No export of ocean-going vessels in 20 months

Two local companies exported ocean-going ships one and a half decades ago, opening a new window for Bangladesh in ship export, but that potential has waned gradually as no ocean-going ship was exported over the past 20 months while only three ships were exported in the last five years.

According to data from the National Board of Revenue, lastly, Ananda Shipyard and Slipways Ltd in Narayanganj exported an ocean-going ship to Enzian Shipping in the UK in September 2022 and the vessel has been registered with Antigua and Barbuda while Western Marine Shipyard Limited in Chattogram exported no ships since January 2020.

Entrepreneurs said Bangladesh started taking the toll since the shipbuilding industry slowdown in 2011 when foreign buyers cancelled a number of export orders. The next impact came after the coronavirus pandemic and the Russia-Ukraine war. Since then entrepreneurship could not recoup the damages. While loans from two ship-exporting companies Ananda Shipyard and Slipways and Western Marine Shipyard turned irregular. However, most of their loans have been regularised under a special policy facility recently and a process is underway to regularise the remaining loans.

Entrepreneurs also said they are now receiving new export orders, and countries also saw a rise in demand for various types of ships and water vehicles. So, they are trying to revive their business once again.

Ananda Shipyard and Slipways executive director Tarikul Islam said, “We lagged in the shipbuilding industry sector due to the cancellation of export orders during the global economic slowdown. However, demand for small ships also grew in global markets; foreign buyers are also visiting the shipyards. We expect new export order will come. There is also local demand along with exports. Altogether, we expect this sector will revive again.”

Ananda Shipyard was the first company to export a ship from Bangladesh when they handed over the container carrier MV Stella Maris to a Danish buyer on 14 September 2008 at a price of Tk 674.9 million. The company also exported a ferry to Mozambique in 2006.

Western Marine Shipyard joined Ananda Shipyard in 2010 when the former exported an ocean-going ship to Germany on 30 November of that year at a price of 1.23 billion.

According to sources at NBR and entrepreneurs, Bangladesh has exported 45 ships and water vehicles since 2006, and 19 of those were ocean-going ships while the remaining ones were ferries and other types of vessels. Earrings from these exports were about Tk 15 billion.

Western Marine Shipyard led in exporting ships and water vehicles with 15 ocean-going ships and 18 different types of vessels being sent to 11 countries, while Ananda Shipyard exported four ocean-going ships and eight vessels.

According to data from export-oriented shipbuilding companies’ organisation Association of Export Oriented Shipbuilding Industry of Bangladesh (AEOSIB), there are currently 10 oriented shipbuilding companies in the country, but none of them have exported vessels yet except for two companies. FMC Dockyard in Chattogram is trying to export ships and vessels, but they are yet to succeed.

Local conglomerates, however, invested in this sector. Conglomerates like Meghana Group, City Group, Bashundhara Group, TK Group and Seacom Group jointly invented to build Delta Shipyard. They have yet to make an export but build ships with international standards. They mainly build ships at their shipyards to ferry their goods.

Ananda Shipyard received the work order on the ship that they exported in 2022 before the global shipbuilding industry slowdown began. They will also export three more ships from that word order and work on shipbuilding has already started. They are also trying to secure new export orders.

Western Marine Shipyard received export orders on a total of seven small-sized ships including oil tanker, tub boat and landing craft from the United Arab Emirates in July last year and February this year.

Entrepreneurs said shipbuilders in Bangladesh mainly build small vessels. Currently, there is good demand for these ships globally.

Western Marine Shipyard managing director Captain Sohel Hasan told Prothom Alo this sector has been stagnant for a long due to the global economic slump, but there has been a huge demand for ship export at global markets.

“If we can catch this opportunity, then good days in ship export will return, and for this, government assistance and bank support is necessary,” he added.

This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna