Traffic congestion causes Tk 19,555cr loss a year: study

Traffic congestion in Dhaka eats up Tk 19,555 crore a year, a study said yesterday.

The estimated loss is more than half the country's total annual development outlay and one fourth of the revenue collection target for the current fiscal year. Two executive engineers and a transport economist of Roads and Highways Department carried out the study. The findings were revealed at a seminar on "Traffic congestion in Dhaka and its impact on business: Some remedial measures" organised jointly by Metropolitan Chamber of Commerce and Industry (MCCI) and the Chartered Institute of Logistics and Transport at the MCCI.

The study says Bangladesh would enjoy the benefits of a huge economic boost by alleviating traffic congestion in the capital, which contributes to more than 35 percent of the country's gross domestic product (GDP) worth nearly $100 billion. It suggests that mass transit system be introduced and power be decentralised. It said the two remedial measures could save the businesses, commuters and city dwellers from financial losses and waste of their working hours.

MCCI President Anis Ud Dowla chaired the seminar, which Home Minister Sahara Khatun addressed as chief guest. The study estimates the congestion costs by analysing travel time cost, cost of excess fuel burnt, revenue loss by passenger transport operators, environmental damage and cost of traffic accidents. Of the Tk 19,555 crore (nearly $3 billion) financial loss, wasted time on the streets accounts for nearly Tk 11,896 crore followed by environmental cost Tk 2,200 crore and business loss of passenger transport and freight industries Tk 2,000 crore each.

Excess fuel (at the rate of CNG price) eats up Tk 575 crore and accidents Tk 50 crore. The study finds that about 3.2 million business hours are lost every day, which is about one hour per working people. The study identified demand and supply gap as major causes for congestion.
It says transport infrastructure supply is below the demand. Inadequate capacity of intersections, mixed traffic on same road space and operational disorder, absence of scientific traffic control, disorder in bus operations, inadequate parking space and east-west road links are fuelling the traffic jam. Home Minister Sahara Khatun admitted that traffic congestions have become a national problem. But she said it would not be resolved over night. She said the government has been working to construct five flyovers at five important intersections in the city, which she said would reduce congestion significantly.

The minister also told the meeting that the government in association with the World Bank is working on how it can introduce mass transit system and underground railway in Dhaka. Parking regulations are also being formulated, she said.
MCCI President Anis Ud Dowla said streets in Dhaka are very inadequate against the demand. He said only 6 to 7 percent area of Dhaka is for roads against the standard 25 to 30 percent. Moreover, hawkers, indiscriminate parking and illegal establishments have occupied vast areas of roads, said the MCCI president. Ainun Nishat, vice-chancellor of Brac University, said introduction of mass transit is a must. He also asked the government to be bold in taking decisions.

Dhaka Metropolitan Police Commissioner Shahidul Haque blamed lack of farsightedness for the present traffic problems. "The problems should have been identified 20 years ago," he remarked. Syed Rezaul Hayat, president of the Chartered Institute of Logistics and Transport and a former communications secretary, also spoke on the occasion.