Dec 31, 2013 - efficiency and service will have the prime responsibility of railway. .... These procedures can be manual steps or an automated cascade. ...... In case of any emergency, accident or natural calamity like flood, cyclone etc., a second ... about 25% of cases, the whole rake move towards a single destination.
A COMPARATIVE STUDY OF OPERATIONAL PERFORMANCE OF BANGLADESH RAILWAY WITH SELECTED REGIONAL COUNTRIES AND ITS PRESENT CONSTRAINTS, POTENTIALS & FUTURE PROSPECTS
H. M. IMRAN KAYS (Student ID- 201011051)
Under the Supervision of PROFESSOR DR. ALAMGIR MOJIBUL HOQUE Department of Civil Engineering Military Institute of Science and Technology
DEPARTMENT OF CIVIL ENGINEERING MILITARY INSTITUTE OF SCIENCE & TECHNOLOGY MIRPUR CANTONMENT, DHAKA DECEMBER, 2013
A COMPARATIVE STUDY OF OPERATIONAL PERFORMANCE OF BANGLADESH RAILWAY WITH SELECTED REGIONAL COUNTRIES AND ITS PRESENT CONSTRAINTS, POTENTIALS & FUTURE PROSPECTS
A THESIS SUBMITTED TO THE DEPARTMENT OF CIVIL ENGINEERING IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF BATCHELOR OF SCIENCE IN CIVIL AND STRUCTURAL ENGINEERING
BY H. M. IMRAN KAYS
DEPARTMENT OF CIVIL ENGINEERING MILITARY INSTITUTE OF SCIENCE & TECHNOLOGY MIRPUR CANTONMENT, DHAKA DECEMBER, 2013
Page | ii
ABSTRACT
Bangladesh Railway plays very important role in transport sector of Bangladesh. With growing demand of passenger and freight transports Bangladesh Railway can become a major option to established a balanced transport system and attract people from rapid growing road transport sector. At present, Bangladesh Railway shears only 12% of passenger and 7% of freight transport while roadway shears the majority of transport. In this regard increment of operational efficiency and service will have the prime responsibility of railway. A comparative study of operational performance of Bangladesh Railway with Indian and Pakistan Railway indicates the regional position in context of railway operations. It also helps to determine the current capacity of Bangladesh Railway and upto which level of capacity is needed to be reached to satisfactorily accommodate the future passenger demand. For this reason, different operations Bangladesh Railway are selected and compare them with Indian and Pakistan Railway for recent data as well as past trends. In order to achieve the desired operational performance the first milestone is the derivation of constraints and come up with appropriate strategy to mitigate. At present capacity Bangladesh Railway can carry 25% of container traffic, while it carries less than 10%. To enable full potential operation of Bangladesh Railway, the reform strategies are made which also help in achieving the strategic choice and decision of multimodal transportation system of passenger and freight. A losing concern like Bangladesh Railway has the hope of beneficial recovery, handle the future demand and increase its modal share through the time oriented decision of High Speed Rail (HSR). Since the infrastructure and maintenance costs are very high, HSR shall be economically viable in Bangladesh on the long run. Bangladesh Railway requires evaluating the plan of HSR to satisfy customer and meet the financial needs of railway.
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ACKNOWLEDGEMENT
First of all, the author express his greatest gratitude to the Almighty Allah for giving the opportunity of performing the study and for enabling him to complete the thesis successfully. The person to whom author would like to express his best regards, indebtedness and deepest sense of gratitude is the respected teacher and supervisor PROFESSOR DR. ALAMGIR MOJIBUL HOQUE, Department of Civil Engineering, MIST for his guidance, encouragement and invaluable suggestions in all stage of thesis work. His careful reading of the drafts, inspiration, and criticism at every stage have made the work possible. The author also grateful to Engg. S. M. Salimullah Bahar, Senior Planning Officer-4, Bangladesh Railway, for his support and encouragement helps to develop database as well as the research.
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DECLARATION I hereby certify that the research work embodied in this thesis has been performed by the author under the supervision of PROFESSOR DR. ALAMGIR MOJIBUL HOQUE, Department of Civil Engineering, and MIST. Neither this thesis nor any part of it has been submitted or is being currently submitted elsewhere for any other purpose.
H. M. Imran Kays Student ID: 201011051
I do hereby agree to the approach and content of the present exposition.
PROFESSOR DR. ALAMGIR MOJIBUL HOQUE DEPARTMENT OF CIVIL ENGINEERING MILITARY INSTITUTE OF SCIENCE & TECHNOLOGY MIRPUR CANTONMENT, DHAKA Page | v
ABBREVIATION BR
Bangladesh Railway
IR
Indian Railway
PR
Pakistan Railway
KPVPD
Kilometre per Vehicle per Day
BG
Broad Gauge
MG
Metre Gauge
SG
Standard Gauge
NG
Narrow Gauge
WKPWD
Wagon Kilometre per Wagon Day
NTKPWD
Net Tonne Kilometre per Wagon Day
IMTP
Integrated Multi-modal Transport Policy
RMP
Bangladesh Road Master Plan
STP
Strategic Transport Plan
PMB
Padma Multi-purpose Bridge
DTCB
Dhaka Transport Coordination Board
NRSC
National Road Safety Council
NSAPR II
National Strategy for Accelerated Poverty Reduction II
BTSS
Bangladesh Transport Sector Study
BITS
Bangladesh Integrated Transport Sector Study
ToR
Terms of Reference
NLTP
National Land Transport Policy
TSC
Transport Sector Coordination
GDP
Gross Domestic Product
FYP
Five Year Plan
PSO
Public Service Obligation
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GLOSSARY
Aggregate Demand
In macroeconomics, aggregate demand (AD) is the total demand for final goods and services in the economy at a given time and price level. It specifies the amounts of goods and services that will be purchased at all possible price levels. This is the demand for the gross domestic product of a country. It is often called effective demand, though at other times this term is distinguished.
Exchequer
The British governmental department charged with the collection and management of the national revenue.
TEUs
(The twenty-foot equivalent unit) is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long (6.1 m) intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks
CMS
Central management system (A content management system (CMS) is a computer program that allows publishing, editing and modifying content as well as maintenance from a central interface. Such systems of content management provide procedures to manage workflow in a collaborative environment. These procedures can be manual steps or an automated cascade. CMSs have been available since the late 1990s.)(CMS)
Route Mileage
Route mileage is the length of the route where track mileage is the length of all the track that makes up the route. Therefore, if it's 50 miles from station A to station B but there are two tracks, one for each direction, the route mileage is 50 miles and the track mileage is 100 miles.
Engine KM
The Engine kilometres run on trains including shunting en route- two locomotive travelling one kilometre on 1 train is 2 locomotive km’s.
Road density
km of road per 100 sq. km of land area Page | vii
Traffic Density
Traffic density is expressed as the sum of net tonne-km and passengerkm divided by line km. This measure is conventionally called traffic units (TU)/km
Colour Light Signal
The introduction of electric light bulbs made it possible to produce colour light signals which were bright enough to be seen during daylight. It is a long range signal with a range of over 3,500 feet (1,100 m) under bright sun conditions.
Semaphore Signals
These signals display their different indications to train drivers by changing the angle of inclination of a pivoted 'arm'.
Vertical Integration
In
microeconomics
and
management,
the
term
vertical
integration describes a style of growth and management control. Vertically integrated companies in a supply chain are united through a common owner Annual Factor
Traffic growth factor
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LIST OF FIGURES
Figure 2.1-
Organization Structure of Bangladesh Railway
Figure 2.2-
Modal Share by Different Modes of Transport: Passenger Traffic
Figure 2.3-
Modal Share by Different Modes of Transport: Freight Traffic
Figure 3.2-
Total Passengers Carried by BR
Figure 3.3-
Total Passenger-Km Carried by BR
Figure 3.4-
Total Freight tonne (000) Carried by BR
Figure 3.5-
Total Freight Tonne-km by BR
Figure 3.6-
Average KM a Tonne of Good Is Carried
Figure 3.7-
Container Service in BR
Figure 3.8-
Operating Revenue by BR
Figure 3.9-
Operating Ratio of BR
Figure 3.10-
Total Route KM, Track KM and Electrified Lines of IR
Figure 3.11-
Passenger Trend in India
Figure 3.12-
Passenger KM in India
Figure 3.13
Total Freight Tonnes Carried and Tonne KM of IR
Figure 3.14
Trend of Total Track KM and Route KM of PR
Figure 4.1-
Vehicle-Kilometres per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Passenger Carriages
Figure 4.2-
Vehicle-Kilometres per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Other Coaching Vehicle
Figure 4.3-
Wagon Kilometres per Wagon Day on Line
Figure 4.4
Average Wagon Load during Run
Figure 4.5-
Net Load per Train
Figure 4.6-
Net Ton Kilometres per Wagon Day
Figure 4.7-
Engine Kilometres per Day per Engine in Use
Figure 4.8-
Engine Kilometres per Day per Goods per Engine in Use
Figure 4.9-
Route kilometres
Figure 4.10-
Route Kilometres
Figure 4.11-
Track Kilometres Page | ix
Figure 4.12-
No. of Passenger (thousand)
Figure 4.13-
Passenger KM (million)
Figure 4.14-
Average No. of KM Travel by a Passenger
Figure 4.15-
Freight tonnes (millions)
Figure 4.16-
Freight tonne-KM (million)
Figure 5.1-
Revenues Structure of BR
Figure 5.2-
Revenue and Expenditure Structure of BR
Figure 5.3-
Train speed vs. length of route
Figure 5.4-
Per km Passenger and Freight Revenue
Figure 5.4-
Operation Expenses by Broader Head (%)
Figure 5.5-
Employee Productivity
Figure 5.6-
Loco productivity
Figure 5.7-
Age profile of BG and MG Coaches
Figure 5.8-
Coach Productivity
Figure 5.9-
Wagon productivity
Figure 7.1-
HSR Models According To Relationship With Conventional Services
Figure 7.2-
Time Slots In Railways And The Provision Of HSR Services
Figure 7.3-
Average cost per kilometre of New HSR Infrastructure
Figure7.4-
Comparison of Maintenance Costs of New Lines
Figure 7.7-
Evolution of high speed rail traffic in Europe (1994-2004)
Figure7.8-
Evolution of accumulated traffic: Asia vs. Europe
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LIST OF TABLE
Table 2.1 Table 2.2 Table 2.3 Figure 3.1 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 3.9 Table 3.10 Table 3.11 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Table 4.10 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Table 5.8 Table 6.1 Table 6.2 Table 7.1. Table 7.2.
Total Traffic and Modal Share Government Allocation of Funds for Transport Sector in Different Plan Periods Estimated Traffic on Five Corridors of Bangladesh Total Route and Track KM of BR No. of Passenger Carried by BR Total Freight Tonnes Carried By BR and Net Tonne-KM Container service in BR Total Route KM and Running Track KM Passenger Traffic on Different Zones in IR revenue earning freight train KM and Tonnes Passenger Revenue in Different Classes with Corresponding Number of Passengers and Passenger KM in 2010-11 Year-Wise Passenger Data Gauge wise Track KM of Pakistan Railway Gauge Wise Route KM Revenue Earning Trend in PR in Million Vehicle-Kilometres Per-Vehicle Day on Line for Passenger Carriages Vehicle-Kilometres Per-Vehicle Day on Line for Other Coaching Vehicle. Wagon kilometres per wagon day on line Average Wagon Load during the Run Net Load per Train Net Tonne Kilometres per Wagon Day Engine Kilometres per Day per Engine In Use Engine Kilometres per Day per Goods Engine In Use Overview on passenger and freight rail transportation Average No. of KM Travel by a Passengers Sectional speed with restrictions vs. Length (km) Train Accidents by Category Category of Bridges by Number Condition of Selected Major Bridges MG Locomotive Types and Age Profiles BG Locomotive Types and Age Profiles Age Profiles of Wagons Broader Age Profiles of Wagons Commercial Activities of BR Strategic approach to transport sector development HSR technology in Europe: types of train Land Occupation Comparison between Roadway and HSR
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TABLE OF CONTENT Page Abstract Acknowledgement Declaration List Of Abbreviation Glossary List Of Tables List Of Figures
iii iv v vi vii ix xi
Chapter 1 Introduction 1.1 1.2 1.3 1.4
Background Objectives Of The Study Scope Of The Study Methodology Of The Study 1.4.1 Type Of Study 1.4.2 Source Of Data
1 3 3 4 4 4
Chapter 2 Literature Review 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.9. 2.10. 2.11. 2.12.
Overview Of Transport Sector In Bangladesh Bangladesh Railway: At A Glance Indian Railway: In Short Pakistan Railway Transport Concentration And Economic Development In Bangladesh Modal Share Of Transportation System In Bangladesh Multimodalism: The Alternative Sustainable Transport System Performance Of Operations Key Constraints Budget Allocation In Bangladesh Railway Opportunity Of Bangladesh Railway In Corridor Transportation An Overview Of High Speed Rail Conclusion
5 6 8 8 10 11 13 14 14 16 17 18 20
Chapter 3 Issues Of Bangladesh, India & Pakistan Railway 3.1. 3.2.
Overview Of Bangladesh Railway Operational Performance Of Br 3.2.1. Route Km And Track Km 3.2.2. Passenger Traffic 3.2.3. Freight Traffic
21 22 22 22 24
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3.3.
3.4.
3.5.
3.2.4. Container Services 3.2.5. Operating Income & Operating Ratio 3.2.6. Social Cost Performance Of Indian Railway 3.3.1. Track Condition 3.3.2. Passenger Traffic 3.3.3. Freight Traffic 3.3.4. Revenue Performance Of Pakistan Railway 3.4.1. Passenger Traffic 3.4.2. Track Km 3.4.3. Route Kilometres Of Pakistan Railway 3.4.4. Revenue Conclusion
26 27 28 29 29 30 31 32 33 33 34 34 36 36
Chapter 4 Comparative Study Of Operational Performance Of Bangladesh, India And Pakistan Railway 4.1. 4.2. 4.3.
4.4. 4.5. 4.6. 4.7. 4.8. 4.9. 4.10. 4.11.
4.11.
Introduction Sectors Of Performance Study Vehicle-Kilometres Per-Vehicle Day On Line (In Terms Of 4Wheelers, For Passenger Carriages) Vehicle-Kilometres Per-Vehicle Day On Line (In Terms Of 4Wheelers, For Other Coaching Vehicle) Wagon Kilometres Per Wagon Day On Line Average Wagon Load During Run Net Load Per Train Net Tonne Kilometres Per Wagon Day Engine Kilometres Per Day Per Engine In Use Engine Kilometres Per Day Per Goods Engine In Use Passenger & Freight Scenario Of Bangladesh Railway (An Overview Of World Countries) 4.11.1. Route Kilometres 4.11.2. Track Kilometres 4.11.3. Passenger Transportation 4.11.4. Passenger Kilometres 4.11.5. Average No. Of Km Travel By A Passengers 4.11.6. Freight Transportation 4.11.7. Rail Freight Conclusion
37 38 39
41 42 43 45 46 47 49 50 51 52 52 53 54 55 55 56
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Chapter-5 Analysis Of Constraints Of Bangladesh Railway 5. 1. 5. 2. 5. 3. 5. 4. 5. 5. 5. 6. 5. 7. 5. 8. 5. 9. 5. 10. 5. 11. 5. 12. 5. 13. 5. 14. 5. 15. 5. 16.
5.17.
5.18. 5.19. 5.20.
Introduction Vicious Circle Of Railway Underfunding Severe Financial Deficits Financial Position Traditional Pricing Systems Where Charges Are Hardly Related To Cost Recent Increment Of Costs Have Been Excessively High Low Operating Efficiency Speed Limitations Signals And Telecommunications Weight Restrictions Rail Weight And Engine Horsepower Passenger And Freight Tariffs Lack Of Modernization & Development Safety Low Labour Productivity Deficiencies And Maintenance In The Physical Infrastructure 5.16.1. Track Conditions 5.16.2. Bridge Condition Poor Asset Maintenance 5.17.1. Metre Gauge Locomotives 5.17.2. Broad Gauge Locomotives 5.17.3. Rolling Stock (Coaches) 5.17.4. Metre Gauge And Broad Gauge Wagons 5.17.5. Workshops And Loco Shed The Problems Arising From The State Ownership Of Railways Geographical Constraints Conclusion
58 58 59 59 59 60 61 62 63 65 66 66 68 69 70 71 71 72 74 74 75 76 77 79 79 81 81
Chapter 6 Reconstruction, Potentials & Opportunities For Bangladesh Railway 6.1. 6.2. 6.3.
Introduction Need For Reform Methods Of Railway Restructuring 6.3.1. Restructuring – The Main Dimensions 6.3.2. Economic Characteristics Of The Railway Multiple-Products 6.3.2.1. Cost Structure 6.3.2.2. 6.3.3. Natural Monopoly Of Rail Infrastructure 6.3.4. Indivisibilities 6.3.5. Public Service Obligations 6.3.6. Externalities In Competing Modes
83 84 85 86 86 86 87 87 88 88 88 Page | xiv
6.4.
6.5.
6.6.
6.3.7. Vertical Structuring 6.3.8. Vertical Integration 6.3.9. Competitive Access 6.3.10. Vertical Separation Or ‘Unbundling’ 6.3.11. Organizational Separation 6.3.12. Introduction Of Competition 6.3.13. Private Sector Participation 6.3.14. Government Departments And State Enterprises 6.3.15. Unbundling And Decentralization 6.3.16. Service Contracts 6.3.17. Management Contracts 6.3.18. Joint Ventures Guidelines And Recommendations For Governments Undertaking Railway Restructuring 6.3.1. Strategic Idea Of Bangladesh Railway 6.3.2. Strategic Analysis 6.3.2.1. Railway Environment 6.3.2.2. Resources 6.3.2.3. Values And Objectives 6.3.3. Strategic Decisions 6.3.3.1. Geographical Distinctions 6.3.3.2. Line Of Business Distinctions 6.3.3.3. Functional Distinctions 6.3.3.4. High Density Versus Low Density Traffic 6.3.3.5. Common Network Use Versus Exclusive Network Use 6.3.4. Strategic Choice 6.3.4.1 Generation Of Railway Restructuring Options 6.3.4.2 Evaluation Of Railway Restructuring Options 6.3.4.3 Selection Of Railway Restructuring Strategy 6.3.5. Strategic Implementation 6.3.5.1. Railway Recovery Program 6.3.5.2. Ongoing Projects And Their Benefits Bangladesh Railway’s Possibility To Be Transport Centre 6.4.1. Connectivity To India 6.4.2. Connectivity With Bhutan And Nepal 6.4.3. Trans-Asian Railway Route Conclusion
88 89 89 89 90 91 91 92 93 93 94 95 95 96 97 98 99 100 100 100 101 101 101 101 102 102 102 103 103 104 106 107 107 109 109 110
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Chapter-7 High Speed Rail 7.1. 7.2. 7.3. 7.4.
7.5. 7.6.
Introduction Infrastructure Of High Speed Railway Services The Costs Of Building High Speed Rail (HSR) Infrastructure The Costs Of Operating HSR Services 7.3.1. Infrastructure Operating Costs 7.3.2. Services Operating Costs 7.3.3. External Costs Of HSR 7.3.3.1. Environmental Pollution 7.3.3.2. Noise 7.3.3.3. Distance 7.3.3.4. Safety Cost Viability Of HSR In Case Of Bangladesh: Demand, Evolution & Perspectives Conclusion
112 113 118 120 120 122 123 123 123 124 124 125 127
Chapter 8 Conclusion & Recommendations 8.1. 8.2. 8.3.
Conclusion Recommendations Limitations Lo The Study List Of References Annexure Appendix
130 131 132 133 135 149
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CHAPTER 1 INTRODUCTION 1.1
Background
Transportation sector in general and Bangladesh Railway (BR) in particular, has always played a vital role in the economic growth and development of Bangladesh. However, Bangladesh Railway has been facing formidable challenges from alternative modes of transport. Now,
Bangladesh Railway is facing two major threats to its long term survival: the progressive reduction of the government funding which has been necessary to sustain railway infrastructure and services, and the relentless increase in competition from other transport modes, especially from road transport. Bangladesh Railway is losing its share (Table 2.1, Annexure A.1) to road sector. This loss of share can largely be attributed to a well-planned and well developed road network that began expanding since the eighties. The road transportation is mostly privately managed and is more efficiently operated relative to railway. The latter has been a publicly funded and managed organization. Railway is known to have competitive advantage in bulk goods transport and long haul due to cost effectiveness and safety issues. However, railway has failed to meet the standards due to institutional shortcomings and physical bottlenecks. Today railway is in poor health with obvious symptoms of further decline in its performance. An in-depth performance study of operations and investigation to identify some weaknesses can help formulate appropriate policy measures for improvement of the sector. Besides providing transportation services, railway is also a major employer of civilian labor force. The current level of employment in this sector 34168 employees. BR should be capable of providing optimal services and help economic growth by ensuring a smooth flow of goods, e.g., food, raw materials, industrial and agricultural inputs, exports, etc. The problems seem to request a higher degree of attention, as the sector continues to claim a larger share on the limited resources. Public support of road transport at the expense of rail transport development has
usually been justified on the basis of the greater flexibility of the road transport mode. Competition from this source cannot therefore be expected to reduce in intensity for the foreseeable future, and will only be effectively counteracted if rail can offer a standard of service which at the same time satisfies the needs of customers and is superior to that on offer 1|Page
from its competitors. Clearly this provides rail with a substantial challenge. It will require a major change in the outlook of railway management. Hereafter, the activities of railway management will have to be directed at: identifying, understanding and responding to the needs of their existing and potential customers; identifying and understanding the cost relationship and profit potential associated with individual traffics or market segments. A study of reform and competition intrusion will ensure that railways will satisfy new commercial goals. The railway receives a sizeable subsidy from the public exchequer, despite the well-documented evidence that subsidy promotes inefficiency. The responsibility must be on the railway to play a socially desirable role. From policy considerations, it is important that the sector runs efficiently, remains economically viable, and makes significant contribution to growth of the economy. From that perspective, research on the performance of this sector, is long overdue. The contribution of the railway sector to GDP can be measured by the share of railway output to GDP. A declining output share in GDP (Annexure A.2) might be a signal that the sector is not performing well. Such evidence provides important insight into the long term trend and variability of the sector’s economic contribution. The output of a service sector like railway is a derived demand. Instability in railway output can hamper the smooth flow of passenger, goods and services. Too much fluctuations or decline in the share of railway output can adversely affect the macro aggregates, which is the total demand for final goods and services in the economy at
a given time and price level. Hence, both the level and the variability of the output of BR have important implications for the overall economy of Bangladesh.
The study of preset prospects and future demand assist the railway organization to set up the systems and procedures necessary for Bangladesh Railway to be able to function as commercially energetic organization. However, the mere setting up of systems and procedures will not of itself ensure success. Success will only follow if the right attitudes are developed and promoted throughout the organization, starting at the very top with the Chief Executive and extending down to the lowest operative staff levels. All units of the organization must become and remain customer aware, and their activities must be harmonized and coordinated with the satisfaction of customers as the fundamental objective. With growing passenger need and considering energy, time efficient transportation mood, High Speed Railway (HSR) is justified all over the world. Hence the infrastructure and maintenance costs are comparatively higher in case of HSR compared to conventional 2|Page
railway. An analysis of cost regarding infrastructure development, operations, maintenance and viability of application in Bangladesh also includes in the study. 1.2
Objectives of The Study To study the performance of operations of Bangladesh railway and compare with India and Pakistan Railway.
To identify constraints in current railway system and matters of Bangladesh Railway efficiencies especially related to operational problems, reform processes and future prospects.
To analyse the issues related to reorientation of Bangladesh Railway through physical & structural as well as institutional reform process which is necessary to make BR a commercial-cum-public organization.
To evaluate transportation strategy and integrated transport policies.
To analyse of current development & re-habitation projects in different corridors to increase level of services and quality of services.
To analyse the cost and infrastructure of high speed rail and applicability in Bangladesh.
1.3
Scope of the Study
The scope of the study is limited to the issues related operation performance of Bangladesh Railway as well as comparison with India and Pakistan Railway. The study will also focus on the definitions of problems in Bangladesh Railway along with necessity and procedure of the reorientation of Bangladesh Railway with an emphasis on railway performance reorientation of organization structure, its healthy growth and development. In this context, operations, passengers and freight trends are used to project demand and scope of improvement in railway industry. The study also includes the current situation of High Speed Rail worldwide and its viability in Bangladesh.
3|Page
1.4 Methodology of the Study 1.4.1 Type of Study The study is mainly a quantitative research, which involves analyzing and comparing of some important information of railway transportation of Bangladesh Railway in context of Indian Railway and Pakistan Railway industry and finally suggesting an integrated reorientation of Bangladesh Railway. 1.4.2 Source of Data The information used in this report is based on secondary source, which is mainly collected from Bangladesh Railway information book, Indian Railway information book, and Pakistan Railway information book. In addition information obtained from the Planning Commission, Ministry of Communication, Bangladesh Bureau of Statistics, ESCAP, World Bank and Internet have been used.
4|Page
CHAPTER 2 LITERATURE REVIEW
2.1.
Overview of Transport Sector in Bangladesh
An adequate and efficient transport system is a pre-requisite for both initiating and sustaining economic development. Investment in improving transport efficiency is the key to development, expansion and integration of sub-national, national and international markets. It also helps the generation of economies of scale, increased competition, reduced cost, systematic urbanization, export-led faster growth and a larger share of international trade. The transport system of Bangladesh consists of roads, railways, inland waterways, two sea ports, maritime shipping and civil aviation catering for both domestic and international traffic. The relative roles of transport modes evolved with road transport expanding at the overhead of railways and inland water transport. In terms of physical infrastructure, about 2800 kilometre of rail-route inherited in 1947 came down to 2746 km by 1998 and presently it has raised to a length of 2877.96 km (Bangladesh Railway Information book, 2012). Navigable waterways declined substantially and at present 5968 km of waterways is navigable. Road sector, on the other hand, expanded disproportionately from 600 km of paved road in 1947 to nearly 25000 km by the year 2002. Roads have been built at places ignoring existence of parallel railway facilities. According to Bangladesh Railway (BR) Master Plan, 2006 by Govt. of Bangladesh, in order to develop balanced transport infrastructure in Bangladesh, the Government approved the National Land Transport Policy (NLTP) in 2004 and is actively formulating the Integrated Multi-modal Transport Policy (IMTP) as predicted in the NLTP, as well as a revised Poverty Reduction Strategy. The IMTP places emphasis on the preparation of long-term plan for each of the transport sub-sectors, and identifies railways as a priority. The NLTP provides different strategic options for railways such as upgrading and expansion of railway infrastructure, achieving higher quality services, operations and establishing international rail links. However, in order to survive as a viable mode, it must significantly improve its efficiency, service quality and establish better connectivity. 5|Page
According to ESCAP report on railway restructuring (John Holt, 2003), in recent years the need to create better managed, more commercially-responsive and market-led railways has been widely recognized. In consequence, many countries have introduced reforms designed to improve the operational and financial performance of national railways. Such economic reforms, often described as ‘railway restructuring’, have involved the creation of new organizations; revised accounting methods; liberalization through the introduction of competition; privatization, de-monopolization and regulatory reform. In November 2004, the Ministry of Planning approved the Terms of Reference (ToR) of Transport Sector Coordination (TSC) Wing. This ToR also emphasised need for the preparation of future Railway Master Plan. To this end, TSC Wing planned for preparation of a 20-year Railway Master Plan and finalised ToR for the plan at the end of 2006. Preparation of the plan commenced immediately with the followings:
Increase railway efficiency with interventions to make best use of assets;
Extend railway (infrastructure) to meet policy objectives;
Integrate railway network in a multi-modal approach;
Allow railway to play a greater role in the overall transport sector with a view to contributing to economic and social development;
Prepare railway for playing role in regional and international context.
2.2.
Bangladesh Railway: At A Glance
Since journey on November 15, 1862, Bangladesh railway has passed a glorious past. The historical events of Bangladesh Railway are briefly presented in appendix (Appendix A-1). As railway is a very important mode of inland transport, linking the entire length and breadth of the country, its healthy growth naturally contributes to the economic development of the country. Due to truncation from the main system of the then British India rail network, Bangladesh railway is handicapped to serve the country effectively and efficiently without proper reorientation and development. Since the birth of Bangladesh in 1971, instead of constructing new railway lines, some of the branch line railway sections were declared redundant and subsequently closed and no proper attention to maintain the existing assets was being given.
6|Page
Bangladesh Railway (BR), covering a length of 2854.96 route kilometres with 3975KM of track KM, managed by about 26458 regular staffs. BR is a Government-owned and Government-managed largest transportation agency of the country. BR covers total 444 stations consisting both East and West zone. In 2012 BR carried total no of 66.14 million passenger with passenger KM of 8787 million KM. Total freight tonne carried by BR was 2.19 million tonnes with tonne-km of 582 mil KM in 2012. Total operating revenue was 6029.3 million taka in 2012, thought he total operating expenses was 15671 million taka. It has total land area of 24094 Acres in EZ and 37505 acres in west Zone. Bangladesh Railway covers 44 civil districts of the country. The rail-route is composed of Broad gauge, Meter gauge & Dual gauge (DG in some sections) tracks. East Zone has 1,302 route kilometres of MG track only and West Zone has 533 route kilometres of MG, 660 route kilometres of BG and 365 route kilometres of DG track. The total length of running track including track on double line, in the yards and sidings is 4,442.95 kilometres. The railway information mirror 2012 is shown in (Appendix A-2).
Figure 2.1- Organization Structure of Bangladesh Railway (BR Information Book, 2012) Presently, Railway is under the Ministry of railway directly with one Director General (DG), working as Chief Executive Officer drawn from the Railway professionals. There are six ADG 7|Page
working for passenger, freight, stock, infrastructure, finance and services. There are three GM working as project, east zone and west zone. There is an MD working for cooperation entity. 2.3.
Indian Railway: In Short
Indian Railways is an Indian state-owned enterprise, owned and operated by the Government of India through the Ministry of Railways. It is one of the world's largest railway networks comprising 115,000 km (71,000 mi) of track over a route of 65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25 million passengers daily (over 9 billion on an annual basis). In 2011, IR carried over 8,900 million passengers annually or more than 24 million passengers daily (roughly half of which were suburban passengers) and 2.8 million tons of freight daily. In 2011–2012 Indian Railways had revenues of
1119848.9
million (US$17 billion) which consists of US$11 billion from freight and (US$4.4 billion) from passengers tickets. Railways were first introduced to India in 1853 from Bombay to Thane. In 1951 the systems were nationalized as one unit, the Indian Railways, becoming one of the largest networks in the world. IR operates both long distance and suburban rail systems on a multi gauge network of broad, metered and narrow gauges. It also owns locomotive and coach production facilities at several places in India and are assigned codes identifying their gauge, kind of power and type of operation. Its operations cover twenty eight states and seven union territories and also provides limited international services to Nepal, Bangladesh and Pakistan. Indian Railways is the world's ninth largest commercial or utility employer, by number of employees, with over 1.4 million employees. As for rolling stock, IR holds over 239,281 Freight Wagons, 59,713 Passenger Coaches and 9,549Locomotives (43 steam, 5,197 diesel and 4,309 electric locomotives). The trains have a 5 digit numbering system as the Indian Railways runs about 10,000 trains daily. As of 31 March 2013, 23,541 km (14,628 mi) (36%) of the total 65,000 km (40,000 mi) km route length was electrified. Since 1960, almost all electrified sections on IR use 25,000 Volt AC traction through overhead catenary delivery. (Source: en.wikipedia.org/wiki/Indian_Railway) 2.4.
