Purchase Proposal of Railway Locomotives Under Scrutiny
Photo Courtesy: Wikipedia.
Bangladesh Railway is seeking to procure 30 meter-gauge diesel-electric locomotives. A project proposal in this regard has been submitted to the Planning Commission, and a meeting of the Project Evaluation Committee (PEC) has already been held. During the meeting, officials concerned faced questions over costs in several expenditure heads.
Speaking to Agamir Somoy, a PEC official, on condition of anonymity, said the estimated cost per locomotive (including CD and VAT) has been set at Tk 681.697 million. He noted that the basis for this cost estimation, along with a comparative analysis of costs of locomotives purchased under other projects, needs to be presented. Explanations have been sought on this matter. In addition, an allocation of Tk 4.6955 billion has been proposed for spare parts for five years after project completion which was also questioned in the meeting.
The official further said that the project proposal has been asked to specify the paperworks for estimating spare parts costs, reliable market prices, manufacturers’ published prices, and comparative prices from other projects. It has also been requested that the proposal clearly list the names, quantities, volumes, and unit prices of spare parts based on actual needs. Questions were also raised regarding the justification for a proposed expenditure of Tk 267 million for consultancy services.
In the proposal, Bangladesh Railway has stated that two service engineers would be appointed to maintain the 30 locomotives for five years, with an estimated cost of Tk 495.5 million. The rationale for this expenditure was also questioned at the PEC meeting. Additionally, concerns were raised over proposed costs of Tk7.5 million for testing fees, Tk 7.5 million for transport fees, Tk 550 million for bank charges, Tk15 million for port charges, Tk2 million for travel expenses, and Tk 7.5 million for survey work.
An official from the relevant division of the Planning Commission said the locomotive procurement proposal would soon be sent back to the Ministry of Railways for revision. Further steps will be taken once the recommendations are implemented.
According to the railway’s proposal, loans for purchasing the new locomotives will be provided by the Asian Infrastructure Investment Bank (AIIB). The total project cost has been estimated at BDT 28.2769 billion, of which Tk 8.2793 billion will come from the government’s own funds and Tk19.9976 billion from foreign loans.
On condition of anonymity, an official from the Planning Ministry told Agamir Somoy that if the project is approved at a meeting of the Executive Committee of the National Economic Council (ECNEC) after completion of processing, Bangladesh Railway aims to implement it by December 2029. He added that the project involves procuring 30 new meter-gauge diesel-electric locomotives, along with necessary capital machinery and equipment, to replace old and dilapidated engines. Through training, the project will also enable technology acquisition or knowledge transfer, ensure the supply of modern, safe, and high-quality locomotives for train services, and facilitate the operation of new trains to meet the growing demand of passengers.
Sources said that Bangladesh Railway currently has 296 locomotives (168 meter-gauge and 128 broad-gauge). According to mechanical codes and design specifications, the economic life of a locomotive is 20 years. However, the service life of 118 meter-gauge locomotives—about 70 percent of them—has already expired.
According to the project proposal submitted by Bangladesh Railway, the old locomotives are expensive to maintain and have low reliability. To improve smooth train operations in the meter-gauge section of Bangladesh Railway and to meet the rapidly growing demand for freight and intercity passenger traffic, procurement of the proposed 30 meter-gauge locomotives is considered necessary. At present, Bangladesh Railway is facing multifaceted operational problems due to a shortage of locomotives in its fleet.
At the same time, considering performance standards, diesel-electric locomotives generally need to be replaced after 30 years of service. From this perspective, 79 meter-gauge (MG) locomotives that have exceeded a 30-year service life—representing 48 percent of the total MG locomotive fleet—require urgent replacement. This is mainly because spare parts for these old engines are extremely difficult to source and are very costly.
Railway sources said that replacing old locomotives has become difficult due to budget constraints in the public sector and inadequate foreign assistance or loans. Over the past five years, Bangladesh Railway has procured 30 meter-gauge locomotives. Of these, 10 were purchased with loans from the Asian Development Bank (ADB), and 20 were procured using loans from Korea’s Economic Development Cooperation Fund (EDCF).
The Ministry of Railways has a plan to convert meter-gauge railway lines into dual-gauge lines by 2045. However, under the current circumstances, it is not feasible to convert the entire national railway network to dual gauge. As a result, Bangladesh Railway will need to continue operating meter-gauge trains until around 2055–2060.
