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Bangladesh Economic & Infrastructure Development - Updates & Discussions

New terminal to be constructed at Sylhet airport.

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Air Vice Marshal M Mafidur Rahman, Chairman of CAAB and Harold Huang, Country Chief of BUCG are seen exchanging documents at the signing ceremony held today

Dhaka: The Civil Aviation Authority of Bangladesh (CAAB) signed an agreement with the Chinese company Beijing Urban Construction Group (BUGC) today for constructing a new terminal building at Osmani International Airport in Sylhet.

Air Vice Marshal M Mafidur Rahman, Chairman of CAAB and Harold Huang, Country Chief of BUCG signed the deal on behalf of their respective organisations.

"This project is a visionary and important initiative taken by the government. After completion, it will play a pivotal role in the socio-economic development of the country," said Rahman.

The BDT 2,116 crore project includes construction of a terminal building, cargo building, ATC tower, taxiway, apron and fire station. The project is estimated to take two years and nine months for completion.

With the construction of the new terminal, the airport's capacity to handle passengers will reach 20 lac from the current 6 lac.

Over the years, BUGC has shown great expertise in building several international airports across the world including Beijing, mentioned Huang.

Other higher officials of CAAB and BUCB were also present on the signing ceremony.
 
HSIA Terminal 3 construction is at a standstill due to COVID-19
 
12:04 PM, July 03, 2020 / LAST MODIFIED: 12:24 PM, July 03, 2020
Biman to start Dhaka-Toronto direct flight from October
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UNB, Dhaka

Biman Bangladesh Airlines is all set to start operating direct flights from Dhaka to Toronto and from there to New York by Air Canada from October this year.

"We'll start operating flights in the winter schedule according to the Air Agreement between Bangladesh and Canada," Mokabbir Hossain, managing director and CEO of Biman, told UNB.

There are two schedules in international routes - Winter and Summer, he said adding that the winter schedule starts in October.

If passengers want to go to New York from Bangladesh, they can go from Toronto, said Hossain adding, "In that case, we'll charge the passengers for a second destination to New York."

According to an agreement with Air Canada, they will take Biman passengers to any destination from Toronto. "Biman will carry passengers from Dhaka to Toronto only," Hossian said.


Asked about the number of flights in a week on Dhaka-Toronto route, Biman's MD said according to the Air Agreement, minimum three flights will be operated.

Flights to Japan soon
Biman will operate flights to Japan soon as there is an existing agreement between Bangladesh and Japan in this regard, Hossain said.

Flights to Tokyo will start when Japan opens the international route, he said. "We've already published advertisements in Japanese newspapers for appointing General Sales Agent (GSA) there. GSAs will be appointed soon."

Once flights start operating from Dhaka to Japan, passengers can go to New Zealand, Australia, Korea and other countries from there by other airlines easily, he hoped.

"We're planning to make an agreement with Japan Airlines for carrying Bangladeshi passengers to other countries from Tokyo," he added.

Biman all set to resume flights
Asked about the exact date of flight inauguration on Dhaka-Toronto route, Civil Aviation and Tourism Ministry Senior Secretary Mohibul Haque said flight operation will begin after October 15.

Biman CEO Hossain said flight operations on Dhaka to Delhi, and Kolkata were stopped due to Covid-19 pandemic, but Biman flights from Dhaka to Chennai will be launched if India permits use.

GSA will be appointed in Chennai soon, he added.

In addition, steps will be taken to start flight operations from Dhaka to Guangzhou in China and Male in the Maldives after the coronavirus pandemic, said Hossain.

He also informed that Biman is all set to resume its flight operations on other international routes where it operated flights before Covid-19 pandemic.

Meanwhile, chartered flights with different countries including European nations are already in operation.

Biman Bangladesh Airlines stopped flight operation on March 30 thanks to Covid-19 pandemic and resumed on Dhaka-London-Dhaka route on June 21.

Two more scheduled flights will start operation on Dubai and Abu Dhabi routes July 6 and 7 respectively after three months of suspension.
 
