What is Bangladesh Railway's current freight market share, and what is the target?

Bangladesh Railway currently holds barely 3 percent of the commercial freight market. Under Logistics Policy 2025, the target is to increase this to 20 percent by shifting bulk consumer freight and apparel exports from congested highways to dedicated rail corridors.

Which ports and terminals are affected by the rail infrastructure gap?

Chattogram Port handles 90 percent of Bangladesh's international merchandise trade. Older facilities like General Cargo Berth and Chittagong Container Terminal have direct rail tracks, but newer sites including Patenga Container Terminal and New Mooring Container Terminal lack equivalent rail integration, forcing cargo to move by road.

What is gauge fragmentation, and why does it complicate rail freight operations?

Bangladesh has track gauge fragmentation: eastern railway lines run on narrow metre-gauge tracks while northern and western lines use broad-gauge. This requires costly transshipment and leaves freight trains idle while diesel trucks transport containers, significantly increasing logistics costs and transit delays.

What role does the Dhirasram Inland Container Depot play in this logistics transformation?

The proposed Dhirasram Inland Container Depot in Gazipur is designated as the primary inland node to quickly clear maritime containers from coastal quays and bypass highway congestion. This reduces transit delays and inventory holding costs for textile mills and manufacturers around Dhaka.

When will the World Bank-funded feasibility study be completed, and what will it evaluate?

Technical evaluations under the Tk 930 million Green Railway Transport Project Preparation Facility Project are scheduled to complete by end of 2027. The study assesses rolling stock requirements, yard hardware, track connections between Faujdarhat and Chattogram Goods Port Yard, and modernised maintenance depot needs.

Shipping & Freight

High Impact

Bangladesh Eyes Rail Freight Boom: 3% to 20% Market Share Target

Oct 25, 2026

Get tomorrow's supply chain signal

Daily supply-chain brief. Free, unsubscribe anytime.

The signal

Bangladesh Railway is pursuing an ambitious freight transformation under Logistics Policy 2025, aiming to increase rail's share of commercial cargo from roughly 3 percent to 20 percent. The strategy centers on creating dedicated rail corridors linking Chattogram Port with manufacturing hubs around Dhaka, particularly targeting apparel exports, petroleum, fertiliser, and bulk imports. A Tk 930 million World Bank-backed feasibility study will evaluate track connections, rolling stock requirements, and infrastructure gaps by end of 2027.

The initiative addresses critical operational bottlenecks: congested highways, uneven rail integration at container terminals, and gauge fragmentation between eastern metre-gauge and western broad-gauge lines that force costly transshipment. Newer facilities like Patenga and New Mooring terminals currently lack direct rail connections, forcing cargo onto diesel trucks despite Chattogram Port handling 90 percent of Bangladesh's international merchandise trade. Success hinges on modern handling machinery, predictable transit schedules, competitive terminal fees, and seamless digital customs clearance at inland depots like the planned Dhirasram facility in Gazipur.

Shippers will benefit from reduced fuel costs and inventory holding expenses on longer routes, while manufacturers gain reliability. Cross-border potential exists through Trans-Asian Railway frameworks connecting India, Nepal, and Bhutan, pending harmonized customs and unified track standards.

How this affects:

Target

Open the full daily intelligence brief · Pulse 78

#rail-freight

#bangladesh-logistics

#chattogram-port

#modal-shift

#inland-container-depot

#supply-chain-infrastructure

#green-transport

#logistics-policy-2025

#track-gauge-standardization

#export-efficiency

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if gauge standardization reduces rail transshipment delays by 60 percent by 2028?

Simulate the impact of Bangladesh standardizing track gauges across eastern and western rail networks, reducing transshipment time and enabling freight trains to operate continuously without costly transfers. Model transit time reduction from Chattogram to Dhaka manufacturing hubs across containerised apparel, petroleum, fertiliser, and grain shipments. Compare cost savings and capacity utilization against current road-only baseline.

Run this scenario

Simulation Suggestion

this month

What if Patenga and New Mooring terminals add direct rail tracks within 18 months?

Model the operational impact of adding direct rail connectivity to Patenga Container Terminal and New Mooring Container Terminal, eliminating the need for diesel truck transfers. Simulate container flow redistribution, dwell time reduction at port, and per-unit cost changes for containerised apparel and consumer goods. Compare modal split outcomes under new infrastructure versus current state.

Run this scenario

Simulation Suggestion

strategic

What if cross-border Trans-Asian Railway harmonization unlocks 15 percent of volume to India by 2029?

Simulate demand and routing scenarios if Bangladesh Railway successfully harmonizes customs systems and track standards with India, Nepal, and Bhutan under Trans-Asian Railway framework. Model freight flow diversion into and out of Bangladesh across petroleum, fertiliser, grain, and apparel commodities. Assess capacity constraints, cost per ton, and sourcing strategy adjustments for regional supply chains.

Run this scenario

Go deeper:

Supply Chain Simulation: How It Works and How to Choose Software

What discrete-event, agent-based, and Monte Carlo simulation actually do, how to evaluate simulation software, and what it costs.

Shipping & FreightHigh Impact

Bangladesh Plans Integrated Rail Network for Chattogram Port by 2027

Oct 23, 2026

Shipping & FreightHigh Impact

Bangladesh Export Freight Costs Double as Shipping Lines Cut Bookings

Oct 20, 2026

Shipping & FreightHigh Impact

Bangladesh Export Freight Costs Double as Shipping Lines Cut Bookings