Assignment On

Long term Planning Problem in Public Sector Of Bangladesh (A case study on Bangladesh Railway) Course code: ACT Course Title: Managerial Accounting Submitted to
Mr. Iehit Sharma Lecture Department of Business Administration Leading University

Submitted by
Name Faglul Karim Raihan Md.Ahadujjaman Gulam Sarwar Ashfaqur Rahman Adbul Aziz ID 1001010142 1001010131 1001010060 1001010141 1001010127

Sec-C, 24th batch

Department of Business Administration Leading University, Sylhet Date of Submission: March 6, 2012

Table of Contents Serial No 1 Content Name Introduction Page No 1.5 2 3 Background Objectives of the Study Scope of the Study Limitations of the Study Methodology of the Study Operational Definitions Bangladesh Railway at a glance Few Long-Term Plans of government for Railways sector Problens of Long Term Planning Recommendation References 1-2 2 2 2 3 3-4 4-5 4 5-7 5 7-9 6 7 10 10 2 .1 1.2 1.3 1.4 1.

Leading University-Sylhet. Then I would like to give thanks to Renowned Philanthropist Mr.Acknowledgement First of all we pay a special thanks to our almighty God. Mr. Our thanks also goes to our family members and friends who are co-operated with us at any of the steps of the assignment and continuously support us without any hesitation and make themselves an important part of this job 3 . we would like to express our heartfelt gratitude to Prof. who made us able to complete this assignment. Bashir Ahmed Bhuiyan. Dr. Head of the Department of Business Administration. respected lecturer of Leading University for giving us this chance to make a assignment on “Marketing plan”.Ragib Ali as he established Leading University and we got this opportunity to read here. Iehit Sharma. We would like to thanks our course instructor Mr. After wards.

the Assam –Bengal Railway was amalgamated with the Eastern Bengal Railway under the name “Bengal and Assam Railway .603. It required sustained efforts for over a century to build the network . Their primary objective was to operate these sections purely commercial considerations. political and economic points of views and therefore.On 1st July 1895.89 kilometers and between Laksam and Cahndpur. But later on when various sections were liked up. the construction of then Assam-Bengal Railway was taken up with British Government assistance but that was later on taken over by the Assam-Bengal Railway Company. Railway organizations worldwide have traditionally evolved as vertically integrated transport operating enterprises under public ownership and control.1. Bengal-Assam Railway was split up and the portion of the system.At time of the partition of India in 1947. In 1891. Planning is also very much important for government sector.92 kilometers 4 . Bangladesh Railway at present has got 2855 route kilometers. It begins with the current status and charts out a path to the projected status. Introduction 1. when the first section of 53. both within and outside of the Asia-Pacific region. these rail lines were extended and new sections constructed to cover more areas. two sections of meter gauge lines were opened between Chittagong and Comilla. Then gradually. a length of 50.1 Background: Exercise aimed at formulating a long-term plan.98 kilometers on 4th January 1885. a distance of 14.89 kilometers.The story dates back to 1862. and generally includes short-term (operational or tactical plans) for achieving interim goals. the Government also came in the picture with statutory control and regulations for operation and management of the Railway. Railway Companies formed in England took up the construction and operation of these sections in middle and late 19th century. the British Government of India found them very important for their strategic.11 kilometers of board gauge line was opened for traffic on 15th November that year between Darsana and Jagati. The next railway connection opened to traffic was between Dhaka and Narayangonj. about 2. to meet future needs estimated usually by extrapolation of present or known needs. a length of 149. To the extent that they have been sheltered from competition by government regulatory controls. Railway is one of important government sector. they have been able to grow to dominant positions in the domestic transportation activity of many countries. On 1st January 1942.

