PROSPECT OF TRANSPORT DEMAND MANAGEMENT

STRATEGIES TO MANAGE TRAFFIC CONGESTION IN DHAKA

Tanweer HASAN Md. Mizanur RAHMAN

Professor
Department of Civil Engineering
Bangladesh University of Engineering
& Technology (BUET)
Dhaka 1000, Bangladesh
Fax: +880-2-966-5639
E-mail: tanweer20@gmail.com
Associate Professor
Department of Civil Engineering
Bangladesh University of Engineering &
Technology (BUET)
Dhaka 1000, Bangladesh
Fax: +880-2-966-5639
E-mail: mizanur@ce.buet.ac.bd

Abstract: The prospects of some market- and non-market based transport demand
management (TDM) measures as candidates of reducing traffic congestion in Dhaka are
discussed. It is suggested that the ever increasing travel demand of city dwellers cannot be
met by providing transport supply only. The main impediment to building new roadways is
the lack of resources and land. Despite the fact that Bangladesh is one of the poorest
countries in the world, the automobile registration is growing at a rate of 30% per year.
Therefore, it would be wise to think about implementing less costly, as compared to supply
side measures, TDM measures to reduce the gap between demand and supply. It is
emphasized in the paper that the market based strategies like pricing measures and employer
based TDM measures have good prospect, and the relevant authorities should undertake
necessary preparations so that they can be implemented within a reasonably short period of
time.

