Bangladesh Railway is planning to buy the same type of metre-gauge train locomotives for Tk69 crore each that were imported into the country five years ago at a cost of Tk38 crore apiece.
The nearly 80 per cent increase in the estimated price is being attributed to the depreciation of the taka against the US dollar and increases in the prices of various goods and services.
Sheikh Sakil Uddin Ahmad, additional secretary at the Ministry of Railways, told TIMES, “When the locomotives were purchased previously, the exchange rate of the US dollar against the taka was Tk84, which is now more than Tk120. At the same time, the prices of goods have also increased over the years. Naturally, locomotives will therefore have to be purchased at a higher price.”
Over this period, the taka has lost about 43 per cent of its value against the dollar.
According to Planning Commission data, the total cost of the locomotive procurement project has been estimated at Tk2,769 crore. Of this, Tk811.38 crore will come from government funding, while the Asian Infrastructure Investment Bank (AIIB) will provide Tk1,958 crore as a project loan.
The plan to purchase another 30 locomotives comes amid a shortage of locomotives and inadequate maintenance capacity at Bangladesh Railway.
Thirty locomotives imported from South Korea in 2021 at a cost of around Tk1,148 crore following a contract signed in 2018 have run into major maintenance problems before completing four years in service.
Although they were expected under the contract to remain operational for a long period, a significant number of the locomotives cannot be used regularly to operate trains.
Bangladesh Railway lacks sufficient skilled manpower and technical capacity for locomotive maintenance and repairs.
Asked whether the purchase of another 30 locomotives would place additional pressure on the railway, Sakil Uddin said, “The new locomotives will come with a service contract. The suppliers will provide servicing for three years. Within those three years, our personnel will also become capable.”
115 metre-gauge locomotives past economic life
In its project proposal, Bangladesh Railway said it currently has 292 locomotives in its fleet. Of these, 164 are metre-gauge and 128 are broad-gauge locomotives.
However, 115 metre-gauge locomotives have already exceeded their economic life.
The agency believes the addition of 30 locomotives would help meet rapidly growing demand for freight and intercity passenger transport on metre-gauge sections.
Under Bangladesh Railway’s master plan, initiatives have been taken to convert metre-gauge lines into dual-gauge lines by 2040.
However, delays in the conversion work mean metre-gauge trains will have to continue operating until 2055-60.
Md Nazmul Hasan, deputy chief for rail transport at the Physical Infrastructure Division of the Planning Commission, said, “The project to procure 30 metre-gauge diesel-electric locomotives will be placed before an Ecnec meeting. If implemented, the project will reduce train journey times, increase transport capacity and lower transport costs.”
Sakil Uddin, additional secretary at the Ministry of Railways, said, “Bangladesh currently needs 100 locomotives.”