the control of Pakistan Eastern Railway was transferred from the Central Government to the Government of then East Pakistan and placed under the management of a Railway Board with the effect from the financial year 1962-63 by the presidential Order of 9th June 1962. Bangladesh Railway had a total of 459 numbers of stations. 1.viz. but effectively availability for services was much less. the control remaining with the central Government of Pakistan Later with the effect from 1st February 1961. 1.4 Limitations of the Study Due to time constraints. Eastern Bengal Railway was renamed as Pakistan Railway. the study has been conducted only on long term planning issues of Bangladesh Railway based on secondary information.2 Objectives of the Study The specific objective of this study is to address various long term planning issues of Bangladesh Railway. 1.245 passengers carriages. The broad objectives are to analyze and indentify the problems in long term planning in public sector of Bangladesh. electricity problem. To prepare this assignment we have faced a lot of problems such as unavailability of lab. Broad Gauge (1676mm) of 914kilometers in the Western Zone only and Meter Gauge (1000mm) of 1296 kilometers and 558 kilometers on the East Zone and the west Zone respectively. spread over 2768 route kilometers of tracks consisting of two gauges . 5 .For more accurate analysis. The report will focus only on the long term planning Bangladesh Railway with an emphasis of bangladesh Railway as a government sector. At the end of 1996-97. unavailability of related books. unavailability of information in net etc. In 1996-97. it owned a fleet of 284 locomotives. 1. further detail studies are required.2948 units of freight wagons.3 Scope of the Study The scope of the study is limited to the issues related to the long term planning program study of Bangladesh Railway. Then in the year 1962. lack of time. 241 in Eastern Zone and 218 in the Western Zone.long which fell within the boundary of erstwhile East Pakistan was named as Eastern Bengal Railway. A macroscopic analysis (aggregate analysis) has been made here for the unavailability of appropriate data in some cases. 152 other coaching vehicle and 1.

it combines forecasting of developments with the preparation of scenarios of how to react to them. which involves analyzing of some important information of railway transportation and long term planning effect of Bangladesh Railway and finally suggesting some recommendation for Bangladesh Railway to remove problem in long term planning. that is. albeit often ignored aspect of planning. planning has a different meaning depending on the political or economic context in which it is used. 1.1 Type of Study The study is mainly a qualitative research. which is mainly collected from Bangladesh Railway. such as the creation of documents.5 Methodology of the Study 1. Planning in organizations and public policy is both the organizational process of creating and maintaining a plan. and the psychological process of thinking about the activities required to create a desired goal on some scale.1. and the strategy to be followed. program. or meetings to discuss the important issues to be addressed. the objectives to be met. 2. or integration of it with other plans. is the relationship it holds with forecasting. An important. Forecasting can be described as predicting what the future will look like. Operational Definitions: Planning: A scheme.2 Source of Data The information used in this assignment is based on secondary source.5. diagrams. The term is also used for describing the formal procedures used in such an endeavor. Beyond this. 6 . Some other statistical data are collected from different published booklets and transport journals. Bangladesh Bureau of Statistics and Internet.5. As such. it is a fundamental property of intelligent behavior. or method worked out beforehand for the accomplishment of an objective. Planning Commission. Ministry of Communication. This thought process is essential to the creation and refinement of a plan. whereas planning predicts what the future should look like.

442. is the Government-owned and Government-managed largest transportation agency of the country. Bangladesh Railway at a glance Bangladesh railway. Since the birth of Bangladesh in 1971. Long Term Planning: In general. a plan with a planning horizon of five years or more. public roads. public transit. some of the branch line railway sections were declared redundant and subsequently closed and no proper attention to maintain the existing assets was being given. The rail-route is composed of MG & DG (with a combination of DG in some sections) tracks.Two attitudes to planning need to be held in tension: on the one hand we need to be prepared for what may lie ahead. Also called long Range plan. 1862. primary education and healthcare for the poor. 3. in the yards and sidings is 4. The total length of running track including track on double line.95 kilometers. BR has passed a glorious past.168 regular staffs. On the other hand. but in most countries the government sector includes such services as the police.302 route kilometers of MG track only and West Zone has 533 route kilometers of MG. our future is shaped by consequences of our own planning and actions. military. managed by about 34. 660 route kilometers of BG and 365 route kilometers of DG track. The government sector might provide services that non-payer cannot be excluded from (such as street lighting). Since its journey on November 15. The composition of the Government sector varies by country. The historical events of Bangladesh Railway are briefly presented at the end of this report (in appendix: A-1). instead of constructing new railway lines. As railway is a very important mode of inland transport. services which benefit all of society rather than just the individual who uses the service (such as public education). it’s healthy grow naturally contributes to the economic development of the country. covering a length of 2854. and services that encourage equal opportunity. 7 .96 route kilometers. Due to truncation from the main system of the then British India rail network. Bangladesh Railway covers 44 civil districts of the country. East Zone has 1. Government Sector: The part of the economy concerned with providing basic government services. The railway network is shown in figure A-1 in the appendix. BR is handicapped to serve the country effectively and efficiently without proper re-orientation and development. linking the entire length and breadth of the country. which may mean contingencies and flexible processes.