Pakistan Railway
Pakistan Railways is a national state-owned rail transport service of Pakistan, head-quartered in Lahore. It is administered by the federal government under the Ministry of Railways. Pakistan Railway provides an important mode of transportation throughout Pakistan. It is 8|Page
commonly referred to as the "life line of the country", by aiding in large-scale movement of people and freight throughout Pakistan. Pakistan, despite its moderate size, has a largely dysfunctional railway system. Negligence by the last government during 2008-2013 has led the Pakistan Railways down rapidly. As of mid2011, it was decided to stop all goods train haulage due to severe shortage of locomotives and fuel. The financially bankrupt organization, despite bailouts, has not been able to emerge from its troubles leading to cancellation of as many as 115 railway services. The decision has left ordinary Pakistanis at the mercy of bus operators for long distance travel. As of 2011, the PR network cancelled many trains and AC services in many trains were stopped. On 29 December 2011, PR restored freight train service from Karachi to upcountry. Since 2007, it operates trains completely by Diesel locomotives when electric locos were grounded but on 31 October 2013 Lahore High court directed railways to make policy for restoration of Electric locos too. Pakistan Railways had a mixture of gauges, including broad gauge (1,676 mm/5 ft 6 in), meter gauge (1,000 mm/3 ft 3 3⁄8 in), and narrow gauge (762 mm/2 ft 6 in). A few meter gauge and narrow gauge railway lines have been converted into broad gauge, and the remaining lines have been dismantled or abandoned. Now only broad gauge railway lines are operational in Pakistan Railways network. Pakistan Railways broad gauge track axle load limit is 22.86 tonnes except Rohri-Quetta & Quetta-Chaman railway lines on which axle load limit is 17.78 tonnes and Spezand-Zahedan railway line on which axle load limit is 17.27 tonnes. The maximum Speed of Pakistan Railways is 120 km/h. Some sections of Karachi-Lahore main railway line allow 120 km/h speed. Passenger traffic comprises 50% of the total revenue annually. During 1999-2000, this amounted to Rs. 4.8 billion. Pakistan Railways carries 65 million passengers annually and daily operates 228 mail, express and passenger trains. Daily, PR carries an average of 178,000 people. The Freight Business Unit, with 12,000 personnel, operates over 200 freight stations on the railway network. The Unit serves the Ports of Karachi and Bin Qasim as well as all four provinces of the country and generates revenue from the movement of agricultural, industrial and imported products such as petroleum oil & lubricants (POL), wheat, coal, fertilizer, rock phosphate, cement and sugar. The Freight Business Unit offers services to meet customer requirements and reduce costs through efficiency, innovation and modernization. All possible efforts are made to increase revenues and pass on the benefits to customers. The Freight Rates structure is based on market trends, particularly of road transport, which is the Railways' main competitor. The freight rates are no 9|Page
longer rigid but flexible, depending on the lead, peak-off peak season, and quantum offered. In 2008, Pakistan Railways announced a plan of the construction of a $1 billion high-speed railway line between Punjab and Sindh. Pakistan railway has international connection with Iran, India, Afghanistan, China and Turkey. (Source: en.wikipedia.org/wiki/Pakistan_Railway)
2.5.
Transport Concentration and Economic Development in Bangladesh
Transport development strategy in support of economic development includes: (a) appropriate transport network strategy; and (b) effective regulatory and policy framework to entrance efficiency of transport. In recent years, the transport demand for both the freight and passenger traffic has grown faster than the economy in general. Between 1992/93 and 2006/07, the GDP growth rate was 5.5 per cent compared with nearly 8.2 percent growth in freight transport demand and 8.4 per cent growth in passenger transport demand(Md. Saidur Rahman, 2005). Transport concentrations in Bangladesh are expected to increase considerably in the coming years as the country continues to move from subsistence to a more market-based economy and as the major transport barriers have already been removed by the opening of JMB. Bangladesh has considerably lower transport intensity which is measured as the ratio of total passenger-km or tonne-km to total GDP, this indicator shows that the actual passenger or freight activity required to produce a unit of goods and services in the nation's GDP has declined. For Bangladesh transport intensity of freight and passenger movements about onefifth to one-third of their levels for freight and one-half to one sixth for passenger transport demand. According to World Bank database, 2013 road density 15 km per 100 km2 in Bangladesh where 172 in the UK largest in the world, but road density (km of road per 100 sq. km of land area) in km per 1000 persons in the country is still one of the lowest in the world where 0.88 against 27 in the USA. Transport intensity of the Bangladesh economy is still considerably lower than that of neighbouring countries in South-Asia. Passenger mobility in Bangladesh is about 350 km per capita, as compared with 770 for India and over 1000 for Malaysia (World Bank Database, 2006). A country of about 1,45,000 sq. km area, having a population of about 156 million at present, would have to provide for the transport needs of 200 million people by 2020(countrymeter.info). If transport intensity based on road system alone is to reach somewhere near to any developed country, the entire population might have 10 | P a g e
to migrate elsewhere to a make room for road infrastructure, an unsustainable situation from land use point of view alone. In this situation, railway can help to mitigate the need of transportation demand. 2.6.
Modal Share of Transportation System in Bangladesh
The relative roles of transport modes are evolving with road transport expanding at the expense of railways and inland water transport because of its inherent technical and cost advantages. According to Bangladesh Transport Sector Study (1994), the volume of road transport increased by 88 per cent from 1985 through 2010, whereas the volume of transport by water as well as rail declined in almost equal proportion. The following Table 2-1 presents estimates of overall transport output and the relative shares of the various transport modes. Modal share on 2009/10 is considered here based on the trends of current nature of growth for different transport demand. The data illustrates the rapidly expanding role of the road sector. Table 2.1 Total Traffic and Modal Share (Bangladesh Transport Sector Study, 1994) Passenger Total
Year
PKM (Billion)
Freight
Modal Share Road
Rail
Total IWT
TKM (Billion)
Modal Share Road
Rail
IWT
1974/75
17
54
30
16
2.6
35
37
28
1984/85
35
64
20
16
4.8
48
17
35
1989/90
57
68
17
15
6.3
53
17
30
1994/95
95
69
11
20
14.5
74
6
20
1996/97
105
73
13
14
16.2
63
7
30
2004/05
121
69
12
19
20.3
74
7
19
2009/10
155
69
12
19
28.4
74
7
19
Transport output for passenger flows in Bangladesh is increasing rapidly. The road sector has increased its share to about 69 per cent of total passenger travel demand of 155 billion passenger-km in 2009/10. On the other hand, the rail sector continues to loss its share of passenger travel since more intercity passenger travel is now conducted through the road transport system, which offers faster, more convenient and cheaper services. Modal shares of three surface transports- road, inland water way and railway are graphically presented in figures 2.1 & 2.2. 11 | P a g e
0
10
20
30
40
50
60
70
80
90
100
1974/75 1984/85 1989/90 1994/95 1996/97 2004/05 2009/10 Road
Rail
IWT
Figurer 2.2- Modal Share by Different Modes of Transport: Passenger Traffic 0
10
20
30
40
50
60
70
80
90
100
1974/75 1984/85 1989/90 1994/95 1996/97 2004/05 2009/10 Road
Rail
IWT
Figure 2.3- Modal Share by Different Modes of Transport: Freight Traffic Transport demand in Bangladesh is expected to increase considerably in the coming years, largely because of the increasing demand for freight transport and the expected increase in personal mobility. These are the result of higher Gross Domestic Product (GDP) growth, at 5.5 per cent per year on an average, and increasing urbanization in the greater Dhaka area. The GDP share also expected to increase in transportation sector. The opening of the Jamuna Bridge in June 1998 removed one major national transport barrier, the East-West connection in Bangladesh. This, together with ADB-financed road and rail link projects and prospected upcoming of Padma Multipurpose Bridge including railway link, is expected to further increase 12 | P a g e
freight and passenger movement. These major transport development projects are crucial for physical and economic integration of Bangladesh, linking the western and southern parts of the country with the commercial centre of Dhaka and the country's primary port of Chittagong, both in the eastern half of the country. They are also important for improving access for the many poor people living in the agricultural areas in the northwest. Thus, the future expansion program of each of the surface transport modes in providing transport services depends crucially on government policy and investment decisions keeping in view the past transport development trend and the recently changed scenario in the transport sector. 2.7.
Multi-Modalism: The Alternative Sustainable Transport System
There is no doubt that the transport sector issues are to be addressed in a complete manner with an integrated policy approach rather than individual sub-sectorial approach that has been adopted so far. ‘Multimodalism practices’ address all modes of transportation collectively including the linkages, interactions, and movements among modes of transportation. Individual modes work together or within their own niches fulfilling the economic and environmental sustainability criteria. Different modes fit into the transport chain by virtue of their quality and competitiveness of service. For transporting freight and passengers through a multimodal chain, all the component parts are to be seamlessly linked and efficiently coordinated to offer the shippers and travellers a full range of options from which to select preferred routings and methods of transport. Implementation of multimodal practices would require an integrated policy approach to guide transport investment decisions on the basis of appropriate assessments of impacts of all modes of transport to ensure that investment meets the policy objective of sustainable development. The inherent advantages of the individual transport modes would be exploited to develop interactions between the modes in the interest of the economy and the environment. The policy should aim at some broad objectives. Rail transport is the strategic sector, on which the success of the efforts to shift the present modal balance will depend, particularly in the case of goods. The economic case for railway mode has been re-established globally in consideration of the following aspects. Bangladesh should be no exception in this scenario.
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2.8.
Performance of Operations
In order to achieve Multimodalism in practice, improvement of operational performance of Bangladesh Railway should be considered primarily. In analysing the operational performance the following operations are selected. By comparing the following data with Indian Railway and Pakistan Railway the scenario of Bangladesh Railway performance can be created in South-Asia. This also provides the scopes and indicates which sector needs re-habitation for future development as well as increment of passenger and freight services. The operations selected are:
Vehicle-kilometres per-vehicle day on line (in terms of 4-wheelers) for Passenger carriages and other coaching vehicle- indicates vehicle and coach productivity.
Wagon kilometres per wagon day on line- indicate wagon productivity.
Average wagon load during the run- significant in freight operation.
Net load per train- indicator of route capacity.
Net tonne kilometres per wagon day- capacity of wagon are determined through this measure
Engine kilometres per day per engine in use- indicate efficiency of locomotive.
Engine kilometres per day per goods engine in use- indicator of efficiency of freight operation.
2.9.
Key Constraints
The main obstacles in achieving the optimum performance of operations in Bangladesh Railway (BR) are the constraints identify in this section while globally railway is becoming popular day by day. Rail transport can contribute significantly poverty alleviation, pollution control and safety. It is clear that BR needs substantial investment to overcome some of the constraints imposed by geography & the nature of its network and to renew & upgrade its infrastructure, efficient operation and assets management. To meet the present and future demand Bangladesh railway needs rolling stock urgently as replacement and for additional growth. The signalling & interlocking system in many places has become old aged & obsolete and need modernization/upgradation. Bangladesh railway also needs to undertake human resource programs to improve the efficiency and capabilities of railway personnel to make Bangladesh Railway more efficient, effective and commercial oriented organization. 14 | P a g e
The development of surface transport system in Bangladesh is constrained by three distinct sets of factors (Md. Saidur Rahman, 2006). These are physical includes difficult terrain, periodic flooding, poor soil condition, siltation and erosion of rivers, inherited management weaknesses etc., low investments, maintenance and inadequate institutional framework and lack of coordination and autonomy of transport management. The constraints of BR is not differ much from these. According to Inputs of Bangladesh Railway for Sixth Five year Plan (2011-15), the railway network of Bangladesh which was inherited after liberation can’t supply the demand for transportation of passenger and goods. Significant extension of the network did not occur except providing railway link over JMB to connect East and West. But there are a good numbers of load restraints for which smooth running of goods trains, cranes and locomotives is not possible through trans-border. Moreover, two different types of railway gauges cause operational hazards. Bangladesh Railway is also suffering from capacity limitations. The biggest capacity constraints are on the single line sections in Dhaka-Chittagong corridor. Due to lack of adequate investment, the railway track is in poor condition in a number of areas in the country, including the vital Dhaka-Chittagong corridors which result in increase of train running time and number of accidents. Bangladesh railway is also suffering from scarcity of rolling stock i.e. locomotives, passenger coaches and wagons. The old stocks could not be replaced for which the standard of service is deteriorated. Due to shortage of locomotives, passenger coaches and wagons the service of transport of passenger, goods (fuel, rice, containers) can’t be attained to a desired level though there is adequate demand for it. To meet the present and future demand Bangladesh Railway needs rolling stock urgently as replacement and for additional growth. 70% signalling system has become old aged & obsolete resulting and need modernization/upgradation. All these result in serious deterioration of the performance of Bangladesh railway. In the previous reform program the work force was reduced from 58000 to 26458 through ‘Golden Handshake’ to reduce the cost incurred for employees. As a result Bangladesh Railway has now only 26458 nos. working staff against sanctioned strength of 40,264 nos. and facing scarcity of routine maintenance staff (Bangladesh Railway Information Book, 2012). Instead of reducing the number of employees efforts should be taken to improve their workability. Moreover, there is no clear separation between the railway’s social and commercial roles. The tariffs were fixed last in 1992. Though government introduced Public Service Obligation (PSO) 15 | P a g e
from the year 1992-93, actually the operating cost deficiency is much more. All in turn poses negative impact in the performance of Bangladesh Railway. 2.10. Budget Allocation in Bangladesh Railway Allocation and proper supply of budgetary allocation is a serious barrier for BR. The public sector allocation for the transport sector during the past plans in base year prices of each plan period are shown in Table 2-2. Table 2.2 Government Allocation of Funds for Transport Sector in Different Plan Periods (Inputs of Bangladesh Railway five year plan, 2012) Allocation in Million Taka Plan Period
Transport
Road
Railway
IWT
Airways
First Five-Year Plan (1973-78)
1,496.1
1261.30
1,862.20
656.50
5276.10
First Two-Year Plan (1978-80)
1,687.9
1230.80
1,098.60
482.70
4500.00
Second Five-Year Plan (1980-85)
4,090.2
4133.90
3,168.70
1,471.80
12864.60
Third Five Year Plan (1985-90)
11,853
8360
5,710.00
2,100.00
30023.00
Fourth Five-Year Plan (1990-95)
34,65
8350
7,930
2,800
63730
Second Two-Year Plan (1995-97)
18,467
3986.7
1,319
1,027
45479
Fifth Five-Year Plan (1997-2002)
-
24000
-
-
118000
75573.1
-
-
-
435098.1
-
-
-
Three-Year Rolling Investment -
Sector
program (2004-2006) Sixth Five Year Plan (2011-2015)
-
In the First Five Year Plan (1973-78), railways got 20.91%, roads 28.30%, IWT 35.30%. In the Fourth Five Year Plan (1990-95), railway got only 13.10%, whereas roads’ share increased to 54.07%. In the Second Two Year Plan (1995-97), railways’ share decreased to only 8.77%. But in recent years, the allocation has been increased from previous allocation in railway sector.
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2.11. Opportunity of Bangladesh Railway in Corridor Transportation BR has the potential of connectivity to various corridor which makes transportation of goods and freight easier. The corridor analysis is based on the transport network model developed for Bangladesh. The analysis is intended for providing a macro perspective of the country’s transport network and guidance for overall network development strategy on the basis of importance of respective corridors. Transport flows of Bangladesh take place through five corridors namely Dhaka-Chittagong, Dhaka-Northwest, Dhaka-Khulna, Dhaka-Sylhet and Khulna-Northwest corridors. The volume of traffic generated on these corridors has been presented in Table 2-3. Table 2.3 Estimated Traffic on Five Corridors of Bangladesh (BTSS, 1994 and BITS, 1997) Corridors
Passenger in Million
Freight in Million Tons
Road
Rail
IWT
Total
Road
Rail
IWT
Total
Dhaka- Chittagong
14.9
7.9
3.7
26.5
6.6
1.2
2.8
10.6
Dhaka- Northwest
5.0
5.2
1.9
12.1
3.9
0.7
2.6
7.2
Dhaka- Khulna
13.0
-
12.5
25.7
3.8
-
2.3
6.1
Dhaka- Sylhet
4.8
5.4
4.0
14.2
2.6
0.2
2.0
4.8
Khulna- Northwest
4.0
5.5
-
9.5
2.1
0.2
-
2.3
For transport network development strategy, an optimal mix of "market integration approach" and "poles of development approach" need to be adopted. Operational significance of this mixed strategy is that development efforts will be concentrated on these five main corridors with special emphasis on Dhaka-Chittagong, Dhaka-Northwest and Khulna-Northwest arterial corridors. To achieve an average GDP growth rate of 5.5 per cent per annum the transport sector growth rate is projected to increase by at least 8.3 per cent per annum on an average. Keeping in view the increased volume of domestic traffic as well as the accommodation of future traffic from the Asian Highway and Trans-Asian Railway, the main objective of the Transport Plan should be to develop a balanced and integrated transport network through adoption of strategies/programs as described below
The `Arterial Corridors' will be designated, as 'Strategic Corridors' and required investment will be made for their development and to raise them to international standards so that these can carry the regional and inter-regional traffic. 17 | P a g e
The two Sea Ports will be further developed and linked to Dhaka by improved railways networks, which connects all the four major regions of the country.
Railway linkages between the east and west zones of the country should be well integrated.
Improvement in resource mobilization will be made through introduction of user charges and fees by the agencies.
Provision of required incentive packages for the private sector for greater participation, not only in transport services, but also for infrastructure building will be made.
Identification and implementation of preventive, emergency and post-disaster mitigation measures will be made. To minimize accident, safety administration will be adequately strengthened.
Broadening the framework of transport development strategy by incorporating the vital urban transport dimension starting with improvement in transport services of greater Dhaka city will be undertaken.
Assurance of deficit-free operation of Bangladesh Railway as envisaged in Railway Recovery Program will be fulfilled.
Introduction of necessary institutional reforms to address the operational constraints of the port transit system with special reference to containers and privatization measures for port transit system will be made.
Adequate care will be taken while developing transport network and service so that these do not cause environmental pollution and affect ecological balance.
2.12. An Overview of High Speed Rail High-speed rail is a type of rail transport that operates significantly faster than traditional rail traffic, using an integrated system of specialized rolling stock and dedicated tracks. The first such system began operations in Japan in 1964 and was widely known as the bullet train. Highspeed trains normally operate on standard gauge tracks of continuously welded rail on grade separated right-of-way that incorporates a large turning radius in its design. Many
countries
have
developed
high-speed
rail
to
connect
major
cities,
including China, France, Germany, Italy, Taiwan, Turkey, South Korea and Spain. As of 2011 the maximum commercial speed on most high-speed rail lines was about 300 km/h (186 mph). While high-speed rail is usually designed for passenger travel, some high-speed 18 | P a g e
systems also offer freight service. The European Union Directive 96/48/EC, Annex 1 (European Commission, 1996) defines high-speed rail as a set of three elements with precise criteria:
Infrastructure: track built specially for high-speed travel or specially upgraded for high-speed travel.
Rolling stock: Minimum speed of 250 km/h (155 mph) on lines specially built for high speed and 200 km/h (124 mph) on existing lines which have been specially upgraded.
Operating conditions: Rolling stock must be designed alongside its infrastructure for complete compatibility, safety and quality of service.
Some nations have domestic standards which may vary from the international ones. Continuous welded rail is generally used to reduce track vibrations and misalignment. Almost all high-speed lines are electrically driven via overhead cables, have in-cab signalling, and use advanced switches using very low entry. Cab signalling is a railway safety system that communicates track status information to the cab, crew compartment or driver's compartment of a locomotive, railcar or multiple unit, where the train driver or engine driver can see the information continuously. Constrictions, such as at-grade crossings, where lines intersect other lines and/or roadways are eliminated. For this reason, Japan and China typically build their high-speed lines on elevated viaducts. High-speed lines avoid tight curves, which reduce speed. Curve radius is typically above 4.5 kilometres (2.8 mi), and for lines supporting 350 km/h (217 mph) speeds, typically at 7 to 9 kilometres (4.3 to 5.6 mi). The lines may rest on traditional sleeper and ballast or on concrete tiles and fences prevent access to the tracks on foot. HSR is best suited for journeys of 2 to 4½ hours (about 250–900 km or 160–560 mi), for which the train can beat air and car trip time. HSR is much simpler to control due to its predictable course. High-speed rail systems reduce (but do not eliminate) collisions with automobiles or people, by using non-grade level track and eliminating grade level crossings.
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2.13. Conclusion This chapter mainly comprises the overview of BR, IR and PR which gives an idea of operations of these rail industry and necessity for the comparison of operational performance. Every year in Bangladesh the increment of passenger about 8.4% and freight 8.2% where BR shares only 12% and 7% accordingly. BR can plays a significant role in share of passenger and freight. Hence the idea of Multimodalism is developed to increase the decaying share of railway and reduce the pressure of roadway. This idea can be implemented successfully if the operational performance can be increased. In this context the primary constraints are need to be removed. Allocation of budget along with proper flow of budget and successful implementation will increase the operational performance. To cope up with the growing tendency of passenger demand, a plan for HSR is a need of time for BR. The plan must be comply with the demand, need and also viable with the cost and allocation.
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CHAPTER 3 ISSUES OF BANGLADESH, INDIA & PAKISTAN RAILWAY
3.1.
Overview of Bangladesh Railway
During the last decades, the shares of the different modes have undergone major change and as experienced in other countries, road transport of the country has grown rapidly and rail’s share has slipped down considerably. Critical analysis of the efficiency of Bangladesh Railway (BR) points up the dramatically worsening operating ratio over the last decades. The pessimism as to whether BR can, in fact, turn itself around is based on a number of considerations. The three critical ones appear to be (Md. Saidur Rahman, 2005): •
The ongoing decline in BR’s operating performance;
•
BR’s failure to meet its action plan commitments on reform processes; and
•
BR’s inability to get the political attention to resolve its problems.
Although some of the problems are well documented, others have curiously received little attention of any governments in the past. The main factors behind the reduced competitiveness of rail transport are institutional shortcomings and physical bottlenecks resulting from poor infrastructure and antiquated rolling stock. BR is also severely restricted by its two different gauge systems (broad and meter gauge), which is a legacy from the development of the railway network on the Indian subcontinent prior to its partition in 1947. To maintain a competitive position, railways concentrate on longhaul transport, particularly freight movements and intercity passenger traffic. Rail has also a potential role to play in mass transit for people in greater Dhaka, which is experiencing a rapid increase in motorized traffic. Experience elsewhere shows that rail transport creates less environmental damage than road traffic and can reduce pollution, congestion, accidents, and fatalities.
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3.2.
Operational Performance of BR
3.2.1. Route Kilometre and Track Kilometre Bangladesh has been experiencing a reduction in total route KM and track KM since 1969, while track KM was 4448 KM and route KM was 2858 KM in 1969-70, now it becomes total route 2835 KM and track 3973 KM. Figure 3.1 illustrate the trend. Detailed information is given in Annexure A.3 5,000.00 4,500.00 4,000.00 3,500.00 3,000.00 2,500.00 2,000.00
Track KM
1,500.00
Route KM
1,000.00 500.00
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
2004-2005
2003-2004
1969-1970
0.00
Figure 3.1 Total Route and Track KM of BR (BR Information Book, 2011)
3.2.2. Passenger Traffic With the development of road transport facilities there has been a shift in the trend of passenger traffic with short distance passengers preferring road transport, because of their frequent and point-to-point services. 80,000
No. of passenger
70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1969-70
1997-98
1999-00
2001-02
2003-04
2005-06
2008-09
Figure 3-2: Total Passengers Carried by BR (Source: BR Information Book) 22 | P a g e
During 2009-10, BR transported about 65.6 million passengers but 73 million in 1969-70. But the total passenger-kilometres in 2009-10 were 7304 million passenger-km against 3316 passenger-km in 1969-70 (Figures 3.2 & 3.3). Table 3.1- No. of Passenger Carried by BR (BR Information Book, 2011) Number of Passengers carried (000) Year July-June 1969-70 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2007-08 2008-09 2009-10
East Zone -21,654 23,124 24,873 26,482 28,551 27,087 26,910 28,962 26,925 28,004 32848 38863 40138
West Zone -16,126 15,236 11,427 12,233 12,715 11,694 12,477 14,758 15,628 16,804 21711 26467 25813
Total System 72,885 37,494 38,300 36,239 38,634 41,212 38,716 39,162 43,435 42,254 44,520 53816 65029 65627
Passenger Kilometres (000) East Zone -2,752,172 2,947,631 2,957,344 3,075,618 3,306,478 3,142,109 3,196,908 3,321,045 3,083,613 3,142,889 3882617 4643753 5106354
West Zone -1,001,437 907,868 720,918 865,070 902.708 829,733 827,298 1,020,425 1,080,520 1,244,558 1726626 2156980 2198591
Total System 3,316,993 3,753,609 3,855,499 3,678,262 3,940,688 4,209,186 3,971,842 4,024,206 4,341,470 4,164,133 4,387,447 5609243 6800733 7304945
8,000,000 7,000,000
5,000,000 4,000,000 3,000,000 2,000,000 1,000,000
2009-10
2008-09
2007-08
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
0
1969-70
Passenger-KM
6,000,000
Figure 3-3: Total Passenger-Km Carried by BR (Source: BR Information Book)
23 | P a g e
3.2.3. Freight Traffic The railway has been facing tough competition with other modes of transport for the high rated traffic, which pay more revenue. On the other hand, the railway is called upon to carry traditional low rated essentials. As a national carrier, BR has obligation to carry essential commodities like food grains, fertilizer, jute, cement, coal, iron and steel, stone and boulders, petroleum products, salt, sugar etc. to the remote corners of the country at a cheaper rate. The freight traffic during 2009-10 was 3473 thousand tonnes against 2714 where 4879 thousand tonnes in 1969-70. Net tonne-km in 2009-10 was 710064 thousand tonne-KM which was 1265063 thousand tonne-KM in 1969-70. These figures show the decreasing trend in freight transportation performance of BR for years together. Figure 3-4, 3-5 and 3-6 show the freight carrying performance of BR. Table 3.2- Total Freight Tonnes Carried By BR and Net Tonne-KM (BR Information Book, 2012) Year July-June 1969-70 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Freight tonnes carried (000) East West Total Zone Zone System 4,879 1,698 1,652 2,936 1,718 1,657 3,038 1,839 2,007 3,418 1,573 1,725 2,889 1,691 2,305 3,465 1,630 2,615 3,667 1,678 2,549 3,666 1,699 2,184 3,473 1,357 2,340 3,206 1440 2,212 3,057 1431 2001 2967 1348 2600 3282 1391 2067 3010 1187 1969 2714
Net tonne Kilometres (000) East West Total Zone Zone System 1,265,063 499,615 282,814 782,429 505,021 298,828 803,849 545,291 351,106 896,397 467,362 309,799 777,161 500,461 407,416 907,877 485,862 465,959 951,821 499,792 452,195 951,987 504,519 390,980 895,499 401,646 415,172 816,818 425,642 394,844 820,486 424270 351305 775575 403323 466268 869591 425042 375117 800159 357584 352480 710064
24 | P a g e
6,000
tonnes in 1000
5,000 4,000 3,000 2,000 1,000
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1969-70
0
Figure 3-4: Total Freight tonne (000) Carried by BR (Source: BR Information Book, 2011) 1,400,000 1,200,000
tonne-KM
1,000,000 800,000 600,000 400,000 200,000
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1969-70
0
Figure 3-5: Total Freight Tonne-km by BR (Source: BR Information Book, 2011) 275 270
KM
265 260 255 250 245 1969-70 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 average KM a tonne of good is carried
Figure 3-6 Average KM a Tonne of Good Is Carried (BR Information Book, 2012) 25 | P a g e
3.2.4. Container Services During the year 2009-10, a total of 65833 number of containers were handled at Chittagong Port and Dhaka ICD. A total of 539926 tonnes of different commodities were transported in those containers, which contributed a total of Tk. 449023836 to the Railway revenue. Table 3.3-Container service in BR (BR Information Book)
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Chittagong Port ICD loaded 10,726 11,994 14,611 17,750 21,899 24,796 26,925 28,218 33,254 34,690 40,219 36,558 38267 35840 32320
to Dhaka empty 2,285 2,940 2,380 1,857 1,156 1,725 2,198 2,095 2,186 1,295 1,112 776 2076 982 428
Dhaka ICD to Chittagong Port loaded empty 7,724 4,701 7,981 7,038 9,272 7,380 11,009 7,810 12,017 10,549 13,628 12,588 12,940 16,238 13,179 17,534 15,879 18,928 14,191 21,505 13,670 26,269 15,325 23,913 18085 23,502 19500 17449 19509 13576
Total All
25,436 29,953 33,643 38,426 45,621 52,737 58,301 61,026 70,247 71,981 81,270 76,572 81930 73471 65833
90,000 80,000
60,000 50,000 40,000 30,000 20,000 10,000
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
0
1995-96
No. of containers
70,000
Figure 3-7 Container Service in BR (Source: BR Information Book, 2011)
26 | P a g e
3.2.5. Operating Income & Operating Ratio From analysis of previous data since1969, it is found that the trend of income in BR increase with time, but the rate of increase is very low. The revenue earned 53 taka per passenger and 439 taka per tonne of goods in 2012. Detail data in Annexure A.4, A.5 500 450 400 350
Revenue per passengers (Taka)
Taka
300 250
Revenue per tonne (Taka)
200 150 100 50
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1969-70
0
Figure 3-8: Operating Revenue by BR (Source: BR Information Book, 2012) 300
Operating Ratio
250 200 150 100 50 0 1969-70 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 General administration
Repair & maintenance
Operational staff
Operational Fuel
Operations other than staff & fuel
Miscellaneous expenses
Total operating ratio
Figure 3-9: Operating Ratio of BR (Source: BR Information Book, 2012) Operating ratio in figure 3.9 shows the efficiency of a railway’s management by comparing operating expense to net sales. Calculated as:
27 | P a g e
The smaller the ratio, the greater the organization's ability to generate profit if revenues decrease. During the year 2011-2012, net operating ratio of the Bangladesh Railway was 259.7%, total expenses were 259.7% of total earnings. Expenses on General Administration were 33.0%, Repairs and maintenance 80.0%, Operation
staff 12.7%, Operation fuel 42.4%, Operation
other than staff and fuel 21.0%, miscellaneous expenses70.6% and Depreciation Nil which actually was not calculated. The trend in figure shows that the ratio increases though. Continuously increasing cost and with traditional faring system makes the ratio higher. 3.2.6. Social Cost The network of Bangladesh railway not only serves the country’s trading community but also plays a vital role in the socio-economic development and industrialization of the country. Although BR is expected to serve both as a commercial enterprise and as a public utility service, but, as a commercial enterprise, it has an obligation to generate sufficient revenue to meet the cost of operation, pay interest on the capital of the Government & foreign loans and provide funds for renewal of assets and modernization of the system as a whole. However, as a foremost public utility service, the railway has a special responsibility to provide the transport services for the movement of commodities of mass consumption and for the large number of passengers. Tariff of the railway is not only cost based and is dictated by the wider social and economic interest of the country. Consequently, it has not been possible for BR to balance the earning and the expenditure due to the continuation of operation of non-profitable services, especially, the uneconomic branch lines or train services and few other similar noneconomic factors. Besides, as a matter of national policy, BR is required to provide transport of essential commodities on top priority basis in emergent situations and also to provide concession transport facilities for essential commodities of common consumption by the economically weaker sections of the community.
28 | P a g e
3.3.