Key Words: Traffic Congestion, Dhaka, TDM

1. INTRODUCTION The continuing growth reflects ongoing

Bangladesh is the seventh most populous
country in the world with a current
population of 164 millions in an area of
144,000 square kilometres. Dhaka, the
capital city, was founded as a provincial city
in 1608. But with its emergence as the
capital of the newly independent country
Bangladesh in 1971, it has witnessed one of
the fastest population growths (4.2 percent
annually) among megacities world wide.
The population has grown from around half
a million in 1965 to 15 millions in 2010, and
it is anticipated to be the world’s fifth most
populous city, with an estimated population
of 20.9 millions in 2025 (Population
Reference Bureau 2010 and United Nations
2009).
migration from rural areas of Bangladesh to
Dhaka’s urban region. Such growth
accounted for roughly 60 percent of the
city’s growth in the 1960s and 1970s, but
more recently the city’s population has also
grown as a result of the expansion of its
administrative boundaries. By contrast, the
rate of natural increase in the city has been
falling, as is the case in most Asian cities.
Dhaka’s population represents more than 40
percent of the total urban population of the
country. Even though the total area of the
city (metropolitan area) is around 1,500
square kilometres, approximately 80 percent
(12 million) of the population is
concentrated in the 360 square kilometres of
the Dhaka City Corporation area.
Historically, Dhaka has grown in an
unplanned and haphazard manner leaving
inadequate space for transport
infrastructure. On the other hand, the rapid
growth in urbanization has created a high
growth in demand for transport facilities.
However, the inability to cater for this high
transport demand, mainly because of
unavailability of land, has eventually
overwhelmed the transport capacity of the
city. The city streets remain congested for
10 to 12 hours during any given weekday
(Siddique 2010).
Traffic congestion reduces the productivity
of urban agglomeration everywhere, but the
consequences in developing country
megacities are even greater (TRB 2006). It
is estimated that Dhaka’s contribution to
national GDP is 15 percent (Hoque et al
2005). Therefore, reducing traffic
congestion is a central element of economic
growth. Moreover, reducing congestion will
also reduce automobile emissions, and thus
urban air pollution, which is currently a
major health problem in most megacities
like Dhaka (TRB 2006).
The urban transport issues of mobility,
congestion, safety and environmental
aspects are becoming increasingly important
and critical in Dhaka. The rapid
urbanisation process, high vehicular
population growth, inadequate
transportation facilities and policies, varied
traffic mix with high concentration of non-
motorised vehicles, absence of a dependable
public transport system and inadequate
traffic management practices and parking
facilities have created a significant
worsening of traffic and environmental
problems in the city. The aim of this paper
is to assess the prospect of applying
transport demand management (TDM)
measures to the Dhaka situation. This paper
begins by highlighting the distinguishing
features of Dhaka city traffic. Then, the
sections that follow elaborate different
transport demand management strategies
applied elsewhere, and their prospects of
reducing the severe traffic congestion in
Dhaka city.
2. TRAFFIC ENVIRONMENT IN
DHAKA
Being the administrative, commercial and
cultural capital of Bangladesh, the mega city
Dhaka has a major role to play in the
socioeconomic development of the country
and in the era of regional and sub-regional
cooperation. But the existing transportation
system is a major bottleneck for the
development of the city. Unplanned
urbanization, especially poor transportation
planning and lower land utilization
efficiency, has turned the city into an
inefficient transport provider. The rapid rise
in population along with increased and
versatile urban land use patterns has
generated considerable travel demand as
well as numerous transport problems in
Dhaka City.
The transportation system of Dhaka is
predominantly road based and non-
motorized transportation (mainly rickshaws)
has a substantial mode share. Dhaka’s road
network is nearly 3,000 kms (of which 200
km are primary) with few alternative
connector roads. Only 7% of total land
space is devoted to the roadway and
transport facilities. Approximately 400 kms
of footpaths are available for pedestrians of
which 40% are being occupied illegally by
vendors and others (Rahman 2008). There
are no marked bicycle lanes and cyclists
share the road with other motorized and
non-motorized vehicles. Traffic movements
at intersections are mostly operated
manually by traffic police, even though all
large intersections (a total of 70) are
equipped with traffic lights and signal
controllers.
The transport sector in Dhaka is comprised
of many different modes of travel-both
motorized and non-motorized. They often
use the same road space which results in a
high level of operational disorder, and
significantly diminishes the efficiency and
effectiveness of the existing transport
services. There are 527,285 registered
motorized vehicles in Dhaka of which
147,283 are passenger vehicles. The level of
motorization in Dhaka is very low- 35
motorized vehicles or 10 passenger cars per
1000 population. The number of motorized
vehicles grew from 303,215 in 2003 to
527,285 in 2009 at an annual rate of 9.8
percent (see Figure 1). The number of
passenger car registrations each year is also
increasing at a high pace from 4,734 in 2004
to 17,654 in 2009 (see Figure 2). This
clearly gives an indication that the
automobile dependency of city dwellers has
been increasing over the years. Bangladesh
Road Transport Authority (BRTA) data also
shows that (see Figure 3) there are 41
percent of motor cycles in the vehicle mix,
followed by passenger cars (27%),
Jeep/micro-bus (11%), bus (4%), taxi (3%),
Total Number of Registered Motorized Vehicles in Dhaka (2003-
600000
500000
Number of Vehicles
400000
300000
200000
100000
0
2002 2003 2004
Figure 1. Total number of motorized vehicles in Dhaka, 2003-2009 (source: Bangladesh
Road Transport Authority (BRTA), 2010: www.brta.gov.bd)
and three-wheelers (3%). In addition to
these motorized vehicles there are over
500,000 rickshaws plying their trade in the
streets of Dhaka (DTCB 2005).
On any given weekday, with just a cursory
look at the streets of Dhaka city, one can
easily conclude that the traffic situation is at
crisis point. Waiting at intersections for 10-
15 minutes, and a mile long queue of stalled
vehicles on major roadways are very
common. A 5-km trip will usually take 45
minutes during peak hours. A recent study
found that all major intersections in the city
operate at well over their capacities
(Siddiquee, 2010) during most of the hours
between 8:00 in the morning and.9:00 in the
evening.
2009)
Annual Growth Rate = 9.7%
2005 2006 2007 2008 2009 2010
Year
 Number of Yearwise Registration of Passenger Cars in Dhaka
(2004-2009)

20000

18000 17654

16000
Number of Paasenger Cars

14000 13749

12000

10000 10244

8000
7403 Annual growth rate = 30%
6000 5633
4734
4000

2000

0
2003 2004 2005 2006 2007 2008 2009 2010
Year

Figure 2. Number of year-wise registration of passenger cars in Dhaka, 2004-2009 (source:

Bangladesh Road Transport Authority (BRTA), 2010: www.brta.gov.bd)

Composition of Motorized Vehicles in Dhaka

Other, 5%

Car, 27%

Motor Cycle, 41%

Jeep/Micro Bus, 11%

Taxi, 3%
Minibus, 2%
Bus, 1%
3-wheeler, 3% Truck, 6%

Figure 3. Motorized vehicle composition in Dhaka, 2009 (source: Bangladesh Road

Transport Authority (BRTA), 2010: www.brta.gov.bd)

