Bangladesh Economic & Infrastructure Development - Updates & Discussions

[Bilal9]

MRT Dhaka Rail Depot

 

[Bilal9]

শুরু হয়ে গেছে এলেঙ্গা - বঙ্গবন্ধু সেতু ৪ লেন মহাসড়কের কাজ | Elenga - Tangail Highway Update

 

[Bilal9]

Sorry to interrupt, but how exactly is the annual demand for 400k motorcycles "unbelievable"? It's rather underwhelming.

Tractor demand is some ~8000 units per year which wouldn't even support CKD assembly.

There are countries where these numbers are good enough and moreover demand for everything in Bangladesh is increasing rapidly.

Five years ago, GDP per capita nominal of Bangladesh was half that of India, last year we exceeded India's number.

Your opinion is your opinion.

Unless you can back up your claims with concrete proof ( and open a separate thread to discuss) let's just cease and desist.

This is not a discussion thread.

 

[Bilal9]

I see that the title of the thread is literally "Bangladesh Economic & Infrastructure Development - Updates & Discussions".

I believe I am well entitled to disagree with your 'opinion'. The demand for motorcycles in Bangladesh has stagnated around ~400K, and that figure is 1/6th per capita of that country which you believe you have overtaken.

I heard that you have already lost any lead you had given your currency depreciation. Also, it seems that IMF is also asking some tough questions about your economy.

The data about motorcycles/ tractor sales is from your own media & government, which I believe is concrete enough for you.

You have good points and of course we can agree to disagree, but I will say that the motorcycle market in Bangladesh definitely isn't stagnated. Not by a long shot.

I don't know where you got your data, but the motorcycle market grew 30% in less than two years, just because the govt. reduced parts import tariffs by 5% (lowered from 25% to 20%). If this market was 'stagnated' then Honda, Yamaha, Suzuki, Bajaj, TVS and Hero would not be here and they (with other local players) would not be planning new capacity expansions and investments.

Motorcycle demand is going up due to a few reasons such as

• VAT exemption by the government for the local motorcycle manufacturers,
• lowered supplementary duty on imported parts and components and
• because of ride sharing apps, which encourages people to buy motorcycles to earn money.

Local parts suppliers also aren't very active and there is very large scope for investments and backward integration and cost reduction in that area alone with local parts substitution. Some say purchase cost differentials between Indian and Bangladeshi motorcycles are 35% or higher (roughly 50% by some estimates).

In other words, Bangladeshi local market is lucrative and has very high ongoing demand, The capacity to absorb new motorcycle investments exists because pent up demand need to be met. Especially when prices drop further and PPP GDP creeps upward, increasing local wages and buying power.

When prices drop below global or Indian standards because of backward integration with local parts suppliers, Bangladesh will take that export sector from India just like apparel was taken. Hero, Bajaj and TVS are already planning on this, they don't want to be left out. Assembly labor costs in Bangladesh is less than half that of India which makes eminent sense. Lots of room to grow and not 'stagnated'.

Here is something for you to chew on. Take a look at the referenced articles too.

Motorbike Industry in Bangladesh—The Next Big Frontier?

The rise of the motorbike industry in Bangladesh is due to initiatives such as tax benefits, import policies, and more.

www.lightcastlebd.com

 

[X-ray Papa]

I see that the title of the thread is literally "Bangladesh Economic & Infrastructure Development - Updates & Discussions".

I believe I am well entitled to disagree with your 'opinion'. The demand for motorcycles in Bangladesh has stagnated around ~400K, and that figure is 1/6th per capita of that country which you believe you have overtaken.

I heard that you have already lost any lead you had given your currency depreciation. Also, it seems that IMF is also asking some tough questions about your economy.

The data about motorcycles/ tractor sales is from your own media & government, which I believe is concrete enough for you.

Not you again, how about you stop creating multiple accounts after getting permanently banned

 

[Bilal9]

Not you again, how about you stop creating multiple accounts after getting permanently banned

Ei mokkel keda?

 

[damiendehorn2]

I see that the title of the thread is literally "Bangladesh Economic & Infrastructure Development - Updates & Discussions".

