Written by The Banking Post
Bangladesh is preparing to enter the electric train era, with a major investment plan now under review to modernise one of its busiest rail routes.
The Ministry of Railways has submitted a Tk 42.83 billion proposal to electrify the Narayanganj–Joydebpur section of Bangladesh Railway—a first for the country. The project targets a 52.32-kilometre corridor, aiming to replace diesel traction with electric systems to boost efficiency and cut emissions.
Backed by foreign lenders, the plan will be financed largely through loans from the Asian Development Bank and the European Investment Bank, which are expected to provide Tk 28.31 billion. The government will fund the remaining Tk 14.52 billion.
The proposal has already cleared an initial review by the Planning Commission, with recommendations to trim land acquisition and shorten the implementation timeline—currently set at 10 years through 2036.
At the heart of the project is the installation of overhead catenary systems across 186 track kilometres, along with traction substations and a central control system. It also includes the procurement of 16 Electric Multiple Unit (EMU) trains and construction of a dedicated maintenance workshop.
Officials say the shift to electric traction will be rolled out in phases. The Narayanganj–Joydebpur stretch will come first, with future expansion planned toward Chattogram via Tongi.
The long timeline reflects the scale of work—covering infrastructure, rolling stock, and system integration—along with a built-in maintenance period after construction.
Beyond modernisation, the economic case is strong. Electrification is expected to reduce travel time by about 18% and cut operating and maintenance costs by roughly 35%. It is also seen as a cleaner alternative in one of the country’s most polluted corridors.
Financial projections suggest the investment could pay off quickly. By 2030, annual revenue from electric train operations is estimated to exceed Tk 8.49 billion, far outpacing projected operating costs of around Tk 0.79 billion—pointing to a sizable operating surplus.
Officials believe the project will not only strengthen railway finances but also improve connectivity across the Dhaka–Narayanganj–Gazipur belt, a densely populated and economically vital region.
