The New Nation - Internet Edition

NATION BUSINESS REPORT

Shipbuilding industry could generate net value addition twice that of readymade garment (RMG) industries in just five years' time, said Shipping Adviser Maj Gen (Retd) MA Matin yesterday.

Quoting the experts, he said the shipbuilding boom would continue for at least next fifteen years or might be for a longer period in case of Bangladesh because of its cheap labour.

The opportunity that is knocking must not be lost due to lack of priority or understanding of the prospects, he emphasized.

Maj Gen (Retd) MA Matin, who is also the Adviser for the Ministry of Liberation War Affairs and Ministry of Home Affairs, was speaking as the chief guest at the handing over ceremony of six ocean-going vessels to the Mozambique government representative by the Ananda Shipyard and Slipways Ltd (ASSL) at Ananda Shipyard, Meghnaghat, Sonargaon, Narayanganj.

ASSL handed over 6 ferries and boats to the representative of the Mozambique government.

The $80 million contact for these ferries and boats was obtained through an international tender in Mozambique which was funded by IDA of the World Bank, an official of ASSL said.

The Shipping Adviser said shipbuilding is a very attractive industry for a developing nation. It can bring a huge amount of foreign currency as the market is dollar-based. According to shipbuilding industry sources, orders worth around US$70 billion are currently floating in the air in the world market. If a small portion of that amount arrives in Bangladesh, it would bring massive changes in the overall socio-economic condition of the country, he said.

Matin said the government has declared shipbuilding as a thrust sector, and accorded green channel facilities of clearing of goods for 100 percent export-oriented shipyards. Recognising the importance of this sector government has paid due attention towards its improvement.

'I'm informed that about 40 ships have been ordered in Bangladesh in three shipyards and that quite a few shipyards are being set as 100 percent export-oriented industry. It is our earnest hope and desire that shipbuilding in Bangladesh will soon develop in a healthy form and emerge as a thrust sector,' he said.

He suggested that the facilities given by the government should be fully utilised and not misused.

"I wish to reaffirm the government's commitment to extend all possible assistance in this regard so that shipbuilding industry can take-off faster, stand firm on its feet and help attract a large amount of foreign investment," he said and requested ASSL to submit its demands to him.

Earlier, Afroza Bari, Managing Director of ASSL, sought 30 percent financial aid, cancellation of bank guarantee on raw materials at importing time, exemption from L/C confirmation cost, providing 7 percent yearly working capital facility and giving Bangladesh Bank the authority of issuing guarantee.

She also requested to issue long term multiple entry visa to owners/buyers, allowing them to stay for minimum one month in each trip, issue long term multiple entry visa to owner's representatives for full construction period of two years and a half, waiver of the necessity of taking approval from Board of Investment for the representatives to work at the yard and get visa and provide visa right at the airport.

Chairman of Ananda Group Dr Abdullahel Bari, who is also a naval architect by profession, presided over the function.

Among others, Einar H Jensen, Ambassador of Denmark, Frank Meyke, Ambassador of Germany, Antonio AP Jopela, Director General, INAMAR, Government of Republic of Mozambique, M Fariduddin Ahmad, Managing Director, Islami Bank Bangladesh Ltd, Kaiser A Chowdhury, President and Managing Director, AB Bank Ltd and AKM Sajedur Rahman, Managing Director, BASIC Bank Limited were present as special guests.

Md Abdul Mannan Howlader, Chairman, BIWTA, ASM Ali Kabir, Chairman, BIWTC, Gerd Wessels, Managing Director, Wessels Reederie GmbH & Co KG Germany and Choudhury F Zaman, Managing Director, Germanischer Lloyd Bangladesh Ltd were also present.

Both the Danish and German Ambassadors expressed the hope that Bangladesh had bright future in shipbuilding industry if technology and manpower could be used properly.

Apart from handing over the ferries keels were also laid for two 5500-dwt multipurpose cargo ships and plate cutting was done for another two 5500-dwt ships belaying to a German Company, Wessels Reederei GmbH & Co. KG.

Ananda Shipyard has so far secured export orders for 34 ships for a total contract price of US$373.50 million. The company has to-date received export proceeds and advance payments of total US$38.54 million. Denmark, Germany, Norway and Mozambique have placed orders with Ananda Shipyard.

Export-oriented shipbuilding, a very labor-intensive industry, has potentials of generating allied industries and earning huge foreign currency and developing extra ordinary skills in the field of engineering. It offers the nation infrastructure and shipping lines and creates scope for employment of mariners and seafarers. Bangladesh has semi-skilled, skilled and professional engineers as well as all necessary ingredients to be a shipbuilding nation. As such, the industry holds the potential of transforming Bangladesh to a middle-income country in the near future.