I believe I am well entitled to disagree with your 'opinion'. The demand for motorcycles in Bangladesh has stagnated around ~400K, and that figure is 1/6th per capita of that country which you believe you have overtaken.

I heard that you have already lost any lead you had given your currency depreciation. Also, it seems that IMF is also asking some tough questions about your economy.

The data about motorcycles/ tractor sales is from your own media & government, which I believe is concrete enough for you.

Thats what they said about the RMG industry too once, and now look how that grew. Instead of trying to denigrate Bangladesh, try to build your country.

 

[Bilal9]

Shipbuilding: a promising industry of Bangladesh​

Shipbuilding industry: domestic transportation of Bangladesh consists of roads, rails, and predominantly waterways as the country have 700 rivers and 19,467 sq km area in the Bay of Bengal. Around 22 major ports and 448 secondary waterway areas and about 0.7 million river vessels transport goods and passengers all year round.

An estimated 50 million passengers are moved through these waterways each year which encouraged local entrepreneurs to build marine vessels inside the country thus the shipbuilding industry emerged. Growing domestic demand combined with the prospect of exporting to other countries also motivated local companies to increase their capacity to produce large ocean-going vessels.

Shipbuilding is one of the growing industries which have created thousands of jobs and contributed to increasing the export earnings. Local shipbuilders are now able to build a diversified range of vessels which include multipurpose vessel, fast patrol boat, container vessel, tanker, dredging barge, ferry, passenger vessel, landing craft, tourist ship, tugboat, supply barge, deck loading barge, pleasure craft, crane boat, speed boat, deep-sea trawler, self-propelled barge, inspection vessel, cargo coaster, troops carrying vessel, double-decker passenger vessel, hydrographic survey boat, pilot boat, hospital ship, and water taxi.

Bangladesh made marine vessels are already exported to several countries in the EU, North America, Africa, Middle-east and Asia. According to industry insiders, Bangladesh has a great potential to emerge as a strong competitor in the small to medium size ocean going segment as global industry leaders China, South Korea and Japan are primarily focused on larger container ships and tankers.

Shipbuilding industry is heavily dependent – over 80% for export or ocean-bound vessels and 50-60 percent for inland waters – on imported materials and components such as generator, transformer, different parts of the engine, furniture etc. Steel pipe, plate, angle, paint, cable are usually sourced from the local market.

Work process of local shipbuilding companies

Photo source: Google

Who are the major players of the Shipbuilding industry?​

According to Ship Builders Association (BSA), around 100 shipbuilding companies with 120 registered shipyards of different size are operating in Bangladesh. Despite having hundreds of shipbuilding companies, only a few have the experience to produce export quality vessels.

Among them, Western Marine Shipyard is a prominent shipbuilder which employs 3,500 skilled and semi-skilled people. The company has already built more than 150 ships – container ships, tankers, deep-see fishing trawlers, bulk carriers, port utility vessels and passenger ships – and currently building around 50 ships at its 45 acres dockyard located in Chittagong port area.

High-Speed Shipbuilding & Engineering, one of the oldest names in the industry, has so far produced several watercraft with various specifications, sizes, and types. The company can build up to 1,200 deadweight tonnage (DWT) of ships and has already exported its vessels to Japan, USA and UK.

Major shipbuilding company of Bangladesh

Name of Company	Location of shipyard/ dock
Ananda Shipyards & Slipways Ltd.	Meghna Ghat, Narayanganj
Western Marine Shipyard Ltd	Kolagaon, Patiya, Chattogram
Khulna Shipyard Ltd.	Khulna
Narayanganj Engineering & Shipbuilding Ltd.	Nabigonj, Bandar, Narayanganj
Karnafuly Shipyard (PVT) Ltd.	Chattogram
Khan Brothers Shipbuilding Ltd.	Hosendi Bazar, Gazaria, Munshiganj
High Speed Shipbuilding & Engineering Company Ltd.	Chattogram
Meghna Shipbuilders & Dockyard Ltd.	Meghna Ghat, Narayanganj
Chittagong Dry Dock Ltd.	East Patenga, Chattogram
Bashundhara Steel & Engineering Ltd.	Katuail, Konda, Keraniganj
TK Shipyard Ltd.	Meghna Ghat, Munshiganj
Prime Ship Building Ltd.	Gazzaria, Munshiganj
Dockyard and Engineering Works Ltd.	Kadamrasul, Narayanganj

