Bangladesh Railway has proposed spending nearly Tk8.95 crore on each of 200 new metre-gauge passenger carriages, a 37.9 per cent surge compared to the price paid for broad-gauge carriages imported from India just two years ago, raising serious questions over the cost of its latest procurement scheme.
Railway officials said, in 2024, the railway purchased broad-gauge carriages from India at Tk6.49 crore each.
The newly proposed figure represents an increase of Tk2.46 crore per carriage, despite the US dollar exchange rate rising by only 5.75 per cent over the same period.
The proposed project, carrying a total price tag of Tk3,779.25 crore, has also drawn sharp scrutiny from the Planning Commission over consultancy expenditure exceeding Tk51 crore for design verification, construction supervision, and testing.
At a Project Evaluation Committee (PEC) meeting on Sunday, the commission directed railway officials to slash consultancy costs and rationalise expenditure across other project components.
Sheikh Sakil Uddin Ahmed, additional secretary of the Railways Ministry’s Planning Wing, attributed the higher carriage prices to differences in manufacturing markets and freight costs.
“The broad-gauge carriages were imported from India some time ago. Furthermore, the number of international manufacturers producing metre-gauge carriages is limited, whereas India predominantly manufactures broad-gauge rolling stock,” he told TIMES.
He noted that transportation costs from neighbouring India were substantially lower, whereas importing carriages from South Korea or other overseas markets naturally incurs higher freight fees.
However, Ahmed stressed that the proposed figures remain a preliminary estimate rather than a final contract price.
He expressed optimism that competitive international bidding through an open tender process would drive down the ultimate cost.
Addressing the consultancy fees, he maintained that external consultants were necessary for a project of this scale, though efforts were already underway to curb costs in line with the PEC’s directives.
A Planning Commission official revealed that the meeting had also identified procedural gaps in the project’s financial documentation.
Although the Development Project Proposal (DPP) names the Asian Development Bank (ADB) as the primary funding partner, it failed to attach mandatory consent letters from either the ADB or the Economic Relations Division (ERD).
The commission instructed the authorities to secure and submit the required documentation promptly.
According to Bangladesh Railway, the project is scheduled to run from 1 September 2026 to June 2030.
Funding comprises Tk1,121.34 crore from government coffers and Tk2,657.91 crore sourced via ADB loans.
In addition to the 200 passenger carriages, the procurement package includes two metre-gauge and two broad-gauge breakdown relief cranes, along with four underfloor wheel lathe machines.
The heavy-duty cranes will assist in recovering derailed rolling stock after accidents to restore track operations more swiftly, while the underfloor lathe machines will enable wheel maintenance without dismantling wheelsets, reducing servicing downtime and boosting operational efficiency.
Ageing fleet heightens urgency
Bangladesh Railway has defended the heavy investment, citing a severely aging passenger fleet and a critical shortage of replacement carriages.
According to official project documents, the railway currently operates 1,282 metre-gauge passenger carriages.
Of these, 695 are over 35 years old, while a further 155 are aged between 31 and 34 years.
Under the railway’s official Mechanical Code, the maximum economic lifespan of a passenger carriage is 35 years.
The proposal acknowledges that 681 carriages are currently running with various mechanical defects, compromising both passenger safety and comfort.
However, despite exceeding their operational lifespan, the railway has been unable to decommission and scrap these carriages due to an acute lack of replacements.
The proposal also highlights surging passenger demand following network extensions to Cox’s Bazar and expanded services along major routes connecting Dhaka with Sylhet, Mymensingh, Lalmonirhat, and other regional hubs.
Over the past five years alone, Bangladesh Railway has introduced 104 new train services.
Ahmed emphasised that acquiring additional carriages is vital not only to meet swelling passenger numbers but also to ensure newly acquired locomotives are fully used.
“Procuring carriages is essential to meet passenger demand. Furthermore, several new locomotives have recently been purchased, and we require adequate rolling stock to ensure their full utilisation,” he said.
When asked why Bangladesh Railway continues to invest heavily in metre-gauge infrastructure rather than accelerating a transition towards a modernised standard or broad-gauge network, Ahmed pointed to the country’s vast legacy track network.
“Since we already have an extensive metre-gauge rail network, we must purchase these carriages to keep essential services running. Modernising the entire national railway infrastructure requires an immense capital investment,” he said.