Performance of Indian Railway (IR)
3.3.1. Track Condition As on 2010-2011, the route length of Indian Railways covered 64,460 km with running track length of 87,040 km. The total trackage including yards, sidings etc. stood at 113,993 km. The table below shows the changing size of IR’s rail network over the years. Table 3.4- Total Route KM and Running Track KM (IR Information book, 2011) Year
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 2008-09 2009-10 2010-11
Route km
Running track km
Total track km
Electrified
Total
Electrified
Total
Electrified
Total
388 748 3,706 5,345 9,968 14,856 18,274 18,559 18,927 19,607
53,596 56,247 59,790 61,240 62,367 63,028 63,273 64,015 63,974 64,460
937 1,752 7,447 10,474 18,954 27,937 34,700 35,471 35,811 36,000
59,315 63,602 71,669 75,860 78,607 81,865 85,158 86,937 87,087 87,040
1,253 2,259 9,586 13,448 25,305 36,950 47,296 47,862 48,639 49,489
77,609 83,706 98,546 104,480 108,858 108,706 111,599 113,115 113,617 113,993
120,000 100,000 80,000 60,000 40,000 20,000
route KM Total
Electrified
2010-11
2009-10
2008-09
2007-08
2000-01
1990-91
1980-81
1970-71
1960-61
1950-51
0
Total track KM
Figure 3.10- Total Route KM, Track KM and Electrified Lines of IR (IR Information Book, 2011)
29 | P a g e
3.3.2. Passenger Traffic Indian Railways is a commonly used mode of public transportation in the country. The detailed database on passenger is given in table 3.5. During 2010-11, it carried 7,651 million passengers as against 7,246 million in 2009-10 thus registering a volume growth of 5.6%. Passenger kilometres, which is calculated by multiplying the number of journeys by mean kilometric distance was 979 billion, up by 8.3% from 903 billion in the previous year. From figure-11, 12 IR shows an upward trend both in Passenger and passenger KM (detail data in Annexure A.6). Table 3.5- Passenger Traffic on Different Zones in IR (IR Information Book, 2011) Year
Suburban (all classes)
Upper class
Mail/ Express
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 2008-09 2009-10 2010-11
412 680 1,219 2,000 2,259 2,861 3,689 3,802 3,876 4,061
25 15 16 11 19 40 66 76 86 100
52 96 155 260 357 472 776 895 983 1046
Non suburban Second class 795 803 1,041 1,342 1,223 1,460 1,993 2,147 2,301 2,444
Total NonSuburban 872 914 1,212 1,613 1,599 1,972 2,835 3,118 3,370 3,590
847 899 1,196 1,602 1,580 1,932 2,769 3,042 3,284 3,490
Grand Total in million 1,284 1,594 2,431 3,613 3,858 4,833 6,524 6,920 7,246 7,651
9000
7000 6000 5000 4000 3000 2000 1000
2010-11
2009-10
2008-09
2007-08
2000-01
1990-91
1980-81
1970-71
1960-61
0
1950-51
No of passengers million
8000
Figure 3.11- Passenger Trend in India (IR Information Book, 2011)
30 | P a g e
1200000
Passenger KM Mllion
1000000 800000 600000 400000 200000
2010-11
2009-10
2008-09
2007-08
2000-01
1990-91
1980-81
1970-71
1960-61
1950-51
0
Figure 3.12- Passenger KM in India (IR Information Book, 2011)
3.3.3. Freight Traffic: Revenue earning freight traffic handled during 2010-11 was 921.73 million tonnes. The growth of freight can be found from table 3.6. Figure 3.13 shows the upward trend of IR. Table 3.6- revenue earning freight train KM and Tonnes (IR Information Book, 2011) Year
Total Freight Train Km (Million)
Tonnes (Millions)
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 2008-09 2009-10 2010-11
112 161 202 199 245 261 325 340 356 368
73.2 119.8 167.9 195.9 318.4 473.5 793.89 833.39 887.79 921.73
31 | P a g e
1000 900 800 700 total freight train Km (Million)
600 500 400
tonnes (millions)
300 200 100
201011
200910
200809
200708
200001
199091
198081
197071
196061
195051
0
Figure 3.13 Total Freight Tonnes Carried and Tonne KM of IR (IR Information Books, 2011) 3.3.4. Revenue Passenger earnings in 2010-11 were 25,705.64 crore (excluding ` 86.98 crore earned by Metro Railway, Kolkata). This was 2,291.20 (9.78%) higher than the earnings in 2009-10. Suburban traffic contributed 6.95% to the total earnings. The remaining 93.05% came from non-suburban passengers. Earnings from Second and Sleeper Class Mail/Express passengers comprised 50.14% of the total passenger earnings shown in table 3.7. Table 3.7- Passenger Revenue in Different Classes with Corresponding Number of Passengers and Passenger KM in 2010-11 (IR Information Book, 2011) Segment Non-suburban: Upper Class Second Class Mail/Express# Second Class Ordinary Total Suburban (all classes) Grand Total
No. of passengers Million %
Passenger km Million %
Revenue in cr.
%
100 1,046 2,444
1.3 13.67 31.95
62,203 500,631 278,547
6.36 51.16 28.47
6,625.37 12,888.85 4,405.14
25.77 50.14 17.14
3,590 4,061
46.92 53.08
841,381 137,127
85.99 14.01
23,919.36 1,786.28
93.05 6.95
7,651
100
978,508
100
25,705.64
100
32 | P a g e
3.4.
Performance of Pakistan Railway
3.4.1. Passenger Traffic Duringtheyear2011-2012, Pakistan Railways carried 41,097,192passengers making a total of 16,093,350,581 passenger-kilometres, averaging392 kilometres per passenger. Table 3.8 includes passengers travelling on reduced fare tickets but excluding those travelling on free passes. Table 3.8- Year-Wise Passenger Data (PR Information Book, 2012) Year
No. of
Total
Average No. of
Average
Average Rate
Passenger
Passenger
KM travel by a
Revenue per
Charged per
Carried
KM (000)
passenger
passenger (Rs.)
passenger per
(000)
KM (poisa)
1950-55
78,942
6,778,538
85.9
85.9
1.75
1955-60
102,657
8,064,025
78.5
78.5
1.99
1960-65
126,284
9,533,593
75.5
75.5
2.05
1965-70
130,475
10,025,201
76.9
76.9
2.28
1970-75
134,076
10,792,170
80.5
80.5
2.93
1975-80
145,710
15,111,969
103.71
103.71
4.31
1980-85
113,474
17,402,638
153.4
153.4
7.21
1985-90
82,319
18,483,168
224.5
224.5
9.42
1990-95
69,084
17,828,907
258.1
258.1
15.55
1995-00
67,964
18,853,609
277.4
277.4
23.35
2000-05
72,828
21,992,225
301.9
301.9
33.7
2005-10
80,557
20,970,516
312.9
312.9
44.51
2010-11
64,903
20,618,829
317.68
317.68
58.03
2011-12
41,097
16,093,350
391.59
391.59
69.27
33 | P a g e
3.4.2. Track Kilometre Pakistan Railways had a total of 11,755.00 track-kilometres (including double line track, yards and sidings) at the end of 2011-2012. This consists of 11,366.00 kilometres of broad-gauge and 389.00 kilometres of meter-gauge. Table 3.9- Gauge wise Track KM of Pakistan Railway (PR Information Book, 2012) Year
Broad-Gauge
Meter-Gauge
Narrow-Gauge
Total
(Kilometres)
(Kilometres)
(Kilometres)
(Kilometres)
1950-55
10,478.60
628.09
894.1
12,000.79
1955-60
10,647.22
627.92
752.48
12,027.62
1960-65
10,783.67
628.55
727.36
12,139.58
1965-70
10,934.14
584.92
728.62
12,247.68
1970-75
11,168.12
552.6
727.51
12,448.23
1975-80
11,248.37
552.37
728.8
12,529.54
1980-85
11,327.37
554.1
727.11
12,608.58
1985-90
11,340.11
555.1
726.11
12,621.32
1990-95
11,345.52
555.1
726.11
12,626.73
1995-00
10,971.00
555.1
..
11,526.10
2000-05
10,960.00
555
..
11,515.00
2005-10
11,235.00
412
..
11,647.00
2010-11
11,343.00
412
..
11755
2011-12
11,366,00
389
..
11755
3.4.3. Route kilometre At the end of the year 2011-2012, the Pakistan Railways had a total of 7,791.00 routekilometres. Table 3.10 represent the total point-to-point length of the main and branch lines. These do not include kilometreage of yard tracks, or any parallel tracks/sidings. This kilometreage consists of two different gauges, here 7,479.00 kilometres of broad-gauge and 312.00 kilometres of meter-gauge. Figure 3.14 shows the variation of total route and track KM of PR. Especially after 1995 both track and route KM reduces. In 2012 the route KM reaches 7791KM, while it was 8596KM 34 | P a g e
in1970. Table 3.10- Gauge Wise Route KM (PR Information Book, 2012) Year
Broad Gauge
Meter Gauge
Narrow Gauge
Total Route Km
1950-55
7,313.30
511.88
735.6
8,560.78
1955-60
7,433.18
511.88
637.43
8,582.49
1960-65
7,451.20
511.97
611.1
8,574.27
1965-70
7,513.74
472.08
611.1
8,596.92
1970-75
7,702.54
445.4
611.1
8,759.04
1975-80
7,758.02
445.51
611.25
8,814.78
1980-85
7,735.35
445.4
611.1
8,791.85
1985-90
7,718.37
445.4
611.1
8,774.87
1990-95
7,718.37
445.4
611.1
8,774.87
1995-00
7,346.22
477
..
7,823.22
2000-05
7,346.00
445
..
7,791.00
2005-10
7,479.00
312
..
7,791.00
2010-11
7479
312
..
7791
2011-12
7479
312
..
7791
14,000.00 12,000.00 10,000.00 total track (Kilometres)
8,000.00
Total Route Km
6,000.00 4,000.00 2,000.00
2011-12
2010-11
2005-10
2000-05
1995-00
1990-95
1985-90
1980-85
1975-80
1970-75
1965-70
1960-65
1955-60
1950-55
0.00
Figure 3.14 Trend of Total Track KM and Route KM of PR (PR information Book, 2011)
35 | P a g e
3.4.4. Revenue During the Financial Year 2011-2012, total earnings of the Pakistan Railways amounted to Rs. 15,444,393,053 consisting of Rs. 11,148,334,662 (72.18%) from passengers Rs.1,018,124,175 (6.59%) from luggage, parcels, mails, etc., Rs. 1,583,284,541 (10.25%) from freight, and Rs. 1,694,649,675 (10.97%) from telegraphs and other miscellaneous sources.
Table 3.11- Revenue Earning Trend in PR in Million (PR Information Book, 2012)
3.5.
Passenger
Mail
Freight
Miscellaneous
Total
Earning
Services
Earning
1950-55
118.539
22.052
169.396
5.152
315.139
1955-60
158.72
31.086
222.06
8.248
420.114
1960-65
195.869
32.078
276.792
9.962
514.701
1965-70
241.706
42.527
346.412
14.97
645.615
1970-75
322.073
49.62
573.838
14.439
959.97
1975-80
653.459
79.428
1,352.60
29.987
2,115.47
1980-85
1257.726
165.227
1,866.02
53.713
3,342.69
1985-90
1743.138
254.019
3,004.62
93.089
5,094.86
1990-95
4066.805
464.272
3,880.23
172.872
8,584.18
1995-00
4425.363
655.532
4,162.72
202.451
9,446.07
2000-05
7,457.14
826.536
4,885.68
1,281.89
14,451.25
2005-10
11,190.51
988.648
6,160.08
2,139.38
20,478.61
2010-11
11,965.47
1,018.67
3,337.89
2,290.03
18,612.07
2011-12
11,148.34
1,018,124
1,583.28
1,694.65
15,444.39
Conclusion
Different types of issues regarding Bangladesh Railway, Indian Railway and Pakistan Railway are grouped together so that their performance and network of railway operations becomes more understandable. This gives a broader view of Bangladesh, India and Pakistan Railway industry. With this an idea of comparability and a basis can also be established for comparing the operations. Issues mainly includes passenger traffic, freight traffic, track condition, operational track kilometres and revenue from different sectors. The database consists of trend from previous years, this also helps to understand the current conditions compared to previous years. Operating ratios shows the relationship between net revenue and expenditure. 36 | P a g e
Chapter 4 COMPARATIVE STUDY OF OPERATIONAL PERFORMANCE OF BANGLADESH, INDIAN AND PAKISTAN RAILWAY 4.1.
Introduction
Bangladesh railway (BR), started as a portion of sub-continent British railway, now serving as a major transportation agency in Bangladesh. It has inherited number of structural and physical weakness since 1971 and not yet developed up to demand. Now BR is in poor operating condition mainly due to poor management and hardly cope up with the vast population of Bangladesh, while roadway expand rapidly. Thinking of multimodal transportation system gives rise to the importance of railway and makes it more efficient in transportation sector. Performance study of BR comprises previous and current operations of Bangladesh as well as a comparison India, Pakistan. This gives a clear view of the statistical progress of BR with time and simultaneous progress to neighbouring countries. This statistical study mainly based on the information books available of Bangladesh Railway, Indian Railway and Pakistan Railway. The main aim of this study is to compare the railway situation in south Asia. Because of limitation of availability of railway data, this comparison is limited within Bangladesh, India and Pakistan. Moreover popularity, serviceability, productivity consideration in railway as a mode of transporting passenger as well as freight, differs with countries. Atmospheric condition, Socio-economic condition, cultural condition and behaviour of people have similarity in this region. The performance study, this way comprises a common background for this regional country. Now the world tries to motivate railway other than roadway. In this situation the developing region, South Asian courtiers make more concern on developing railway. For example, India has shown the world’s leading position in passenger traffic activity ranking (percent of total world passenger 6.9%, passenger route-kilometres 64460KM). Bangladesh also shows some ups and down in operation of BR since 1971(Analysed in following chapter as per Information book of Bangladesh Railway), after liberation war. Pakistan also has huge opportunity in this sector regarding economic development as well as social productivity. But due to lack of information the other countries 37 | P a g e
can’t be analysed as like Bangladesh, India and Pakistan. So the study is limited to analysing and comparing between Bangladesh, India and Pakistan. As per availability of data regarding passenger and freight traffic, at the end of the chapter, there is an overview on world other countries leading in railway industry. There is also a scope of comparison between Bangladesh Railway and the other country’s railway organizations.
4.2.
Sectors of Performance Study
The following operations are selected for study mainly based on information available. To choose the operations priority is given to the common operation available data between the selected countries.
Vehicle-kilometres per-vehicle day on line (in terms of 4-wheelers) for Passenger carriages and other coaching vehicle- indicates vehicle and coach productivity.
Wagon kilometres per wagon day on line- indicate wagon productivity.
Average wagon load during the run- significant in freight operation.
Net load per train- indicator of route capacity.
Net tonne kilometres per wagon day- capacity of wagon are determined through this measure
Engine kilometres per day per engine in use- indicate efficiency of locomotive.
Engine kilometres per day per goods engine in use- indicator of efficiency of freight operation.
For comparison of railway network, passenger traffic and freight traffic, the following information are selected.
Passenger kilometres
Route kilometre
Track kilometres
Passenger transport
Freight kilometres
Freight transport 38 | P a g e
4.3.
Vehicle-Kilometres Per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Passenger Carriages
This indicator provides a measure of vehicle productivity. A vehicle should be used as intensively as possible, provided that passenger demand is sufficient to cover the direct costs of operation. A high kilometre per vehicle per day (KPVPD) figure indicates intensive use, but gives no indication of the viability of the kilometres operated, and therefore does not necessarily imply optimum usage of a vehicle in economic terms. Wasteful or unnecessary use, even though it increases utilization, should obviously be kept to a minimum. Table-4.1 Vehicle-Kilometres Per-Vehicle Day on Line for Passenger Carriages (Information books BR, IR & PR, 2012) Year
Bangladesh Railway
Indian Railway
Pakistan Railway
1969-70
454
473
308
1993-94
407
662
328
1994-95
401
670
348
1995-96
431
679
351
1997-98
451
696
353
2000-01
489
730
357
2004-05
526
726
386
2005-06
520
722
388
2006-07
550
715
390
2007-08
590
699
394
2008-09
605
674
403
2009-10
615
719
421
2010-11
623
736
390
2011-12
659
312
Table-4.1 Includes BG and MG in BR, IR and PR.
39 | P a g e
800 700
kilometrs
600 500 Bangladesh
400
India
300
pakistan
200 100
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1997-98
1995-96
1994-95
1993-94
1969-70
0
Figure 4.1- Vehicle-Kilometres per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Passenger Carriages (Information Book of BR, IR & PR) Table-4.1 provides a comparative kilometre per vehicle per day in term of passenger regarding BR, IR and PR. BR started its journey since 1971 and the KPVPD value at that time was 454 KM. on the other hand IR shows kilometre per vehicle per day value almost same as BR 473 KM. at the same time PR has less kilometre per vehicle per day value of 308 KM, the most effective utilization of vehicle compared to BR and IR. Figure 4.1 shows the variations of KPVPD values with time. In recent time 2010-11 an increment of KPVPD of BR (623 KM) and IR (736 KM) is noted and indicates the frequent use of coaching vehicles. PR reached its height vale 423 KM in 2009-10, but reduces KPVPD in 2012 as 312 KM. It indicates the most effective utilization of vehicles. The numerical figures take into account all the coaching vehicles on line, serviceable and unserviceable, weather actually moving or stationary. Though the number of unserviceable passenger vehicle is very low.
40 | P a g e
4.4.
Vehicle-Kilometres Per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Other Coaching Vehicle
This operation also measure of productivity of other coaching vehicle. Table-4.2 Vehicle-Kilometres Per-Vehicle Day on Line for Other Coaching Vehicle. (Information Book of BR, IR & PR, 2012) Year
Bangladesh Railway
Indian Railway
Pakistan Railway
1969-70
224
473
79
1993-94
361
696
107
1994-95
226
712
92
1995-96
192
720
112
1996-97
157
724
122
1997-98
169
728
128
2000-01
188
730
133
2004-05
207
714
140
2005-06
238
706
146
2006-07
259
706
125
2007-08
233
699
118
2008-09
228
674
111
2009-10
225
719
107
2010-11
223
736
105
2011-12
234
90
Table-4.2 Includes BG and MG in BR, IR and PR. 800 700 600 400
Bangladesh
300
India
200
Pakistan
100
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1997-98
1996-97
1995-96
1994-95
1993-94
0
1969-70
Kilometers
500
Figure 4.2- Vehicle-Kilometres per-Vehicle Day on Line (In Terms Of 4-Wheelers) For Other Coaching Vehicle (Information Book of BR, IR & PR, 2012)
41 | P a g e
Table -4.2. Shows the KPVPD value of BR, IR and PR regarding other coaching vehicles. In 1969-70, KPVPD value of other coaching vehicle of BR and IR was 224 KM and 473 KM while PR the KPVPD value was only 79 KM. In recent years 2010-11 the KPVPD value of IR is 736KM shows that in time IR can’t reduce the value. But in case of BR and PR the value in 2011-12 is 234 KM and 90 KM, showing a little change in years. The trend line of BR is showing a significant improvement in this sector while PR makes it almost constant. 4.5.
Wagon Kilometres Per Wagon Day On Line:
The total amount of wagon kilometres run over wagon day both empty and full on the line. Table-4.3 Wagon kilometres per wagon day on line (Information Book of BR, IR & PR, 2012) Year
Bangladesh
Indian Railway
Pakistan Railway
Railway 1969-70
53.8
131.8
51.6
1993-94
20.08
201.7
45.2
1994-95
23.28
212.3
41
1995-96
25.6
216.5
40.7
1996-97
28.2
218.7
40.5
1997-98
32.1
221.3
39.4
2000-01
50.5
222.8
38.9
2004-05
59.7
248.8
35.1
2005-06
108.4
262.4
35
2006-07
85.9
268.9
35
2007-08
96.6
270.8
35
2008-09
69.8
293.6
35
2009-10
56.4
285.9
35.5
2010-11
43
293.7
13.2
2011-12
167.2
10.5
42 | P a g e
350 300
Kilometers
250 200 Bangladesh 150
India
100
Pakistan
50
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1997-98
1996-97
1995-96
1994-95
1993-94
1969-70
0
Figure 4.3- Wagon Kilometres per Wagon Day on Line (Information Book of BR, IR & PR, 2012) Table-4.3 Dataset provides wagon utilization indication of BR, IR, and PR. Wagon Kilometre per Wagon Day (WKPWD) value of IR shows height KM compared to BR and PR. In 196970 WKPWD of IR was 131.8 KM and in 2010-11 it becomes 293.7 KM. In case of BR WKPWD in 19969-70 was 53.8 KM and in 2011-12 it is 167.2 KM, showing a positive sign of efficient utilization of freight wagon. In case of PR the WKPWD reduces with time gradually, from 51.6 KM in 1969-70 to 10.5 KM in 2011-12. This drastic reduction may because of reducing interest & security in freight movement through rail. 4.6.
Average Wagon Load During Run
It is the average load carried by a wagon in freight transport. Increment of this value associated with various factors. The modernization of wagon, the load carrying capacity of each wagon, rail track as well as well freight transport management. Table-4.4 shows the carrying capacity per wagon on BG and MG in the three countries. In year 1969-70 PR and BR had carrying capacity 15.7 tonnes and 11.5 tonnes but IR had 23.45 tonnes average capacity. Since then IR increase their carrying capacity and in year 2010-11 it becomes 44.7 tonnes. Figure 4.4 shows the trend with year. Compared to IR, BR and PR lagged behind and reach its capacity 25.8 tonnes and 21.5 tonnes, almost half of IR.
43 | P a g e
Table-4.4 Average Wagon Load during the Run (Information Books of BR, IR, and PR,2012) Year
Bangladesh
Indian Railway
Pakistan Railway
Railway(Tonnes)
(Tonnes)
(Tonnes)
1969-70
11.5
23.45
15.7
1993-94
15.7
35.75
19.8
1994-95
15.8
38.65
19.5
1995-96
17.2
40.35
19.5
1996-97
18.6
40.9
19.5
1997-98
17
41.4
19.5
2000-01
17.8
42.7
19.5
2004-05
18.5
42.55
21.3
2005-06
14.9
42.4
21
2006-07
15.8
42.4
20.7
2007-08
21.4
42.85
20.4
2008-09
25
44.35
20.2
2009-10
27.4
44.45
20
2010-11
30.2
44.7
20.6
2011-12
25.7
21.5
50 45
Average wagon load
40 35 30 25
Bangladesh
20
India
15
Pakistan
10 5
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1997-98
1996-97
1995-96
1994-95
1993-94
1969-70
0
Figure 4.4 Average Wagon Load during Run (Information Books of BR, IR, And PR, 2012)
44 | P a g e
4.7.
Net Load Per Train
Route capacity is determined by the number of trains that can pass over a railroad line in a given period of time. Increased capacity of freight trains means increased route capacity. More powerful engine, large cars and longer trains have had the effect of increasing output per train and thereby increasing net load per train (net tonne-kilometres per train-kilometre). Table-4.5 Net Load per Train (Information Books of BR, IR, And PR, 2012) Year
Bangladesh
Indian
Pakistan Railway
Railway (Tonnes)
Railway (Tonnes)
(Tonnes)
1969-70
329
473
507
1993-94
417
822
616
1994-95
449
823
619
1995-96
464
823
615
1996-97
502
824
615
1997-98
499
824
614
2000-01
518
824
613
2004-05
538
980
694
2005-06
465
1057
751
2006-07
472
1096
780
2007-08
633
1135
795
2008-09
788
1047
798
2009-10
867
1132
808
2010-11
977
1095
673
2011-12
804
557
Table-4.5 provides information about net load carried in MG and BG per train in BR, IR and PR. The average net load carried by BR was 329 tonnes in 1969-70 and 804 tonnes in 201112. There are some breakdowns in the trend line. Technological improvement, as well as increase route capacity increase net load per train. Regarding IR, the average loads was 473 tonnes in 1969-70 and 1095 tonnes in 2010-11. But PR reduced in train net load with time while it was 507 tonnes in 1969-70 and after 798 in 2008-09, it gradually decreases to 557 in 2011-12.
45 | P a g e
1200 1000
tonnes
800 Bangladesh
600
India 400
Pakistan
200
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1997-98
1996-97
1995-96
1994-95
1993-94
1969-70
0
Figure 4.5- Net Load per Train (Information Books of BR, IR and PR, 2012) 4.8.
Net Tonne Kilometres Per Wagon Day
The sum of tonnes carried by wagons multiplied by the total distance travelled per wagon day. In year 1969-70 BR and PR had average net tonne kilometres per wagon day (NTKPWD) value of 419 tonne-KM and 607 tonne-KM accordingly, while IR already had NTKPWD 1432 tonne-KM, much higher than BR and PR. In 2010-11, IR shows average NTKPWD 9909 tonne-KM and BR has NTKPWD 1666 tonne-KM. But PR shows only 56 tonne-KM. There may be political and economic issues associated with it. Moreover, PR shows poor performance through its trend line since 2007. But BR shows a positive increment in this operation through year from 2008 to 2012. 12000
Tonne-Kilometers
10000 8000 6000
Bangladesh
4000
India
2000
Pakistan
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1999-00
1997-98
1996-97
1995-96
1994-95
1993-94
1969-70
0
Figure 4.6- Net Ton Kilometres per Wagon Day (Information Books of BR, IR, and PR, 2012) 46 | P a g e
Table-4.6 Net Tonne Kilometres per Wagon Day (Information Books of BR, IR, and PR, 2012) Year
Bangladesh Railway
Indian Railway
Pakistan Railway
1969-70
419
1432
607
1993-94
205
2326
476
1994-95
243
2379
466
1995-96
324
2408
457
1996-97
342
2420
523
1997-98
582
2427
525
1999-00
702
2436
520
2000-01
763
2436
518
2004-05
822
3138
608
2005-06
1178
3485
698
2006-07
1039
3667
462
2007-08
1683
3842
345
2008-09
1078
9245
286
2009-10
775
9646
256
2010-11
472
9909
227
2011-12
1666
56
Table-4.6 Includes BG and MS 4.9.
Engine Kilometres Per Day Per Engine In Use
Engine KM per day per engine in use is the efficiency indicator of operational performance. Development of infrastructure, modernization of locomotives, and improvement of signalling etc. increase engine KM. Table-4.7 includes data of steam engine, Diesel engine and Electric engine. The data table shows that IR had very high engine KM per day of 3785 KM in 196970. On the other hand, BR and PR had 436 KM and 647 KM of engine kilometres respectively. With time the value reduces for IR and becomes 2654 km in 2010-11. The change is very little in BR and in 2011-12 it becomes 526 KM and the engine KM reduces in PR becomes 403 KM in 2011-12. Figure 4.7 shows the variations of Engine KM of BR, IR
47 | P a g e
and PR with year. BR shows consistence performance where both IR and PR has downward performance in recent years. Table-4.7 Engine Kilometres per Day per Engine In Use (Information Books Of BR, IR, And PR, 2012) Bangladesh Railway
Indian Railway
Pakistan Railway
1969-70
436
3785
647
1993-94
561
4086
697
1994-95
561
3745
689
1995-96
521
3573
682
1996-97
497
3487
592
1997-98
505
3444
548
1999-00
515
3422
525
2000-01
528
3401
503
2004-05
546
3039
461
2005-06
541
2858
419
2006-07
534
2767
395
2007-08
521
2677
382
2008-09
522
2670
376
2009-10
524
2625
372
2010-11
525
2654
370
2011-12
526
403
4500 4000 3500 3000 2500 2000 1500 1000 500 0
Bangladesh India
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1999-00
1997-98
1996-97
1995-96
1994-95
1993-94
Pakistan
1969-70
Engine Kilometers
Year
Figure 4.7- Engine Kilometres per Day per Engine in Use (Information Books of BR, IR,
and PR, 2012) 48 | P a g e
4.10. Engine Kilometres Per Day Per Goods Engine In Use Engine KM per day per goods engine in use is the efficiency indicator of freight operational performance. The measurement is like section-4.8. Table-4.8 Engine Kilometres per Day per Goods Engine In Use (Information Books Of BR, IR, And PR, 2012) Bangladesh Railway
Indian Railway
Pakistan Railway
1969-70
298
1442
513
1993-94
313
1606
433
1994-95
309
1510
415
1995-96
299
1462
397
1996-97
289
1438
351
1997-98
305
1426
328
1999-00
308
1420
316
2000-01
318
1414
305
2004-05
324
1216
316
2005-06
344
1117
324
2006-07
353
1067
280
2007-08
341
1018
258
2008-09
341
986
248
2009-10
340
958
243
2010-11
340
964
237
2011-12
346
230
1800 1600 1400 1200 1000 800 600 400 200 0
Bangladesh India
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2000-01
1999-00
1997-98
1996-97
1995-96
1994-95
1993-94
Pakistan
1969-70
Engine Kilometers
Year
Figure 4.8- Engine Kilometres per Day per Goods per Engine in Use (Information Books of BR, IR, And PR, 2012) 49 | P a g e
Table-4.8 includes data of steam engine, Diesel engine and Electric engine. The scenario is quite similar to Engine KM per Engine per day in use. In year 1969-70 BR, IR and PR had engine KM of 298, 1442, 513 KM respectively. In year 2010-11 IR has the value of 964 KM, for PR the value 230 KM in 2011-12. In case of BR the present value is 346 KM per day. Both IR and PR have a downward trend, but BR has an upward trend representing an upgrade of fuel efficiency and infrastructure.
4.11. Passenger & Freight scenario of Bangladesh Railway (An Overview of World Countries) The scope of this overview to illustrate the situation of BR compared to other countries railway system. As we have limited data access and availability, the overview is limited within the productivity of Railway, like Passenger and freight movement.
Year
85245
1338723
172217
1281.3
1858100
23.8
2005
India
63273
6524377
769956
727.7
480993
19.8
2007
Germany
34218
1785400
72554
274.6
88022
4.7
2005
Japan
12217
8987944
309741
36.2
23166
27.2
2007
Pakistan
7791
64903
20618
2.7
1757
3.8
2011
Sri-Lanka
1200
114400
4358
1.5
135
3.7
2005
Bangladesh 2877
66139
8788
2.2
583
1.7
2012
Burma
53180
3939
1.8
449
1.3
1991
3336
KM (million)
Russia
Freight
2005
(millions)
40.5
Freight
1934612
(million)
2309.2
Passenger
583320
(thousand)
1106510
Passenger
62200
Kilometre
China
Route
Traffic Density
KM
tonnes
tonne-
Table-4.9 Overview on passenger and freight rail transportation (Luis S. Thompson, 2010)
(Myanmar)
50 | P a g e
4.11.1. Route Kilometres Route kilometre is the length of rail route, excluding sliding and without adjustment for double track. Detail year wise data regarding BR, IR and PR is given in Annexure A.7 70,000.00 60,000.00
kilometers
50,000.00 40,000.00 Bangladesh Raulway 30,000.00
Indian Railway
20,000.00
pakistan Railway
10,000.00
2011-2012
2010-2011
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
2004-2005
2003-2004
2002-2003
2001-2002
2000-2001
1999-2000
1969-1970
0.00
Figure 4.9- Route kilometres (Information Books of BR, IR, and PR, 2012) Burma (Myanmar) Bangladesh Sri-Lanka Pakistan Japan Germany India Russia China 0
Total route KM
10000
20000
30000
40000
50000
China
Russia
India
Germany
Japan
62200
85245
63273
34218
12217
60000
70000
Pakistan Sri-Lanka 7791
1200
80000
90000
Burma Banglade (Myanma sh r) 2877 3336
Figure 4.10- Route Kilometres (Luis S. Thompson, 2010) From figure-4.9, it shows the tendency of change of route KM with year in Bangladesh, India and Pakistan. It illustrates that, there is hardly any change route KM in BR and PR. IR increased route KM in 2000-01. Figure-4.10 shows the route kilometres of Bangladesh compared to other countries is very little. Considering South Asia, this amount of route kilometres is slightly above Srilanka. In 2011-12 the total route kilometres is 2877KM which covers only 1% of selected countries. 51 | P a g e
4.11.2. Track kilometres The sum of all running lines, counting each line of doubled, tripled, etc., lines separately, between two points. Otherwise known as total track kilometres. Detail comparative data of figure-4.11 is given in Annexure A.8 120,000.00
Kilometers
100,000.00 80,000.00 60,000.00
Bangladesh Railway Indian Railway
40,000.00
Pakistan Railway 20,000.00
2011-2012
2010-2011
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
2004-2005
2003-2004
1969-1970
0.00
Figure 4.11- Track Kilometres (Information Books of BR, IR and PR, 2012) From figure 4.11 the comparative scenario of track kilometres of Bangladesh Railway, Indian railway and Pakistan Railway can be distinguished. From the trend line it shows that IR increase track KM since 2003-04 where both in BR and PR it reduces with time. Where track km in BR was 4448km in 1969-70, it reduces to 3976km in 2012.
