Bangladesh's Ambitious Rail Network Upgrade Targets 40% Freight Share

DHAKA, January 2026 – The imperative for robust and efficient freight logistics is a growing concern across Asia, where economic expansion often outpaces infrastructure development. Bangladesh, currently reliant on road transport for the vast majority of its goods, is initiating a substantial rail network upgrade to address this challenge and align with regional infrastructure development trends.

Dr. Sheik Moinuddin, Chief Adviser’s Special Assistant on Railways, announced plans to expand approximately 500 to 600 kilometers of rail lines. This ambitious project aims to dramatically increase the proportion of national freight moved by rail, targeting a 40% share. Key developments include modernizing signaling systems, procuring over 30 new locomotives, and establishing domestic capacity for railway coach assembly to foster self-reliance.

The strategic shift towards rail freight is expected to yield significant benefits, including a substantial reduction in road congestion and the costly damage inflicted on highways by heavy truck traffic. By integrating rail lines directly with ports and container depots, the government intends to streamline cargo handling and support the operational capacity of new facilities like Matarbari Port. This multimodal approach, combining rail and waterways, is projected to handle up to 50% of the country's goods.

In comparison to developed nations where rail often carries 20-40% of freight, Bangladesh's current three to four percent share highlights the scale of the transformation envisioned. Projects such as the dual-tracking of the Chattogram-Dohazari line, a new Chattogram bypass, and the rehabilitation of the Akhaura-Sylhet line into a dual-gauge track are central to this expansion.

This comprehensive plan underscores a broader trend in Asia towards revitalizing and expanding rail infrastructure as a sustainable and efficient solution for economic growth. By investing in its railway network, Bangladesh seeks to create a more resilient and modern transport ecosystem capable of meeting future demands and enhancing its position within regional supply chains.

Source: Bangladesh Sangbad Sangstha (BSS)