Bangladesh Railway to receive 20 engines worth over Tk 15b as grant from China

Bangladesh Railway is set to receive 20 metre-gauge engines from China as a grant, valued at more than 15 billion (1,500 crore) taka. The government has undertaken an initiative to procure these engines, which China will provide entirely free of cost.

To this end, Bangladesh Railway has prepared a project proposal. The railway authority expects to receive the donated engines within the next two years.

According to railway sources, there is currently an acute shortage of metre-gauge engines. Due to this scarcity, passenger and freight train services are being cancelled almost daily.

Under normal circumstances, purchasing new engines through the tendering process and completing associated formalities would take two to three years. However, since no tender is required for donated engines, it will be possible to obtain the new engines within one to one-and-a-half years.

Earlier, between 2020 and 2023, India provided Bangladesh with 30 broad-gauge old engines free of cost in several phases. Railway officials stated that India is rapidly shifting towards electric trains, leaving many diesel engines unused. These surplus engines have been given as grants to Bangladesh and several other countries.

At present, Bangladesh Railway has engines from nine countries, including the United States, Germany, Korea, and India. No engines have previously been imported from China, although several consignments of coaches have been brought in. Once the donated engines arrive, China will become the 10th country to be listed as an engine supplier for Bangladesh Railway.

According to sources at the Ministry of Railways, during Chief Adviser Professor Muhammad Yunus’s visit to China last March, the issue of engine and coach procurement for Bangladesh Railway was discussed. At that time, China expressed interest in donating 20 metre-gauge engines free of charge.

Subsequently, the Chinese Embassy in Bangladesh formally informed the Economic Relations Division (ERD) of the government about the donation. ERD then requested the railway authority to prepare a preliminary development project proposal (PDPP).

On 24 September, the PDPP received policy approval from Adviser Wahiduddin Mahmud. It was then sent to ERD, which will finalise the technical and ancillary formalities with the Chinese government before signing an agreement. The PDPP outlines a tentative project duration from January next year until December 2027.

Railway sources stated that the Ministry of Railways estimated the cost of purchasing 20 engines at 16.35 billion (1,635 crore) taka. This includes the price of the engines, spare parts for five years, and maintenance for five years.

The Chinese government will bear 15.91 billion (1,591 crore) taka of the expenditure, covering the full cost of engines, parts, and maintenance. The Bangladesh government has proposed to spend approximately 440 million (44 crore) taka, mainly for duties and taxes.

A senior railway official told Prothom Alo that, in the case of grants, consignments are generally transported by ship to Bangladeshi ports. The railway authority is then required to clear the goods by paying customs duties and taxes, as the donor country does not bear these costs.

Previously, when India supplied old engines, they delivered them up to the border, after which Bangladesh Railway paid the applicable duties and taxes.

According to railway sources, China has long expressed interest in selling railway engines to Bangladesh. However, Bangladesh has consistently prioritised engines from the United States and Europe. Positive service experience has been reported from railway coaches earlier procured from China.

Regarding the matter, the Director General of Bangladesh Railway Md Amzad Hossain told Prothom Alo that there is currently a shortage of engines, particularly metre-gauge ones. He added that receiving engines from China as a grant would be beneficial.

Relevant officials have stated that the shortage of metre-gauge engines is presently the most severe. Metre-gauge trains operate in Dhaka, Chattogram, and Sylhet, as well as in northern districts including Bogura, Natore, Lalmonirhat, Dinajpur, and Panchagarh. Broad-gauge trains operate in the Khulna and Rajshahi regions.

Due to the shortage of engines, multiple passenger and freight train services are being cancelled daily. In June alone, in the eastern zone of the railway, 435 train services—including local, mail, commuter, and freight—were cancelled. Over a thousand containers are currently stranded at Chattogram port terminals, unable to be transported due to the lack of engines.

Railway sources have warned that, if the situation continues, intercity train services may also have to be cancelled within the next two to three months. This would reduce passenger revenue and increase public inconvenience.