The state-owned Bangladesh Inland Water Transport Corporation (BIWTC) owns and operates river vessels and ships and has been consistently profitable throughout the years. However, in the last financial year, the corporation experienced significant losses as its primary source of revenue—the ferry services—started earning less.
The main reason — the inauguration of the Padma Bridge and some major bridges across Bangladesh.
BIWTC faced yet another loss in income when their passenger ships started facing losses. This compelled them to stop their only service from the capital city, Dhaka, on the Dhaka-Barishal-Morolgonj route in September 2022. The ships have been anchored since.
The corporation suffered significant financial losses in the 2022-23 fiscal year and is now seeking ways to overcome this situation. BIWTC officials have stated that although they have implemented some trial-and-error plans, there have been no satisfactory results yet.
"The corporation is now seeking new income sources. We will be introducing new passenger services with additional amenities," said BIWTC Chairman Dr AKM Motiur Raman. As part of a development project, BIWTC will be acquiring 35 new vessels to replace the old ones, cutting operating costs, he added.
BIWTC Chairman further explained that their initiatives also include replacing old ferries that consume excess fuel with newer ones, identifying and blocking loopholes in overall expenditures, and mobilising resources.
The corporation has plans to introduce newer vessels on coastal routes like Bhola, Hatia, and Sandwip. Additionally, the Dhaka-Barishal route will be re-opened. "We may charter vessels or operate them ourselves on these routes," the chairman confirmed.
"The main motto is to earn some revenue. For example, on the Dhaka-Barishal route, we have plans to operate the PS Masud for tourism purposes. This vessel is almost a century old and I believe that travellers will enjoy trips to and from Dhaka under tour packages on this vessel, especially if we provide food and other amenities," he opined.
Motiur noted that they [BIWTC] will continue the service even if the revenue is equal to the expenditures.
BIWTC is also considering another revenue-boosting strategy: operating vessels on the protocol naval route from Dhaka to Kolkata.
"Our inland ship Modhumoti was on charter. We have recently received it. After some renovations, this ship can be deployed on the [Dhaka-Kolkata] route," Motiur said.
The corporation is currently carrying out a thorough feasibility study to assess the potential viability of operating on the Dhaka-Kolkata route.
In 2022, after the inauguration of the Padma Bridge, two major ferry routes—Paturia and Aricha—started seeing a decline in revenue. The Ministry of Shipping then planned to take over some ferries from the Roads and Highways Department to operate them under the BIWTC. The decision regarding this initiative is currently pending with the Ministry of Road Transport and Bridges. If approved, this move could potentially result in a new source of revenue for the BIWTC.
Motiur noted that a government committee is currently examining whether these ferry routes would be suitable for the BIWTC to operate.
He stated that BIWTA, as a government agency, cannot make hasty decisions. They are proceeding with caution and learning from their mistakes. "The primary goal of BIWTC is to provide services to the people, so they are committed to continuing to provide services even if they are unprofitable."
AKM Motiur Raman mentioned that ferry services on the Chilmari-Roumari route across the Brahmaputra River, which commenced in September last year with two ferries named 'Kunjalata' and 'Begum Sufia Kamal', have resulted in continuous losses for the corporation.
How did BIWTC start losing revenue?
According to a BIWTC report, from 2009 to June 2023, they added 49 commercial vessels to their fleet, including 23 ferries, two inland passenger vessels, two coastal passenger vessels, twelve water buses, four sea trucks, two shallow-draft oil tankers, and four container ships.
The corporation currently has 119 commercial vessels in its fleet, including 59 ferries, 20 passenger ships, 16 coastal ships, nine tag ships, 15 cargo or container ships and some 3,453 officers and staff.
BIWTC used to earn the majority of its revenue from ferry services every year, with inland passenger services making the second most significant contribution.
The BIWTC provides ferry services on various routes, such as the Paturia-Daulatdia, Aricha-Kazirhat, Shimulia-Banglabazar-Majhirkandi, Chilmari-Roumari, Najirganj-Dhawapara, Chandpur-Shariatpur, Bhola-Lakshmipur, and Laharhat-Bheduria.
However, one of their most profitable ferry routes, the Shimulia-Banglabazar-Majhirkandi one, had to shut down following the inauguration of the Padma Bridge, drastically reducing its earnings.
Another profitable route of BIWTC, Paturia-Daulatdia, has seen drastic losses as well.
BIWTC earned 94 per cent of its revenue from ferry services in FY 2021-22. However, the percentage dropped to 23 in the following financial year, resulting in a loss of Tk 39.79 crore.
Officials said that the inauguration of the Padma Bridge and several other bridges has reduced the need for ferries, while ship services have experienced a significant decrease in passengers due to the improvement of road transport services.
The BIWTC chairman said they will try to put idle ships and ferries back into service. They hope to generate enough revenue to cover the costs. Otherwise, these vessels will become a burden for the corporation.
