Bangladesh has taken a significant step towards modernising its south-eastern transport infrastructure with the signing of a major financing agreement with the Asian Development Bank (ADB). Under the agreement, ADB will provide a loan of 688 million US dollars to support the upgrading and expansion of the rail link between Chattogram and Dohazari, a corridor widely regarded as strategic for both national and regional connectivity.
The loan agreement was formally signed on 22 December in Dhaka at the offices of the Economic Relations Division (ERD). The ERD Secretary, Md Shahriar Kader Siddiky, and ADB’s Country Director for Bangladesh, Hoe Yun Jeong, signed the document on behalf of their respective institutions. Officials described the project as a milestone in efforts to modernise Bangladesh’s rail network and to strengthen economic links across the south-eastern region.
According to ADB, the financing falls under the South Asia Subregional Economic Cooperation (SASEC) Chattogram–Dohazari Railway Project. The project includes the rehabilitation and reconstruction of approximately 35 kilometres of existing railway track, alongside the construction of a new 2.5-kilometre railway bypass. This bypass will allow trains travelling between Dhaka and Cox’s Bazar to avoid entering Chattogram railway station, thereby easing congestion and enabling more direct, faster services.
Once completed, the project is expected to significantly improve capacity and reduce travel times along the Dhaka–Chattogram–Cox’s Bazar corridor. This corridor already carries around 32 per cent of the country’s passenger traffic and approximately 55 per cent of freight movement, underscoring its importance to the national economy. Enhanced rail efficiency is expected to lower logistics costs, improve supply chain reliability and contribute to greater economic integration across regions.
The development is also expected to benefit tourism and export-oriented sectors, particularly in Cox’s Bazar, which remains heavily dependent on road transport. Improved rail access could support the growth of tourism, fisheries and related industries, while also easing pressure on highways and reducing carbon emissions by encouraging a shift towards rail-based transport.
ADB officials noted that the project will strengthen the reliability and resilience of rail services, promote environmentally friendly transport solutions and stimulate investment in comparatively underdeveloped areas along the route. As part of the Trans-Asian Railway Network, the corridor also has broader regional significance, enhancing Bangladesh’s role as a transport hub in South Asia.
The main components of the project are summarised below:
| Component | Description |
|---|---|
| Track upgrading | Modernisation and elevation of 35 km of railway line |
| New construction | 2.5 km bypass railway line |
| Infrastructure | Installation of dual-gauge tracks |
| Technology | Modern signalling systems and improved drainage |
| Rolling stock | Procurement of 30 fuel-efficient, eco-friendly locomotives |
| Stations | Modernisation of three stations with passenger-friendly facilities |
| Human resources | Training and capacity-building for Bangladesh Railway staff |
Established in 1966, ADB is a leading multilateral development bank dedicated to promoting inclusive, resilient and sustainable growth across Asia and the Pacific. With 69 member countries, including 50 from the region, ADB has long been a key partner in Bangladesh’s transport sector. This latest agreement further reinforces that partnership and signals continued commitment to the modernisation of the country’s railway system.