Past Performance and Constraints in the Transport Sector

Bangladesh witnessed rapid growth of transport sector since independence. The overall annual growth rate was nearly 8.2 percent for freight transport and 8.4 percent for passenger transport. Even then the transport intensity of Bangladesh is considerably lower than that of many comparable developing countries. 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.

Despite the observed growth of transport sector, the overall performance of the transport sector has been generally weak and is now considered a major constraint to the expansion of exports and economic growth. Estimates of trade logistic performance show that Bangladesh performs at the lower end as compared with most of its competitors. One important factor underlying this weaker performance is high transport costs. Urban transport system, especially in the capital city Dhaka, has become outdated and inefficient owing to both a lack of adequate infrastructure but also due to weak management.

The development of surface transport system in Bangladesh is constrained by three distinct sets of factors. These are:

• (i) physical (e.g., difficult terrain, periodic flooding, poor soil condition, siltation and erosion of rivers, inherited management weaknesses of BR etc.);

• (ii) low investments and maintenance, and

• (iii) inadequate institutional framework (involving four ministries, nine transport sector SOEs and lack of co-ordination and autonomy of transport SOEs).

Public sector involvement in the transport system of Bangladesh consists of ownership and operation of nine state-owned enterprises (SOEs). Except for the two sea ports, the SOEs have poor financial performance. The poor financial performance of the SOEs and their weak capital structure created a huge financial liability on the government, estimated at around Tk. 200 crore annually. However, the situation has been improving in recent years. To address the problem, the government has been pursuing the two-pronged policy of privatization and restructuring of public sector transport SOEs for achieving improved administrative, management and operational performances.

The government recognizes the importance of substantially upgrading the transport infrastructure while also improving transport services. In recognition of this, it has been giving priority to transport in budget allocations, improving the performance of public transport entities through policy and institutional reforms, and encouraging the private sector in both building infrastructure through PPP and in providing transport services. The Sixth Plan will continue this trend.

Objectives

To achieve an average GDP growth rate of 7 percent per annum the transport sector growth rate is projected to increase by 7.5 percent per annum. Keeping in view the increased volume of domestic traffic as well as the future traffic from the Asian Highway and Trans-Asian Railway, the main objective of the Sixth Five Year Plan will be to develop a balanced and integrated transport network through adoption of strategies/programs.

Strategies

For transport network development strategy, an optimal mix of “market integration approach” and “poles of development approach” will be adopted. Operational significance of this mixed strategy is that development efforts will be concentrated on five main corridors: Dhaka-Chittagong, Dhaka-Northwest, Dhaka-Khulna, Dhaka-Sylhet and Khulna-Northwest with special emphasis on Dhaka-Chittagong, Dhaka-Northwest and Khulna-Northwest arterial corridors. Besides these, the road linkages passing through Khulna, Barisal, Bhola, Lakshmipur and Chittagong will be improved. The development strategy is to be reinforced by the rural transport development strategy. Rural transport system will be developed by integrating inland water transport sub-sector with the existing road transport system and within the road transport sub-sector by adding off-road internal access dimension. Urban transport sector dimension will be added to this network development strategy. Additionally, Bangladesh will actively pursue an open-door policy to international traffic by taking advantage of its strategic location in terms of large access to sea and being the gateway between Eastern and Southern parts of Asia.

The main elements of the overall transport strategy for the Sixth Plan are as follows:

1. The two sea ports will be further developed and linked to Dhaka.

2. Railway linkages will be established between the east and south west zones of the country. Expansion of line capacity by double tracking of major rail corridors, rehabilitate/upgrade & replace old aged railway track, bridges, signalling and other assets, acquiring modern rolling stocks to provide speedy, environment friendly and cost effective transport facilities to the national, regional and international traffic will be made.

3. The development strategy for the rural transport will be reoriented for efficient external access through optimal integration of road and inland water transport and off-road internal accesses.

4. Efforts will be made to develop some of the critical inter-modal transport network that allows connectivity of neighboring countries to the two sea ports of Bangladesh.

5. Efforts will also be made to fully participate in global and regional transport connectivity initiatives that help develop the land route links between South Asia and East Asia through Bangladesh.

6. Improvement in resource mobilization will be made through introduction of user charges and fees by the agencies in all areas of transport and for all use of transport network.

7. Provision of required incentive packages for the private sector for greater participation will be ensured, not only in transport services, but also for infrastructure building.

8. Identification and implementation of preventive, emergency and post-disaster mitigation measures will be made.

9. Transport development strategy framework will be broadened by incorporating the vital urban transport dimension starting with improvement in transport services of greater Dhaka city.

10. Assurance of deficit-free operation of Bangladesh Railway as envisaged in Railway Recovery Program will be fulfilled.

11. Improvement of sub-standard ferry operation on major road networks will be made. 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.

12. Adequate care will be taken while developing transport network and service so that these do not cause environmental pollution and affect ecological balance.

13. Attention will be given to improve transport safety standards including specific attention to women safety in all means of transportation with a view to substantially reducing the incidence of accidents; and

14. Provision of duty-free or import of engines and spares at low duty for mechanization of country boat will be made.

Review of Past Developments

The Roads and Highways Department (RHD) is a major public sector agency directly responsible for planning, design, construction, improvement and maintenance of primary and secondary road network in the country, which include National and Regional Highways and Zila Roads. RHD is also responsible for the operation, and maintenance of an extensive ferry system in the country. Gradual replacement of ferry system with bridges is another broad dimension of RHD’s regular activities.

Growth of Traffic

In recent years, there has been a considerable growth of traffic on roads in Bangladesh. Bangladesh Road Master Plan 2007 estimated that the growth of both freight and passenger transport would be around 6.4% per year for the period of 2010-15 and 6% over the Master Plan period i.e. 2005-25. Bangladesh Road Master Plan Study carried out in 1990-91 estimated that the overall growth of both freight and passenger transport would be 5-6% a year. After examination of national economic parameters and historical traffic growth, Bangladesh Road Materials and Standards Study (BRMSS) carried out in 1990-92 estimated that annual average growth rates of traffic on roads would be 7.7% for freight traffic and 8.3% for passenger traffic for the period 1992-2000.

Role of Road Transport

Road transport network is the most important means of communication in Bangladesh as elsewhere in the world. In fact, road transport in our country has emerged as the most dominant mode in surface transportation carrying in recent years over 70% of passenger and over 60% of freight traffic respectively. It transpires from the following table that the role of road transport in carriage of both passenger and freight traffic over the years from 1974-75 to 1996-97 had been increasing almost consistently.

Development of the Road Network

The history of road network development in Bangladesh is of recent past. While the paved road network was only 600 km in 1947, it had grown to about 4300 km in 1981. The real development of road network in Bangladesh, both in quantitative and qualitative terms, started in the early nineteen eighties and the pace of this development gradually accelerated in later periods (Table 4.2). The Government has been following the strategy of road network development activities giving priority to 5 important corridors as mentioned above. The major share of funds allocated to the transport sector including foreign assistances in the various plans has been invested to develop the strategic road corridors. A large portion of the important highways is reconstructed through removal of earlier structures, undertaking required compaction of original sub-grade, application of higher design standard, widening of pavement and shoulder widths, straightening of detour alignment and use of relatively better quality materials. A considerable portion of the arterial road network is upgraded through implementation of various road improvement and overlay programs, thereby increasing the pavement strength significantly and reducing surface roughness substantially (Table 4.3). Many Zila roads are also constructed. All major river gaps are being bridged and important ferries are modernized in recent years. Increasingly higher emphasis is being accorded to the major maintenance activities like reconstruction, overlay and other improvement works on the existing network.

Table 4.1:

Mechanized Surface Transport Output and the Share of Road Transport in Carriage of passenger and Freight Traffic in Selected Years

Source: Bangladesh Transport Sector Study (BTSS) 1996-97

Table 4.1:

Mechanized Surface Transport Output and the Share of Road Transport in Carriage of passenger and Freight Traffic in Selected Years

Year	Passenger Transport		Freight Transport
	Total Output in Billion km	Share of Road Transport in Per cent	Total Output in Billion Ton-km	Share of Road Transport in Per cent
1974-75	17	54	2.6	35
1984-85	35	64	4.8	48
1988-89	57	68	6.3	59
1992-93	66	75	9.0	61
1996-97	72	73	10.0	63
2004-05	110	73	18.6	72

Source: Bangladesh Transport Sector Study (BTSS) 1996-97

View Table

Table 4.1:

Mechanized Surface Transport Output and the Share of Road Transport in Carriage of passenger and Freight Traffic in Selected Years

Year	Passenger Transport		Freight Transport
	Total Output in Billion km	Share of Road Transport in Per cent	Total Output in Billion Ton-km	Share of Road Transport in Per cent
1974-75	17	54	2.6	35
1984-85	35	64	4.8	48
1988-89	57	68	6.3	59
1992-93	66	75	9.0	61
1996-97	72	73	10.0	63
2004-05	110	73	18.6	72

Source: Bangladesh Transport Sector Study (BTSS) 1996-97

Table 4.2:

Progress with Paved Road Development under RHD, 1947-2009

Source: Ministry of Communications

Table 4.2:

Progress with Paved Road Development under RHD, 1947-2009

Year	Paved Road under RHD (km)	Annual Rate of Growth (%)	Total Road under RHD (km)	Annual Rate of Growth (%)
1947	600		−
1971	3600	7.75	−
1981	4300	1.79	−
1990	7914	7.01	13629	4.55
2000	16273	7.47	20799	4.31
2005	16500	0.28	21571	0.73
2009	18209	2.5	21040	−0.62

Source: Ministry of Communications

View Table

Table 4.2:

Progress with Paved Road Development under RHD, 1947-2009

Year	Paved Road under RHD (km)	Annual Rate of Growth (%)	Total Road under RHD (km)	Annual Rate of Growth (%)
1947	600		−
1971	3600	7.75	−
1981	4300	1.79	−
1990	7914	7.01	13629	4.55
2000	16273	7.47	20799	4.31
2005	16500	0.28	21571	0.73
2009	18209	2.5	21040	−0.62

Source: Ministry of Communications

Table 4.3:

Road Network under RHD by Category and Status of Construction

(Kilometers)

Source: Maintenance and Rehabilitation Needs Report of 2010-11 for RHD Paved Roads

Table 4.3:

Road Network under RHD by Category and Status of Construction

(Kilometers)

Sl. No.	Category of Road	Paved Road	Partly paved or unpaved road	Total
1.	National Highways	3445	47	3492
2.	Regional Highways	4105	163	4268
3.	Zila Road	10659	2621	13280
	Total:	18209	2831	21040

Source: Maintenance and Rehabilitation Needs Report of 2010-11 for RHD Paved Roads

View Table

Table 4.3:

Road Network under RHD by Category and Status of Construction

(Kilometers)

Sl. No.	Category of Road	Paved Road	Partly paved or unpaved road	Total
1.	National Highways	3445	47	3492
2.	Regional Highways	4105	163	4268
3.	Zila Road	10659	2621	13280
	Total:	18209	2831	21040

Source: Maintenance and Rehabilitation Needs Report of 2010-11 for RHD Paved Roads

Moreover, RHD has about 4507 number of bridges with a total length of about 130 kilometers and 13751 culverts with a length of about 54 kilometers under its management.

