Proceedings of MARTEC 2010
The International Conference on Marine Technology
11-12 December 2010, BUET, Dhaka, Bangladesh
POTENTIALS, PRIORITIES AND PROSPECTS OF SHIPBUILDING
IN BANGLADESH
Dr Abdullahel Bari, FRINA
Chairman
Ananda Group
10/1, 9th floor, City Heart 67, Naya Paltan
Dhaka-1000, Bangladesh
Email: ananda@anandagroup.biz
PREFACE
Bangladesh has been since 2005 building and exporting ships to owners from Denmark, Mozambique,
Germany, The Netherlands and Finland. Germanischer Lloyd has declared in September 2008 Bangladesh as a
shipbuilding nation of international standards. Bangladesh is traditionally a sea fairing nation and has a rich
heritage of timber shipbuilding of many hundred years. Ibne Batuta traveled back in 14th century in a timber
ship built in Sonargoan, Bangladesh. Caesar Fredrick, the European traveler, reported Chittagong as one of the
best places for building timber commercial vessels in 15th century. Sultan of Turkey had his fleet built from
Bangladesh in 17th century. Bangladesh built timber warships fought in Trafalgar in 1805. Bangladesh is
presently contributing to the shipbuilding industries globally through its exported workforce. These facts do not
speak only of a heritage but of an inbuilt ability of shipbuilding of people of this region which had been for ages
dependent on waters. Bangladesh could not keep pace with the evolvement of new technologies such as, use of
man made materials replacing natural building material timbers and fuel burned power pushing away wind
power, i.e. sails. Bangladesh did not have well developed fleet for seaborne commerce nor adequate inland or
coastal carriers at her independence in 1971. There was nearly no serious shipbuilding in steel in Bangladesh
then. However only over a period of 40 years after independence, Bangladesh has developed a large fleet of
about 20,000 vessels comprised of inland & coastal commercial vessels, and various types of working and
fishing craft. There are indigenous shipyards, more than 200 in numbers (Fig.-1) building and repairing these
vessels and in turn have provided a strong prepared base for building ships of international standards.
Shipbuilding industry, to grow, needs among others, demand for shipbuilding, skilled low cost workforce,
elevated engineering skills, deep draft basins with access to the sea, a reasonable infrastructure, reasonably
good weather, long term government policy support, an attractive investment climate, allied forward &
backward linkage industries, a strong financial system, access to the shipping world and courageous
entrepreneurs. This presentation will establish that most of these Bangladesh already has and for a few
remaining, the environment is conducive for accelerated availability or a solution. National and international
issues and factors which may apparently not encourage shipbuilding in Bangladesh will be addressed to,
impacts of them evaluated and measures towards finding a solution, if there is any, incorporated.
1. POTENTIALS
1.1 Workforce
Shipbuilding, an ancient assembling industry
producing tailored products, accordingly having the
largest human input per unit of produce, is always
moving to countries with lower wages of required
skills. Bangladesh has comparatively a lower cost of
human inputs and can offer the best combination of
cost, quality and productivity with its fast growing
young workforce.
Table-1: Comparison of labour costs
Bdesh
0.5
India
1.0
China
1.5
Singapore
3.0
S.Korea
6.0
xiii
Japan
12.0
Italy
13.0
France
13.0
Norway
14.0
Finland
15.0
Proceedinggs of MARTEC 20010
Figu
ure 1: Maximum
m Available waater depths
1.2 Produ
uctivity
1.4 Quallity
A compparison of prodductivity (Table-2) shows thaat
while Chinna may be well
w
ahead of India in totaal
shipbuildinng, its producttivity is almost the same aas
India. Pro
oductivity of Bangladesh workforce iis
expected very
v
similar to that
t of India.