There is now an ever increasing urgency to city. Since the country’s independence in
mitigate the severe traffic situation of the 1971, several studies have been undertaken
to identify measures necessary so that the
city can remain liveable. Unfortunately,
recommendations of those studies have
largely never been implemented. A lack of
sincerity and inability to apprehend the
future scenario among the people in the
government are central to the Dhaka
transport crisis. The government has
recently adopted a Strategic Transport Plan
(DTCB 2005) which lists a number of
transport projects that should be
implemented to cope with traffic demand
until 2025. There is a feeling that the
government plans to build elevated
expressways covering most of city areas,
and a Bus Rapid Transit line along a north-
south corridor. The elevated expressway, if
ever built, would naturally relieve the traffic
pressure on the existing city streets.
However, it is also worthy to note that the
highway based capacity expansion measures
are expensive, and may provide only modest
congestion reduction benefits over the long
run, since a significant portion of added
capacity is often filled with induced peak
period vehicle traffic. No question that there
is a large gap between the transport demand
and supply of transport facilities. Two
things can be done to reduce this gap-
increase in supply or reduce the demand.
Building new roads and transport facilities
would be very difficult because of the
scarcity of land and would be very
expensive. Alternatively, more emphasis
should be given on ways to reduce travel
demand through the adoption of suitable
transport demand management strategies to
narrow the gap between demand and supply.
3. OVERVIEW OF TDM STRATEGIES
TO REDUCE TRAFFIC CONGESTION
Congested streets and roadways result when
too many people want to drive on the same
routes at the same time, particularly during
peak commute hours or special events.
Transport Demand Management (TDM)
programmes focus on changing or reducing
travel demand, particularly at peak commute
hours, instead of increasing roadway supply.
Thus, TDM makes more efficient use of the
current roadway system. The sections below
provide brief summaries of various types of
market- and non-market based TDM
measures that are effective in reducing
roadway traffic congestion. Note that
extensive discussions about various TDM
strategies can be found elsewhere (TDM
Encyclopaedia).
Road Pricing involves charging motorists
directly for driving on a particular road or in
a particular area. There are a number of
possible road pricing schemes involving
various time periods, areas and means of
charging (Ison 2004). Two most successful
road pricing schemes are London’s
congestion pricing and Singapore’s
electronic road pricing. London’s
congestion charging scheme was
implemented in February 2003, and traffic
impact assessed a year after showed
significant improvements in terms reduction
of auto uses, increase in bus ridership,
reduction in delays, and increase in vehicle
speeds (TfL 2004). In Singapore, the first
road pricing scheme, known as the Area
Licensing Scheme, was introduced in the
restricted zone in 1975. In September 1998,
the electronic road pricing system replaced
the manual system for the restricted zone
and expressways. The benefits of the
introduction of the electronic road pricing
scheme were an immediate increase of
traffic speed by 22 percent, and total
reduction of traffic in the restricted zone
during the charging period by 13 percent
(Keong 2002).
Ridesharing refers to carpooling and
vanpooling, in which vehicles carry
additional passengers. Ridesharing has
minimal incremental costs because it makes
use of vehicle seats that would otherwise be
unoccupied. Studies have shown that
ridesharing programmes can reduce daily
vehicle commute trips to specific worksites
by 5-15%, and up to 20% or more if
implemented with parking pricing (Ewing
1993). Transit related transport demand
management strategies emphasize
increasing transit ridership by improving the
efficiency of existing services. An improved
public transport service is required to
accommodate the solo drivers priced out of
their cars due to road and parking pricing.
Parking Management and Parking Pricing
are effective ways to reduce automobile
travel, and tend to be particularly effective
in urban areas where congestion problems
are greatest. Efficient pricing of on-street
parking would make urban driving more
expensive but more efficient, due to lower
levels of traffic congestion and the relative
ease in finding a parking space near
destinations, as well as providing new
revenues. Fuel price increases can help
reduce traffic congestion by reducing travel
demand. INRIX (2008) results indicated that
a 28% increase in average fuel prices during
the first half of 2008 contributed to a 3%
reduction in average national Travel Time
Index values. Alternative Work schedules
can also reduce peak period commute travel,
and thus can reduce traffic congestion.
Distance-Based Fees (also called Pay-As-
You-Drive, Mileage-Based and Per-Mile
pricing) tend to be economically more
efficient and fairer than existing pricing
practices. Converting fixed costs into
distance-based charges gives motorists a
new opportunity to save money when they
reduce their mileage. Telework involves the
use of telecommunications to substitute for
physical travel, and gives people a way to
avoid travelling under congested conditions.
Employer based transport demand
management strategies (commute trip
reduction programme, also known as travel
plan) include public and private sector
programmes and services that encourage
employees to change their commuting
practices, incentives that make publicly
provided travel modes more attractive,
disincentives to solo commuting, and
employer management policies that offer
employees flexibility in travel mode
choices. A study of travel plans developed