Road Development Investment under RHD

The Government is fully aware about the importance and role of road and road transport. As such, it has been making substantial investments in building physical infrastructure including road network because of its paramount need as a pre-requisite for socio-economic development of the country. Table 4.4 provides information on allocation and Expenditure of Fund under RHD in different plan periods.

Table 4.4:

Allocation and Expenditure of Fund under RHD in Different Plan Periods

(Crore Taka current prices)

^(*)Allocation & expenditure for FY 2009-10 is up to September/09. PA refers to project assistance

Table 4.4:

Allocation and Expenditure of Fund under RHD in Different Plan Periods

(Crore Taka current prices)

SL. No.	Plan Period	Allocation	Expenditure	Utilization as % of Allocation
1.	First Five Year Plan (FY 1973-74 to 1977-78)	207.61 (PA 08.64)	221.57 (PA 07.95)	106.72 (92.01)
2.	Two Year Plan (FY 1978-79 to 1979-80)	180.03 (PA 26.57)	178.09 (PA 18.53)	98.92 (69.74)
3.	Second Five Year Plan (FY 1980-81 to 1984-85)	826.90 (PA 88.21)	847.19 (PA 70.39)	102.45 (79.80)
4.	Third Five Year Plan (FY 1985-86 to 1989-90)	1996.15 (PA 751.79)	2274.86 (PA 748.88)	113.96 (99.61)
5.	Fourth Five Year Plan (FY 1990-91 to 1994-95)	5209.23 (PA 2079.19)	5124.32 (PA 2019.90)	98.37 (97.14)
6.	Two Year Plan (FY 1995-96 to 1996-97)	1900.16 (PA 722.91)	1804.46 (PA 625.19)	94.96 (86.48)
7.	Fifth Five Year Plan (FY 1997-98 to 2001-2002)	9108.75 (PA 4150.77)	8457.09 (PA 3270.87)	92.85 (78.80)
8.	Interim PRS (2002-03 to 2003-04)	4857.63 (PA 2187.44)	4334.87 (PA 1739.25)	89.24 (79.51)
9.	IPRS (2004-05 to 2006-07)	6596.62 (PA 1875.36)	5752.68 (PA 1522.65)	87.21 (81.19)
10.	PRSP II (2007-08 to 2009-10)*	4965.72 (PA 1631.49)	2879.42 (PA 709.23)	57.99 (43.47)

^(*)Allocation & expenditure for FY 2009-10 is up to September/09. PA refers to project assistance

View Table

Table 4.4:

Allocation and Expenditure of Fund under RHD in Different Plan Periods

(Crore Taka current prices)

SL. No.	Plan Period	Allocation	Expenditure	Utilization as % of Allocation
1.	First Five Year Plan (FY 1973-74 to 1977-78)	207.61 (PA 08.64)	221.57 (PA 07.95)	106.72 (92.01)
2.	Two Year Plan (FY 1978-79 to 1979-80)	180.03 (PA 26.57)	178.09 (PA 18.53)	98.92 (69.74)
3.	Second Five Year Plan (FY 1980-81 to 1984-85)	826.90 (PA 88.21)	847.19 (PA 70.39)	102.45 (79.80)
4.	Third Five Year Plan (FY 1985-86 to 1989-90)	1996.15 (PA 751.79)	2274.86 (PA 748.88)	113.96 (99.61)
5.	Fourth Five Year Plan (FY 1990-91 to 1994-95)	5209.23 (PA 2079.19)	5124.32 (PA 2019.90)	98.37 (97.14)
6.	Two Year Plan (FY 1995-96 to 1996-97)	1900.16 (PA 722.91)	1804.46 (PA 625.19)	94.96 (86.48)
7.	Fifth Five Year Plan (FY 1997-98 to 2001-2002)	9108.75 (PA 4150.77)	8457.09 (PA 3270.87)	92.85 (78.80)
8.	Interim PRS (2002-03 to 2003-04)	4857.63 (PA 2187.44)	4334.87 (PA 1739.25)	89.24 (79.51)
9.	IPRS (2004-05 to 2006-07)	6596.62 (PA 1875.36)	5752.68 (PA 1522.65)	87.21 (81.19)
10.	PRSP II (2007-08 to 2009-10)*	4965.72 (PA 1631.49)	2879.42 (PA 709.23)	57.99 (43.47)

^(*)Allocation & expenditure for FY 2009-10 is up to September/09. PA refers to project assistance

Road Planning

The road network has been developed mainly on the basis of short term need instead of long term planning due to the lack of appropriate road sector policy guideline until recently. It is observed that there is large scale deterioration of the network due to lack of proper maintenance, large sections of the network have inadequate structural strength, many of them severely damaged by vehicle overloading. Lack of adequate road safety has already reached an alarming level; faster and smooth movement along the highways is not possible due to the presence of large number of hats and bazaars right on the edge of roads.

RHD has developed the vast majority of the 21,040 km road network since independence in 1971. According to a recent estimate, the money value of the total assets under RHD is estimated to be Taka 42,400 crore (US $7.4 billion). This huge national asset is managed and maintained by RHD. A huge backlog in the area of road maintenance works has been created over the years due to persistent inadequacy in the level of fund allocated annually for this purpose. Sufficient fund arrangement on regular basis must be ensured in order to keep the road surface in an acceptably good condition.

Implementation of RHD projects did not suffer from major shortfall in achievement of financial as well as physical targets in previous plan periods. However, cumbersome procedure of procurement rule and land acquisition, delay in disbursement of matching fund, price hike of construction material in international market create delay in implementation as well as cost overrun in case of a number of foreign aided projects.

In case of government projects, selection of too many projects every year for implementation and allocation of a given amount of fund for each of them leads to delay in implementation of projects. Such mechanism of thin distribution of fund for each of too many projects creates undue cost over-run. RHD has improved the situation through application of Medium Term Budgetary Framework.

Past Transport Policies in Bangladesh

The National Land Transport Policy (NLTP) 2004, Integrated Multi-Modal Transport Study (Draft IMMTP) 2004 and Bangladesh Road Master Plan Study 2007 (for 20 years) are the three main policy documents, which will act as the guiding policy for RHD in selecting road development and improvement projects to achieve the target of lower transportation costs, uninterrupted and safer road communications. These documents also focused due attention on the integrity with regional and global harmony in transport sector. On the other hand, SAARC Regional Multi Modal Transport Study (SRMT) is the only approved guideline by the GoB to resolve any regional issue related to transport sector.

Besides, the Government is implementing the Poverty Reduction Strategy Paper (PRSP) in all development sectors. RHD has since been making its investment program commensurate with the PRSP. In this process, Zila roads and government declared roads of public importance, which contribute more to the growth of rural economy and rural employment including women, are getting higher priorities.

National Land Transport Policy (NLTP) 2004

Government will introduce a long-term network planning as is stated in NLTP. The road sector policies contained in the NLTP are designed to:

• Develop a long-term (20 year) Road Master Plan

• Clarify government responsibilities for Roads and Highways

• Maintain the road network at a level that protects the value of investment

• Rehabilitate those roads no longer capable of being maintained

• Secure a sustainable means of funding for road expenditure

• Improve management of traffic on the network to make the best use of assets

• Manage road side activities in a way that maximizes use of road assets

• Develop an integrated planning approach

• Involve the private sector more in infrastructure, services and maintenance

• Develop rational bridge policies

• Improve the quality of the contracting industry

• Foster inter-regional links

• Improve management and operations of the Roads and Highways Department

Integrated Multi Modal Transport Policy (IMMTP) 2004

The IMMTP reinforces the NLTP commitment to sustainable road maintenance. It provides guidance for construction of National Highways to attempt to protect them from flooding. The key policies in the IMMTP are:

• Creation of a Road Maintenance Fund

• Road and drainage system design, construction and maintenance should be fully integrated to avoid future flooding.

• Protect the investment in the strategic road network from the adverse effects of flooding by construction of the National Highways at least 1 meter above the highest flood level of 50 years. The freeboard will be determined by the concerned agencies for other roads.

Road Master Plan (RMP) 2009

The Road Master Plan provides a physical plan for new road construction, rehabilitation and maintenance over the next 20 years. The overall cost investment required for the RHD road & bridge network is Taka 68,611 Crore around US$ 10 billion. This represents an annual average requirement of Taka 3430 crore per year. The objectives of the RMP are to set out a comprehensive investment program in order to:

• Protect the value of RHD’s road and bridge assets

• Improve the connectivity of the road network

• Enhance and develop the strategic road network to meet economic and traffic growth targets

• Improve the Zila Road network to enhance the connectivity to the growth centers

• Improve road safety and reduce road accidents

• Provide environmental and social protection

• Outline the institutional improvements required for RHD

Poverty Reduction Strategy (PRS)

The key policies related to the road sector in the PRSP–II revised are as follows:

The PRSP highlighted the need to establish an autonomous road maintenance fund to ensure adequate and stable recurrent financing of roads. The PRSP emphasized a multi-modal transport system link that will be expanded to include, among other areas, the EPZ, and coal, hard rock, mining, fertilizer, cement and tea production areas for speedy and efficient movement of cargo and passengers. The policy also identified the need for monitoring indicators to be set to assess progress in key areas, such as increased allocations for maintenance, increased level of cost recovery, and more effective road traffic management such as road safety, traffic control and overloading enforcement.

RHD Planning, Monitoring and Management System

RHD select projects of socio-economic and technical merits and then implement through Annual Development Program (ADP). RHD is also pursuing Medium Term Budgetary Framework (MTBF) based on a three year rolling investment plan as a tool of its long term investment plan. RHD developed and implemented several modern management tools like RHD Road & Bridge Asset Management System (RAMS) and Central Monitoring and Management System (CMS) to manage and monitor projects. RAMS is based on GIS map which is available in digital computerized form. The main management systems are based on a set of databases called MIS which are all accessible through the RHD website.

A professional work force of around 650 numbers of civil and mechanical engineers who have working experience in big foreign aided projects are engaged in delivering their services following the modern RHD management manual in the department. Apart from that, computer professionals, transport economists, environmental experts and other professionals trained in transport planning and project management are working in RHD. RHD can deliver the proposed spending program contained in the Sixth Five Year Plan with enhanced authority, increased capacity and better accountability. Necessary intuitional arrangement and continued training of officers and engineers are required.

