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Joint ESCAP UIC seminar on Facilitation and Costing of Railway Services along the Trans-Asian Railway 09-11 December 2015 POSITION PAPER BANGLADESH Presented by: Qazi Md. Rafiqul Alam Additional Director General (Infrastructure) Bangladesh Railway

BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

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Page 1: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Joint ESCAP – UIC seminar on

Facilitation and Costing of Railway Services

along the Trans-Asian Railway 09-11 December 2015

POSITION PAPER

BANGLADESH

Presented by: Qazi Md. Rafiqul Alam Additional Director General (Infrastructure) Bangladesh Railway

Page 2: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Brief about Bangladesh Railway

1862: Started its journey as Eastern Bengal Railway with

53.11 km Jagoti-Darsana BG Rail link.

1961: Renamed as Pakistan Eastern Railway.

1972: Started providing services as Bangladesh Railway.

1998: East-West Railway connectivity over river Jamuna was

established from the day of opening Bangabandhu Bridge.

2003: Direct BG train communication between East and West zone was

established over Bangabandhu Bridge.

2007: Bangladesh signed TAR agreement.

2008: Direct passenger train “Maitree Express” between Dhaka and Kolkata

established.

2011: Ministry of Railways formed under SRO-361.

Covers and connects 44 Districts of the country out of 64 Districts.

456 stations encircling core business activities around the country.

In 2014: 65 million Passengers and 2.52 million tonnes freight carried by BR. 3

Page 3: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Operational Information of Bangladesh Railway

• East Zone: 1308.27 km

• MG: 1273.38 km

• BG: 0.00 km

• DG: 34.89 km

• West Zone: 1568.83 km

• MG: 534.67 km

• BD: 659.33 km

• DG: 374.83 km

Two Zones: East and West Zone

• Dhaka

• Chittagong

• Paksey

• Lalmonirhat

Operational Division: 4 divisions

• 2877.10 km

• MG: 1808.05 km

• BG: 659.33 km

• DG: 409.72 km

Total Route Kilometer:

Existing Railway Network

Page 4: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Government’s Strategic Position on establishing TAR

Bangladesh singed the “Intergovernmental Agreement on the

Trans-Asian Railway Network” on 09 November 2007 as 20th

signatory.

Cabinet Committee approved in-principle to ratify the agreement

on 09 March 2009.

The Hona’ble Minister of Foreign Affairs issued ratification of the

said agreement on 11 August 2010.

ESCAP recorded the date of 25 August 2010 as date of

ratification.

Page 5: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh
Page 6: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh
Page 7: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh
Page 8: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Proposed amendment in TAR network in Bangladesh

In conformity with article

8(4) of the Agreement,

Bangladesh proposed an

amendment of TAR

network as under:

On the Darsana – Gundum

line

Replace

Tongi (junction) Dhaka

With

Tongi (junction) Dhaka –

Narayanganj – [Mawa –

Bhanga – Narail –

Jessore] – Benapol

(border station) – (India)

The above mentioned amendment proposal was adopted by 4th meeting of

Working Group on TAR Network held on 23-24 November 2015 at Bangkok.

Page 9: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Regional Cooperation and Bangladesh In geopolitics, Bangladesh enjoys a unique position.

As a member of SAARC, BIMSTEC and BCIM, Bangladesh plays important

role in regional integration and cross border connectivity for regional trade

facilitation and harmony.

In the 18th summit most SAARC leaders had agreed to sign three agreements

but unfortunately failed to sign following two:

SAARC Motor Vehicles Agreement for the regulation of passenger and

cargo vehicular traffic, and

SAARC Regional Railways Agreement.

However, 18th SAARC summit was encouraging for Bangladesh because it

was more than what had happened in the past 29 years. Leaders finally signed

one agreement - the SAARC Framework Agreement on Energy Co-operation

aimed at sharing and trading electricity through common grids/corridors.

When the SAARC, BIMSTEC and BCIM regions will be fully developed, each

member country will demand much larger space for marketers and investors.

