The first of two ships purchased with Bangladesh Shipping Corporation’s (BSC) own funds will join the state-run company’s fleet next September. The second will be added at the end of November. The two new ships will be incorporated into BSC’s fleet, according to BSC sources.
Alongside these two ships, the BSC has also initiated the process of purchasing three more ships. A development project proposal is being prepared for the purchase of these three ships with government funding. BSC aims to complete the procurement process for the three ships through competitive bidding by December.
BSC’s Managing Director Commodore Mahmudul Malek told Prothom Alo that ships that are already under construction at various shipyards around the world are being procured through competitive bidding. This enriches BSC’s fleet in less time. The three additional ships planned for purchase will also be bought while under construction.
He expected them to be added to BSC’s fleet by January next year.
Currently, BSC’s fleet consists of five ships. Of these three are oil tankers and two bulk carriers for general cargo. Once the two new bulk carriers are added, the fleet size will increase to seven. BSC hopes the two new ships alone will generate an additional Tk 15 billion (1,500 crore) in annual revenue. According to insiders, they will also provide rotational employment for 150 sailors each year.
Entire process completed in six months
The process of acquiring the two new ships began last June. On 3 June, the corporation invited international tenders to purchase two bulk carrier ships with its own funds. Two proposals were found to be technically acceptable.
At a meeting of the Cabinet Committee on Government Purchase held last Tuesday, the proposal to purchase the two ships for Tk 9.36 billion (936 crore) from US-based Hellenic Dry Bulk Ventures LLC was approved. These are bulk carriers suitable for transporting general cargo, each with a carrying capacity of 55,000–60,000 tons.
BSC said the US company will supply the ships from Neng Yang Shipyard in China. One ship is about 90 per cent complete and is scheduled to be handed over to BSC at the end of September. The other is over 50 per cent complete and is expected to be delivered in the last week of November.
Before signing the contract, a four-member team led by the shipping adviser—including BSC Managing Director Commodore Mahmudul Malek—will visit the Chinese shipyard on 22 September to inspect the vessels. The deal is expected to be finalised within this month following the inspection.
Officials explained that purchasing ships under construction allows faster procurement, whereas commissioning new builds through tender would take more than three years.
Public sector still lagging
BSC started its seaborne cargo transport business in June 1972 with the ship MV Banglar Doot. By 1982, its fleet had grown to 27 vessels, eventually reaching 38. But since 1991, no new ships were added to its fleet, and the number dwindled to just two at one stage. In 2018–19, the corporation purchased six new ships for Tk 18.43 billion (1,843 crore), though one was later abandoned after an accident.
Even with the addition of two new ships, BSC still lags behind the private sector. The private sector entered the shipping industry five years after the public sector, with the registration of the MV Al Salma (10,000-ton capacity) in 1978.
Atlas Shipping Lines’ founder and managing director Sanaullah Chowdhury pioneered the private sector business. Today, 16 private companies in Bangladesh own a combined 95 vessels. Among them, the KSRM Group has the most (28), followed by Meghna Group of Industries (MGI) with 25, and Akij Shipping with 10. By company size, BSC ranks sixth.
Why more ships are needed
The bulk of Bangladesh’s foreign trade—imports and exports—is carried by sea, and the volume increases every year. In the last fiscal year, 130 million tons of goods passed through Chattogram port, transported by container ships, oil tankers, and general cargo vessels. A large portion of this cargo is carried on foreign-flagged ships due to the limited number of Bangladeshi vessels.
Industry insiders say that expanding the fleet would allow Bangladesh to transport more of its own imports, saving large amounts of foreign currency, while also earning foreign exchange by carrying goods internationally. It would also create jobs for Bangladeshi sailors and provide training opportunities for new seafarers.
Meherul Karim, Executive Director of KSRM Group—the industry leader in ocean-going vessels—told Prothom Alo, “With a larger fleet, there are greater opportunities for employing Bangladeshi sailors, transporting our own goods, and earning foreign currency. BSC’s initiative to purchase new ships will further expand this opportunity.”