Dhaka, Bangladesh (BBN) - The Asian Development Bank (ADB) and the Government of Bangladesh on Monday signed loan agreements worth $688 million to upgrade the 35-kilometre railway line between Chattogram and Dohazari.
Under the South Asia Sub-regional Economic Cooperation (SASEC)–Chattogram–Dohazari Railway Project, a 2.5-kilometre bypass will also be constructed, enabling direct train services from Dhaka to Cox’s Bazar without stopping at Chattogram station, according to an ADB press statement.
The project aims to establish seamless connectivity along the Dhaka–Chattogram–Cox’s Bazar corridor, significantly enhancing regional transport efficiency and supporting economic growth.
The agreements were signed at a ceremony at the Economic Relations Division (ERD) office in the capital by ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong.
“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,” Mr Jeong said in the statement.
He noted that the project is expected to invigorate economic activities along the corridor, particularly benefiting the tourism and fisheries sectors. “As a priority investment, the project aims to unlock underserved areas of the Cox’s Bazar region by stimulating investment and trade,” he added.
The initiative is also expected to strengthen the Bangladesh Railway network, reinforcing the country’s capacity to function 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 carries 32 per cent of passenger traffic and 55 per cent of freight, underscoring the need for enhanced rail infrastructure to deepen economic integration, improve logistics efficiency, and support development in the country’s southeastern region and beyond.
Key project components include track elevation, improved drainage, modernized signaling, dual-gauging, 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, the statement said.
BBN/SSR/AD