• BR provides catering, tourism services under small cell
• Understaffed "Catering, Tourism Cell" limited in scope
• Most services leased out to private operators
• Compromised food quality, overcharging a recurring issue
• New company likely to be named "BR Catering and Tourism Company Ltd"
• BR currently has one affiliate company

The railway authority is on its way to form a separate company to improve and professionalise catering and hospitality services on trains.

A committee led by an additional secretary of the rail ministry has already held its first meeting to draw an outline for the company, likely to be named "Bangladesh Railway Catering and Tourism Company Ltd."

Currently, Bangladesh Railway (BR) provides catering services to a handful number of passenger trains under a small cell, "Bangladesh Railway Catering and Tourism Cell", formed in April, 2019. Meanwhile, private operators provide the services to most of the other trains.

But for both cases, complaints about quality and price are rife among passengers who board the around 350 passenger trains run by BR.

Despite securing a huge investment in the last decade and a rise in the number of passengers, the sector has failed to achieve expected service quality, experts said.

Moreover, the state-run transport agency remains a losing concern, with its losses increasing steadily over the years.

Although the ministry approved recruitment and management guidelines for its catering service cell last October, the authorities are yet to deploy dedicated staffers for it, which is run under the railway's marketing department.

This is why the cell can only serve four to five new trains, hiring staffers on a temporary basis and outsourcing food services.

As a result, private operators, taking lease from BR, provide catering services to most of the passenger trains, often violating prices fixed by the railway authorities and compromising on food quality to enhance their profits.

It is worth mentioning that in India, a separate company takes care of catering and tourism services on trains, stations and other locations.

Started in 1999, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) even promotes domestic and international tourism through the development of budget hotels, special tour packages, information and commercial publicity, and global reservation systems.

Citing IRCTC's annual report, an Indian newspaper reported the company earned Rs 349.64 crore in 2019-20, which is one third of BR's total income (Tk 11,25.8 crore) for the same fiscal year.

NEW COMPANY

The decision to form the separate company came on November 10, when the railways ministry decided to initiate the company at a meeting.

A seven-member committee led by Pronab Kumar Ghosh, additional secretary of the ministry, was tasked to prepare a draft proposal by December 10 in this regard.

Talking to The Daily Star yesterday, Pronab said, "We have already held our first meeting on November 30. For the proposal, we will consult the railway authorities as well as experts."

At the meeting, the committee mulled over whether the company can be formed with a five-member board of directors initially. The ministry secretary or additional secretary could chair the board, while two directors will come from BR and another member will be taken from Bangladesh Standards and Testing Institution (BSTI).

The company might also have a managing director, preferably with experience working outside government agencies, for planning and management.

During the preliminary stage, the company will operate with minimum of human resources, which is to be gradually increased over time as its operations expand.

Currently, the Container Company of Bangladesh Ltd (CCBL), which deals with containers and related issues, is the lone company affiliated with BR.

A railway official said BR proposed to recruit manpower to strengthen the cell, but the ministry decided to turn it into a company to take prompt decision and expand catering services and tourism. But this company will not be effective, if those involved with passenger traffic and catering management are not involved, the official added.

It began its operations this October after being formed in May 2016.