Move to make Shipping Corporation more profitable

The government has taken initiatives to make state-run Bangladesh Shipping Corporation (BSC) more profitable and revive its past glory by improving its service standards.
Currently, the corporation has three vessels only--MT Banglar Joyti, MT Banglar Sourov and MV Banglar Shikha--in its fleet. Of three, two are crude oil literage tankers and one is container-carrying vessel, reports UNB.
The vessels as old as 30 years cannot go to sea due to the rules of the International Maritime Organisation (IMO).
According to an official document, the Shipping Ministry has taken an initiative to procure six vessels, having 39,000 deadweight tonnage (DWT) capacity each, with the financial assistance from China. Of the total, three will be oil tankers and three bulk careers.
Officials at the ministry said these new ships would be added to the corporation by 2018. The ships will be procured from China National Import and Export Machineries Corporation (CMC) at a cost of Tk 18.43 billion (1,843 crore). Of which, Tk 14.48 billion will come from the Chinese government as loan, while the rest of Tk 3.95 billion will come from the corporation's own fund.
The three oil tankers will be used for transporting imported and refined petroleum of Bangladesh Petroleum Corporation (BPC) and the bulk carriers for carrying coal for power stations, fertiliser and other materials.
A financial agreement for procuring the six new ships from China was signed during Chinese President Xi Jinping's visit to Bangladesh last year.
The six vessels will be added to the fleet between May and December next year.
The document said the procurement of one 38,000 DWT capacity oil/chemical, crude oil tanker is at the final stage.
It said that a process is underway by the Shipping Corporation to induct two new mother tankers from 1,00,000 to 1,25,000 DWT capacity each, 10 new bulk carriers with 10,000 to 15,000 DWT capacity and two new mother bulk carriers (coal carrying) having at least 80,000 DWT capacity each.
The document also noted that there is a plan to procure two new 40,000-CBM capacity LNG carriers, four new container ships with 1,200 to 1,500 TEUs (twenty-foot equivalent units) each, two new mother product oil tankers (for diesel) with 80,000 DWT capacity each and two new chemical/crude oil tanker with capacity of 30,000 to 35,000 DWT.
The corporation has already inked a deal with the Chinese Institute of Marine and Offshore Engineering for the construction of two 40,000-cbm LNG carriers.
According to the Memorandum of Understanding, the two vessels will serve the country's first LNG import terminal at Maheshkali, owned by Petrobangla.
The shipping corporation has procured a total of 38 ships since 1972 and after 1991 it did not go for vessel procurement. But it had to sell 35 as their operational validity expired.
The corporation made a net profit of Tk 67.2 million in the fiscal year 2015-16. The company's board recommended 12 per cent stock dividend in the last fiscal year.
The government owned 52.10 per cent shares in the corporation at the end of September 30, while institutional investors owned 20.40 per cent and public 27.50 per cent, according to the Dhaka Stock Exchange website.