Source: Bangladesh Investment Development Authority (BIDA)

Export Market​

Bangladesh mainly exports small type of vessels which are below 12,000 DWT. During 2014-15, Bangladesh exported only US$ 19.89 million worth of ships, boats and floating structures. In the following year, export earnings increased by 39.48% to US$ 19.89 million however, during the 2016-2017 fiscal year, total export earnings reported being a record high in recent years.

Although a significant reduction in earnings occurred during the last financial year (ending July to June) due to inability to deliver vessels as it takes a few years to build a ship, fetching only US$ 4.73 million. The following figure shows year wise export of ships, boats and floating structures.

Year wise export of ships, boats and floating structures (value in million USD)

Source: Export Promotion Bureau of Bangladesh

During 2017-18 financial year, Bangladesh exported most of the ships, boats and floating structures to Kenya as 57.67% (US$ 17.32million) of the total revenue there.

India was the second largest importer responsible for one-third of the total exports. However, in the last fiscal year, Germany recorded to be the biggest destination contributing US$ 4.4 million or an impressive 93.15% of the total ship exports. Figure: 02 shows the country wise export of ships, boats and floating structures.

Country wise export of ships, boats and floating structures

Source: Export Promotion Bureau of Bangladesh
2017-2018

Country	Amount (USD)
Kenya	17,326,634.47
India	11,755,987.93
United Arab Emirates	859,586.93
Poland	28,656.76
Australia	24,892.00
Liberia	17,855.20
Netherlands	17,009.44
Korea	4,978.64
Hong Kong	1,690.67
Others	8,371.49

Source: Export Promotion Bureau of Bangladesh
2018-2019

Country	Amount (USD)
Germany	4,405,995.50
Taiwan	110,832.97
Netherlands	90,752.05
Turkey	13,273.66
Thailand	9,674.26
Franch	9,050.14
Italy	2,955.25
United States	233.72
Others	32,062.84

Source: Export Promotion Bureau of Bangladesh

Opportunity of the Industry​

The global shipbuilding industry is led by China, Korea, and Japan but currently, those countries are not making smaller vessels. That allows Bangladeshi shipbuilders to take advantage of the increasing demand for smaller ships in the international market.

The market size of the small ocean-faring vessels is estimated to be around US$ 400 billion and industry experts believe that Bangladeshi shipbuilders have the capacity to capture at least 1% of the total market bringing additional US$ 4 billion remittances per year.

Labor cost in Bangladesh remains comparatively lower other competing countries. An estimated 20-30 percent low labor cost offers competitive advantages as this industry is understood to be labor-intensive.

What are the Challenges of the Industry?​

High cost of capital is the major challenge for the shipbuilding companies as most of them have to pay a double-digit interest rate for getting funds from the banks. As a result, local builders struggle to raise funds to completed large orders from international clients.

If this sector does not receive financial aid from the government – in the form of access to funds with low-interest rates and long-term payment options – it will be difficult for this industry to compete in the global competitive market despite having cheap labor.

As industry insiders predict considerable growth – around 15-20% per year – for this flourishing industry, it’s the government who should step up with incentives and proper policy guidance so that this promising industry thrive in the long run.

Policymakers should also consider developing backward linkage industry which would be able to produce materials such as steel pipes, sanitary equipment, furniture, doors, windows, power generators, switchboards and transformers locally. This initiative will reduce dependence on imported materials while creating more employment opportunity.

Sector-specific Investment Incentive and Restriction​

Incentive:

Reduced tax rate on export income:5% for publicly-listed company and 10% for non-listed company
(SRO-132-AIN/ 2013)
5% import duties on raw materials used for building ship in local market
10% export subsidy on export of ships (FE Circular-31, August 2017)

Restriction:

No specific restriction exists upon the entry of foreign investors

 

[Bilal9]

Pharmaceutical industry is growing rapidly in Bangladesh​

Pharmaceutical industry at a glance
Pharmaceutical industry is one of the several sectors in our country for which we can be proud of. Before liberation, there was hardly any pharmaceutical manufacturer but several years after the independence things changed. The development of the pharmaceutical industry accelerated, especially with the introduction of the drug Control Ordinance-1982.

