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To phase out aging, breakdown-prone engines across its network, Bangladesh Railway has formulated a major Tk 2,769 crore acquisition scheme to procure 30 new meter-gauge diesel-electric locomotives, of which Tk 2,070 crore is earmarked purely for engine procurement.
The Development Project Proposal (DPP) is scheduled to be tabled for final authorization before the Executive Committee of the National Economic Council (ECNEC) on Wednesday (October 7). The project execution window is slated from July 1, 2026, to December 31, 2029.
Under the initiative, the state operator will source 30 modern meter-gauge diesel-electric engines at an estimated unit price of Tk 69 crore. The procurement will remain open and competitive, choosing global manufacturers through international open tenders rather than single-source contracts. The government of Bangladesh will finance Tk 811.38 crore from sovereign funds, while the Asian Infrastructure Investment Bank (AIIB) will cover the remaining Tk 1,958 crore through external credit.
Bangladesh Railway's fleet data reveals an operational inventory of 292 locomotives—164 meter-gauge and 128 broad-gauge. While standard mechanical code manuals designate an economic lifespan of 20 years for a locomotive, 115 meter-gauge engines currently hauling trains have already exceeded their economic threshold. More critically, 62 meter-gauge engines have been in continuous service for over 40 years. Operating these overaged locomotives not only inflates operational and maintenance expenses, but their frequent mechanical failures, low reliability, and the extreme scarcity of replacement spare parts often leave them stranded in workshops for prolonged periods.
Although railway master plans target converting all national meter-gauge corridors into dual-gauge tracks by 2040, execution delays mean meter-gauge operations will likely persist through 2055 to 2060. This long operational tail necessitated modern replacements to stabilize the network. The project also covers capital and consumable spares, workshop tooling, machinery, and institutional technology transfer. International manufacturers will deploy service engineers to train local mechanics, supervisors, and operations crews.
The modern haulage units are expected to ease severe locomotive shortages along the high-density Dhaka-Chattogram corridor, driving up freight and intercity passenger revenues while lowering maintenance downtime and easing national highway congestion. Planning Commission Physical Infrastructure Division Deputy Chief (Railway Transport) Md. Nazmul Hasan verified that project documents are primed for ECNEC consideration, while Bangladesh Railway Additional Director General (Infrastructure) Md. Suboktagin affirmed that procurement processes will roll out immediately following government and AIIB loan clearances.
https://thedailyexpress.news/news/business/1f1c0e24-3e81-60a0-84a9-39012fdf63d9