Joint ESCAP UIC seminar on Facilitation and Costing of Railway Services along the Trans-Asian Railway December 2015 POSITION PAPER BANGLADESH

Transcription

1 Joint ESCAP UIC seminar on Facilitation and Costing of Railway Services along the Trans-Asian Railway December 2015 POSITION PAPER BANGLADESH Presented by: Qazi Md. Rafiqul Alam Additional Director General (Infrastructure) Bangladesh Railway

2 Brief about Bangladesh Railway 1862: Started its journey as Eastern Bengal Railway with km Jagoti-Darsana BG Rail link. 1961: Renamed as Pakistan Eastern Railway. 1972: Started providing services as Bangladesh Railway. 1998: East-West Railway connectivity over river Jamuna was established from the day of opening Bangabandhu Bridge. 2003: Direct BG train communication between East and West zone was established over Bangabandhu Bridge. 2007: Bangladesh signed TAR agreement. 2008: Direct passenger train Maitree Express between Dhaka and Kolkata established. 2011: Ministry of Railways formed under SRO-361. Covers and connects 44 Districts of the country out of 64 Districts. 456 stations encircling core business activities around the country. In 2014: 65 million Passengers and 2.52 million tonnes freight carried by BR. 3

3 Operational Information of Bangladesh Railway Two Zones: East and West Zone East Zone: km MG: km BG: 0.00 km DG: km West Zone: km MG: km BD: km DG: km Operational Division: 4 divisions Dhaka Chittagong Paksey Lalmonirhat Total Route Kilometer: km MG: km BG: km DG: km Existing Railway Network

4 Government s Strategic Position on establishing TAR Bangladesh singed the Intergovernmental Agreement on the Trans-Asian Railway Network on 09 November 2007 as 20 th signatory. Cabinet Committee approved in-principle to ratify the agreement on 09 March The Hona ble Minister of Foreign Affairs issued ratification of the said agreement on 11 August ESCAP recorded the date of 25 August 2010 as date of ratification.

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8 Proposed amendment in TAR network in Bangladesh In conformity with article 8(4) of the Agreement, Bangladesh proposed an amendment of TAR network as under: On the Darsana Gundum line Replace Tongi (junction) Dhaka With Tongi (junction) Dhaka Narayanganj [Mawa Bhanga Narail Jessore] Benapol (border station) (India) The above mentioned amendment proposal was adopted by 4 th meeting of Working Group on TAR Network held on November 2015 at Bangkok.

9 Regional Cooperation and Bangladesh In geopolitics, Bangladesh enjoys a unique position. As a member of SAARC, BIMSTEC and BCIM, Bangladesh plays important role in regional integration and cross border connectivity for regional trade facilitation and harmony. In the 18th summit most SAARC leaders had agreed to sign three agreements but unfortunately failed to sign following two: SAARC Motor Vehicles Agreement for the regulation of passenger and cargo vehicular traffic, and SAARC Regional Railways Agreement. However, 18th SAARC summit was encouraging for Bangladesh because it was more than what had happened in the past 29 years. Leaders finally signed one agreement - the SAARC Framework Agreement on Energy Co-operation aimed at sharing and trading electricity through common grids/corridors. When the SAARC, BIMSTEC and BCIM regions will be fully developed, each member country will demand much larger space for marketers and investors. Cross-border direct and indirect investment will rise manifolds.

10 SAARC Rail Corridors

11 Regional Transport Connectivity in South Asia and South-east Asia

12 Physical Barriers of TAR Network in Bangladesh Radhikapur (West Bengal, India) and Birol (Bangladesh): Train operation has been closed since 01 April, 2005 due to conversion of meter gauge line into broad gauge line in Indian side upto Radhikapur. To re-establish the connectivity, the government of Bangladesh undertook a project on to convert the existing Birol- Parbatipur meter gauge section into dual gauge under Japan Debt Cancellation Fund (JDCF). The physical progress of the project is about 95%. The project is targeted to be completed by June 2016.

13 Physical Barriers of TAR Network in Bangladesh (Contd.) Shahbazpur (Bangladesh) to Karimganj-Mohishasan (India): Train operation has been closed since 07 July, 2002 due to deplorable condition of railway track & bridges in Kulaura- Shahbazpur section. GOB has taken a project to reestablish this inter-country railway linkage under Indian Line of Credit fund. Design and supervision consultancy contract was signed on The project is targeted to be completed by June 2019.

