Bangladesh and Asian Development Bank (ADB) on Monday signed loan agreements totaling $688 million to upgrade the 35-kilometer railway line from Chattogram to Dohazari.
A 2.5-kilometer bypass enabling direct train services from Dhaka to Cox’s Bazar without stopping at Chattogram station will be constructed under South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project.
The project aims to establish seamless connectivity along the Dhaka–Chattogram–Cox’s Bazar corridor that will boost regional transport efficiency and economic growth.
Secretary of the Economic Relations Division (ERD) Md. Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in Dhaka.
ADB Country Director for Bangladesh Hoe Yun Jeong said that 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.
“It will invigorate economic activities along the Dhaka–Chattogram–Cox’s Bazar corridor, particularly boosting the tourism and fisheries industries,” he said.
As a priority investment, the ADB country director said that the project aims to unlock underserved areas of the Cox’s Bazar region by stimulating investment and trade.
“Furthermore, it is expected to strengthen the Bangladesh Railway network, reinforcing the country’s capacity to function as a transport and transshipment hub in South Asia.”
As a component of the Trans-Asia Railway network, the Dhaka–Chattogram–Cox’s Bazar corridor currently accommodates 32% of passenger traffic and 55% of freight, underscoring the importance of enhanced rail infrastructure for economic integration, optimising logistics, and driving development in the country’s southeastern region and beyond.
Key project activities include track elevation, improved drainage, modernised signaling, dual-gauging, and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions.
It will also strengthen the Bangladesh Railway’s operational capacity through staff training and upgrade three stations to provide inclusive, user-friendly facilities, as well as spaces for private sector commercial activities.