Bangladesh Orders Four Ships from China in Fleet Expansion Effort

[PoondolotoPandalum]

Bangladesh's current scientific and technological investment and scientific research capabilities are currently inferior to those of Vietnam. If Vietnam has a chance, so does Bangladesh

If you're expecting a serious discussion about Bangladesh's industrial capability, you won't find it in this corner of the internet. Our residential experts have no experience in the industry. They know how to read headlines. Only uneducated people are impressed by such headlines.

Then again, the editor of such newspapers knows their target audience. Bangladesh has amongst the lowest per capita technically qualified people in the region. You'll see grown-*** adults who cannot grasp basic statistics.

Frankly speaking, the Bangladeshi shipbuilding industry, which saw a lot of hype from the late 2000s, did not live up to the hype. People who work in those industries will tell you that.

Bangladesh is an ideal shipbuilding country. Shipbuilding made Bengal amongst the richest regions on earth (along with agriculture and textiles) in pre-modern times. BD has 9000 sq km of territorial waters, 720km of coastlines, 700 rivers that come down from surrounding countries, and 24,000km of inland waterways. Yet sadly, this potential has not been realized for multiple reasons.

Bangladesh has over 50 actual shipyards (the tbs statistics are wrong, collected by some who doesn't have a clue as usual), plus 100 shipbuilders +contractors, and marine workshops. Most of them can manufacture basic cargo vessels of 3500 DWT. Only 11 shipyards (Ananda, Western Marine, Khula Shipyard, Karnafuly Skipways Pvt, etc) are capable of making ships up to 10,000dwt, of international standards (regularly audited by international bodies).

Only 21% of BD shipyards are capable of producing ships of international standards. All within the small category (10,000dwt).

Global trends in shipbuilding are a move to Asia. The UK was a leader in postwar shipbuilding, later replaced by Japan (60s) and South Korea (80s), and now China who took the lead. Asians own 70-80% of the shipbuilding market world wide.

Other emerging countries are Vietnam and India. The emergence of Vietnam is a result of large investments from EU countries, who relocated their shipyards to VN. I

India, unlike Bangladesh, is a rising giant in shipbuilding as they have very strong governmental support for private entrepreneurs to open and run modern, internationally standard shipyards. Bangladesh has no such things. India also has many more mother industries that can support its shipbuilding. Bangladesh does not. India has far better marine engineering/technology universities and vocational training. Bangladesh cannot design or develop anything more sophisticated than a rubber bath toy.

The only competitive factor Bangladesh has to offer are low labor costs and overheads. The average hourly wage in BD shipyards are $0.5 USD, compared to $1.0 in India, $12 in Japan. But the additional financial cost of ship manufacturing in BD is up to 20% higher than competing countries like India and Vietnam. Because BD shipyards are much more dependent on foreign imports, because of technological/industrial immaturity. India has only 10% financing costs. In Bangladesh, it's more like 31% on financing alone (bank interest 6%, Bank guarantee 8%, L/C commission 4-8% + other charges 1%). And it's worth noting bribing and corruption are the norms in Bangladesh.

If one compares productivity (weighted), then Bangladesh also comes in last place:

Bangladesh: 1.0
India: 1.2
China: 1.4
Korea: 3
Singapore: 2
Germany: 5

Bluesky is right when he claims Bangladesh as industrially backward, and he has a point. Ask any serious industrialists in Bangladesh outside of RMG, they'll tell you Bangladesh always had and still has an anti-industrial mentality. It results in the non-penetration of international business and shipbuilding in particular.

Certain experts in PDF will tell you it's a good thing (FDI=bad), that's the caliber of people we have in PDF. But Bangladesh lacks R&D, which fails to bring about any innovation or technological development for price competitiveness in the international market. BD also lacks any modern testing facilities marine architecture & engineering.

Bangladesh is not a country where Robots replace human jobs. It's a country where humans replace robots. Bangladeshi shipyards are the least automated, and least productive on earth. At the same time, there's a lack of local expertise in machine operations in most shipyards. They maintain very poor training facilities and the technical acumen of their senior engineers is very low. Far lower than in India and Vietnam.

Bangladesh does not produce inert gas. This limits the production of Aluminium vessels, as Aluminum welding requires inert gas like Argon, which is quite expensive. It relies on imports which are very expensive, and not sufficient. It enables certain corrupt individuals to make a huge buck, at the cost of industrialization. And these individuals have political connections. Is it any surprise Bangladesh lacks any concrete policy for rapid industrialization?

