BR incurred Tk1,110.52 crore operational loss in the fiscal year 2010-2011 and the lowest was Tk 657.94 crore in the fiscal 2008-2009, according to official figures. The government had spent Tk 38,188 crore in the last eight years, from fiscal year 2009-10 and 2016-17 for the development of railway sector.
Of the total amount, Tk 23,586 crore has been spent to the head of BR’s development expenditure and Tk 14,902 crore non-development expenditure.
The government has approved a 20-year master plan to make BR a modern, time-befitting and comfortable mode of transport. The Railways Ministry has been implementing different mega and fast track projects (Padma Rail Link, Dohazari-Gundum-Cox’s Bazar rail track) involving several billion dollars.
After about 20 years, fares of both passenger and freight were raised by 50 percent in October, 2012, to improve services and reduce railway’s loss, which was Tk 800 crore a year then. But the losses kept on piling up due to high fuel prices, mismanagement, passengers travelling without tickets, and corruption in the railway. The losses would increase further due to recruitment of several thousand employees and the implementation of a new pay-scale for government officials and employees.
BR has been running by non-professional and non-technical persons for long and such a practice has weakened its institutional strength. Corruption is a persisting problem within the railways and the issue should be addressed by infusing dynamism into its top management. The railways could easily earn a lot just by operating freight trains on different routes, especially the Dhaka-Chittagong Port. This opportunity was not being availed as the railway lacked adequate lines, trains, engines, and wagons.
A number of railway development projects were underway but their implementation pace was slow for which rail services did not improve. BR officials said they were buying new carriages, wagons and locomotives to improve overall services.
Ultimately increasing fares to give higher wages to BR officials and staff will not reduce the level of inefficiency in BR. The practice of patronage whereby one gives money to get jobs will never ensure that BR is being operated at a high level of efficiency. If someone gets a job at BR he will think about how to recoup the money he gets-not about improving service for passengers.
Improving the infrastructure will reduce operating costs but BR must also be proactive to ensure that new revenue streams can be generated, e.g by operating freight trains by improving lines between Dhaka and Chittagong. These are simple measures which will help reduce losses without putting the burden on passengers. But unless its management changes their mindset this will not happen.
