The Bangladesh Railway (BR) has signed a contract with an US manufacturer to procure 40 broad-gauge diesel-electric locomotives at a cost of US$ 235 million (Tk 11.23 billion).
The authority believes that procurement of these engines would increase the passenger and freight transportation capacity.
Under the agreement, the Chicago-based Progress Rail Locomotive Inc. would complete the delivery of the engines within 36 months of the signing of the contract.
BR additional director generation (rolling stock) Md Shamsuzzaman and senior vice president of the US firm Patric O'Donnel signed the agreement on behalf of their respective sides at the Rail Bhaban in the capital on Monday.
According to the officials, the modern and energy-efficient engines are set to be procured under rolling stock operations improvement project of the BR.
The Asian Development Bank (ADB) will provide 79 per cent of the total fund needed for the project, and the remaining amount will come from the government of Bangladesh (GoB).
Speaking as the chief guest at the signing ceremony, Railways Minister Md Nurul Islam Sujan said the government adopted a 20-year master plan involving Tk 2.4 trillion to make the railway a safest and most trusted mode of transportation.
"The master plan will be executed in four phases and the agreement is a part of it. The new locomotives will certainly give much-needed impetus to the railway service as they will replace the aged ones," he said.
Giving a short brief on the master plan, the minister said the government wants to link railways with all economic hubs such as ports and economic zones in order to create a network of faster transportation of goods.
"The railways will play a vital role in the country's overall economic growth in the coming years," he added.
The minister also sounded a warning against corruption, saying that showing zero tolerance to graft was the number one pledge in the election manifesto of the ruling Awami League.
"I will also do the same. I hope I will not fail to discharge my duties and responsibilities with integrity," said Mr Sujan.
Terming the event a historical one for the BR, its director general Qazi Md Rafiqul Alam said the economic life of more than 50 per cent of the existing engines had expired decades ago (economic life is 20 years).
"These aged broad-gauge diesel-electric locomotives need to be replaced within shortest possible time to ensure safe and better service to both passengers and businesses," he added.
Secretary of the railways ministry Md Mofazzel Hossain also spoke.
Senior officials of the ministry, BR, the US company and the ADB were present at the signing ceremony.