4.11.3. Passenger Traffic Comparison of Total number of passengers between selected countries are illustrated in fig4.12. Total number of passengers in Bangladesh 66139,000 in 2011-12, which is very little compared to other countries, though traffic density is very less here. But in case passenger trend in Bangladesh, from 38634,000 in 1999-00 to 66139,000 in 2011-12 shows an increment during these years.
52 | P a g e
Burma (Myanmar) Bangladesh Sri-Lanka Pakistan Japan Germany India Russia China 0
10000
20000
30000
China
Russia
India
Route Kilometre 62200
85245
63273
40000
50000
Germany Japan 34218
12217
60000
70000
Pakistan Sri-Lanka 7791
1200
80000
90000
Burma Banglade (Myanm sh ar) 2877 3336
Figure 4.12- No. of Passenger (thousand) (Luis S. Thompson, 2010) 4.11.4. Passenger Kilometres Passenger-kilometres is the distance travelled by passengers determined by multiplying the number of unlinked passenger trips by the average length of their trips. Burma (Myanmar) Bangladesh Sri-Lanka Pakistan Japan Germany India Russia China 0
100000 200000 300000 400000 500000 600000 700000 800000 900000
Burma German Sri- Banglad Japan Pakistan (Myanm y Lanka esh ar) Passenger KM (million) 583320 172217 769956 72554 309741 20618 4358 8788 3939 China
Russia
India
Figure 4.13- Passenger KM (million) (Luis S. Thompson, 2010)
From fig-4.13 the total passenger kilometres of rail transport of Bangladesh in 8788 million KM in 2011-12, which is very less compared to both south Asian countries as well as countries where rail transport is massively used. But considering Bangladesh the passenger KM was3940 million KM in 1999-00 and in 2011-12 it becomes 8788 million KM.
53 | P a g e
4.11.5. Average No. of KM Travel by A Passengers The average no of kilometres travelled by a passenger from table 4.10 shows the data of previous years and shows gradual increment from 45KM in 1969 to 132KM in 2012 for BR. IR shows almost same increment. But PR has very high increase of 391KM in 2012. Table 4.10 Average No. of KM Travel by a Passengers (Information Books of BR, IR and PR, 2012) Year 1969-70 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12
Bangladesh Railway 45.5 100.1 100.7 101.5 102 102.1 102.6 102.8 100 98.6 98.6 104.2 104.6 111.3 126.7 132.9
Indian Railway 48.6 76.6 85.6 90.1 94.6 100.45 106 106.3 111 115.35 117.1 118 121.1 124.7 127.9
Pakistan Railway 80.5 258.1 267.75 272.575 277.4 283.525 289.65 294.775 299.9 301.9 307.4 310.15 311.525 312.9 317.68 391.59
450 400 350
KM
300 250
bangladesh Railway
200
Indian Railway
150
Pakistan Railway
100 50
2011-12
2010-11
2009-10
2008-09
2007-08
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1969-70
0
Figure 4.14- Average No. of KM Travel by a Passenger (Information Books of BR, IR, and PR, 2012)
54 | P a g e
From figure 4.14, it shows that the average travel distance is quite higher in case of PR. Regarding IR and BR the average lead is quite same. It demonstrates that, people choose rail for higher distance in Pakistan where people choose railway travel mode for journey within 100-150km in Bangladesh and India. 4.11.6. Freight Traffic Burma (Myanmar) Bangladesh Sri-Lanka Pakistan Japan Germany India Russia China 0
500
1000
1500
2000
2500 Burma Germa Pakista Sri- Bangla China Russia India Japan (Myan ny n Lanka desh mar) Freight tonnes (millions) 2309.2 1281.3 727.7 274.6 36.2 2.7 1.5 2.2 1.8
Figure 4.15- Freight tonnes (millions) (Luis S. Thompson, 2010) From figure-4.15 Bangladesh having very less amount of freight transport of 2.2 million tonnes of freight as recorded in 2005. Compared to other leading countries this amount is very less, showing the less tendency of people in rail freight transport. 4.11.7. Rail Freight Kilometres A simple unit of freight is the tonne-kilometre, the service of moving one kilogram of payload a distance of one kilometre is used to measure freight services of railway. Fig-4.16 illustrates the comparison of freight transport of railway in predominant as well as developing countries including Bangladesh. The freight shear of Bangladesh is very less compared to other countries that it is difficult to identify from figure. Where China, shows the height shear of rail freight transport of 2379.7 billion tonne KM in 2007, Bangladesh represents only .86 billion tonne KM in 2007. Regarding the development of freight transport of Bangladesh since 1970 was 1.27 billion tonne KM, but in present this reduces to .582 billion tonne KM in 2011-12.
55 | P a g e
Burma (Myanmar) Bangladesh Sri-Lanka Pakistan Japan Germany India Russia China 0
500000
1000000
1500000
2000000
2500000 Burma German Sri- Banglad China Russia India Japan Pakistan (Myanm y Lanka esh ar) Freight tonne-KM (million) 19346121858100480993 88022 23166 1757 135 583 449
Figure 4.16- Freight tonne-KM (million) (Campos et al., 2006) 4.12. Conclusion From the comparative performance study of Bangladesh, India and Pakistan railway, it is understandable the position of operating performance of BR amongst the South-Asian countries. The vehicle kilometres per vehicle per day of BR 623 KM (2010-11) indicates the intensive use of running vehicles though the value is comparatively average compared to IR and PR. This also indicates the rapidity of use of vehicles in BR. The wagon kilometres per wagon day of BR in 19969-70 were 53.8 KM and in 2011-12 it is 167.2 KM, showing a positive sign of proper and efficient utilization of freight wagon though BR has shortage of wagons. 70% to total wagons are available for operation while other are either under repairmen or unfit for running. Average wagon load during run associated with various factors. Compared to IR, BR lagged behind and IR reaches its capacity 25.8 tonnes of wagon load while IR has wagon load during run is 44.7 tonnes. It indicates the requirement of improving wagon, the load carrying capacity of each wagon, rail track as well as well freight transport management of BR. The average net load per train carried by BR was 329 tonnes in 1969-70 and 804 tonnes in 2011-12, showing a positive sign of improvement which is comparable to IR. Technological improvement, as well as increase route capacity helps increasing net load per train. Increased capacity of freight trains indicates amplified route capacity in BR network. BR has net tonne kilometres per wagon day value of 1666 tonneKM with an increment factor of 3.97 since 1970. Especially a positive increment in this operation through year from 2008 to 2012 though there are some breakdowns in the trend line. The change of value of engine KM per day per engine in use is very little in case of BR 56 | P a g e
and in 2011-12 it becomes 526 KM and indicates the efficiency of operational performance. For increased operational performance and increase engine KM per day per engine in use the development of infrastructure, modernization of locomotives, improvement of signalling etc. are prerequisite factor. Engine KM per day per good’s engine in use indicates efficiency of freight operational performance of BR and the upward trend of BR represents an upgrade of fuel efficiency and infrastructure. In 2011-12 the total route kilometres of BR is 2877KM which is very small compared to India and Pakistan, showing the requiring a lot of improvement to increase route kilometres and track KM. Total number of passengers in BR is 66139,000 in 2011-12, with only improvement factor of 1.711 since 1970. BR has Passenger KM of 8788 million KM (2011-12), with an improvement factor of 2.23 since 1970. Bangladesh having very less amount of freight transport of 2.2 million tonnes of freight showing the less tendency of people in rail freight transport. Regarding the development of freight transport of Bangladesh since 1970 was 1.27 billion tonne KM, but in present this reduces to .582 billion tonne KM in 2011-12. These freight operation is related with freight tonne average lead which was 259KM in 1969 and 266KM in 2012 indicating hardly small increase. As a result total freight operation in BR are in disadvantage. Considering the revenue and cost, BR hardly matches the both. BR producing losses every year though Govt. support is allocated through PSO.
57 | P a g e
CHAPTER 5 ANALYSIS OF CONSTRAINTS OF BANGLADESH RAILWAY 5. 1.
Introduction
Bangladesh railway is bestowed with many problems. To mitigate these problems the first milestone is to identify the problems. Currently Bangladesh railway have faced a range of interrelated problems, which typically have comprised of: Severe financial deficits Growing operating subsidies Outdated pricing systems where charges are not related to cost Lack of an equitable fare structure Costs have been excessively high Low operating efficiency Poor management and technical efficiency Safety Low labour productivity Severely congested services Low service quality Services have failed to respond to need Deficiencies in the physical infrastructure Poor asset maintenance Inadequate funds to invest in transport infrastructure and/or services Low private sector participation in the transport sector. Geographical constrains 5. 2.
Vicious Circle Of Railway Underfunding
In many railways priority has often been given to administrative orthodoxy, technical innovation
and
competent operation which has resulted in a lack of awareness of market
realities. Over time, market shares for railways the world over have declined significantly and debt levels have grown. In this context, the mismatch between train operations and customer’s Page | 58
preferences for a wider range of services could no longer be ignored. In addition, governments, in developed as well as in developing countries, are beset by a host of other demands such as calls for better education, improved health services, efficient social safety nets, law and order, and national defence. Clearly, for governments, the overall bill to be paid each year for operating railways and the financial demands arising from other requirements essential to the proper functioning of society has become too high. This financial burden when combined with a growing dissatisfaction in the quality of railway services by customers with a wider range of transport options, has naturally led governments to reduce financial support for their railways. The resulting dilemma for railways of the region was referred to as the “vicious circle of railway underfunding” in ESCAP 1998 study. This in turn leads to a deterioration in the condition of track, bridges, signalling systems, and of locomotive and rolling-stock fleets, resulting in high rates of equipment failure and the imposition of increasingly speed restrictions on tracks and bridges, in order to arrest the decline in physical standards. The market response to falling standards of service is a withdrawal of business and reduced traffic volumes, leading successively to: (i) declining revenue; (ii) further widening of the financial deficit; and (iii) further reductions in the railway budget. In this way, the vicious circle is completed. 5. 3.
Severe Financial Deficits:
Constraints on charges imposed through Government regulation; persistent excess capacity; provision of guaranteed service levels at fixed prices or with ‘excess’ competition; provision of services at below marginal cost; failure to understand or identify costs; ineffectiveness in collecting revenues; low productivity; unduly high operating costs makes the financial deficit in railway industry. 5. 4.
Financial Position
Financial positions of Bangladesh Railway are dependent on a mix of overall financial performance, fare and tariff structures. Partly, due to its declining market share, increasing costs and regulated tariffs, Bangladesh Railway has been running at a deficit. 5. 5.
Traditional Prising System
Bangladesh Railway has been losing concern for many years. In finance year 2005, the working ratio i.e. operating expenses divided by total revenues was 1.36 and the operating ratio i.e. operating expenses divided by operating revenues was 1.46 excluding provision of depreciation and Public Service Obligation (PSO) payments and welfare grants. Both these ratios show that Page | 59
operating revenues were not sufficient to cover operating expenses. The government has been subsidising the BR through deficit financing to make up the losses. 9000000 8000000 7000000
'000 TK.
6000000 PSO 5000000
Welfare Grant
4000000
Operating Revevue
3000000
Total Revenue
2000000
Operating Expenses
1000000
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
0
Figure 5.1- Revenues Structure of BR (BR Information Book, 2007) It is told that the government under the name of PSO has been enforcing railway operation without appropriate compensation since last decades. The tariff of Bangladesh had been kept without revision since 1991, which may be contributed the existing financial situations and at the same time operational performance is also required the earning-expenditure gap. It is seen from available information, in 1970’s and 1980’s, the tariff had been revised many times. After that, it has been kept unchanged for more than 15 years and in 2010 there were some changes in fare. However, all above phenomenon, which is operational efficiency, PSO expenditure and tariff structure led to loss-making rail service in Bangladesh. 5. 6.
Recent Increment of Costs Have Been Excessively High
Expenditure of BR had increased at 6.7% per year, while tariff revenue showed an increase of 3.8% only annually. Cement, fertiliser and raw jute which were carried by rail decreased in many folds. As a result, the earning-expenditure gap increased. The cultivation of jute and production of jute products has been decreasing in the country over the last decades. Also import of cement had been replaced with domestic production since late nineties. As a rule, the deteriorating trend of revenue earning had not caught up with the expenditures necessary for train operations.
Page | 60
9000000 8000000 7000000
'000 TK.
6000000 5000000 Operating Revenue
4000000
Operating Expenses 3000000 2000000 1000000 0 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 200598 99 00 01 02 03 04 05 06
Figure 5.2- Revenue and Expenditure Structure of BR (BR Information Book, 2007) Figure 5.2- shows the earning-expenditures scenarios of Bangladesh Railway for almost a decade. Bangladesh Railway, however, shall have to increase its operational efficiency to overcome the existing gap between earning – expenditure. However, fig-5.2 shows that the earningexpenditure gap. The aims of the PSO is to compensate unprofitable rail services that were judged socially necessary and are operated at the request of the government that are mainly local passenger trains operating on the branch lines. 5. 7.
Low Operating Efficiency
Bangladesh Railway is responsible both for railways infrastructure and train operation. The infrastructures include development and maintenance of track, bridge, ferry service, signalling, telecommunication system, other civil engineering assets and line capacity requirements. As such for efficient operation of the railway, coordinated management decisions in respect of all BR’s assets, fixed as well as rolling stocks, would be essential. Availability of well-maintained fixed assets are pre-requisite for punctual operation of rolling stocks. On the other hand, the quality, quantity and standard of maintenance of rolling stocks, namely, locomotives, wagons and coaches are equally important to maintain punctuality. However, the attractiveness of a train service depends on a number of factors, which include timing the train at origin and destination points, speed, frequency of services, cleanness of coaches, and ticketing system. It is observed about 19% of the coaches are either under repair or awaiting repairs daily out of the total number of coaches on line. Similarly, on average about 29% Broad Gauge (BG) wagons and 16% Metre Gauge (MG) wagons are either under repair or awaiting repairs daily Page | 61
out of the total number of wagons on line. With regards to locomotives, on average about 25% of BG locomotives and 15% of MG locomotives are under repair or awaiting repairs daily of the total number of locomotives on line. The available information shows that the repairable number of coaches, wagons and locomotives are increasing every year. The causes of low availability of rolling stocks compared to total stock are mostly inadequate maintenance and aging of the stock. Low availability of assets compared to total stock indicates that quantity is sufficient but actual availability are very low or lower than normal. Adequate maintenance of rolling stock and sufficient maintenance facilities for assets are the two key factors, which affect business operations of Bangladesh Railway an enterprise. 5. 8.
Speed Limitations
Differential speed boundaries, indicated by signs on track side, are common in Bangladesh and are currently permitted for permanent and temporary speed restriction. Due to gradients, slow orders, passenger stations, track configuration and maintenance level, it is quite usual to indicate speed restrictions. The lack of rehabilitation and regular maintenance causes derailments, mostly in the case of goods trains, and imposes speed restrictions based on shortage of ballast cushion, density and unserviceable sleeper, lack of Permanent way fittings, and bridge conditions, which indicates overall track condition. In Bangladesh Railway, there are two broader groups of speed restriction, which are 11-50kph and 45
MEG11
1953-56
15
15
MEG9
1961-63
36
36
MEM14 1969-70
21
21
MEE5
1973-74
MEM14
1978
11
11
MHZ5
1980
12
12
MEH14
1981
17
17
MHZ8
1983
11
11
MEG15
1988
MEL15
1995-97
11
MED14
1996
10
10
MEI15
1999,
1
8
19
2005
1
Total
19
19
16
1
29
16
10
10
21
16
28
23
19
21
0
51
208
1
Page | 74
Bangladesh Railway considers that the locomotives in excess of 30 years old are beyond their accountancy and due for replacement. According to this time limit, about 91 locomotives have already crossed that limits and another 23 are approaching this stage. However, the utilisation of locomotives of greater concern than their age. The aging fleet does account for the problems of low availability and the lack of reliability. It is also more difficult, and often very expensive, to obtain spare parts for such old designs, which can increase lead time of locomotive maintenance. All these uses contribute to shortage of locomotives on line. The details of MG locomotive number, types and age profile are presented in the Table 5.5.
5.17.2. Broad gauge Locomotives A total of 77 BG locomotives are available on line in West Zone of Bangladesh Railway. Of which, nine BHZ 9 class with 500 GHP from Hungary are not used for passenger and freight trains but used for shunting purposes. Most of the locomotives are relatively of higher power with 2150HP-2600HP compared to MG locos, which are on average around 1500HP. Only 37, out of total 77 BG locomotives are less than 30 years old. The detail of BG locomotive number, types and age profile are presented in the Table 5.6. Table 5.6: BG Locomotive Types and Age Profiles (BR Master Plan, 2009) Type
Year
Age Profiles 0-5
BEA
Total
6-
11-
16-
21-
26-
31-
36-
41-
10
15
20
25
30
35
40
45
1966
>45
17
17
20 BEM20
1970
14
14
BHZ5
1980
9
9
BEB12
1980
12
12
BEH20
1981
12
BED24 2001&2004
13
Total
13
12 13
0
0
0
12
21
0
14
17
0
77
Page | 75
000 of Traffic Unit per loco+ MU/MU Factor
140000 120000 100000 80000 60000 40000 20000 0 Phillippines
Bangladesh
Thailand
India
China
Japan
Figure 5.6- Loco productivity (BR Master Plan, 2009) Locomotives are expensive items; as such it is only through increased productivity that the unit cost of a loco could be reduced. It is argued that a well-managed railway should have above 90 percent of its diesel locomotive fleet available for use on any given day. The availability for uses of MG locos is about 85 percent and for BG locos, it is 75 percent in Bangladesh. In addition, the speed is another factor for locos productivity, which depends on track condition. However, a-mix of factors contributes to reduce utilisation of locos in Bangladesh. 5.17.3. Rolling Stock (Coaches) The passenger coaches are the second area of critical importance in the context of providing railway services. The useful life of railway carriages can be extended up to forty years and this is a significant factor when addressing the issue of providing railway services. 250 200 150 Number of MG Coaches
100
Number of BG Coaches 50
35>
31-35
26-30
21-25
16-20
11~15
6~10
0-5
0
Age Interval Year
Figure 5.7 Age profile of BG and MG Coaches (BR Master Plan, 2009) Page | 76
Some of the carriages are still being operated, which are over thirty years old and most of the carriages have been in service since the early 1980s. The older carriages of Bangladesh Railway are, however, being phased out and replaced by modern units. The age profiles of MG and BG coaches are presented in figure 5. and detail is given in Annexure A.8 and A.9. An attempt was made to compare the productivity of Bangladesh Railway coaches with selected Asian countries. It is found from fig 5.8 that the productivity of coaches is less in Bangladesh compared to selected Asian countries. The coaches appear to be underutilised in Bangladesh. About 26 percent coaches of MG lines are over 30 years old and another 24 percent coaches are approaching that age. For BG line, 24 percent coaches are already over 30 years old and another 54 percent coaches are within the age range of 26-30 years. Moreover, maintenance of coaches is another important factor which contributes to productivity. The availability of MG coaches is about 81 percent, while it is 80 percent for BG coaches. 12000
000 of Pkm per Coach+MU
10000 8000 6000 4000 2000 0 Bangladesh
Phillippines
Thailand
Japan
India
Figure 5.8- Coach Productivity (World Bank’s Database) 5.17.4. Metre Gauge And Broad Gauge Wagons The details of age profiles are shown in the following Table 5.7 and Table 5.8. It is found that most of the wagons are above 20 years old and after 1990, no BG wagons were procured. In addition, it is tried to segregate the 4-wheel and 8-wheel wagons of BG and MG system. Based on the age profile, the wagons are segregated further as broader age profile (0-45 years), because after 45 years BR declares the wagons beyond their economic age. Table 5.7: Age Profiles of Wagons (BR Master Plan, 2009) Page | 77
Number of Wagons
Metre
Age Profiles (Years) 0-5
6-10
11-15 16-20 21-25 26-
31-
30
35
100
100
80
61
1468
210
0
0
0
0
33
987
Total 36-40 41-45 46+
1097 2784
687
700
7270
554
259
1930
Gauge Broad
0
97
Gauge Table 5.8: Broader Age Profiles of Wagons (BR Master Plan, 2009) Age Profile (Years)
Number of MG Carriages
Number of BG Carriages
0-40
4900
1117
0-45
6587
1671
All age
7270
1930
It appears from fig 5.9 that wagon productivity is very low in Bangladesh. The availability of MG wagon for use is 84 percent and in case of BG wagon, it is only 71 percent. It was found from the available data that there are significant numbers of extremely old wagons in the freight fleet of Bangladesh Railway. The old age of wagons is a matter of great concern to Bangladesh Railway, with regards to productivity, which is very low in Bangladesh compared to other countries in the region.
000 of Tkm per wagon
2500
2000
1500
1000
500
0 Phillippines
Bangladesh
Thailand
India
Japan
Figure 5.9- Wagon productivity (World Bank’s Database)
Page | 78
5.17.5. Workshops and Loco Shed Bangladesh railway has own workshops for maintenance of its rolling stocks. The workshops are based in Dhaka, Pahartali, Parbatipur and Saidpur. The different types of works relating to rolling stock are furnished in the various workshops. Saidpur Railway Workshops is the largest workshop of BR, which is well equipped for undertaking heavy repairs of carriages and wagons of both the gauges. Heavy repairs and major overhauling works for MG and BG locomotives are carried out at Parbatipur Central Locomotive and Diesel Workshops. Repairs of locomotives are also carried out in the Dhaka Diesel Workshop. Pahartali Workshops are BR’s main establishments for overhaul of Metre Gauge locomotives, carriages and wagons on the Eastern Zone. All the buildings and facilities of the workshop are aging fast. Most of the roofs and sidewalls of the shops have deteriorated and got damaged. In this regards, the working environment is not efficient and production friendly. As a result, working conditions in the shops are getting worse, and this is impacting work efficiency. The renovation work of these buildings/sheds, facilities/utilities need to be undertaken on an urgent basis. 5. 1.
The Problems Arising From The State Ownership Of Railways
The provision of railway infrastructure facilities and services by state-owned enterprises, with restricted entry to the market, was widely believed to facilitate the achievement of multiple government objectives, by increasing government influence in policy implementation. For example, it had been widely assumed that public monopolies required price and service regulation to protect the public interest. In addition, there was often an obligation placed on the state-owned railway companies to meet any demand at such regulated prices and changes to route networks and services usually required government approval. In general, governments have often attempted to secure, in the railway sector, objectives in one or more of the following areas, often simultaneously:
to maintain low and affordable fares
to achieve cost and price minimization
to fulfil public service obligations particularly to poor or deprived areas
to co-ordinate services and integrate route systems
to achieve through ticketing between alternative routes, operators, and modes of transport
to co-ordinate the scheduling of railway services;
to achieve multi-modal co-ordination
to provide centralized service and fare information systems; Page | 79
to maximize safety in railway operations
to protect the environment by diverting passengers from road transport
To improve the quality of railway service.
State enterprises are not necessarily technically inefficient. For example, in many ways the performance of Chinese Railways matches the best in the world. However, the problem is that as long as they have recourse to deficit financing to maintain supply, railways have little incentive to be cost-effective or to respond flexibly to changes in user demand. Interference, from the government on matters relating to railway day-to-day operations, has often led to the railway enterprises having poorly defined goals and relatively passive management unlikely to respond to changing market conditions. This has the following important consequences:
Assets have not been adequately maintained - attempts to offer mobility to low-
income segments of society by keeping rail fares at uneconomically low levels have often led to the physical deterioration of the rolling stock due to a lack of funds for new investment
Service has failed to respond to need - protected monopolies usually fail to respond
to new demands for expanded services or improved quality
Transport costs have been too high – in Argentina, the privatization of the railways
demonstrated that labour costs were more than double those necessary for the maintenance of a financially viable system.
Misguided Intervention – whereby Governments, for example, have often imposed
unsustainable fare and service conditions, overestimating what can be accommodated through internal cross subsidy.
Excessive Operating Costs – often arising from a combination of over-staffing,
operational inefficiency, and poorly targeted capital investment. In addition, railways have often had to bear track and infrastructure costs which have not been borne by operators in other competing transport modes especially road transport operators.
Lack of Dynamism – for example, strict entry regulation excludes or limits the
possibility of providing innovative forms of lower cost rail transport which meets the transport demands of the poorer groups or higher quality alternatives meeting the needs of those willing to pay.
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5. 2.
Geographical Constraints
Rail transportation is very much attractive for long distance uninterrupted route network. But Bangladesh, a small county of only 155598 square kilometres, is a land of rivers. Hundreds of rivers are flowing over the territory. Before constructing JMB, the underdeveloped northern part of the country was truncated from eastern part i.e. from the capital city of the country. Recently the through traffic has been plying over JMB although JMB Railway Project has not yet been completed for BG trains. Presently there is no direct rail-route connection of the city to the Southern part of the country. Transhipments are also involved at riverine points. Besides, during rainy season direct route links are often disrupted in many points.
5. 3.
Conclusion
Like other countries and railway industry, BR also proves to be a losing industry along with lots of problems surrounds with it. To understand and identify costs, BR shows poor record as well as ineffectiveness in collecting revenues. An excessively high operating cost makes the financial deficit accelerate in this industry. Operational efficiency, PSO expenditure and tariff structure led to loss-making rail service in Bangladesh. Regarding railway industry in Bangladesh, the prices are not related to marginal costs. Also costs are not properly identified or measured. Inadequate financial and management accounting systems causes great loss. Expenditure of BR had increased at 6.7% per year, while tariff revenue showed an increase of 3.8% only annually. Moreover through PSO, GOB increase expenditure leads to unprofitable rail services. Adequate maintenance of rolling stock and sufficient maintenance facilities for assets are the two key factors, which affect business operations of Bangladesh Railway. A staggering 47% of the network has speed restrictions of less than 50kph. Hence the rail infrastructure in Bangladesh is severely hindering to desirable operational performance. BR covers a lot in telecommunication sector as well as signalling system, but to cover to total network as well as all Bangladesh, BR have to make plan for future. Weight restriction has drastically reduced the line capacity. The present estimated line capacity is 20 trains per day in blocks like Jamuna Multipurpose Bridge (JMB), which can at best be enhanced to 32trains/day by splitting long block sections. The capital cost of the rail increase because of requirement of heavier rail to accommodate higher capacity. Upgrading of track is a prominent issue as to increase demand. The productivity and operational performance of BR has not been reached up to the mark in the recent years as to the growth rate in 1980s and 1990s. Operational & maintenance as well as overhead costs are increasing day by day. Appropriate along with efficient management of finance and number of employees needs to be rational. There are Page | 81
growing tendency for privatisation of maintenance labour worldwide to reduce the overall railway costs and to ensure better performance in railway track maintenance. The study indicated that 1009 km of tracks need urgent rehabilitation and 1,647 km of tracks are in good condition (Md. Saidur Rahman, 2006), which need only proper routine maintenance. Most of the railway bridges were built more than 100 years ago and they are still continuing. The permitted speed on most of the bridges is limited to 30-50 km/hour. These bridges need to be replaced or rehabilitated because of severe damage of abutment, pier, and girder, and crack and or corrosion of steel structures. Locomotives, rolling stock requires modernization and repair. Bangladesh Railway Master-plan defines some constrains in railway. Line capacity on DhakaBhairab and Lakhsam-Chinkiastan limits container trains to 2 per day each way only where about 40% of passenger and freight have been transported through this route. Distance of freight transport to outside countries from sea-port is relatively short compared to international standards and relatively short haul distances make BR more profitable if it can be utilized appropriately. No rail connection to Mongla port makes a disadvantage, though a plan has already in action to connect Mongla port to other part of the country. Lack of infrastructure facilities at transfer points, lack of network and track capacity, relatively low value of time, poor quality rolling stock, Low fares – very unprofitable, poor infrastructure, poor connectivity to transhipments are some noted problems.
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CHAPTER 7 HIGH SPEED RAIL High speed rail (HSR), the evolution of railway networks and services has been quite different across the globe. However, the need for highly efficient transportation, besides road and air traffic, cuts across all industrialized countries where passenger and cargo traffic must move efficiently in crowded and growing mega-regions. The similarities among areas like Western Europe, Japan or California are much greater than their differences. Since HSR has become reality in Europe, Japan, Korea and Taiwan, it has proven to be a success story and the development in China of the high speed Passenger Dedicated Lines (PDL) program will contribute significantly to world as well as Bangladesh Railway’ future mobility. High Speed Railways (HSR) is currently considered one of the most significant technological breakthroughs in passenger transportation. At the beginning of 2006 there were about 9,000 kilometres of new high speed lines in operation around the world and, in total (that is, including upgraded conventional tracks), more than 20,000 kilometres of the rail network worldwide was devoted to provide high speed services to passengers willing to pay for a lower travel time and a quality improvement in rail transport (J. Campos et al., 2006). Just in Japan, were the concept of bullet trains was born in 1964, more than 4 billion trips have been performed during the last 40 years, whereas in Europe traffic figures have been steadily growing since 1981 by an annual factor of 2.6, recently reaching an accumulated total of 1.5 billion. Nowadays, there are high speed rail services in more than 15 countries, and the network is still growing at a very fast pace in many more. It is expected to reach 25,000 kilometres of new lines by 2020 (UIC, 2005a). However, building, maintaining and operating HSR lines is expensive, involves a significant amount of sunk costs and may substantially compromise both the transport policy of a country and the development of its transport sector for decades. For these reasons it deserves a closer look, well beyond the technological hype and the successful demand figures The introduction of HSR leads to a number of socioeconomic advantages, such as increased competitiveness by linking strongly developed economic regions. The expansion and strengthening of the existing railway industry, in both infrastructure and rolling stock, creates a leading global sector which boosts technology as well as employment. With a continuous
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increase of passenger and cargo traffic, this electric-powered railway transportation solution provides a sustainable and environmentally friendly way to meet the transportation needs of tomorrow by reducing the amounts of carbon dioxide emitted by automobiles and aircraft. About 20% of the greenhouse gases emitted in the European Region in the 1990’s were attributable to automobile traffic. That percentage is perhaps doubled in the dense areas of the United States, such as California, where, according to the California Air Resource Board, transportation accounts for more than 40% of all Green House Gas (GHG) emissions. It therefore becomes important to focus on railway transportation, particularly high speed rail. Since most of the previous empirical assessments have been based on individual country cases,the approach will try to adopt a comparative perspective. The assembled database comprising all existing HSR projects around the world at the beginning of 2006. It includes information about the technical characteristics and building costs of all projects even those still at the planned or construction stage, when available plus detailed information regarding operating and maintenance costs of infrastructure and services for the lines already in operation. A special section devoted to the external costs of HSR has been included, as well as data regarding traffic, capacity and tariffs on selected corridors. The study also comprises the possibility, potential and viability of HSR in Bangladesh. 7.1.
Infrastructure Of High Speed Railway Services
For many years it was customary in the rail industry to consider high speed just as a technical concept, related to the maximum speed that could be achieved by trains running on particular track segments. In Europe, Council Directive 96/48 specifically established that high speed infrastructure comprised three different types of lines:
Specially built high speed lines equipped for speeds generally equal to or greater than 250 km/h,
Specially upgraded conventional lines, equipped for speeds of the order of 200 km/h, and
Specially upgraded conventional lines, which have special features as a result of topographical, relief or town-planning constraints, on which the speed must be adapted to each case.