East & West. who are responsible accountable to the DG of BR. Railway is under the Ministry of Communication and entrusted with Director General (DG) drawn from the Railway professionals. It is bifurcated into two zones. under the administrative control of two General Managers.Presently. 8 .

cost-effective and environment-friendly mode of transport.5% in 2003-04 considering the effect of PSO and Welfare Grant. They appreciated the government decision for making Bangladesh Railway a separate ministry and said it is the first step towards converting the railways the main mode of transport. 4. Few Long-Term Plans of government for Railways sector: 4. There must now be well-thought out plans and concerted efforts to make the sector vibrant. Bangladesh Metro Rail Project From the time the British introduced railway transportation in the subcontinent. The net operating revenue without considering the effect of PSO and Welfare Grant of BR for the year 2003-04 amounted to Tk. The General Managers of the two zones are assisted by various specialized departments who are responsible for operation. making the Bangladesh Railway a separate ministry is an important initiative towards the expansion of the railway network and improving technically the locomotives and the train carriages. For quite some time. The operating ratio was 128. maintenance and financial management. the country’s railways did not see any development due to government’s negligence and the prescription of credit-providing agencies. which form the basic unit of operation.27 million considering the effect of PSO and Welfare Grant). trains are increasingly getting popular in the 9 .36 million (Tk. mostly safe and fairly rapid means of transportation. a 9(nine) member Bangladesh Railway Authority (BRA) has been formed with the Minster of Communications as its Chairman. The schematic organogram of BR is shown in the appendix (A-2). The environmentalists were addressing a joint rally in front of National Press Club. As such.It is now time that cheaper and safer travel on trains which can be made environment–friendly is organs for our citizens.For policy guidance. 2.418. and also the daily commuters.1. The country’s railways and river routes have been neglected while the roads and highways in the country were being developed for superior road communication . trains have been a cheap. Different environmental organizations on demanded concerted and long-term plans with adequate budgetary allocations for making railways the safe. Despite limitations.452. 1. The railway ministry will require adequate budgetary allocations as it has emerged as an independent ministry. The Director General is assisted by in Additional Director General and second Joint Directors Generals. Each zone is again divided in two divisions.

The train plan is part of a larger sub-regional pact Dhaka wants to sign for better road and rail connectivity. Prime Minister Sheikh Hasina on April 2. 4. It has been flagged as “the key issue” in Prime Minister Singh’s planned talks There is rethinking on the whole paradigm of regional co-operation which will encompass India. The long-term plan is to start trains from Bangladesh to various destinations in India. This is another strong point in favour of expansion of railways. it’s just a Calcutta-Dhaka service. including New Delhi and the Sufi pilgrim town of Ajmer. Nepal. power grid and water-sharing with India. 2010 unveiled the service at the Railway stall in the Digital Innovation Fair at Bangabandhu Sheikh Mujibur Rahman Novo Theatre in the capital. there is more risk in bus journey than in trains. a service which connects Bangladesh with India. and has stressed that Mamata Banerjee had been keen on the plan as railway minister. safe and cheap means of travel. Frequent road crashes and growing traffic jams on roads and highways have virtually shifted the passengers towards railway and people are eagerly looking forward to train travel. Using Grameenphone's "Mobitaka" service. Right now. Passengers prefer train journey due to distressful and costlier bus services and above all. With the Dhaka-Calcutta service already in place. To buy an e-ticket a customer will have to press *133# in his mobile phone and enter a menu. rail passengers will be able to book or purchase electronic railway tickets 10 days prior to their travel using mobile phones. India is now working to link Bangladesh with neighboring Tripura. Nepal and Bhutan.3 Dhaka seeks train to Delhi: Bangladesh wants the Dhaka-Calcutta train service to be extended to other Indian cities. Also in the near future metro-rail and electric train services in the country and within Dhaka and other cite will be emission-free and fast. Moreover trains are less damaging to the environment as modern locomotives emit less as a relatively safer and cheaper alternative. 10 .2 E-tickets System: Bangladesh Railway is going to launch electronic ticketing service to ease the sufferings of passengers. including Delhi and Ajmer. 4.India and Bangladesh to agree to at least two more cities which will be connected by rail. Bhutan and the eastern parts of south Asia. Bangladesh.

