Bangladesh has taken a further step towards modernising its rail network through signing a grant agreement with South Korea to improve rolling stock operations and management.
The agreement, finalised on Tuesday through a Record of Discussion (RoD) and Terms of Reference (ToR), underpins the “Advanced Project of Rolling Stock Operation and Management in Bangladesh”.
The initiative will be carried out by Bangladesh Railway under the Ministry of Railways.
Seoul will provide $3.63 million in grant financing—equivalent to roughly Tk 45.12 crore—through its Ministry of Land, Infrastructure and Transport, reflecting deepening bilateral cooperation in transport infrastructure.
The project is designed to strengthen operational efficiency, improve safety standards and expand carrying capacity across the national rail network, as Bangladesh seeks to ease pressure on its transport system and support economic growth.
The documents were signed by Mirana Mahrukh, Additional Secretary at the Economic Relations Division (ERD), on behalf of Bangladesh, and Seok-gi Kim, Assistant Minister for Infrastructure Affairs, representing the Korean side.
Officials said the initiative forms part of a broader push to upgrade Bangladesh’s ageing rail infrastructure, with a focus on modern management systems and technical capacity-building.