Dhaka: The Asian Development Bank (ADB) and the government of Bangladesh have signed loan agreements totaling $688 million to upgrade the 35-kilometer railway line from Chattogram to Dohazari. The South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project will also construct a 2.5-kilometer bypass, facilitating direct train services from Dhaka to Cox’s Bazar without stopping at Chattogram station.
According to Bangladesh Sangbad Sangstha, the project aims to establish seamless connectivity along the Dhaka-Chattogram-Cox’s Bazar corridor, significantly boosting regional transport efficiency and economic growth. Secretary of the Economic Relations Division (ERD) Md. Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in Dhaka.
Jeong stated, “The project will enhance the resilience, reliability, and efficiency of rail services between Dhaka and Cox’s Bazar, facilitating a crucial shift from road to rail transport.” He further elaborated that the project would invigorate economic activities along the corridor, particularly boosting the tourism and fisheries industries. As a priority investment, it aims to unlock underserved areas of the Cox’s Bazar region by stimulating investment and trade. The project is also expected to strengthen the Bangladesh Railway network, enhancing the country’s capacity as a transport and transshipment hub in South Asia.
As part of the Trans-Asia Railway network, the Dhaka-Chattogram-Cox’s Bazar corridor currently handles 32% of passenger traffic and 55% of freight, highlighting the importance of improved rail infrastructure for economic integration, optimizing logistics, and fostering development in the country’s southeastern region and beyond.
Key activities in the project include track elevation, improved drainage, modernized signaling, dual-gauging, and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions. Additionally, it will strengthen the Bangladesh Railway’s operational capacity through staff training and upgrade three stations to provide inclusive, user-friendly facilities, as well as spaces for private sector commercial activities.
ADB, a leading multilateral development bank, supports inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to tackle complex challenges, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the planet. Founded in 1966, ADB is owned by 69 members, 50 of which are from the region.