Quick
k learning ability of the worrkforce is a keey
element to
t help Banglaadesh move innto internationnal
shipbuildiing faster. Tim
me required foor an individuual
artisan off a category to move to the hiigher level, succh
w
has beeen
as, a semii-skilled weldeer to a skilled welder,
found onn an average to be 3 mon
nths. Indigenouus
shipyards, dockyards annd workshops as
a a whole in its
i
present sttatus is large inn numbers and
d proving a veery
large poool of practicaally experienced shipbuildinng
workforcee such as, sshipwrights, gas
g
cutters annd
welders. These artisans may be quiickly trained to
undertakee building shhips following classificatioon
societies’ standards annd rules. Thee workforce is
conversan
nt with Engllish and it is possible to
communicate in Engliish nearly in
n all levels. In
w
are veryy diligent.
general workers
1.3 Lower Effective Cost
C
Table-33 speaks for th
he strength off Bangladesh too
grow as a shipbuilding nation in term
ms of effectivve
cost of worrkforce.
A draw
wn comparisonn of the cost annd productivityy
of a few shipbuilding
s
coountries vis-à-v
vis Bangladeshh
shows Indiia the nearest competitor is 2.5
2 times awayy
and Koreaa, 4 times cosstlier in termss of workforce
alone.
Taable-2: Compaarison of produuctivity
Country
Japan (20004)
Korea (20
004)
China (20004)
India (200
06)
Bangladeesh
Compleetion M DWT
Employees
E
23.2
23.0
8.8
0.6
80,000
71,800
158,000
12,000
xiv
Producctivity DWT
Perrson/year
290
320
56
50
40
Proceedings of MARTEC 2010
Table-3: Cost-effectiveness
Country
Weighted labour rate
Weighted productivity
Weighted average output cost
Bangladesh
0.5
1.0
0.50
India
1.5
1.2
1.25
China
1.5
1.4
1.07
Korea
6.0
3.0
2.00
Singapore
4.0
2.0
2.00
Germany
15.0
5.0
3.00
on a reasonably attained even keel of 4 m may be
built and taken to the sea from any place in between
the sea and the capital, Dhaka. Multipurpose cargo, oil
tankers and container vessels having light weight of
say, 7000/8000 tons i.e. DWT of 20000 – 25000 tons
may be built for export in shipyards to be established
on the river frontage shown in Fig.-1. There is a
seasonal variation of water depths in rivers due to
monsoon and flood as shown in Fig-1. A variation of
5.0m is expected in the worst case only due to flood.
There is no bridge and the electricity cable is at a
height of 150m above the highest water level. Air
draft is thus unrestricted.
1.5 Higher Level Skills
There are quite a many engineering universities
under Public and Private sector producing graduates
of various disciplines, such as, engineering, industrial
production, metallurgy, management, finance &
marketing. Bangladesh University of Engineering &
Technology (BUET), one of them, has been producing
Naval Architect and Marine Engineers since 1974.
Chittagong Marine Academy has been producing
entrant marine engineers and captains. Quite a few
universities and institutions are producing graduates
in the field of management, finance and marketing.
Indeed Bangladesh has a prestigious position
worldwide for its young white colour workforce.
2.2 Meghna basin
Keeping in view the market segment which turns
to be the most suitable for Bangladesh at least in the
beginning, Meghna basin may be the best place to
start with. Meghna basin is near to the capital
connected to the seaports and the capital by highways.
It has blessings of calm weather and sweet water.
Being inland it offers an opportunity of using
slipways at a reasonably lower investment. Tidal
variation is 400mm at Meghnaghat. Meghnaghat is
only 230 Kms from the sea and therefore needs only a
journey of 10/12 hours for a new built vessel to go to
the sea for tests & trials.
1.6 Expatriates
Since 1974, more than 50% of BUET produced
graduate naval architects and marine engineers have
been working abroad and about 60% of them in
shipyards. Ex-mariners can be great contributors in
the future shipbuilding industries of Bangladesh. In
Singapore, more than 30% engineers and workers are
from Bangladesh in shipbuilding and ship repair. In
Dubai and in shipyards in the Persian Gulf,
Bangladeshi workers represent more than 20% of the
total workforce. Shipbuilding engineers and workers
from Bangladesh are engaged in countries like USA,
Australia and Canada and numbers are increasing.
Many of them on return may join the shipbuilding
sector and inject their experience and add new
exposure to accelerate faster healthy growth of
shipbuilding in the country.
2.3 Mongla basin
Mongla basin with available water depth of
minimum 8.0 m may be considered one of the best
places for shipyards and dry-docks for building and
repair of ships of reasonable sizes. The basin enjoys a
tide water rise of more than 3.0m. The basin is very
near to the Mongla port and not far from the city and
outside the cyclone zone.
