Bangladesh’s Container Shipping Association Warns of Looming Rail Cargo Congestion
An imbalance in railroad capacity in Bangladesh may pose a problem for cargo transportation throughout the country in the coming months as a current pileup could roll into Ramadan and Eid al-Fitr in March.
Ramadan typically results in a countrywide reduction in working hours that transpires until after Eid, which concludes March 30.
According to a report from supply chain publication The Loadstar, rail cargo movements could be halted for up to a week once Eid happens, as rail operators prioritize passenger services during the daylong religious holiday.
This could result in as many as 3,000 20-foot equivalent units (TEUs) of imports idling at Chattogram Port’s inland container depot by the end of April.
Fayyaz Khundker, chair of Bangladesh’s Container Shipping Association (BCSA), said that on Monday there were already 1,287 TEUs of Dhaka-bound cargo at the container depot, which has a listed maximum capacity of 876 TEUs.
“Unless any proactive measures are taken immediately, a catastrophic situation may occur in the coming months,” said Khundker. “Only six to seven months ago, there was a backlog of 60 days for boxes destined for Dhaka from Chittagong by train.”
Bangladesh Railway is currently operating just one service a day due to ongoing shortages of boxcars, engines and manpower. The Loadstar report says the operator would need to quadruple this if it is to clear the backlog, or risk huge bottlenecks at both Chattogram and Dhaka.
According to a December estimate listed by Indian business newspaper The Financial Express, the railway needs about 3,000 coaches and approximately 500 engines to run uninterrupted train service on all its routes. But currently, it has only 1,788 coaches and 295 operational engines.
On Wednesday, the BCSA expects to urge the railway and Chattogram Port Authority to take proactive measures as soon as possible.
The rail congestion concerns come just weeks after Bangladesh’s largest railway project officially opened its entire line to traffic. Conceived as part of China’s Belt and Road Initiative, the Padma Bridge Rail Link Project stretches 170 kilometers (105.6 miles) and reduces a railroad trip between Dhaka and southwestern city Jashore from an original 10 hours to just three hours.
According to Md. Fahimul Islam, secretary of the Ministry of Railways, the railroad would boost regional trade and social development by connecting southwestern Bangladesh to Dhaka. The project is anticipated to increase Bangladesh’s economic growth by 1.5 percent.