Other problems include:

Health & safety

80% of raw materials come from import resulting in higher unit prices, and price volatility

Most shipbuilding nations, India and Vietnam included having close links between Shipbuilding and Support industries for reducing delivery times. Bangladesh has no support industry for maritime equipment and far limited infrastructure.

Poor management

Many many more...

Overall, the level of Bangladesh's shipbuilding and ship design capability is similar to that of a marine engineering/architecture undergraduate student. They know the very basics of how to make a steel hull float, and that's about it. Its productivity is the lowest in the world. The industry is crying for government support, but it's not receiving much. It lacks vocational schools to train a significant % of the population In the light and heavy engineering sectors.

If Bengalis want to see improvements in this sector, they have to correctly identify the problems first.

 

[bluesky]

Indeed, BD shall build modern tubofan engine, space rocket, world class computer chips capacity overnight. mega shipyard and just take 24hrs to be superpower.

No, BD cannot build all those technology stuffs. But, I regret more that private companies are not being encouraged build their that will produce all those stuffs in the long run,

A company needs similar but smaller manufacturing jobs to build up their experience and capacity gradually and step by step.

However, mechanical, electrical manufacturing is not nurtured and the country imports every tiny mechanical goods.

Our leaders lack vision.

 

[mb444]

If you're expecting a serious discussion about Bangladesh's industrial capability, you won't find it in this corner of the internet. Our residential experts have no experience in the industry. They know how to read headlines. Only uneducated people are impressed by such headlines.

Then again, the editor of such newspapers knows their target audience. Bangladesh has amongst the lowest per capita technically qualified people in the region. You'll see grown-*** adults who cannot grasp basic statistics.

Frankly speaking, the Bangladeshi shipbuilding industry, which saw a lot of hype from the late 2000s, did not live up to the hype. People who work in those industries will tell you that.

Bangladesh is an ideal shipbuilding country. Shipbuilding made Bengal amongst the richest regions on earth (along with agriculture and textiles) in pre-modern times. BD has 9000 sq km of territorial waters, 720km of coastlines, 700 rivers that come down from surrounding countries, and 24,000km of inland waterways. Yet sadly, this potential has not been realized for multiple reasons.

Bangladesh has over 50 actual shipyards (the tbs statistics are wrong, collected by some who doesn't have a clue as usual), plus 100 shipbuilders +contractors, and marine workshops. Most of them can manufacture basic cargo vessels of 3500 DWT. Only 11 shipyards (Ananda, Western Marine, Khula Shipyard, Karnafuly Skipways Pvt, etc) are capable of making ships up to 10,000dwt, of international standards (regularly audited by international bodies).

Only 21% of BD shipyards are capable of producing ships of international standards. All within the small category (10,000dwt).

Global trends in shipbuilding are a move to Asia. The UK was a leader in postwar shipbuilding, later replaced by Japan (60s) and South Korea (80s), and now China who took the lead. Asians own 70-80% of the shipbuilding market world wide.

Other emerging countries are Vietnam and India. The emergence of Vietnam is a result of large investments from EU countries, who relocated their shipyards to VN. I

India, unlike Bangladesh, is a rising giant in shipbuilding as they have very strong governmental support for private entrepreneurs to open and run modern, internationally standard shipyards. Bangladesh has no such things. India also has many more mother industries that can support its shipbuilding. Bangladesh does not. India has far better marine engineering/technology universities and vocational training. Bangladesh cannot design or develop anything more sophisticated than a rubber bath toy.

The only competitive factor Bangladesh has to offer are low labor costs and overheads. The average hourly wage in BD shipyards are $0.5 USD, compared to $1.0 in India, $12 in Japan. But the additional financial cost of ship manufacturing in BD is up to 20% higher than competing countries like India and Vietnam. Because BD shipyards are much more dependent on foreign imports, because of technological/industrial immaturity. India has only 10% financing costs. In Bangladesh, it's more like 31% on financing alone (bank interest 6%, Bank guarantee 8%, L/C commission 4-8% + other charges 1%). And it's worth noting bribing and corruption are the norms in Bangladesh.

If one compares productivity (weighted), then Bangladesh also comes in last place:

Bangladesh: 1.0
India: 1.2
China: 1.4
Korea: 3
Singapore: 2
Germany: 5

Bluesky is right when he claims Bangladesh as industrially backward, and he has a point. Ask any serious industrialists in Bangladesh outside of RMG, they'll tell you Bangladesh always had and still has an anti-industrial mentality. It results in the non-penetration of international business and shipbuilding in particular.

