Corporatisation of Bangladesh Railway
WB urges govt to expedite process
Unb, Dhaka
The World Bank (WB) has urged the government to expedite corporatisation and modernisation of Bangladesh Railway (BR) to make the sector vibrant and competitive for rendering better services.WB Country Director Christine I Wallich made the call at a seminar in the city yesterday. The seminar on `The future of Bangladesh Railway: Learning from international experience' was organised by the World Bank in cooperation with the Bangladesh Railway (BR) at Dhaka Sheraton Hotel. Communication Minister Nazmul Huda was the chief guest at the opening session. Speaking on the occasion, the WB country director said a major modernisation of BR would be needed for better support of the economy. "Major investment will be needed in tandem with reforms to improve BR's organisational structure and management practices, supported by a revamped policy environment for railways," she added. Wallich said the ADB, JBIC and WB are joining hands to support the government's BR reform programme. "A multi-year, multi-donor programme of up to US$ 700-800 million is possible. The programme is designed to include both policy reform and expansion of the rail track as well as improving signalling and communication system and procurement of rolling stock," she added. Emphasising the need for a balanced transport system, Wallich said railway can be expanded with little land acquisition and is more environmentally sustainable which the road communication system is not. "Railway saves energy and generates less pollution," she added. The WB chief said the government's transport strategy has largely focused on the road sector with 85 percent of the annual transport development budget allocated to roads. Nazmul Huda said there is no doubt that BR could not perform adequately to retain its share of the transport market. "BR's declining revenue has been resulting in increasing deficit. With its resource constraints, the government cannot finance the increasing deficit," he added. Huda identified that the major impediment for BR to provide efficient services and to retain its market share is the limitation of its physical infrastructure. He said the government has undertaken steps to reform BR. "BR will be able to become a vibrant sector earning considerable amount of revenue if it can ensure improved services to the people," he opined. The minister informed that his ministry has been planning to establish an underground metro railway network in the capital city.
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