The cabinet meeting yesterday approved the Bangladesh Railway proposal to form a container service company with an aim to increase revenues.
The proposal got the go-ahead at the meeting presided over by Prime Minister Sheikh Hasina.
“We will form Bangladesh Railway container service company in line with that of Indian container service company,” said cabinet Secretary Shafiul Alam following the meeting.
Asian Development Bank is the development partner now assisting in the process, he added.
Sources said the Law Ministry has already vetted the draft for the container service company law.
The directorate of Bangladesh Railway container service system will deal with the matter. Secretary to Bangladesh Railway division will be the chairman of thbe directorate.
Shafiul Alam said the company will be formed to strengthen local container system because a total of 90% containers are transported by road while the rest by waterways across the country.
It will be a 100% government-owned company with an authorised capital of
Tk400 crore and Tk10 crore paid-up capital, he added.
The secretary further said when the company goes to stock market, its per share will be Tk100.
According to the Railway Ministry, Bangladesh Railway now carries containers from Chittagong port to Kamalapur Inland Container Depot in Dhaka that is 5% of total containers.
The ministry has planned to raise the figure by up to 30% in the next couple of years through formation of the company.
