Ministry rejects Railways’ proposal to extend lease of trains

The Ministry of Railways has stood against the proposal submitted by the Bangladesh Railways for extending the lease period of 14 trains operated by private companies as the Railways has yet to make any profit from leasing the trains.

The ministry’s decision came after the Parliamentary Standing Committee on Railways recommended that no trains be leased. The ministry has also asked for the lease documents from the Railways for review.

Sources said the Bangladesh Railways raised the issue of extending the lease in a meeting with the ministry last month.

In the meeting, the Railways informed the ministry that lessee companies wanted to renew the lease to recover the losses they incurred during the COVID-19 pandemic when all trains were closed. Railways minister and secretary were present at the meeting.

At present, 14 trains – eight in the eastern region and six in the western region – are running on lease under private management. The existing lease agreement will expire in 2024 and 2025.

According to the lease agreement, the lessees use the railway lines, signals, stations, coaches, engines, fuel, locomasters, train managers and staff of the Railways. They just collect fares and pay to the Railways at the end of the year as per the agreement.

Experts said the Railways should operate trains instead of leasing if it continues to make losses year after year by leasing.

Md Hadiuzzaman, a transport expert and professor of civil engineering at the Bangladesh University of Engineering and Technology, said, “The Railways should run the train under its own management if they incur losses by leasing trains. Then, even if there is no profit, the amount of loss will be reduced. Those who run trains on lease certainly make a profit otherwise they would not have run trains.”

Bangladesh Railways Director General Md Quamrul Ahsan said that they had received instructions from the ministry that to extend the lease period, approval of the Parliamentary Standing Committee will be required.

Railway’s earnings increase from trains managed by it

The Bangladesh Railways operates trains on the Dhaka-Narayanganj route under its own management and the earning from this route is increasing. A large portion of passengers use trains to commute between Dhaka and Narayanganj as it is budget-friendly and time-saving.

According to the Commerce Department of Railways, the average daily income of running eight pairs of local trains on the Dhaka-Narayanganj route was Tk1.41 lakh in 2022 and Tk1.51 lakh in 2023.

This route has proved that the Railway can make a profit even if it operates trains under its own management.

Dishonest officials benefit from lease

Commuters have a series of complaints about the trains run by private management. They said these trains are operated without regard for passengers’ needs.

Atikul Islam, a passenger of the Titas commuter train running on the Dhaka-Brahmanbaria route, said, “They do not sell tickets for short distances. From Dhaka, I have to buy a ticket at least up to Brahmanbaria. Moreover, you cannot have a seat unless you buy two tickets.”

Apart from these, they carry more passengers than the number of seats causing more suffering for passengers. Authorities concerned should look into these problems and take measures against those who are responsible, he added.

Several officials in the Railways and the ministry have also said there is collusion between some railway officials and the lessees. Those corrupt officials are bribed by the lessees. So, they do not take action even if a lessee violates any rule.

Bangladesh Jatri Kalyan Samity Secretary General Mozammel Hoque Chowdhury said, “When the train is run by a private company on lease, the government earns less revenue from passenger fares. The government gets less than it should. The government should stop the lease of trains and take action to identify the dishonest officials of the railways."