Bangladesh has taken a significant stride towards modernising its south-eastern transport infrastructure, as the Asian Development Bank (ADB) formally approves a substantial loan of USD 688 million for the Chattogram–Dohazari railway upgrade. The funding aims to transform one of the country’s strategic rail corridors into a modern, efficient, and environmentally sustainable network.
On 22 December, the loan agreement was officially signed at the Economic Relations Division (ERD) office in Dhaka. Representing the Government of Bangladesh, ERD Secretary Md. Shahriar Kader Siddique signed the document, while ADB Country Director for Bangladesh, Ho Young Jeong, signed on behalf of the bank. Officials described the financing as a landmark initiative in the ongoing modernisation of Bangladesh’s rail infrastructure.
The funding falls under the “South Asia Subregional Economic Cooperation (SASEC) Chattogram–Dohazari Rail Project”. The project focuses on rehabilitating and upgrading the existing 35-kilometre rail line and constructing a 2.5-kilometre bypass track. Once operational, this bypass will allow trains bound for Dhaka and Cox’s Bazar to bypass Chattogram station, easing congestion and significantly reducing travel time.
The Dhaka–Chattogram–Cox’s Bazar corridor currently handles approximately 32% of national passenger transport and 55% of freight movement. Enhancing this corridor’s capacity is expected to directly benefit the national economy. Experts note that improved rail connectivity will reduce transport costs, ensure a more reliable supply chain, and accelerate industrial and commercial activity.
The project also carries strategic significance for the tourism-dependent Cox’s Bazar region, which currently relies heavily on road transport. A modern rail network will unlock new opportunities for tourism, fisheries, and export-oriented industries while alleviating road congestion, reducing accident risks, and lowering carbon emissions.
ADB emphasises that the project will enhance rail service reliability and disaster resilience, promote environmentally sustainable transport, and strengthen regional connectivity as part of the Trans-Asian Railway network, positioning Bangladesh as a pivotal transport hub in South Asia.
Key Project Components:
| Component | Description |
|---|---|
| Rail Line Upgrade | Modernisation and rehabilitation of 35 km rail line |
| New Construction | 2.5 km bypass track |
| Infrastructure | Installation of dual-gauge tracks |
| Technology | Advanced signalling and improved drainage systems |
| Rolling Stock | 30 energy-efficient, environmentally friendly locomotives |
| Station Upgrades | Modernisation of three stations |
| Human Resources | Training and capacity building for Bangladesh Railway staff |
Established in 1966, ADB has long supported inclusive and sustainable development across Asia and the Pacific. In Bangladesh, this new investment is expected to strengthen the government’s ongoing efforts to modernise its rail sector and enhance the country’s transport efficiency and environmental sustainability.