Cross-border direct and indirect investment will rise manifolds.

Page 10: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

SAARC Rail Corridors

Page 11: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Regional Transport Connectivity

in South Asia and South-east Asia

Page 12: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Physical Barriers of TAR Network in Bangladesh

Radhikapur (West Bengal,

India) and Birol (Bangladesh):

Train operation has been closed

since 01 April, 2005 due to

conversion of meter gauge line

into broad gauge line in Indian

side upto Radhikapur.

To re-establish the connectivity,

the government of Bangladesh

undertook a project on 15-04-

2009 to convert the existing Birol-

Parbatipur meter gauge section

into dual gauge under Japan

Debt Cancellation Fund (JDCF).

The physical progress of the project is about 95%. The project is targeted to be

completed by June 2016.

Page 13: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Physical Barriers of TAR Network in Bangladesh (Contd.)

Shahbazpur (Bangladesh) to

Karimganj-Mohishasan (India):

Train operation has been closed

since 07 July, 2002 due to

deplorable condition of railway

track & bridges in Kulaura-

Shahbazpur section.

GOB has taken a project to re-

establish this inter-country railway

linkage under Indian Line of

Credit fund. Design and

supervision consultancy contract

was signed on 13.08.2015.

The project is targeted to be completed by June 2019.

Page 14: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Physical Barriers of TAR Network in Bangladesh (Contd.)

Dohazari-Gundum (Bangladesh):

feasibility study, detailed design and

preparation of Bid document for

construction of dual gauge rail line

is being carried out under ADB

funded TA project.

Total 128 km dual gauge single line

Railway track with the provision of

future double track will be

constructed from Dohazari to Cox’s

Bazar via Ramu and Ramu to

Gundum near Myanmar Border.

ADB has been agreed in-principle to finance more than US$ 1.00 Billion for the

investment project. The project is planned to be completed by June 2020. The

land acquisition process for the project is going on.

Page 15: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Physical Barriers of TAR Network in Bangladesh (Contd.)

Railway Bridge parallel to existing

Bangabandhu Bridge:

•There is load restriction of 43.7 KN/m

and speed restriction of 20 kmph on

existing Bangabandhu Bridge.

• As such it is essential to construct a

separate bridge for railway to allow TAR

traffic.

•Feasibility study has been carried out

under ADB funded TA project.

• A dedicated railway bridge with the

provision of DG double line is going to be

constructed under JICA funding.

• Detailed design under JICA fund is

targeted to be completed by 2017.

•The investment project would cost more

than 1 billion USD and targeted to be

completed by 2020.

Page 16: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh

Dhaka - Chittagong railway

corridor:

Out of total 320.79 km Dhaka-

Chittagong railway corridor, only

78.34 km double track is to be

constructed to establish double

line train operation in the total

corridor.

Moreover, Government of

Bangladesh has decided to

convert the entire Dhaka-

Chittagong railway corridor into

DG for capacity enhancement of

the corridor and unification of

gauge.

Page 17: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh (Contd.)

Dhaka-Chittagong railway

corridor (Contd.):

•61km double track in Laksam-

Chinki Astana section

constructed under JICA & GOB

fund was inaugurated on

19.04.2015.

•64km double track in Tongi-

Bhairab Bazar section

constructed under ADB & GOB

fund is targeted to be

inaugurated in December

2015.

•2nd Bhairab and 2nd Titas along with railway approaches construction is targeted to be

completed by December 2016.

•Only remaining single line section Akhaura-Laksam (72 km) will be double tracked under

ADB, EIB and GOB fund which is expected to be completed by 2020.

Page 18: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh (Contd.)

Chittagong-Dohazari railway

section:

•Government of Bangladesh has

planned to construct a second

rail-cum-road bridge over river

Karnaphuli at Kalurghat point.

•The project is likely to be

financed by EDCF, Korea.

• Feasibility study is on progress

by the Korean consultants

engaged by EDCF. Loan

Agreement is yet to be signed.

