BRAC Bank PLC is expanding its focus on cargo vessel financing as Bangladesh’s inland water transport sector grows with rising trade volumes and logistics upgrades, according to a press statement.
The push builds on ‘Torongo’, launched in December last year to finance construction, purchase, ownership transfer and maintenance of commercial vessels operating across the country’s river network.
Inland waterways remain a key freight corridor, with more than 3,800 kilometres of routes linking production hubs with Chattogram and Mongla ports and moving a significant share of domestic cargo.
Transport economics continue to favour waterways. World Bank estimates put river transport costs below Tk1 per tonne per kilometre, compared with Tk4.50 for road and Tk2.74 for rail, reinforcing its cost advantage.
Across the sector, industry estimates show over one lakh vessels operating on the network, including cargo ships, tankers, barges, dredgers, lighterage vessels and fishing trawlers, with waterways handling about 80 per cent of fuel transport.
Government dredging and river modernisation programmes are improving navigability and extending year-round operations, lifting demand for larger and more efficient vessels.
Financing, however, remains constrained, with operators still reliant on informal credit that raises costs and slows fleet modernisation.
Under ‘Torongo’, BRAC Bank offers up to Tk25 crore in financing for vessel construction, purchase, reconditioned ships, ownership transfer and maintenance, with repayment tenures of up to eight years.
The bank is targeting river and port hubs including Chattogram, Narayanganj, Barishal and Brahmanbaria, focusing on established operators with proven track records.
BRAC Bank Additional Managing Director and Head of SME Banking Syed Abdul Momen said formal financing in the segment remains limited despite strong demand for fleet expansion and efficiency upgrades.
He said reliance on informal funding has increased costs and constrained investment in safer and more efficient vessels.
He added that structured financing could improve logistics efficiency, reduce transport costs and support SME-led growth across trade-linked sectors.
