Akhaura-Agartala rail line idle since opening as benefits questioned

The much-hyped Akhaura-Agartala dual-gauge rail line, constructed at a cost of nearly Tk250 crore with the aim of streamlining cross-border trade between Bangladesh and India, has remained unused since its inauguration over a year ago.

Bangladeshi stakeholders, however, remain sceptical about the economic benefits of the project. They fear the rail line may predominantly serve Indian interests by facilitating the transportation of goods to the country’s northeastern states, while offering little to bolster Bangladesh’s exports.

They argue that the road and rail connections between India’s northeastern states and Kolkata or other Indian regions are much longer, leading to higher transportation costs and extended transit times. Consequently, Indian businesses are expected to utilise this rail line to transport goods more efficiently, which would predominantly benefit them.

Furthermore, it is anticipated that the volume of exports from Bangladesh to India’s northeastern states through the Akhaura land port may decline.

Rajib Bhuiyan, an importer-exporter at Akhaura land port, explained, “Due to India’s superior internal connectivity, exports to India via the Akhaura land port have naturally diminished over the years.

“Currently, only a few items like rods and cement are exported regularly. These are mainly purchased by traders in Tripura because sourcing these goods from other Indian states is costlier. However, with the Akhaura-Agartala rail line, Tripura’s traders can transport high-demand items such as rods and cement at lower costs, which could negatively impact our export trade.”

Hasibul Hasan, president of the Akhaura C&F Agents Association, also raised concerns about the railway’s potential to benefit local exporters.

“The rail line is unlikely to significantly increase our exports,” he said.

However, he noted that the railway could benefit traders and the government through imports. “If imports of all types of goods are permitted, traders could profit by bringing in in-demand goods at reduced costs, which would also boost government revenue.”

The 12.24km inter-country railway stretches from Gangasagar railway station in Akhaura, Brahmanbaria, to Nishchintapur in Agartala, with 6.78km falling within Bangladeshi territory.

The project, initiated in July 2018, faced significant delays, including those caused by the COVID-19 pandemic, taking more than six years to complete instead of the planned 1.5 years. India’s Texmaco Rail and Engineering Limited executed the Bangladesh section at a cost of Tk241 crore.

After successful trial runs, the rail line was officially inaugurated via video conference on 1 November 2023, by the then-prime minister Sheikh Hasina and Indian Prime Minister Narendra Modi. However, immigration and customs infrastructure, platforms, and connecting roads were still under construction at the time.

On 31 October 2023, the National Board of Revenue (NBR) issued a notification permitting the import and export of goods through the railway, allowing Bangladesh to export all types of goods and import over 50 Indian products.

By early November this year, construction was finally completed, and the contractor is preparing to hand over the project to the government this month.

Despite its readiness, operations have yet to commence, leaving stakeholders unsure about the timeline.

When asked about the delay, Gazala Parveen Ruhi, upazila nirbahi officer of Akhaura, said, “The decision to commence operations lies with the government. Once the project is officially handed over, discussions will take place at higher levels to finalise trade operations.”