Over the past decade and a half, recently ousted Awami League government had invested approximately BDT 880 billion in the country’s railway infrastructure. This funding has been used to construct new railways and procure engines and coaches. Existing rail lines have been repaired, signal systems modernized, and various infrastructure improvements have been made. Despite the substantial investment, Bangladesh Railways has continued to incur losses year after year, with several stations shutting down and services being curtailed. While the number of trains has increased, punctuality has decreased. Transportation and infrastructure experts attribute the deteriorating condition of the railways to short-sighted and unplanned investments coupled with irregularities and corruption.

According to data from the Ministry of Railways, Bangladesh Railways implemented 89 projects between June 2009 and June 2024, costing BDT 210.78 billion. Currently, 32 projects worth BDT 1.41 trillion are ongoing, with BDT 668.53 billion spent as of April this year. In total, BDT 879.31 billion has been spent on railway development over the past 15 years, combining both completed and ongoing projects.

The efficiency of an organization can be gauged by its operating ratio. It is primarily calculated through dividing total expenses by total revenue over a specific period. A higher operating ratio indicates weaker operational efficiency.

Bangladesh Railways reported an operating ratio of 158.92 percent for the fiscal year 2008-09 fiscal year, meaning it spent BDT 1.59 for every BDT 1 earned. The most recent data, from the 2020-21 fiscal year, shows that the operating ratio had risen to 258 percent, with the railway spending BDT 2.58 and earning BDT 1. That year, the railway incurred losses amounting to BDT 17.56 billion.

Revenues from passenger and freight train services have consistently fallen short of operational expenses, resulting in losses. A 2022 report from the Ministry of Railways cites ongoing irregularities and corruption among railway officials and employees as the primary causes of these losses. Additionally, the report highlights inefficient use of assets and failure to improve passenger services as factors preventing the reduction of these losses.

Experts in transportation and infrastructure also point to corruption as a significant factor behind the losses. Dr. Md. Hadiuzzaman, a professor of civil engineering at Bangladesh University of Engineering and Technology (BUET), told Bonik Barta, “In the past decade, significant investments have been made in the railways. We’ve been hearing from government officials that the railways are being modernized. However, much of the investment has been concentrated on infrastructure, some of which was unnecessary. For instance, some new stations have been built that only serve one or two trains. Similarly, new rail lines costing billions see only a single train per day. I believe that due to short-sighted planning, one-sided and unnecessary investments, and irregularities and corruption, the railways have regressed as an organization despite the massive investment.”

Criticizing the limited investment in passenger services, Dr. Md. Hadiuzzaman added, “We have seen very little investment that directly impacts passenger services over the past 15 years. The priority should have been to modernize the railway’s operational management. There was an opportunity to create a modern rail transport system through a combination of skilled personnel and advanced technology. Instead of focusing on these areas, the investment was channeled into infrastructure development. The effectiveness of these investments in improving passenger services is now being questioned.”

Bangladesh Railways aims to provide safe, reliable, and cost-effective rail transport services. One key indicator of achieving this goal is punctuality. Data from the railways show that in 2009, 88.3 percent of intercity trains on meter-gauge tracks ran on time. By 2021, this figure had dropped to 80.1 percent. During the same period, punctuality for mail and express trains fell from 84 percent to 76 percent, and for local trains, from 62 percent to 58 percent. Meanwhile, although punctuality improved for intercity, mail, and express trains on broad-gauge tracks, it declined for local trains.

Dr. Md. Shamsul Hoque, another professor from BUET’s civil engineering department, attributed the decline in punctuality over the past 15 years to misguided investments. Speaking to Bonik Barta, he said, “There is a significant lack of coordination in the railway’s development activities. The proper sequence of projects is not being determined. Most of the focus is on infrastructure development through investment projects. And that’s happening with the railways too. Rail track repair and maintenance are regular activities. If it is neglected, it’s only natural for train schedules to be disrupted. Additionally, the actual number of trains operating exceeds the capacity of our rail network. Our rail lines are in poor condition, yet more trains are running than they can handle. Instead of addressing these issues, large projects have been implemented over the past 15 years.”

When asked about the substantial investments and their outcomes, Bangladesh Railways Director General Sardar Sahadat Ali declined to comment on the matter.