Secretary of the Economic Relations Division (ERD) Md. Shahriar Kader Siddiky, and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in Dhaka. Photo: ERD

DHAKA, Dec 22, 2025 (BSS) - The Asian Development Bank (ADB) and the government of Bangladesh today signed loan agreements totaling $688 million to upgrade the 35-kilometer railway line from Chattogram to Dohazari. 

The South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project will also construct a 2.5-kilometer bypass, enabling direct train services from Dhaka to Cox's Bazar without stopping at Chattogram station.

The project aims to establish seamless connectivity along the Dhaka-Chattogram-Cox's Bazar corridor, significantly boosting regional transport efficiency and economic growth, said an ADB press release.

Secretary of the Economic Relations Division (ERD) Md. Shahriar Kader Siddiky, and ADB Country Director for Bangladesh Hoe Yun Jeong signed the agreements at a ceremony held at the ERD office in Dhaka.

"The project will enhance the resilience, reliability, and efficiency of rail services between Dhaka and Cox's Bazar, facilitating a crucial shift from road to rail transport," said Jeong. 

"It will invigorate economic activities along the Dhaka-Chattogram-Cox's Bazar corridor, particularly boosting the tourism and fisheries industries. As a priority investment, the project aims to unlock underserved areas of the Cox's Bazar region by stimulating investment and trade. Furthermore, it is expected to strengthen the Bangladesh Railway network, reinforcing the country's capacity to function as a transport and transshipment hub in South Asia." Jeong added.

As a component of the Trans-Asia Railway network, the Dhaka-Chattogram-Cox's Bazar corridor currently accommodates 32% of passenger traffic and 55% of freight, underscoring the importance of enhanced rail infrastructure for economic integration, optimizing logistics, and driving development in the country's southeastern region and beyond.

Key project activities include track elevation, improved drainage, modernized signaling, dual-gauging, and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions. It will also strengthen the Bangladesh Railway's operational capacity through staff training and upgrade three stations to provide inclusive, user-friendly facilities, as well as spaces for private sector commercial activities.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. 

Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members-50 from the region.