Bangladesh to get $688m loan from ADB to upgrade Chattogram-Dohazari rail line

The Asian Development Bank (ADB) and the government of Bangladesh on December 22 signed loan agreements worth $688 million to upgrade the 35-kilometre railway line from Chattogram to Dohazari, aiming to strengthen rail connectivity along the country's key southern corridor.

The financing will support the South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project, which also includes the construction of a 2.5-kilometre railway bypass.

Once completed, the bypass will allow direct train services from Dhaka to Cox's Bazar without stopping at Chattogram station, improving travel time and operational efficiency.

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According to a press release, the project seeks to establish seamless connectivity along the Dhaka-Chattogram-Cox's Bazar corridor, a critical route for passenger and freight movement, thereby boosting regional transport efficiency and economic growth.

The agreements were signed at a ceremony held at the Economic Relations Division (ERD) office in Dhaka by ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong.

ADB officials said the project would enhance the resilience, reliability and efficiency of rail services between Dhaka and Cox's Bazar, supporting a shift from road to rail transport.

The improved connectivity is expected to stimulate economic activities along the corridor, with particular benefits for tourism and fisheries in the Cox's Bazar region.

As part of the Trans-Asia Railway network, the Dhaka-Chattogram-Cox's Bazar corridor currently carries around 32 percent of passenger traffic and 55 percent of freight traffic, highlighting its strategic importance for national and regional economic integration.

Key project components include track elevation, improved drainage systems, modern signalling, dual-gauging of tracks and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions.

The project will also strengthen Bangladesh Railway's operational capacity through staff training and upgrade three stations with inclusive, user-friendly facilities and space for private sector commercial activities.