The Asian Development Bank (ADB) and the Government of Bangladesh (GoB) on Monday signed loan agreements worth $688 million to upgrade the 35-kilometre Chattogram-Dohazari railway line.
The South Asia Sub-regional Economic Cooperation (SASEC)-Chattogram-Dohazari Railway Project will also construct a 2.5-kilometre bypass, enabling direct train services from Dhaka to Cox's Bazar without stopping at Chattogram station, according to a press statement issued by the ADB.
The project aims to establish seamless connectivity along the Dhaka-Chattogram-Cox's Bazar corridor, significantly improving regional transport efficiency and supporting economic growth.
Secretary of the Economic Relations Division (ERD) Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in the capital.
"The project will enhance the resilience, reliability and efficiency of rail services between Dhaka and Cox's Bazar, facilitating a crucial shift from road to rail transport," Mr Jeong said.
He added that the project would invigorate economic activities along the corridor, particularly benefiting the tourism and fisheries sectors. "As a priority investment, it aims to unlock underserved areas of the Cox's Bazar region by stimulating investment and trade," he said.
The initiative is also expected to strengthen the Bangladesh Railway network, reinforcing the country's capacity to function as a transport and transshipment hub in South Asia, the ADB country director noted.
As part of the Trans-Asia Railway network, the Dhaka-Chattogram-Cox's Bazar corridor currently carries 32 per cent of passenger traffic and 55 per cent of freight, underscoring the need for enhanced rail infrastructure to deepen economic integration, improve logistics efficiency and support development in the country's south-eastern region and beyond.
siddique.islam@gmail.com
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