The Bangladesh Railway (BR) has shifted away from its plan for developing the Matarbari Intermodal Yard and feeder rail line between Chakaria and Matarbari Deep Sea Terminal based on a study, which finds that an intermodal yard with road connectivity is more cost-effective than one with a rail line.
The Japan International Cooperation Agency (JICA) conducted the pre-feasibility study, revealing that investing in an intermodal yard with road connectivity would require only about five per cent of the estimated cost, whereas the yard with a feeder rail would cost $1.5 billion.
Subsequent to the study, BR has approached JICA to secure funds for constructing the intermodal yard at Chakaria, according to sources.
An intermodal yard is typically a rail yard that handles the transfer of cargo between different modes of transportation, such as trucks and ships.
The construction of the yard at Chakaria aims to facilitate freight transportation through Cox's Bazar-Dohazari rail line to Dhaka Inland Container Depot (ICD) once the Matarbari Deep Sea Terminal becomes operational in 2027.
The sources said a recent meeting could not finalise the executive agency for the proposed project.
Apart from Bangladesh Railway, other public agencies like the Chittagong Port Authority, Roads and Highways Department and National Board of Revenue also have engagements with the project.
JICA conducted the pre-feasibility study in response to the railway's funding request for its intended feeder rail line and intermodal yard development last year.
The rail authorities also approached the Asian Development Bank (ADB) through the Economic Relations Division, given that the Manila-based lending agency is currently financing the Cox's Bazar-Dohazari rail link project.
According to the JICA study, $65 million would sufficiently develop the intermodal yard and its road connectivity in a shorter timeframe compared to the feeder railway.
Out of the total, $45 million is allocated for the yard, while the remaining funds are designated for road development.
An official noted that the initial JICA pre-feasibility study proposed road connectivity with the yard for the first stage, as freight transportation demand would not be much after opening of Phase-1 terminal
The JICA study highlights that the Chakaria Intermodal Yard would improve hinterland connectivity. Nevertheless, it called for prioritising cost minimisation in selecting the location and connecting roads.
The study presents four potential sites, ultimately determining the fourth one as feasible.
The envisioned facilities at the yard would enable the transhipment of containers between freight train wagons and tractor trailers, with a target capacity of 180,000 twenty-foot equivalent units (TEU).
Currently, road freight transportation currently prevails over rail, with covered vans commonly used for transport between the Inland Container Depot and shippers and consignees' premises.
Although the study suggests potential savings in container hinterland transport costs for both imports and exports, the benefits through the Chakaria intermodal yard are projected to materialise after the Dhaka ICD's expansion.
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