RHD Vision, Goal and Objectives for the SFYP

An efficient and modern road transport system has a unique role to play to achieve the government target set for SFYP and Vision 2021 as well. The contribution of road sector to the national income is around 8 per cent at current market prices at present. The prime target of RHD is to make the growth sustainable. The National Land Transport Policy document expressed a vision for the road network as: “The development and maintenance of a road network that serves the economic and social needs of the country, and which can be used safely by all vehicle types.” Thus RHD wants to achieve a well-maintained, cost effective and safe road network in the country. RHD objectives necessary to achieve the road sector vision are:

• To develop and manage strategic road corridors to underpin the economic development of all regions of the country and contribute to the Government’s poverty reduction objectives

• To link all rural areas with the national road network to provide basic social access and promote pro-poor growth

The first is primarily concerned with the National and Regional Highways and the second is very much concerned with the Zila road network. With a view to increase the sectoral contribution RHD is going to take up several new projects under the following programs to meet the present demand of network and address the vision of present government as well in SFYP period:

1. General Road Network Development

2. Construction of Bridges

3. Congestion Reduction in Greater Dhaka and other big cities

4. Development of Asian Highway Network

5. Regional Connectivity

6. Construction of Padma Bridge Access Roads/ Bridges

7. Construction of Bypass Roads

8. viii Technical Assistance (TA) Projects

9. Construction of Zila Roads (new project)

RHD has set the following physical targets for the SFYP (Table 4.5)

Table 4.5:

RHD Physical Targets for the SFYP

Source: Roads and Highways Division

Table 4.5:

RHD Physical Targets for the SFYP

	Physical Activities	SFYP Targets(2011-15)
i.	Construction of new roads	4,672 km
ii.	Improvement/ Rehabilitation of roads	8,433 km
iii.	Construction of new bridges/culverts /overpass	23,777 meter
iv.	Reconstruction of bridges/culverts	10,362 meter
v.	Construction of Tunnel	5,400 meter

Source: Roads and Highways Division

View Table

Table 4.5:

RHD Physical Targets for the SFYP

	Physical Activities	SFYP Targets(2011-15)
i.	Construction of new roads	4,672 km
ii.	Improvement/ Rehabilitation of roads	8,433 km
iii.	Construction of new bridges/culverts /overpass	23,777 meter
iv.	Reconstruction of bridges/culverts	10,362 meter
v.	Construction of Tunnel	5,400 meter

Source: Roads and Highways Division

RHD Priorities for the SFYP

The following activities will receive priority during the Sixth Five Year Plan period:

1. Completion of ongoing projects

2. Proper maintenance of existing road network to reduce huge road user costs

3. Construction of Dhaka-Chittagong highway with six lanes and other national highways and corridor roads with four/six lanes in phases (2025km)

4. Gradual replacement of all ferries by new bridges on RHD network

5. Construction of 2^nd bridges/tunnels (5400 meter) on big and important river gaps to commensurate with higher traffic demand

6. Measures and projects to reduce traffic congestion in Dhaka city (overpass & flyover 24,450 meter/tunnel 3400 meter/2 nos.grade separator 8475 meter)

7. Address road safety issues to reduce road accidents at 25 percent by 2015 as apart of UN decade of Action for Road Safety.

8. Control overloading to reduce road deterioration and road accident

9. Upgrading of all National Highways to international standards with provision of sign signal, grade separated inyterchange on intersections and service lanes for slow moving vehicles

10. Construction of railway overpasses on all railway level crossings on all National Highways

11. Improve regional road connectivity including implementation of Asian Highway Network to boost up trade and commerce

12. Construction of access roads with linkage to Padma bridge

13. Construction of roads to bypass those cities and towns which are congested with traffic-mix (new 77km & improvement 56km)

14. Connection of those Upazila headquarters with the arterial road network which have not yet been connected

15. Construction of Road network in AILA affected and other disaster prone areas

16. Higher priority accorded to projects in the least advanced area

17. Construction of missing links on RHD network

18. Improve connectivity between air, sea and land ports and the capital city

19. Construct roads to boost up tourism industry in the country

20. Improve road access to the places of historical interest

21. Develop road network in resourceful coastal area

22. Implementation of E-governance

23. Implementation of E-Procurement and E-Tendering

24. Improve institutional capabilities of RHD

Key Issues and Constraints Related to the Road Sector Development

The approach to the development of the SFYP is based on addressing the existing problems faced by the road network, along with the future challenges. The key issues are:

1. The underlying strength of the National and Regional Highway network largely deteriorated due to the lack of maintenance.

2. Vehicle overloading has contributed significantly to the road deterioration.

3. The operation of the highway network is severely hampered by congestion caused by poor traffic management, encroachment and traffic mix.

4. Zila road network is not fulfilling its full role in rural connectivity because it is partly incomplete and has suffered from a lack of maintenance.

5. A large number of bridges already need replacement or major repair due to a lack of proper maintenance.

6. Road safety is critical and not adequately addressed in road design and traffic enforcement.

7. Traffic is forecast to grow by a factor of at least three over the next twenty years leading to a need to increase capacity significantly on the major corridors like 4 lanes on important national highways and construction of second bridge over big rivers

8. Maintenance needs a higher priority, more resources, improved management and better quality standard

Regional and International Connectivity Issue

The Government is pursuing the policy of corridor based road development with a view to accommodating regional as well as international traffic in Bangladesh. The Government has been making efforts to improve the road connectivity with neighboring countries through various regional cooperation forums such as SAARC, SASEC, BIMSTEC and BCIM. Substantial progress has been achieved in this regard by this time. A Joint Communiqué has been signed in New Delhi, 12 January 2010 by the Honorable Prime Ministers of Bangladesh and India to facilitate regional cooperation in the issue. It was agreed in the Joint Communiqué that Indian Over Dimensional Cargo (ODCs) will be carried through road from Ashuganj to Akhaura for Palatana Power Plant Project in Tripura. Moreover, Bangladesh will allow use of Mongla and Chittagong sea ports for movement of goods to and from India/Nepal/Bhutan.

Asian Highway Network

Bangladesh has acceded to the Asian Highway Network on 8 November 2009. The physical alignment of Asian Highway Route in Bangladesh is more or less completed so far as the road connectivity is concerned. GoB has plan to upgrade almost the whole part of the AH Network in Bangladesh into 4 lane width by phases in order to bring the same in harmony with such network outside Bangladesh. It may be mentioned here that construction of two additional lanes on Dhaka-Chittagong Highway and construction of Dhaka-Chittagong Expressway got the highest priority in this regard. 3 routes which are the part of the Asian Highway Network in Bangladesh are as follows:

International Routes

• (i) RouteAH-1:Benapole-Jessore-Narail-Bhatiapara-Mawa-Dhaka-Katchpur-Sarail-Sylhet-Tamabil (length 495 km)

• (ii) Route AH-2: Banglabandh-Panchagarh-Rangpur-Bogra-Hatikamrul-Jamuna Bridge-Tangail-Dhaka-Katchpur-Sarail-Sylhet-Tamabil (length 805 km including 283 km of overlapping part)

Sub-Regional Routes

• (i) Route AH-41: Mongla Port –Jessore- Bonpara- Hatikamrul-Katchpur-Comilla-Chittagong-Cox’s Bazar-Teknaf –Myanmar Border (length 752 km)

Road Safety

A vision for road safety in Bangladesh is achieving 50 per cent reduction in RTA fatalities by 2020 in line with the UN Decade of Action for Road Safety. The vision translates to set a goal towards achieving of a 25 percent reduction in the annual number of RTA fatalities by 2015. The National Highways are recommended to be the principal target of road safety initiatives of GoB as 45% of all fatal accidents occurring on National Highways. RHD Road Safety Division is working actively to implement the recommendations of Road Safety Council with the view to improve the road safety condition on RHD network. An accident database on the basis of field report is kept by the RHD Road Safety Division regularly.

A vast program for safety on road through overload control is under implementation for quite a long time. A number of overload control stations/weigh bridges are operational at different strategic points of RHD National Highways e.g. Sitakunda N1, Auhkandi N2, Meghna Bridge & Meghna-Gumti Bridge N1, Utholi N5 and Mawa. Construction of a number of overload control stations/ weigh bridges is under implementation at Benapole N706, Mohashangarh N5, Goalanda (Rajbari) N7 and Arial Kha Bridge N8. To ensure safety at level crossings RHD is going to construct several bridges (ROB) over rail crossing levels on national and regional highways. Road safety issues like education and public awareness, specific measures to address women safety with a particular attention to remote areas, community participation, enforcement, management of transport sector are being addressed at the policy preparation level keeping reduction of accidents as the goal of all road safety measures. In order to ensure safety on road, GOB has also introduced police patrolling system on highways. The impacts of the road safety initiatives of GoB over the SFY plan period are also expected to be very significant

SFYP Strategies and Policies

The following strategies and policy changes will be followed during the Sixth Five Year plan period:

1. Inclusion of a limited number of projects on priority basis into Annual Development Program (ADP)

2. Allocation of adequate fund for implementation of project within stipulated time frame particularly relevant in respect of domestically funded projects

3. Implementation of RHD Road Master Plan

4. Selection of locally funded projects on socio-economic merits

5. Establishment of Road Maintenance Fund

6. Involvement of private sector by taking up projects on BOT/PPP basis

7. Involvement of women in RHD Activity

8. Assessment of environmental impact

9. Improvement of institutional capabilities

10. Implementation of E-Governance

11. Implementation of E-Procurement system

Strengthening Implementation Capacity

The stated aim of Roads and Highways Department is to become a modern highways agency of international standard in order to meet the challenges of Government’s Vision 2021 and MDG targets. An interim re-organization for RHD has been largely implemented over the past few years. The objective of this institutional strengthening program is to modernize RHD with an emphasis on contracting out most of its services, focusing on effective collection, management and analysis of data, thereby permitting the fulfillment of its strategic planning role. RHD has several completed initiatives the outputs of which are in danger of becoming vestigial with the external support removed. The Road Safety and Environmental Circles are not working as they should. The RHD Training Centre lacks funding and has serious shortage of staff. At this stage a further re-organization is required to complete this process.

Traffic growth is expected to be very high at 3-4 times over the next twenty years according to the Road Master Plan estimates. The road network will need to respond to these challenges. Such capacity expansion will rise to the need for mobilization of sizeable resources. Assistance will be required to reform the institutional set-up of RHD to make it more efficient so that it can fully utilize the resources allocated to it.

RHD as an organization is not fully geared as yet to involve private sector in the development and maintenance of roads and highways. Much greater use can be made of the private sector in financing the capital costs of road development.

Lastly, it is important to activate the existing computer based modern tools of monitoring and supervision such as CMS, RMMS, MIS, GIS and to use modern planning tools like HDM, PAF etc in order to capture the full advantage of those systems.

Monitoring Implementation Progress

Monthly review meeting on the progress of RHD projects takes place under the chairmanship of Minister of Communications or Secretary, Roads and Railway Division. Besides, Senior Management Committee meets every month under the chairmanship of RHD Chief Engineer. Regular meeting of Budget Committee takes place under the chairmanship of Additional Chief Engineer, Planning and Development. Moreover, site inspections by Zonal Additional Chief Engineer and other high officials of RHD, MoC, Planning Commission and IMED are done frequently to supervise and monitor the field progress.

The Central Management System (CMS) is an advanced management information system being used at RHD headquarters and all field divisions at present. CMS is operating online through FTP server. CMS can ensure better transparency and accountability as well as discipline in financial practices and monitoring of RHD projects.

In order to achieve the SFYP targets and the vision of government, it is important to monitor basic indicators in order to assess progress in key areas, such as increased allocations for maintenance, increased level of cost recovery, and more effective road traffic management like road safety, traffic control and overloading enforcement.

Operation and Maintenance of Vehicle Inspection Center (VIC)

Bangladesh Road Transport Authority (BRTA) planned to setup 5 (five) Vehicle Inspection Centers (VICs) in 1999, with semi-automatic test lanes, in 4 (four) metropolitan cities- two in Dhaka and one each in Chittagong, Khulna and Rajshahi. Establishment of VICS was a component project of Road Overlay and Improvement Project (ROIP), funded by the Asian Development Bank.

