The Metro Rail isn’t just for passenger transport anymore; it’s now poised to become a new frontier for your business expansion. The Dhaka Mass Transit Company Limited (DMTCL) is set to introduce commercial usage opportunities at Metro Rail stations alongside passenger services. This marks a groundbreaking step for DMTCL, as it will boost their revenue streams and introduce new services for passengers at the stations.
Farmgate and Karwan Bazar: Prime Commercial Floors#
Initially, Farmgate and Karwan Bazar stations of MRT Line-6 have been selected for commercial activities. These two stations are three-storied, and approximately 25,000 square feet of vacant space on their second floors will be leased out for commercial purposes. These expansive floors are suitable for various businesses, such as shopping malls, daily shops, banks, offices, or other commercial establishments.
DMTCL recently published a notice regarding this on their website. The notice states that DMTCL will lease these floors in accordance with their Commercial Space Renting or Leasing Policy 2023 (including the first amendment).
Application Process and Deadlines#
Interested organizations must obtain application forms by submitting a pay order or bank draft of BDT 10,000 (non-refundable) per station in favor of DMTCL.
- Application Form Collection Period: May 4 to June 1 (during office hours).
- Application Form Collection Location: Room No. 731 (Level-7) of the Metro Rail Building, located in Uttara Diabari.
- Application Submission Deadline: June 15, until 3:00 PM.
For detailed information, interested parties are encouraged to visit DMTCL’s official website: www.dmtcl.gov.bd .
Rental and Leasing Terms#
These spaces will be leased through an open bidding process. The rental proposals must be equal to or higher than the rates of Bashundhara Shopping Complex or Jamuna Future Park, indicating a premium valuation for these commercial spaces. The lease term is set for 10 years and is non-renewable.
Faruk Ahmed, Managing Director of DMTCL, stated that Farmgate and Karwan Bazar stations each have two large floors totaling 25,000 square feet. Additionally, the remaining stations on Line-6 have an average of three to four smaller rooms, approximately 150 square feet each, which will be leased for different types of businesses. The larger spaces will be leased in the first phase, followed by calls for applications for the smaller rooms.
Why This Commercial Initiative?#
The Metro Rail began limited operations in December 2022, with full-route train services commencing in November 2023. DMTCL’s financial reports show that revenue from ticket sales amounted to BDT 18.28 crore in the 2022-23 fiscal year, which surged to BDT 243.91 crore in the 2023-24 fiscal year.
However, even with this significant revenue, it’s not enough to cover all expenses. Besides daily operational costs, DMTCL must repay a substantial loan of BDT 19,718.47 crore taken from JICA. In this context, DMTCL views the initiative to lease out vacant spaces at stations as a promising alternative source of income. This will not only bring financial stability but also make a wider variety of services available to passengers at the stations.
How attractive do you find these commercial spaces at Metro Rail stations for your business expansion? Let us know your thoughts!