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The government is set to approve a Tk2,769 crore project to procure 30 metre-gauge diesel-electric locomotives for Bangladesh Railway to replace ageing engines.
The proposal is due before the Executive Committee of the National Economic Council (ECNEC) on Wednesday, a senior official told the Daily Sun. If approved, the project will be implemented by December 2029.
The government will provide Tk811.38 crore, while the Asian Infrastructure Investment Bank (AIIB) will finance Tk1,958 crore. Each locomotive will cost about Tk69 crore, bringing the total procurement cost to Tk2,070 crore. The engines will be bought through open tender, and the proposal names no country or company.
Of the 164 metre-gauge locomotives in the fleet, 115 have outlived their 20-year economic life under the railway’s Mechanical Code Manual. The project proposal says 62 are more than 40 years old but still haul trains. It adds that diesel-electric locomotives generally need replacing after 30 years, and 79 metre-gauge engines have passed that mark.
The railway has 292 locomotives in total: 164 metre-gauge and 128 broad-gauge.
The proposal says maintaining the old engines is costly and spare parts are increasingly hard to find and expensive. It warns that prolonged unavailability of locomotives could disrupt services and leave some trains off the tracks.
Bangladesh Railway officials said the new engines would help meet rising demand for intercity passenger and freight services, improve reliability and increase the number of engines available. The railway expects lower maintenance costs and higher revenue.
The project also covers capital and consumable spare parts, tools and equipment. Railway engineers and supervisors will receive technical training, and manufacturers’ experts will train maintenance and operating staff locally. Service engineers will provide technical support for a specified period.
A Planning Commission official said preparations were complete. “Once implemented, the project will reduce travel time, increase transport capacity and lower transport costs,” he said. “As a result, Bangladesh Railway will be able to carry more passengers faster and at lower cost, helping reduce pressure on road transport and the associated expenditure.”
Md Shuboktagin, additional director general (infrastructure) of Bangladesh Railway, said the project would be financed by an AIIB loan. “Procurement-related matters will be finalised after the project is approved,” he said.
The proposal says the railway’s share of the national transport market remains low despite high demand, and that a larger share could cut government spending on road infrastructure and maintenance. It describes the Dhaka-Chattogram route as one of the busiest metre-gauge corridors, where road and rail capacity is insufficient.
The railway also cited delays in converting metre-gauge lines to dual gauge. The Railway Master Plan targeted conversion by 2040, but metre-gauge operations may now continue until 2055-60.