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A delegation from a leading South Korean rolling-stock manufacturer is expected to visit Dhaka soon to explore the possibility of setting up an assembly plant for metro- and conventional-railway coaches in Bangladesh.
The move comes as authorities seek ways to reduce the escalating costs of upcoming mass rapid transit (MRT) projects.
The proposed investment is part of Dhaka Mass Transit Company Limited's (DMTCL) broader strategy to localise rail coach assembly and eventually manufacturing, as development costs of future MRT lines are projected to exceed Tk 1.0 trillion.
Sources said the delegation would hold talks with senior officials of Bangladesh Railway (BR), the Bangladesh Investment Development Authority (BIDA) and other relevant authorities on a fact-finding mission, alongside officials of DMTCL.
The state-owned DMTCL has invited Woojin Industrial Systems to invest initially in a locomotive assembly plant, which it believes would help reduce development costs of MRT lines.
Woojin Industrial Systems - a prominent South Korean manufacturer of rolling stock including metro trains, electric buses and monorail vehicles - is already set to supply imported coaches for one of the country's Mass Rapid Transit (MRT) lines.
The company has secured several domestic and international contracts, including projects in Indonesia.
DMTCL Managing Director Faruque Ahmed said that Woojin, described as South Korea's second-largest rolling stock manufacturer, was invited to set up an assembly plant initially to help lower procurement costs for locomotives in future MRT projects.
He said the visiting delegation would examine all related issues and hold discussions with the finance secretary and officials of BR and BIDA during their stay.
"Although they were invited to establish an assembly plant at this stage, the company will also assess the domestic market for traditional railway coaches and may consider full-scale manufacturing later," Mr Ahmed told the FE over the phone.
According to sources, Woojin is also exploring market opportunities beyond metro rail, as Bangladesh Railway faces a significant shortage of coaches in its fleet. Currently, South Korean company Hyundai Rotem is the major supplier of railway coaches to Bangladesh.
Woojin Industrial Systems is contracted to manufacture 34 electric trains, each consisting of eight cars, for MRT Line-1, which will connect the airport area with Kamalapur and other parts of Dhaka.
The trains are expected to feature enhanced safety and passenger comfort, including wider seating and electronic passenger information displays.
Sources noted that South Korean investment initiatives in Bangladesh have previously stalled under public-private partnership (PPP) frameworks, despite memoranda of understanding being signed through bilateral government efforts.
Although three MRT lines in Dhaka have been developed with Japanese funding, DMTCL has recently shifted its focus towards Korean collaboration due to the high costs associated with Japanese-funded projects.
Officials cautioned, however, that establishing a full-fledged plant to ensure sustained local supply of rail coaches could take at least 10 years.
smunima@yahoo.com