are invested in high-speed infrastructure, station construction suggests a recognition that it won't run fast. 

Other countries develop with less investment to keep costs low for their citizens. We should consider that: is there a need for speedy metro rail or can our metro rail run faster? 

A Light Rail Transit System (LRT) might be more suitable for Dhaka, offering slightly lower speed, lower costs, and efficient service, especially in fringe areas with no public transport.

Older metro rail systems are becoming obsolete, and modern alternatives, like LRT, are more cost-effective and sustainable. The traditional approach to building expensive century-old metro rail systems seems outdated. In contemporary metro rail systems, overhead electric wires are impractical.

The government's heavy investment in traditional development contrasts with the evolving needs and advancements in transportation systems.

The Metro Rail has been on trial for over a year by the government management, a move that a private company might have found unprofitable.  Limited operation started from Uttara to Agargaon in December 2022, and the ongoing trial operates on a limited scale with noteworthy daily losses.

Decision-makers assuming that the government funds will cover cost overruns due to delays overlook the reality that scheme costs must be recovered from passengers through fares.

Caution is advised, as increased subsidies in such projects could hinder ambitious development goals. Instead of expanding the network with an underground metro rail in densely populated areas lacking public transport, a cost-effective alternative could be building a light rail and outsourcing its operation to a third party, potentially lowering construction costs and operating expenses.

The government emphasises smart development, which necessitates intelligent thinking. Achieving quality service with minimal investment for higher returns and expanding coverage is crucial. 

Failure to do so could lead to more economic pressure than what the metro rail addresses in solving transportation problems. Sustainability is uncertain if modern development lacks thoughtful planning.

The author is a professor at the Department of Civil Engineering, Bangladesh University of Engineering and Technology (BUET).