Western Railway Plans Lease of 11 More Trains

Bangladesh Railway’s Western Zone has moved forward with plans to lease out 11 additional trains as part of an effort to reduce operating losses and strengthen revenue generation. A proposal seeking approval for the initiative has already been submitted to the railway headquarters.

Railway officials say the move is driven by persistent financial challenges, particularly in the operation of local and commuter services, where running costs often exceed income. The authorities believe that involving private operators through leasing arrangements could help improve efficiency while easing the financial burden on the state-run railway system.

According to railway sources, the Western Zone currently operates a diverse network consisting of six international trains, 62 intercity services, 55 mail and commuter trains, and 12 local trains. Of these, 24 mail, commuter and local services have already been leased to private operators.

Officials report that the existing leasing programme has produced encouraging results. After deducting operational expenses, the leased trains collectively generate around Tk13.3 million in net income each month. The apparent success of this arrangement has prompted the railway administration to consider expanding the programme by bringing 11 more trains under private management.

The decision comes at a time when the Western Zone has struggled to meet its revenue targets despite handling substantial passenger and freight traffic. Statistics show that the zone transported approximately 37.6 million passengers and freight consignments, yet earnings remained well below projected levels in recent years.

A review of financial performance illustrates the scale of the challenge:

Officials attribute part of the revenue gap to staffing shortages. Ansar Ali, Additional Chief Commercial Manager of the Western Zone, said the railway faces manpower constraints, while recruiting additional staff would significantly increase operating costs. He also noted that many passengers travelling on local services either avoid purchasing tickets or fail to do so regularly, resulting in lower revenue collection.

Ahsan Ullah Bhuiyan, Chief Commercial Manager of the Western Zone, echoed similar concerns. He said staff shortages make it difficult to conduct comprehensive ticket inspections on all mail and local trains, leading to substantial revenue leakage.

He added that financial records are prepared on a consolidated basis, meaning there is currently no separate accounting system that identifies the annual profit or loss of individual mail or local train services.

The proposed expansion of train leasing reflects Bangladesh Railway’s broader attempt to improve financial sustainability while maintaining services across the network. Whether the additional leases can significantly narrow the revenue gap will likely depend on effective oversight, service quality, and the ability of private operators to improve ticket collection and operational efficiency.