Bangladesh Sets the Tracks for a Greener Future: BDT 93.5 Crore Railway Overhaul Underway
Bangladesh is investing BDT 935.1 million in a new project to create a sustainable, climate-resilient transport system. The Green Railway Transport Preparatory Technical Assistance Project aims to transform the country’s railway sector by creating a low-emission, environmentally friendly rail network.
Bangladesh Railway, under the Ministry of Railways, has received approval for the project from the Executive Committee of the National Economic Council (ECNEC), Bangladesh. It is expected to reach completion by March 2027.
The total investment includes BDT 283.7 million from the Government of Bangladesh and BDT 651.4 million from the World Bank as a soft loan through the International Development Association (IDA). The World Bank has committed USD 6 million in a Project Preparation Advance to expedite the initiative’s technical groundwork.
The project focuses on the busy Dhaka–Chattogram corridor, targeting important sites like Kamalapur Railway Station, Dhaka Airport Railway Station, Faujdarhat, the Chattogram Goods Port Yard (CGPY), the Bay Terminal at Patenga, and the Mirsharai Economic Zone.
At its core, the project will fund detailed feasibility studies and technical assessments necessary to modernize these facilities. The Dhaka Airport station will undergo planning for expansion and reconstruction. Kamalapur will be examined for the development of a multimodal transport hub, complete with yard redevelopment. Comprehensive studies will support new freight rail links from Faujdarhat to the Bay Terminal and enhance access to the Mirsharai Economic Zone.
A senior official from the Planning Commission announced that in February 2025, the Physical Infrastructure Division held a special meeting and recommended the project for full implementation, subject to certain conditions. The official stated that this preparatory phase will lead to future investments in freight locomotives, relief trains, and essential rail infrastructure in industrial areas.
The Green Railway initiative goes beyond a typical infrastructure project; it supports Bangladesh’s goals of reducing carbon emissions and promoting climate-friendly transport. A fully implemented green railway system would reduce pollution, lower transport costs, and enhance economic productivity through improved logistics and freight movement.
The benefits are projected to ripple across sectors—from reducing urban air pollution to enhancing regional trade competitiveness. The project could create new jobs and help establish Bangladesh as a progressive, environmentally responsible economy in the region.
With World Bank support for both preparation and investment, Bangladesh is improving its railway system and moving towards a more resilient and sustainable future.
