Padma Bridge eats up major earnings from ferry services

State-run Bangladesh Inland Water Transport Corporation (BIWTC) has sought an increased subsidy of Tk 4.9 billion to meet expenditure as its earnings fell substantially following inauguration of the Padma Bridge.
The ferry services of Mawa-Banglabazar route have been suspended after the opening of the bridge for traffic and the BIWTC's earnings from the Mawa-Banglabazar and Paturia-Daulotdia fell by 70 per cent, according to a letter to the shipping ministry.
Earlier, the corporation had been covering the cost of loss-making operations of the coastal passenger services from the earnings of the ferry services.
Against this backdrop, the corporation in a recent letter to the shipping ministry sought an increased subsidy allocation to make up the cost of the coastal passenger services, and pay wages to its employees.
BIWTC Chairman S M Ferdous Alam in the letter claimed that the government owes a subsidy of Tk 3.363 billion to the corporation against the losses incurred by the ferry services over a period from fiscal year 1994-95 to FY 2021-22.
During the period, the government has so far paid only Tk 207 million, only around Tk 5.0 million a year, to the corporation.
However, the BIWTC is now apprehensive of not being able to cover the cost of the coastal passenger services from the earnings of the ferry services that may ultimately affect the people in the coastal areas, wrote the chairman.
The corporation now has 3,400 employees. To pay wages, incentives and encashment of leaves, the corporation needs Tk 1.75 billion a year, according to the letter.
Earlier in December last, the BIWTC had sought the same amount from the government, but has yet to receive any response.
A senior shipping ministry official told the FE that the corporation's earnings fell significantly due to suspension of the ferry services.
"We will forward the letter to the finance ministry for their consideration," he added.
[email protected]