Dhaka’s persistent traffic congestion is no longer just an urban inconvenience—it is a macroeconomic constraint. The capital’s transport inefficiencies are eroding productivity, inflating logistics costs, and weakening the overall competitiveness of Bangladesh’s economy.
Despite continued investment in road infrastructure, congestion has intensified. This raises a fundamental policy question: is Dhaka investing in the right mix of transport modes?
Dhaka’s transport system is heavily skewed towards road-based mobility. Yet the structural limitations of this approach are well established. The city has only about 7 per cent road coverage, far below the international benchmark of 25 per cent, while vehicle growth has significantly outpaced infrastructure expansion.
As a result, traffic congestion has reached critical levels, with studies estimating annual economic losses of between $3 billion and $7 billion due to delays, fuel wastage, and reduced labour productivity.
In such a constrained urban environment, relying predominantly on roads is neither spatially feasible nor economically efficient.
Bangladesh possesses a natural comparative advantage in inland water transport (IWT), derived from its extensive river network. However, this advantage remains underutilised in urban mobility planning.
From an economic perspective, IWT offers several distinct benefits. It is widely recognised as one of the most energy-efficient transport modes, with fuel consumption four to eight times lower than road transport.
This has direct implications for Bangladesh’s balance of payments, given the country’s high dependence on imported fuel. Shifting even a modest share of passenger and freight movement to waterways could reduce fuel expenditures and improve energy efficiency.
Moreover, IWT can lower logistics costs by offering a cost-effective alternative for both passenger and cargo transport, thereby supporting broader economic activity.
The Hatirjheel water taxi system provides a localised example of how water-based transport can contribute to congestion mitigation. Since its introduction, the system has enabled thousands of daily commuters to bypass road congestion and reduce travel time significantly.
While limited in scale, Hatirjheel demonstrates that urban waterways can function as viable transport corridors when integrated with surrounding infrastructure. It also highlights the importance of multimodal connectivity—linking water routes with road access points to maximise effectiveness.
However, the broader lesson from Hatirjheel remains underexploited. Scaling up such initiatives could deliver substantially higher economic and social returns.
Recent discussions among professionals—including those on LinkedIn—have highlighted the feasibility of replicating the Hatirjheel model in Dhanmondi.
Dhanmondi represents a high-density, high-demand transport zone characterised by chronic congestion. The presence of Dhanmondi Lake, a centrally located water body, presents an opportunity for introducing a pilot-scale water transport system.
From a policy standpoint, such a system could:
- Reduce short-distance vehicular trips, which disproportionately contribute to congestion
- Improve last-mile connectivity within the locality
- Serve as a demonstrative project for decentralised water-based mobility
If successfully implemented, Dhanmondi could function as a scalable micro-model for similar interventions in other parts of the city.
The effectiveness of inland water transport lies not in isolated projects, but in network integration. The proposed 112-kilometre circular waterway around Dhaka, connecting major rivers such as the Buriganga, Turag, Balu and Shitalakkhya, offers a strategic backbone for such a system.
Combined with intra-city water routes—Hatirjheel, Dhanmondi, and potentially Gulshan-Banani lakes—this could form a layered transport network that redistributes traffic across multiple modes.
Such a multimodal framework would enhance system resilience, reduce congestion pressure on roads, and improve overall transport efficiency.
Business stakeholders have also emphasised that a strengthened inland waterway system could reduce logistics costs and improve trade competitiveness, further reinforcing the economic rationale.
Despite its potential, the development of urban water transport faces several constraints, including:
- Declining navigability due to siltation
- Water pollution and environmental degradation
- Encroachment on riverbanks and canals
- Limited intermodal integration infrastructure
Addressing these challenges requires a coordinated policy response. Key priorities should include:
- Regular dredging and waterway maintenance
- Restoration and protection of urban canals and lakes
- Investment in terminals, jetties, and intermodal facilities
- Public-private partnerships to accelerate implementation
Equally important is institutional coordination among relevant agencies to ensure coherent planning and execution.
Dhaka’s congestion crisis cannot be resolved through incremental road expansion alone. A strategic rebalancing of the transport system is essential—one that leverages the country’s natural endowments while addressing urban mobility constraints.
Inland water transport offers a viable, cost-effective, and energy-efficient alternative. The experience of Hatirjheel and the emerging proposal for Dhanmondi demonstrate that the concept is both practical and scalable.
What is required now is not further evidence, but decisive action.
Integrating waterways into Dhaka’s transport strategy is not merely an urban planning choice, it is an economic necessity.