2. GEOPHYSICAL CONDITIONS
2.1 Deep draft basins
2.4 Karnofuli basin
Excluding sand bars and shoals here and there,
rivers are very deep in Bangladesh. Water frontage
which may be considered suitable for organized
planned shipyards is shown in Fig.-1. Available water
depth maintained guaranteed up to Dhaka port is
3.66m. However commercial vessels navigate with
4.25m loaded draft. Thus vessels having a light draft
The Karnofuli River has been unfortunately
handicapped by bridges of low height. Beyond the
bridge, the Karnofuli River up to the sea may be kept
outside of any planned shipbuilding activities because
other better important national cause may use, such
as, for port facilities etc.
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Proceedings of MARTEC 2010
2.5 Long coast line & river falls
3.5 Backward linkage industries
The long coast line and mouths of rivers falling to
the sea offer excellent places for development of
shipyards and shipbuilding zones. The topography of
rivers and river banks bestow special advantages for
building small and medium size ships. Shankoo basin
and Meghna fall are good examples.
Bangladesh is now exporting a few items meeting
quality requirements, which may be used in
shipbuilding. Of them, furniture, pipes, iron chains,
wire and cables, light fittings, glass sheets, synthetic
ropes are mentionable. The total export earnings from
these items was US$ 32.04 million in 2008-2009.
Smaller industries such as for
(a) ship outfitting i.e. manufacture of doors,
windows, port holes, bollards, fairleads, stairs,
ladders & gangways, ventilation grills and mouths,
container fittings, cathodes, manholes covers, bell
mouths & suction strainers,
(b) safety accessories and signs i.e. life jackets,
buoys & boats with davits, survival suits, rescue
nets & baskets, maritime signs, symbols &
posters,
(c) anchor & anchor cables,
(d) shafts, propellers & stern tubes,
(e) switch gears, panels etc.
may be quickly developed in Bangladesh. Indeed the
size of investments required for these industries suit
most to the present state of industrialization in
Bangladesh. When these industries develop, the value
addition may exceed 55% of the export value of a
ship. These industries being known through feeding
national yards for their quality may export to
shipyards around the globe. The export earnings and
employment generations of these industries then may
even equate those of shipbuilding itself.
2.6 Weather conditions
Apart from the heavy long monsoon and therefore
high humidity and rains, Bangladesh has a very good
weather allowing 14 working hours a day for most of
the year. Temperature is very reasonable and cold
protection is hardly needed.
3. OTHER FACTORS
3.1 Infrastructures
Infrastructures required for shipbuilding industry
to grow are not superhighways but super fast internet
system which Bangladesh has. Bangladesh offers
excellent telephone communications. Captive power
supply is the norm of the day and a large shipyard
may easily have its own power generation.
Bangladesh
has
reasonably
developed
gas
transmission network and electricity distribution
system.
3.2 Training institutions
There are vocational training institutions financed
and managed by the government with an intake
capacity of some 35512 annually producing skilled
manpower, a portion of which may flow to
shipbuilding industries. In addition, there are
institutions under NGOs and the private sector which
impart trainings for manpower export. On demand,
private sector training institutions may feed
shipbuilding industries. Any shipyard may have
license to initiate its own training programme and get
trained personnel certified of a particular skill in
various fields of artisans.
3.6 Access to the shipping world
Bangladesh built ships enjoy duty free market
access. Bangladesh has earned confidence of shipping
world of the quality of her built ships. It is known to
shipping world through its sea farers, marine
engineers and captains and to the shipbuilding
through its work force and engineers working in
shipyards around the globe. It is also well known to
the shipping world through its ship breaking industry.
Identifications of potentials of a deep sea port reflect
the significance of its important geophysical maritime
location.
3.3 Linkage industries
3.7 Courageous entrepreneurs
Forward and backward linkage industries both of
services and hardware are essential for shipbuilding.
SME, small and medium enterprises, is a slogan in
Bangladesh. The Government, development partners
and financial institutions are jointly and individually
working to strengthen the sector.