by 49 employers showed that the reduction
in vehicle trips could be as high as 24.5
percent with an average of 15.3 percent
(TCRP 1994).
4. PROSPECT OF IMPLEMENTATION
OF TDM STRATEGIES IN DHAKA
In the developed countries, such as the US,
the historical roots of TDM may be traced
back to at least to World War II, when
company buses, carpools and staggered
work shifts were used to attract employees
and manage on-site congestion problems
(Giuliano and Wachs, 1992). The policy
goals of accommodating traffic demand by
constructing new facilities started losing its
feasibility in the 1980’s in the US due to the
continued (and in some case explosive)
urban growth and automobile use, which
has led to unprecedented levels of traffic
congestion. By the end of the 1980’s, the
expectations and structure of TDM
programmes and policies changed
dramatically. TDM programmes are now
typically mandatory rather than voluntary.
Policy changes to favour TDM measures
also took place in most of the European
countries and in Asian countries such as
Japan and Singapore.
While the benefits of adopting various travel
demand management strategies are proven
in reducing automobile trips to a significant
amount, the developing country cities
mainly look at the supply side of managing
transport demand to reduce the severe traffic
congestion. It is simply being overlooked in
the developing countries that restricting
demand can also be a rational strategy to
reduce traffic congestion. It is encouraging,
though, to note that research in some
developing countries like Malaysia,
Indonesia, Saudi Arabia, and South Africa
are looking at different travel demand
management measures that they think can
address the traffic problems in their
respective cities (Kasipillai and Chan, 2008;
Ueckermann and Venter, 2008; Prandono et
al, 2009). The suggested travel demand
management strategies include financial
measures like elimination of fuel subsidies,
imposition of fuel taxes, increase of road
taxes, and congestion charging in Kula
Lumpur; congestion pricing and high
occupancy vehicle lanes in Johannesburg;
and carpooling and bus lanes in Jakarta and
Bandung in Indonesia.
While traffic has increased at a very high
rate, neither major capacity expansion
projects nor any improvements of public
transport services were implemented in
Dhaka during the last two decades.
Naturally, the question arises: Is it really the
right time to consider the prospect of
transport demand management when little
has been undertaken in terms of supply to
cater for the increased demand? The answer
would appear to be ‘yes’. Even though the
government has endorsed the strategic
transport plan which recommends the
building of new highways and mass rapid
transit facilities, how far those targets can be
achieved remains questionable. The two
likely obstacles are limited resources and
lack of available land. Managing the flow of
traffic during the construction period may
also be a great concern. The transport
demand management measures, on the other
hand, can be implemented within a
relatively short period of time and are less
costly (TRB 2006). There is a need to learn
from the experiences of the developed
nations: ‘highways cannot eventually get
you out of the congestion’. The high rate of
automobile registration (see Fig 2) indicates
that each year some non-automobile (bus
and rickshaw) trips are shifted toward
automobile trips. This trend can be
minimized if transport demand management
measures like improvement of transit
services as well as financial disincentives to
automobile users are implemented.
Transport demand management measures
are, indeed, preventive in nature. And
‘prevention is better than cure.’
Pricing Measures: In recent years, the
government has taken actions, mainly
financial, which has made the automobile
use more costly. The measures, however,
were taken merely to increase the revenue
rather than as transport demand
management measures. The import tax on
passenger cars is over 200 percent, the
registration cost is around 2-5 percent of the
total price of the vehicle. The fuel (petrol
and octane) price is no longer subsidized,
and currently priced at US $1.07 per litre.
These increases, however, had little effect
on the usage of automobiles because, the
automobile owners now use much cheaper
alternative fuel (converted natural gas),
which costs only one third of the cost of
petrol. With respect to the total population
(or families) of the city, only a few can
afford to own an automobile, mainly
because of its high price (US $ 18,000-
32,000). Therefore, the government, as part
of a transport demand management policy,
can impose even larger financial measures
without causing any equity concern for the
larger portion of the city dwellers who are
poor. To start with, the price of the natural
gas can be increased substantially. The fuel
tax, road tax, and yearly fitness fee of
automobiles can further be increased. An
area based road pricing scheme may also be
considered to discourage the use of
automobiles. The labour is cheap, and a
paper based pricing can be a viable option.
The financial measures can only be effective
in reducing automobile use when there are
comfortable and reliable public transport
services. The current conditions of public
transport services (mainly buses) in the city
are not at all promising. Therefore, before
taking initiatives to make automobile use
more expensive and take it to a level when
people think of giving up their automobiles,
the government should make every effort to
start implementing the recommendations of
the Strategic Transport Plan, especially
those about rail based (buses are susceptible
to traffic congestion) mass rapid transit
facilities. An effective mass rapid transit
system can play even a bigger role in the
city. Almost thirty percent of the trips in the
city are made by rickshaws (DTCB, 2005).
While the developed nations are advocating
