Trade & Business

BR Laksham to Chattogram Dual Gauge Conversion Project

Overview of the BR Laksham-Chattogram Dual Gauge Project

The Laksham-Chattogram section is a core eastern trunk line of Bangladesh Railway (BR), spanning roughly 115km between Dhaka's inland logistics network and Chattogram, the country's principal seaport gateway. The route currently operates as a single meter-gauge line (1,000mm), and the project aims to convert it into a double-track dual gauge corridor (1,676mm+1,000mm).

The investment is designed to enable direct broad-gauge services between Dhaka and Chattogram while substantially expanding freight capacity. As the final major rail upgrade on the Dhaka-Chattogram economic corridor, the project is viewed as a strategic step toward improving the competitiveness of Bangladesh's most important logistics axis.

115km
Route Length
Laksham to Chattogram
$1.8B
Total Project Cost
Approx. Tk 215B
Meter to Dual
Gauge Conversion
1,676mm + 1,000mm
ADB + JICA
Financing
Co-financed loans
160km/h
Design Speed
Passenger benchmark
18
Stations
5 new, 13 upgraded

Strategic Importance of the Route

Rail Corridor Status Across the Dhaka-Chattogram Economic Corridor
SectionDistanceGaugeStatusInvestment Scale
Dhaka-Tongi25kmDual gauge (completed)Double-track in service$200M
Tongi-Bhairab58kmDual gauge (completed)Double-track in service$400M
Bhairab-Laksham62kmDual gauge (ongoing)Under construction$800M
Laksham-Chattogram115kmMeter gauge (single)Current project$1.8B
Total Dhaka-Chattogram260km--$3.2B

Package Structure and Technology Comparison

Civil Works and Track Packages
CW-A (Laksham-Comilla)40km, $550M
CW-B (Comilla-Feni)38km, $500M
CW-C (Feni-Chattogram)37km, $450M
ProcurementADB ICB tender
Systems and Rolling Stock
S&T (Signal/Telecom)Whole route, $200M
E&MWhole route, $50M
Rolling StockEMU/DEL, $150M (JICA)
PMCProject management, $50M
01
A Critical Logistics Bottleneck on the Dhaka-Chattogram Corridor
The Laksham-Chattogram section remains a single meter-gauge bottleneck, leaving freight trains between Dhaka and Chattogram with transit times of more than 18 hours. Rail currently handles only around 4% of annual freight demand of roughly 25 million tons, while roads carry the remaining 96%. The project targets a reduction in freight transit time to about six hours and aims to raise rail's modal share to 15%.
02
ADB-JICA Co-financing Structure
ADB is expected to fund the civil works and track packages (CW-A to CW-C, about $1.5 billion) as well as the signal and telecom package ($200 million), while JICA supports rolling stock ($150 million) and selected E&M components. ADB packages follow international competitive bidding, whereas JICA packages may use special procurement conditions that could favor Japanese suppliers. Korean firms therefore have a stronger strategic fit in the ADB ICB packages.
03
Export Opportunities for Korean Companies
Potential opportunities include the $200 million S&T package covering ETCS Level-2, CTC, and GSM-R systems, where Korean rail signaling suppliers could be competitive. Additional demand is expected for roughly 250,000 tons of UIC60 rails, around one million prestressed concrete sleepers, bridge materials such as PSC girders and steel composite girders, and PMC advisory services involving Korean transport and rail research institutions.
04
Schedule and Key Risks
Major risks include land acquisition in the Comilla urban section, where about 150 hectares are expected to be required, as well as the challenge of expanding the line while maintaining existing meter-gauge train operations. Political adjustments after the 2024 government transition may affect package timing, and volatility in global steel prices makes escalation clauses an important issue for bidders to review carefully.

Implementation Timeline

2021
Feasibility study completed, DPP approved
2023
ADB loan signed
2024
CW-A tender announced
2025-26
CW-B, CW-C, and S&T works launched
2027-28
Track and signaling installation
2029
Completion and through-service launch
Chattogram-Dohazari Gauge Conversion ProjectA broader review from the gauge-conversion perspective
BR Dhirasram Workshop ProjectAssessment of the rolling stock maintenance facility

The Laksham-Chattogram dual gauge conversion is effectively the final rail infrastructure piece needed to complete the Dhaka-Chattogram economic corridor, and at roughly $1.8 billion it ranks among Bangladesh's largest railway investments. With freight transit time expected to fall from 18 hours to six, Korean firms can focus on export opportunities in ADB-financed ICB packages, especially signaling systems, rails, and bridge materials.

BRRailwayDual GaugeLakshamChattogram
BR Laksham to Chattogram Dual Gauge Conversion Project | Dhaka Trade Portal