BR to buy 30 locomotives with AIIB support

FHM HUMAYAN KABIR | Published: May 09, 2026 23:03:25

The government is set to procure 30 railway engines with financial support from the Asian Infrastructure Investment Bank (AIIB) to strengthen the fleet of Bangladesh Railway (BR), officials said on Saturday.
The China-based lender has assured funding for the initiative aimed at addressing the shortage of locomotives for passenger and freight transportation across the country.
"We have taken the initiative to purchase new engines as the state-run Bangladesh Railway lacks adequate locomotives to transport passengers and goods," said a senior official of the Ministry of Railways.
Under the plan, 30 diesel-electric locomotives for metre-gauge tracks will be procured at an estimated cost of Tk 28.28 billion. Of the total, Tk 19.99 billion is expected to come from AIIB loans, while the rest will be financed by the government, said the official.
A project proposal has already been submitted to the Planning Commission for approval. Upon clearance, international tenders will be invited to procure the locomotives, which are expected to be delivered by December 2029, he added.
Currently, BR operates 296 locomotives, including 168 metre-gauge and 128 broad-gauge engines.
The procurement is part of the Bangladesh Railway Capacity Expansion (RACE) Project, aimed at enhancing passenger and freight transport services nationwide, BR officials said.
AIIB has committed approximately $164.57 million in loan assistance for the project, which has a total estimated cost of $241.47 million. Officials said the project is also part of a broader plan to add 60 new locomotives to the fleet. While AIIB will finance 30 units, the remaining 30 are expected to be procured under a separate project supported by the Asian Development Bank (ADB).
For years, Bangladesh Railway has faced a mismatch between rapid infrastructure expansion and a dwindling stock of reliable locomotives.
Relieving the severe engine shortages that recently caused freight backlogs at Chattogram Port, Bangladesh Railway (BR) plans to introduce more intercity services on profitable, high-demand routes.
Officials also said the procurement aims to replace outdated, high-emission engines with modern, fuel-efficient diesel-electric units, improving the turnaround time for cargo containers, which is vital for the country's import-export supply chain.
To ensure technical suitability, the Ministry of Railways has formed a high-level committee with experts from Bangladesh University of Engineering and Technology (BUET) to review the draft specifications of the engines.
The financing is expected to be approved by the end of 2026, paving the way for a more reliable and climate-resilient railway system, officials said.
According to BR, it has procured 30 MG locomotives in last five years with the financial support from the Asian Development Bank (ADB) and Korea.