Eight rail tracks constructed at Tk 715b, few trains operate

The authorities constructed a new railway line from Rajbari to Tungipara in Gopalganj at a cost of over Tk 20 billion, to facilitate operation of 14 trains a day on the route. But the reality is in stark contrast as only two trains have been operating on this line since its inauguration by then-prime minister Sheikh Hasina in November 2018.

There are a total of eight railway tracks that the previous government constructed with billions of taka but are yielding little benefit.

The other lines are – Pabna to Dhalar Char, Laksham in Cumilla to Chinki Astana in Chattogram, Dohazari in Chattogram to Cox’s Bazar, Akhaura in Brahmanbaria to Laksham in Cumilla, Khulna to Mongla, Akhaura to Agartala, and Dhaka to Jashore via the Padma bridge.  

The government spent Tk 715 billion in total to construct these eight rail tracks, but the benefits have been far below the promises. Therefore, these are being labeled as white elephant projects. 

According to sources, some of the railway projects were taken under political considerations, while some on the advice of financing countries, and others at the behest of contractors. These have now turned into a burden for the people. 

Experts said the Awami League government left behind Tk 18,000 billion of loans, and the white elephant projects were undertaken with a portion of the loans. Besides, the projects got their costs and tenures extended repeatedly. 

Six of the eight projects were implemented by Chinese contractors, while the remaining two by Indian contractors. Bangladeshi entities worked as construction partners in five projects. 

Among the Bangladeshi companies, Max Group and Toma Construction received the maximum number of works. Sources indicate that local contractors usually partner with Chinese companies to enhance their eligibility for contracts. They played key roles throughout the railway projects, except for that of Padma Bridge rail link. 

The chairman and managing director (MD) of Toma Construction, Ataur Rahman Bhuiyan, is a former vice president of Awami League's Noakhali district unit. He ran as an independent candidate in the last parliamentary elections but was defeated. 

There are speculations that the party’s central organising secretary and former state minister Mirza Azam is associated with Toma Construction. However, he could not be reached for a statement as he has been in hiding since the ouster of Awami League government 

While talking to Prothom Alo over the phone, its MD Ataur Rahman said there is nothing wrong in receiving an additional works through competition. He claimed that Mirza Azam is not a partner in his company but is a longtime friend of him. The speculations stem from their close friendship.

Toma Construction is one of the companies that received the most contracts in the last 15 years in various sectors, including railways, roads, and shipping. There are allegations that the company secured an excessive number of contracts due to their connections with key figures in the previous Awami League government.

In 2010, a project to renovate the 78-kilometer old railway line between Rajbari and Tungipara, and to construct 44 kilometers of broad gauge main line and 8 kilometers of branch line, was approved. Initially, the cost was estimated at Tk 110.1 billion, with a deadline set for 2013. However, the onstruction cost finally rose to Tk 203.5 billion, and the project was completed after five years in 2018.

Railway officials, speaking on condition of anonymity, have said that the project was undertaken at the behest of prime minister Sheikh Hasina without any feasibility study. Max Infrastructure and Toma Construction Limited have constructed new railway tracks, bridges and station buildings.

According to railway sources, another project, driven by Sheikh Hasina's interest, is underway to construct a new railway line from Madhukhali in Faridpur through Gopalganj to Magura. This project was also initiated without a feasibility study. The estimated cost was Tk 120.2 billion. Approximately 25 kilometers of railway line is being constructed. China Railway Group and Bangladesh's Castle Construction won the contract.

Castle Construction belongs to the family of former Awami League MP Kazi Nabil Ahmed.

The project to construct the railway line from Ishwardi in Pabna to Dhalarchar was approved in 2010, with a completion target by 2015. However, the railway line was completed in 2018. Initially the estimated cost was Tk 9.83 billion, which later increased to 17.15 billion. The project did not include a feasibility study, and no trains ran on the line for two years after its inauguration. In 2020, the "Dhalarchar Express," a pair of trains, began operating to Chapainawabganj, though ten trains were supposed to be operated.

Railway sources said that the project was initiated due to the interest of then planning minister AK Khondker, who was from Pabna. The Ishwardi to Pabna section was completed by Max Group, while the Pabna to Dhalarchar section was contracted to Mir Akhtar and India's Rankin (Joint Venture).

A 169-kilometer railway line from Dhaka to Jessore is being constructed under the Padma Bridge Railway Link project. Last year, a segment of this railway line made operational. The entire line was expected to open in November.