Biman plans introducing flights to Canada (Toronto) by October
This will bring down travelling hours for US-Dhaka passengers to 17 hours via Manchester

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File Photo: Salahuddin Ahmed/TBS

Biman Bangladesh Airlines plans to operate flights to Canada for bolstering connectivity between the East and the West.

The national carrier signed an agreement with the Bangladeshi government in this regard on Wednesday, confirmed its Managing Director Md Mokabbir Hossain.

Biman has started the process of applying to the Canadian authorities to secure permission for flight operations. Back in 2013, the Bangladeshi government signed an air agreement with Canada, but no local airlines have started operating in the country yet.

The national carrier is planning to start operating from October this year, said Mokabbir.

If Biman starts flights to Canada, travelling hours for US-Dhaka passengers will come down to 17 hours from the current 23 to 24 hours, he said.

Biman will also introduce its flights in Tokyo, Japan soon. The two destinations will make Dhaka a hub for East-West connectivity by connecting flights with other foreign airlines, he added.

Biman was supposed to introduce flights from Dhaka to Guangzhou, China by May, but the coronavirus pandemic has delayed the permission process from the Chinese Embassy in Bangladesh.

Biman has six brand new Dreamliner aircraft for long haul flights.
 
Biman to buy two more Dash-8 aircraft to serve regional and domestic routes


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Biman Bangladesh Airlines will purchase two more Dash-8 aircraft from De Havilland of Canada aiming to expand its flights on domestic routes.

The national carrier finalised its decision on March 2.

Dash-8 is a small-haul aircraft that can carry 50 to 80 passengers.

The purchase deal has already been finalised with the manufacturer – one aircraft will be delivered next year and the other in 2022, said Biman's Managing Director Md Mokabbir Hossain.

Currently, Biman has two Dash-8 aircraft taken on lease. The airline will return one of them in June this year.

The public limited company has already purchased three new Dash-8 aircraft from Bombardier and they will join the fleet in June this year.

The inclusion of three new aircraft will take the total number of Dash-8 in the Biman fleet to four.

The number of Dash-8 aircraft will be six by 2022 after the arrival of two new aircraft that Biman is going to purchase from De Havilland.

Currently, Biman is operating long-haul aircraft on domestic routes due to shortage of short-haul planes, said Mokabbir Hossain. "As a result, the airline is incurring losses on domestic routes."

He said after the inclusion of the new Dash-8 aircraft, it will stop using Boeing 737 planes on domestic routes aiming to come out of losses.

Moreover, Biman plans to increase inter-connectivity on domestic routes to cater to a growing number of passengers.

Currently, Dhaka is the hub for flying to other districts of the country. Biman is planning to introduce flights from Jashore to Chattogram to Cox's Bazar. As a result, passengers will not need to travel via Dhaka.

Biman will also use Dash-8 aircraft on some international routes like Chattogram to Bangkok.

Biman's fleet has increased manifolds over the years, and the current fleet size is the largest in its history. It has 18 aircraft – 12 are of its own and the rest are on lease.

Another three Dash-8 aircraft will arrive by June this year, taking the total fleet size to 20.

https://tbsnews.net/economy/aviation/biman-buy-two-more-dash-8-aircraft-53449
 
Ship Recycling Industry Showing High Prospects
Due to lower labor costs and a high proportion of usage of steel from recycled ships in domestic manufacturing, the ship scrapping segment of the maritime supply chain is dominated by the developing countries. By dismantling 236 ships in 2019, the country took the lead position in ship-breaking. 47.2 percent of the ocean-going vessels were dismantled by Bangladesh, followed by India with 25.6 percent, Pakistan with 21.5 percent, Turkey with 2.3 percent and China with 2 percent.[1]

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FIGURE: Dismantling of ships in 2019, by country / Source: UNCTAD
The following figure for the period 2014–2018 suggests that China and India, and to a relatively lower extent, Turkey, illustrate a reduction in scrapping activity while Bangladesh displays a steeply rising trend. China and India have limited the number of imports of scrapped vessels due to environmental concerns.

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FIGURE: Reported tonnage sold for demolition, selected countries, 2014–2018 / Source: Clarkson Research
The trends are influenced by such regulatory advances and voluntary initiatives by industry associations to make ship recycling more environment-friendly which have put Bangladesh in a favorable position.

