BSC may incur significant loss this fiscal
Tuesday, 3 May 2011
Syful Islam
The Bangladesh Shipping Corporation (BSC) likely to incur significant loss this fiscal year due to the oil price hike in the international market and reduction in cargo handling globally, a senior official said Monday. "The price hike of oil in the global market has raised our operating costs by 20 per cent. Besides, global trade volume has declined significantly due to the impact of oil price hike. That's why we are expecting to incur loss this fiscal," BSC Managing Director Commodore Moqsumul Quader said. "We have already informed the fact to the Ministry of Shipping. But we are trying maintain break-even position," he added. He said: "The way oil price is increasing globally, it is difficult ascertain now where the loss will stand. The BSC in last fiscal (2009-10) made a profit of Tk 100 million and had incurred loss in FY 2008-09. Mr Quader observed that shipping business was the first victim of any global turbulence. The Middle East unrest, which attributed to price hike of oil, has cast negative impact in shipping business. He said many local shipping companies are now counting loss as most of them are sitting idle due to lack of work order. BSC has some 13 ships through which it provides shipping services on international routes. The state entity is now trying to buy two product carriers and one mother tanker to expedite its business. "We do not have any product carrier and mother tanker. So, we have to depend on others which cost us a lot of money. So, we are going to buy those," said the BSC MD. The corporation will have spend Tk 3.5 billion to purchase a mother tanker and Tk 2.09 billion for each product carrier. This time the BSC will buy 10-year old ships whose total lifeline is 25 years. Mr Quader said the ships will be bought under Public-Private Partnerships (PPP) for which it will seek expression of interest (EoI) soon. The BSC has already received four proposals from the private sector for forging the partnership to buy the ships, he added.
The Bangladesh Shipping Corporation (BSC) likely to incur significant loss this fiscal year due to the oil price hike in the international market and reduction in cargo handling globally, a senior official said Monday. "The price hike of oil in the global market has raised our operating costs by 20 per cent. Besides, global trade volume has declined significantly due to the impact of oil price hike. That's why we are expecting to incur loss this fiscal," BSC Managing Director Commodore Moqsumul Quader said. "We have already informed the fact to the Ministry of Shipping. But we are trying maintain break-even position," he added. He said: "The way oil price is increasing globally, it is difficult ascertain now where the loss will stand. The BSC in last fiscal (2009-10) made a profit of Tk 100 million and had incurred loss in FY 2008-09. Mr Quader observed that shipping business was the first victim of any global turbulence. The Middle East unrest, which attributed to price hike of oil, has cast negative impact in shipping business. He said many local shipping companies are now counting loss as most of them are sitting idle due to lack of work order. BSC has some 13 ships through which it provides shipping services on international routes. The state entity is now trying to buy two product carriers and one mother tanker to expedite its business. "We do not have any product carrier and mother tanker. So, we have to depend on others which cost us a lot of money. So, we are going to buy those," said the BSC MD. The corporation will have spend Tk 3.5 billion to purchase a mother tanker and Tk 2.09 billion for each product carrier. This time the BSC will buy 10-year old ships whose total lifeline is 25 years. Mr Quader said the ships will be bought under Public-Private Partnerships (PPP) for which it will seek expression of interest (EoI) soon. The BSC has already received four proposals from the private sector for forging the partnership to buy the ships, he added.