Certain experts in PDF will tell you it's a good thing (FDI=bad), that's the caliber of people we have in PDF. But Bangladesh lacks R&D, which fails to bring about any innovation or technological development for price competitiveness in the international market. BD also lacks any modern testing facilities marine architecture & engineering.

Bangladesh is not a country where Robots replace human jobs. It's a country where humans replace robots. Bangladeshi shipyards are the least automated, and least productive on earth. At the same time, there's a lack of local expertise in machine operations in most shipyards. They maintain very poor training facilities and the technical acumen of their senior engineers is very low. Far lower than in India and Vietnam.

Bangladesh does not produce inert gas. This limits the production of Aluminium vessels, as Aluminum welding requires inert gas like Argon, which is quite expensive. It relies on imports which are very expensive, and not sufficient. It enables certain corrupt individuals to make a huge buck, at the cost of industrialization. And these individuals have political connections. Is it any surprise Bangladesh lacks any concrete policy for rapid industrialization?

Other problems include:

Health & safety

80% of raw materials come from import resulting in higher unit prices, and price volatility

Most shipbuilding nations, India and Vietnam included having close links between Shipbuilding and Support industries for reducing delivery times. Bangladesh has no support industry for maritime equipment and far limited infrastructure.

Poor management

Many many more...

Overall, the level of Bangladesh's shipbuilding and ship design capability is similar to that of a marine engineering/architecture undergraduate student. They know the very basics of how to make a steel hull float, and that's about it. Its productivity is the lowest in the world. The industry is crying for government support, but it's not receiving much. It lacks vocational schools to train a significant % of the population In the light and heavy engineering sectors.

If Bengalis want to see improvements in this sector, they have to correctly identify the problems first.

Very good write up, agree with every point. It is a very capital intensive industry and quite simply this capital does not exist in the sector. It is growing on the basis of internal demand and we for internal purposes do not need high DWT crafts.

It was an export thrust sector but lacked true backing by government and the banks. It is time to change that.

 

[Beast]

No, BD cannot build all those technology stuffs. But, I regret more that private companies are not being encouraged build their that will produce all those stuffs in the long run,

A company needs similar but smaller manufacturing jobs to build up their experience and capacity gradually and step by step.

However, mechanical, electrical manufacturing is not nurtured and the country imports every tiny mechanical goods.

Our leaders lack vision.

And you think those big merchant ships are easy to build and BD will able to build it at competitive price or expect BD enterprise to bite the bullet and paid more compare to Chinese build merchant fleet? Its is typical of you this type of nationalistic people who think manufacturing engineering is easy and any obstacle is solely due to incompetent or greedy traitor as road block.

 

[UKBengali]

Certain experts in PDF will tell you it's a good thing (FDI=bad), that's the caliber of people we have in PDF. But Bangladesh lacks R&D, which fails to bring about any innovation or technological development for price competitiveness in the international market. BD also lacks any modern testing facilities marine architecture & engineering.

Dude, maybe you are referring to people such as myself who have mentioned that high-FDI kills economic growth as seen from multiple examples.?


You seem confused as you seem to think that people that are against FDI are also against domestic industrial support by definition.

You have spent a whole lot of time writing an academic post that has no relation to the complexities of the international geopolitical environment and economy.

Since you seem to know so much, why is India projected to grow slower than BD up to 2037?

Please tell us from your "expert" knowledge as BD will just increase it's per capita lead over India over time. Do all these economic forecasters know less than you?


Anyway, seems you are frustrated that nothing you say actually gets implemented in BD and so spend time whining on this forum as it will make zero difference.

 

[PoondolotoPandalum]

Dude, maybe you are referring to people such as myself who have mentioned that high-FDI kills economic growth as seen from multiple examples.?


You seem confused as you seem to think that people that are against FDI are also against domestic industrial support by definition.

You have spent a whole lot of time writing an academic post that has no relation to the complexities of the international geopolitical environment and economy.

Since you seem to know so much, why is India projected to grow slower than BD up to 2037?

Please tell us from your "expert" knowledge as BD will just increase it's per capita lead over India over time. Do all these economic forecasters know less than you?


Anyway, seems you are frustrated that nothing you say actually gets implemented in BD and so spend time whining on this forum as it will make zero difference.

To be honest, dude, as many folks already figured out, your A-level politics student level of contribution aren't really worth replying to. I reply to people who know what they're talking about. But since you felt obliged to reply to me, I thought I'd return the favor.

