Shipbuilding and repair in Bangladesh
Commodore RU Ahmed | Monday, 2 June 2008
HUMAN needs are ever changing. Fulfilment of a demand leads to a new need. These needs know no borders in the present-day perspective. Local and global markets keep on changing as do the needs and demands of the human society. A country lags behind in the field of trade and commerce, if it fails to cope with the ever changing business environment. It ultimately creates severe impediments to economic development of a country.
The developed countries are successfully keeping pace with the rapidly changing world. That's why, they could establish their full control over global trade and commerce to keep up the sustainable development in their countries. Unfortunately, as the developing as well as the underdeveloped countries generally failed to keep pace with the changes. Economic development of these countries suffered time and again. But the countries or nations, which could prove their worth in the field of trade and manufacturing like Malaysia, Korea and China are now the examples of success.
Each and every citizen of Bangladesh, a developing country, expects its overall development. But in most of the cases the expectations don't get materialised. We failed several times, in the past, to take the opportunities. For this, our overall economic development suffered setbacks. The failure to take submarine cable connection at the first opportunity and the delayed response to the information technology (IT) business are the glaring examples. The authorities need to be careful and vigilant to prevent the repetition of such failures.
Ship building and repair are expected to be a profitable business for years to come. In the mean time, the well-known and well-established countries like China, Korea, Malaysia, Singapore and even India are overbooked especially for large ships. Consequently, the entrepreneurs in this sector are looking for facilities in Vietnam and Bangladesh for building medium-size ships. Some foreign entrepreneurs in the sector are preferring Bangladesh to Vietnam for the competitive cost of construction. Though the facilities are limited in Bangladesh, some foreign investors are keen to go for joint ventures with the Bangladeshis through foreign direct investment (FDI). Definitely, it's a positive development for Bangladesh. The Anando Shipyard already delivered a sea faring ship to Denmark. Western Marine also signed contracts to make ship for foreign buyers. Anando Shipyard is making more for a number of countries. Both the companies deserve appreciation for their pioneering roles.
The Khulna Shipyard Ltd, built in the early 1960s, was handed over to the Bangladesh Navy nine years back, when it had all but collapsed. And the Dockyard and Engineering Works Ltd, Narayanganj, was handed over to the Bangladesh Navy, two years back, when it was totally closed. Efficient management has made the 50-year old Khulna Shipyard profitable. But it needs modernisation. Some more time is needed to make the Narayanganj Dockyard and Engineering Works profitable.
There is enough scope to develop the shipyard, on 69 acres, and the dockyard on 22 acres, of land. But the needed modernisation or expansion is not possible with the limited fund available. A viable option for us could be to build ships under joint venture for foreign buyers.
Both the organisations can be in the booming shipbuilding business under joint venture, employing a huge manpower. Local workers can be trained with support from the foreign entrepreneurs to develop highly skilled workforce in shipbuilding.
Shipbuilding can contribute to our national economy. A good drydock will improve the possibility of earning a large amount of foreign currency by repairing foreign ships.
Shipbuilding and repair can immensely benefit Bangladesh. Other shipyards could follow the examples of Anando Shipyard and Western Marine. If required, the government needs to provide the support.
One day shipbuilding and repair can emerge as one of the leading foreign currency earners for Bangladesh. The possibility of foreign direct investment, under joint ventures, could be explored for ship building and repairing.
The writer is Managing Director, Khulna Shipyard Ltd.
The developed countries are successfully keeping pace with the rapidly changing world. That's why, they could establish their full control over global trade and commerce to keep up the sustainable development in their countries. Unfortunately, as the developing as well as the underdeveloped countries generally failed to keep pace with the changes. Economic development of these countries suffered time and again. But the countries or nations, which could prove their worth in the field of trade and manufacturing like Malaysia, Korea and China are now the examples of success.
Each and every citizen of Bangladesh, a developing country, expects its overall development. But in most of the cases the expectations don't get materialised. We failed several times, in the past, to take the opportunities. For this, our overall economic development suffered setbacks. The failure to take submarine cable connection at the first opportunity and the delayed response to the information technology (IT) business are the glaring examples. The authorities need to be careful and vigilant to prevent the repetition of such failures.
Ship building and repair are expected to be a profitable business for years to come. In the mean time, the well-known and well-established countries like China, Korea, Malaysia, Singapore and even India are overbooked especially for large ships. Consequently, the entrepreneurs in this sector are looking for facilities in Vietnam and Bangladesh for building medium-size ships. Some foreign entrepreneurs in the sector are preferring Bangladesh to Vietnam for the competitive cost of construction. Though the facilities are limited in Bangladesh, some foreign investors are keen to go for joint ventures with the Bangladeshis through foreign direct investment (FDI). Definitely, it's a positive development for Bangladesh. The Anando Shipyard already delivered a sea faring ship to Denmark. Western Marine also signed contracts to make ship for foreign buyers. Anando Shipyard is making more for a number of countries. Both the companies deserve appreciation for their pioneering roles.
The Khulna Shipyard Ltd, built in the early 1960s, was handed over to the Bangladesh Navy nine years back, when it had all but collapsed. And the Dockyard and Engineering Works Ltd, Narayanganj, was handed over to the Bangladesh Navy, two years back, when it was totally closed. Efficient management has made the 50-year old Khulna Shipyard profitable. But it needs modernisation. Some more time is needed to make the Narayanganj Dockyard and Engineering Works profitable.
There is enough scope to develop the shipyard, on 69 acres, and the dockyard on 22 acres, of land. But the needed modernisation or expansion is not possible with the limited fund available. A viable option for us could be to build ships under joint venture for foreign buyers.
Both the organisations can be in the booming shipbuilding business under joint venture, employing a huge manpower. Local workers can be trained with support from the foreign entrepreneurs to develop highly skilled workforce in shipbuilding.
Shipbuilding can contribute to our national economy. A good drydock will improve the possibility of earning a large amount of foreign currency by repairing foreign ships.
Shipbuilding and repair can immensely benefit Bangladesh. Other shipyards could follow the examples of Anando Shipyard and Western Marine. If required, the government needs to provide the support.
One day shipbuilding and repair can emerge as one of the leading foreign currency earners for Bangladesh. The possibility of foreign direct investment, under joint ventures, could be explored for ship building and repairing.
The writer is Managing Director, Khulna Shipyard Ltd.