Courageous entrepreneurs have created a
reasonably strong industrial base in just over three
decades from a purely agrarian economy of
Bangladesh which suffered extreme commercial
exploitations and social & technological oppression
including blockade to the outside world in the age of
colonialism and neo colonialism. These entrepreneurs
will be playing a commendable role in the
development of modern shipbuilding industries. The
growth will take place in the private sector, an
advantage compared to many competing countries.
3.4 Forward linkage industries
Forward linkage industries such as design firms,
model testing basins may quickly be established in
Bangladesh. For shipbuilding consumables, such as
welding materials & gases already there are a few
plants and new plants may quite easily be set.
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Proceedinggs of MARTEC 20010
3.8 Statuttory quality control
Indian Register off Ships (IRS
S) and Chinna
Societty,
both
governmennt
Classification
organizatioons, discharge the function likke internationaal
classificatiion society in shipbuilding.
s
T
These
countriees
are develooping substantiially and bothh are becomingg
major playyers in internattional shipbuild
ding arena. Foor
Bangladesh
h to enter intto internationaal shipbuildingg,
rigid and appropriate control
c
shall be
b ensured onn
shipbuildinng industry, ship desiggn and shipp
constructioon. Bangladeesh is plannning to havve
Bangladesh
h Register of Ships
S
(BRS).
4. WOR
RLD SHIPB
BUILDING
Shipbu
uilding demandd is a functioon of shippingg
activities and
a in turn, of seaborne comm
merce, nationaal
waterbornee trades, any water
w
borne activities, such ass,
fishing, ex
xploration, extrraction and reseervations, coasst
guarding and
a naval aspirrations. Shipbu
uilding demandd
creates shippbuilding capaacity.
In war-shaaken world, Jap
pan took shipbuuilding in 19522
as its majoor investment sector
s
and became one of thhe
leading ecoonomies in 19
970 in 20 yearrs. South Koreea
took shipb
building as a thrust sector in 1980 whenn
worldwidee recession occcurred and beccame the leadeer
in 2000, also in 20 years..
China too
ok shipbuildingg in Asian Finnancial Crisis in
1990 seriously and is a major econom
mic power todaay
in about 20 years. IIndia started providing 300%
d is earning US
S$
incentivess to shipbuildinng in 1999 and
5.00 billion now annuaally. Bangladeesh has declareed
shipbuildiing as a thrustt sector in 20009 and hopefullly
by 2019 Bangladesh
B
wiill be a rich ecconomy buildinng
& exportiing ships.
4.1 Worlld shipbuildiing capacity
Globaal shipbuilding capacity (Fig..-4) was only 75
7
MDWT against
a
a foreccasted demand of 196 MDW
WT
at the endd of 2006. Shhipbuilding faccilities had beeen
faster deeveloped in nnewly emergeed shipbuildinng
nations, such
s
as, in Chhina, Vietnam
m and India annd
sophisticaated large faciliities came up in
i Korea.
The supply equating deemand was 1200 MDWT at thhe
008. Forecastedd newbuilding demands of 1996
end of 20
MDWT could be meet adequately by created &
planned facilities
f
by ennd of 2010. Fig.-5
F
shows thhe
global eco
onomy enteringg recession at the end of 20007.
The recession started pushing the world shippinng
d
so also the demand for
f newbuildinng.
demand down
The demaand continued to fall and reaached a level of
nearly 000 MDWT by tthe end of 20009. A few shipps
ordered here
h
and theree, such as Iraan to Korea are
a
ignored. Quite
Q
a many shipyards speecially in Chinna
fell and so
ome planned shhipyards discontinued.
F
Fig.-2:
New bu
uilding Orders Korea
K
Fig.-4: Supplyy and demand world
shippingg/shipbuildingg
4.2 Capa
acity develop
pment in Ban
ngladesh
F
Fig.-3:
New bu
uilding orders China
C
The demand
d
in thee areas of serrvice & suppoort
craft, suppply vessels, port servicingg craft, vesseels
playing inn national waaters, fishing fleets
f
as well as
smaller shhips and vesssels for short haul and feedder
services has been consistent.