Neither do I spend every day on this forum as you clearly do. I don't know what you do for a living or how you have so much time on your hands. But I'd wager you don't work in heavy or light engineering industry. It's very evident in every single one of your comments regarding industrial development. Plucking headlones

"You have spent a whole lot of time writing an academic post that has no relation to the complexities of the international geopolitical environment and economy"

At the same time, you present this in a discussion about Bangladeshi shipbuilding.

"Please tell us from your "expert" knowledge as BD will just increase its per capita lead over India over time. Do all these economic forecasters know less than you?"
"Since you seem to know so much, why is India projected to grow slower than BD up to 2037?"

This is a clear giveaway of your capacity to contribute anything meaningful to this particular topic.

Who brings up GDP per capita comparisons in a conversation about shipbuilding? What do you know about Bangladeshi shipbuilding? This is a common trend with you, isn't it? You're the sort of person that sees two points in a graph, draws a line through it, and calls it a trend.

For the record, I neither dispute nor endorse the macroeconomic indicators of Bangladesh. It's not my area of expertise. I comment on subjects I know about. Others can judge based on the merit of my posts whether I know what I'm talking about or not.

I suppose anything more detailed than tabloid newspapers is too academic for you? Because that's the standard you're used to. Others can decide for themselves whether they find my post useful or not.

"Anyway, seems you are frustrated that nothing you say actually gets implemented in BD and so spend time whining on this forum as it will make zero difference."

Not frustrated enough to make a full-time career on this forum? People who make comments like that have no first or even second-hand experience

We're talking about the Shipbuilding industry. If you don't have anything to add, please add it. Otherwise, go back to comparing GDP per capita figures and IMF projections with other South Asians like a bunch of amateurs

Very good write up, agree with every point. It is a very capital intensive industry and quite simply this capital does not exist in the sector. It is growing on the basis of internal demand and we for internal purposes do not need high DWT crafts.

It was an export thrust sector but lacked true backing by the government and the banks. It is time to change that.

The biggest shipyards (Khulna, Chittagong dry docks, etc), want to expand to 50,000dwt capacity, but lack government support. I would primarily blame the lack of a solid industrialization policy by successive Bangladeshi governments. Shipbuilding firms have their issues as well, but they can only go so far based on the industrial, political, infrastructural, and human resources realities of a place like Bangladesh. In the most parts, they do the best they can.

If you look at the growth of Bangladeshi shipyards individually, it may seem impressive. But that's only because it had such a LOW base, to begin with. When you start with hardly anything, the growth rate will be high. But if you compare the growth of the global market fraction between Bangladeshi shipyards with their pier competitors (say India and Vietnam), the numbers it doesn't appear very impressive.

 

[UKBengali]

To be honest, dude, as many folks already figured out, your A-level politics student level of contribution aren't really worth replying to. I reply to people who know what they're talking about. But since you felt obliged to reply to me, I thought I'd return the favor.

Neither do I spend every day on this forum as you clearly do. I don't know what you do for a living or how you have so much time on your hands. But I'd wager you don't work in heavy or light engineering industry. It's very evident in every single one of your comments regarding industrial development. Plucking headlones

"You have spent a whole lot of time writing an academic post that has no relation to the complexities of the international geopolitical environment and economy"

At the same time, you present this in a discussion about Bangladeshi shipbuilding.

"Please tell us from your "expert" knowledge as BD will just increase its per capita lead over India over time. Do all these economic forecasters know less than you?"
"Since you seem to know so much, why is India projected to grow slower than BD up to 2037?"

This is a clear giveaway of your capacity to contribute anything meaningful to this particular topic.

Who brings up GDP per capita comparisons in a conversation about shipbuilding? What do you know about Bangladeshi shipbuilding? This is a common trend with you, isn't it? You're the sort of person that sees two points in a graph, draws a line through it, and calls it a trend.

For the record, I neither dispute nor endorse the macroeconomic indicators of Bangladesh. It's not my area of expertise. I comment on subjects I know about. Others can judge based on the merit of my posts whether I know what I'm talking about or not.

I suppose anything more detailed than tabloid newspapers is too academic for you? Because that's the standard you're used to. Others can decide for themselves whether they find my post useful or not.

"Anyway, seems you are frustrated that nothing you say actually gets implemented in BD and so spend time whining on this forum as it will make zero difference."

Not frustrated enough to make a full-time career on this forum? People who make comments like that have no first or even second-hand experience

We're talking about the Shipbuilding industry. If you don't have anything to add, please add it. Otherwise, go back to comparing GDP per capita figures and IMF projections with other South Asians like a bunch of amateurs

The problem is that you thought it smart to subtly attack others in an ad-hominem way.

