There seems to be no end in sight for delays in implementing the proposed inland container depot (ICD) project in Dhirashram of Gazipur as the land acquisition process remains incomplete.
Although plans to construct the Dhirashram ICD were set in motion back in 2007, it took another 10 years to complete the required feasibility study. In 2023, the Executive Committee of the National Economic Council (Ecnec) granted its approval, with the project slated for completion by September next year.
However, there has been almost no progress as project officials have yet to secure the required 222.55 acres of land. Besides, a six-kilometre broad-gauge rail link from Pubail station to Dhirashram was planned to facilitate cargo movement with Chattogram port, but that too has yet to see any physical progress.
The ICD project has faced multiple delays due to changing investors and financing plans. Initially, China showed interest but withdrew after joining the Padma Bridge project. Then, a Japanese firm was finalised but later pulled out. After that, the government pursued a Public-Private Partnership (PPP) with Dubai-based DP World, signing an MoU and holding meetings, but no progress was made. Finally, with the Asian Development Bank (ADB) pledging $250 million in 2020, the project was approved by Ecnec in 2023. However, delays continued due to fund disbursement issues caused by clerical errors and the change of government in August 2024.
As such, the now crumbling Kamalapur ICD remains the only depot for loading and unloading the cargo of businesses in and around greater Dhaka. With an annual handling capacity of 1.2 lakh TEUs (twenty-foot equivalent units), the government had planned to relocate the Kamalapur ICD to Dhirashram to overcome existing space limitations and accommodate the growing needs of Dhaka-based businesses.
But despite these plans, infrastructure development and upkeep at the Kamalapur ICD have been halted since the move was initiated, leaving the depot to become increasingly unsafe and unusable.
“At the pace this project is moving, it is doubtful whether it will be complete within even the next 10 years,” said Mizanur Rahman, president of the Dhaka Customs Agents Association, in an interview with The Times of Bangladesh.
Rahman, who has been closely involved with the project from the start, further informed that the Kamalapur ICD’s operational efficiency has suffered due to the stalling of infrastructure development works. He said the depot’s boundary walls have collapsed and its internal roadways are severely damaged, rendering it unfit for work.
Against this backdrop, Rahman warned that customs operations at the Kamalapur ICD, which generates revenue of Tk 5,000 crore annually, could be severely hampered as businesses will likely prefer safer locations for clearing their goods.
Once complete, the Dhirashram ICD is expected to have an annual capacity of 354,000 TEUs. The project’s budget was initially set at about Tk 2,878 crore, but it has since increased by roughly 21 percent to around Tk 3,473 crore.
The Dhirashram ICD is expected to eliminate the need for container trains to pass through central Dhaka, easing the city’s traffic congestion. Additionally, it will improve Bangladesh’s rail connectivity with India, Nepal, and Bhutan if transit routes are opened with the neighbouring nations.
Project Director Md Hamidur Rahman said delays in fund disbursement slowed the land acquisition process. But now that the funding issues are resolved, land acquisition is currently underway, and around Tk 40 lakh has already been spent to this end. Declining to comment on when the project may be completed, he said construction works would begin after the land acquisition.
The Dhirashram ICD is expected to quadruple the country’s container handling capacity and make customs operations more secure and efficient. Hamidur informed that the project will be implemented in phases. The first phase encompasses all land acquisition and the construction of a broad-gauge rail link, while the second phase involves the actual construction of the ICD. The project will be implemented under a Public-Private Partnership (PPP).
Faruq Alam, general secretary of the Dhaka Customs Agents Association, told TIMES that considering delays in establishing the Dhirashram ICD, the Chattogram Port Authority and Bangladesh Railway recently renewed their agreement to keep the Kamalapur ICD operational until 2030. However, he said that, given the current space constraints, it is doubtful whether operations can realistically continue beyond that date.
Shamsul Hoque, a professor of civil engineering at the Bangladesh University of Engineering and Technology (BUET), said the project should have been implemented much earlier. He added that enhancing the capacity of the country’s ICDs is crucial to improving railway profitability, while industrial zones near the depots would also benefit.
Officials at Kamalapur ICD said that most import containers carry raw materials for garment industries. But due to traffic congestion and movement restrictions inside Dhaka city, deliveries are often delayed by 10–12 hours daily. So, the Dhirashram ICD will enable garment factories to receive these raw materials more quickly once complete, the officials added.
According to the PPP model, a private firm becomes involved in the project only after the completion of supporting infrastructure. So far, no private firm has been engaged in the project, but DP World is likely to participate in building the ICD, according to officials of the railway ministry.
Once the Dhirashram ICD is operational, it will address the rapid growth of containerized traffic handled at Chattogram Port. The project will also facilitate key industries, particularly garment factories that are relocating to northern Dhaka areas, including Mirpur, Tejgaon, Demra, and factories along the Dhaka-Sylhet Highway, including the Dhaka EPZ, Savar, Tongi, and Gazipur.
The project will boost economic growth by improving infrastructure to increase container rail traffic along the Dhaka-Chattogram corridor, reduce transport costs, and enhance cargo reliability. Md Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that currently, it costs at least Tk 20,000–22,000 to send goods to Chattogram in a 20-foot container. However, the cost will be reduced to a maximum of Tk 3,000–5,000 once the project is completed. Moreover, the project will save significant time, helping businesses meet export lead times more efficiently.