In theory these technical definitions are broad enough to encompass the entire infrastructure capable of providing high speed services. In practice, however, speed has not always been the 114 | P a g e
best indicator, commercial speed in many services is often limited due to, for example, proximity to densely urbanized areas for ease the impact of noise and minimize the risk of accidents, or the existence of viaducts or tunnels where speed must be reduced to 160-180 km/h for safety reasons. Although HSR share the same basic engineering principles with conventional railways – both are based on the fact that rails provide a very smooth and hard surface on which the wheels of the trains may roll with a minimum of friction and energy consumption – they also have technical differences. For example, from an operational point of view, their signalling systems are completely different: whereas traffic on conventional tracks is still controlled by external (electronic) signals together with automated signalling systems, the communication between a running HSR train and the different blocks of tracks is usually fully in-cab integrated, which removes the need for drivers to see lineside signals. Similarly, the electrification differ, since most new high speed lines require at least 25,000 volts to achieve enough power, whereas conventional lines may operate at lower voltages. Additional technical dissimilarities exist regarding the characteristics of the rolling stock and the exploitation of services.
Figure 7.1- HSR Models According To Relationship With Conventional Services (J. Campos et al., 2006) It is important that more than speed, the relationship of HSR with existing conventional services and the way in which it is organized the use of infrastructure what plays a more
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relevant role in the economic definition of high speed services. Four different exploitation models can be identified:
The exclusive exploitation model is characterized by a complete separation between
high speed and conventional services, each one with its own infrastructure. This was the model adopted by the Japanese Shinkansen since 1964, mostly due to the fact that the conventional lines built in narrow gauge, 1.67m had reached their capacity limits and it was decided that the new high speed lines would be designed and built in standard gauge (1.435 m). One of the major advantages of this model is that market organization of both HSR and conventional services are fully independent, something that later proved to be a valuable asset, when the public operator went bankrupt and integrated rail services and infrastructures had to be privatized.
In the mixed high speed model high speed trains run either on specifically built new
lines or on upgraded segments of conventional lines. This corresponds to the French model, whose TGV (Train à Grande Vitesse) have been operating since 1981, mostly on new tracks, but also on re-electrified tracks of conventional lines in areas where the duplication was impractical. This reduces building costs, which is on the main advantages of this model.
The mixed conventional model, where some conventional trains run on high speed
lines, has been adopted by Spain’s AVE. As in Japan, most of the Spanish conventional network was built in narrow gauge, whereas the rest of the European network used the standard gauge. To facilitate the interoperability of international services, a specific adaptive technology for rolling stock had been already developed, the TALGO trains, which are also capable of using at higher than normal speed the specific HSR infrastructure. The main advantage of this model is the saving of rolling stock acquisition and maintenance costs and the flexibility for providing ‘intermediate high speed services’ on certain routes.
Finally, the fully mixed model allows for the maximum flexibility, since this is the case
where both high speed and conventional services can run on each type of infrastructure. This is the case of Germany intercity trains (ICE) and the Rome-Florence line in Italy, where high speed trains occasionally use upgraded conventional lines, and freight services use the spare capacity of high speed lines during the night. The reasons why each of these models determines in a different way the provision of HSR services depends on the traffic management restrictions, that can be better understood with the help of Figure 7.2.
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Figure 7.2- Time Slots In Railways And The Provision Of HSR Services (J. Campos et al., 2006) On the vertical axis we have represented the distance (250 km) between origin (O) and destination (D) rail stations, whereas the horizontal axis reflects the travel time (in hours). The inclined dotted lines represent potential time slots for (non-stop) trains running from O to D. Note that the slope of the slots and the horizontal separation between each pair of them depends on the average speed authorized for the O-D line. However, the actual usage of these slots is mainly determined by the type of service provided to passengers. For example, high speed services (at 250 km/h) cover the distance between O and D in just one hour, whereas a conventional train would need 2.5 hours. The exclusive exploitation and the mixed high speed models, for example, allow a more intensive usage of HSR infrastructure, whereas the other models must take into account that slower trains occupy a larger number of slots during more time and reduce the possibilities for providing HSR services. In Figure 7.2, at least four high speed trains are precluded by the operation of a single conventional train. Since trains of significantly different speeds cause massive decreases of line capacity, mixed-traffic lines are usually reserved for high speed passenger trains during the daytime, while freight trains go at night. In some cases, night-time high speed trains are even diverted to lower speed lines in favour of freight traffic. Since choosing a particular exploitation model is a decision affected by the comparison of the costs of building new infrastructure versus the costs of upgrading and maintaining the
117 | P a g e
conventional network, the definition of HSR immediately becomes not only a technical question but also a economic one. Three additional factors contribute to the explanation of HSR in economic terms:
The first one is the specificity of the rolling stock, whose technical characteristics must
be adapted to the special features of high speed. HSR trainsets are designed to run without locomotives, with minimal oscillations even on curves with elevated radial velocity, and without the need of tilting to compensate for the centrifugal push. The acquisition, operating and maintenance costs of this rolling stock represents a huge long-run investment for the companies, and critically determines the provision of high speed services.
The second one is the public support enjoyed by most HSR undertakings, particularly
in Europe where national governments have already compromised huge amounts of funds in the development of their high speed network during the next decades. At the supranational level (European Commission, 2001) there exists an explicit strategy for “revitalizing the railways” as a “means for shifting the balance between modes of transport against the current dominance of the road”. This is justified in terms of the lower external costs of rail transport (particularly, HSR) when compared to road transport with respect to congestion, safety and pollution.
The third reason lies on the demand side for HSR services. Railways operators in many
countries have widely acknowledged their high divisions as one of the key factor in the survival of their passenger rail services. In fact, HSR has been started to be publicized – particularly in France or Spain – as a different mode of transport, as a system with its own right that encompasses both a dedicated infrastructure with a more and more specialized and technologically advanced rolling stock. It brings with it an improvement over traditional rail transport (clock-face timetables, sophisticated information and reservation systems, catering, on board and station information technologies services) and, in general, an overall increase in the value-added to the customer. All these elements – infrastructure building costs, operating and maintenance costs, external costs and demand – will be analysed in detail in the remaining sections of this paper. In order to provide some figures for them we will make use of the database comprising all HSR existing in the world at the beginning of 2006.
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7.2.
The Costs of Building High Speed Rail (HSR) Infrastructure
Building new HSR infrastructure requires a specific design aimed at the elimination of all those technical constrictions that may limit the commercial speed below 250-300 km/h. These basically include roadway level crossings, frequent stops or sharp curves unfitted for higher speeds but, in some cases, new signalling mechanisms and more powerful electrification systems may be needed, as well as junctions and exclusive track ways in order not to share the right-of-way with freight or slower passenger trains, when the infrastructure is jointly exploited. These common design features do not imply that all HSR projects are similarly built. According to UIC (2005b), building new HSR infrastructure involves three major types of costs.
Planning and land costs, including feasibility studies consists of both technical and
economic, technical design, land acquisition and others such as legal and administrative fees, licenses, permits, etc. These costs may be substantial in some projects particularly, when costly land expropriations are needed, but they often represent a ruined component of between 5-10% in the total investment amount.
Infrastructure building costs include all those costs related to terrain preparation and
platform building. Its amount varies widely across projects depending on the characteristics of the terrain, but usually represent between 10-25% of the total investment in new rail infrastructure. In some cases, the need of singular solutions such as viaducts, bridges or tunnels for geographic obstacles may easily double this amount up to 40%, in more technically difficult projects.
50 45 40 35 30 25 20 15 10 5 0
Netherlands
Austria
Taiwan
Spain
Korea
Japan
Italy
Germany
France
China
Infrastructure Cost per KM (in Euro million, 2005)
Belgium
Euro million
Infrastructure Cost per KM (in Euro million, 2005)
Figure 7.3- Average cost per kilometre of New HSR Infrastructure (J. Campos et al., 2006) 119 | P a g e
Superstructure costs include rail specific elements such as guideways (tracks) plus the
sidings along the line, signalling systems, catenary and electrification mechanisms, communications and safety installations, etc. Individually considered, each of these elements usually represents between 5-10% of total investment. Figure 7.3, which is based in the data from Annexure A.13, summarizes the average cost per kilometre of building HSR infrastructure found in our database. The values are expressed in euro millions (2005) and include the infrastructure and superstructure costs, but not the planning and land costs. Overall, the construction cost per kilometre varies between 6 and 45 million with an average value of 17.5 million. When the analysis is restricted to projects in operation the range varies between 9-39 million with an average of 18.0 million. With the exception of China, building HSR in Asia seems more expensive than in Europe, according to the data from Japan, Taiwan and South Korea, although the costs of these two latter countries include some items corresponding to upgrading conventional tracks. In Europe, there are two groups of countries: France and Spain have slightly lower building costs than Germany, Italy and Belgium. This is explained not only by the similar geography and existence of the less populated areas outside the major urban centres, but also by construction procedures. In France, for example, the cost of construction is minimized by adopting steeper grades rather than building tunnels and viaducts. Because the HSR lines are dedicated to passengers as it follows the exclusive exploitation model of Figure 7.1, grades of 3.5%, rather than the previous maximum of 1-1.5% for mixed traffic, are used. Although more expensive land is acquired in order to build straighter lines, this is compensated by a reduction in line construction as well as operating and maintenance costs. In the other European countries high speed rail is more expensive because it has been built over more densely populated areas, without those economies of space. The same reasoning can be applied to mountainous Japan, where most of the costs of high speed rail extension involve blasting tunnels through mountains, not core technology or right of way itself. Finally, with respect to the projects currently under construction, it can be observed that, in most cases, they are in line with the building costs of projects in operation. It is interesting to note that there is no evidence of economies of experience, particularly in Japan and France, the countries with a longer history of HSR projects. In Japan, the cost per kilometre excluding land costs in the Tokyo-Osaka Shinkansen was relatively low like €5.4 million as per 2005 values, but in all the projects carried out during the following years this figure was tripled or quadrupled. In France, each 120 | P a g e
kilometre built for the TGV Sud-Est between Paris and Lyon, inaugurated in 1981, required an investment of €4.7 million in construction costs, whereas the cost per kilometre of the TGV Méditerranée, inaugurated in 2001 was €12.9 million. These differences – due to intrinsic characteristics of each project. HSL Zuid (Netherlands) and the Channel Tunnel rail link – have construction costs per km in the range of €50-70 million. 7.3.
The Costs of Operating HSR Services
Once the infrastructure has been built, the operation of HSR services involves two types of costs: (i) those related to the exploitation and maintenance of the infrastructure itself, and (ii) those related to the provision of transport services using that infrastructure. In Europe, Council Directive set out the objective of unbundling infrastructure from operations by either full separation or, at least, the creation of different organizations or units (with separate accounts) within a holding company. Outside Europe, many countries have still opted for the full vertical integration, where all the HSR operating costs are controlled and managed by a single entity. 7.3.1. Infrastructure Operating Costs This category includes the costs of the labour, energy and other material consumed by the maintenance and day-to-day operations of the guideways, terminals, stations, energy supplying and signalling systems, as well as traffic management and safety systems. Some of these costs are fixed, and depend on operations routinely performed in accordance to technical and safety standards. In other cases, as in the maintenance of tracks, the cost is affected by the traffic intensity; similarly, the cost of maintaining electric traction installations and the catenary depends on the number of trains running on the infrastructure. According to the UIC statistics, the proportions of the cost of labour in the maintenance costs are 55% for maintenance of electric traction installations, 45% for maintenance of tracks and 50% for maintenance of equipment. The database provides more detailed information for five European countries (Belgium, France, Italy, The Netherlands and Spain), where it is possible to disaggregate the infrastructure maintenance costs for a new HSR line into five categories:
maintenance of tracks
electrification costs
signalling costs
telecommunications
other costs 121 | P a g e
A comparison can be made of the values with the corresponding values for a conventional network line, as described in Annexure A.14 and summarized in figure 7.4. To facilitate comparisons across countries the figures are expressed in euro per kilometre for single track, as per valued in 2002 and have been adjusted by traffic intensity in terms of train-km per day. Euro per KM of single track
80000 70000 60000 50000 40000 30000 20000 10000 0 HS
CN
HS
Belgium
CN France
HS
CN
HS
Netherlands
Km of single track
Maintenance of track
Electrification
Tele-communications
Other costs
Total maintenance cost
CN Spain
Signalling
Figure7.4- Comparison of Maintenance Costs of New Lines (HS= High Speed Network, CN= Conventional Network) (J. Campos et al., 2006) It is interesting to observe that, according to database, in Belgium, France and Italy the maintenance costs of HSR infrastructure is 15-25% below the corresponding costs of a conventional line. This is a common feature observed in many projects and is due to the fact that the traffic intensity on high speed lines is generally lower as compared to conventional ones where freight trains also cause a significant damage to infrastructure. In Netherlands, the comparison works the other way, mostly due to greater electrification and signalling costs in the high speed network. The maintenance cost per kilometre of HSR infrastructure is around €30,000 in Belgium, France and Spain, when in Italy is significantly lower, whereas in the Netherlands is around€70,000. In general, in all cases the maintenance of infrastructure and tracks represent between 40-65% of total maintenance costs both in high speed and conventional network, whereas the signalling costs vary between 10-35% in HSR, and between 15-45% in conventional lines. The relative weight of the electrification costs in almost the same in both networks.
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7.3.2. Services Operating Costs The operating costs of HSR services can be divided into four main categories:
Shunting
Train operations
Maintenance of rolling stock and equipment, energy, and sales
Administration.
This administration cost item varies across rail operators depending on their expected traffic level, since it mainly includes the labour costs for ticket sales and for providing information at the railroad stations. The remaining three components vary widely across projects depending on the specific technology used by the trains. Table 7.1. HSR technology in Europe: types of train (UIC, 2006 HSR Database) Country Type of train Year of Capacity Capacity Maximum first (seats) (seats-km speed (km/h) service per year) TGV Réseau 1992 377 186.615 300 / 320 France TGV DUPLEX 1997 510 267.750 300 / 320 THALYS 1996 377 167.765 300 / 320 ICE-1 1990 627 313.500 280 Germany ICE-2 1996 368 147.200 280 ICE-3 2001 415 174.300 330 ICE 3 Polyc. 2001 404 169.680 330 ICE/T 1999 357 128.520 230 ETR 500 1996 590 212.400 300 Italy ETR 480 1997 480 138.240 250 AVE 1992 329 154.630 300 Spain ALARIS 1998 161 44.275 200 Apart from the type of train, shunting or track-switching costs depend on the distance between the yard and the stations as well as the average period of time trainsets stay at the depot. The remaining train operations include train servicing, driving, operations and safety and their costs consist almost exclusively of labour costs. Their amount varies across countries depending on the operational procedures used by the rail operator. The energy costs can be estimated from the average consumption of energy required per kilometre, which is a technical characteristic of each train set. According to Levinson et al.
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(1997) energy consumption per passenger varies with the speed and increases rapidly when the speed is over 300 km/h, however the price of energy at is source and the way in which it is billed to the operator may be relevant. In the database the energy consumption of HSR is 5% lower in France than in Germany, not only because it is cheaper as nuclear source is used, but also because it is directly acquired by the rail operator instead of being included in the infrastructure standard, as in other countries. When the rail operator can negotiate its energy contracts it finds more incentives to achieve higher energy savings. 7.3.3. External Costs Of HSR The main negative external effects of the rail transport system are atmospheric pollution, noise and accidents. Unfortunately, the information on these items is very fragmented. For this reason this section will rely on other sources in order to briefly discuss what are the most relevant stylized facts regarding the external costs of HSR. 7.3.3.1. Environmental Pollution With regard to pollution, the quantity of polluting gases generated to power a high speed train for a given trip depends on the amount of energy consumed and the air pollution from the electricity plant generated to produce it. Due to the potentially high diversity of primary energy sources used in each country, it appears to be relatively complex to make comparisons about air pollution emissions by HSR (J. Campos et al., 2006). It is generally acknowledged, however, that in comparison with competing alternatives, such as the private car or the airplane, HSR is a much less pollutant transport mode. According to INFRAS/IWW (2000) the primary energy consumed by high speed railways in litres of petrol per 100 passengers-km was 2.5 whereas by car and plane were 6 and 7 simultaneously. Similarly, the amount of carbon dioxide emissions per 100 passengers-km was 17 tonnes in the case of airplanes and 14 tonnes for private cars, due to the use of derivatives of crude oil. For HSR the figure was just 4 tonnes. 7.3.3.2. Noise In the case of noise, the modal comparison is less brilliant although still very favourable to HSR. Railways noise mostly depends on the technology in use but, in general, high speed trains generate noise as wheel-rail noise, overhead noise and aerodynamic noise. It is a short time event, proportional to speed, which burdens during the time when a train passes. This noise is usually measured in dB(A) scale. There have been made measurements for noise levels of 124 | P a g e
different high speed train technologies, and the values obtained ranged from 80 to 90 dB(A), which are disturbing enough, particularly in urban areas. Levinson et al. (1997) refer that it has been calculated that in order to maintain a (tolerable) 55dB(A) background noise level at 280 km/h, one needs about a 150 meters corridor. 7.3.3.3. Distance Distance is important because it has been generally omitted in the traditional comparisons of land occupancy between HSR and, for example, a motorway, as showed in Table 7.2, which tend to underestimate the values for railways. As a consequence, general complaints about the noise of TGVs passing near towns and villages in France have led to build acoustic fencing along large sections of tracks to reduce the disturbance to residents. Table 7.2. Land Occupation Comparison between Roadway and HSR (UIC, 2005) High speed rail line
Motorway
Type
Double track
2 x 3 lanes
Width
25 metres
75 metres
Infrastructure capacity
12 trains per hour and direction 4,500 cars per hour and direction
Vehicle capacity
666 passengers/ train
1.7 passengers/ car
Total capacity
8,000 passengers/hour
7,650 passengers/hour
7.3.3.4. Safety Cost With respect to safety, any comparison of accident statistics for the different transport modes immediately confirms that HSR is together with air transport the safest mode in terms of passengers’ fatalities per billion passenger-kilometres. This is so because high speed rail systems are designed to reduce the possibility of accidents. Routes are entirely grade-separated and have other built-in safety features. The safety costs are thus capitalized into higher construction and maintenance costs, rather than being realized in accidents. Finally, the same idea applies to other external costs, such as alteration of landscapes and visual intrusion. These costs are seldom separately considered, since they are always included into
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the items related to terrain movement and preparation. Although it is quite unlikely that, even with a proper accounting of these costs, the favourable position of HSR with respect to external costs could be reversed, it is important to note that increasing opposition to new projects could arise. The first environmental protests against the building of a high speed line in France took place in May 1990 during the planning stages of the TGV Méditerranée. Protesters blocked a viaduct to complaint against the planned route of the line, arguing that a new line was unnecessary, would serve mainly business travellers, and that trains could use existing (J. Campos et al., 2006). 7.4. Viability of HSR In Case Of Bangladesh Since the earliest projects started commercial operation in the 1970s, high speed rail has been presented as a continuous success story in terms of demand and revenues. It has been particularly viewed in many countries as a key factor for the revival of railways passenger traffic, a declining business that had lost its momentum due to the aggressive competition of road and air transport. In France or Spain, for example, high speed divisions are the only business units within the rail companies that can reasonably recover their operating costs. The positive figures for HSR demand are almost indisputable. Until 2005, the pioneering Japanese Shinkansen lines accumulated more than 150 billion of passenger-km transported, in Korea, the high speed lines inaugurated in 2004 beat domestic air travel in just two years, gaining more than 40 million passengers per years (J. Campos et al., 2006). With respect to Europe, in 2005 it was reached a record of 76 billion of passenger-km. In the 1994- 2004 period traffic evolution has experienced an average annual growth of 15.6%, with two-digit figures in the initial years and a slight slowdown in more recent years. In addition to the other demand driving forces, namely prices, quality and income, this growth has been strongly dependent on the progress in building the new HSR infrastructure. This rapid growth has enabled HSR to account for about 40% of the total passenger market over medium distances, with spectacular gains on some corridors. Figure 7.7 describes in more detail the evolution of HSR traffic in Europe in the1994-2004 decade in terms of passenger-km. It can be observed that the larger share of traffic corresponds to the TGV services in France, which represented initially 70% of all European services.
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Figure 7.7- Evolution of high speed rail traffic in Europe (1994-2004) (UIC, 2005) This result suggests the possible existence of a sort of “maturity effect” common to other products and services. HSR demand starts growing at a very fast pace, stealing a lot of market share from competing modes and possibly inducing new travellers in to the corridor. But after a few years, when the services are well established and running at schedule, demand growth rate declines. This hypothesis seems to be confirmed by comparing the evolution of aggregated traffic in Asia and Europe as shown in Figure 7.8. HSR services in Japan started operations in 1965 and enjoyed a sustained traffic growth for the following 20 years, in figure 7.8 the trend is represented by a dotted line. During this period it gained around 100 billion passenger-km. However, in the next 20-year interval from 1984 to 2004, accumulated demand growth has halved, and only 50 billion additional passenger-km have used the Shinkansen. By comparison, most European HSR projects are still in their “first 20-year period” and therefore it is natural to expect high growth rates as confirmed by Figure 7.8 at least until the high speed transport markets start to mature as in Japan.
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Figure 7.8- Evolution of accumulated traffic: Asia vs. Europe (UIC, 2005) Considering the economic as well as other factors, choice HSR as passenger transport in Bangladesh railway becomes the timeliest recovering tool. Though the cost of infrastructure development, shunting, train operations, maintenance of rolling stock and equipment, energy, and sales, administration and external costs are seems to be very extensive, the output benefit also servers the cost invested. BR has sufficient space, so land acquisition won’t pose a great threat. The challenge is, how the Govt. of Bangladesh will manage the other cost. Along with other development partners Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), World Bank (WB), if adequate, allegeable and sustainable plan can be made, HSR in Bangladesh won’t be a dream anymore. Already implication of Strategic Transport Plan has been started which includes elevated expressway, should give BR a scope for planning of HSR.
7.5.
Conclusion
This analysis should be viewed as a preliminary attempt to empirically identify infrastructure and some of the economic characteristics of high speed rail services, by constructing and analysing an exhaustive database that comprises the relevant technical and economic information from existing HSR projects in the world. Decision can be made focusing on investment criteria and CBA analysis, sometimes called benefit–cost analysis (BCA), through a systematic process for calculating and comparing benefits and costs HSR project in case of Bangladesh railway.
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This analysis will show two prospects for BR.
Helps to determine if
HSR is possible in Bangladesh and if it is a sound
investment/decision otherwise justification/feasibility
Helps to provide a basis for comparing HSR project with other countries.
By using CBA BR can evaluate the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, by how much intermodal competition and territorial impacts of high speed. Once collected all this information, economic definition of high speed rail can be established, speed but the network exploitation can be defined. Next step shall be providing what could be considered a representative cost of building high speed infrastructure, taking into account both cost composition and the technical features of each. Although there is still a wide range of values, overall, the construction cost per kilometre excluding planning and land costs, varies between 6 and 45 millions of euros in European Countries. The analysis in this chapter has confirmed the fact that HSR compares very well with other transport modes in terms of external costs, but also that some of them, such as in the case of noise, could have unintended effects on land occupancy that may request for further studies. The analysis also shows current demand of HSR and tried to draw some patterns about its future evolution which can be applied in Bangladesh. The suggestion is that the spectacular growth experienced by HSR services during its initial years later declines, as the market is more and more mature. At least this has been the evolution of the Shinkansen in Japan. Thus analysis indicates a way of evaluating the viability of HSR in Bangladesh and find a scope of planning for HSR.
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CHAPTER 6 RECONSTRUCTION, POTENTIALS & OPPORTUNITIES FOR BANGLADESH RAILWAY 6.1.
Introduction
Bangladesh Railway (BR), a state-run transportation agency of the country, has 2835.04 route Km rail line with 440 nos. stations, 286 nos. locomotives, 1503 nos. coaches and 10226 nos. wagons. Railway connected almost all important places of 44 civil districts and plays important role in the economy. It operates 261 passenger trains and 55 goods trains including container trains daily on an average. Besides, it operates the largest Inland Container Depot with capacity of 90,000 TEUs (Bangladesh Development Forum Meeting, 2010)is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long (6.1 m) intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks. In view of cost, safety and environmental congeniality, the modest service of Bangladesh Railway (BR) still widely enjoys the preferred option of the travellers. Remaining as such, promoting BR into a robust organization commercially and financially viable and equipped with professional expertise and more autonomy programs have already been undertaken with the development partner’s assistance. After coming in power present government has undertaken huge development works to replace BR s old aged rolling stocks, to rehabilitate existing tracks and establish important missing links and reopening of closed tracks, establish important missing links and reopening of closed tracks double tracking of missing portion of Dhaka-Chittagong main corridor, modernizing of signalling systems and railway workshops etc. Besides, Intergovernmental agreement on Trans-Asian Railway network has been accorded by the Cabinet and only is awaiting ratification by the Parliament. Geo-strategically, Bangladesh's location is very significant and sensitive in terms of Pan-Asian continental surface connectivity. It has the potentiality to be a focal connecting point between SARRC & BIMSTEC (The Bay of Bengal Initiative for Multi-Sectorial Technical and Economic Cooperation) is an international organization involving a group of countries in South Asia and South East Asia. The issues like intra & inter-country connectivity, export and growth
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centres facilitating infrastructure, Asian Highway, Trans Asian Railway Network etc. are the important emerging issues of the country s surface transport strategy. Construction of about 6.10 km long 2nd Padma Multipurpose Bridge at Paturia-Goalundo point to establish communication network from capital city, Dhaka to the west and the south-west part of Bangladesh as well as with the main land port Benapole, Darshona and the sea port with Mongla is an important issue of the sector. BR network was initially North-South connection based because of riverine land script. Establishment of new East-West connections and missing links (i.e. Dhaka-Bhanga-Jessore, Khulna-Mongla, Dohagari-Gundum-Cox s Bazar, and 2ndJamuna railway bridge. at Phulchari Bahadurabad Ghat etc.) and revival of old and abandon tracks are the key areas of interventions. Rehabilitation of existing railway lines, modernization of signalling system and acquisition of new rolling stocks to improve the performance and to cop up with the upcoming new situation linking the network with the Trans Asian Railway are the important challenges in front of BR. Apart from these, reducing operational bottlenecks by double tracking all major railway corridors and harmonization of railway tracks by phases, institutional reform, pragmatic role in easing traffic congestion by improving commuter train service in Dhaka and Chittagong cities, proper use of land and other assets, introducing more Public Private Partnership (PPP) in railway sub-sector are important challenges in front of BR Over the last three-decades, the railway received an allocation of resources through ADB, whereas the road sector received the lion’s share of allocation in the transport sector. As a result, the railway became marginalised. Indeed, the paved road network expanded from 3,000 km in 1971 to over 50,000 km to-day (Md. Saidur Rahman, 2005). The road sector now carries more than 85% of passengers and around 80% of freight traffic, compared to 4% of both passengers and freight by railway. In a land scare country like Bangladesh, such an emphasis on the road sector is not sustainable in the long-term. A high capacity, efficient and environmentally sound transport system is required, this is where rail can play a huge role. 6.2.
Need for Reform
Bangladesh railway is a very important mode of inland transport, hence its healthy growth naturally contributes to the economic development of the country. It has great potential in the regional traffic, which depends on the revival of historical railway links and connections. Most of these are part of the Trans Asian Railway (TAR) network and its agreement, to which 84 | P a g e
Bangladesh is already a signatory. The future of railway depends on a concerted intervention from the Government to address the adverse economic, social and environmental consequences of road building and road transport operations. This intervention has to be policy-based, following an analysis of the economic and environmental costs of competing modes. A beginning has already been made by the Council of Advisors when they considered a draft Integrated Multimodal Transport Policy (IMTP) in October 2007. The Council felt that there should be a stronger emphasis on rail and inland water transport, vis-à-vis road transport, which had received a biased support of the government and donors over past several decades. The IMTP has already been redrafted in the light of the above decision the Council, and added emphasis has been laid in the draft policy for the development of railway and inland water transport. This Railway Master Plan, therefore, provides an opportunity to put greater emphasis on the rehabilitation and further development of the railway, focusing on the areas indicated above, where BR has the greater potential (BR Master Plan, 2009). But BR has been suffering from various operating bottlenecks for years after years due to lack of proper planning & integration, government attention, inefficient management system and adequate maintenance and replacement. Its continuing large deficit and the high level of direct and indirect Government subsidies is probably the single biggest issue forcing Government of Bangladesh in the transport sector. Modernization of railway communication is necessary by adapting new technology, introducing high-speed train and standardizing railway tracks and signalling systems. To strengthen the efficiency of BR, proper attention will be given to this trust sector. Private sector involvement on selective basis in operation and maintenance of BR should be encouraged. Government has to patronize the sector properly for its expansion and development. In the same time, operational & maintenance as well as overhead cost should be minimized, management should be efficient, and number of employees should be rationale. Finally, an appropriate market-based reorientation is very much necessary for the healthy growth and development of Bangladesh Railway. 6.3.
Methods of Railway Restructuring
Changes in the transport market have diminished the competitive advantage of railways, in many countries simultaneously. Indeed the extent of competition from other modes of transport has raised the basic issue of the continued viability of railways. However, experience in Europe and other Asian countries has demonstrated that railways are viable even in direct competition 85 | P a g e
with non-rail private transport service providers equipped with modern technology. A number of different approaches to railway restructuring have been adopted on the basis of that, the following section analyses the three main dimensions to railway restructuring decisions, namely:
The vertical organizational structure in terms of the degree of separation between railway infrastructure and railway services;
The nature and extent of competition to be created;
The extent of private sector participation.
6.3.1. Restructuring – The Main Dimensions The railway industry is undergoing a transformation from being a poorly managed public utility in decline with mounting financial losses to a more efficient market-oriented industry with a more commercial outlook and increased competition in many countries. The three main dimensions that define the nature of the various restructuring schemes that have been applied in recent years.
Vertical Structuring This refers to the extent, if any, of vertical separation between the organizations responsible for railway infrastructure on the one hand and for train services on the other.
Private Sector Participation This refers to the extent, if any, of private sector participation in the provision of railway infrastructure and/or services.
Degree of Competition This refers to the extent to which there should be competition either ‘for the market’ or ‘in the market’ in the railway industry.
6.3.2. Economic Characteristics Of The Railway The main characteristics of railways that determine the applicability of restructuring and its alternative forms include: 6.3.2.1. Multiple-Products Railway service providers are multi-product in nature since it provide both freight and passenger services. There are a number of implications arising from the multi-product 86 | P a g e
nature of rail services. Firstly, it is difficult to allocate total operating costs among the different services offered due to the existence of costs that are joint or common to several rail users. Secondly, it may be more efficient for a single organization, rather than two separate ones, to supply both infrastructure and transport services and further, if the infrastructure and services are separated, the supply of such services may be more efficiently provided by a monopolist, rather than by competing organizations. 6.3.2.2.
Cost Structure
Railways costs are often classified into four broad cost categories: a.
Train operating costs which, in general, vary with train mileage and include the costs of providing transport services (fuel, crew, maintenance and the depreciation of rolling stock);
b.
Track and signalling costs (including the operation, maintenance and depreciation costs of the infrastructure) which usually vary with the length of the route and the number of trains for which rail paths are required;
c.
Terminal and station costs which depend on the traffic volume, but they vary considerably with the type of traffic;
d.
Administration costs which tend to vary with the size of the firm.