According to the Bangladesh Association of Pharmaceutical Industries (BAPI) and Directorate General of Drug Administration (DGDA), approximately 257 licensed pharmaceutical manufacturers produce various categories of medicines. These companies are fulfilling 98% of the country’s total medicine demand while exporting their products to 121 countries across the world.

Over the years, this industry has developed rapidly and local manufacturers enhanced their capability to produce drugs such as allopathic, homoeopathic, Unani and ayurvedic or herbal. Around 80% of the drugs produced by these pharmaceutical companies are predominantly generic drugs and 20% of them are patented drugs.

Currently, pharmaceutical industry has around 3,534 generics of allopathic medicine, 2,313 registered Homeopathic drugs, 5,771 registered Unani Drugs and 3,899 registered Ayurvedic drugs.

Registered Bangladeshi drugs

Source: Directorate General of Drug Administration
Domestic demand for pharmaceuticals has increased significantly from just BDT 102 billion in 2013 to around BDT 230 in 2019. The sector has achieved a compound annual growth rate (CAGR) of 13.90% during the last five years. Demand is mostly driven by the fact that Bangladesh has a population of 160 million people.

Industry insiders expect that domestic consumption would accelerate in the coming years. With an estimated15-20% year-on-year growth, the industry could be worth around BDT 400 billion to 500 billion by 2024.

Pharmaceutical industry size (in BDT billion) and Year on Year growth

Source: IQVIA & EBLSL
Major domestic players
Square Pharmaceuticals Ltd – a flagship concern of Square Group – is the leading manufacturers. With a local market share of 17%, it has been exporting antibiotics and other pharmaceuticals to 42 countries since 1987. The company reported having a turnover of BDT 50.87 billion during the 2018-19 FY with an annual growth of 10.85%.

Incepta Pharmaceuticals Ltd has earned a good reputation among the medical community with its range of products. Its products include tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, nasal sprays, eye drops and human vaccine, just to name a few.

The company also specialized in producing value-added high technology dosage forms like sustained-release tablets, quick mouth dissolving tablets, effervescent tablets, barrier coated delayed-release tablets, Insulin and Insulin analogue and biological products. Incepta currently exports its products to 68 countries in the world.

Major players of the pharmaceutical industry

Source: IQVIA & EBLSL
This industry has achieved much since the late 1980s, as it not only met the demand of local consumers but also exported pharmaceutical products to 121 countries in the fiscal year 2018-19. During this period, our manufacturers have exported pharmaceutical products worth USD 129.95 million. An astonishing 25.60% increase than that of USD 103.46 million in the 2017-18 fiscal year.

Export of Pharmaceuticals Product of Bangladesh and Y-on-Year Growth (USD Million)

Source: Export Promotion Bureau (EPB)
During the 2018-2019 fiscal year, almost half (48.59%) of the US$ 129.95 million export earnings of pharmaceutical products generated from five countries – Myanmar, Sri Lanka, USA, Philippines, and Kenya. Myanmar was the biggest buyer during the same period as 16.07% of total drug exports ending there.

Export Concentration of Pharma in 2018-19

Source: Export Promotion Bureau (EPB)
The government of Bangladesh has given huge emphasis on the export of pharmaceutical products from and acknowledged that this sector has a great potential to be the second most exporting goods after ready-made garments.

Export earnings of Major Players – in Million BDT

Source: Annual Report of respective companies & EBLSL report
Sources of raw materials
Local pharmaceutical manufacturers largely depend on imported raw materials as around 90 to 95 percent of the total needs for active pharmaceutical ingredients (APIs) is met through imports.

Local companies such as Square Pharma, Beximco Pharma, ActiveFine Chemicals, ACI Limited, Globe Pharma, Gonosastha Pharma, Opsonin Pharma, Drug International and Eskayef currently produce around 40 APIs.