land developments where more people
would use non-motorized transport, too
much slow-moving non-motorized vehicles
in the stream can have adverse effects on the
quality of flow of traffic (Hasan and
Monayem, 2003). It is reasonable to assume
that an affordable and reliable mass transit
system would attract a significant portion of
rickshaw travellers and would thus help to
reduce the number of rickshaws.
In Dhaka, parking is virtually free and lacks
proper enforcement and regulation. The
parked vehicles occupy almost half of the
roadway in busy areas. As a result, the on-
street parking significantly deteriorates the
quality of traffic flow (Hasan and
Monayem, 2003). Parking should not be
free since there is a cost in providing
parking spaces. The further increase in cost
of driving an automobile due to parking
pricing would work as a deterrent to
increased use of automobiles.
Employer Based Measures: Commuter trip
reduction programmes have good prospects
in reducing automobile usage in the city. A
significant portion of automobile work trips
are attracted by the national and
multinational commercial business
establishments. While mandatory travel
plans may not be feasible at this moment
due to the lack of efficient mass transit
facilities, but provision of company vehicles
for the transport of employees can be made
mandatory. The companies may be allowed
to use some of their funds allocated for
‘corporate social responsibility’ in this
regard. For example, the company buses for
employees of ready-made garment
industries may not only meet their mobility
needs, but also can help improve the traffic
situation. The trips made by these workers
are entirely on foot. The high volumes of
pedestrians often cause adverse effects on
the quality of traffic flow (Hoque et al,
2005). Therefore, accommodating majority
of them into the company buses would
ensure a balance between the amount of
pedestrian volume and the pedestrian
facilities provided. The school trips are also
a cause of great concern. The school trips
are mostly automobile trips. Except a very
few, none of the schools have any form of
school transport services to carry their
students. The traffic congestion in the early
morning and early afternoon are caused due
to the school traffic. The government could
take steps to make it mandatory for the
school authorities, mainly private English
medium schools, to arrange student
transport services with medium sized buses.
If the school authority can ensure a safe and
reliable transport service, then a majority of
the students are expected to use the school
buses. Consequently, the amount of
automobile trips would be considerably
reduced.
Alternative Work Schedules: In 2009, the
government, in an attempt to reduce the
level of congestion, implemented staggered
working hours for different types of
organizations. The working hours of
schools, private organizations, and
government organizations were staggered
by thirty minutes to an hour. The
congestion, however, remains severe as
usual. The staggered working hours can
only be effective when there are distinct
peaks and off-peaks. The city streets are
carrying volumes well over their capacities
for almost 12 hours, and as a result the
changes in traffic volumes due to the
staggered working hours could not bring
about any noticeable changes in the level of
congestion.
Ridesharing: Even though Bangladesh is a
moderately liberal Muslim country,
carpooling may not be a good prospect in
near future. People would prefer not to share
their cars with others. However, a social
campaign about the benefits of carpooling
may bring some change. Vanpooling, on
the other hand, may be worth considering.
The government may initially offer
incentives to private companies to operate
vanpooling on an experimental basis to see
the level of acceptance among the travellers.
Distance Based Fees and Telework: While
it is true that ‘pay as you drive’ and
telework have the potential of reducing the
amount of automobile usage, their prospects
as transport demand management measures
in Dhaka are not so promising. While the
country is making continuous progress
technologically and the internet is widely
available in the city, it is still too early to
think about these measures.
5. CONCLUSIONS
Severe traffic congestion, in a city like
Dhaka, cannot be reduced to an acceptable
level by building roadways only. To reduce
the gap between demand and supply,
transport demand management strategies
should also be considered. Both market and
non-market based TDM strategies are
discussed in this paper. The prospects of
these TDM measures as candidates of
reducing congestion in Dhaka are also
discussed. It is emphasized in the paper that
the market based strategies like pricing
measures and employer based TDM
measures have good prospect, and the
relevant authorities should undertake
necessary preparations so that they can be
implemented within a reasonably short
period of time. It is also important to note
that the transport demand management
policy can only be effective if in fact the
people involved change their travel
behaviour. There can be additional
problematic obstacles to the implementation
of transport policies in a country like
Bangladesh. In some cases, the obstacles are
primarily institutional in nature and include
overlapping and uncoordinated institutional
structures, inadequate or poorly trained
technical staff for planning and
implementation functions, a lack of legal
capacity to enforce regulation and laws, and
limited institutional support for new, and
often poorly understood, policies. In other
instances, the major impediment to the
implementation of transport strategies is the
political framework in which decision
making takes place. These obstacles can be
overcome through changes in legislation,
better training of personnel, and enhanced
citizen participation.

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