c
Thhe replacemeent
requiremeent of a larrge number of
o small shipps
operating in European waters will crreate a growinng
demand. Enforcement
E
oof use of doublle skin tankers,, a
strong deesire of fuel eefficient ships and restrictionns
including emission lim
mits to hold goood environmeent
and usuall need of replaacement will keep
k
the demannd
growing.
xvii
Proceedinggs of MARTEC 20010
These vessels are of great importance
i
too
h export shipbbuilding, not only
o
because oof
Bangladesh
their sizes that Bangladeshi yardss may handlle
b
of thhe
reasonablyy satisfactorilyy but also because
higher reqquired human input in thesee categories oof
craft. Hum
man input is our strength
h and many a
countries, these days, do not like to get in thhe
constructioon & supply of these vessels. Europeann
leftover bu
uilders are grradually beingg pushed awayy
from the supply chain of these smalll vessels/craft
ft.
Korea andd even Chinaa are losing interest
i
in thiis
section of market. An oppportunity is thhus on the sighht
f Bangladeshh.
to evolve for
A shipp built in Banngladesh will be about 15%
%
cheaper annd that if a siingle ship is in
i demand andd
Bangladesh
h has the techhnical know-hoow and facilityy
to build the order shall come to Banglaadesh. It shouldd
be an interrnational intereest to develop Bangladesh
B
as a
shipbuildinng nation for a greater beneffit to the worldd
shipping in terms off supply of vessels at a
comparativvely lower costt. May this be one
o of the mosst
crucial issuues in view of the
t recession.
Bangladesh
h may withoutt much difficuulty become thhe
4th largest ship
s
exporter and
a some day, not
n far off, mayy
supersede Korea.
K
Compaared to China, a ship built in Bangladesh
B
will be 12.5% cheaper.
Two shhipyards are buuilding ships for export, onne
of them haas been operaating now for more than twoo
decades annd the other has been develooped only oveer
last two years. Three other yardds are eitheer
ng their existinng facilities andd or offing new
w
modernizin
and plann
ning to start buuilding ships in
i less than tw
wo
years. In next two yearrs i.e. by the end of 2012, at
b building shipps
least 5 shipyards in Banngladesh will be
b
for exporrt and by 20133 at least 10 shhipyards will be
exportingg ships built by them.
5. WEA
AKNESSES
S TO BE OV
VERCOME
E
Bangladesh is a very new entrant in thhe
a
weaknessses
international shipbuildding. There are
me by appropriaate steps to meeet
which muust be overcom
challenges and be ccompetitive. A glimpse of
weaknesses is pictured bbelow:











Scarcity of capittal
H
High
financing cost
B
Backwardness
in technology
In
nadequate electtric supply
W
Weak
diplomacyy
In
nadequate mannagement pool for expandinng
shhipbuilding inddustries
L
Lack
of basic ddesign abilities
L
Longer
lead tim
me in material mobilization
m
L
Lack
of compreehensive skill development in
vaarious shipbuillding trades
N policy bodyy for advising government on
No
o
shhipbuilding
Su
ubsidies/suppoort in variouus shipbuildinng
co
ountries.
Fig..- 5 : Change inn economic baackground
Coost in Million US$
U
T
Table-4:
Compaared building costs
c
S No.
Sl.
1
2
3
4
5
Cosst item
Maaterials, Machinnery &
Equuipment
Lab
bour
Oveerhead
Fin
nancing
Misscellaneous
Tottal
xviii
Chinna
4.255
Banglaadesh
4.550
1.755
0.500
1.000
0.500
8.000
1.000
0.220
1.10
0.220
7.000
Proceedings of MARTEC 2010
development. Bangladesh aims to attain middle
income level and two digit annual growth rates by
2020. This is possible on the one hand by
industrialization and on the other hand by increasing
foreign currency earnings. Both ends may be met
through a faster healthy growth of shipbuilding, which
creates scope for employment and earns huge foreign
currency through export as well as bless the economy
with various spills over benefits.