On completion of physical works and installation of equipment Bangladesh Road Transport Authority tried to put five Vehicles Inspection Centers into commercial operation. But it could not be done due to scarcity of the spare parts needed to maintain the Vehicle Inspection Centers. Bangladesh Road Transport Authority had difficulties in managing the five Vehicle Inspection Centers due to fund constraint and trained manpower. This led Government to change its strategy. A review mission of Asian Development Bank (ADB) recommended that the Operation and Maintenance of the five Vehicle Inspection Centers be leased out in private sector under Public Private Partnership (PPP).

These Five Vehicles Inspection Centers (VICs) were constructed by the government for technical inspection of vehicles by computerized method instead of visual inspection. Visual inspection system is very old and the results of the vehicle inspections are always faulty and debatable. But computerized method of inspection is more acceptable. The objective of the Project is to help the government improve transport efficiency and strengthen integrated vehicle inspection through balanced, quiet and mechanized system of checking. More specifically, the project will (i) improve safety measures both for cargo and passenger on the road; (ii) provide better access to markets, social services and open employment opportunities; (iii) secure government resources for periodic inspection and maintenance of vehicles; (iv) promote private sector participation in road transport system; and improve road safety and axle-load control.

BRTA is also looking forward to outsourcing of vehicle inspection and issuance of fitness certificates of motor vehicles under Public Private Partnership (PPP). It intends to enlist efficient and capable private workshops for doing the job on behalf of BRTA to avoid congestion in existing BRTA field offices and making it easier for the vehicle owners to get their vehicle inspected at workshops near their places of residence or of convenience. A draft of the rule required for this has already been prepared. BRTA is also looking forward to establishing Vehicle Inspection Centers (VICS)/Workshops at greater district headquarters under Private Sector Investment Guideline (PSIG) through Public Private Partnership (PPP) to maintain a standard vehicle inspection system throughout the country.

Establishment of Motor Drivers Standard Training Institutes

The project proposes to establish 6(six) Motor Drivers Standard Training Institutes cum Driving Competency Test Centers in 5(five) divisional headquarters in Bangladesh. The objective of the project is to develop awareness and professional skill of motor drivers to reduce road accident and to conduct Driving Competency Test for applicants of motor driving license. Road accidents in Bangladesh are costing the nation about Tk. 5000 crore (US $ 850 million) annually which is nearly 2 percent of GDP. This loss of the nation can be reduced by reducing road accident by training the motor drivers. BRTA is expecting project assistance from Korea International cooperation Agency (KOICA) to implement the project.

Collection of Motor Vehicle Taxes and Fees through On-Line Banking System

BRTA plans to collect of MV taxes & fees through On-Line Banking System by engaging service provider (SP) and the government has allocated public funds for the services of the SP. The service provider (SP) will provide important services including establishment and maintenance of sufficient infrastructure required to collect motor vehicle taxes and fees from different locations covering all 64 district Head Quarters through On-Line Banking System. The customized software (application) shall be a web-based application with international standard security system.

Up-gradation of BRTA Activities through Information Technology

The main objectives are:

1. An extensive System Requirement study and analysis to implement appropriate and feasible IT system in BRTA;

2. Preparation of Roadmap for Digital BRTA so that BRTA can be a model of government organizations in the vision attainment process of “Digital Bangladesh” in the coming days.

3. Development of the best possible and most feasible IT based solution for Digital BRTA on the basis of standard methodologies and modern approaches in analyzing system requirement study;

4. Study of existing applications and traditional manual business processes thoroughly to determine the limitations, obligations, risks, HR, time, effort and cost involvement for each and every task precisely;

5. Preparation of the scope and detail planning for business process reengineering;

6. Recommendation of IT system as per planning and roadmap of Digital BRTA, relevant

7. infrastructure and other requirements taking into account present capacity, capability as well

8. as future growth of BRTA;

9. Development and maintenance of an automatic vehicle tracking & speed monitoring system to keep watch over traffic rule violations and prevent vehicles theft;

Strengthening of BRTA to improve customer services

This will be achieved through:

• (a) rationalizing BRTA organogram to address new issues in road transport sector;

• (b) ensuring transparency in customer services in different field offices of BRTA;

• (c) prevention of fake motor driving license;

• (d) improvement of customer service in the process of vehicle registration, motor driving licensing, issuing Route Permits etc.

Framing of Demand-Responsive Legislation on Road Traffic

The Motor Vehicle Ordinance (MVO) was promulgated in 1983 by updating the Motor Vehicle Act of 1939. Bangladesh Road Transport Authority (BRTA) is the regulating body for Motor Vehicles and Drivers. Revision of the MVO is essential to facilitate the current growth of the transport sector. Moreover, revision of the 1983 ordinance is of critical importance for the introduction of measures to modernize vehicular safety and environmental standards and to overhaul public transport licensing provisions. Necessary modification of MVO will be done accordingly and will be structured around two components (i) Environment, which relates to brick kiln emissions, and (ii) Transport, which encompasses traffic management, institutional capacity building, and safety issues. The transport component will be executed by DTCB and DCC. To address this issue, DTCB has taken initiative to engage a national consultant under Clean Air and Sustainable Environment (CASE) project financed by World Bank

Objectives

The main goal of providing public support in the rural transport sector is to ensure a cost effective, affordable and efficient transportation system for all.

Strategies

The basic principle of the strategy will be to improve and maintain the Upazila, Union and prioritized village roads network integrating rural river and rail transport so that cost-effective, demand responsive and flexible systems could be provided for all. The elements of this strategy to be pursued during the Sixth Five Year Plan will be as follows:

• Improve /upgrade remaining Upazila, Union and prioritized village roads including appurtenant structures which have strategic importance to connect railways and waterways.

• Maintain all Upazila, Union and village roads which have so far been constructed including appurtenant structures and upgrade growth centers having connection with railway and waterway in order to promote and integrate multimodal transport system. For sustainability, adequate maintenance system and a viable funding mechanism should have to be put in place. Since maintenance needs are increasing, the Government and the local bodies will make special efforts to fully fund these needs and LGED will make continuous efforts to improve maintenance efficiency and ensure local participation.

• The labor-based construction techniques for road improvement will be adopted to enhance employment opportunity, sustainability and affordability.

• Improve and maintain prioritized rural waterways in order to promote riverine transportation systems.

• Develop design of selective Intermittent Modes of Transport (IMTs) including Karimon/Lossimon etc., non-motorized transport and country boats; disseminate the improved version through involving the community.

• Upgrade the road inventory to fully utilize HDM & DSS software for better Road Asset Management (RAM).

• Enhance procurement functions and processes, and quality control activities.

• Incorporate environmental, social and climate change dimensions into the engineering design after assessing their impact and undertake adequate mitigation and enhancement measures.

• Carry out road safety activities relating to engineering and information campaign including awareness, advocacy and education.

The Rural Roads under LGED

Rural Road Network, though extensive, include mainly poor quality earth roads, requiring improved surfacing and pavements, and interspersed with many gaps to be filled with drainage structures for allowing uninterrupted traffic. Most of these are seasonal roads, generally not usable in the rainy season, creating considerable hardship for transportation during the monsoon period. An important feature of rural road transport is the dominant share of non-motorized transport (manually pedaled cycle-rickshaws, passenger rickshaws and rickshaw vans, and to some extent animal-drawn carts) which provides reasonably efficient rural transport suited to the small-parcel loads needed by most farmers.

Presently LGED has a Rural Road stock of 2,89,334 km of which 37,691 km is Upazila road, 44,686 km is Union road and 2,06,957 km is Village road. LGED is involved in construction, development, maintenance of these roads. The categorical break-down is shown below:

The Rural Road Master Plan

In view of efficient and effective investment prioritization, LGED prepared a Rural Road Master Plan to (a) identify/prioritize a most useful and effective rural road network throughout the country to ease the rural life as a whole, (b) provide all weather access to all growth centers, all Union Parishads/Complexes, most of the rural markets and other service delivery centers of the rural areas, (c) improve rural accessibility for facilitating agricultural production and marketing of different products, (d) reduce poverty through employment generation and accelerating economic activities in rural areas and (e) strengthen the Local Government Institutions. It is estimated that approximately 821,000.00 million taka will be needed to improve all categories of roads. Fulfillment of the targets of the Sixth Five Year Plan will involve an expenditure over 210,000.00 million taka.

Rural Waterways

This is an important component of the Bangladesh transport system in view of the extensive waterway network available and the floods, which regularly inundate the country and disrupt the other two surface transport modes. There are about 24,000 kilometers of waterways of which about 6000 kilometers of this network are classified as arterial, secondary or feeder routes. This 6,000 km is being taken care of by BIWTA and they have prepared a Master Plan. With the passage of time, as floods each year deposit their fertile silt on the farmlands, the freeboard for boats to ply though these waters gets gradually reduced and limits the loads that boats can carry. This problem is accentuated by the fact that no one has, or accepts, responsibility for maintenance of the remaining 18,000 kilometers of smaller rural waterways. This issue has been identified in the Master Plan of BIWTA which recommended that the tasks should be carried out by LGED with active participation of LGI’s.

More than half the country’s total land area is within 10 kilometers of a navigable waterway. There are significant numbers of motorized and non-motorized country boats that ply on these waterways. Most of these boats are operating in what is referred to as the unorganized part of the water transport system, carrying lion’s share of freight traffic. However, in view of the huge size of the waterway network, over 1,000,000 country boats and the huge volume of traffic they serve, it is obvious that the ancillary facilities are completely inadequate for the task. It should be kept in mind that integration of rural road network with the waterways will make the rural transport system cheaper, flexible and demand responsive. However, this would necessitate appropriate actions for a) revival of prioritized rural waterways; b) embankment protection; c) construction of landing stations/river Jetties; d) provision for loading/unloading spaces with toilets; e) design development of country boats; and f) Navigation safety

Review of Past Development Projects

An integrated transportation is the sine qua non for socio-economic development of a country. In view of this, Bangabandhu Bridge has been constructed to establish direct road and rail link between the north-west and eastern zone of the country, which was separated by the mighty river Jamuna. The construction work of the bridge was commenced in October, 1994 and completed in June, 1998 at a cost of Tk. 37456.00 million with foreign funding of Tk.25456.00 million. For implementation of the project, an organization named Jamuna Multipurpose Bridge Authority (JMBA) was created. Subsequently, a separate Division, titled Jamuna Bridge Division (JBD), was created under the Ministry of Communication for monitoring, supervision and quickening the decision-making process in respect of different activities and problems related to this giant project. This Project was included in the Fourth and Fifth Five Year Plans.

The bridge is now acting as a fixed major link in the national transportation system. With the facilities of communication both by road and rail from north-west to east, movement of traffic has become easier. This, in turn, has resulted in reducing transport cost and travel time. The farmers of the north-west region are now getting fair prices of their crops, which has encouraged commercial farming of various agricultural products. Besides, a good environment has been created to establish new industries in the northern region. Apart from playing a vital role in the transportation system, the bridge is contributing to the economy by facilitating accelerated growth, poverty alleviation and revenue generation.