•Government of Bangladesh has planned to convert existing single meter gauge line of

Chittagong-Dohazari section into dual gauge double line to cater increasing railway traffic.

• Feasibility study, detailed design and tendering services is going to be carried out under

ADB funded TA project. Investment project is also likely to be financed by ADB.

Page 19: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh (Contd.)

Isurdi-Joydevpur section:

•GOB has planned to

construct 164 km new DG

railway track to allow all type

of containers commonly used

in maritime shipping, double

staking of containers and

cross border traffic.

•Feasibility study has been

carried out under ADB funded

TA project.

•The investment project

would cost around USD 1060

million.

•A non-binding MOU was signed with China Civil Engineering Construction

Corporation on 26 October 2014. The project assistance yet to be finalized.

Page 20: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh (Contd.)

Parbatipur- Ishurdi

Section:

GOB has planned to

construct a second

dual gauge railway

track in Parbatipur-

Abdulpur section (157

km) for double line

operation of train

services in the section.

Feasibility study is yet

to be done and project

assistance yet to be

arranged.

Page 21: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Improvement of Line Capacity of TAR Network in Bangladesh (Contd.)

Akhaura-Kulaura-

Sylhet :

GOB has planned under

Master Plan of

Bangladesh Railway to

convert meter gauge

track of Akhaura-Kulaura-

Sylhet section (176.72

km) into dual gauge.

The new dual gauge line

will be designed with axle

load of 25 ton and design

speed of 120 kmph.

Feasibility study is yet to

be carried out.

A non-binding MOU was signed with China Railway Construction Bridge

Engineering Bureau Group Co. Ltd. on 15 September 2015.

The project assistance is yet to be finalized.

Page 22: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Establishment of an Inland Container Depot

Proposed ICD at Dhirasram

with the capacity of 3,54,000

TEUs will be ideally suited for

containerization of Indo-

Bangla trade in the near

future and may serve as land

hub in Trans-Asian Railway

(TAR), SAARC and BIMSTEC

corridors.

A feasibility study for

construction of ICD at

Dhirasram was conducted in

2004.

A TA project under ADB fund is taken in hand for upgradation of the feasibility

study along with detailed design preparation and tendering services for

construction of the ICD. The investment project is likely to be financed by ADB

Page 23: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Proposed Padma Bridge Rail link in Bangladesh

180 km (approx.) BG railway line is

going to be constructed connecting

Dhaka-Mawa-Padma Bridge-Bhanga-

Narail-Rupdia/Singia.

The project is going to be

implemented under China G2G

funding.

The line will shorten the distance

between Dhaka-Benapole by 185 km.

Feasibility study of phase-I & II and

detailed design for phase-I is about to

complete.

Negotiation for commercial contract

with China Railway Group Limited is

going on.

Page 24: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Railway connection with Sea Ports in Bangladesh

• At present railway

connection with only

Chittagong sea port exists in

Bangladesh.

•A project is going on to

connect Mongla Sea Port

under Indian Line of Credit

and targeted to be completed

by 2018.

•GOB has planned to

construct another sea port at

Payra and railway line from

Bhanga to connect the port.

Page 25: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Railway connection with Sea Ports in Bangladesh (Contd.)

•Government of Bangladesh has decide

to establish a power generation hub

based on coal-fired power plants in

Matarbari 3000 MW and Moheshkhali

6000 MW and also 3000 MW LNG

based power plant in the same area in

future. The power hub facility will

include Deep Sea Port with Coal and

Heavy jetty, coal yard, container

handling facilities etc.

• Feasibility study, detailed design and

tendering services for construction of

railway link with the power hub and

deep sea port is going to be carried out

under an ADB funded TA project.

Page 26: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Opportunities:

Growing world trade needs more transportation. Modal shift

from road to rail is important for sustainable development.

Rail freight increasingly integrates into logistic solutions.

International corridors in Europe, the Middle East and Northern

Asia promoting efficient long-distance rail traffic.

