The government plans to increase fares of Bangladesh Railways (BR) by 7.8 per cent from February and a proposal to that effect has been sent to Prime Minister Sheikh Hasina for approval, Railway Minister Md Mazibul Hoque said yesterday. BR plans to increase its earnings by extending its activities across the country, i.e. setting up various commercial establishments on unused railway lands. It plans to construct five-star hotels, motels, modern hospitals, medical colleges, nursing institutes and shopping complexes on unused railway lands at a cost of Tk. 850 crore. “We have forwarded a proposal to the PM regarding fare hike and fares will be raised from February if the PM approves,” Mazibul said at a programme at Bangladesh Railways Bhaban. The minister said there is 62,000 acre railway land across the country but the government has given more importance to transport management than financial earning. He said they have chalked out a plan to construct commercial establishments like five-star hotels, motels, modern hospitals, medical colleges, nursing institutes and shopping complexes on unused lands belonging to the railway.
Railways Secretary Md Feroz Salah Uddin told reporters, “The proposal forwarded to the PM aims to reduce losses incurred by BR. From now on, fares will be adjusted every year, but it will not be more than 7.5 per cent if oil prices remain steady.” Feroz added that new projects will be undertaken in phases and all projects will be implemented through Public Private Partnership (PPP).
The last revision of railway fares was done in June 2012 which occurred after 20 years. BR sources said a 20-storey building for a five-star hotel and shopping complex will be constructed on 4.14 acre railway land at Zakir Hossain Road in Chittagong. Besides, a shopping mall with hotel-cum-guesthouse will be constructed on 0.4432 acre land at Chittagong Station Road at a cost of Tk. 92.7 crore. BR will also build a shopping mall with hotel-cum-guesthouse near Khulna Railway Station using 1.78 acre land and at a cost of TK. 240 crore. The plan also includes construction of a shopping mall with hotel-cum-guesthouse on 2.1129 acre land near Comilla Railway Station at a cost of Tk 294.5 crore, said sources. BR sources further said that hospitals in Rangpur, Syedpur, Pakshi and Khulna will be modernised through extension and construction of new medical colleges and nursing institutions.