I cannot recall ever engaging in you as your posts are infrequent and frankly too long to bother reading.

Anyway have you gotten over your heartbreak as regards that girl yet? I found it pathetic that you bared your soul on a forum like this. Maybe that was harsh but you deserved it.

PS - Dude it only takes a few minutes to write each one of my posts, unlike yours that probably take an hour or more, and so plenty of time to do other things during my day.

 

[PoondolotoPandalum]

The problem is that you thought it smart to subtly attack others in an ad-hominem way.

I cannot recall ever engaging in you as your posts are infrequent and frankly too long to bother reading.

Anyway have you gotten over your heartbreak as regards that girl yet? I found it pathetic that you bared your soul on a forum like this. Maybe that was harsh but you deserved it.

PS - Dude it only takes a few minutes to write each one of my posts, unlike yours that probably take an hour or more, and so plenty of time to do other things during my day.

Thought so.

No useful contribution to add but to through sh*t. It's what your Gushti are only capable of. Low breed of shit throwers

It's easier for me to write "academic" articles than it is for you to fully grasp the news articles you even provide as evidence.

This is why posting in a Pakistani forum is the only thing you'll ever achieve in your life. Because no one else listens to you. The regulars here got fed up with you. And they're far more patient than me .

Stick to running your curryhouses. Your breed don't have experience running large industrial enterprises

 

[UKBengali]

Thought so.

No useful contribution to add but to through sh*t. It's what you're Gushti are only capable of. Low breed of shit throwers

It's easier for me to write "academic" articles than it is for you to fully grasp the news articles you even provide as evidence.

This is why posting in a Pakistani forum is the obly thing you'll ever achieve in your life. Because no one else listens to you. The regulars here got fed up with you

Stick to running your curryhouses and abandon things beyond your inbred comprehension

Yes, this post shows what you really are.

That will sting but you deserved it dude with your post earlier.

Ignored.

 

[PoondolotoPandalum]

The problem is that you thought it smart to subtly attack others in an ad-hominem way.

I cannot recall ever engaging in you as your posts are infrequent and frankly too long to bother reading.

Anyway have you gotten over your heartbreak as regards that girl yet? I found it pathetic that you bared your soul on a forum like this. Maybe that was harsh but you deserved it.

PS - Dude it only takes a few minutes to write each one of my posts, unlike yours that probably take an hour or more, and so plenty of time to do other things during my day.

Yes, this post shows what you really are.

That will sting but you deserved it dude with your post earlier.

Ignored.

Order number 5, two chicken tikka massage with pilau rice and poppadoms.

Chop chop

 

[Arthur]

Our leaders lack vision.

I doubt most of them can even spell the word "vision"

 

[fallstuff]

So what's the commission for BAL on this ?

 

[bluesky]

I doubt most of them can even spell the word "vision"

But, Hasina visions a highly developed Bangladesh in 2041 when in reality the country is to be recognized as a "Developing country" in 2025.

Hasina is a visionary leader.

 

[fallstuff]

I doubt most of them can even spell the word "vision"

Yes they can, just not the one you would think ! It is more aligned with stealing !

 

[Beast]

The problem is that you thought it smart to subtly attack others in an ad-hominem way.

I cannot recall ever engaging in you as your posts are infrequent and frankly too long to bother reading.

Anyway have you gotten over your heartbreak as regards that girl yet? I found it pathetic that you bared your soul on a forum like this. Maybe that was harsh but you deserved it.

PS - Dude it only takes a few minutes to write each one of my posts, unlike yours that probably take an hour or more, and so plenty of time to do other things during my day.

He is correct to point out nationalistic BD like you who has no patient for success. Anything non achievable must be sabotage or traitor pulling down BD, giving you excuse for any BD failure. You all have unrealistic target for BD. Learn to walk before you run.

Thought so.

No useful contribution to add but to through sh*t. It's what your Gushti are only capable of. Low breed of shit throwers

It's easier for me to write "academic" articles than it is for you to fully grasp the news articles you even provide as evidence.

This is why posting in a Pakistani forum is the only thing you'll ever achieve in your life. Because no one else listens to you. The regulars here got fed up with you. And they're far more patient than me .

Stick to running your curryhouses. Your breed don't have experience running large industrial enterprises

Ignore that UKbengali, he is just a nationalistic bot who think BD can land human on Mars ahead of USA and China. They have zero idea how to build a modern success nation. No patience and all they can do is divert problem to unrealistic expectation.