Objectives and Targets for the Sixth Plan

The main objectives of the SFYP are to develop an integrated transportation network by constructing Padma Bridge at Mawa-Janira for socio economic development of the country. The government has given the highest priority to construct the Padma Bridge, the largest infrastructure project in Bangladesh. The proposed Padma Bridge will connect 19 Districts of South-Western part with the eastern part including the capital. This bridge will bring significant socio-economic improvement of the people of the south-western region and an estimated 1.2% increase of GDP growth rate of the country. The proposed Padma Bridge lies on the Asian Highway route AH-1 and if implemented this bridge will bring revolutionary changes in the South Asian countries including internal transportation system of Bangladesh.

The Government has plans to construct about 6.10 km long 2^nd Padma Multipurpose bridge at Paturia- Goalundo point to establish through communication from capital city, Dhaka to west and south-west part of Bangladesh as well as with the main land port Benapole, Darshona and the sea port with Mongla. To establish a direct road communication between Barisal and Khulna Divisions, government has planned to construct about 1550 meter long Bekutia Bridge over the river Kocha on Perojpur-Jhalakathi road.

BBA has taken initiative to implement infrastructure project through Public Private Partnership (PPP). For the construction of about 26 km. long Dhaka Elevated Expressway from Shahjalal International Airport to Kutubkhali at Dhaka Chittagong Highway on PPP basis with cost of US$ 1.24 billion. After implementation, traffic congestion in Dhaka city will be reduced substantially. The target in SFYP is also to implement Dhaka-Ashulia Elevated Expressway and Gulistan Golapshah Mazar-2nd Burigonga Bridge Flyover on PPP basis.

BBA has also taken initiative to construct tunnels, the first of its kind in Bangladesh. As part of implementation of about 1.50 km. long tunnel from Zahangir gate to Rokeya Sharani at Dhaka and about 2 km. long tunnel under the river Karnaphuli at Chittagong city. The feasibility studies are in progress. The construction works are expected to commence in due time after conducting feasibility studies and arrangement of necessary foreign funding. The target in SFYP is to achieve major progresses.

In connection with Padma Bridge, BBA has taken initiative to improve road network in South-west region, especially in Barisal Division. The target in SFYP is to start constructions of some new bridges in that region.

Strategies/Policies

The strategies and policies to be pursued in the Sixth Five Year Plan are as follows:

• a) Completion of most priority ongoing Padma Bridge project at Mawa-Janjira in time by providing adequate allocation to derive maximum benefit, instead of spreading the limited resources thinly over a large number of projects.

• b) Improvement of the capacity of Bangladesh Bridge Authority by doing study.

• c) Greater emphasis for repair of cracks and appointment of private operator for operation & maintenance of Bangabandhu Bridge.

• d) Improvement of existing toll collection system of Bangabandhu Bridge.

• e) Generation of funds by issuing bond/share against Padma Bridge Project and issuing securitized bond against Bangabandhu Bridge.

• f) Formulation of appropriate legal and policy framework to attract private investment in infrastructure development projects, particularly the construction of Dhaka Circular Elevated Expressway.

• g) Addressing the environmental issues and resettlement of Project Affected Persons in an appropriate and sustainable manner.

Improving Implementation Capacity

• a) For large infrastructure projects, a qualified and experienced officer needs to be appointed as Project Director for the whole project period. But through deputation it is not possible to appoint an experienced Project Director for the whole project period. So provision for appointment of Project Director through direct recruitment may be included in the Development Project Proposal.

• b) Institutional capacity of BBA should be significantly enhanced in view of renewed mandate and significant increases in volume of work.

Development Visions, Goals Objectives and Targets for SFYP

The SFYP goal and vision for Dhaka transport is to take short, medium and long term measures to develop a multi-modal integrated and safe transportation system for the city. The strategy during SFYP is to start with short term cost saving measures and then to implement medium and long term measures gradually with adequate budget. Traffic management, circular water way development, connecting rail with neighboring districts and construction of one/two east-west connecting road during SFYP will be emphasized. Technical manpower will be improved through advanced overseas training. Appropriate technology will be applied in city for achieving accelerated transport development. Private sector must be involved in this matter. Key elements of the Dhaka transport strategy include the following:

1. In the short term, attention would be given to traffic management measures in order to optimize the use of available road capacity. The traffic management measures may include one-way operation, restriction on a particular mode on a street or in an area, and parking restrictions.

2. To have a balanced and integrated transport system, rickshaws should not be totally banned, but their use should be limited. They should be registered by Dhaka City Corporation, and license can be issued to them to operate in a particular area.

3. It is thought that increasing the roadway capacity, for example, by constructing expressways is not going to bring any long term solution. This is because the improved roads will push up the demand and ultimately the excess capacity will be exhausted. Therefore, travel demand management measures are proposed in the short and medium terms. Examples of travel demand management include introducing a school bus system and encouraging car-pooling.

4. The behavior of the road users is unlikely to change if not enforced. Therefore, adequate number of traffic personnel should be recruited and trained. So far, expenditure on improving the signaling system has not brought enough benefits.

5. The increase in the number of buses on the streets of Dhaka is a good sign, as they are an efficient mode in terms of space requirement per passenger. Attractive Bus Rapid Transit (BRT) system should be introduced in the medium term.

6. A mega-city like Dhaka could possibly explore the possibilities of a metro-rail system to move a large number of people in a quick time through the main transport corridors. Examples include Kolkata and New Delhi

7. Ensure proper cost recovery policies to help financial sustainability of urban transport and improve use efficiency

In addition to improvement of traffic management involving proper traffic monitoring, enforcement of traffic laws including parking laws and fees, establishment of time of day road crossings and pedestrian crossings, massive investment will be needed over the medium to long term to modernize and expand the Dhaka transport infrastructure.

Review of Railway Subsector

After liberation, BR had 2858.23 km rail line, 270 stations, 486 locomotives, 1643 coaches and 16823 wagons. At present BR have 2835.04 km rail line, 440 stations, 286 locomotives, 1509 coaches and 9970 nos. of wagons. The allocation to the railway sub-sector in respect to the total allocation of transport sector was 23.9% in the First Five Year Plan, 32.13% in the Second Five Year Plan, 27.84% in the Third Five Year Plan, 13.1% in the Fourth Five Year Plan and 13% in the Fifth Five Year Plan. Those allocations could barely meet the need of rehabilitation/replacement costs. As a result no improvement or up-gradation took place and some railway sections and stations had to be closed down. On the other hand, huge investment in road sub-sector resulted in high road density of 69.2 km per 100 sq. km. of total land in Bangladesh.

In a land scare country like Bangladesh, railways can perform a useful and effective role in transporting bulk freight and passengers more cost effectively and with lower adverse environmental impacts than road transport. Its contribution to pollution is very little, consumption of fuel is only 10% of the other modes of transport and rate of casualties in accident in negligible in comparison to other modes of transport. Travelling costs on railway is cheaper than any other mode of land transportation. Although railway has great potential, it carries only 4% of all traffic. Due to lack of proper investment, BR faces a number of constraints which limit its ability to provide service and minimize its losses.

During the past three decades, the only remarkable investment is the establishment of railway network over the Bangabandhu Multipurpose Bridge which provides seamless railway connectivity between East and West zone of BR. But its utility to BR is limited by significant load restriction placed on BG freight trains to cross over the bridge. Due to inadequate investment, the railway track is in poor condition in a number of areas, including the vital Dhaka-Chittagong corridors which need immediate rehabilitation and upgrading. Almost 78% of the locomotives and 28% of passenger coaches are beyond their economic life and need immediate replacement. 70% of the signaling system has become old aged and obsolete and needs modernization including human resource development. All these result in serious deterioration of the performance of BR.

Current and Future Challenges

Improve and expand railway network: Government has decided to expand/construct railway network connecting all the districts of Bangladesh. For this purpose, new projects have been taken in hand for expansion of 454.60 km railway network such as Dohazari-Cox’s Bazar-Gundum (128 km), Kalukhali-Bhatiapara-Gopalganj-Tungipara (135.50 km), Pachuria-Faridpur-Bhanga (60.10 km) Ishurdi-Pabna-Dhalar char (78 km) and Khulna-Mongla (53 km). Bangladesh Railway (BR) needs to undertake massive development works to overcome the operational bottlenecks such as single lines, missing links and deplorable condition of track, rolling stocks & signaling systems. BR has planned to undertake projects to re-orient the railway network towards the capital, re-open of closed branch lines and connect Cox’s Bazar, Mongla Port, Tungipara, Barisal, Chittagong Hill Tracts, important power plants, fertilizer factories, cement factories, tourist points and other areas where rail network does not exist. Moreover, BR has also plan to connect important land ports. For improvement of passenger amenities BR has plan to renovate/reconstruct old aged station buildings, yards, platform, platform sheds, foot over bridge and other structures. Feasibility study for construction of elevated high-speed dedicated rail track will be carried out on Dhaka-Chittagong corridor.

BR has taken projects for doubling of Dhaka-Chittagong railway corridor such as doubling of Tongi-Bhairab bazar section under ADB finance, doubling of Chinki Astana-Laksam section under JICA finance, and construction of 2^nd Bhairab & 2^nd Titas Bridge along with railway approaches under Indian Dollar Credit Line. BR has taken initiative for track doubling of Akhaura-Laksam, Khulna-Parbatipur, Dhaka-Mymensingh, Dhaka-Bangabandhu East and Dhaka-Sylhet sections.

Due to deplorable conditions of tracks and bridges speed restrictions have to be imposed to ensure safety of running trains resulting excess running time and excess operation expenses. Projects such as rehabilitation of Dhaka-Narayanganj, Saidpur-Chilahati, Mymensingh-Jamalpur-Dewanganj, Pachuria-Faridpur-Bhanga, Laksam-Chandpur, Fateyabad-Nazirhat, Sholoshahar-Dohazari etc. have been undertaken for rehabilitation of existing railway lines to improve the performance of BR and to restore the image of railway as a safe, speedy and reliable means of transport. Rehabilitation of some old bridges has also been under taken.

BR has taken initiative to construct Rail-cum-road bridge over river Padma connecting Dhalarchar and Rajbari, dedicated railway bridge through Bahadurabad – Phulchari ghat over river Jamuna, 2^nd Karnaphuli Rail-cum-road bridge, 2^nd Bhirab and 2^nd Titas railway bridge, dedicated railway bridge over the river Jamuna. BR has also planned to rehabilitate/upgrade all bridges to carry national, regional and Trans-Asian railway Traffic.

Digitalization of railway: Bangladesh Railway has introduced Computerized Seat Reservation and ticketing system, selling ticket through mobile phone, giving information through mobile network. In addition BR has undertaken digitization of (i) Financial Accounting System, (ii) Fixed Asset Management System including Land and Real Estate Management, (iii) Human Resource Management System (HRMS), (iv) Payroll Management System, (i) Procurement and Inventory/Material Management System, (vi) Project Management System and (vii) Workshop Maintenance Management System.

Acquisition of new rolling stocks: At present BR is facing crucial operational problems due to shortage of adequate rolling stock. It is expected that 9 MG DE locomotives will be arrived from May to September, 2011. Procurement of 11 MG DE locomotives is in process. Projects have been taken in hand for procurement of 40 BG locomotives, 125 BG and 414 MG coaches, 2 BG inspection cars, 180 BG and 100MG tank wagons, 220 MG flat wagons and 10 sets of DEMUs under Indian Dollar Credit Line. BR has taken initiative to procure 70 MG DE locomotives.