The Engineering Cadres are composed of 5 sub-cadres: Civil. Due to the combination of large number of departments. Frankly speaking. the DG holds little control over different activities especially related to planning & policy formulation. 11 . Subsequently on August 12. But. 1982. East & West. Railway was separated from the Ministry and entrusted with Director General drawn from the Railway professionals. a 9 (nine) member Bangladesh Railway Authority (BRA) was formed with the Minster of Communications as its Chairman.East & West. Mechanical. Medical Department etc. Moreover. This large Amalgamation frequently creates Coordination problem In the railway services. comprising of a Chairman and four members.1 Lack of Coordination: Bangladesh railway is a large organization comprising of two zones. For the same purpose the Railway bifurcated into two zones. for administrative convenience and operational reason the Railway Board was abolished with effect from June 3. divided by the river Jamuna. All day-to-day operation and maintenance of BR are performed as a concerted effort of these different Departments. 1995. Besides. a strong Audit & Accounts Department (BCS Audit and Accounts Cadre) is responsible for keeping railway accounts. 1982 and the function of the Railway Board was vested with the Railway Division of the Ministry of Communications with the Secretary of the Division working of as the Director General of Bangladesh Railway. are to help in BR’s operation. the management and development of railway was vested with a Railway Board. there is always a possibility of internal clash on different issues. The Director General is assisted by in Additional Director Generals and second Joint Directors Generals. Problens of Long Term Planning 5. For policy guidance. Signal & Telecom.2 Managerial Problems: Bangladesh Railway management system is under experiment for a long time. under the administrative control of two General Managers (GMs). Electrical and Stores.5. the Railway cadre is composed of two BCS cadres: BCS (Railway Engineering) and BCS (Transportation & Commercial). 5. RNB (Railway Nirapapatta Bahini) in addition of Railway Police. Till June 2. who are responsible/ accountable to the Director General (DG) of Bangladesh Railway. Each zone is further divided into a numbers of divisions under the control of Divisional Railway Managers (DRMs) in association of different Departmental Heads & subordinates. under the administrative control of two GMs who are accountable to DG.

negligible allocation of resources to rail sector compared to roads has led to paralyze the rail transportation system of the country year after year. Operating priority on these routes is given to passenger trains. On the other hand. presently faced by the Bangladesh Railways is a serious shortage of locomotives and route capacity. On of the major problems.3 Lack of Govt. restructuring of BR i. existing railway infrastructures cannot be properly maintained due to lack of resource. 12 . As a result. 5.e.4 Lack of Modernization & Development: The expansion of BR has been blocked since 1947. On the other hand. So it is a challenge for BR to eliminate the inherited structural and physical weakness of Bangladesh Railway. Attention: Bangladesh Railway is a neglected sector for a long period. derailment has become common. No Government of Bangladesh has patronized this thrust sector properly for unknown reasons. little attention has been given to rail sector. Road infrastructure has developed tremendously for huge invest during the last decades. For this reason. railways are always at a disadvantage compared to road transport. the BR suffers an excess of traffic in relation to the capacity of these routes. organizational reform is very much necessary to develop efficient and active management system. As a result. on the contrary. 5. and freight trains incur major delays and frequent cancellations as a result. more than 1200 kms rail lines are under risk for operation due to lack of proper maintenance and attention which is mainly for insufficient fund allocation. No remarkable project/program has been taken to develop and strengthen the railway network. Although huge development budget has been allocated for Communication sector especially for roads & highways sector.This creates operational as well as planning and development problems. This has adverse impact on the efficiency and reliability of railway services. Thus BR was forced to face the uneven competition with other modes of transport. Only 80 kms rail line has been constructed for last 50 years. Far from having insufficient traffic on its trunk routes.

as these restrict operating speeds for Indian trains hauling Bangladeshi wagons. 2. Recommendation 1. References: www. 3. Further areas of railway operations should be opened up to private sector involvement. Bangladesh Railway should commercialise some of the service operations and introduce a new market-based pricing system. Bangladesh railway should provide the backbone of intercity.oppapers. Dualization of railway should be extended from Dhaka to Chittagong to facilitate regional integration. The on-going reforms and reorganization of BR should be completed for transforming the organization into a corporate entity. Whatever reform has been achieved so far should be consolidated by bringing the changes under the legal coverage. Its routes and services need to be integrated with other surface modes to make the railway more attractive to the 13 . Infrastructure and operation need to be segregated and both operated on commercial principles.Google.Wikipedia. WWW. 7. there is a need to standardize coupling and braking system. In addition. and provide uninterrupted broad guage rail service from Rauxal (in Nepal) to Chittagong in Bangladesh.Com WWW.6. intra-city passenger transit and commuter service.

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