MoU signing with UK firm today

Bangladesh Railway (BR) is set to sign a memorandum of understanding with a UK firm today to conduct a feasibility study on US$ 7.5 billion investment proposal for developing 240-kilometre rail link between Dhaka and Payra sea port.
If the track is established, it will be an additional rail line along the planned Padma bridge rail line, officials said.
They said DP Rail will conduct the feasibility study to develop the line from Kamlapur Station to Payra Sea Port and submit a commercial proposal to the BR.
The company earlier submitted a foreign direct investment (FDI) plan to the Ministry of Shipping (MoS), which was working on development of the country's third sea port at Payra.
However, sources said, a complication with the UK firm's proposal developed as the BR has already made good progress by signing commercial contract with a Chinese company for establishing rail track on the same corridor - Dhaka to Bhanga through the Padma Bridge.
But the MoS's proposal to develop another railway corridor is to facilitate transportation of goods to and from the sea port as, officials say, the Padma rail corridor might not be able to tackle the loads to be increased after full operation of the port.
The officials said the decision to sign the MoU was taken after getting signal from the Prime Minister's Office (PMO) recently.
The BR and MoS earlier held meetings to consider the DP's proposal, but the BR later proposed the MoS to work on development of only the missing link part as a rail track from Dhaka to Bhanga will be established under a contract with the Chinese firm.
Following the meetings, the BR has also sent a proposal to conduct feasibility study on the missing part of the track from Bhanga to Payra sea port through Barisal as there is no land and rail track on that side.
An official said under the MoU, the DP Rail will conduct the feasibility study to find suitable location or track to be planned under the public private partnership (PPP) initiative.
"Whatever it may be, the study will help us understand the firm's decision and our study to help us negotiate with the UK firm," the official told the FE.
The government has set a target to start operation of the port by 2018 with at least one multipurpose and one bulk terminal, where deep-draught vessels from the bay can berth safely.
The port is expected to be completely operational by 2023 with all associated facilities.
    smunima@yahoo.com