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FIGURE: Reported tonnage sold for demolition by major vessel type / Source: Clarkson Research
Oil tankers, bulk carriers and container ships are related to most of the tonnage sold for demolition. While previously bulk carriers were the most frequent vessel type sold for demolition, the type was replaced by oil tankers in 2018. Bangladesh was reported to sell 5,980,000 gross tons of oil tankers and 1,115,000 gross tons of bulk carriers.[1]
 
COVID-19 Implications on Shipbreaking and Shipbuilding
The adverse impact of COVID-19 on shipbreaking industry in Bangladesh steered spillover effects on associated industries including shipbuilding and steel. Owing to lockdowns imposed in March 2020, the shipbuilding industry has faced order cancellation issues, paralleled with the readymade garments sector. According to the Association of Export Oriented Shipbuilding Industries of Bangladesh (AEOSIB), the exporting companies have witnessed cancellation of export orders worth USD 120 million.[3]

Global shipbuilding giants were not immunized from the dire impact of COVID-19 as well. Chinese yards and South Korean yards have seen plunging orders, 50 percent and 81 percent of falls respectively. The number of orders is predicted to decline by 26 percent throughout the year.[4] In tune with the global scenario, FMC Dockyard, a shipbuilding company encountered postponement of 52 sale orders with 12 for exports.[3]

Meanwhile, the ship-breaker companies employing 0.2 million people could not supply scraps, the vital raw materials for steel, to the steel mills. In April 2020, the industry insiders had demanded BDT 3000 crore cash incentive with 2 percent interest for keeping the shipyards functional.[5] However, given the economy gradually reopening, both the shipbuilding and shipbreaking industry are expected to resume their operations and recover from the crisis in the near future.

Policy Development: Key to Building a Sustainable Shipbuilding Industry
As the evolving shipbuilding industry had attracted a strong focus from the government, a draft of the Shipbuilding Industry Development Policy 2019 was prepared by the Ministry of Industries. Being provided with necessary fiscal support, the industry is projected to earn USD 4 billion over the next five years by exploring its export potential.[6] Moreover, the policies are designed with high hopes of generating employment for 0.1 million people.

The policy suggested forming a national council of 24-members to supervise implementation, monitoring and evaluation of shipbuilding. Public-private partnerships for building futuristic shipyards, guidelines of backward linkage industry and lowering the bank interest rate to 4 percent with repayment period of 20 years are also proposed in the policies.[6] The government should fine-tune the policy as early as possible and enact the regulations for the quicker development of the industry.

In January 2020, the Ministry of Industry signed a memorandum of understanding (MoU) with two foreign companies, Damen Group of the Netherlands and Gentium Solutions of Australia to collaboratively establish a shipbuilding and ship recycling industry in Bangladesh. The state-of-the-art shipbuilding yard along with a backward linkage industry is about to be built on 105 acres of land at Patuakhali with an investment of USD 1 billion.[7] If the Shipbuilding Development Policy 2019 can maintain international standards of compliance, more foreign investments can be attracted.

Quality control along with human and environmental safety issues are also rising concerns in the shipbuilding nations. High quality professionals are needed to ensure quality of the ships for which exclusive training programs should be arranged by the government. In January 2020, the PHP Ship Breaking & Recycling Industries Limited was certified by ClassNK, verifying that the yard is in line with Hong Kong Convention for safe and environmentally friendly recycling of ships.[8] The shipbuilding policy should be inclusive of environmental compliance for greener and safer ship recycling practices.

Bangladesh currently builds smaller vessels of 10,000 DWT (dead weight tonnage).[6] To increase the capacity of building larger vessels in the future, alongside foreign investment and public sector assistance, major infrastructural changes and a highly skilled workforce are imperative. To conclude, finalizing the policy and translating it into reality should be prioritized to establish a sustainable shipbuilding and ship repairing industry in the country.
 
Story on Indian auto market vs. nascent Bangladeshi market and needed steps. Sorry Bengali only.


Indian imported heavy vehicles dominate Bangladeshi market but that is changing with local production. Bengali only.

 
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