Thursday, January 8, 2015

Shipbuilding: A potential sector:Daily Sun

 Although Bangladesh is historically known as ship-making country, such glory faded away long ago. It has however started to come back again. The country lost investment to the tune of Tk 2,000 crore during political instability in 2012-13 but a double volume is expected this year. The shipbuilding business is like to be a potential sector like RMG if patronised by the government. Entrepreneurs co
ncerned claimed they will be able to contribute 1 percent to the GDP. Western Marine Shipyard has been established on 42 acres of land at Patia on the southern bank of Karnaphuli River with a view to exporting ships. An on-the-spot visit shows that some large and small ships are being built there. Two of those are meant for export. There are two large sheds at the entrance with vessels being made there. Some of the workers are entrusted with welding and some grinding. Gigantic computerized cranes are taking heavy parts from one place to another. Later, the parts get installed under the shed. After being produced in separate places of the shipyard, staggered parts are getting assembled under the shed to be a complete ship. The engineers and foreign experts are supervising the whole work. The company has to comply with rules and regulation applicable for export oriented shipyard. As Karnaphuli, Meghna and Rupsha have more navigability, large shipyards are set up on the banks of these rivers. Big vessels with capacity of carrying 12,000 metric tons of goods are being manufactured there. If shipyard zone can be set up at the Sandip and Kutubdia channels of the Bay of Bengal, large ships having capacity of 35,000 metric ton may be made. It is learnt from the concerned sources, the cost for building a 500 tonnes capacity ship will be between Tk 90 crore to Tk 100 crore while the cost for building a fishing trawler will between Tk 18 crore to Tk 20 crore. Marine Engineer Md Abdul Mobin, Director (Technology) of Western Marine Shipyard told this correspondent, “It will take two years for building a 5000 tonnes capacity ship. Now 5000 workers are working in the Western Marine Shipyard. The number of workers will depend on work order for building ship. A 250-seated modern hospital is situated at the shipyard premises for ensuring health service for the workers. Besides shipyard workers, many members of the workers’ family and adjacent locals are taking health services from the hospital.” He also said, the largest passenger-carrying ship named MV Bangalee was built by the Western Marine Shipyard which is plying into different inland routes under the supervision of BIWTC. This correspondent talked about the prospect of shipbuilding industry to Marine Engineer Tariqul Islam, Executive Director of Ananda Shipyard. He said, European Union countries have overcome the global economic recession. Now many EU countries are issuing work order for building ship to meet theirc domestic demand. He said, China and Korea build big ships. So we have an opportunity to build small and medium sized ships. Bangladesh’s ship building industry will go ahead if we catch EU market. Md Abdul Mobin of Western Marine Shipyard said, “The developed world now prefers green energy rather than dependency on oil. Country’s shipbuilding industry brings some new changes considering customers interest. Solar and wind power will be used as a fuel of those ships. Western Marine has built 131 ships. The company already exported 14 ocean-going ships to Denmark, Finland, Pakistan and Germany. Marine Engineer Tariqul Islam said, “Our neighbouring countries brought the bank interest rate to single digit for encouraging the shipbuilding sector. Whereas the interest rate of our country to this sector is between 14 to 18 percent. It is very hard to run this sector without banking investment. Long-term credit facilities are needed for this sector. Mentioning that bank guarantee is a big problem for this sector, he said the western countries do not accept commercial bank’s guarantee certificates of our country. Though commercial banks provide guarantee certificates with the help of truthful foreign bank, the cost becomes double. If Bangladesh bank arranges bank guarantee for the ship building industry then ship building cost will be reduced. Like garments, ‘Expo Development Fund’ is needed, claimed Tarikul Islam. When contacted, Bangladesh Bank (Chittagong) Executive Director Md Mizanur Rahman Joarder said, “There is no scope to provide bank guarantee to any private organisation. The same rule is applicable even for the private banks.” Regarding the quality, standard and position of ship built by Bangladesh, Naval engineer Md Abdul Mobin said the quality and standard of locally produced (Bangladesh) ship is better than ships built in India and China. But we are lagging behind in the competition as building cost is more as we have no logistic support. Some 15 to 20 percent cost of fund increases due to lack of heavy equipment. We are taking part in the competition as the labour cost is less here though 80 percent of raw materials are brought from abroad. At present electric wire, hydraulic machine and furniture used in ships are being produced in the country. In addition, if factories or organisations are set up in the country for producing other necessary materials which are used in ship building will not be required to be imported, he said. Concerned said different countries of the world have started to know Bangladesh as a ship building country. There are more than 100 small and large ship building industries in the country. Of which, some five to seven companies are exporting ships. Some Tk 400-500 crore has been invested in each of the export-oriented ship building industry. The government is now earning around Tk 2000 crore per annum. Several industries are flourishing behind one ship building industry. Centering each industry urbanisation is taking place and massive employment opportunity is being created. Naval engineer Md Abdul Mobin said this industry will flourish further if the government provides loan at less interest like SME or agricultural sector. In addition, if the government invests large amount this industry will advance a lot. “The government is now thinking to build ship building zone following the demand of ship builders. The government has to come forward to build zone in such area where river’s navigability is very smooth,” he said. “Presently, Bangladeshi naval engineers are now taking training in Finland on the design of ships. Earlier, Bangladesh used to purchase ship’s design from abroad while big amount of foreign currency was expended. Now we are making design of ships by ourselves. That time will come when we will make design in large scale,” he added.

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