Bangladesh Railway (BR) has signed a contract with Global Hyundai Rotem, a South Korean company, to procure 70 metre-gauge locomotives for improving its services.
Project director Abdul Matin Chowdhury and Director of Global Hyundai Rotem Kwang Kwun Yoon signed the Tk 19.86 billion contract on behalf of their respective sides on Wednesday.
Railways Minister M Mojibul Haq witnessed the signing ceremony. Rail Secretary M Mofassal Hossain, Director General Kazi Rafiqul Islam and Korean company's President and Chief Operating Officer Seung Tack Kim were also present, among others.
Presently, Bangladesh Railway has 178 metre-gauge locomotives, but the economic lifespan of 139 locomotives has already been expired.
The Korean firm is set to complete the supply of 70 locomotives in the next 18 to 60 months.
The locomotives are being procured with the government-owned fund.
Railways Minister Mojibul Haq said the BR has long been suffering from locomotive crisis as 70 per cent of the existing railway engines became unfit for use.
The new purchase is likely to improve the railway service through introducing new trains, he added.
© 2017 - All Rights with The Financial Express