ActiveFine Chemicals Ltd, a public listed company specialized in manufacturing APIs, and it does not produce any finished medicine. Ganashastha Pharmaceuticals Limited produces approximately 60% of the raw materials produced locally.

There are 2,805 valid sources of raw material from where pharmaceuticals manufacturers usually procure raw materials (source: DGDA) However, a substantial portion of the raw materials are sourced from India, China, Italy, and Germany.

Raw material Import vs Local Production (BDT mn)

Source: Bangladesh Statistical Yearbook 2018
What is the future of Bangladesh’s pharmaceutical industry?
The pharmaceuticals industry has enormous potential to expand in the future. The value of the global generic drug market was around USD 200 billion in 2015 and is expected to reach approximately USD 380 billion by 2021.

Bangladesh could become a major supplier of this highly demanding yet competitive industry as labour cost remains relatively low. Other major generic drugs producing hubs like India and China are losing low-cost advantages as the cost of labour to these countries have increased in recent years.

Labour cost in Bangladesh is three times lower than that of China and India which gives a competitive edge to local manufacturers and the price of our medicine is understood be among one of the lowest in the world. As a result, Bangladesh has more potential in the export market than its competitors.

In 2002, an agreement concerning Trade-Related Aspects of Intellectual Property (TRIPS) by WTO, was signed allowing Bangladesh, among other 49 least developed countries (LDCs), to export patent-free drugs to any country from 2006 to 2016.

This privilege was later extended and Bangladesh has been exempted from the obligations to implement patents and data protection for pharmaceutical products until January 2033. On top of this, more than thousands pharmaceutical products earned necessary registration for export which means a big jump in earnings is highly likely for the foreseeable future.

To facilitate further growth of this promising industry, the government of Bangladesh has already allocated 200 acres of land to establish an API industrial park in Munshiganj, some 37 km away from the capital, where APIs would be produced. What will happen then is the cost of APIs would be reduced thus enabling local manufacturers to produce their drugs at a lower cost.

One of the major challenges for the local pharmaceutical sector to emerge as a truly global player of the 380 billion US dollars markets, is its dependency on imported raw materials. If this issue is addressed then the country can save at least 70% of the total imports of raw materials.

Additionally, Bangladesh would be able to earn more by exporting APIs to other countries as the global APIs market is estimated to be around US$ 238 billion once the proposed park is constructed. Industry insiders urge the government to speed up the construction works so that local companies can produce APIs locally which will reduce the production cost significantly making their products’ price competitive in the world market.

 

[Bilal9]

@waz, @WebMaster bhais, thread about Bangladesh Development being hijacked by jealous Indian trolls. Your help is needed to clean up if possible. I cleaned up some of my own replies to this troll. Have to keep the thread clean and your help is appreciated.

 

[Bilal9]

Its a discussion thread? Reply with valid facts which something you aren't used to. Your behaviour resembles more like a troll who doesn't thinks twice before taking potshots on India on Indian threads but suddenly start crying when an Indian gives solid arguments related to the thread topic.

The discussion can be about "developing industry and economy in Bangladesh", not compare it to that of countries like India which is off topic.

We are not into schwanz measuring here.

Next time - post anything remotely about India here and it will be reported and cleaned up.

 

[Bilal9]

Light Engineering Industry: Situation, Progress and Prospects​

Current Situation

According to the Bangladesh Chamber of Industry (BCI) President Anwar-ul Alam Chowdhury Parvez, domestic demand for Light Engineering Products (LEPs) in Bangladesh is around $8.2 billion. Which is met by both local industries (40%) and through import (60%). Md Abdur Razzaque, President of Bangladesh Engineering Industry Owners Association (BEIOA) articulates that ten years ago, the local market size of the light engineering industry was only 2.4 billion dollars which is now worth around 3.12 billion dollars.

The light engineering industry currently contributing more than the foreign aid to GDP, which is around 2.2%. Among the domestic production, 7.5% (235.3 million) is substituting the imported products which are called import substitution (NVSL-calculation, 2020).

