Barua promises to lift barriers to shipbuilding
Our Correspondent | Monday, 21 March 2011
Our Correspondent
CHITTAGONG, March 20: Bank guarantee remains the biggest hurdle for ship builders as foreign buyers don't accept security from local banks, speakers said Sunday. They said local banks lobby foreign banks on behalf of ship builders for bank guarantee, which pushes up the cost of building a ship. The concern came at an advocacy workshop on regulatory barriers and transparency in ship building industry in the city. Industries minister Dilip Barua attended the workshop as the chief guest, jointly organised by International Business Forum of Bangladesh (IBFB) and the USAID. CMCCI vice president and PHP Group chairman Sufi Mizanur Rahman, Western Marine Shipyard MD Engineer Shakhawat Hossain and IBFB director Dr Umar Shafayat Kawsar addressed as special guests at the workshop, chaired by IBFB president Mahmudul Islam Chowdhury. Dilip Barua said Bangladesh is passing through a transitional period for ship building, because more and more investors are showing interest in the sector. "The government will accord all logistic support and frame rules and policies to remove barriers that stand in the way," he said. "We'll also ensure investment for the fledgling sector. We are going to formulate rules for growth of ship building industry as an export sector," he added. Traditional ship building countries are showing reluctance to build small ships weighing below 10,000 DWT following the global economic recession. This has consequently opened a new window of export opportunity for Bangladesh, encouraging local entrepreneurs to enter the lucrative shipbuilding industry. Some ocean going cargo vessels have already been exported and more export orders are in the pipeline. "As the trend suggests, contribution by the sector will comprise 3.0 to 4.0 per cent of the gross domestic product (GDP) by the year 2015," according to a report of IBFB. "The optimistic production puts the export at about $2.0 billion in near future." The report said that the demand for small vessels weighing between 3000 and 15,000 DWT is growing fast. Bangladesh is getting orders from international shipping companies due to its low cost and skilled work force. According to industry people, the global market for small vessels is about $400 billion with India and Vietnam being the main competitors to Bangladesh.
CHITTAGONG, March 20: Bank guarantee remains the biggest hurdle for ship builders as foreign buyers don't accept security from local banks, speakers said Sunday. They said local banks lobby foreign banks on behalf of ship builders for bank guarantee, which pushes up the cost of building a ship. The concern came at an advocacy workshop on regulatory barriers and transparency in ship building industry in the city. Industries minister Dilip Barua attended the workshop as the chief guest, jointly organised by International Business Forum of Bangladesh (IBFB) and the USAID. CMCCI vice president and PHP Group chairman Sufi Mizanur Rahman, Western Marine Shipyard MD Engineer Shakhawat Hossain and IBFB director Dr Umar Shafayat Kawsar addressed as special guests at the workshop, chaired by IBFB president Mahmudul Islam Chowdhury. Dilip Barua said Bangladesh is passing through a transitional period for ship building, because more and more investors are showing interest in the sector. "The government will accord all logistic support and frame rules and policies to remove barriers that stand in the way," he said. "We'll also ensure investment for the fledgling sector. We are going to formulate rules for growth of ship building industry as an export sector," he added. Traditional ship building countries are showing reluctance to build small ships weighing below 10,000 DWT following the global economic recession. This has consequently opened a new window of export opportunity for Bangladesh, encouraging local entrepreneurs to enter the lucrative shipbuilding industry. Some ocean going cargo vessels have already been exported and more export orders are in the pipeline. "As the trend suggests, contribution by the sector will comprise 3.0 to 4.0 per cent of the gross domestic product (GDP) by the year 2015," according to a report of IBFB. "The optimistic production puts the export at about $2.0 billion in near future." The report said that the demand for small vessels weighing between 3000 and 15,000 DWT is growing fast. Bangladesh is getting orders from international shipping companies due to its low cost and skilled work force. According to industry people, the global market for small vessels is about $400 billion with India and Vietnam being the main competitors to Bangladesh.