Major growth in intermodal traffic.

Idea of globalization is now at implementation stage.

Some Potential Priority Projects of Bangladesh Railway Logistics Sector improvement needs

Page 27: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Major constraints: lack of connectivity between rail networks,

differences of rail gauges and incompatible rolling stocks

No connectivity with Myanmar (high cost)

Through link unavailable between main part of India and NE

states through Bangladesh

Gauge difference

India with 3 gauge system

Bangladesh generally BG in the west and MG in the east with

some dual gauge links

MG in Myanmar/Thailand

Rolling stock: India with air-braked rolling stock; Bangladesh

vacuum-based

Key issue: overall deteriorated rail networks, esp. in eastern

India and Bangladesh

Lack of adequate port facilities for container services

Construction of deep sea port

Some Potential Priority Projects of Bangladesh Railway Challenges for Regional Railway Connectivity(1)

Page 28: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

High transportation and handling costs The high cost and uncertainties of trade and transport in the region are major constraints on economic recovery and development in the region

Long and costly customs procedures and other inspections Customs administrations do not have aligned legislation and procedures. Complicated, opaque and non-standardized border procedures affect the business environment and deter foreign investment.

Operation of international traffic is also critical

Lack of political commitment and coordination

Countries concerned with high level of corruption, smuggling, organized crime

Connectivity to regional landlocked countries

Some Potential Priority Projects of Bangladesh Railway Challenges for Regional Railway Connectivity(2)

Page 29: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Stage 1: Transport Corridor – basic transport infrastructure

Stage 2: Transport and Trade Facilitation Corridor

Stage 3: Logistics Corridor

Stage 4: Urban Development Corridor

–improved infrastructure in corridor towns/cities and

enhanced capacities for public-private partnerships

Stage 5: Economic Corridor

• Infrastructure is developed in specific geographical areas based on

economic potential.

• Usually starts with transport links, but extends to other infrastructure as

well as the “software” for their optimal use.

• Some Characteristics of Economic Corridors:

- Create links to major markets;

- With nodal points – centers of enterprise development;

- Extend the benefits of improved transport linkages to remote

locations and integrates them with more prosperous areas;

- Open up investment opportunities;

- Promote synergies through the clustering of projects;

- Provide demonstration effects.

Some Potential Priority Projects of Bangladesh Railway Approaches for Cross Border Connectivity

Page 30: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Challenges

• Multiple-agency and multiple-country

• Financial resources, especially for regional projects

• Real/perceived dominance of one country

• Political conflict and security issues

• Difficulties in implementing “soft” infrastructure (border

formalities, customs, etc.)

Key Success Factors

• Economic complementarities

• Political support in each member country

• Depoliticization of regional issues

• Continuous ADB support

• Increasing number of common issues

Some Potential Priority Projects of Bangladesh Railway Implementation Issues

Page 31: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Ensure political commitment to enhance regional integration

Address inadequate infrastructure -Increase financial resources, ODA, FDI, remittances, PPP Reduce high trade transaction costs

Enhance productive capacities, value addition, diversification and reduction of dependency on commodities

Strengthen legal framework, international, regional, sub-regional and bilateral agreements

Enhance capacity to address impact of global trends:

-slow down of economic development triple crisis, climate change, desertification

Mainstream LLDCs issues into global post-2015 development agenda, SDGs

Strengthen role and contributions of international regional organizations

Emerging challenges: addressing climate changes, mobilizing private investments, etc.

Some Potential Priority Projects of Bangladesh Railway The Way Forward

Page 32: BANGLADESH - United Nations ESCAP. Bangladesh.pdf · Cross-border direct and indirect investment will rise ... deplorable condition of ... Railway connection with Sea Ports in Bangladesh

Contact

Qazi Md. Rafiqul Alam Additional Director General (Infrastructure)

Bangladesh Railway

Railbhaban

Dhaka, Bangladesh

E-mail: [email protected]

Tel. & Fax: +88-02-9562051

For More Information

Thank you