World Bank (WB) has recently suggested BR to create a corporation of its own separate from the government, open BR lines to international equipment from India and Nepal or Bhutan and implement a full traffic costing system to make the sector profitable.

As a short term strategy for improving the performance of Railway, the WB suggested to draft and sign a performance agreement between BR and the government and commit to cost based market pricing, contracting out services, forming joint ventures and opening operations to private investment.

The WB viewed that BR must increase its operating efficiency in terms of traffic units per employee by at least 100 per cent over the next three to five years.

This increase will bring about equal to the current level of Pakistan and about 60 per cent of India. To attain the target of increasing the operating efficiency, the bank observed that there should be complete commitment of all staffs to the new targets.

Bangladesh Railways (BR) must act in a commercially responsible way and reduce or eliminate non-commercial services, adjust tariffs to market levels and build up its profitable services.

The bank advised BR to install a traffic costing system. It said BR's commercial operation is certain to require more emphasis on freight traffic (containers) and reduced focus on unprofitable passengers.

The BR had also been advised for practicing aggressive use outside contracting and private investment or partnership in terminals freight consolidation and new equipment.

The Bank said, in the medium term strategy for improved performance of the sector, widespread commitment would be required for private sector partnership.

The commitment should include encouraging private investment in terminals, unit trains, contract maintenance and depots.

Under the mid-term strategy BR should enter into complete arrangement of giving the private sector some specific services including train operations, freight forwarding, ticketing and others.