The Dhaka Circular Railway project, a pioneering public-private partnership between Bangladesh and South Korea, faces significant delays due to unresolved funding issues. Initiated in 2017, the project aimed to create a suburban rail network encircling Dhaka, but has been stalled since 2021. This delay arose after the involved South Korean companies, including Korea National Railways, SK Ecoplant, and GS Engineering and Construction, committed to financing only half of the projected Tk81,000-crore cost through the Korea Overseas Infrastructure and Urban Development Corporation.
The challenge for Bangladesh Railway, responsible for the project’s execution, has been to secure investors for the remaining funds. Despite efforts to engage various development partners, no additional investors have expressed interest, according to railway officials. Md Monirul Islam Firozi, director (engineering) of Bangladesh Railway, confirmed ongoing but unfruitful attempts to find suitable financiers.
An unnamed railway official suggested that potential investors find the project infeasible. This feedback points to broader concerns about the project’s economic viability despite its strategic importance.
The project proposal outlines an 81 km rail network, with 71 km elevated and 10 km underground, featuring 24 stations. Twelve of these stations will be interchanging, enhancing connectivity with other transport modes like MRT, BRT, and subways. Key interchanging stations include Purbachal North, Adamjee, Fatullah, Kamrangirchar, and Dhaka Zoo South. Other significant stations are Tongi, Trimukh, Demra, Siddhirganj, Chashara, Sadarghat, and Gabtoli.
The rail system is designed with standard gauge tracks, a 1,500-volt DC electric system, and a maximum operational speed of 120 km per hour, managed by a Communication Based Train Control System signaling system. Comprehensive feasibility studies and conceptual designs were conducted in 2018 and 2021, highlighting these features.
Transport experts see potential in the project but stress the need for integrated planning. Md Shamsul Hoque, a professor at the Bangladesh University of Engineering and Technology (BUET), noted that circular rail systems are common in developed countries and can efficiently transport commuters from city outskirts. However, he criticized the lack of coordination among multiple initiatives along the same alignment, which could undermine economic returns.
Md Hadiuzzaman, another BUET professor, emphasized the project’s promise but warned against fragmented implementation. He advocated for logical alignment of the high budget allocation with success criteria to avoid adverse outcomes.
Bangladesh Railway officials, including Secretary Mohammad Humayun Kabir, acknowledge the slow progress and nascent stage of the project. While they remain optimistic, the current situation necessitates a reevaluation of the implementation strategy.