MoS pledges to help revitalise ocean-going shipping industry

The Ministry of Shipping (MoS) has pledged to help the local owners of ocean-going ships who are now in deep troubles.
As part of the pledge, the MoS will sit with the Ministry of Finance (MoF) for devising favourable policy supports for the local ocean-going ship operators.
The MoS met ocean-going vessel owners on Sunday last in the backdrop of a decline in the number of ocean-going ships with Shipping Minister Shajahan Khan in the chair.
Local ship owners have disposed of 12 ocean-going vessels worth about US$200 million over the last one year, thus downsizing the country's shipping fleet to 63 from 75.
Of the remaining 63, 20 vessels have been declared 'unfit' to ply on international routes.
According to the country's ocean-going ship owners, high duties on purchase of vessels, and existing 3.0 per cent cut in the inflow of freight earnings were identified as major barriers to the industry.
They said freight incomes dropped globally and the industry requires government supports to survive.
According to the ship owners, the freight rates have remained low since the financial meltdown in 2008 despite the spike in demand for transportation of goods through the international routes.
A representative of the Ocean-going Ship Owners Association of Bangladesh Shah Alam said it is hard to survive if the owners are required to pay a 3.0 per cent tax on their earnings.
He said the purchase of new vessels have become difficult for many reasons including higher registration costs.
"We just need policy supports to help grow the industry," Mr Alam, also managing director at the Continental Shipping Agencies of Bangladesh, said.
A senior official at the MoS said: "We're now finalising the minutes and will meet with the MoF as early as possible."
He said all senior representatives from the MoS, the MoF and the Ministry of Commerce are expected to attend the meeting in presence of the ocean-going ship owners at the joint meeting.
He, however, said the date for the meeting will be finalised shortly.
Bangladeshi ship owners are now losing interest in shipping business mainly due to the fall in freight charges on international routes. It triggered worries among the concerned circles in the government.
Bangladeshi entrepreneurs have stopped procuring ships since March, 2013.
Local companies started buying ships mainly from 2009.
During the period, local companies bought 51 vessels with different capacities for plying on the international routes.
They bought the vessels at prices varying between $15 million and $18 million each.