The government has taken up a Tk 2,769.86 crore project to procure 30 new metre-gauge diesel-electric locomotives for Bangladesh Railway, aiming to replace ageing engines and improve passenger and freight services.

Of the total project cost, Tk 811.38 crore will come from the government and Tk 1,958.48 crore as a project loan from the Asian Infrastructure Investment Bank (AIIB).

The Planning Commission has recommended the project which was approved by the Executive Committee of the National Economic Council (ECNEC) on Wednesday.

The project, titled “Railway Capacity Expansion Project (Procurement of 30 Metre-Gauge Diesel Electric Locomotives for Bangladesh Railway)”, will be implemented by Bangladesh Railway under the Ministry of Railways from July 2026 to December 2029.

The project seeks to replace old and dilapidated locomotives, provide modern and safer engines, increase the availability of metre-gauge locomotives and meet growing demand for both passenger and freight transport.

Under the project, Bangladesh Railway will procure 30 metre-gauge diesel-electric locomotives along with capital and consumable spare parts, tools and equipment. Training will also be provided to railway engineers, supervisors and maintenance personnel for technology and knowledge transfer.

According to the project document, Bangladesh Railway currently has 292 locomotives, including 164 metre-gauge and 128 broad-gauge locomotives.

Of the metre-gauge fleet, 115 locomotives have already exceeded their 20-year economic service life prescribed under the Mechanical Code Manual. As many as 62 metre-gauge locomotives are more than 40 years old and are still being used for train operations.

The document says maintenance of these old locomotives is costly, while their reliability is low. Procuring spare parts for obsolete locomotives has also become difficult and expensive, resulting in prolonged downtime.

The project document further says 79 metre-gauge locomotives have been in service for more than 30 years and need immediate replacement based on operational experience that diesel-electric locomotives generally require replacement after about 30 years of service.

The proposed locomotives are expected to increase the sectional capacity of the railway and improve its ability to carry passengers and freight. This would also help increase Bangladesh Railway’s revenue and reduce operating, repair and maintenance costs.

The Dhaka-Chattogram-Dhaka route, one of the country’s busiest metre-gauge railway corridors, has been identified as a key area for the project. The government says existing road and rail capacity is insufficient to meet rising passenger and freight demand along the corridor.

The project will cover metre-gauge railway areas in Dhaka, Narayanganj, Narsingdi, Gazipur, Tangail, Kishoreganj, Bhairab, Mymensingh, Jamalpur, Netrokona, Sylhet, Chattogram, Cox’s Bazar, Cumilla, Chandpur, Noakhali, Brahmanbaria and Feni.

The Planning Commission said the project would help reduce train travel time and operating costs while increasing the carrying capacity of individual trains. It would also help Bangladesh Railway carry more passengers at lower cost and reduce pressure on road transport.

The commission noted that the project is consistent with the election manifesto commitment to expand domestic and regional rail connectivity and revive the railway as the central backbone of the national transport system.

A Project Evaluation Committee meeting on the proposal was held on May 14, 2026. Following the recommendations of the meeting, the Development Project Proposal was revised, reducing the estimated cost by Tk 57.83 crore, or 2.04 percent, from the earlier proposal of Tk 2,827.69 crore.

The revised proposal has been prepared with a total cost of Tk 2,769.86 crore for implementation from July 1, 2026 to December 31, 2029.

State Minister for Planning Zonayed Abdur Rahim Saki while briefing reporters after the ECNEC meeting at the NEC conference room said the government is procuring 30 metre-gauge locomotives to address the acute shortage of locomotives in Bangladesh Railway.

Saki said Bangladesh Railway currently needs around 70-80 locomotives to meet its operational requirements on metre-gauge routes, while the approved project covers the procurement of 30 locomotives.

“About 65 percent of our railway tracks are metre gauge. So, until the transformation of the railway network is completed, we need sufficient metre-gauge locomotives to keep the existing services operational,” he said.

The state minister said the normal economic life of a locomotive is around 20 years, but many of the locomotives currently operating on Bangladesh Railway have been kept in service beyond their expected lifespan through repeated repairs and maintenance.

Due to the shortage of serviceable locomotives, a number of train services on metre-gauge routes have had to be suspended, cancelled or rescheduled, causing considerable difficulties for passengers and railway operations, he said.

Saki said the government has taken a series of measures to make Bangladesh Railway more efficient and expand its capacity.

He said the long-term objective is to convert metre-gauge routes into dual-gauge or standard-gauge railway infrastructure, while ensuring uninterrupted services on existing metre-gauge routes until the transformation is completed.

Referring to ongoing railway projects, Saki said an initiative has already been taken to introduce electric train services, with a project approved for an electric railway connection between Dhaka and Narayanganj through Joydebpur.

He said another project is being pursued to establish a more direct railway connection between Dhaka and the western part of the country by constructing a new alignment, which is expected to reduce travel time significantly. The journey could eventually be completed within around two to two and a half hours, he added.

Saki also said work to introduce dual-gauge facilities on routes connecting the northern region is progressing.

He said the government plans to procure more locomotives in subsequent phases alongside increasing the capacity of railway workshops at Parbatipur and Saidpur for locomotive manufacturing, repair and maintenance.

“Since metre-gauge trains will continue to operate in Bangladesh for some time, we need to develop our own capacity to manage and maintain these locomotives,” he said.

Saki said strengthening domestic technical capacity would also help Bangladesh Railway adopt new technologies as they become available.

He said the government would continue to undertake projects in phases to modernise the railway network, expand its capacity and improve passenger and freight services.