The Asian Development Bank (ADB) has approved $688 million in loans to upgrade the Chattogram–Dohazari railway line and build a bypass that will allow 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, according to an ADB statement.
The project will upgrade the existing 35-kilometre Chattogram–Dohazari rail line and construct a new 2.5-kilometre bypass under the South Asia Subregional Economic Cooperation (SASEC)–Chattogram–Dohazari Railway Project.
ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in Dhaka.
The project aims to strengthen connectivity along the Dhaka–Chattogram–Cox’s Bazar corridor, a major transport artery for both passengers and freight, and support economic growth in the southeastern region.
Hoe Yun Jeong said the project will enhance the resilience, reliability and efficiency of rail services between Dhaka and Cox’s Bazar, helping shift transport from road to rail.
He said improved rail connectivity is expected to boost economic activities along the corridor, particularly tourism and fisheries in the Cox’s Bazar region, while unlocking investment and trade in underserved areas.
The Dhaka–Chattogram–Cox’s Bazar corridor is part of the Trans-Asia Railway network and currently carries about 32 per cent of passenger traffic and 55 per cent of freight.
Key activities include track elevation, improved drainage, modern signalling, dual-gauge conversion and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions.
The project will also strengthen the operational capacity of Bangladesh Railway through staff training.
Three railway stations will be upgraded with inclusive and user-friendly facilities, along with space for private sector commercial activities to improve passenger services and non-fare revenue.
ADB said the investment will support Bangladesh’s efforts to build a more efficient, sustainable and regionally connected rail network while strengthening its role as a transport and transshipment hub in South Asia.