Regional Connectivity

At present there are three operating interchange points for bi-lateral railway traffic. They are Benapole (BR) – Petrapole (IR), Darsana (BR) – Gede (IR) and Rohanpur (BR) – Singhabad (IR). Mostly freight are carried through those interchange points. Train movement in the interchange point Birol (BR) – Radhikapur (IR) and Shahbazpur (BR) – Karimganj (IR) was suspended a long ago and actions have been taken to restore the communication. The Government is taking initiative to overcome the operational bottlenecks and missing links of Railway network within the country to facilitate an efficient railway transport linkage among SAARC countries. The regional routes through Bangladesh identified by SAARC Regional Multimodal Transport Study (SRMTS) and BIMSTEC Transport Infrastructure and Logistics Study (BTILS) are as follows:

BRCI and SRCI: Lahore/Delhi/Kolkata/Dhaka/Mahishasan/Imphal

BRC3 and SRC4: Birgunj (Nepal)/Raxaul/Katihar (India)/Rohanpur-Chittagong with links of Jogbani (Nepal) and Agortala (India)

SRC6: Birgunj (Nepal)/Raxaul/Singhabad (India)/Rohanpur-Rajshah- Khulna-Mongla Port with links of Biratnagar (Nepal).

Targets and Objectives of SFYP

BR targets and objectives encompasses the government’s vision to expand and improve the railway system to provide safer, better, environment friendly and less expensive transport facilities to the national and international traffic.

BR’s objectives of SFYP are to:

1. Rehabilitate, upgrade/improve and replace old-aged infrastructures and rolling stocks to reduce journey time, improve the service quality and to build the image of railway as a safe and reliable means of transport.

2. Connect the Capital City with Cox’s Bazar, Mongla Port, Tungipara, Barisal, Chittagong Hill Tracts and other areas where rail network does not exists.

3. Establishment of Padma rail links, Trans Asian Railway network and regional railway connectivity.

4. For running more trains, augmentation of line capacity along selected corridors including procurement of additional rolling stocks to meet the future challenge.

5. Increase its market share up to an acceptable level.

6. Reduce the operating ratio remarkably at the end of the year 2015.

7. Undertake implementation of Land Use Plan, enhance Public-Private Partnership (PPP) in railway sector and create other business opportunity.

8. Improve Commuter Train Services to provide better urban transport facilities to the daily passengers around Dhaka, Chittagong, Rangpur, Dinajpur, Parbatipur, Nilphamari, Sylhet etc.

9. Reduce the rate of casualties in accidents, fuel consumption and carbon emission in transport system.

10. Assist in pro-poor growth and poverty reduction.

11. Improve financial performance through efficiency measures as well as by instituting proper user charges.

BR targets for SFYP are as follows:

Strategies and Policies of SFYP

Government, underscoring the need of railway communication, put priority to railway amongst all the surface mode of transports under National Land Transport Policy (NLTP) and Draft Integrated Multi Modal Transport Policy (Draft IMMTP). In order to overcome the constraints and to achieve the visions of BR, a 20 year development plan is being prepared by the planning commission. To become self sustainable, BR has to improve service quality and operational efficiency as well as develop its own infrastructure facilities to carry more traffic efficiently.

It has been found that BR shall have to focus on intercity passengers, long haul freight traffic along selected corridors, container traffic and take initiative of other businesses. Hence the development plan focuses on overcoming the shortcoming, missing links and operational bottlenecks of BR.

Historically the railway enjoyed a monopoly as a carrier and used to carry most of the principal commodities in the country such as cement, coal, fertilizer, raw jute, stone, food grain, sugar cane etc. With gradual emergence of road transport, railway started losing its modal share and overtime it declined from 30% in 1975 to a mere 4% in 2005. However, railway still dominates in carrying stone, iron, steel and food grains. In addition, railway also carrier about 10% of containers handled in Chittagong port. BR has taken initiative to increase the modal share specially in container transportation. Some important KPIs of BR are as follows –

• Passenger transport share: 10%

• Freight transport share: 10%

• Container transport share: 20%

• Working Ratio improved to 0.96.

• Number of derailment reduced: 20%

It is found that the commodities carried by rail are mostly sea port and land port based. Thus the strategy for SFYP includes development of new inland container depots (ICD) and increase the carrying capacity.

In addition, BR has great potential in the regional traffic market, which depends on the expansion of railway network and the revival of historical railway links. Most of these are part of Trans Asian Railway network and Bangladesh has already signed the intergovernmental agreement.

Programs for achieving the targets for SFYP

Bangladesh Railway has planned to undertake about 149 projects within next five years. With the implementation of the on-going as well as new projects Bangladesh Railway will be able to regain its market share and be self-sustainable and create other business opportunities. Thus BR will be able to contribute in poverty reduction and sustainable economic development of the country. Out of the total 149 projects, 46 are on-going and 103 are new. It is very essential to get the required allocation in time to implement the projects efficiently. Lack of adequate fund will result time over run as well as cost over-run.

Targets and Objectives of SFYP

To develop a balanced and least cost transport system in Bangladesh, it is imperative to improve IWT both from infrastructure and technological points of views. In spite of the development of infrastructure facilities in IWT sub-sector during the past plan period, BIWTA still suffers from (i) siltation problems in inland water crafts, (ii) day and night navigational problems of waterways, (iii) shortage of passengers and cargo handling facilities including transit shed at river ports, (iv) manual loading/unloading of cargo at river ports, (v) underdeveloped rural launch landing stations, etc. Moreover, for transportation of containers by inland waterways to and from sea-ports, the container handling facilities have not yet been developed.

Targets

During the period of the Sixth Five Year Plan, activities relating to development of inland waterways would focus on dredging and resuscitation of dead and dying river routes, developments of inland river ports, providing navigable aids for smooth and safe movement of cargo and passenger vessels, improvement of waterways in and around Dhaka City for making surrounding rivers navigable and wider. All these activities will accelerate the infrastructure development, promote economic growth, which in turn will lead to poverty alleviation.

Objectives

The main objectives of the SFYP are as follows:

1. To improve the channel of the existing waterways through dredging.

2. To improve day and night navigation of water crafts by providing navigational aids.

3. To develop inland container river ports for transportation of containers by waterways to and from sea ports.

4. To develop river port handling facilities as well as storage facilities and introduce mechanical equipment for handling cargo in order to save waiting time for berthing of vessels.

5. To develop rural launch landing stations by providing pontoon facilities for smooth embarkation/disembarkation of passengers and cargo.

Strategies and Policies of SFYP

In order to achieve the above plan objectives, the following strategies will be undertaken:

1. Completion of spilled-over projects within the stipulated time.

2. Intensification of the dredging program including procurement of dredgers to develop existing channel conditions of inland waterways and provision of navigational aids for smooth navigation of water crafts.

3. Establishment of inland container river port on priority basis within the first two years of the plan.

4. Upgrading port facilities (both cargo and passenger) as well as storage facilities so that vessels can be loaded/unloaded without delay and

5. Introduction of mechanical equipment for handling of cargo at river ports to avoid the head-load system.

6. Implementation of the development projects of rural launch landing stations.

7. Implementation of projects for improving the traditional country boat sector.

8. Undertaking feasibility studies for providing landing facilities in the coastal areas.

Key Constraints

Acquisitions of ships is highly capital intensive. As such, investment of huge capital at high interest rate makes this sector unattractive. Present global trend of free market economy demands BSC to be run as a profitable commercial organization in a competitive manner. BSC has been improving its functional efficiency and efforts are being continued to materialize necessary expansion and development programs by raising its own sources. But it would not be practically possible for BSC to undertake a huge project in the above mentioned fields of investment on its own financial capabilities. Financial recession, which has been going on world-wide since October 2008, has tremendously affected international shipping trade and as such arrangement of fund from BSC’s won source has further been aggravated. Besides, commercial banks and other financial institutions of both home and abroad are now reluctant to invest in this sector. During the 1970’s and 1980’s different donor countries and agencies provided funds for BSC as grants or soft term loans for purchase of vessels through the government. However, currently it is difficult to obtain grants or soft term loan for this purpose.

Objective for SFYP

The main objectives of the Department of Shipping are:

• i) To regulate and promote the maritime shipping of Bangladesh by discharging flag, port and coastal state responsibilities and ensuring safe, secure and efficient shipping on clean ocean.

• ii) To provide navigational aids for safety of sea-going vessels, coastal vessels, fishing boats/trawlers, naval vessels, coast guard vessels within the Bangladesh waters.

• iii) To streamline the maritime and shipping rules and regulations in the line with national and international requirement in order to promote shipping and trade of the country and to develop institutional and infrastructural facilities including ensuring inland ferry safety in order to perform its duty effectively.

• iv) To conduct country survey and inspection of all types of vessels and prepare an inland shipping fleet profile in order to make appropriate plan to regulate them for the public interest. The profile would include the details of the vessel including design, equipment, inventory, classification, categorization etc.

Targets

• i) To achieve the target for digital Bangladesh, the department of shipping is introducing machine readable seafarer identity card, which will help Bangladeshi seamen’s job opportunity on foreign flag vessel and to meet the obligation of the international requirements.

• ii) In order to provide aid to navigation, rehabilitation of the 3 lighthouses at Cox’s Bazaar, Kutubdia and St. Martins are required. These lighthouses will be modernized and more new lighthouses will be established at Kuakata, Ruperchar, and Chardarshok etc.

• iii) Department of Shipping has an acute shortage of manpower and institutional capabilities. So, the shipping department needs to be strengthened with adequate manpower and institutional capabilities which include new organogram and recruitment policy, new office space and building, development of training facilities, updating of rules/regulations and shipping policy etc.

• iv) Installation of GMDSS in Bangladesh is a decade old requirement, which will not only enhance safety of life of all seafarers including fisherman in the coastal waters but will also fulfill IMO, which needs immediate attention.

Chittagong Port Authority (CPA)

Chittagong port is the principal maritime port of Bangladesh and therefore has a very special role in our development process. It handles about 95% of the country’s sea borne export and import trade. It is a service organization committed to provide facilities for efficient handling of the maritime import and export of the country. It acts as the linkage between the inland and sea transportation of goods. In future the port may also provide international transit facilities to neighboring countries mainly Nepal, Bhutan and eastern states of India. Thus the port plays a vital role in the economic growth of the country. However, in the context of the global situation of trade and commerce, Bangladesh is seeking to explore opportunities to further expand international economic activities for sustainable development, which necessitates improved efficiency of maritime gate ways, particularly making Chittagong port more responsive to commercial needs of exporters, importers and carriers. With the increase in globalization of the world economy, the future growth of the Bangladesh economy largely depends on its competitiveness and relative efficiency compared to other economies. The efficiency in the utilization of principal port can contribute significantly to the efficiency and competitiveness of the economy as a whole. So it is imperative to upgrade the efficiency of the Chittagong port keeping in view of its vision to become competitive transport hub of the region in the near future.