14 Physical Barriers of TAR Network in Bangladesh (Contd.) Dohazari-Gundum (Bangladesh): feasibility study, detailed design and preparation of Bid document for construction of dual gauge rail line is being carried out under ADB funded TA project. Total 128 km dual gauge single line Railway track with the provision of future double track will be constructed from Dohazari to Cox s Bazar via Ramu and Ramu to Gundum near Myanmar Border. ADB has been agreed in-principle to finance more than US$ 1.00 Billion for the investment project. The project is planned to be completed by June The land acquisition process for the project is going on.

15 Physical Barriers of TAR Network in Bangladesh (Contd.) Railway Bridge parallel to existing Bangabandhu Bridge: There is load restriction of 43.7 KN/m and speed restriction of 20 kmph on existing Bangabandhu Bridge. As such it is essential to construct a separate bridge for railway to allow TAR traffic. Feasibility study has been carried out under ADB funded TA project. A dedicated railway bridge with the provision of DG double line is going to be constructed under JICA funding. Detailed design under JICA fund is targeted to be completed by The investment project would cost more than 1 billion USD and targeted to be completed by 2020.

16 Improvement of Line Capacity of TAR Network in Bangladesh Dhaka - Chittagong railway corridor: Out of total km Dhaka- Chittagong railway corridor, only km double track is to be constructed to establish double line train operation in the total corridor. Moreover, Government of Bangladesh has decided to convert the entire Dhaka- Chittagong railway corridor into DG for capacity enhancement of the corridor and unification of gauge.

17 Improvement of Line Capacity of TAR Network in Bangladesh (Contd.) Dhaka-Chittagong corridor (Contd.): railway 61km double track in Laksam- Chinki Astana section constructed under JICA & GOB fund was inaugurated on km double track in Tongi- Bhairab Bazar section constructed under ADB & GOB fund is targeted to be inaugurated in December nd Bhairab and 2nd Titas along with railway approaches construction is targeted to be completed by December Only remaining single line section Akhaura-Laksam (72 km) will be double tracked under ADB, EIB and GOB fund which is expected to be completed by 2020.

18 Improvement of Line Capacity of TAR Network in Bangladesh (Contd.) Chittagong-Dohazari section: railway Government of Bangladesh has planned to construct a second rail-cum-road bridge over river Karnaphuli at Kalurghat point. The project is likely to be financed by EDCF, Korea. Feasibility study is on progress by the Korean consultants engaged by EDCF. Loan Agreement is yet to be signed. Government of Bangladesh has planned to convert existing single meter gauge line of Chittagong-Dohazari section into dual gauge double line to cater increasing railway traffic. Feasibility study, detailed design and tendering services is going to be carried out under ADB funded TA project. Investment project is also likely to be financed by ADB.

19 Improvement of Line Capacity of TAR Network in Bangladesh (Contd.) Isurdi-Joydevpur section: GOB has planned to construct 164 km new DG railway track to allow all type of containers commonly used in maritime shipping, double staking of containers and cross border traffic. Feasibility study has been carried out under ADB funded TA project. The investment project would cost around USD 1060 million. A non-binding MOU was signed with China Civil Engineering Construction Corporation on 26 October The project assistance yet to be finalized.

20 Improvement of Line Capacity of TAR Network in Bangladesh (Contd.) Parbatipur- Ishurdi Section: GOB has planned to construct a second dual gauge railway track in Parbatipur- Abdulpur section (157 km) for double line operation of train services in the section. Feasibility study is yet to be done and project assistance yet to be arranged.

21 Improvement of Line Capacity of TAR Network in Bangladesh (Contd.) Akhaura-Kulaura- Sylhet : GOB has planned under Master Plan of Bangladesh Railway to convert meter gauge track of Akhaura-Kulaura- Sylhet section ( km) into dual gauge. The new dual gauge line will be designed with axle load of 25 ton and design speed of 120 kmph. Feasibility study is yet to be carried out. A non-binding MOU was signed with China Railway Construction Bridge Engineering Bureau Group Co. Ltd. on 15 September The project assistance is yet to be finalized.

22 Establishment of an Inland Container Depot Proposed ICD at Dhirasram with the capacity of 3,54,000 TEUs will be ideally suited for containerization of Indo- Bangla trade in the near future and may serve as land hub in Trans-Asian Railway (TAR), SAARC and BIMSTEC corridors. A feasibility study for construction of ICD at Dhirasram was conducted in A TA project under ADB fund is taken in hand for upgradation of the feasibility study along with detailed design preparation and tendering services for construction of the ICD. The investment project is likely to be financed by ADB

23 Proposed Padma Bridge Rail link in Bangladesh 180 km (approx.) BG railway line is going to be constructed connecting Dhaka-Mawa-Padma Bridge-Bhanga- Narail-Rupdia/Singia. The project is going to be implemented under China G2G funding. The line will shorten the distance between Dhaka-Benapole by 185 km. Feasibility study of phase-i & II and detailed design for phase-i is about to complete. Negotiation for commercial contract with China Railway Group Limited is going on.

