Published: July 4, 2025, 09:35 PM
Bangladesh Railway (BR) is facing a staggering financial loss of over Tk 1,400 crore for the 2023–24 fiscal year, sparking renewed concerns about the organisation’s operational efficiency and long-term sustainability.
Despite operating around 350 trains daily - including intercity, local, and freight services - and transporting 80 to 90 million passengers annually, the railway continues to struggle with outdated systems, weak revenue collection, and limited modernisation.
Passenger services remain BR’s primary source of income. However, experts argue that the lack of investment in freight transport - a typically more profitable segment - is holding the organisation back from financial viability.
At Dhaka’s Kamalapur Station, passengers like Masud, a businessman from Brahmanbaria, appreciate the comfort of trains over buses, but express frustration over frequent delays and chronic ticket shortages.
Railway officials, speaking anonymously, revealed that passenger fares have remained unchanged since 2016, despite repeated increases in fuel prices. As a result, ticket prices are subsidised by 40–50%, further straining the railway`s budget. Rising operational costs, fuel expenses, and staff pay-scale revisions since 2015 have added to the financial burden.
A severe staff shortage also hampers BR’s performance. Of 47,000 sanctioned posts, only about 23,000 are filled - limiting the ability to expand routes, improve service quality, or increase revenue.
Popular routes such as Dhaka–Chattogram and Dhaka–Khulna via the Padma Bridge have growing demand, but expanding services would significantly raise maintenance and infrastructure costs.
Experts point to poor route planning as a chronic issue. Mohammed Shahid Miah, president of the National Committee to Protect Shipping, Roads and Railways, noted that demand and service supply are often mismatched. While heavily used routes like Dhaka–Mymensingh are underserved, others with low demand are oversupplied, resulting in rising operational costs without proportional returns.
Retirement benefits also account for a major share of expenses, with nearly Tk 1,000 crore spent in 2024–25. Unlike other government departments, these costs are covered directly from BR’s operational budget due to the absence of a dedicated pension or welfare fund.
Railway revenue stood at Tk 1,925 crore in 2023–24, but has dropped to approximately Tk 1,800 crore in 2024–25, impacted by service disruptions during last year’s anti-discrimination protests.
BR Director General Afzal Hossain admitted that subsidies are unavoidable due to stagnant fare rates and rising maintenance costs. While freight remains profitable, he said the sector has declined in recent years.
"As a public service institution, our goal is to provide safe and convenient journeys - profit is not the only priority," he said.
Transport analysts suggest that Bangladesh Railway can learn from global examples - particularly India, China, and several European countries - where strategic investments in freight services have driven profitability. Experts stress that without long-term planning and reform, BR risks remaining financially unsustainable in the years ahead.
