Transport demand in Bangladesh has grown faster than the GDP growth of the country. It is doubled between 1974 and 1984 to 35 billion passenger kms (pkms). In 1996, it reaches 72 billion pkms. Freight transport also increases at a similar rate and reaches 10 billion ton kms in 1996. However, the share of transport modes not increases in the same proportion.

The road sector carries majority of the passenger traffic, increases from 54% in 1974 to 73% in 1996, mainly at the expense of rail. In the freight sector, transport by water is more dominant, although its demand slightly erodes from 37% in 1974 to 30% in 1996. In comparison, road transport increases to 63% in 1996, again mainly at the expense of rail transport. Thus, the faster expansion of the country’s road network as well as the increase vehicles, led to the dominance of the road sector. Although, transport by water still remains substantial (JICA,  the Feasibility Report of Padma Bridge; March, 2005).