24 Railway connection with Sea Ports in Bangladesh At present railway connection with only Chittagong sea port exists in Bangladesh. A project is going on to connect Mongla Sea Port under Indian Line of Credit and targeted to be completed by GOB has planned to construct another sea port at Payra and railway line from Bhanga to connect the port.

25 Railway connection with Sea Ports in Bangladesh (Contd.) Government of Bangladesh has decide to establish a power generation hub based on coal-fired power plants in Matarbari 3000 MW and Moheshkhali 6000 MW and also 3000 MW LNG based power plant in the same area in future. The power hub facility will include Deep Sea Port with Coal and Heavy jetty, coal yard, container handling facilities etc. Feasibility study, detailed design and tendering services for construction of railway link with the power hub and deep sea port is going to be carried out under an ADB funded TA project.

26 Some Logistics Potential Priority Sector Projects improvement of Bangladesh needs Railway Opportunities: Growing world trade needs more transportation. Modal shift from road to rail is important for sustainable development. Rail freight increasingly integrates into logistic solutions. International corridors in Europe, the Middle East and Northern Asia promoting efficient long-distance rail traffic. Major growth in intermodal traffic. Idea of globalization is now at implementation stage.

27 Challenges Some Potential for Priority Regional Projects Railway of Bangladesh Connectivity(1) Railway Major constraints: lack of connectivity between rail networks, differences of rail gauges and incompatible rolling stocks No connectivity with Myanmar (high cost) Through link unavailable between main part of India and NE states through Bangladesh Gauge difference India with 3 gauge system Bangladesh generally BG in the west and MG in the east with some dual gauge links MG in Myanmar/Thailand Rolling stock: India with air-braked rolling stock; Bangladesh vacuum-based Key issue: overall deteriorated rail networks, esp. in eastern India and Bangladesh Lack of adequate port facilities for container services Construction of deep sea port

28 Challenges Some Potential for Priority Regional Projects Railway of Bangladesh Connectivity(2) Railway High transportation and handling costs The high cost and uncertainties of trade and transport in the region are major constraints on economic recovery and development in the region Long and costly customs procedures and other inspections Customs administrations do not have aligned legislation and procedures. Complicated, opaque and non-standardized border procedures affect the business environment and deter foreign investment. Operation of international traffic is also critical Lack of political commitment and coordination Countries concerned with high level of corruption, smuggling, organized crime Connectivity to regional landlocked countries

29 Some Approaches Potential Priority for Cross Projects Border of Bangladesh Connectivity Railway Stage 1: Transport Corridor basic transport infrastructure Stage 2: Transport and Trade Facilitation Corridor Stage 3: Logistics Corridor Stage 4: Urban Development Corridor improved infrastructure in corridor towns/cities and enhanced capacities for public-private partnerships Stage 5: Economic Corridor Infrastructure is developed in specific geographical areas based on economic potential. Usually starts with transport links, but extends to other infrastructure as well as the software for their optimal use. Some Characteristics of Economic Corridors: - Create links to major markets; - With nodal points centers of enterprise development; - Extend the benefits of improved transport linkages to remote locations and integrates them with more prosperous areas; - Open up investment opportunities; - Promote synergies through the clustering of projects; - Provide demonstration effects.

30 Some Potential Implementation Priority Projects of Issues Bangladesh Railway Challenges Multiple-agency and multiple-country Financial resources, especially for regional projects Real/perceived dominance of one country Political conflict and security issues Difficulties in implementing soft infrastructure (border formalities, customs, etc.) Key Success Factors Economic complementarities Political support in each member country Depoliticization of regional issues Continuous ADB support Increasing number of common issues

31 Some Potential Priority The Way Projects Forward of Bangladesh Railway Ensure political commitment to enhance regional integration Address inadequate infrastructure -Increase financial resources, ODA, FDI, remittances, PPP Reduce high trade transaction costs Enhance productive capacities, value addition, diversification and reduction of dependency on commodities Strengthen legal framework, international, regional, sub-regional and bilateral agreements Enhance capacity to address impact of global trends: -slow down of economic development triple crisis, climate change, desertification Mainstream LLDCs issues into global post-2015 development agenda, SDGs Strengthen role and contributions of international regional organizations Emerging challenges: addressing climate changes, mobilizing private investments, etc.

32 For More Information Contact Qazi Md. Rafiqul Alam Additional Director General (Infrastructure) Bangladesh Railway Railbhaban Dhaka, Bangladesh Tel. & Fax: Thank you