$688m ADB loan to boost Dhaka-Cox’s Bazar rail connectivity

Business Desk :

The Asian Development Bank (ADB) and the government of Bangladesh have signed loan agreements worth $688 million to upgrade the Chattogram-Dohazari railway route, marking a major step toward improving the country’s southern connectivity and advancing regional economic integration.

The agreements were signed on this week at the Economic Relations Division (ERD) in Dhaka. ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong represented the two sides at the ceremony. Officials described the investment as a milestone for the national railway network, especially in linking Dhaka directly with Cox’s Bazar, a region experiencing steady growth in both tourism and trade.

The development focuses on a 35-kilometre stretch of railway between Chattogram and Dohazari, considered crucial for achieving seamless rail connectivity along the Dhaka-Chattogram-Cox’s Bazar corridor. A 2.5-kilometre bypass line near Chattogram will allow trains to travel directly from Dhaka to Cox’s Bazar without stopping at the Chattogram station, saving travel time and improving operational efficiency for both passenger and freight trains heading to the coastal region. Authorities believe this will make rail the preferred mode of travel for visitors to the country’s premier beach destination.

ADB said the project aims to improve the resilience and efficiency of rail operations while shifting passenger and freight movement from roads to railways. The Dhaka-Chattogram-Cox’s Bazar corridor currently carries a major share of the country’s transport activities and is also part of the Trans-Asia Railway network, linking Bangladesh with regional trade opportunities and opening wider access to global supply chains.

The initiative will modernise infrastructure through track elevation, better drainage systems and advanced signalling, ensuring the line remains operational even during adverse weather. The tracks will be made ready for dual-gauge operations to support more trains, while 30 new energy-efficient locomotives will be procured to reduce emissions and operating costs. Three stations will be redesigned with safer, more inclusive facilities to improve passenger experience and encourage economic activities in nearby communities.
Officials noted that once completed, the project will stimulate economic activities across Bangladesh’s southern belt.
Cox’s Bazar, home to the world’s longest natural sea beach, is expected to receive a significant boost in tourism. The fisheries sector and small businesses along the corridor are also likely to benefit as access to key markets becomes easier and more affordable.
The ADB has long supported Bangladesh’s efforts to improve transport infrastructure, which is seen as essential for sustaining economic growth amid rapid urbanisation and expanding trade. With more people and products moving every year, shifting to rail transport is being prioritised as a smart, greener solution to reduce congestion, cut costs and enhance safety.
The government hopes the upgraded railway will eventually integrate with broader regional networks, helping Bangladesh take full advantage of cross-border connectivity initiatives that promise new opportunities for investment, employment and development.