Bangladesh Plans Integrated Rail Network for Chattogram Port by 2027
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Bangladesh has launched a World Bank-financed initiative to develop an integrated railway network connecting all terminals at Chattogram Port, the country's primary seaport handling 90% of import-export traffic. The Tk 930 million Green Railway Transport Project Preparation Facility Project will conduct a feasibility study by end-2027, examining infrastructure improvements across the Dhaka-Chattogram freight corridor, links to Chattogram Goods Port Yard, and Bay Terminal connectivity. This aligns with Bangladesh's Logistics Policy 2025, which aims to shift freight transportation from congested roads to railways, raising rail's freight share from 2-3% to 20%. The initiative addresses critical capacity constraints: five operational terminals currently lack equally direct railway access, with much existing infrastructure relying on metre-gauge tracks that must integrate with future broad-gauge plans.
The study will assess requirements for locomotives, container-handling equipment, loading tracks, storage facilities, and connectivity with the Mirsharai Economic Zone. Environmental benefits are substantial, as rail transport emits 6-10% less carbon than road transport while offering superior energy efficiency for bulk cargo movement. For supply chain professionals, this signals structural changes in Bangladesh's logistics landscape. Successful implementation could significantly reduce freight costs, improve port throughput, and enhance competitiveness of Bangladesh-based trade.
However, benefits depend on building a coordinated system with adequate capacity, reliable services, and seamless connections. The project timeline extending to 2027 provides medium-term planning visibility for companies operating in or through Chattogram Port.
Frequently Asked Questions
What This Means for Your Supply Chain
What if integrated rail connectivity reduces Chattogram Port trucking costs by 25% by 2028?
Simulate the impact of a 25% reduction in last-mile trucking costs for cargo departing Chattogram Port, resulting from increased rail intermodal capacity. Assess how this cost reduction affects sourcing economics, inventory positioning, and route selection for Bangladesh-based exports and imports. Model the knock-on effects for manufacturers and traders using Chattogram as their primary port.
Run this scenarioWhat if rail freight capacity grows to 20% of total port throughput by 2030?
Simulate the effects of Bangladesh achieving its Logistics Policy 2025 target of 20% rail freight share (up from 2-3%) by 2030. Model the impact on road congestion reduction, port terminal capacity utilization, transit time variability, and logistics costs across Bangladesh. Assess implications for supply chain resilience and alternative routing strategies.
Run this scenarioWhat if metre-gauge to broad-gauge integration causes 2-month service disruptions during 2027-2028?
Simulate potential service disruptions during infrastructure conversion from metre-gauge to broad-gauge rail systems. Model the impact of a 2-month period with reduced rail connectivity and increased reliance on road trucking. Assess how supply chain teams should adjust inventory policies, mode selection, and carrier agreements to mitigate service level risk during the transition.
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