BSC to buy six new vessels at Tk 14.391b by 2017

CHITTAGONG, June 6: Bangladesh Shipping Corporation (BSC) will add six new vessels to its fleet at a cost of around Tk 14.391 billion (US$ 184.50 million).
The vessels will be procured from China under preferential loan by the first quarter of 2017. These will include three oil tankers and three bulk carriers.
The oil tankers will cost $ 36.20 million each, while the bulk carriers will cost $ 25.30 million each. Each of the vessels will have carrying capacity of 40,000 tonnes, officials said.
BSC managing director Commodore Habibur Rahman Bhuiyan said the project for procurement of the brand new ships was approved in a meeting of Cabinet Committee on Government Purchase (CCGP) on March 4. The procurement is likely to be approved at ECNEC very shortly.
He said these at a press conference on the eve of the corporation's annual general meeting (AGM), to be held in the port-city on June 13.
BSC has decided to announce 10 per cent dividend for the shareholders in the AGM.
He also said the corporation has signed a memorandum of understanding (MoU) with Afroz Shipping Lines to transport passengers to Singapore, Malaysia and Thailand, and hajj pilgrims to Saudi Arabia.
BSC will give operational support to the new venture, while all costs, including purchase of passenger vessel, will be borne by the private company.
A 5-member committee, headed by BSC GM (operation) Captain Wahidur Rahman, has been formed with two members each from BSC and Afroz Shipping.
At present BSC fleet has only eight vessels of 10,000 tonnes capacity each, and all the ships are 30-35 years old. According to International Maritime Organisation (IMO) regulation, all these have become non-operational.
"But we have to run these ships for the sake of commercial interest of BSC. As we have to carry on business, being engaged in transportation of government cargo, we are just dragging on," the MD said.
Even in this miserable condition BSC has earned a net profit of Tk 33.6 million in the current fiscal year, he added.
"BSC has a fleet of 38 vessels till 1991. But it has already sold 30 vessels. We have also invited quotations for sale of MV Banglar Moni, MV Banglar Doot and MV Banglar Mamata as scrap vessels."
"Two other vessels - MV Banglar Kallol and MV Banglar Kakoli - will also be disposed off soon, as these five vessels have become fully useless."
After selling these five ships BSC will have only three vessels to run its operation by the year-end, he also said.
Apart from procuring the six new vessels from China by the beginning of 2017, BSC will procure a mother tanker and a crude oil tanker within 2016.
The mother tanker will be procured jointly with Chittagong Port Authority (CPA) at an estimated cost of Tk 4.0 billion. The crude oil tanker will be procured with BSC's own fund from the sale proceeds of its shares, the BSC MD said.
He also said Prime Minister Sheikh Hasina visited Ministry of Shipping in last September, and emphasised the need for procurement of vessels, including a mother tanker, for the sake of energy security. Following her directives BSC is trying to procure the mother tanker and lighterage tanker.
"Negotiations are at the final stage with CPA to procure the mother vessel, and it is expected to join the BSC fleet by the end of 2016. We have also started financial analysis for procurement of another four new cellular container vessels," he said.
BSC executive director (finance) Yeasmin Afsana, executive director (technical) Md Saeed Ullah, secretary Md Golam Hossain and general managers were also present at the press conference.
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