Cost allocation is therefore a complex matter and policy-makers usually adopt marginal-cost pricing principles (T. N. Tideman and F. Plassmann, 2010) and attempt to make a clear distinction between costs that are avoidable and those that are principals. Since charging less than the avoidable cost would be equivalent to operating at an economic loss. In attempting to re-structure the industry it is important to develop pricing systems that facilitate access to the rail network on an efficient and fair basis. 6.3.3. Natural Monopoly of Rail Infrastructure The significance of railway infrastructure of rail transport services was typically regarded as a classic example of a natural monopoly. In recent years, however, it has been agreed that whereas duplicating rail infrastructure is generally inefficient, the cost of operating rail transport services and rolling stock once the network has been deployed can be efficiently provided by more than one company, which can be viewed as actual or potential competitors. Therefore, in restructuring, it may be concluded that infrastructure and services can be dealt with in different ways, the former, as a natural monopoly, but also as a potential provider of access for the operators of train services. The operation of train services on the infrastructure, 87 | P a g e
however, can be provided either by multiple competing operators or by a single firm under some sort of concession or license arrangement. 6.3.4. Indivisibilities Although the potential vertical separation of the industry can alleviate some of the natural monopoly problems, the rail industry remains a very capital-intensive sector which is subject to several other indivisibilities within its productive process. Specifically, the capital units like rolling stock, track and stations can only be expanded in discrete or indivisible increments, whereas demand may fluctuate in much smaller units. For example, the marginal costs of additional freight or passengers may be insignificant when there is idle capacity, but may be substantial when the capital is at the limit of its full use. Therefore, dynamic price and output considerations become crucial in order to recover the real costs associated with each period of activity. Such indivisibilities affect the minimum scale of efficient operation in planning any restructuring. 6.3.5. Public Service Obligations Rail services are often controlled for the reason that they are perceived as a public or social services, to be provided irrespective of financial viability. The reason for such control is because the industry is regarded as an integrative mechanism able to overcome geographical barriers in certain areas, aid in the economic development of undeveloped zones, and even as a guarantee of minimum transport services for a particular segment of the population. 6.3.6. Externalities in Competing Modes The policy goal of public service obligation is often supported with the idea that rail transportation contributes less to the rise of negative externalities than other modes of transport, especially road transport. There is abundant empirical evidence showing that the external costs derived from congestion, accidents or environmental impact for example noise, visual impact, pollution, etc. could be reduced if a substantial part of the road traffic market were transferred to the railways. 6.3.7. Vertical Structuring: It is possible to distinguish between three different options for the vertical structuring of the railway industry. The Benefits of Separation include:
Cost Reduction;
Creation of Intra-Rail Competition; 88 | P a g e
Increased Focus on Services;
Clarification of Public Policy;
Balance Sheet Improvements;
Cost Minimization through Reduced Expenditure on Co-ordination Efforts;
Improved Ability to Respond to Intra-Modal Competition;
Optimization of Train Operation on the Network;
Promotes Technical Innovation and its Implementation;
High Safety Standards.
6.3.8. Vertical Integration This is the most common structure in the industry. Typically, railway infrastructure facilities includes rights of way, track, terminals and associated traffic management have, until recently, been provided by the public sector. In addition, the provision of railway services like the conveyance of passengers and freight, have also been a public sector monopoly. Indeed, the same entity has usually been responsible for the railway infrastructure facilities, train services and administrative functions. State-owned railways have, therefore, often been organized as vertically-integrated publicly owned monopolies. 6.3.9. Competitive Access Competitive access is characterized by the existence of an integrated operator, usually a public enterprise, which is required to make its rail facilities (network and terminals) available to other operators on a fair and equal basis through the trading of, for example, circulation rights. It is possible to distinguish between Competitive Access with a ‘dominant integral’ operator and situations where Competitive Access is operated with a ‘separated integral’. In the latter case the infrastructure owner operates trains through a separate division on the same commercial basis as other operators. 6.3.10. Vertical Separation or ‘Unbundling’ In a vertically separated structure, the ownership of facilities is fully separated from other rail functions and specifically, train operations and marketing. This form of restructuring is very attractive because rail infrastructure, which remains characterized by natural monopoly conditions, is separated from rail operations, where there is potential for competition among different operators. Vertical unbundling has the benefit that it places rail transport in a similar 89 | P a g e
situation to road transport, especially with regard to infrastructure planning and pricing. Hence, governments could study investment proposals on the basis of a cost-benefit analysis, while pricing policies could be based on the criterion of social cost. Separation of infrastructure from services greatly facilitates the entry of more than one operator on a single route. In profitable services this would permit notable improvements in the efficiency of the industry by allowing direct competition among operators, and thus eliminating monopolistic practices in the sector. However, the main problem with vertical unbundling is the potential loss of economies of scope derived from the joint operation of tracks and services. The assignment of different services to several operators may imply a lower utilization of the staff and physical assets of the sector. Other problems include that the lack of integration may be confusing for the user and expensive to administer in a legal sense. Finally, the process of vertical separation of infrastructure and services may also lead to a reduction of invest 6.3.11. Organizational Separation This method creates separate business units with a large degree of operational freedom. There are several benefits for separating railway services from infrastructure operations. The first is to reduce unit costs. The more traffic a railway network carries, the lower is the unit cost. A railway can often allow a new operator on a line at a charge higher than its added costs, but far lower than the cost to the occupant operator of providing its own facilities. The second reason is to create intra-rail competition. The third reason is to improve the focus on the services provided. It is suggested that when railway operators face severe competition from often subsidized road transport in a number of market sectors it is sometimes better to create separate companies to increase commercial and managerial focus in specific markets. This applies particularly where unprofitable services are to be provided under government subsidy policies. The fourth reason is to clarify public policy. By separating rail infrastructure from operations, the government could target its support in a way that compensated railways for the support to highways and allowed it to cover the social costs of the environmental impact of different transport modes. The government can now tell what it is paying for and support only what it intends to. Infrastructure separation can also help improve the balance between the public and private sectors.
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6.3.12. Introduction of Competition The provision of railway networks is naturally monopolistic but the provision of services over the networks is potentially competitive. A competitive environment can be created in a variety of ways.
Competition ‘in the Railway Market’: this occurs where there is no restriction on entry by firms to the railway system subject to meeting safety regulations.
Competition ‘for the Railway Market’: where entry to the railway network is restricted, it is possible to organize competition for the right to service individual routes, or for the sole right to provide a whole network or to undertake particular functions as a subcontractor to a monopolist network or train operator.
Since there are significant barriers to entering the market for railway services and the efficient scale of operation is large relative to the market, it is relatively difficult to create ‘competition in the market’. One possible way forward is to create ‘competition for the market’ which can be described as developing private operations within a framework of public regulation and control. Creating “competition for the market” is a means of obtaining improvements in the efficiency of a monopolist. This form of competition is created by organizing an auction to force the potential monopolists to compete with each other for the right to be the single supplier of a rail network or train service. Competition in service provision can be effected through the selling of route permits for both profitable and unprofitable railway routes. Regulation over safety, service quality, and, prices can be retained whilst using competition to secure the lowest cost operator for a fixed time period. Further, introducing different operators on the same or competing routes and maintaining competition with alternative modes can produce significant benefits. “Competition in the market”, without barriers to entry, is appropriate for the provision of railway services where the size of the market is large in comparison to the minimum efficient scale of operation and several suppliers can operate concurrently at an efficient scale. This is likely for bulk freight rail services and possibly inter-city and high-speed passenger services.
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6.3.13. Private Sector Participation Many railway activities traditionally reserved for monolithic public railways can be more effectively performed by the private sector. During the past two decades, the large budgetary demands and failure to improve performance have led many governments to consider increasing the role of the private sector and enhanced competition in their railways. In practice, it is possible to identify a range of different institutional arrangements to facilitate private participation in railway activities. The current state of Bangladesh Railway’s performance has arisen largely because of insufficient rehabilitation funds resulting in inefficient operation below – cost tariffs and a relative lack of government or donor support, together with growing competition from roads. Consequently, opportunities for the private sector interest or government own corporate entity will depend to a large extent on reforms in pricing arrangements. Table 6.1 Commercial Activities of BR (BR Information Book, 2012) Train Number 7/8 11/12 15/16 17/18 19/20 21/22 23/24 25/26 27/28 31/32 45/46 47/48 49/50 51/52 215/240 455/456 461/462 505/506 507/508/513
Section Santahar-Panchagarh Dhaka- Noakhali Khulna-Chapai Nawabgonj Akhaura-Sylhet Santahar-Lalmonirhat- Santahar Santahar--Lalmonirhat- Santahar Khulna-Parbatipur Khulna-Goalanda Ghat Parbatipur-Chilahati Rajshahi-Parbatipur Noakhali-Akhaura Dhaka-Dewangong Bazar Dhaka-Mymensingh Dewangonj Bazar-Dhaka Narayangonj-Dhaka Burimari-Lalmonirhat Lalmonirhat-Parbatipur Poradaha-Goalondoghat Poradaha-Rajbari-Goalondoghat
Date Of Licensing 24.08.15 31.01.12 06.05.14 07.09.14 20.04.14 20.04.14 20.04.14 06.05.14 20.04.14 20.04.14 31.01.12 14.04.16 10.01.12 22.10.15 21.06.15 24.08.15 24.08.15 24.08.15 24.08.15
The process of involving private sector in the railway, in fact started since 1997 though computerised seat reservation and ticketing system at designated stations which was introduced 92 | P a g e
from December 1994. To improve the quality of passenger-service, commercial operations of the train-service in different routes have already been privatised. Up to 2006, operations of 79 trains, which include mail-train, express-train and local-train, have been privatised. Moreover, on-board services of 10 inter-city trains have been outsourced to private sector. The private sector participation so far has only been in the form of operation of train rather than the ownership of rolling stocks and other ancillary facilities. As on June, 2012, Commercial Activities of 63 nos. Mail, Express & Local trains and ' On Board ' services of 12 nos. of Intercity trains were licensed out. The detail is in Table 6.1. However, Bangladesh Railway is still a publicly owned entity with budgetary support for both train operations and infrastructure investment coming from the government. As such railway cannot be financially self-supporting either as public or private company. 6.3.14. Government Departments and State Enterprises Many railways (e.g. Bangladesh Railway) have been owned and managed directly as government ministries. While such a structure has occasionally functioned well, it is usually severely handicapped by lack of transparency, accountability or incentives for efficient customer orientation. This is especially severe where the railway must cross-subsidize some services (typically passenger, especially suburban) with others (freight), but also competes with private sector carriers, particularly road haulage and buses. Public enterprise railways like BR lack useful information on the profitability of specific activities and the magnitude of cross-subsidies. They are production-oriented, with little concern for market requirements and many require large supports. Management efficiency can be increased by corporatizing the agencies responsible for the railway infrastructure. The discipline brought about through acquiring a commercial responsibility with accountability for prices and hence revenue, and expenditure can drive costs down and quality up dramatically. Privatization clearly does not need to be an objective of railway restructuring. However, recent experience with the vertical separation of railways has allowed new approaches to be considered in meeting public responsibilities. 6.3.15. Unbundling and Decentralization A key to private sector participation (PSP) in railways is separating or "unbundling" rail transport activities. One example is the separation of the ownership of fixed facilities (stations
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and the railway network) from operations. While such separation does not require privatization, it can also be an effective way to make public operations more transparent and efficient -it does facilitate PSP. In order to create opportunities for bring in efficiency as well as to attract more private sector involvement in Bangladesh Railway, there is a strong argument as favour of separating infrastructure from operation, in the light of the National Land Transport Policy (NLTP) and the draft Integrated Multi-modal Transport Policy (IMTP). In fact, there are several reasons for separation. The first is to reduce unit costs by increasing railway traffic. The second reason is to create intra-rail competition. The third reason is to improve the focus on services provided. The fourth reason is to clarify public policy. By separation of rail infrastructure from operations, the government could target its support to loss making activities of railways. Moreover, infrastructure separation can also help improve the balance between the public and private sectors. Infrastructure separation means that the operators of transport services work at arm’s length from the provider of the fixed facilities. In railways separation can begin with merely keeping the accounts for infrastructure and operations separate, but it can extend to having different entities to own, provide, and control the infrastructure, and an entirely independent set of operators. However, it is true that infrastructure separation is messy and expensive. Operating companies will have to scramble to find customers at the right balance of prices, quality, and costs, competing with other transport modes aggressively, and defending and expanding their market shares in a business climate that demands high-quality, seamless service. Infrastructure agency will have to offer track capacity in a way that permits their only customers-the operating companies-to survive and prosper in a transport market that would happily extinguish rail service. However, the full involvement of private sector in railway operation is necessary to improve the services and to reduce the budgetary burden of the government. 6.3.16. Service Contracts Even if still publicly owned, the railway can contract for almost any activity with the private sector. This can be done with infrastructure, wagon, and locomotive maintenance. Such contracts, properly designed, can be made competitive and can incorporate incentives for good performance. BR already contracted for digital ticketing with some telecommunication companies. The contractor pays a fixed rate to the railway and therefore has an incentive to
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collect as much as possible. This arrangement has reduced the previously high level of ticketless travel. Other contracted services may include luggage handling and parcel service in BR. 6.3.17. Management Contracts Management contracts range from what is essentially a form of technical assistance, where the management contractor takes no financial risk, to more significant cases where compensation is based at least partly on results, including performance incentives. The contractor assumes responsibility for operations and maintenance of a particular activity, or even an entire railway. One drawback is that although it is often an explicit goal to turn over management to local staff at the end of the contract, it has proven difficult to incorporate incentives and mechanisms for local staff development. 6.3.18. Joint Ventures Typically joint ventures involve private partner companies contributing to the development capital, planning, and management expertise in the development of land or other real estate owned by a railway. Another kind of joint venture is the use of a railway right-of-way by a utility for placing telecommunications cables. For example Grammen Phone develops their communication using rail telecommunication. The simplest form of this, the "pipe and wire" lease, lets a utility take advantage of the rail right-of-way for access to a strip of land to lay its pipes or wires between major population centres, in return for a fee. 6.4.
Guidelines and Recommendations for Governments Undertaking Railway Restructuring
It seems that in recent years nations, at every stage of economic development, have shared the costly experience of troubled railway systems. Further, there does not appear to be a miracle cure and so many governments are beginning the difficulties but essential process of achieving serious reform through railway restructuring. It also seems that only serious restructuring holds any prospect of arresting the process of continuing decline in the railway industry. Hence, a framework for a government’s strategic decision making about the future of its railway industry and sets out the broad actions necessary that are necessary for achieving practical reform, including:
Strategic Idea
Strategic analysis 95 | P a g e
Strategic choice
Strategic implementation.
6.4.1. Strategic Idea of Bangladesh Railway Bangladesh Railways vision is to play an important and dominant role in an integrated transport system for the country by emphasizing its strengths. The main strength of rail transport vis-àvis road transport is in long distance travel and carriage of goods. Bangladesh is a relatively small country, and so for railway to compete with road transport it must be part of a door-todoor service that is integrated with other modes of transport for access and egress. Key areas where railway will seek to achieve the vision are as follows: Transport of containers
Lower port turnaround, loading and unloading times
Competitive pricing
Increased capacity on key corridors
Increase new train service
Development of new Inland Container Depots
Improved custom clearance arrangements
Quality transfer facilities to road transport
BR to act as a multi-modal transport (MMT) operator
Inter City Passengers.
Increasing track capacity on key corridors
Increase new train service and expansion of network
Developing intercity stations, as termini, interchange points, and focuses of land development
Improved rolling stock
Faster operations
Competitive pricing
Improved customer-orientated approaches
Bulk Freight Movements
Focussing on POL, sand, stone, food grain, fertiliser, iron and steel
Improved mechanised handling techniques
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Integration with road transport for door-to-door operations
Role as an International Railway
Carrying a greater share of the bi-lateral trade with India
Developing railheads for third-country trade and transit
Playing an active role in the Trans-Asian Railway to make railway the main carrier
Providing seamless access to Bangladesh ports for Indian cargo
An analysis by BR of railway traffic, the commodity carried, their volume and origindestination revealed that most passenger and freight movement takes place on a limited number of key corridors. In order to enable BR to carry the anticipated traffic in the future, the Railway Master Plan focussed its attention on the major corridors where almost 90% of all traffic movement takes place. These eight major corridors are:
Corridor 1: Dhaka – Chittagong –- Cox’s Bazar
Corridor 2: Chilahati – Khulna – Mongla
Corridor 3: Dhaka – Darsana/Benapole
Corridor 4: Dhaka – JMB – Rajshahi – Rohanpur
Corridor 5: Dhaka – Sylhet/Shahbazpur
Corridor 6A: Dhaka – JMB – Ishwardi – Chilahati 6B: Dhaka – JMB – Sirajganj/Roypur – Burimari
Corridor 7A: Dhaka – Mawa – Khulna – Mongla 7B: Dhaka – Mawa – Jesore – Benapole
Corridor 8: Dhaka – Mymensingh – Jamalpur – Tarakandi- JMB
6.4.2. Strategic Analysis Strategic Analysis is concerned with understanding the strategic situation of the railway industry. What changes are going on in the railway commercial, economic, political, social and technological environment and how will they affect the railway industry and its activities? What is the resource strength of the railways in the context of these changes? What do the stakeholders – government, local authorities, tax payers, freight users, passengers, environmentalists, other transport users, private shareholders, and trade unions – aspire to and how do these affect the present position of the railways and what could happen in the future? These questions are now examined in more detail. 97 | P a g e
The GOB’s overarching development objective is to achieve its vision, for which a Passenger Reservation Centre (PRS) has been adopted. While PRS provides a broad policy framework, IMTP would provide a sector specific policy/strategy for transport interventions targeted at economic growth and poverty reduction. IMTP has several objectives, which include reduction of transport cost, taking advantage of geographical location, and ensuring that transport meets social needs and the poverty reduction strategy. In view of the diverse problems being faced in Bangladesh, an optimal mix of ‘market integration approach’ and ‘poles of development approach’ is proposed as the strategic framework for transport sector development. The operational significance of this mixed strategy is that the development efforts are concentrated on the main transport corridors. Table 6.2 describes the strategic approach of Bangladesh to transport sector development. Table 6.2: Strategic approach to transport sector development Target
Growth strategy
Transport strategy (supportive role)
Poverty reduction
Export-led
Access to ports, EPZs, markets, etc.
(Railway
Development of export Improvement
intervention)
processing zones for manufacturing
of
strategic
transport
corridors Passenger: Inter-city Freight:
Container
and
selected
commodities Capacity enhancement Enhance competitiveness of railway
6.4.2.1.Railway Environment Railways exist in the context of a complex and changing commercial, economic, political, social and technological world. Since strategy is concerned with the position and role of the railways in relation to their environment, an understanding of the environment’s effects on the railway industry is of central importance to strategic analysis. The historical and environmental effects on the railways must be considered, as well as the present effects and the expected changes in environmental variables. An analysis of the strengths, weaknesses, opportunities and threats confronting the railway and its major competitors in each market segment is an important part of formulating a restructuring 98 | P a g e
plan. The process of this analysis generally termed as SWOT Analysis. SWOT analysis, alternatively SWOT Matrix is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture) Factors normally considered in the SWOT Analysis include:
The current and projected market shares of the railway and its major competitors
The relative financial strengths of the railway and its major competitors;
The price and service sensitivity of demand and the relative abilities of the railway and its competitors to respond to customer price and service requirements;
The technological strengths and weaknesses of the railway and its major competitors
The opportunities presented for product/service diversification.
A SWOT analysis may identify the strengths and weaknesses of the railways which give rise to opportunities and threats. An example of an external opportunity might be the imposition by the government of increased road user charges on commercial road transport operators, since this might have the effect of improving the competitiveness of rail in relation to road transport. The assessment of the environment should also evaluate economic forecasts and policies. Key government macroeconomic policies and forecasts, e.g. for GDP and interest rates, or more specifically, for new trade and agricultural policies which move the country from being a net importer of a product to being a self-provider, or vice versa can provide important insights. Environmental assessment is a major task because the range of environmental variables is great. Many of these variables will give rise to opportunities for the railways and others will employ threats. The main challenge is to distil out of this complexity an analytically based view of the main environmental impacts for the purpose of strategic choice. 6.4.2.2.
Resources
Just as there are outside influences on the railways and the choice of restructuring strategies, so there are internal influences. The strengths of the railways can be assessed by determining what the railways are good at doing or what resources it has that are superior to the competing modes or provide it with a comparative advantage. The weaknesses of the railways can be assessed by determining what it is good at, or where its resources place it at a comparative disadvantage relative to other modes. These strengths and weaknesses are usually identified by 99 | P a g e
considering the resource profile of the railways including its physical plant, its management, its financial structure, and its services. Again, the aim is to form a view on the internal influences – and constraints – on strategic choice. 6.4.2.3.Values and Objectives The value systems of the stakeholders involved with the railways will affect strategy because the environmental and resource influences will be interpreted in the light of these values. It is essential to establish the Mission and Objectives of the railways and of the enterprises that will comprise the reformed railways. Significant political skills will be required to produce a clearly stated set of objectives which are understood and agreed by all parties. 6.4.3. Strategic Decisions Strategic Management is concerned with deciding on the strategy and planning how that strategy is to be put into effect. Railway restructuring involves strategic decision-making and the main characteristics of strategic decisions of railways can be summarized as;
The scope of the railway industry’s activities
Matching the activities of the industry to its environment
Matching the industry’s activities to its resource capabilities
Major resource implications
The allocation and re-allocation of the major resources of the industry
The values, expectations and goals of the main stakeholders
The direction the railway industry will move in the long term
The implications for change throughout the industry and are therefore likely to be
complex. Firstly, railway restructuring is concerned with the scope of the industry’s activities. The issue of scope is fundamental to strategic decisions because it concerns the way in which those responsible for managing the railways conceive its boundaries. It concerns how one divides the industry into manageable units. It also concerns decisions about what activities or markets the railways, and its component parts, should serve.
The following distinctions should be
considered in examining the railway sector. 6.4.3.1.
Geographical Distinctions
Unlike other markets, transport markets have a fundamental geographic dimension. Railway markets and the track and terminals that provide access to them can be segmented 100 | P a g e
geographically in order to focus management attention on shipper and passenger needs which are typically local. Here a key analytical step involves segmenting freight and passenger service patterns into distinct and selfstanding service sub-networks. Where traffic patterns are primarily local, economies of large-scale operation over a national network may not apply. 6.4.3.2.
Line of Business Distinctions
The logic that applies to geographic segmentation also applies to market-focused, line of business segmentation. Railways typically serve not one but dozens of distinct product markets, each with its own operating and geographic characteristics and each defined by different service needs and unique competitive challenges. Passenger and freight markets are the most obvious line of business in which traditional railways participate. 6.4.3.3.
Functional Distinctions
Another way of separating railway assets is along functional lines. Railways require at least four distinct value adding functions: train operations, track maintenance, equipment maintenance, and commercial (sales and marketing) functions. It follows that these distinct functions may be separated as part of the scoping exercise and any subsequent restructuring. The conventional wisdom in the rail industry has been that vertical integration is essential to efficient operations. 6.4.3.4.
High Density versus Low Density Traffic
Another useful segmentation of rail assets involves a separation of lines that are profitable and that typically have high traffic density from lines that are less profitable (or not profitable at all) and that typically have low traffic density. This distinction can be used to facilitate the abandonment of light density lines through a process regulated by government. 6.4.3.5.
Common Network Use versus Exclusive Network Use
Another useful segmentation of assets is by category of track use. For example, private train operators can run over the tracks of multiple owners, as well as over their own terminal tracks or those of local service networks. Secondly, railway restructuring is concerned with matching the activities of the industry to the environment in which it operates. Modern technology used effectively by the road transport, inland waterways, and air transport competitors, and the rising service expectations of both shippers and passengers, have typically precipitated the crises that have led to change.
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Fundamental change is needed to restore the low cost and high quality service advantages that rail can provide with respect of road, inland waterway, and air modes of transport. Thirdly, restructuring involves matching the railway industry’s activities to its resource capabilities and will usually have significant resource consequences. Restructuring involves aligning the railway’s resources, and their use, with market needs in ways that will enhance the value of the surviving enterprise. Fourthly, restructuring strategy will not only be affected by environmental forces and resource availability, but also by the values and expectations of those who influence strategy. As the term implies, “restructuring” entails a clean break with past public choice practices, corporate governance protocols, management methods, and institutional arrangements. Fifthly, restructuring concerns the direction the railway industry will move in the long term, and the implications for change throughout the industry and are therefore likely to be complex. BR, in line with its proposed 20-year development plan and proposed 6th five year plan (20112015) has identified about 127 projects to implement within next five years at a total cost of US$6215 million, among which 26 nos. important and priority projects will be implemented with development partners assistance. Physical targets under these priority projects are given detail in Annexure A.11. 6.4.4. Strategic Choice Strategic Analysis provides a basis for strategic choice. The draft Integrated Multimodal Transport Policy (IMTP) has already recognised the need for a paradigm shift away from continued investment in the road sector, to developing the Bangladesh Railway’s network and improving its level of service. 6.4.4.1.Generation of Railway Restructuring Options An important step in strategic choice is to generate railway restructuring options. There are usually many possible courses of action open to government when restructuring railways. The options will vary according to the degree of vertical separation and private sector participation that is involved. 6.4.4.2.Evaluation of Railway Restructuring Options The strategic options should be examined in the context of the strategic analysis to assess their relative merits. The government may seek strategies that build upon the strengths of the 102 | P a g e
railways, overcome its weaknesses and take advantage of the opportunities, whilst minimizing the threats facing the railways. 6.3.4.1.Selection of Railway Restructuring Strategy This is the task of selecting the restructuring option that will meet the agreed mission and objectives for the reformed railways. The main elements that are necessary in any restructuring strategy for the railways are:
The depoliticization and commercialization of operational management
The selection and detailed design of an appropriate competitive market form
The development of effective competitors
The development of regulatory institutions appropriate to the market form.
6.4.5. Strategic Implementation Strategic implementation is concerned with translating the general direction of the restructuring strategy into an action plan. Implementation can be thought of as having several elements. Resource planning involves determining the logistics of implementing the proposed method of railway restructuring. What are the key tasks that need to be carried out? What changes in the resource-mix of the industry need to be made? What sort of network and rolling-stock will be required, and when by, and who will be responsible? These are some of the questions that need careful consideration. Changes to the structure of the railways are inevitable and the proposed Organization Structure needs to be fully described and the roles and responsibilities of the new organizations need to be documented. There is also likely to be a need to adapt the Systems and People used to manage the sector. Marketing, pricing, sales, and customer service skills will be urgently needed on the restructured railway. People prepared and willing to act and react quickly and flexibly to meet changing market demand conditions are essential. If they cannot or will not, business will be lost to the competition, perhaps irrevocably. The implementation plan must identify the sort of top management leadership needed to infuse all areas of the railway with the new entrepreneurial spirit, and to focus them all in integrated way on a shared commercial objective, is available or identify a way to find them. Special incentives may be needed to attract and retain such people.
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6.4.5.1.
Railway Recovery Program
Bangladesh railway has embarked upon a comprehensive Railway Recovery Program (RRP) in order to improve its financial performance through increased efficiency and cost reduction. The key elements of RRP are:
Improving labour productivity primarily by reducing surplus employees (reduction of
workforce from 58,000 to 35,000 through voluntary separation and natural attrition)
Reducing losses on different services by closing a number of money losing branch lines,
stations, sheds, depots etc. and withdrawal of some non-profitable passenger train services. Replacing open ended subsidy with compensation under Public Service Obligation (PSO) system by the government for running services on social consideration, in place of open subsidy
Improving operational efficiency through optimizing the use of assets
Making the Railway more responsive to market needs through organizational reform
incorporating structural changes and sound business practices
Exploiting commercially surplus land and other capacities of Railway
The principle of the reform process in BR is to transform BR into a more commercial organization. This would result in a sustainable and financially viable carrier and ensure less government interference in respect of organizational and commercial decisions of BR. This would mean progressive independence of BR from the government. In the process of reform efforts, major objectives of Railway development plans for different plan period are given below: •
First Five Year Plan (1973-78): Rehabilitation and reconstruction of damaged railway
system •
First Two Year Plan (1978-80): Completion of the work of rehabilitation and
reconstruction •
Second Five Year Plan (1980-85): Achievement of a reasonable level of efficiency in
assets utilization. The bulk of the investment was for replacement, renewal and rehabilitation of track, rolling stock and signalling equipment
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•
Third Five Year Plan (1985-90): Similar to Second Five Year Plan, with greater
emphasis on modernization of signalling and telecommunication system, fabrication of carriages and training of officers and staffs •
Fourth Five Year Plan (1990-95): Improvement of operational efficiency, reduction
of financial loss, development of repair and maintenance facilities, rehabilitation of track and bridges on a selective basis and introduction of pressurised concrete sleepers on core lines •
Second Two Year Plan (1995-97): Completion of spilled over projects of Fourth Five
Year Plan period •
Fifth Five Year Plan (1997-2002): Establishment of a direct railway link between east
and west Zone through Cross Jamuna rail connection, feasibility study on Dohazari-Cox’s Bazar rail line, improvement of line capacity and opening up avenues for private sector participation in BR activities. •
Three year Rolling Investment program (2004-2006): Establishments of direct
railway connection between the capital city Dhaka and the west Zone by converting DhakaJoydebpur MG section to Dual Gauge (DG). Rehabilitation of branch lines, construction of direct rail link from western side of Jamuna Bridge to Bogra and eastern side of Jamuna Bridge to Tarakandi. Modernization of signalling & interlocking systems of different stations. Procurement of new carriages and locomotive for improvement of passenger services. •
Sixth five year plan (2010-2015): The vision includes to increase the annual economic
growth from 6% to 8% by the year 2013 and upto 10% by the year 2017. An efficient and improved railway system can play important role to achieve the vision by 2021. The goal of BR is to sustain its growth momentum to contribute to the development effort of the country along with its continued help to poverty reduction. As always, the first priority is to secure what railway already has and to improve its service quality and performance. BR has also goal to foster International rail links to serve regional/sub-regional connectivity and Trans Asian Railway. BR has also tries to expand & improve railway system to provide safer, speedy, better & less expensive transport facilities to the national and international traffic to increase its market share and enhance the efficiency & improve the performance of BR. BR has vision to establish e-governance, introduce mass rapid transport system such as Metro rail, Mono/Sky rail, Electric train, circular rail line, modern commuter trains etc. to provide better service to contribute transforming into digital Bangladesh.
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Due to some constraints, the above-mentioned objectives have not yet been attained fully within the timeframes. If the above rehabilitation program is successfully completed, BR will be more efficient and dynamic in operation. 6.4.5.2.
Ongoing Projects and Their Benefits:
The tangible benefits from the reorientation of BR is expected to be obtained from the savings in operating costs, earning more from high traffic volume, efficient operation and proper utilization of railway assets. Moreover, a tremendous development will be occurred in carrying bulk commodities to a longer distance. The main benefits that may be observed from the reorientation of Bangladesh Railway are summarized as follows:
Integration of Railway’s east (MG) and West (mostly BG) networks, allowing direct east-west traffic, will create new dimensions to increase BR’s efficiency.
Direct access between north and southeast of Bangladesh and the capital city Dhaka to the Port city Chittagong will open new doors for BR to carry both passengers and freight traffic to a longer distance.
It will be a closure of missing links for future Trans-Asian Railway route.
Enhancement of regional rail traffic will increase the revenue of BR.
A great development will be observed in the handling of container services from Chittagong Port to a longer distance that will promote the Export-Import business of the country.
Transportation projects generally result in travel time saving, which are enjoyed by passengers, crew of vehicles, vehicle operations and consigners of commodities. The proposed direct links will significantly reduce the rail distance between important sections and reduce the travel time.
Apart from saving in travel time, there will be significant reductions in the vehicle operating costs as well.
A new area will be opened for railway traffic and for reduction in travel time, more traffic will be attracted by the structural reorientation and thus BR will be able to increase its revenue.
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BR will be able to improve its operating performance and thus will be more competitive compared to other modes of transportation.
New links will provide a better transport facility for bulk commodities and container services to carry faster to the Northwest region of the country over the Jamuna Multipurpose Bridge.
In case of any emergency, accident or natural calamity like flood, cyclone etc., a second line of communication via the Chord line between Dhaka and Chittagong is extremely necessary to maintain uninterrupted rail communication between these two most important cities of the country.