In 2020, Bangladesh Prime Minister Sheikh Hasina announced the LEPs as the ‘product of the year’ during the inauguration program of Dhaka Trade Fair-2020. Currently, 60,000 enterprises in Bangladesh working in this sector, employing approximately 1 million people.

Major hubs and their concentration
Despite starting from Dholaikhal and Jinjira area in Dhaka, the light engineering enterprises have spread in different parts of Bangladesh. After Dhaka division Chittagong, Narayangong, Bogra, Gazipur, Kishorganj area have also become as the major hub of different light engineering products. Different types of light engineering enterprises have emerged across the country.

Major Products OF Light Engineering Industry

Source: USAID report 2019

Domestic Users of LEPs

Export and Import Of Light Engineering Products

Yearly Export of LEP from Bangladesh (values in Million USD). Source: EPB, 2020

Sadly, Bangladesh is losing its export market share year on year. Due to several reasons, the export value of Bangladesh is facing a decreasing trend. From FY2018-19 to FY2019-20 export value decreased by 14.1% and in its previous year it decreases by 4.1%. This is a very alarming indicator of Bangladesh.

On one hand, the export earnings from LEPs are decreasing year by year and on the other hand import payment is increasing. In FY2018-19 Import payment for light engineering products has been increased by 5.15% wherein the previous fiscal year increased by 22.1%. All these figures are indicating our increasing dependency on foreign LEPs. Which is again not a favorable situation for Bangladesh.

Government Initiatives and Future Plan

Challenges and Drawbacks for the Industry
Despite having a huge potential, this sector’s performance is not up to the mark. It has been found that the domestic industry is not capable of providing the lion share of the domestic demand, export earnings are decreasing and import payments are increasing, no large foreign investments are coming in this sector. Although the government is taking necessary steps for the industry but they are not timely and sufficient for the industry.

According to market insiders, this industry is not getting enough attention, and it deserves more policy support. Despite having skills, in competing with low-priced Chinese products Bangladesh is far behind. With adequate support, this industry can contribute as much as the RMG industry is contributing to the economy.

 

[X-ray Papa]

Listen child, no one over here is interested in comparing with Bangladesh. Most Indians don't care if your country cease to exist tomorrow, and you are at the best a source of memes for us.

However Indians do like to give your kind a reality check when you make ridiculous claims- like when your "defense portal" claim BD can't be invaded as it has most ATGMs per sq. km. Or when you claim your automotive manufacturing to be more mature in comparison with India.

lol panjeet, you think you are a big f**k? The land of milk and honey

Nobody here gives a shit about your shithole, now piss off.

We seen what kind of military you have in front of China panjeet. Lol giving us a reality check, check yourself first, retard

 

[X-ray Papa]

We are the country that put you on the world map. The country where your kind works as maids & menial labourers.

So much for not giving a "shit about shithole", lol. Third rate rickshaw- pullers talking tough.

Sure keep dreaming of 1971 again lol,

Speaking about menial labour, your pathetic kind build the whole Dubai for 1 cent a day.

 

[Bilal9]

Shipbreaking in Bangladesh: a controversial but promising industry​

The journey of controversial ship breaking activities started before our independence, however, the commercial shipbreaking was introduced by Karnafully Metal Works Ltd in 1974. Since then Bangladesh has become one of the major shipbreaking destinations of the world.

Considerably cheap labour cost in conjunction with the possibility of maximum utilization of materials – especially steel – extracted from the recycled ships and weak regulations have driven the growth of shipbuilding industry. As a result, Bangladesh now leapfrogs India, Pakistan and Turkey in terms of dismantling recyclable vessels.

As of now, 147 shipbreaking and recycling yards which are mostly located in Sitakunda, an Upazila under Chattrogram district, have been set up by the local entrepreneurs. Only 65 yards are now thought to be operational despite receiving heavy criticism from the environmental community.
Starting a ship breaking business usually does not require much capital at the beginning as only a few equipment such as a large winch, some blowtorches and a bulldozer are needed – another reason why the number of yards has grown.

