Transport demand in Bangladesh has grown faster than the GDP growth of the country and doubled between 1974 and 1984 to 35 billion passenger kms (pkms). In 1996, it reached 72 billion pkms. Freight transport has also increased at a similar rate and reached 10 billion ton kms in 1996. However, the share of transport modes has not increased in the same proportion. The road sector carries the majority of passenger traffic, increasing 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 has been slightly eroded from 37% in 1974 to 30% in 1996. In comparison, road transport increased 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 in road vehicles has led to the dominance of the road sector, although transport by water still remains substantial (JICA,  the Feasibility Report of Padma Bridge; March, 2005).