6. GOVERNMENT POLICIES
Although shipbuilding is a global industry and
international bodies are monitoring various aspects of
shipping and shipbuilding including quality etc., there
is no global umbrella to create an even price platform
for shipbuilders to compete. The governments, such
as, Korea, China, Vietnam, India and other
shipbuilding nations provide 20-30% of total ships
prices as subsidies to shipyards in one form or
another. The shipbuilding industry has its own
distinctive features as compared to other industries. It
is unique in a way that it sells first and construct later
unlike other industries where one manufactures first
and sells later. Further shipyards get orders only if
they are credible i.e., deliver quality ships and on time
and it can be credible only after successfully
executing
consistently
under
international
competition. Further it has to be globally competitive
against the best yards in the world. Unfortunately the
shipyards in Bangladesh are facing exorbitantly high
financing charges as compared to foreign yards.
Unlike other manufacturing industries the product
takes two years to be delivered and requires high cost
finances over a long period. This weakens the
competitiveness of Bangladeshi yards. However in
general, government policy in Bangladesh is to
encourage and attract foreign investments.
Bangladesh has a quite well defined FDI (foreign
Direct Investment) attracting policy. All benefit
available for a national entrepreneur is equally
available to foreign investors. Bangladesh is looking
forward to having investment from abroad side by
side to that of national private sector investments.
Diversifications of exports and expansion of export
basket is an integral part of the long term adopted
industrial and economic policy. Bangladesh
government is keen to support a fast healthy growth
of shipbuilding industries.
Shipbuilding has been declared as a “Thrust
Sector”. Green channel port clearance system of
imports of raw materials for export shipbuilding has
been accorded. A 5% incentive has been provided.
Bangladesh government is already keenly initiating
various action plans to overcome the aforementioned
weaknesses.
To compete with other Asian shipbuilding giants
in the sector, Govt. may allow Bangladesh ships
exporters a subsidy to the tune of 20%. Subsidy will
help to get a foothold in the international market.
Bangladesh is willing to extend all necessary
supports.
7.1 National shipping cost
Bangladesh today is paying billions of dollars as
freight for her sea borne commerce, less than 6% of
which only is carried by Bangladeshi ships. Both
import and export trades are growing nearly 8%
annually but often under various undue pressures
from foreign shipping companies. India, to its
shipping, has been supporting local shipbuilding as
well as shipping by financing 30% of ships’ prices by
providing 30% cash incentives to local shipyards for
building any ship longer than 80m. Only a proper
development of shipbuilding sector may bestow the
nation with shipping companies at reasonable costs.
Such flagged ships will carry her commerce both
ways and also create a platform for marine cadets and
seamen training who in turn may be employed in
other flagged ships to earn foreign currencies. Inland
waterway and coastal shipping are playing very vital
roles in the overall national development in
Bangladesh by rendering transport services.
7.2 Training centers
Shipyards are training grounds and impart through
on job practice very high skills turning the society, on
the one hand, technologically advanced and on the
other hand enriching the manpower export of the
country. Shipyard’s personnel such as electricians,
pipe fitters, shipwrights, welders & cutters are highly
valued in all industrial fields. Shipbuilding is
subsidies in various countries including the developed
ones taking into consideration, among others, this
need.
7.3 Other benefits
For her industrial growth, infrastructure
development, exploration and extraction of mineral
recourses, production & harvest of sea resources and
for a strong navy Bangladesh needs her shipbuilding
industry to grow.
8. PROSPECTS
7. PRIORITIES
Shipbuilding may be defined to encompass the
design & drawings, engineering, the new building,
repair & rehabilitation of ships and various linkage
industries producing any item that may go on board a
ship in the process of building and repair. The
Building ships for export is a priority to the
business community, the government and financing
institutions in Bangladesh. Over ages, shipbuilding
has served as the stepping stone for national
xix
Proceedinggs of MARTEC 20010
prospects have
h
been guesstimated in money
m
terms foor
a planned period of ten
n years. A heuuristic approachh
pplied.
has been ap
8.3 Contrributions of lin
nkage industrries
50 ind
dustrial units ((Fig.-8) totalinng both forwaard
and back
kward links, have been conservativeely
estimatedd. These industrries will feed the
t new buildinng
and ship repair industtries resulting in an increaase
d earnings in thhe
value adddition, i.e. increeasing retained
country and
a reducing leead time. Thesse industries will
w
earn foreeign currenciees by exportting to foreiggn
shipyards as well and suuch earnings may
m well exceeed
US$ 250 million per yeear. An employyment of 10,0000
is envisag
ged.