The project proposal states that once completed, the new railway line will accommodate 24 pairs, or 48 trains, daily for passengers and freight. Train operations began last November, with ten passenger trains currently running, though freight services have yet to commence. There are plans to introduce a few passenger and possibly freight trains once the Jessore segment opens in November. However, railway officials are uncertain about the possibility due to a shortage of personnel and engines.

The project, which began in 2018, initially had an estimated cost of Tk 349.89 billion. After awarding the contract, the cost increased to approximately Tk 392.47 billion. The project is being implemented through a government-to-government (G2G) arrangement with China, which is providing USD 26.7 billion (58 per cent of the total cost).

The Padma Railway Link project did not invite open tenders for contractors. Instead, the Chinese government selected China Railway Group. The railway authorities determined the costs through negotiations with the contractor. There are major allegations that the project cost has gone up very high due to the lack of competition.

According to the Asian Transport Outlook (ATO), a database created by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), the cost per kilometer for the Padma Bridge Railway Link project is approximately USD 76.4 million PPP (Purchasing Power Parity) dollars.

Compared to similar railways in India, Malaysia, and China, the cost of the Padma project is significantly higher. For instance, India’s Western Dedicated Freight Corridor, spanning 1,534 kilometers and initiated in 2016, had a construction cost of about USD 9.3 million per kilometer, making the Padma project eight times more expensive.

Analysts said that while the Padma Bridge project holds potential for profitability, the Padma Railway Link, with its higher costs, risks becoming a white elephant.

Fouzul Kabir Khan, an advisor in charge of the ministry of railways, acknowledged the issue of excessive spending and lack of returns from railway projects.

Speaking to Prothom Alo, he stated that future projects would be undertaken more cautiously and that the previous government’s projects would be investigated for corruption.

The 101-kilometer railway line from Dohazari in Chattogram to Cox’s Bazar was constructed at a cost of Tk 154.76 billion. The new railway line began operations in December, with two trains running four times daily between Dhaka and Cox’s Bazar. Additionally, a train operates twice daily between Chattogram and Cox’s Bazar, though not regularly.

According to the project proposal, it was expected at least 50 per cent of tourists traveling to Cox’s Bazar from across the country would use the rail service.

It was expected that Tk 3.92 billion can be earned from passenger transport and Tk 500 million from freight in the first year of inauguration.

Railway officials said it was supposed to extend the railway line from Cox’s Bazar to the Myanmar border at Ghumdhum and Gundum to connect the Southeast Asia including China. However, due to Myanmar’s reluctance, the remaining 28 kilometers of the railway line was canceled, thus undermining the plan to transport containers and generate revenue.

The project was divided into two segments: the Dohazari-Chakaria section, which was constructed by China Railway Engineering Corporation and Bangladesh's Toma Group, and the Chakaria-Ramu-Cox’s Bazar section, completed by China Certification and Inspection Company and Max Infrastructure.

New railway lines from Khulna to Mongla and Akhaura to Agartala have been constructed with Indian loans. On 1 November last year, then Bangladesh’s prime minister Sheikh Hasina and Indian prime minister Narendra Modi inaugurated both lines. A train began operating on the Khulna-Mongla route in May, six months after the inauguration. However, the Akhaura-Agartala service has yet to start.

When the Khulna-Mongla railway line project was initiated in 2010 at a cost of Tk 17.21 billion, it was said that connecting Mongla Port by rail would bring about a "silent revolution" in the economy. The project, initially slated for completion in three years, took 13 years, with costs rising to Tk 42.61 billion after five revisions of the proposal.

Railway sources indicate that the Khulna-Mongla and Akhaura-Agartala projects were driven by Indian interest, with their consultants and contractors handling much of the work and materials largely sourced from India.

During the implementation of these railway projects, the railways ministry was led by Syed Abul Hossain, Obaidul Quader, Suranjit Sengupta, Mujibul Haque, and Nurul Islam Sujan. They were unable to make the railways profitable or significantly improve service quality. In fact, fares have been increased. In the fiscal year 2022-23, the railways incurred a loss of Tk 15.24 billion.

Following a student-led uprising on 5 August, the Awami League government’s 15-and-a-half-year rule ended. Obaidul Quader, Mujibul Haque, and Nurul Islam Sujan are now in hiding and could not be reached by phone.

Professor at the Civil Engineering Department of Bangladesh University of Engineering and Technology (BUET), Md Hadiuzzaman, speaking to Prothom Alo, said that many railway projects driven by the interest of politicians and contractors, led to higher costs and limited public benefit. As a result, politicians and contractors have been benefited instead of the people.