Industry leaders have called for abolishing the outdated Bangladesh Flag Vessel (Protection) Act 2019 to unlock the 'vast potential' of oceangoing shipping and shipbuilding sectors.
Speaking at a seminar titled 'Investment Potentials in the Ocean Going Vessel Industry', a leading shipping entrepreneur, Azam J Chowdhury, said the law, originally designed to reserve 50 per cent of government cargos for Bangladeshi-flagged vessels, ended up favouring only state-run carriers like Bangladesh Shipping Corporation-despite private operators now owning over 100 vessels.
The seminar was organised jointly by the Bangladesh Ocean Going Ship Owners Association (BOGSOA) and Economic Reporters Forum (ERF) at the ERF Auditorium in the city.
Chowdhury also identified bureaucratic delays, such as requiring ministerial approval to sell ships, as barriers to the sector's growth.
He also cautioned that the International Maritime Organisation (IMO) rules will require ships to use zero-emission fuels by 2029.
"We must act now to adapt (such provision)", he said.
Senior Shipping Secretary Mohammad Yusuf said more than 100 shipyards are now struggling due to higher import duties on raw materials, while industries such as garments enjoy zero-duty imports.
"We are working to waive raw-material taxes and simplify VAT processes to help revive the shipbuilding sector," he told his business audience.
Mr. Yusuf said the shipping and shipbuilding industries have the potential to generate billions in foreign exchange if existing policy barriers are removed.
To enhance export and import activities, movement facilities will also be eased in the coming days.
The senior secretary further said the government is set to sign agreements next December with foreign companies to operate the Laldia Terminal, New Mooring Container Terminal (NCT), and Pangaon Terminal of the Chattogram Port.
He said the government received the consultant's report six months ago, and based on its recommendations, port tariffs had already been revised upward. Under the upcoming agreements, the Laldia Container Terminal will be operated by a foreign firm for 30 years, while the NCT and Pangaon Terminal will be managed for 25 years each, he said.
Delivering the keynote speech, Dr Zaidi Sattar, Chairman of the Policy Research Institute (PRI), observed that global shipping was facing rising pressure from protectionism and climate rules.
He said Bangladesh's export structure remains heavily reliant on ready-made garments, which account for 216 export categories, while over 1,300 other products contribute relatively little to export earnings.
"Shipping and shipbuilding can serve as Bangladesh's next major export sectors if supported through conducive trade and fiscal policies," he said.
Dr. Sattar also warned that upcoming International Maritime Organization (IMO) rules will require all commercial ships to shift toward zero-emission fuels by 2029, including ammonia and hydrogen. "Bangladesh must prepare now for this global shift if it wants to stay relevant," he cautioned.
Doulot Akter Mala, President of the ERF, said some 14 investors had invested $3.5 billion in the sector so far, but policy instability put them at risk.
She emphasised that the sector now fetches around $1.7 billion in remittances annually and the amount could grow significantly if necessary policy support is provided.
Discussants, however, called for an integrated policy linking shipping, shipbuilding, ports, and transport infrastructure--framing maritime growth as a matter of national economic sovereignty.
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