Container transport by rail from Chattogram port began nearly four decades ago. However, over this long period, a straightforward transport system for this crucial service in import-export trade has not developed. Goods are often delayed, causing frequent losses for traders. There are complaints that even when the Chattogram Port Authority wants to facilitate the process, the railway does not provide adequate support, leaving container transport almost stagnant.
Chattogram port serves as a key gateway for the country’s industry and import-export trade. Container transport by rail to Dhaka’s Kamalapur Inland Container Depot (ICD) started in FY 1986–87. By FY 2000–01, container transport on the round trip between Chattogram port and Dhaka’s Kamalapur ICD reached 52,737 units. Within a few years, rail container transport increased to 81,270 units in FY 2005–06. However, while annual import-export through Chattogram port has grown by 8–10 percent each year, container transport by rail has declined proportionally. As a result, transporting goods via alternative routes increases costs for traders.
Asked about the situation, steel import businessman Zahedul Islam Sohan told Bonik Barta, “The containers of our imported steel products have been stuck at the port for nearly a month. We are being fined at a rate of $24 per day for each container.” He expressed concern that the delays in transporting goods by rail to Kamalapur ICD would result in significant losses when selling the imported products.
Industry insiders say that transporting containers from the port by rail reduces costs and lowers the risk of damage to goods. For this reason, many traders import goods by setting customs clearance at Dhaka’s Kamalapur ICD. However, due to frequent shortages of locomotives and other issues, timely delivery of goods is often not possible. Consequently, goods remain stuck inside Chattogram port for days. Even when goods are at the port, traders must start paying fines four days after clearance if they cannot move the cargo by rail. Currently, with a large number of containers stuck at the port for nearly a month, traders claim they are facing substantial losses on imported goods.
Chattogram Port Secretary Md Omar Faruk told Bonik Barta, “The main issue is that due to locomotive problems, containers headed to the ICD get congested periodically. Importers from Dhaka, in particular, don’t receive their shipments for 15–20 days. Traders face financial losses because of this. Our request is that the railway quickly overcome its engine capacity issues. This is a productive sector for the railway, generating significant revenue. But in reality, the opposite is happening. For example, the maintenance of Dhaka’s Kamalapur container yard is supposed to be fully handled by the railway authorities, but they are not doing it. As a result, we have to fund the maintenance of that yard ourselves.”
According to the Railway Information Book–2020, 12 years after transporting 81,930 containers by rail in FY 2007–08, the railway moved 87,479 containers in FY 2019–20. Although the port handles containers at an average annual growth of 5 percent, transport by rail has increased very little. Despite investments exceeding hundreds of billions of BDT over the past one and a half decades, the construction of new railway lines, and the launch of new train services, there has been no significant improvement in rail transport of containers and goods. This has left traders lagging behind in import-export business connected to the country’s main port.
The port requires an average of 180 train movements per month between Chattogram and Dhaka’s Kamalapur ICD. In other words, if three container trains run daily from Chattogram and three from Dhaka, container congestion at Chattogram port would be avoided. Additionally, 20–25 trains are needed monthly to Sylhet, 10–12 to Sreemangal, 7–8 to Dhaka Cantonment, and 10–12 fuel wagon trains to Rangpur. Although there is a daily demand for 8–10 trains in each direction, currently the number of trains has dropped to two or three.
Railway sources said that although government agencies require rail transport for stone, boulders, fertilizer, and food grains, the railway cannot meet the demand. Previously, food grains, construction materials, and fertilizer were regularly transported by rail to various destinations across the country, but now the service has effectively fallen to near zero. The most recent train ran on July 16, a 30-wagon wheat train from Chattogram to Santahar. Transporting food grains by rail costs BDT 16,000–17,000 per ton, while road transport costs two to three times more. Yet due to the shortage of locomotives, the railway cannot transport food grains despite the demand.
According to railway data, the freight transport sector requires 23 locomotives daily. However, the transport division can maintain normal freight operations with a minimum of 13 engines. On August 20, only two locomotives were provided for freight transport. Similarly, on August 19, two engines were supplied, and on August 18, only three locomotives were allocated for freight trains. A long-standing lack of imported engines, combined with delays in repairing old, faulty engines, has created a severe crisis in the railway system. Reducing locomotive allocation to freight trains in order to meet passenger train demand has caused a major disruption in the country’s industry and commerce.
Regarding the situation, Bangladesh Railway’s East Zone General Manager Mohammad Subaktagin told Bonik Barta, “Our locomotive shortage has been ongoing for a long time. Given its importance to the country’s economy, the railway tries to prioritize adequate engine supply for freight transport. Often, when the engine shortage worsens or breakdowns increase, engine allocation for freight transport decreases. Currently, while container and freight transport has slightly reduced, the railway is planning to import engines under its projects and repair several old engines. Once these initiatives are implemented, the railway’s share in freight transport is expected to rise.”
Experts say rail freight services are essential for a modern port. Since the railway and the port are separate entities, even if the port wants to, it cannot expand container transport services for traders. Rail transport is preferred because it is cheaper, and customs clearance at Kamalapur ICD is easier. But every year, rail-related delays cause container congestion, leading to financial losses for traders and disruptions in import-export operations at the port. They believe that if the two agencies coordinate and resolve locomotive bottlenecks, trade and commerce in the country would gain significant momentum.
A transport division official at the Bangladesh Railway, speaking to Bonik Barta on condition of anonymity, said, “The railway could negotiate with the port or make joint investments in freight transport. Despite investing tens of billions of BDT in the railway, no modern system has been established for freight transport. In recent times, many new trains were allocated for political reasons, which diverted engines from the freight sector. Freight transport by rail should be given equal importance to make the country’s economy more efficient.”