100pc control of western shipping lines in local business opposed
Monday, 23 March 2009
Shipping Agents Association of Bangladesh (SAAB) said moves by some foreign envoys to help establish hundred percent control of western shipping lines over their business here may eventually end up in hostage taking of the nation's external trade, reports BSS.
SAAB president Ahsanul Haque Chowdhury told the news agency Sunday from Chittagong that his chamber and the business community, including exporters or importers, are opposed to such moves.
He said they are aware of the pressure and the growing lobbying of some foreign envoys, including the US and EU ambassadors, to remove existing restrictions on hundred percent ownership of foreign shipping lines in local business.
Noted economist Dr Qazi Kholiquzzaman said, "The country should use its shipping at the highest capacity and go for building new capacity. We cannot altogether abandon it to others."
The SAAB president said in fact 60 per cent of the cargo carrying and 80 per cent of total cargo business in value are now in the hands of foreign shipping lines.
Their ocean going ships operate up to Singapore and feeder lines largely owned by them carry the merchandise to and from Chittagong to transfer them to ocean going ships.
Only three local shipping companies -- Bangladesh Shipping Corporation (BSC), HRC Shipping and QC Shipping -- the later two in the private sector, are handling only a small portion of the ocean going business.
The predominance of foreign shipping lines is thus highly visible, he said wondering what is next to come, if hundred percent foreign ownership is established, is to totally wipe out local share in the country's external shipping.
He said foreign shipping lines should not set such targets and bring trouble to local shipping business, which is also largely working for them. "A total elimination of local presence is not desirable," he said.
They are not in any case putting investment here to demand total control. "What you need is to set up an office, fix some phones and fax, and start operating. No one is investing in building new seaport terminals or expanding existing ones to demand total ownership in business," he said.
It aims at taking over the domestic service sector relating to shipping, he observed. "It may be a move to gather more business for western shipping lines at a time when the western economy is desperately looking for recovery from global economic crisis. They are becoming aggressive," he said.
He said the government under the present rule of business has protected external shipping from falling hundred percent to foreign hands both for strategic and business reasons.
SAAB president Ahsanul Haque Chowdhury told the news agency Sunday from Chittagong that his chamber and the business community, including exporters or importers, are opposed to such moves.
He said they are aware of the pressure and the growing lobbying of some foreign envoys, including the US and EU ambassadors, to remove existing restrictions on hundred percent ownership of foreign shipping lines in local business.
Noted economist Dr Qazi Kholiquzzaman said, "The country should use its shipping at the highest capacity and go for building new capacity. We cannot altogether abandon it to others."
The SAAB president said in fact 60 per cent of the cargo carrying and 80 per cent of total cargo business in value are now in the hands of foreign shipping lines.
Their ocean going ships operate up to Singapore and feeder lines largely owned by them carry the merchandise to and from Chittagong to transfer them to ocean going ships.
Only three local shipping companies -- Bangladesh Shipping Corporation (BSC), HRC Shipping and QC Shipping -- the later two in the private sector, are handling only a small portion of the ocean going business.
The predominance of foreign shipping lines is thus highly visible, he said wondering what is next to come, if hundred percent foreign ownership is established, is to totally wipe out local share in the country's external shipping.
He said foreign shipping lines should not set such targets and bring trouble to local shipping business, which is also largely working for them. "A total elimination of local presence is not desirable," he said.
They are not in any case putting investment here to demand total control. "What you need is to set up an office, fix some phones and fax, and start operating. No one is investing in building new seaport terminals or expanding existing ones to demand total ownership in business," he said.
It aims at taking over the domestic service sector relating to shipping, he observed. "It may be a move to gather more business for western shipping lines at a time when the western economy is desperately looking for recovery from global economic crisis. They are becoming aggressive," he said.
He said the government under the present rule of business has protected external shipping from falling hundred percent to foreign hands both for strategic and business reasons.