Billions have been invested in the Bangladesh Inland Water Transport Corporation (BIWTC) over the last 16 years. Despite huge investments, the agency is running on deficit. There is not any such indication that the agency is going to make profit anytime soon. Despite all these, the agency receives enormous government investments with people’s money. Still the agency is running different projects worth Tk 18.37 billion.
A total of 43 vessels are being built and two slipways are being constructed under a BIWTC project. The cost of the project was estimated at Tk 13.19 billion, which was increased to Tk 18.37 billion last year. The government is providing the entire fund for the project. The deadline for the project ends this December.
The construction work of the Padma Bridge was in full swing when this project got the government approval back in July, 2018. It was already assumed by then that the most popular Mawa Ghat will be closed once the Padma Bridge is inaugurated.
So the Mawa-Ghat-bound-ferries had to be shifted somewhere else or those would sit idle. Despite that, there was allocation for constructing some 12 ferries under this project. The BIWTC has already received six ferries and the remaining six ferries are yet to be delivered.
Several BIWTC ship services on different routes have been closed since the inauguration of the Padma Bridge. The ships on these routes are not in use now. Amid this situation, the BIWTC will receive three more passenger cruisers and three passenger ships with modern facilities.
The BIWTC has implemented a total of 18 projects at its own cost and government funding. A total of Tk 5.49 billion have been spent from 2009 to 2022 to purchase 70 vessels like ferries and ships. The agency which used to make huge profit is running on loss despite spending billions.
There is no alternative to the BIWTC services in the coastal, char areas and remote places as private companies do not invest in these areas due to lack of regular profits.Professor Gautam Kumar Saha, Naval Architecture and Marine engineering department, BUET
Speaking to Prothom Alo, BIWTC chairman Suraiya Parveen Shelly said the organisation used to earn a lot when people were more dependent on ferries. However, the demand for ferries has declined due to the advancements of road transports. And it resulted in a decline in their income.
She further said, “Projects are usually taken to increase income. Sometimes the perspective changes by the time a project ends."
According to BIWTCA figures updated in May 2024, the agency has some 174 vessels in total, including 59 ferries, 20 passenger ships, 16 coastal ships and 15 cargo ships.
Another head office
BIWTC previously operated from a five-story building in Motijheel, which served as its head office. However, in 2017, the office was relocated to a semi-pucca corrugated-sheet establishment in the Banglamotor area of the capital.
During a visit on 15 January, it was observed that the BIWTC building in Motijheel now houses offices rented by Pubali Bank, Sonali Bank, and Sundarban Courier Service. The office of the Assistant General Manager of BIWTC is located on the fourth floor, but the room was locked. A person from the Pubali Bank on the same floor mentioned that although the office exists, no BIWTC employees are present there.
BIWTC is now planning to construct a new head office by renting out the Motijheel building. The proposed project is expected to cost over Tk 6 billion.
Regarding this initiative, the office of the BIWTC chairman told Prothom Alo, “There is a valid reason for relocating to Banglamotor. The land in Banglamotor is BIWTC’s own property. Leaving such a valuable space unused would be wasteful. Constructing a new building will not only provide a modern office space but also generate revenue.”
Additionally, another project is being undertaken to develop and modernise BIWTC’s infrastructure. This includes the construction of jetties at Terminals 1 and 2 in Chattogram, with an estimated cost of Tk 2.24 billion.
A feasibility study is also underway to assess the possibility of expanding BIWTC’s capacity with foreign funding. If approved, this project could be implemented at a cost of Tk 27.83 billion.
Unlikely to return to profit
BIWTC) primarily provides ferry and passenger services on inland and coastal waterways. However, its main source of revenue comes from transporting vehicles and passengers via ferries.
Following the opening of the Padma Bridge, BIWTC’s ferry service at Mawaghat was discontinued, dealing a significant blow to the corporation’s income. Currently, the most profitable and widely used ferry route is Paturia-Daulatdia. However, vehicles that previously relied on this ferry can now opt to travel via the Padma Bridge, lowering the route’s importance.
BIWTC once operated passenger services from Dhaka to the southwestern region of the country, but these services have also been discontinued. Presently, the corporation runs four water buses in select areas of Dhaka, but overall, it has largely scaled down its inland passenger transport operations. Some coastal passenger routes—such as Chattogram-Hatia, Kumira-Guptachhara, Monpura-Sashiganj, and Majuchoudhuri Hat-Ilisha—remain operational, though they generate only limited profits.
An analysis of BIWTC’s financial data over the past 11 fiscal years (2013-14 to 2023-24) shows that the corporation was generally profitable. However, it recorded its first loss in the 2019-20 fiscal year. While it briefly returned to profitability the following year, BIWTC has suffered continuous losses since 2021-22.
The corporation reported a loss of Tk 22.7 million in 2021-22, which surged to Tk 398 million in 2022-23. According to the BIWTC Public Relations Department, the company incurred further losses exceeding Tk 330 million in the 2023-24 fiscal year.
Coastal services need to be increased
Goutam Kumar Saha, a professor at the Department of Naval Architecture and Marine Engineering at Bangladesh University of Engineering and Technology (BUET), believes that BIWTC may never return to its former glory due to the expansion of the country’s road network. Instead, he emphasises the need to enhance both the quality and coverage of BIWTC services in coastal, island, and remote areas.
Speaking to Prothom Alo, Saha stated that BIWTC services remain irreplaceable in these regions, as private sector investments are minimal due to a lack of profitability.
Experts suggest that BIWTC could introduce additional services in remote areas. For instance, instead of operating just one round trip per day, the corporation could increase the frequency to two. This would significantly make travel safer and more convenient for underprivileged communities.