MANILA, Feb. 21 (Xinhua) -- The Asian Development Bank (ADB) said on Wednesday that it has approved loans totalling 360 million U.S. dollars to buy modern rolling stock and support reform in Bangladesh Railway to help promote a shift from roads to rail.

"Railways in Bangladesh potentially offer a cheaper, safer, and more fuel-efficient means of transport of goods and passengers than roads, but have been held back by lack of investment and aging and unreliable rolling stock," said Tsuneyuki Sakai, an ADB senior transport specialist, in a statement.

Sakai said the ADB Railway Rolling Stock Operations Improvement Project will boost the operational performance of Bangladesh Railway by introducing new technology, equipment, and processes that will be cleaner and more efficient, cutting carbon dioxide emissions.

"However, its market share has dropped because of inadequate investment in railway infrastructure and rolling stock over an extended period," the ADB said, adding that this has resulted in unreliable freight operations and uncomfortable experiences for passengers.

"Most rolling stock is more than 30 years old, and much is past the end of its economic life. Maintenance facilities have also not improved over time and are not adequately equipped," the ADB said.

Under its Seventh Five-Year Plan for fiscal years 2016-2020, Bangladesh government has placed special emphasis on railway development, setting targets to increase the market share to 15 percent in freight transport and 10 percent in passenger movements by 2020.

Bangladesh Railway has also been operating at a loss, its operating costs about double what it makes from revenue.

Starting with a Railway Sector Improvement Program in 2006, ADB has provided four loans to the government for railway development totaling 2.81 billion U.S. dollars.

"Three loans invested in network improvement in key sections of the railway, with two targeting enhanced South Asian subregional connectivity," the ADB said.

"This latest project seeks to address the investment and modernization needs of Bangladesh Railway. It will procure 40 broad gauge locomotives, 125 luggage vans, and 1,000 wagons for freight trains for use on major lines of the rail network," the ADB said.