Shipbuilders demanded Thursday formation of a long-term refinancing scheme of Tk 20 billion with single digit interest to facilitate further development of the industry and progress of ongoing work orders.
A 5-member delegation of the Association of Export-Oriented Shipbuilding Industries of Bangladesh (AEOSIB), who met the Finance Minister AMA Muhith at his secretariat office on Thursday, also urged him to increase the rate of cash incentives on export of ships to 15 per cent from 5.0 per cent.
"If supported accordingly, the industry can fetch US$ 1.5 billion from exports annually by the year 2020 with creation of job opportunities for about 0.1 million people," said AEOSIB general secretary Eng. Md. Sakhawat Hossain while presenting documents to the finance minister to justify their demands.
The finance minister appeared to be impressed and narrated the old heritage of the country's shipbuilding history highlighting its importance, especially for a riverine country like Bangladesh.
The minister assured them of looking into their demands but hinted that it might take some time for a decision.
Since 2008, Bangladeshi yards have been manufacturing and exporting ferries, cargo vessels, and ocean-going multi-purpose ships worth about US$ 600 million. The vessels were built for countries like Denmark, Germany, Finland, Pakistan and Mozambique.
Recently, the industry has received orders from New Zealand, East Africa and India which shows the shipping business is once again recovering and the global shipbuilding market is showing keen interest in Bangladesh.
To secure growing export orders, Bangladeshi shipyards need to be competitive against shipyards in Vietnam, India and China.
The signing of the Protocol on Inland Water Transit and Trade (PIWTT) between Bangladesh and India might create huge demand for coastal ships.
"If our shipyards are not competitive in the Asian market, we may lose opportunities for getting these orders," said a document of the AEOSIB handed over to the finance minister.
Although it is a small beginning compared to giants such as China, Japan and South Korea, industry owners say Bangladesh's shipbuilding industry will continue to grow as it has several advantages over rivals.
"The only help we need is government assistance to reduce the cost of financing through formation of the refinancing scheme," said a member of the delegation.
mzrbd@yahoo.com
Shipbuilders demand Tk 20b long-term refinancing scheme
FE Report | Published: July 17, 2015 00:00:00 | Updated: July 16, 2015 23:26:29
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