Shipbuilding industry calls for top priority
Friday, 28 August 2009
THE shipbuilding industry in Bangladesh is now in the list of priority sectors under the new export policy, along with agro and agro-processing products, light engineering, footwear and leather, pharmaceuticals, software and ICT products, home textiles etc.
Bangladesh has become a popular destination in building small sea-going ships as South Korea, China, Vietnam and other countries pursue for larger container ships. Foreign buyers are now coming to Bangladesh for building ships due to a steep wage increase in East Asian countries. The country exported its first ship to Denmark built by Ananda Shipyard and Slipways Ltd. last year under the agreement with Stella Shipping Co. of Denmark.
Ananda alone has struck deals worth around $225 million to build at least 24 vessels, including six ferries for leading companies in Denmark, Germany and Mozambique. Export Promotion Bureau (EPB) reported that Momroski Martin and Re-Edri, two German companies, placed orders recently for ships and multipurpose bulk-carrier, valuing US$49 million and US$67.37 million respectively. Now, about half a dozen entrepreneurs are ready to enter the market with sizeable investment.
Again, the global demand by shipbuilding industry is estimated, in value terms, at $400 millions. The EPB has also forecast that there is a large prospect for earning more foreign currency as well as employment in this sector by using our available skilled but comparatively cheap labour and expertise in the country. The shipbuilding industry will be added as a new non-traditional sector to our export basket.
In diversifying our country's export, potential and new sectors should be given preference. The Bangladesh Bank may help this new sector by giving cash incentive on exports, bringing it under the facility of Export Development Fund (EDF) programme and instructing the scheduled banks to lend to the shipbuilding industries at a lower rate of interest while fixing a interest rate ceiling.
Md. Saiful Islam
AVP, EXIM Bank Ltd.
Motijheel Branch, Dhaka.
Bangladesh has become a popular destination in building small sea-going ships as South Korea, China, Vietnam and other countries pursue for larger container ships. Foreign buyers are now coming to Bangladesh for building ships due to a steep wage increase in East Asian countries. The country exported its first ship to Denmark built by Ananda Shipyard and Slipways Ltd. last year under the agreement with Stella Shipping Co. of Denmark.
Ananda alone has struck deals worth around $225 million to build at least 24 vessels, including six ferries for leading companies in Denmark, Germany and Mozambique. Export Promotion Bureau (EPB) reported that Momroski Martin and Re-Edri, two German companies, placed orders recently for ships and multipurpose bulk-carrier, valuing US$49 million and US$67.37 million respectively. Now, about half a dozen entrepreneurs are ready to enter the market with sizeable investment.
Again, the global demand by shipbuilding industry is estimated, in value terms, at $400 millions. The EPB has also forecast that there is a large prospect for earning more foreign currency as well as employment in this sector by using our available skilled but comparatively cheap labour and expertise in the country. The shipbuilding industry will be added as a new non-traditional sector to our export basket.
In diversifying our country's export, potential and new sectors should be given preference. The Bangladesh Bank may help this new sector by giving cash incentive on exports, bringing it under the facility of Export Development Fund (EDF) programme and instructing the scheduled banks to lend to the shipbuilding industries at a lower rate of interest while fixing a interest rate ceiling.
Md. Saiful Islam
AVP, EXIM Bank Ltd.
Motijheel Branch, Dhaka.