Shipbreaking yards in Sitakunda area, Chittagong

Global ship breaking activities​

During 2019, Bangladesh, India, and Turkey dismantled most of the world’s vessels that needed to be recycled. These three countries alone imported more than 80% – 543 out of 674 vessels – ships for breaking last year.

Types of ships which were recycled include general cargo ship, container ship, bulk carrier, anchor handling tug supply, container ship, chemical/products tanker, fishing vessel, cement carrier, drilling ship, LPG tanker, ore carrier, refrigerated cargo ship, vehicles carrier, passenger ship, and others.

Top five countries according to import of vessel in 2019

Source: NGO Ship breaking Platform
Top five countries according to LDT in 2019

Source: NGO Ship breaking Platform

Bangladesh is also a top importer of light displacement (LDT) ships as the country imported 58.08% of the total LDT worth USD 7.85 million in 2019.

Ship breaking activities in Bangladesh​

During 2019, Bangladesh imported 234 vessels – an increase of 10.38% more ships than that of 2018 – for dismantling. Of the total, 22.65% or 53 were container ships followed by 36 bulk carriers and 35 tankers. The number of ships imported during the last five years has always been more than 200 with a maximum of 250 vessels recorded in 2016.The following figures show the last five years import of vessels and LDT.

Year wise number of imported vessel

Source: NGO Ship breaking Platform


Year wise LDT in Bangladesh (in USD)

Source: Bangladesh Ship Breakers and Recyclers Association

Image: NewVision Solutions Limited

​

Major vessel importers​

According to Bangladesh Ship Breakers and Recyclers Association, in 2018, S N Corporation imported 16 vessels of the total 212. Other major importers include SNT Ship Recycling, Crystal Shippers Ltd, Premium Trade Corporation Ltd, Asian Marine Ship Yard, S.S. Green Ship Breaking & Recycling, K R Steel, Ferdous Steel Corporation, and S L Ship Recycling Industries, according to import data of 2018. The following figures show the major vessel and LDT importers in 2018.

Major vessel importer in 2018

Source: Bangladesh Ship Breakers and Recyclers Association

Types of materials obtained from ship dismantling​

A large amount of ship scraps, one of the key raw materials to produce steel billets, is sourced from the local shipbreaking companies. Each year around 700,000 metric tons of scrap is obtained from the shipbreaking yards which are used in the local steel re-rolling mills.

This steel scrap is re-melted in the induction or electric arc furnaces to turn into ingots or billets which are then used to produce rebars, rods and light structurals such as angel, beam and channel.

A range of other variety of recyclable materials and products are also recovered from the ships including furniture, appliances, machinery, pipes, electric motors generators, hydraulic equipment, diesel engines, and others. Besides steel mills, light engineering and shipbuilding industry also largely depend on the ship breaking industry for their raw materials.

Major LDT importer in 2018

Source: Bangladesh Ship Breakers and Recyclers Association

Labour engaged in the ship breaking industry​

According to the Bangladesh Institute of Labour Studies, around 32,000 to 35,000 workers are involved in ship recycling activities. Of the total employees, only 10% of them work permanently whereas the rest of them work on a temporary or part-time basis – a significant number of child labours also allegedly work in this industry.

Shipbreaking is among the most hazardous jobs in the world accounting high rate of injuries while killing 26 throughout the world last year.

Despite being labelled as a top hazardous job and criticized for its environmental impacts, this industry has been playing an important role in the national economy. Apart from steel, heavy and light engineering industries have also been benefited by using materials from ship recycling.

To offset such environmental damage while keeping this industry, local shipbreaking companies should consider only bringing green vessels – certified to have no residue which is hazardous to health.

PHP Family, one of the largest conglomerates of Bangladesh, is the only company ever to purchase a certified green vessel called Ore Victoria from Brazil in 2018. PHP is also the only Bangladeshi company to achieve a green certificate for its yard from the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.

With this certificate, shipbreaking companies would be able to buy vessels at a discounted price essentially reducing their operational cost. Bangladeshi shipbreaking companies should follow PHP if they are to remain in the business in the long run. Otherwise, it would be difficult to continue in the coming years as there will be more pressure from the environmental activists and strict government policies which may only allow the green yards to operate.