International Maritime Organisation (IMO) has recently concluded its Council and 30th Assembly in its own headquarters in London. IMO is a specialised agency of the United Nations that look after safety and security of shipping along with protection of the marine environment. The Council of IMO is like the governing body that approves activities of the committees and approves the budget.
Council members have a lot of clout as it selects and nominates the next secretary general (chief executive) for final approval of the Assembly. Bangladesh had been a member of this prestigious council since 2003 but failed to get re-elected this year.
The failure to get re-elected as a council member has disappointed many in Bangladesh. The question remains as to how important it was to get elected. There is nothing more than a bit of prestige. Bangladesh is a developing country. It cannot afford to maintain a permanent representative at IMO.
It cannot even attend all committee or sub-committee meetings. Council members are required to attend all council meetings at own expense to make their contribution in future guidance for IMO. Bangladesh is obviously far from it. It has so much to do at home before it can make any impact on international forum.
MARITIME LAWS: Legislation lays the foundation for future growth in shipping. Our existing legislation is totally obsolete and provides no help to the growth of the sector. Our legislation is so frightening that some of our ship owners are having their ships registered elsewhere. This is not helpful to our economy. We must have modern user-friendly legislation.
Why has a ship to be brought to Bangladesh for registration? I worked as a Deputy Director of Bahamas Maritime for nearly four years. At that time, Bahamas was the third largest ship register in the world. Ships changed into Bahamas flag in Asia, Europe, Africa or Australia. Some of those ships never even visit Bahamas in their life time. They trade all over the world but fly the flag of Bahamas.
When a ship is eventually brought to Bangladesh, a battalion of custom officials board the vessel in the name of assessment. It is sheer harassment. Ships will be registered on payment of registration fees. Periodical renewal of registration will be done on payment of tonnage tax (capacity tax). This is how modern system works and legislation has to provide for such provision.
Transportation of goods and passengers from one point in Bangladesh to another must be reserved for Bangladesh flag vessels. It should also apply to any tug, barge, drilling unit, exploration vessel, supply vessel and other marine units engaged within our EEZ (Exclusive Economic Zone). However, there must be also provision for grant of exemption so that trade and commerce do not suffer any impediment.
Bangladesh Flag Protection Ordinance is apparently a flawed piece of legislation. It is allegedly a money-making machine for a section of corrupt officials in the name of granting waivers. There are many other ways of supporting the national flag carriers.
One example, exemption of freight tax may be exempted when goods are shipped on national flag carriers. However, we must not try to spoon-feed our ship-owners. They must compete in this world of "open for all business". They must survive and flourish on their own competence.
Another unnecessary piece of legislation based on UNCTAD 40-40-20 formula is said to be under process. How many countries have any such legislation?
DEPARTMENT OF SHIPPING: The government has created a department of shipping under the merchant shipping ordinance. This should include a range of functions - registration of ships, survey-certification of ships, training and certification of seafarers including approval of training centres, employment of seafarers in compliance of ILO convention, coordination with national telecommunication authority, coordination with international bodies and agencies connected with shipping, approval and monitoring of classification societies and all other matters relating to shipping and maritime. These are matters referred to in the law and the director general remains responsible for compliance in accordance with the laws.
In reality, the role of the government is now confined to supervision and monitoring. In nearly ten years of my service with UK-MCA, I have seen this agency dealing with all matters without any reference to the ministry (secretary of state). This included issue of exemptions on behalf of the secretary of state.
In our case, the ministry is top-heavy, eager to keep a grip on everything. But what is needed is decentralisation. For example, the mercantile marine department at Chittagong is supposed to be a field office of the department of shipping. It is in no way involved with shipping. The word shipping means transportation of goods and passengers. That office deals with employment of seafarers.
Why the office should not be named Directorate of Employment & Welfare of Seafarers under the Department of Shipping? It is time Bangladesh privatised "Recruitment & Placement Services" (RPS) through licensed agencies. As a matter of fact, this is what is suggested in ILO-MLC-2006 Convention. The directorate under the department of shipping should then supervise and monitor the given guidelines and procedures.
This will encourage employment agencies to explore global market for seafarers. The Marine Academy and Seamen's Training Centre should operate under strict guidance and supervision of the department of shipping so far recruitment, training and subsequent employment are concerned.
PAIRA SEA PORT: The present government has taken up a plan for development of Paira as a sea port which in all probability does not seem to be a practical one. The entire channel will require dredging almost round the year. It will require staggering amounts in investment with very little return to make it ever viable. It is time to employ top experts to review the matter.
BANGLADESH SHIPPING CORPORATION: Bangladesh Shipping Corporation (BSC) is a state-owned company. It had its rosy days with Capt. QABM Rahman, Mr. QMS Zaman and Capt. Shafi in the helm. It started with almost nothing and increased its fleet to 32 ships plying all over the world and made such profits that the company gave as many as three bonuses a year to all employees ashore and afloat. Then the government interference gradually led it to its burial.
The first and foremost way to revive the BSC is for the minister to give up the chairmanship of the Board and appoint a dynamic business-minded management expert as its chairman and managing director. This person, man or woman, could be of naval background or merchant marine background or a prominent lawyer or a chartered accountant or otherwise a renowned person with knowledge of shipping.
Once appointed, the chief executive should be given a free hand without the interference of the ministry to turn the tide. Even today, if we procure four (800 TEU container) ships to operate shuttle from Chittagong and Mongla to Singapore and Hambatota linking with the main line operators like NYK, M-OSK, Evergreen, Neptune, Maersk. P&O-Nedloyd etc, the business of BSC is sure to bounce back. There has to be a will to do it and do it now.
SUGGESTIONS: The government should address the following matters urgently:
a) The has gone utterly wrong All concerned should be consulted and the IMO flag state audit should be corrected;
b) A modern comprehensive merchant shipping act should be urgently enacted;
c) Port matters should be viewed from technical and other feasibility points. Attention should be focused on development of a proper deep sea port with full feasibility study;
d) Mongla port should be made economically viable. It is too expensive at the moment;
e) BSC should be salvaged so that it gets back its glory days;
f) Initiatives should be taken to make our merchant marine certificates more widely recognised and accepted;
g) It should be studied why so many cadets, trained in marine academy at state expense, cannot find employment;
h) The process of giving visas to seafarers to join ships abroad should be expedited;
i) Our ship-builders should get more incentives. They are already doing a good job. They need more support;
j) Ship-breaking industry should be made more environmentally acceptable.
Finally, there is good demand for trained and certified tug masters, coastal masters and engineers for operation of various local boats and barges in Saudi Arabia (both coast), Dubai, Abu Dhabi, Sharjah, Qatar, Bahrain and Kuwait.
The department of shipping may send a delegation to these countries and find a way forward to provide some better training to some of our inland masters and drivers. They may be issued with special certificates and documents acceptable to those countries. This will open another avenue for more employment.
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