8.1 New bu
uilding earnin
ngs
There will
w be 10 shippyards exportinng ships by end
of 2013. Considering
C
th
he present trennd continued, a
growth paattern has been shown in Fig.-6 whichh
although has
h no real dataa support but the
t spirit of thhe
author who
w
has experienced commendable
developmeents and chan
nges in the marine
m
field inn
Bangladesh
h over the last three decades. With 50 yardds
developed by 2021, Bang
gladesh will exxport 500 shipps
on an averrage each of 100,000 dwt earnnings US$ 12.5
billions annnually retainning more thhan US$ 7.000
equivalent per year. A diirect employm
ment of 150,0000
may be attaained.
G
pattern of repair yardss in Bangladeshh
Fig.-7: Growth
* A repaair facility (sslipway/dry-doock) capable of
docking up
u to Panamax with 50 dockiings in a year on
o
an averag
ge.
Fig.-6: Groowth pattern off shipyards in Bangladesh
B
* A unit shipyard is a facility witth employmennt
strength of
o 3000 and capable
c
of buuilding 10 noss.
10,000 dw
wt MPC of an average
a
value, over projected
time, of US
S$ 25,000 milllion per piece.
8.2 Repairr earnings
In ship repairs, materrial input accouunts for usuallyy
25%-30% of value of a repair, rem
maining is foor
services i.ee. financing coosts, facility coost, utilities andd
manpower. Thus Banglaadesh has specific interests inn
developingg ship repairr facilities. However
H
suchh
facilities need
n
comparatiively higher in
nvestments andd
high leveel skilled maanpower. Rep
pair industriees
generally follow a reasonably grownn new buildingg
sector.
Havingg 20 docks/yarrds (Fig.-7) eaach serving 500
ships annu
ually and billinng US$ 5.00 million
m
for eachh
ship serveed, Bangladessh may earn 5 Billion US
S
dollars rettaining about US$ 3.50 biillion. A direcct
employmennt opportunityy of 80,000 workforces iis
foreseen.
G
patterrn of linkagee industries in
Fig.-8: Growth
Bangladesh
* A linkaage industrial unit with 2000 employs will
w
produce US$ 10.00 million a year,
y
all beinng
considered as export thhrough ship buuilding/ repair or
directly accross the bordeer.
8.4 Beneffits of developed national sh
hipping lines
One of
o the major spills
s
over bennefits of a weell
grown shhipbuilding seector is the evolvement of
xx
Proceedings of MARTEC 2010
national shipping lines. Assuming an addition of 10
ships a year to national shipping lines, a fleet of 200
ships i.e. 2 million tons carrying capacity is seen
developed by 2021. International sea borne commerce
of Bangladesh may well exceed double of the volume
of today i.e. reach to 100 million tons. 25% of these
commerce will be borne by own fleet by 2021 earning
about US$ 2.00 billion a year. For a healthy growth of
exports and supplies of raw materials to local
industries, national fleet carrying the commerce is a
must. Apart from the retained earnings, employment
benefits and created training scope, the role which
will be played by evolved nation shipping lines in the
national economy is invaluable.
in 10 years and the number one in the field in 30
years, I foresee the required investments from home
and abroad in shipbuilding and repair industries as
well as in forward and backward linkage industries in
Bangladesh.
Bangladesh has all the ingredients for labour
intensive shipbuilding and allied industries. With the
encouragement
of
Government,
dynamic
entrepreneurship,
infrastructural
advantages
shipbuilding may take the lead and stand out as the
flagship sector of our economy. Soon, Bangladesh
will enjoy the ripple effect of shipbuilding in the form
of expansion in heavy industries. A change in lives of
our people, through industrial employment
generation, is expected and inevitable.
9. INFERENCE
Bangladesh may lookout for the market segment
of small & medium sea going vessels for new
building and repair and vessels operating in national
waters in many countries. This market is more than
US$ 100.00 Billion and a US$ 10.00 Billion portion
of this market is not difficult to be secured by
Bangladesh.
Cherishing the firm goal of Bangladesh to be the
4th largest ship exporters and repair services renderer
xxi