64pc rise in goods train fare proposed

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Naim-Ul-Karim
The government has formed an expert committee to analyse the cost of carrying goods by the Bangladesh Railway vis-à-vis the charges it makes for transportation as the state-owned entity has proposed a 64 per cent fare hike to cope with huge financial losses, officials Tuesday.
They said the Ministry of Communications after two meetings last month formed the inter-ministerial expert committee for specific recommendations on the proposed fare hike.
"We've proposed the government that at least 64 per cent fare hike will be required to minimise our losses to some extent," a senior official of Bangladesh Railway told the FE.
He said: "Bangladesh Railway earns Tk1.81 from carrying a tonne of goods a kilometre against a cost of Tk2.96."
The official said Bangladesh Railway incurred losses over Tk5.0 billion in the last fiscal year as goods and container transportation fare had not been increased since 1992.
"Every year we are incurring losses nearly Tk4.0 billion-Tk5.0 billion due to non-adjustment of fare despite hefty rise in prices of fuel oil, machinery and wages of staffs and officials," he said.
Bangladesh Railway in the year 2005, 2003, 2002, and in 1998 proposed to increase goods and container transportation fare, but none of those proposals got approval from the government for unknown reasons, officials said.
"We thank the government as it has moved on our proposal, submitted at least four months ago," a Bangladesh Railway official said.
He said the inter-ministerial meeting, which decided to form the expert committee, has unanimously agreed to increase transportation fare of goods and containers.
Bangladesh Railway covers a length of around 2,855 route kilometers employing a total of 34,168 regular employees. It has a network with almost all the important business hubs of the country to carry goods and containers.
A communication ministry official said the expert committee, which has been asked to submit its recommendations by February 28, should fix the rate of the fare that does not hurt the businesses.
However, an expert committee member said recommendation will be made to raise the fare in phases. "We'll also present a workable proposal for fixing reasonable fare," he said.
Apart from cost analysis, he said the committee has also been instructed to review whether the government will require continuing subsidy to Bangladesh Railway after the fare hike.