The construction of the vital link is essential for the reason to increase the transportation potentials to obtain maximum profit.
Right now several development projects are ongoing in BR with the financial support of GOB, ADB, World Bank. The details of projects are given in Annexure A.12. 6.5.
Bangladesh Railway’s Possibility to Be Transport Center
In view of its unique geographical location, Bangladesh could become the “transport centre” to serve the entire hinterland comprising Nepal, Bhutan and North-East India. Bangladesh should try to provide transport services to the sub-region as a “trade in services” and as a potentially important source of foreign exchange earnings. Accordingly, future development strategies should include a regional role for the national transport system. Future actions concerning the appropriate modal mix and integration of different modes should also reflect this regional role of the transport system. To promote Bangladesh as the transport hub for the sub-region, it shall have to modernize and expand its port capacity, railway and road network, where the private sector should be encouraged to invest. BR can immediately take this opportunity by improving its existing network and extending services by opening its corridors for Indian traffic on the basis of appropriate bargaining 6.5.1. Connectivity to India The Bangladesh Railway was originally connected with the Indian BG system at Benapole, Darsana, Rohanpur and Chilahati and the MG system at Birol, Burimari, Mogolhat and Shahbazpur. At present only three BG rail corridors are active, through Benapole, Darsana and Rohanpur. The BG link from Chilahati to Haldibari and the MG connections from BurimariChengrabandha and Mogalhat-Gitaldaha have been disconnected, while Shahbazpur107 | P a g e
Mahishasan (MG) is not presently in operation. On the other hand, Birol-Radhikapur portion has been converted into BG in India, while Bangladesh connection to Birol in still MG. The main route from Dhaka-Kolkata uses the Darsana-Gede crossing point. Loaded Indian wagons enter Bangladesh and are pulled a short distance to transhipment points inside the country by Bangladeshi locomotives. Goods are transhipped into MG wagons at Shantaher, to trucks at Ullapara or to barges/trucks at Noapara (located between Jessore and Khulna). Only about 25% of cases, the whole rake move towards a single destination. Marshalling of rakes is a major exercise, which often gets adversely affected due to the non-availability of shunting locomotives and limited holding capacity in the yards. Transhipment is required for goods bound for Dhaka, even though a DG railway network exists up Kamlapur station in Dhaka. This is because of the load restrictions imposed by the Jamuna Multipurpose Bridge Authority (recently, renamed as Bangladesh Bridge Authority), which prohibit the movement of fully loaded Indian BG wagons. Benapole is an alternative entry point for trains from Kolkata. This route was reopened in 2001 and currently caters for only one to two trains per week. Rohanpur is the third BG crossing point that is fully operational. The Rohonpur route would provide a direct BG route for traffic Nepal. Rohanpur has only three yard lines capable of accommodating a freight train consisting of only 30 Water-tight covered high side bogie wagon used on Indian rail system (BCX) wagons. The existing capacity of Rohanpur station being limited, 10 BCX wagons are detached from every rake at Singhabad yard causing delays to the loaded stock. The inadequate holding line capacity of BR thus adversely affects the movement of goods between India and Bangladesh. Birol used to be a rail crossing point, particularly for Nepal traffic. The MG section to Birol was in operation until April 2005. Most of the Nepalese rail traffic used to be handled through this point. However, Indian Railways (IR) has already converted the track from MG to BG. Therefore, to reinstate the connection it will be necessary to have a transhipment arrangement or a container transfer station at Birol until such time that a dual gauge line has been built from Birol to Parbatipur. Akhaura junction is proposed by India as a connection point to Indian Railways under construction in Tripura. There is a missing link between Akhaura and Agartala in India. IR is constructing a link between Kumarghat and Akhaura. Once this line is completed, it will connect Agartala with the north-east frontier railway. The route Tongi-Bhairab Bazar is being 108 | P a g e
double tracked as MG, but with BGML sub-structure to allow it to be easily converted to BG/DG. 6.5.2. Connectivity with Bhutan and Nepal Rail traffic between Bangladesh and Bhutan or Nepal must cross through India. For Nepal, trains originating on BG can use the route Rohanpur. For Bhutan, to get a direct BG connection, the route via Chilahati/Haldibari could be opened. There is a bilateral agreement between Nepal and Bangladesh for the movement of traffic by rail to Nepal, but there is as yet no tripartite agreement involving India. It is considered that a tripartite agreement is necessary for the movement of traffic by rail to Nepal and also to stations near Bhutan to facilitate Bhutanese traffic by rail via Bangladesh. 6.5.3. Trans-Asian Railway Route As part of the step-by-step approach to the implementation of the integrated Asian Land Transport Infrastructure Development (ALTID) project, the ESCAP secretariat undertook in 1995 a preliminary Trans-Asian Railway (TAR) route requirements study for connecting the rail networks in the SAARC region - Pakistan, India, Sri Lanka and Bangladesh, with connections to Nepal - and the Islamic Republic of Iran, to create a "TAR Southern Corridor". The objective of the TAR project, initiated by ESCAP in the 1960s, is to assist in providing a basic rail link between Singapore (Indonesia was included at a later stage) and Istanbul, which would also provide a connection between Asia and Europe/Africa. The main direct route connecting Singapore with Istanbul is 14,000-km long. Currently, the total length of missing links is around 1950 km, comprised of 1400 km between Bangladesh and Thailand and 450 km in the Islamic Republic of Iran between Kerman and Zahedan. Consequently, the total new construction work is approximately 14% of the direct route. As Bangladesh is in a geographical important location of the TAR route network with its prospective Sea Port (Chittagong Port), BR can be appeared as an indispensable part of future socio-economic activities of this region by taking steps accordingly.
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6.6.
Conclusion
Bangladesh Railway has its potential to serves the total demand in Bangladesh as well as the regional countries surrounding the country. It provides services which poses multi-product in nature including both freight and passenger services. Railways costs are often classified as train operating costs, track and signalling costs, terminal and station costs, administration costs which if can be managed correctly; BR may become a beneficial industry. Considering the restructuring of Bangladesh Railway, it is possible that infrastructure and services can be dealt with in different ways. The benefits of vertical separation in BR include: cost reduction; creation of intra-rail competition; increased focus on services; clarification of public policy; balance sheet improvements; cost minimization through reduced expenditure on co-ordination efforts; improved ability to respond to intra-modal competition; optimization of train operation on the network; promotes technical innovation and its implementation; high safety standards. Although the potential vertical separation of the industry can alleviate some of the natural monopoly problems, the rail industry remains a very capital-intensive sector which is subject to several other indivisibilities within its productive process. Through PSO BR provides public or social services, which is financed by Govt. of Bangladesh. With the competitive access BR can integrate the existence of other operator, may be a public enterprise, which is required to make its rail facilities both network and terminals available to other operators on a fair and equal basis through the trading and business. This method creates separate business units with a large degree of operational freedom. Competitions can be introduces in BR by ‘in the Railway Market’ or ‘for the Railway Market’ competition. Though BR is a publicly owned entity with budgetary support for both train operations and infrastructure investment coming from the government, it cannot be financially self-supporting either as public or private company if proper competition, privatization otherwise PSP can be made. A key to private sector participation (PSP) in railways is separating or unbundling rail transport activities. Service Contracts, Management Contracts, Joint Ventures can be made for successful PSP in BR. Strategic Ideas and visions are made through BR master plan, and milestones are set to reach it. Railways exist in the context of a complex and changing commercial, economic, political, social and technological world. Since strategic analysis is concerned with the position and role of the railways in relation to their environment, an understanding of the environment’s effects on the railway industry is of central importance to strategic analysis. The strengths of the railways can be assessed by determining what the railways are good at doing or what resources it has that are superior to the competing modes or provide it with a comparative advantage. Strategic Management of BR is concerned with deciding on the strategy and planning how that 110 | P a g e
strategy is to be put into effect. Railway markets and the track and terminals that provide access can be segmented geographically in order to focus management attention on shipper and passenger needs. Another way of unravelling railway assets is along functional lines. Railways require at least four distinct value adding functions: train operations, track maintenance, equipment maintenance, and commercial functions, if they can be separated, organizational as well as operational and financial improvement can be made. Another useful segmentation of rail assets involves a separation of lines that are profitable and that typically have high traffic density from lines that are less profitable. An important step in strategic choice is to generate railway restructuring options along with evaluation of railway restructuring and selection of railway restructuring strategy. Strategic implementation of BR is more focused with translating the general direction of the restructuring strategy into an action plan. The tangible benefits from the reorientation of BR is expected to be obtained from the savings in operating costs, earning more from high traffic volume, efficient operation and proper utilization of railway assets. Bangladesh’s possibility to be transport centre, have potential to connect to India, Bhutan and Nepal. More over BR is going to be a part of Trans-Asian railway route.
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CHAPTER 8 CONCLUSION AND RECOMMENDATIONS 8.1.
Conclusion
Constraints and potentials are two contradictory terms but always stay together. Bangladesh Railway (BR), a glorious name in the past now faces the challenge to overcome its constraints and fulfill its obligation to people. To operate with full potential, its operational performance should be upto the level so as to compete in national market as well as regional connectivity. In this context, Indian Railway (IR) and Pakistan Railway (PR) are selected to compare with BR operational performances. To have the broader understanding of these railway industries, different issues are analyzed based on available information and sometime the information are made to have the common basis. The main concerns of the analysis are passengers and freight traffic with appropriate track and route study. To highlight the current condition of BR, it is necessary to demonstrate its performance. Only operational performance trend isn’t sufficient for evaluation. Comparing the operational performance and with IR and PR gives rise to the drawbacks of BR and scope for further increment of operations. Moreover the comparative study shows the gap between the current condition and long reaching goal. The operational performance of BR is drastically limited by its constraints. These constraints range from organizational level to field level, physical level to maintenance level. As a developing country financial problem or deficit posing a major threat. There is hardly any margin between cost and revenue. Every year BR suffers from loss even though Govt. of Bangladesh grants subsidies through PSO and welfare grant. What happens if the constraints are removed? The present railway has lots of potentials not only consists of national but also international importance. But to achieve these potentials, BR needs to go through reform processes as studied in Chapter 6. High Speed Rail, the proven future of present loss making rail industry, shows the hope for BR for handling future demand of passenger. The infrastructure, maintenance costs are
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comparatively higher in HSR, but in the long run with efficient and quality services and operations, it can be a profitable industry for BR. With this the thesis objectives are closed. 8.2.
Recommendations
Following recommendations are suggested as per analysis in previous chapters for improvement of Bangladesh Railway.
The approved project for improving operational performance and increasing line capacity should be completed in time. For this the projects must be prioritized according to their importance.
Proper budget allocation and also money flow should be confirmed for successful completion of development projects.
Rail, track, signalling system, old bridges should be improved in increase track capacity. Specially aged rolling stocks, locomotives should be replaced for energy, fuel and speed efficiency.
Rail Tracks should be improved. Almost 50% of rail tracks needs immediate rehabitation. Doubling of tracks in important corridor can increase capacity of rail transport.
Financial deficit should be minimized by standardizing fare and pricing system relating to cost. In this regard customer services must be improved to attract passenger.
Reduce Govt. subsidies and lead railway to operate more commercially. Integration of privet sectors should be given more emphasize for efficient performance.
To achieve optimum performance to demand of national and cross border connectivity, Bangladesh Railway should go through appropriate reform process.
Already organizational restructuring is done by making Ministry of Railway, but it is not enough. Physical commercial bottlenecks should be removed considering top priority.
Problems arising from state ownership of railway should be minimized by vertical integration and PSP.
To accommodate future need of passenger services, Bangladesh Railway should start taking step to plan for high speed rail, considering its infrastructure and maintenance cost.
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8.3.
Limitations of the Study
Some limitations of the study and scope for future analysis are as follow
Easy accessibility, intercity service, metro service and shuttle service should be increased to attract passenger, which are not analyzed in this study.
The comparative analysis can be done for operation per track KM to get more appropriate performance scenario.
Because of lack of data all operations cannot be compared.
The comparison can be more extensive comparing with more countries. It also limits by unavailability of data.
Economic analysis of rail transport industry in not included in this study, which need to be analyzed in future.
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ANNEXURE Table A.1. Modal Share of Passenger and Freight Traffic (Source: Revival of Inland Waterways: Strategies and Options, Report, World Bank 2007) Modes of Transport
Passengerkm (billion)
Passenger Modal Share
Ton(billion)
Road Rail IWT Total
98.4 4.2 8.9 111.5
88% 4% 8% 100
15.7 0.8 3.0 19.6
Table A.1.
km
Freight Modal Share 80% 4% 16% 100
Annual Sectorial Shares (%) Of GDP (Source: Statistical Yearbook of
Bangladesh, 2008) Sectors Name Land Transport
Sub-sector
% of GDP 7.53
Bangladesh Railway Road Transport (mechanised) Road Transport (non-mechanised)
0.08 5.28 2.17 0.64 0.10 8.27
Water Air Total Table A.3 Route KM of BR (BR Information Book, 2011) Year July-June
East Zone
MG West Zone
Total
DG West Zone
Total
East Zone
Total System West Zone Total
1969-1970
--
--
923.07
--
--
--
--
2,858.23
1999-2000
1,279.09
936.25
936.25
--
--
1,279.09
1,489.28
2,768.37
2000-2001
1,832.12
936.25
936.25
--
--
1,279.09
1,489.28
2,768.37
553.03
1,829.74
936.25
936.25
--
--
1,276.71
1,489.28
2,765.99
1,276.71
553.03
1,829.74
660.22
660.22
365
365
1,276.71
1,578.25
2,854.96
2003-2004
1,276.71
553.03
1,829.74
660.22
660.22
365
365
1,276.71
1,578.25
2,854.96
2004-2005
1,276.71
553.03
1,829.74
660.22
660.22
365
365
1,276.71
1,578.25
2,854.96
2005-2006
1,276.71
553.03
1,829.74
660.22
660.22
365
365
1,276.71
1,578.25
2,854.96
2006-2007
1,266.21
534.67
1,800.88
659.33
659.33
374.83
374.83
1266.21
1568.83
2,835.04
2007-2008
1,266.21
534.67
1,800.88
659.33
659.33
374.83
374.83
1266.21
1568.83
2,835.04
2008-2009
1,266.21
534.67
1,800.88
659.33
659.33
374.83
374.83
1266.21
1568.83
2,835.04
2009-2010
1,266.21
534.67
1,800.88
659.33
659.33
374.83
374.83
1,266.21
1,568.83
2,835.04
Total
West Zone
1,935.16
923.07
553.03
1,832.12
1,279.09
553.03
2001-2002
1,276.71
2002-2003
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Table A.4 Operating Revenue of BR (BR Information Book, 2012) Year
Revenue from passengers carried (Thousand Taka)
Revenue per passengers (Taka)
1969-70 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
101711 1003634 1,120,408 1312884 1458223 1565716 1589163 1611062 1732435 1661041 1749986 1831477 2240468 2715962 2917686 3215503 3509663
1.38 26.77 29.25 36,23 37.74 37.99 41.05 41.14 39.89 39.31 39.31 40.03 41.63 41.77 44.45 50.61 53.06
Revenue per passengers KM (poisa) 3.04 26.29 28.61 34.63 35.79 35.93 38.65 38.54 38.2 38 38 38.19 38.5 38.47 38.58 38.6 38.55
Revenue from freight tonnes carried (000)
Revenue per tonne (Taka)
163831 1038536 1180832 1346750 1183530 1307277 1459162 1443246 1339865 1258367 1263845 1241965 1406455 1311236 1163612 1143654 961121
33.54 353.74 388.69 394 409.69 377.28 397.92 393.68 385.79 392.46 413.42 418.59 428.54 435.63 428.74 447.78 438.47
Table A.5 Operating Ratio BR (BR Information Book, 2012) Year
General administ ration
Repair & mainten ance
Operationa l staff
Operationa l Fuel
Operations other than staff & fuel
Mis. expenses
Total operatin g ratio
1969-70 2003-04
13 26
25.9 58.1
13 22.2
14.2 22.9
3.08 12.6
4.32 20.4
83.4 162.2
2004-05
25.3
55.2
23.2
20.7
10.4
21.2
156
2005-06
59.5
61.2
139
27.2
21.7
32.6
216.1
2006-07
30.6
69.6
21.6
35.6
12.2
36.5
206.1
2007-08
24.4
71.1
10.8
33.3
19.3
34.9
193.8
2008-09
24.2
63.6
11.4
35.4
16.4
36.5
187.5
2009-10
30.5
76.6
14.3
36.3
17.5
46.8
222
2010-11
37.3
71.9
13.2
33.4
20.2
60.9
236.9
2011-12
33
80
12.7
42.4
21
70.6
259.7
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A.6 Passenger KM of Indian Railway (IR Information Book, 2011) Year
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 2008-09 2009-10 2010-11
Suburban (all classes) 6,551 11,770 22,984 41086 59578 88872 119842 124836 130,917 137127
Upper class
Mail/ Exp.#
3,790 3,454 4,394 5140 8712 26315 40948 49468 55,182 62203
12,537 22,251 37,856 86712 138054 222568 384785 419649 463,321 500631
Non suburban Second Class 43,639 40,190 52,886 75,620 89,300 119,267 224,381 244,079 254,045 278,547
56,176 62,441 90,742 162,332 227,354 341,835 609,166 663,728 717,366 779,178
Total NonSuburban 59,966 65,895 95,136 167,472 236,066 368,150 650,114 713,196 772,548 841,381
Grand Total in million 66,517 77,665 118,120 208,558 295,644 457,022 769,956 838,032 903,465 978,508
A.7 Route KM of BR, IR and PR (BR, IR and PR Information Book, 2012) Year Bangladesh Railway Indian Railway Pakistan Railway 1969-1970 2,858.23 59,790 8,596.92 1999-2000 2,768.37 61,409 7,823.22 2000-2001 2,768.37 63,028 7,807.11 2001-2002 2,765.99 63,151 7,799.06 2002-2003 2,854.96 63,212 7,795.03 2003-2004 2,854.96 63,242 7,793.01 2004-2005 2,854.96 63,258 7,791.00 2005-2006 2,854.96 63,265 7,791.00 2006-2007 2,835.04 63,269 7,791.00 2007-2008 2,835.04 63,273 7,791.00 2008-2009 2,835.04 64,015 7,791.00 2009-2010 2,835.04 63,974 7,791.00 2010-2011 2791.04 64,460 7791 2011-2012 2877.1 7791 A.8 Track KM of BR, IR and PR (Information Books of BR, IR and PR, 2012) Year Bangladesh Railway Indian Railway Pakistan Railway 1969-1970 4,448.02 98,546 12,247.68 2003-2004 4,442.95 108,706 11,526.10 2004-2005 4,442.95 11,515.00 110153 2005-2006 3,973.49 110875 11,581.00 2006-2007 3,973.49 111237 11,614.00 2007-2008 3,973.49 111,599 11,630.50 2008-2009 3,973.49 113,115 11,638.75 2009-2010 3,973.49 113,617 11,647.00 2010-2011 3,977.73 113,993 11755 2011-2012 3,975.86 11755 137 | P a g e
A.9 MG Coaches and Age Profiles (BR Master Plan, 2009) Age Profile
Number
Percentage
0-5 6-10 11-15
0 67 17
0.0 7.4 1.9
16-20 21-25 26-30 31-35 35> Total
164 208 219 153 80 908
18.1 22.9 24.1 16.9 8.8 100.0
A.10 BG Coaches and Age Profiles (BR Master Plan, 2009) Age Profile 0-5 6-10 11-15 16-20 21-25 26-30 31-35 35> Total
Number 50 0 3 13 7 175 31 45 324
Percentage 15.4 0.0 0.9 4.0 2.2 54.0 9.6 13.9 100.0
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A.11 Summary of BR s target in SFYP and NSAPR-II period (Inputs of Bangladesh Railway for Sixth Five year Plan, 2011-15) Sl No.
Items Name
1 2.
3. 5. 6.
Construction of New rail lines line or reopening of closed rail lines. Double tracking of tracks.
Rehabilitation /up-gradation existing rail lines Construction of ICD. (capacity 3,54,000TEUs) Procurement of Rolling stocks DE locomotives passenger coaches
of
SFYP targets (2011-15) 913 km
NSAPR-II targets(2009-11) 77.19 km
213 Km and 2 nos. bridges 140 2 Km 1no . 186 nos. 450 nos.
-
375 km 1 no.
21 nos 50 nos
Wagons 1403 nos. 160 nos 7. Procurement of rail cars (20+20)=6 30 sets (DEMU/DMU) for introducing 0 sets modern commuter trains in urban areas 8. Modernization of signaling 113 Nos. 25 nos system Stations 9. Construction of 2ndJamuna 1 no. Rail Bridge at Phulchuri-Bahadurabad point A.12 Ongoing Bangladesh Railway projects (Summary of The Progress of Ongoing Projects of Bangladesh Railway, 2013) SI. no
1
A.
B.
2
Name of the projects
INVESTMENT PROJECTS BANGLADESH RAILWAY IMPROVEMENT PROJECT (APPROVED)
Estimated Cost Total PA Local SECTOR
228800.60 160571.90 68228.70
CONSTRUCTION OF DOUBLE LINE BETWEEN TONGI & BHAIRABBAZAR WITH SIGNALLING SYSTEM (Implementation Period : 01-07-2006 to 31-122014) REFORMS OF BANGLADESH RAILWAY (Implementation Period : 01-07-2006 to 30-062012)
203675.60 140471.90 63203.70
PROCUREMENT OF 1 BG & MG MIXED UNDERFLOOR WHEEL LATHE MACHINE (APPROVED) (Implementation Period : 01-07-2006 to 30-06-2014)
25125.00 20100.00 5025.00 2032.60 0.00 2032.60
Target 20122013
Cumulative since beginning
28.00 (%)
40.70 (%)
27.86 (%)
55.09 (%)
2.00 (%)
100.00 (%)
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SI. no 3
4
5
6
7
Name of the projects
REHABILITATION OF FOUZDARHATCGPY-SRV-CTG SECTIONS IN EAST ZONE OF BR (APPROVED) (Implementation Period : 01-07-2007 to 30-06-2013) REHABILITATION OF RAJSHAHIROHANPUR BORDER & AMNURACHAPAINAWABGANJ SECTIONS OF BR (Implementation Period : 01-07-2007 to 30-062012) (Approved) REHABILITATION OF LALMONIRHATBURIMARISECTIONS OF BR (APPROVED) (PDAddl.CE(B)/W)(Implementation Period : 0107-2007 to 30-06-2012) REMODELLING OF KHULNA RAILWAY STATION & YARD AND DEVELOPMENT OF OPERATIONAL FACILITIES OF BENAPOLE RAILWAY STATION (Implementation Period : 01-07-2007 to 30-062012) DHAKA-CHITTAGONG RAILWAY DEVELOPMENT PROJECT (APPRO.)
(A)
IMPROVEMENT OF PAHARTALI WORKSHOP (APPROV) (Implementation Period : 01-07-2007 to 30-06-2014)
(B)
PROCUREMENT OF 11 NOS. MG LOCOMOTIVES (Implementation Period : 01-07-2007 to 30-06-2016)
(C)
CONSULTING ENGINEERING SERVICES FOR DHAKA CHITTAGONG DEVELOPMENT PROJECT & SKILL DEVELOPMENT PROGRAM (Implementation Period : 01-07-2007 to 30-062013) TRACK DOUBLING BETWEEN LAKSAM AND CHINKI ASTANA (Implementation Period : 01-07-2007 to 30-06-2015) CHITTAGONG STATION YARD EMODELLING (Implementation Period : 0107-2007 to 30-06-2014)
(D)
(E) XX 8
9
10
REHABILITATION OF GOURIPURJARIAJHANGAIL AND SHAMGANJMOHANGANJ SECTIONS OF BR (APPRO) (Implementation Period : 01-07-2007 to 30-062012) REHABILITATION OF 200 MG & 60 BG PASSENGER COACHES OF BANGLADESH RAILWAY (APPROVED) (Implementation Period : 01-01-2009 to 30-062013) EXPORT INFRASTRUCTURE DEVELOPMENT PROJECT (APPROVED)
Estimated Cost Total PA Local 8722.49 0.00 8722.49
Target 20122013 12.70 (%)
Cumulative since beginning 98.30 (%)
15546.70 0.00 15546.70
4.88 (%)
99.05 (%)
17470.25 0.00 17470.25
2.44 (%)
99.20 (%)
4010.00 0.00 4010.00
35.00 (%)
45.13 (%)
152532.08 59722.80 92809.28
40.00 (%)
42.00 (%)
25171.94 6219.71 18952.23 18090.22 0.00 18090.22
40.00 (%)
32.00 (%)
7.00 (%)
98.00 (%)
254073.19 123242.96 130830.23 14618.87 11378.82 3240.05 48073.15 33537.28 14535.87 13677.15 12384.35 1292.80
12226.00 0.00 12226.00 114043.00 85063.00
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SI. no
11
12
13
14
15
16
17
18
Name of the projects
(Impl. Period : 01-07-2009 to 30-06-2013) BALANCE WORK OF REHABILITATION OF MAIN LINE SECTION OF B.R. (WEST ZONE) (APPROVED) (Implementation Period : 01-07-2009 to 31-12-2013) REHABILITATION OF SAIDPURCHILAHATI SECTIONS OF BR (APPROVED) (Implementation Period : 0101-2009 to 31-12-2012) REHABILITATION & MODERNIZATION OF SIGNALLING SYSTEM OF 13 STATIONS AT JOYDEBPUR-MYN SECTION (Impl. Period : 01-07-2010 to 3006-2014 (1st Revised)) APPROVED) CONSTRUCTION OF PACHURIAFARIDPUR-BHANGA SECTIONS OF OF BR (APPROVED) (Implementation Period : 01-07-2010 to 30-062013) JDCF PROJECTS : CONVERSION OF PARBATIPURKANCHAN-PANCHAGARH & KANCHAN-BIROL METRE GAUGE SECTION INTO DUAL GAUGE SECTION AND BIROL-BIROL BOARDER SECTION INTO BROAD GAUGE SECTION OF B.R. (Approved) (Implementation Period : 01-022009 to 30-06-2013) REHABILITATION OF MYMENSINGJAMALPUR-DEWANGANJ BAZAR SECTION OF BANGLADESH RAILWAY (App) (Implementation Period : 01-03-2009 to 31-12-2013) MODERNIZATION OF SAIDPUR RAILWAY WORKSHOP (Approved) (Implementation Period : 01-03-2009 to 30-062013) PROCUREMENT OF 1 NO. 60 M.TON CAPACITY MG & 1 NO. 80 M.TON CAPACITY BG CRANE FOR ACCIDENT RELIEF TRAIN (Approved) (Implementation Period : 15-03-2009 to 30-09-2012) Sub-Total of Investment Projects -
19
NEW INVESTMENT PROJECTS : CONSTRUCTION OF SINGLE LINE MG RAILWAY TRACK FROM DOHAZARI TO COX'S BAZAR VIA RAMU AND RAMU TO GUNDUM NEAR MYANMER (Implementation Period : 01-07-2010 to 31-122013)
Estimated Cost Total PA Local 28980.00 14987.32 0.00 14987.32
Target 20122013
Cumulative since beginning
50.00 (%)
72.00 (%)
18509.00 0.00 18509.00
42.48 (%)
77.26 (%)
10748.49 0.00 10748.49
13.60 (%)
14.45 (%)
26747.34 0.00 26747.34
41.05 (%)
66.11 (%)
98171.00 0.00 98171.00
23.00 (%)
72.47 (%)
21298.00 0.00 21298.00
16.00 (%)
94.25 (%)
12222.00 0.00 12222.00 10715.70 0.00 10715.70
2 Nos.
888413.90 368877.86 519536.04
185235.00 81547.35 103687.65
0.05 (%)
0.55 (%)
141 | P a g e
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Name of the projects
20
PROCUREMENT OF 165 NOS. BG BTO TANK WAGON & 6 NOS. BG BV AGAINST PROCUREMENT OF 180 NOS. BG BTO TANK WAGON & 6 NOS. BG BV FOR BR(Implementation Period : 01-08-2010 to 30-06-2013) PROCUREMENT OF 125 NOS. BG COACHES (Implementation Period : 01-08-2010 to 30-062013) PROCUREMENT OF 10 NOS. BG LOCOMOTIVES (Implementation Period : 01-08-2010 to 30-06-2013)
21
22
23
24
25
26
27
28
29
30
31
PROCUREMENT OF 50 NOS. MG FLAT WAGON (FACT) & 5 NOS. MG BRAKE VAN WITH AIR BRAKE FOR CARRYING CONTAINER (APPROVED) (Implementation Period : 01-08-2010 to 30-06-2013) REHABILITATION OF KALUKHALIBHATIAPARA SECTION AND ONSTRUCTION OF KASHIANIGOPALGANJ-TUNGI PARA NEW RAIL LINE(Implementation Period : 01-10-2010 to 30-06-2013) CONSTRUCTION OF A NEW RAILWAY LINE FROM ISHURDI TO DHALARCHAR VIA PABNA (Implementation Period : 01-102010 to 31-12-2013) REHABILITATION OF LAKSHAMCHANDPUR SECTION OF BANGLADESH RAILWAY (Implementation Period : 01-10-2011 to 30-062013) CONSTRUCTION OF 2ND BHAIRAB & 2ND TITAS BRIDGES WITH APPROACH RAIL LINES (Implementation Period : 01-112010 to 30-06-2014) PROCUREMENT OF 150 NOS. MG PASSENGER CARRIAGES (Implementation Period : 01-12-2010 to 30-06-2012) CONSTRUCTION OF KHULNA-MONGLA PORT RAIL LINK INCLUDING FEASIBILITY STUDY (Implementation Period : 31-12-2010 to 31-12-2013) PROCUREMENT OF 170 NOS. MG FLAT WAGON (BFCT) & 11 NOS. MG BOGIE BRAKE VAN (BBV) WITH AIR BRAKE SYSTEM FOR CARRYING CONTAINER(Implementation Period : 01-122010 to 30-06-2012) PROCUREMENT OF 264 NOS. MG ASSENGER CARRIAGES & 2 NOS. BG INSPECTION CAR (FCH) (Implementation Period : 01-12-2010 to 31-12-2012)
Estimated Cost Total PA Local 19540.67 13789.57 5751.10
Target 20122013 165 BTO 6 BBV
Cumulative since beginning 150 BTO 90.91% 5 BBV
35325.00 24512.00 10813.00 20861.00 14848.00 6013.00 3138.00
55 Nos.
2023.00 1115.00 110113.00 0.00 110113.00
55.00 (%)
24.14 (%)
98287.00 0.00 98287.00
35.00 (%)
11.10 (%)
16867.00 0.00 16867.00
50.00 (%)
36.00 (%)
95921.00 82620.00 13301.00
0.98 (%)
1.55 (%)
55631.00
150 Nos.
39766.00 15865.00 172139.00 120231.00 51908.00 9661.00
0.46 (%)
0.37 (%)
