45 ocean-going ships imported in 4 years

[Hammer-fist]

45 ocean-going ships imported in 4 years

Published : Monday, 18 February 2013


Jasim Khan

Local importers bought and got registered a total of 45 ocean-going reconditioned ships during the present government's four-year tenure paying Tk 220 million in taxes and employing around 1,400 mariners to the industry, sources said.

Several policy decisions by the present government including reduction of registration cost, flexibility in call signing process, allocation of frequency and providing ship station licences caused the rise in registration of ocean-going ships.

Sources said local steel giant, Kabir Steel and Rerolling Mills (KSRM), owns a total of 13 ships followed by Bashundhara Group which owns five ships.

HRC Group, Granidiur Group, Ratanpur Shipping, Trans Ocean Group, Abul Khair Group, Ibrahim Navigations, Akij Group, Meghna Group, East Coast Group, Desh Bandhu Group and Vanguard Group are the other business houses, which own three or two ocean-going ships each.

Despite the rise in the ocean-going ships the local businessmen could cut only 6.0 per cent mark out of the entire maritime export-import business of the country.

Principal Officer of Mercantile Marine Department (MMD) Capt Habibur Rahman said the present government made many complex rules easy to pave the way of local businessmen into shipping business.

"The registration fee for a 40,000 tonnes ship was over Tk 100 million previously which has been brought down to Tk 5.0 million only. This lower rate of registration fee has attracted local businessmen to join shipping business," Habibur Rahman said.

He said the fleets of local businessmen have now emerged as an alternative to the foreign-owned shipping companies. This will help stabilise the shipping business and reduce cost of services, Rahman added.

When asked, Chittagong Chamber of Commerce and Industry (CCCI) President Morshed Murad, who own two ocean-going ships, said the local businessmen are gradually learning the shipping business and will soon start international shipping business.

He said by procuring ocean-going ships local importers of mainly essential commodities and basic products - sugar, oil, and steel billet - bought ships to reduce dependency on shipping companies and to cut cost of essential commodities.

Many other local businessmen are aware of the benefit of the business and are trying to buy dozens of ships in the coming years, he added.

The International Association of Classification Society (IACS) is now delaying the registration of local ships and the ship owners have demanded of the government to negotiate with them so that they can get IACS registration as soon as they become registered with MMD.

"Without registration a local ship cannot be identified as Bangladeshi Flag Carrier and cannot start business internationally," Morshed Murad said.

General Secretary of Marine Officers Association Capt Faisal Azim said the employment opportunity for the local mariners is being expanded as local mariners are gathering experience in the shipping companies.

He said the country would be able to get chance of employing around 20,000 mariners in the international shipping companies in future.

Sources said due to the registration complexity with IACS, at least 25 more Bangladesh-owned ocean-going ships were being registered as flag carriers of many countries like Panama, Bahamas, Liberia, Antigua and Saint Antilles before the present government came into power.

Financial Express :: Financial Newspaper of Bangladesh

@eastwatch @UKBengali @saleen_s7

 

[saleen_s7]

Most of the ships if not all are mostly bulk carriers. I think only one of the groups listed above has a tanker. We should aim for more varieties. Oil tanker, container, and possibly bigger ships such as suezmax. Offcourse, another main issue is the extremely high interest rate and volatile market condition. For example, the freight now is around 8000-10000 dollars a day, however back in 2007 some companies made about 40,000 dollars per day. So when banks decide to charge such a high interest rate and repay back period is only 5 years, it carries a huge risk of not being able pay back.
First of all, the MAJOR issue is the shipping minister, Shahjahan, who is illterate and is not capable of functioning a business of such high stature. The reason why most Bangladeshi companies register in singapore or panama is because of this stupid thing called AED- advanced income tax, where ship owners have to pay even before they bring the ship. The ministry is too stupid to realize that we can just register the ships elsewhere. Secondly,government should support the industry by giving out contracts like they do in cement industry. 2ndly, this market is far bigger than the ship building industry which can only make ships wth 15,000 dwt. Anyways, I will shut up now as this is getting much too detailed for everyone elses taste

 

[UKBengali]

It is good that BD importers have brought 45 ocean-going ships in the last 4 years but the problem is that a large proportion of them should have been built in BD.

The major problem, as stated by saleen_s7, is that local shipbuilders are only able to build ships up to 15,000 dwt.

Ananda shipyard is currently carrying out expansion to allow it to produce ships up to 30,000 dtw which will allow it to sell more ships at both home and abroad.

In the current difficult economic climate, BD needs to be able to produce a wide variety and size of ships to be able to earn billions a year from this industry.

 

[saleen_s7]

It is good that BD importers have brought 45 ocean-going ships in the last 4 years but the problem is that a large proportion of them should have been built in BD.

The major problem, as stated by saleen_s7, is that local shipbuilders are only able to build ships up to 15,000 dwt.

Ananda shipyard is currently carrying out expansion to allow it to produce ships up to 30,000 dtw which will allow it to sell more ships at both home and abroad.

In the current difficult economic climate, BD needs to be able to produce a wide variety and size of ships to be able to earn billions a year from this industry.

As much as I would like to agree with you, I think at the same time we have to be very realistically caution about indulging into such industries. Take the case of Doel laptop for instance. Although most members have expressed great hope and aspiration, in reality it was no match for the giants that exists. The ship building industry is quite similar, as Chinese govt provides huge grants and benefits to the local manufacturers, market penetration in the field would be much harder than small ships upto 15,000 dwt and already well established markets.At the same time, I would absolutely love to hang on to the hope that someday, we can make ships which more than 100,000 dwt.