The Asian Development Bank (ADB) has approved a $688 million loan to upgrade the Chattogram–Dohazari railway line and construct a bypass enabling direct train services from Dhaka to Cox’s Bazar without stopping at Chattogram station.
The loan agreements were signed on Monday between the Economic Relations Division (ERD) and ADB.
ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong formalised the agreements at a ceremony in Dhaka.
The project, under the South Asia Subregional Economic Cooperation (SASEC)–Chattogram–Dohazari Railway Project, will modernise the existing 35-kilometre Chattogram–Dohazari line and construct a new 2.5-kilometre bypass.
Hoe Yun Jeong said the project will enhance the resilience, reliability and efficiency of rail services between Dhaka and Cox’s Bazar, encouraging a shift of transport from road to rail.
He added that improved connectivity is expected to boost economic activity along the corridor, particularly in tourism and fisheries, while unlocking investment and trade in underserved areas.
The Dhaka–Chattogram–Cox’s Bazar corridor, part of the Trans-Asia Railway network, currently carries 32 percent of passenger traffic and 55 percent of freight.
Key project activities include track elevation, modern signalling, improved drainage, dual-gauge conversion, and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions.
The project will also upgrade three railway stations with inclusive and user-friendly facilities and space for private sector commercial activities, enhancing passenger services and non-fare revenue. Staff training will strengthen the operational capacity of Bangladesh Railway.
ADB noted that the investment will support Bangladesh’s efforts to build a more efficient, sustainable, and regionally connected rail network, strengthening the country’s role as a transport and transshipment hub in South Asia.