181 Nos.
6622.00 3039.00 98325.00
266 Nos.
68842.00 29483.00
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Name of the projects
32
REHABILITATION OF SHOLOSAHARDOHAZARI & FATEABAD -NAZIRHAT SECTION INCLUDING OTHER ALLIED WORKS (Implementation Period : 01-01-2011 to 30-06-2013) PROCUREMENT OF 30 NOS. BG GAUGE ELECTRIC LOCOMOTIVES (Implementation Period : 01-12-2010 to 30-062013) PROCUREMENT OF 10 NOS. (3 UNIT SET) DIESEL ELECTRIC MULTIPLE UNIT (DEMU) OF BANGLADESH RAILWAY (Implementation Period : 01-12-2010 to 30-062013) PROCUREMENT OF 100 NOS. MG BOGIE TANK WAGON & 5 NOS. BG BRAKE VAN WITH AIR BRAKE SYSTEM FOR CARRYING AVIATION FUEL(Implementation Period : 01-12-2010 to 30-06-2013) PROCUREMENT OF 20 SETS (3 UNIT SET) DIESEL ELECTRIC MULTIPLE UNIT (DEMU) OF BANGLADESH RAILWAY (Implementation Period : 01-01-2011 to 30-062014) REHABILI. OF KULAURA-SHAHBAZPUR SECTION OF BR (APPROVED) (Impl. Period : 30-06-2011 to 31-12-2012)
33
34
35
36
37
38
39
40
FEASIBILITY STUDY FOR CONSTRUCTION OF A MG RAILWAY LINE FROM NAZIRHAT TOPANUA (APPROVED) (Impl. Period : 01-04-2011 to 29-02-2012) PROCUREMENT OF 70 NOS. MG DE LECTRIC LOCO FOR BR (APPROVED) (Impl. Period : 30-06-2011 to 30-06-2017) FEASIBILITY STUDY FOR CONSTRUCTION OF RAILWAY LINE, LINE FROM NAVAROON TO MUNSHIGANJ VIA SATKHIRA (APPROVED) (Impl. Period : 01-07-2011 to 31-12-2012)
Estimated Cost Total PA Local 20350.00 0.00 20350.00
Target 20122013 40.00 (%)
Cumulative since beginning 54.00 (%)
60780.00 42505.00 18275.00 33132.00 23086.00 10046.00 7708.00
84 Nos.
5185.00 2523.00 65443.00 0.00 65443.00
100.00 (%) (20 sets)
70.00 (%) 14 sets
11768.00 0.00 11768.00 198.00 0.00 198.00 194589.00 0.00 194589.00 1156.00 0.00 1156.00
100.00 (%)
New Projects : 41
SECTOR DEVELOPMENT OF BANGLADESH RLY. UNDERADB'S 2ND PFR (APPROVED) (Impl. Period : 01-07-2012 to 30-06-2015)
28079.00 15844.00 12235.00
a) REHABILITATION OF STATION YARD & EXTENSION OF LOOP LINES OF IFFERENT STATIONS IN DARSANAINHURDI-SIRAJGANJ BAZAR SECTION OF BR. (Impl. Period : 01-07-2012 to 30-06-
7677.00 0.00 7677.00
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42
43
44
Name of the projects
2015) b) IMPROVEMENT OF SIGNALLING SYSTEM OF 11 STATIONS IN DARSANAISHURDI SECTION OF BR. (Impl. Period : 01-07-2012 to 30-06-2015) c) TECHNICAL ASSISTANCE FOR UPERVISION CONSULTANCY SERVICES FOR BR SECTOR IMPROVEMENT (PHASE-II) (Impl. Period : 01-07-2012 to 30-06-2015) MODERNIZATION & REPLACEMENT OF EXISTING SIGNALLING SYSTEM OF 11 STATIONS IN CHINKI ASTANA CHITTAGONG SECTION IN EAST ZONE OF BANGLADESH RAILWAY (Impl. Period : 01-07-2012 to 30-06-2015) CONSTRUCTION OF 3RD & 4TH DUAL GAUGE LINE IN DHAKA- TONGI AND DUAL GAUGE DOUBLE LINE IN DHAKAJOYDEVPUR SECTION OF BANGLADESH RAILWAY (Impl. Period : 01-07-2012 to 30-06-2015) COMPLETE TRACK RENEWAL OF WORK-OUT RAILS AND OTHER ALLIED WORKS IN CHINKI ASTANA-ASHUGANJ SECTION OF BANGLADESH RAILWAY (Impl. Period : 01-07-2012 to 31-12-2014)
Sub-Total of New Investment Projects -
Total of Investment Projects =
Estimated Cost Total PA Local
Target 20122013
Cumulative since beginning
17604.00 13406.00 4198.00 2798.00 2438.00 360.00 22468.00 18040.00 4428.00
84860.00 69590.00 15270.00
23392.00 0.00 23392.00
1474966.67 629050.92 845915.75 2363380.57 997928.78 1365451.79
T. A. PROJECT : 1
2
3
TECHNICAL ASSISTANCE FOR INSTITUTIONAL SUPPORT OF BR (APPROVED) (Implementation Period : 0107-2007 to 30-06-2013) TECHNICAL ASSISTANCE FOR FEASIBILITY STUDY, SAFEGUARD POLICY STUDY, DETAILED ENGINEERING DESIGN & TENDERING SERVICES FOR PROJECT UNDER WORLD BANK FUNDING FOR BANGLADESH RLY.(Approved) (Implementation Period : 0105-2008 to 10-08-2011) TECHNICAL ASSISTANCE FOR PROJECT PREPARATION TOWARDS IMPLEMENTATION OF "EXPORT INFRASTRUCTURE DEVELOPMENT PROJECT"
1598.00 1394.00 204.00 1382.00 1222.00 160.00
1102.46 1011.24 91.22
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4
Name of the projects
UNDER WORLD BANK (WB) FINANCING. (Approved) (Implementation Period : 01-072008 to 31-03-2010) TECHNICAL ASSISTANCE FOR SUBREGIONAL RAIL TRANSPORT PROJECT PREPARATORY FACILITIES (Approved) (Implementation Period : 01-01-2011 to 30-062013) Sub-Total of T.A. Project -
GRAND TOTAL OF INVESTMENT & TA PROJECTS -
Estimated Cost Total PA Local
Target 20122013
Cumulative since beginning
10758.00 8319.00 2439.00
37.02 (%)
20.00 (%)
152532.08 59722.80 92809.28
40.00 (%)
33.00 (%)
25171.94 6219.71 18952.23
60.00 (%)
19.00 (%)
203675.60 140471.90 63203.70
28.08 (%)
19.25 (%)
152532.08 59722.80 92809.28
40.00 (%)
26.00 (%)
23.00 (%)
66.47 (%)
14840.46 11946.24 2894.22 2378221.03 1009875.02 1368346.01
1
DHAKA-CHITTAGONG DEVELOPMENT PROJECT
(A)
IMPROVEMENT OF PAHARTALI WORKSHOP (APPROV) (Implementation Period : 01-07-2007 to 30-06-2014)
(B)
PROCUREMENT OF 11 NOS. MG LOCOMOTIVES (Implementation Period : 01-07-2007 to 30-06-2016)
(C)
CONSULTING ENGINEERING SERVICES FOR DHAKA CHITTAGONG DEVELOPMENT PROJECT & SKILL DEVELOPMENT PROGRAM(Implementation Period : 01-072007 to 30-06-2013) TRACK DOUBLING BETWEEN LAKSAM AND CHINKI ASTANA (Implementation Period : 01-07-2007 to 30-06-2015) CHITTAGONG STATION YARD REMODELLING (Implementation Period : 01-07-2007 to 30-06-2014)
(D)
(E)
1
2
3
4
RAILWAY
CONSTRUCTION OF DOUBLE LINE BETWEEN TONGI & BHAIRABBAZAR WITH SIGNALLING SYSTEM (Implementation Period : 01-07-2006 to 31-122014) TRACK DOUBLING BETWEEN LAKSAM AND CHINKI ASTANA (Implementation Period : 01-07-2007 to 30-06-2015) EXPORT INFRASTRUCTURE DEVELOPMENT PROJECT (APPROVED) (Impl. Period : 01-07-2009 to 30-06-2013) CONVERSION OF PARBATIPURKANCHAN-PANCHAGARH &
254073.19 123242.96 130830.23 14618.87 11378.82 3240.05 48073.15 33537.28 14535.87 13677.15 12384.35 1292.80
114043.00 85063.00 28980.00 98171.00 0.00
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5
6
7
8
9
10
Name of the projects
KANCHAN-BIROL METRE GAUGE SECTION INTO DUAL GAUGE SECTION AND BIROL-BIROL BOARDER SECTION INTO BROAD GAUGE SECTION OF B.R. (Approved) (Implementation Period : 01-022009 to 30-06-2013) CONSTRUCTION OF SINGLE LINE MG RAILWAY TRACK FROM DOHAZARI TO COX'S BAZAR VIA RAMU AND RAMU TO GUNDUM NEAR MYANMER (Implementation Period : 01-07-2010 to 31-122013) REHABILITATION OF KALUKHALIBHATIAPARA SECTION AND CONSTRUCTION OF KASHIANIGOPALGANJ-TUNGI PARA NEW RAIL LINE(Implementation Period : 01-10-2010 to 30-06-2013) CONSTRUCTION OF A NEW RAILWAY LINE FROM ISHURDI TO DHALARCHAR VIA PABNA (Implementation Period : 01-102010 to 31-12-2013) CONSTRUCTION OF KHULNA-MONGLA PORT RAIL LINK INCLUDING FEASIBILITY STUDY (Implementation Period : 31-12-2010 to 31-12-2013) PROCUREMENT OF 264 NOS. MG PASSENGER CARRIAGES & 2 NOS. BG INSPECTION CAR (FCH) (Implementation Period : 01-12-2010 to 31-12-2012) PROCUREMENT OF 70 NOS. MG DE ELECTRIC LOCO FOR BR (APPROVED) (Impl. Period : 30-06-2011 to 30-06-2017)
TOTAL =
Estimated Cost Total PA Local 98171.00
Target 20122013
Cumulative since beginning
185235.00 81547.35 103687.65
0.05 (%)
0.55 (%)
110113.00 0.00 110113.00
55.00 (%)
20.60 (%)
98287.00 0.00 98287.00
35.00 (%
8.79 (%)
172139.00 120231.00 51908.00
2.78 (%)
0.21 (%)
98325.00
266 Nos.
68842.00 29483.00 194589.00 0.00 194589.00
1427109.68 555878.05 871231.63
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A.13 Costs of Building HSR Infrastructure by Country (Source: HSR Database. Elaborated From UIC, 2005b) Country Belgium China France
Germany
Italy
Japan
Korea Spain Taiwan Austria
Belgium China France Germany
HSR Project name Brussels - French border Qinhuangdao – Shenyang TGV Sud-Est (Paris-Lyon) TGV Atlantique (Paris-ToursLe Mans) TGV Nord (Paris-BrusselsLondon-Cologne) TGV Rhône-Alpes (LyonValence) TGV Intersecteur TGV Méditerranée (ValenceMarseille) Hannover - Würzburg Hannover - Berlin Kohl - Frankfurt Ausbourg - Munich Berlin - Leipzig Rome - Naples Florence - Rome Fortezza - Verona Tokyo - Osaka Osaka - Hakata Omiya - Morioka Tokyo- Niigata Seoul – Taegu Madrid - Seville Madrid - Lleida Taipei - Kaohsiung Kufstein - Innsbruck Attnang - Sankt Pölten Sankt Pölten - Vienne Brussels - German border Beijing - Shanghai LGV Est Perpignan - Figueras Berlin (Lehrter Bahnhof) – Berlin (Ludwigsfel) Leipzig - Nuremberg Nuremberg - Munich
Length (km) 88 404.6 417 282
Infrastructure investment (in € mill., 2005) 1,420.0 4,046.0 1,977.6 2,225.2
333
3,330.0
122
1,293.0
102 295
1,020.0 3,800.0
425 264 215 62 205 204 254 190 515 554 466 300 409 471 481 346 70 186 50 139 1,337 344 44 26
7,883.4 5,550.5 6,212.6 560.4 1,637.4 5,200.0 5,080.0 590.3 2,805.9 11,103.9 20,935.8 12,129.5 13,980.8 3,860.3 4,970.7 13,651.8 2,028.1 3,447.7 1,980.0 1,810.0 9,868.8 1,400.0 1,016.2 2,084.6
192 123
6,327.5 2,653.5 147 | P a g e
Country
Italy
Netherlands Spain
HSR Project name
Length (km) 69 200 125 24 182 79 113 102 374
Belgium border - Köln Saarbrücken – Mannheim Turin – Milan Verona – Venice Milan – Bologne Bologne – Florence Verona – Bologne Amsterdam - Belgium border Lleida – Barcelona - French border Cordoba - Málaga Madrid - Segovia
Infrastructure investment (in € mill., 2005) 533.7 195.3 7,000.0 470.0 6,400.0 5,200.0 600.0 4,454.2 4,923.4
155 37
1,846.9 645.8
Table A.14 Costs Of Infrastructure Maintenance By Country (In 2002 Euros Per Kilometre Of Single Track), (Source: Elaborated From UIC (2005b). HS = High Speed Network; CN = Conventional Network)
Belgium HS Km of single track Maintenance of track
142
France
CN 7,446
HS
CN
2,638 20,475
Netherlands
Spain
HS
CN
HS
CN
190
5,001
949
-
37,246
13,531
-
13,841 26,524 19,140 26,630 38,213
Electrification
2,576
3,895
4,210
6,330
7,165
5,156
2,986
-
Signalling
3,248
7,185
5,070
8,550 11,942
8,968
8,654
-
Telecommunications
1,197
0
0
0
5,637
-
Other costs
10,821
0
0
0
14,330
8,533
2,650
-
Total maintenance cost
31,683 37,604 28,420 41,510 71,650
59,903
33,457
-
0
0
148 | P a g e
LIST OF REFERENCES ESCAP Report (2003) “the restructuring of railways” published by Economic and Social Commission for Asia and the Pacific, United Nations, New York World Bank database 2006, web.worldbank.org; data.worldbank.org Md. Saidur Rahman (2006), “Re-Orientation of Bangladesh Railway: A Market Integration Study” BTSS (1994) Bangladesh Transport Sector Study, Govt. of Bangladesh DITS (1994b) Greater Dhaka Metropolitan Area Integrated Transport Study, Final Report, Planning Commission and Department of Economic and Social Development, Government of Bangladesh. BRMP (2009) Bangladesh Railway Master Plan, Final Report, Govt. of Bangladesh SFYP (2011-15) Inputs of Bangladesh Railway for Sixth Five year Plan, Ministry of Railway. Planning Commission (1994), Bangladesh Transport Sector Study, Final Report, Volume-I, Government of the People’s Republic of Bangladesh. Planning Commission (1997), Bangladesh Integrated Transport Study, Draft Final Report, Transport Survey Wing, Physical Infrastructure Division, Government of Bangladesh. en.wikipedia.org/wiki/Indian_Railways en.wikipedia.org/wiki/Pakistan_Railways en.wikipedia.org/wiki/High-speed_rail Bangladesh Railway (1996), Information Book, Ministry of Communications, Roads and Railways Division, Rail Bhaban, Dhaka. Bangladesh Railway (2007), Information Book, Ministry of Communications, Roads and Railways Division, Rail Bhaban, Dhaka Bangladesh Railway (2012), Information Book, Ministry of Railway, Rail Bhaban, Dhaka Indian Railway (2011), Information Book, Ministry of Railway, Govt. of India Pakistan Railway (2011), Information Book, Ministry of Railway, Govt. of Pakistan European Commission (1996), Council Directive 96/48/EC on the interoperability of the transEuropean high speed rail system, 23 July 1996. Brussels.
Page | 133
Javier Campos, Ignacio Barrón and Ginés de Rus (2006), “Some Stylized Facts about High Speed Rail around the World: An Empirical Approach” published in 4th Annual Conference on Railroad Industry Structure, Competition and Investment Universidad Carlos III de Madrid, October 19-21, 2006 Working Time Table No. 43(2005), Bangladesh Railway Louis Thompson (2010), “A Vision for Railways in 2050”, Forum Papers published in International transport Forum. T. Nicolaus Tideman and Florenz Plassmann (2010), “Marginal Cost Pricing and Efficient Taking under Uncertainty” Bangladesh Development Forum Meeting (2010), forum paper, Govt. of Bangladesh, Ministry of Communication, Roads and Highway Division. Levinson, D., J.M. Mathieu, D. Gillen and A. Kanafani (1997): “The full cost of high speed rail: an engineering approach”, The Annals of Regional Science, 31, 189215 Summary of the Progress of Ongoing Projects of Bangladesh Railway, May 2013 UIC (2005a) High Speed. Rail’s leading asset for customers and society. UIC Publications. November 2005. Paris. Accessible at www.uic.asso.fr
Page | 134
APPENDIX A-1: Historical Events of Bangladesh Railway
15 November 1862: construction of 53.11 kms of Broad Gauge (BG) line between Darsana and Jagati of Kushtia district by Eastern Bengal Railway. 1 January 1871: Extention of Darsana-Jagati railway line up to Goalanda by Eastern Bengal Railway. 1882-84: Bengal Central Railway Company constructed Benapole-Khulna BG railway line. 1 July 1884: Government took over the management of Eastern Bengal Railway. 4 January 1885: Railway Meter Gauge (MG) connection between Dhaka and Narayangonj, a distance of 14.98 kms by Dhaka State Railway, which was later on merged with Eastern Bengal State Railway. 1885: Construction of Dhaka-Mymensingh railway section by Dhaka State Railway. 1 April 1887: Eastern Bengal Railway was merged with Northern Bengal State Railway. 1891: Construction of the Assam-Bengal Railway taken up with British Government assistance but was later on taken over by Assam-Bengal Railway Company. 1 July 1895: opening of 149.89 kms MG lines between Chittagong and Comilla and 50.89 kms MG lines between Laksam and Chandpur by AssamBengal Railway. 3 November 1895: Chittagong to Chittagong Port line was constructed. 1896: Construction of MG line from Comilla to Akhaura and Akhaura to Karimgonj. 1897: Single line section between Darsana and Poradaha converted into double line section. 1898-1899: Mymensingh-Jagannathgonj MG railway line was constructed. 1899-1900: MG railway line was constructed between Santahar Junction to Fulchhari by Brahmaputra-Sultanpur Railway Company. 1903: Laksam-Noakhali section constructed by Noakhali (Bengal) Railway Company. 1 April 1904: Bengal Central Railway Company and Brahmaputra-Sultanpur Railway Company taken over by Government managed Eastern Bengal Railway. 1905: Opening of Kaunia-Bonarpara MG section and Government purchased the Noakhali (Bengal) Railway Company. 1 January 1906: Noakhali (Bengal) Railway Company merged with AssamBengal Railway. 1909: Poradaha-Bhairamara single line converted into double line. 1910-1914: Akhaura-Tongi section opened. Conversion of Shakole to Santahar MG section into BG. 1912-1915: Kulaura-Sylhet section opened. 1 January 1915: Hardinge Railway Bridge was opened over the river Padma at Paksey. 1915-1916: Sara-Sirajgonj line constructed by Sara-Sirajgonj Railway Company. 1916: Bhairamara-Raita BG section opened. 1912-1918: Gouripur-Mymensingh-Netrokona and Shamgonj-Jhariajanjail sections constructed by Mymensingh-Bhairab Bazar Railway Company. 1915-1932: Bhairamara-Irshurdi-Abdulpur single line section converted into double line. Page | 149
10 June 1918: Rupsha-Bagerhat Narrow Gauge (NG) section constructed by a Branch line company. July 1924: Conversion of Santahar-Parbatipur MG section into BG. September 1926: Conversion of Parbatipur-Chilahati MG section into BG. 1928: opening of Shaistagonj-Habigonj section. 1928-29: Tista-Kurigram NG section converted into BG. 1929: Shaistagonj-Balla and Chittagong-Hathazari sections opened. 1930: Hathazari-Nazirhat MG qnd Abdulpur-Amnura BG sections opened. 1931: Sholashahar-Dohazari section opened. 6 December 1937: Opening of King VI George Bridge connecting Bhairab Bazar and Ashugonj over the river Meghna. 1941: Jamalpur-Bahadurabad MG section opened. 1 January 1942: Assam-Bengal Railway taken over by Government and amalgamated with the Eastern Bengal Railway under the name “Bengal and Assam Railway”. 1 October 1944: Government took over Sara-Sirajgonj Railway Company. 1947: Bengal and Assam Railway was split up and the portion within the boundary of erstwhile East Pakistan was named as “Eastern Bengal Railway”, the control remaining with Central Government of Pakistan. 1948-1949: Government taken over Mymensingh-Bhairab Bazar Railway Company and Rupsa-Bagerhat Branch Line Company. 21 April 1951: Jessore-Darsana Railway line opened to traffic. October 1954: Sylhet to Chatak Bazar railway line opened to traffic. 1 February 1961: Eastern Bengal Railway renamed as Pakistan Eastern Railway. 1962: A Railway Board was formed and management of Railway was placed under the Provincial Government. 1972: Pakistan Eastern Railway renamed as Bangladesh Railway. 23 June 1998: BG railway line extended from Jamtail to Ibrahimabad via Jamuna Multipurpose Bridge. 14 August 2003: Inauguration of direct Intercity train Service from Rajshahi to Joydebpur (Dhaka) via Jamuna Multipurpose Bridge.
Page | 150
Table A-2: Bangladesh Railway Information Mirror Serial # 1 2 3 4 5 6 7 8
9 10 11
Particulars Total Route Kilometers Total Track Kilometers Number of Stations Passenger Carried (Million) Passenger-Kilometers (Million) Freight Carried (Million Tons) Tons-Kilometers (Million) Total Operating Revenue (Million Tk.)- without considering PDO & Welfare Grants Total Operating Revenue (Million Tk.)-Considering PDO & Welfare Grants Total Operating Expenses (Million Tk.) Revenue per Passenger-km (Paisha)
12 13 14
Revenue per Ton-km (Paisha) Number of Employees Cost of Employees (Million Tk.)
15
Total Land (Acres)
2011-12 2877 3975.86 444 66.14 8787 2.19 582 6034.29
7264.25 15671.16 38.6 158.8 26458 5659.2 East Zone: 24094.087, West Zone: 37505.64
Source: Railway Information Books, 2012
Page | 151
Country
China Russia India Total Estonia Latvia Lithuania Bulgaria Czech Republic Slovakia Hungary Poland Romania Slovenia EU 10 Total Portugal Spain Austria Belgium Denmark Finland France Greece Ireland Italy
Gauge
Year
Total route KM
Std RB RB RB RB Std Std Std Std Std Std Std
2005 2005 2007 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005
B B Std Std Std Std Std Std Std Std
2005 2005 2005 2005 2005 2005 2005 2005 2005 2005
62,200 85,245 63,273 959 2,375 1,772 4,154 9,513 3,659 7,730 19,507 10,781 1,228 61,678 2,839 14,484 5,690 3,542 2,212 5,732 29,286 2,576 1,919 16,225
Passengers Passenger (000) KM (Million)
1,106,510 1,338,723 6,524,377 5,200 25,900 6,700 33,700 178,200 49,100 120,400 218,000 91,500 15,700 744,400 130,600 610,700 191,600 186,600 152,400 63,500 962,700 10,000 37,700 516,800
583,320 172,217 769,956 248 894 428 2,389 6,631 2,166 6,953 16,742 7,960 777 45,188 3,412 21,047 8,470 9,150 5,459 3,478 76,159 1,854 1,781 46,144
Freight Tonnes (Million)
Freight TooneKM (Million)
Traffic Density (Million)
2,309.20 1,281.30 727.7 44.8 54.9 49.3 20.3 75.8 47.7 44 155.1 67.5 16.3 575.7 9.6 29.7 81.7 61
1,934,612 1,858,100 480,993 10,311 17,921 12,457 5,164 14,385 9,326 8,537 45,438 16,032 3,245 142,816 2,422 11,586 17,036 8,130
40.7 129.7 3 1.5 68.7
9,706 41,898 613 303 20,131
40.5 23.8 19.8 11 7.9 7.3 1.8 2.2 3.1 2 3.2 2.2 3.3 3 2.1 2.3 4.5 4.9 2.5 2.3 4 1 1.1 4.1
Avg Lgth of haul Frt (KM) 838 1,450 661 230 326 253 254 190 196 194 293 238 199 248 252 390 209 133 238 323 204 202 293
Avg pax trip (km)
527 129 118 48 35 64 71 37 44 58 77 87 49 61 26 34 44 49 36 55 79 185 47 89 152 | P a g e
Netherlands Std Sweden Std Switzerland Std United Kingdom Std Germany Std EU 15 total Mexico Std Canada: Via Rail Std Canada:Canadian Std National Canada:Canadian Std Pacific USA:Amtrak Std USA:All Class I Std Railways North America Total JP conventional C railways JP Shinkansen Std Japan Total BR Tereza Christina M BR EFVM Vitoria M Minas BR MRS B BR Bandeirantes B BR EFC Carajas B BR Ferronorte B Chile B AR FEPSA B
2005 2005 2005 2005 2005
2,813 9,867 3,011 15,810 34,218 150,224 2005 15,747 2005 2005 31,894 2005
321,100 34,900 275,900 1,082,000 1,785,400 6,361,900 6,727 4,097
14,730 5,673 13,830 43,200 72,554 326,941 1,799 1,430
21,962
2005 1,100 2005 153,787
24,164
224,490 2007 9,830
34,988 8,672,166
11,910 226,918
2007
315,778 8,987,944
82,823 309,741
2007 2007
2,387 12,217 235 6,303
2007 2007 2007 2007 2005 2007
4,138 899 5,008 1,413 2,700 2,560
18,591
56.2 103.9 274.6 860.3 59.6
13,120 8,571 22,110 88,022 243,648 72,159
5.2 1.9 7.4 4.1 4.7 3.8 4.7
153 213 321 283 1,210
212.6
262,589
8.2
1,235
120.4
183,100
8.3
1,520
1,723.00
2,478,914
7.9 16.1
1,439
2,115.70 36.2
2,996,762 23,166
13.4 25.4
1,416 640
340 26
36.2 2.6 136.8
23,166 200 75,500
34.7 27.2 0.9 12
640
262 34
114.1 3.5 100.3 6.9 9.8 4.1
52,600 1,900 83,300 9,400 1,671 1,765
12.7 2.1 16.6 6.7 0.9 0.7
8,681
859
46 163 50 40 41 51 267 349
359
461 543 831 1,362 170 428
46
153 | P a g e
AR Ferrosur Roca AR NCA AR BAP (now ALL) AR All BG Pax Concessions BR Centro Atlantico (FCA) BR Novoeste BR Nordeste BR ALL (old FSA) AR Belgrano Antofagasta & Bolivia Boliva-Andina Network Boliva-Oriental Network Peru Colombia AR Mesopotamico AR Urq Cuba Uruguay AR Bel N and S Ukraine Kazakhstan Belarus Georgia Armenia Azerbaijan
B B B B
2007 2007 2007 2007
2,650 3,254 3,000 687
5.5 8.6 4.4
M
2007
5,940
19
14,400
2.4
M M M M M M
2007 2007 2007 2007 1989 1995
879 1,755 5,200 4,940 750 2,274
395
120
2.7 1.8 27.3 0.8 1.7 0.6
1,200 1,000 17,500 739 432 314
1.4 0.6 3.4 0.1 0.6 0.2
261 493
304
M
1995
1,424
355
164
0.8
464
0.4
595
462
M N Std Std Std Std M RB RB RB RB RB RB
1996 1996 2007 2007 1998 2005 2007 2005 2005 2005 2005 2005 2005
1,691 3,154 2,100 32 4,667 3,003 120 22,001 14,204 5,498 1,515 711 2,122
1,225 120
172 15
1.5 1.6 1,571.00
453 471 906
296 296
141 128
26,877 11,000 517 56,157 518,400 15,900 141,000
465 1,452 12 972 52,655 12,129 13,568 720 27 878
4.4 1.3
732 331
166 251
462.4 215.5 125.1 19 2.6 26.5
223,980 171,855 43,559 6,127 654 10,067
0.4 0.2 0.4 14.5 0.5 0.1 8.1 12.6 13 10.4 4.5 1 5.2
132 24 17 102 763 96
339,479
703 5,200
2,076 4,257 3,140
6,548
0.8 1.3 1 9.5
376 495 720 19
484 797 348 322 250 379
38 169 154 | P a g e
Uzbekistan Pakistan Sri Lanka Bangladesh Indonesia Burma (Myanmar) Malaysia Philippines Thailand Viet Nam Mongolia Republic of Korea Malawi South Africa Ghana Namibia TAZARA Zaire Zambia Zimbabwe Cameroun Cote D'Ivoire Ethiopia Kenya Mali Nigeria Senegal Sudan Uganda
RB B B B C M M M M M RB Std M C C C C C C C M M M M M M M M M
2005 2005 2005 2005 2000 1991 2005 2004 2004 2005 2005 2005 1999 2005 2004 1995 2000 2005 1999 1997 1998 1995 1991 2002 2000 2000 2000 2005 2004
4,014 7,791 1,200 2,855 8,500 3,336 1,667 491 4,044 2,671 1,810 3,392 710 20,247 977 2,382 1,860 3,641 1,273 2,759 1,006 639 781 2,634 734 3,557 906 5,478 259
16,100 78,200 114,400 42,254 170,000 53,180 3,700 50,873 12,800 4,300 921,300 349 3,100 2,340 124 1,641 400 830 1,598 1,050 718 4,794 700 1,526 4,300 100
2,012 24,237 4,358 4,164 16,100 3,939 1,181 144 9,332 4,558 1,228 31,004 19 991 85 49 518 140 186 583 357 181 157 288 204 363 138 40
53.8 6.4 1.5 3.2 18 1.8 4 0 13.8 8.7 14.1 44.5 0.3 182.2 1.9 1.8 0.6 1.2 1.6 12 1.9 0.5 2.2 0.8 0.1 1.7 1.3 0.9
18,007 5,013 135 817 4,698 449 1,178 1 4,085 2,928 8,857 10,108 56 109,721 242 1,082 780 444 554 4,871 1,076 312 50 1,538 279 105 371 766 218
5 3.8 3.7 1.7 2.4 1.3 1.4 0.3 3.3 2.8 5.6 12.1 0.1 5.5 0.3 0.5 0.7 0.2 0.6 2 1.4 0.8 0.3 0.7 0.7 0.1 0.6 0.1 0.8
335 782 90 255 261 256 295 382 296 337 628 227 163 602 129 615 1,231 370 339 406 581 645
125 310 38 99 95 74 319
691 349 827 218 589 241
60 291 238 32 400
183 356 286 34 55 320 36 392 316 350 224 365 340 252
155 | P a g e
Tanzania (TRC) Congo--CFCO Gabon Australia
M Std Std Std, C &B New Zealand C Jordan M+ Algeria Std Egypt Std Iran Std Morocco Std Saudi Arabia Std Syria Std Tunisia Std Israel Std Yugoslavia Std Croatia Std Bosnia Std Albania Std Turkey Std FYROM Std Total All Other Railways red italics indicates estimate World Total
2006 2005 2004 2005 1999 2005 2005 2005 2005 2005 2005 2002 2005 2005 2005 2005 2005 2005 2005 2005
2,722 795 731
694 500 217
433 135 92 11,000
1.7 0.6 3.5
1,970 231 1,949 192,700
0.9 0.5 2.8
1,152 385 557
624 270 424
-
3,671 1,024 1,471 3,917 19,127 5,919 1,192 1,812 2,067 1,149 3,482 2,835 1,173 26 9,078 530 1,165,056 8,845,153
0.9 3.5 0.7 8.7 4.2 4.7 1.6 0.9 1.8 3.1 1.1 1.5 1.2 0.2 1.6 0.9 5.6
285 353 177 388 631 180 458 306 192 153 276 198 98 65 479 171 337
34 91 575 161 357 257 36 60 63 32 0 52 66 104 83
8,845,153
12.4
779
88
3,913 293 3,572 27,300 5,150 451,100 7,131 19,400 1,907 18,500 1,020 1,100 2,450 1,417 1,909 36,804 899 26,800 3,809 13,500 2,726 39,800 1,000 1,100 447 1,400 8,697 76,306 699 900 258,311 3,343,434 917,638 28,442,276
73 5,036 94 275,889 2,495,162
12.9 2.9 8.3 10.1 30.3 32.9 2.6 5.9 10.8 7.5 12.6 14.3 12 0.4 18.9 3.1 3,454.40 11,360.50
917,638 28,442,276
2,495,162
11,360.50
929 40,837 11,149 2,987 393 364 1,319 1,618 852 1,266
Traffic density is expressed as the sum of net tonne-km and passenger-km divided by line km. This measure is conventionally called traffic units (TU)/km 156 | P a g e
