BSC to procure six ships from China

CHITTAGONG, June 19: Bangladesh Shipping Corporation (BSC), the national flag carrier of the country in the world maritime arena, will add to its fleet six new vessels to be procured from China under a preferential loan of the Chinese government to Bangladesh by early 2017.
The Chinese government-nominated firm China National Machinery Import and Export Corporation will supply the vessels at an accumulated cost of US $ 184.50 million (Taka 14.391 billion).
BSC Managing Director Commodore Moqsumul Quader was highly optimistic that addition of those vessels would enhance the operational strength of the BSC fleet running currently with eight old ships having an average capacity of 10,000 tonnes each.
He was speaking at a view-exchange meeting with the media at the BSC Bhaban in the city Wednesday evening. BSC Executive Director (Finance) Begum Yeasmin Afsana, Executive Director (Technical) Md Saeed Ullah, Secretary Golam Hossain and GM (Admin) Nowab Aslam Habib were present on the occasion.
Commodore Quader said the BSC signed an agreement with the Chinese manufacturer on April 30 last to procure every product oil tanker at $36.20 million and every bulk carrier at $25.30 million.
"We are also trying to procure a below 10 -year -old product oil tanker having the capacity of at least 34,000 DWT (dead weight tonnage) with the money earned through share sales," he said.  
"But the procedure in the international market is very complicated and capital-intensive. We have called quotations from suppliers thrice but failed and in the fourth tender we have received response from some parties and the proposals are under consideration," he said.
Under another joint venture, the BSC has received requests for proposal from some parties to purchase and operate a 100,000 to 125,000 dead weight tonnage (DWT) mother tanker. The BSC was now negotiating to offer the job to the lowest bidder, he said.    
He said the BSC had 13 ships in its fleet in the financial year 2012-13. Of them, the BSC disposed of five vessels in the last one year as they were very old and non-profitable.
The existing eight ships of BSC have an average holding capacity of 10,000 tonnes each while the new eight ships will have the holding capacity of 40,000 tonnes each.
Currently it has two lighterage tankers, five multipurpose cargo carriers and one container vessel. The average age of all these vessels is 30 years. The new vessels the BSC is going to have are three new product oil tankers and three new bulk carriers.
"Fund constraints have put us in deep trouble, because the BSC is a self-financing institution and gets no financial support from the government," he said.
"Since all the BSC ships have crossed 30 years of age, the BSC is left with no option but to continue its operational activities on a limited scale. Many crew members and officers have also been terminated," he also said.
An important and established shipping company like BSC has to have in its fleet 20 to 25 vessels. But it could not procure a single ship in the last 23 years due to its lack of fund.
"To come out of this situation we ventured in 2011 to procure six vessels with preferential loan provided by the government of China to the Bangladesh Government. The Government has provided us with the soft loan," he said.