Projected growth of container traffic in the Chittagong Port is shown in Table 4.7. From the above forecast it is observed that at the end of the terminal year of the SFYP, the Chittagong Port Authority (CPA) is likely to handle about 48 million tons of cargo including about 1.8 million TEUs of containers for which existing facilities are adequate. As the volume of cargo at the port is increasing manifold, major expansion facilities are to be required during the SFYP to meet the demand beyond the plan period. Nevertheless, the growth rate of cargo must be related to the targeted rate of growth of GDP of the economy.

Table 4.6:

Status of Rural Roads

Source: Ministry of Local Government

Table 4.6:

Status of Rural Roads

Road Type	Number of Road	Total Length (Km)	Length of BC & Rigid Pavement Road (Km)	Remaining Length of BC & Rigid Pavement Road (Km)	Existing Structure		Existing Gap
					Number	Span	Number	Span
Upazila Road	4481	37691	27888	9803	56232	355706	4749	106187
Union Road	7953	44686	19163	25523	57515	299201	8649	122955
Village Road-A	36218	106622	18244	88378	68702	315320	28852	243046
Village Road-B	53169	100335	6206	94129	39045	146793	33627	206675
Total	101821	289334	71501	217833	221494	1117020	75877	678863

Source: Ministry of Local Government

View Table

Table 4.6:

Status of Rural Roads

Road Type	Number of Road	Total Length (Km)	Length of BC & Rigid Pavement Road (Km)	Remaining Length of BC & Rigid Pavement Road (Km)	Existing Structure		Existing Gap
					Number	Span	Number	Span
Upazila Road	4481	37691	27888	9803	56232	355706	4749	106187
Union Road	7953	44686	19163	25523	57515	299201	8649	122955
Village Road-A	36218	106622	18244	88378	68702	315320	28852	243046
Village Road-B	53169	100335	6206	94129	39045	146793	33627	206675
Total	101821	289334	71501	217833	221494	1117020	75877	678863

Source: Ministry of Local Government

Table 4.7:

CPA Traffic Projection

Source: Chittagong Port Authority

Table 4.7:

CPA Traffic Projection

Financial Year	Import (Mill. M.Ton)	Export (Mill. M.Ton)	Total (Mill. M.Ton)	Number of Containers (In TEUs)
2010-11	30.77	4.24	35.01	1,390,447
2011-12	33.14	4.62	37.76	1,497,335
2012-13	35.65	5.07	40.72	1,600,550
2013-14	38.26	5.53	43.79	1,710,533
2014-15	41.15	6.05	47.2	1,833,000

Source: Chittagong Port Authority

View Table

Table 4.7:

CPA Traffic Projection

Financial Year	Import (Mill. M.Ton)	Export (Mill. M.Ton)	Total (Mill. M.Ton)	Number of Containers (In TEUs)
2010-11	30.77	4.24	35.01	1,390,447
2011-12	33.14	4.62	37.76	1,497,335
2012-13	35.65	5.07	40.72	1,600,550
2013-14	38.26	5.53	43.79	1,710,533
2014-15	41.15	6.05	47.2	1,833,000

Source: Chittagong Port Authority

Objectives

In the back drop of the traffic forecast up to 2014-2015, the main objectives of SFYP related to Chittagong Port are:

• To maintain and improve the navigability of the channel through capital dredging and regular maintenance dredging.

• To develop efficient inland distribution of container traffic by three modes of transport viz; road, rail and IWT to relieve the congestion problems being experienced by Chittagong port as well as to reduce high dwell time of container in the port.

• To increase container handling capacity through expansion of terminal/yard facilities, acquisition of modern container handling equipment and procurement of harbor crafts and vessels to ensure improved operating system.

• To set up ICD/CFS by the public/private sector at all potential cargo distribution centers across the country to decongest the port.

• To involve private sector in port management and port development infrastructure on BOO/BOT/PPP model for which a clear, reliable and transparent policy guideline is to be approved by the Government.

• To improve institutional capability in training, planning, safety and environment management control in the port.

Strategies

In order to achieve these objectives of the SFYP, the following strategies will be adopted:

• Due to ever increasing throughput of cargo/container, Chittagong port is subjected to heavy pressure in respect of efficient handling of the country’s sea borne traffic and it is already operating beyond its capacity. Particularly, the lack of hinterland facilities for the transportation of containers to and from Chittagong Port has added a serious problem resulting in stuffing and un-stuffing of 90% containers in the port premises and gives rise to container congestion at the port. Consequently, door to door delivery of containers, which is the prime objective of containerization, is being frustrated severely. This situation cannot be improved by CPA alone. Contribution from the Roads and Highways Department and Bangladesh Railway is also required. Hence to achieve objectives of SFYP, these problems need to be addressed on priority basis by establishing an integrated and effective multi-modal transport network for inland movement of the containers to and from the port.

• To provide facilities and services to the international shipping lines and other concerned agencies steps will be taken for creating adequate physical facilities (i.e. terminal, jetties, cargo/container handling equipment) and maintaining adequate water depth in the navigational channel. The facilities provided by the port are influenced by external factors. Due to change in shipping technology and technique in handling of cargo/container, the port facilities will have to geared up to keep pace with such changes.

• Tariff structure of the port will be revised periodically to meet the increases in operational cost and also to generate revenue surplus for financing its development projects to be implemented during the plan.

• Steps will be taken to delegate more authority to CPA, so that they may be able to use their own financing for investment in handling facilities and replacement investment which are regarded as essential to improve the productivity and generate adequate rate of return.

• In order to encourage private sector participation in the port development activities some regulatory framework should be initiated. Even in some areas policy guidelines is to be made by the Government to attract foreign investors on the projects like BOO/BOT/PPP model.

Mongla Port Authority

Mongla Port plays a vital role in the field of trade, commerce and economy of the country. The Port initially established as an anchorage port turned into land based port with commissioning of port jetty in Mongla in 1983. By river route and road, Mongla port is in a unique position to serve all parts of the country as well as Nepal, Bhutan and boarder areas of India.

The current situation that encompasses the operation at Mongla port includes:

• Less distance to hinterland and has the advantage of having free river ways throughout the year.

• Protected by Sundarbans which in turn is conducive towards safe operations and is sheltered from freshet, cyclone and flood

• Large channel available for anchorage and loading-unloading facilities on both sides of the ship.

• Good river transport connection throughout the year with all inland ports.

• Huge infrastructure facilities available for handling container and specialized cargo.

The port is also subject to comparative operational efficiency which includes:

• No congestion of ships, container and cargo.

• No constraint in berth and less “Turn Around Time”.

• The port is operational round the clock.

• Container dwell time is in the limit of 6 days.

• Private jetty facilities prevail for handling Clinker, Gypsum, Fly ash, Gas, etc.

• Huge land available for establishment of private jetties within and outside port arena.

• Huge spaces for storage of cargo are available.

• Easy cargo handling opportunity at anchorage and mooring buoy.

• Ships ETA and ETD are maintained strictly.

• Documentation system has been simplified to reduce time.

• Wide scope of handling and storage of motor vehicle.

Key Constraints

• Rapid siltation in the long channel is a serious navigable problem for this port. The depth of Pussur River at the left bank where the port facilities are located was adequate for berthing of 8.5 meter draught ships. Due to rapid siltation, safe passage through the channel and berthing of ships in anchorage, mooring buoys and jetty have become difficult after commissioning of the Farakha barrage.

• For routine maintenance, dredgers owned by Port authority are essential for continuous maintenance of the channel which is needed for sufficient navigability. Thus procurement of dredgers has become a necessity for Mongla Port.

• The effect of depreciation of equipment over the years which were procured during the commissioning of the jetty in 1983, have resulted in the equipment becoming obsolete. As such, there is a shortage of cargo handling equipment and the present equipment is too old to provide adequate service.

• Interruption free access to different modes of transport infrastructure is essential for the optimal operation of Mongla Port. With the construction of the Rupsa Bridge and Pakshi Bridge road link has been established, but no initiative has yet been taken for rail connection.

• For smooth movement and efficient operation of ships in the channel, providing pilotage service, hydrographic survey, fire fighting and installation of buoys at various points of the Pussur Channel is essential. The existing crafts are too old to provide adequate service.

Improved Infrastructure Requirement for Better Business of Mongla Port

Substantial amount of food grain are imported and dispatched to the hinterland through this port every year. The export of frozen fish through this port is also increasing over time. Recently government has decided to import significant portion of food grain and fertilizer through this port. For smooth and efficient handling of food grains and systematic distribution of food, separate food jetties and silo are to be constructed at Mongla port with urgency.

Due to lack of railway link from Mongla to its hinterland, quick transportation of cargo could not be possible. For flourishing the operation of Mongla port it is essential to establish railway link from Mongla to Khulna and Mongla to Dhaka via Padma Bridge. Khanjahan Ali airport has been planned to be constructed at Failahat 21km ahead from Mongla towards Khulna. For fast movement of port users and business entrepreneurs construction work of this airport should be expedited.

Mongla port is in unique location to offer excellent transit for international trade of Nepal. The government of Nepal is interested to use Mongla for its connectivity trade. For attracting transit trade of Nepal, Bhutan and neighboring border areas of India connectivity trade arrangements are to be made among the countries. For expansion of port operation 460 acres of land have been earmarked for Mongla export processing zone and 190.76 acres has already been handed over on which 13 industries have been built and another 5 industries are under construction. Sunken ships create obstacle to normal flow of water in the Pussur channel and expedite rate of siltation. Mongla port authority has taken steps to remove wrecks from Pussur channel. But due to lack of appropriate technology and equipment, the wrecks could not be removed.

After inauguration of Rupsa and Pakshy bridge cargo transportation got free access through Mongla port. Establishment of road link of Mongla- Mawa-Dhaka has shortened distance and after construction of Padma bridge Dhaka traders will be interested to use Mongla port. Besides, opening of container terminal at Khanpur-Narayanganj and Pangaon Dhaka, great deal of opportunity will be opened up for carrying container cargo by barges and Mongla port will pave the way of international trade and business of home and the region as well.

Objectives and Strategies

The main objective and strategy of the sixth plan is to provide modern facilities and services to shipping and other concerned agencies with speed and efficiency through providing jetties, godowns, yards, and modern handling technologies. In order to enable the port to meet the challenge of modernization following strategies will be adopted :

1. Removal of wrecks from Pussur channel: During the time of liberation war and afterwards around 15 local and foreign ships were sunk at different places in the Pussur channel which create obstacle in normal flow in the Pussur channel, increase rate of siltation in the channel and makes movement of ships risky. Steps will be taken to remove those wrecks from the channel for smooth operation of ships.

2. Navigational aids to Mongla Port: For assuring safe navigation during day and night the port authority needs a light tower which is to be constructed and located in the vicinity of channel Buoy B-12 a fifteen nautical miles up channel from the fairway buoy. The light tower would be fitted with RACON and the light is visible from a distance of 20 nautical miles. Such a light tower would assist vessels in their approach to the Pussur channel particularly at night.

3. Procurement of harbor crafts for Mongla Port: To maintain the daily in –coming / out –going schedule of foreign ships more reliable vessels are required for efficient operation and smooth functioning of the port. Steps would be taken to procure modern pilot launch, dispatch launch, survey launch, mooring boat and self water craft for sustaining efficient port operation.

4. Computerization and introduction of Management Information System: Almost all activities of the port are performed manually. In order to enhance the competitiveness of the port measures will be taken to introduce computerized Management Information System.

5. Replacement of cargo handling equipment: There is a shortage of crane, straddle carrier; forklifts and other handling equipment at Mongla port and even the present equipment are too old to provide adequate service to the port users as per their need. So, modern handling equipment for handling general cargo and container will be procured for smooth operation in the jetty.

Bangladesh Land Port Authority

Bangladesh Land Port Authority (Bangladesh Sthala Bandar Kartripaksha) has been created under Bangladesh Sthala Bandar Kartipaksha Act, 2001 (Act 20 of 2001) to make Import and Export between Bangladesh and neighboring countries easier and better. Since inception Bangladesh Land Port Authority started functioning under the control of Ministry of shipping. The following 16 land ports were placed under the direct administrative control of Bangladesh Sthala Bandar Kartripaksha (BSBK).

Benapole, Jessore Banglabandha, Panchaghar Bhurimari, Lalmonirhat Hilli, Dinajpur Sonamasjid, Chapai Nawabgonj Tamabil, Sylhet Akhaura, Bhahmanbaria Nakugaon, Sherpur Haluaghat, Mymensingh

• Darshona, Chuadanga • Birol, Dinajpur • Bora, Satkhira • Teknaf, Cox’sbazar • Bibirbazar, Comilla • Bilonia, Feni • Gobrakura and Karaitoli, Mymensingh

View Table

Benapole, Jessore Banglabandha, Panchaghar Bhurimari, Lalmonirhat Hilli, Dinajpur Sonamasjid, Chapai Nawabgonj Tamabil, Sylhet Akhaura, Bhahmanbaria Nakugaon, Sherpur Haluaghat, Mymensingh

• Darshona, Chuadanga • Birol, Dinajpur • Bora, Satkhira • Teknaf, Cox’sbazar • Bibirbazar, Comilla • Bilonia, Feni • Gobrakura and Karaitoli, Mymensingh

It was decided by the Government that except Benapole and Bhomra remaining 14 Land Ports would be operated through Private Port Operators on BOT (Build, Operate & Transfer) basis.

Major activities of the Land Port Authority are as follows:

• (a) Formulating policy for development, management expansion, operation and maintenance of all land ports.

• (b) Engaging operators for receiving, maintaining and dispatching cargoes at land ports.

• (c) Preparing Schedule of tariffs, tolls, rates and fees chargeable to the port users having prior approval of the government.

• (d) Executing contracts with any person to fulfill the objectives of the Act.

Current Port Development Activities

A project titled ‘Modernization of Benapole Land Port (1^st phase)’ project for infrastructural development and extension is being implemented at a cost of TK 24.43 crore. The infrastructural development work includes construction of four warehouses, open stack yards, export and passenger terminals and acquisition of 6 acres of land including development. After the completion of the project, the warehousing capacity of Benapole Land Port will increase from 27,000 mt to 28,600 mt. Besides, project for procurement of handling equipment at a cost of Tk. 80.21 crore is in the process for approval. Moreover steps have been taken to automate the Benapole Land Port for efficient and transparent port operation. Under the Public Private Partnership (PPP) initiative land ports have been leased out on BOT(Build, Operate and Transfer) basis which is an important step towards involving private investment for enhancing economic growth and employment generation.

Goals and Objectives of the Sixth Plan for Land Ports

Goals

1. Facilitating export-import through land routes for increasing volume of trade, prevention of smuggling and reduction of evasion of customs duty.

2. Promote and expand the area of co-operation between government and private sector in different areas of development.

Objectives

1. Infrastructure development such as passenger jetty, cargo jetty, transshipment yard, open yard, truck terminals, weighbridges etc.

2. Enhance efficiency in cargo handling using modern equipment.

3. Construction of warehouses for improvement of storage facilities.

4. Fostering public-private partnership for effective and better service deliver.

5. Establishing road linkages for increasing the volume of trade

Civil Aviation Authority of Bangladesh (CAAB)

Civil Aviation Authority (CAAB) is a sub-sector under the transport sector. This authority is responsible to ensure safe, orderly and expeditious operation of international and domestic air traffic within the territorial airspace of Bangladesh. The authority is also responsible for construction, expansion, operation and maintenance of aviation infrastructure of the country up to the standard as prescribed by International Civil Aviation Organization (ICAO).

The geographical location of Bangladesh is favors the country to communicate with Eastern and Western countries of the world. In this situation, there is potentiality for Bangladesh to make Hazrat Shahjalal International Airport as a hub for Air Transportation. At present daily more than 100 flights operate at Hazrat Shahjalal International Airport. Besides, more than 200 over-flying flights are operating daily in the territorial air space of Bangladesh. By providing fuel to aircrafts and transit facilities to transit passengers at the International Airport Bangladesh can earn a lot of foreign currency.

Policies and Objectives of SFYP

The objective of SFYP is to open more airports for international flight and to expand the existing facilities for safe and secured operation of aircrafts. The major objectives of CAAB is to develop Hazrat Shahjalal International Airport for operation of wide-body aircraft of international flights, to modernize ATC and communication system, to implement CNS/ATM based navigational aid system and to accommodate/ create parking facilities for new aircraft of National and private airlines. Another important recent development is that Cox’s Bazaar Airport will be improved for operation of wide-body aircraft.

To implement the above mentioned objectives, the following aspects have been given priority in the SFYP:

• Strengthening of existing runway, tax-way and apron for safe and secured operation of modern aircraft.

• Construction of new-airports for better communication with remote area.

• Expansion of parking area to accommodate new aircrafts of National Airlines and Domestic Airlines of Bangladesh.

• Expansion of passenger terminal building as well as cargo building facilities.

• Replacement of existing primary and secondary radar.

• Enhancement of operational facilities at domestic airports.

• Outsourcing of operation, maintenance and management of ground handling services at international airports.

• Enhance the operational facilities of control tower at Hazrat Shahjalal International Airport.

• Installation modern navigational equipment.

• Replacement of instrumental landing system (ILS) for international airport.

• Ensuring adequate cost recovery policies

• Construction of a new international airport to cope with the increasing traffic and upcoming challenges.

Air Transport Services

The air transport services have gone through major challenges. The national carrier, Bangladesh Biman, has experienced serious performance problems owing to inefficiencies, corruption, overstaffing, weak management and inadequate investment. As a result, there has been a substantial loss of passengers that has added to the financial difficulties of Bangladesh Biman. In recognition of these difficulties, the Government has embarked on a major reform to improve the performance of Biman while also encouraging the entry of local carriers. Progress has been made on both counts. The operational efficiency of Biman has been improving while private local carriers are now in operation. The Sixth Plan will build on this progress by further improving the performance of Bangladesh Biman while continuing to encourage private local carriers. With an open sky policy and strong global competition for passenger traffic, better performance from Bangladesh air carriers will be imperative to retain and even improve market share.

Tourism

Tourism brings significant benefit to the balance of payments and general economy of the country by augmenting foreign exchange earnings and other economic activities. There are a large number of countries even in Southeast Asian region where tourism industry is a major contributor to GDP. In Bangladesh the situation is deplorable. Not much of tourism facilities have been developed, particularly for the foreign tourists. As a result, contribution of tourism industry to national income and GDP is negligible or insignificant. In recent years, the government of Bangladesh has started actively considering development of this industry to attract foreign and domestic tourists. If tourist facilities and related infrastructure could be created the flow of tourist would be increased.

Bangladesh has much potential for development of tourism. It has many natural attraction and many social and cultural events of interest. If these are properly developed and marketed the tourism industry will be able to attract more international tourists and contribute to growth of tourism in the country. Bangladesh has two very beautiful sandy beaches, one is Cox’s Bazar and the other one is Kuakata. The Sundarbans is another landmark for the country, the largest mangrove forest of the world, habitat of variety species of flora and fauna and a place of great interest to the nature/safari tourists.

Review of Past Development Policies, Strategies, Programs/Projects

Bangladesh has huge potential in tourism. Realizing the importance of tourism the Government of Bangladesh developed a National Tourism Policy (1992) for the development of tourism. Besides this, the Industrial Policy of 2010 has included tourism as a priority sector.

In order to encourage private and foreign investment, some special incentives have also been allowed by the government such as, tax exemption on royalties; tax exemption on the interest of foreign loans; tax exemption on capital gains from the transfer of shares by investing company; avoidance of double taxation in case of foreign investors on the basis of bilateral agreements; remittance of up to 50% of salary of the foreigners employed in Bangladesh and the facilities for repatriation of their savings and retirement benefits and personal assets at the time of their return; facilities for repatriation of invested capital etc. To encourage private sector to invest in tourism, some outlets of the Bangladesh Parjatan Corporation (BJC) have been leased out to private sector.

In the last Fifth Five Year Plan (1997-2002), emphasis was given on the development of integrated tourism facilities to attract both domestic and foreign tourists. Some tourism infrastructures were established in different places such as Kuakata, Dinajpur, Mongla, Teknaf, Benapole, Sagordari, Khagrachari, Banderban, and Bogra. Besides this, attempts were taken to establish tourism facilities in all district head quarters.

Recently Bangladesh Tourism Board (BTB) has been established under the ministry of Civil Aviation and Tourism to improve the tourism industry and services as well as manage and develop the sector.

Despite this progress and the intended emphasis on tourism, the growth of tourism activities and tourist inflows have been weak. While a number of factors including the socio-political environment affect tourism, a key factor has been the inadequacy of tourism infrastructure due to poor investments by both public and private sector.

Current and Future Challenges for the Sector/Sub-sector

Tourism industry of Bangladesh has been facing multiple problems. It mainly lacks proper planning, adequate fund and infrastructure facilities, law and order situation (corruption & terrorism) etc. However, following are the main barriers for tourism development of Bangladesh:

• Inadequate allocation of fund in National Budget;

• Inadequate infrastructure facilities;

• Lack of Modern and Adequate Recreation & Tourist Facilities;

• Negative image of the country abroad;

• Lack of human resources in the tourism sector;

• Visa problems;

• Lack of foreign direct investment;

• Underdeveloped communication system.

Goals, objectives and targets for SFYP

Considering various prospective economic benefits and global competition, the present government has given emphasis on tourism in their election manifesto.

Goals

• To develop Bangladesh as an Exotic Tourist Destination in Asia;

• To enhance contribution in GDP from 0.69 to 2 percent.

• To generate employment opportunity.

Development Strategies and Policies for SFYP

1. To establish tourism infra-structure through Public-Private Partnership Investment.

2. To build a positive image for Bangladesh in abroad.

3. To arrange various tour programs and provide information services to tourists.

4. To ease visa arrangements.

5. To create awareness for tourism development.

6. To develop tourism human resources through special academic and training programs

7. To identify and popularize new tourist products of Bangladesh;

Objectives & Targets

• To promote domestic and international tourism in Bangladesh;

• To develop human resources in tourism sector;

• To develop infrastructural facilities at tourist sites.

• To increase foreign tourist flow in Bangladesh from 4.00 lacs to 15 lacs;

• To provide on-line booking system for all hotels and tourist centre of Bangladesh;

• To enhance marketing of tourism products at home and abroad;

• To arrange better communication system by adopting modern IT based technology.

• To develop Eco-tourism in Bangladesh