Shipbuilding has huge potentials to boost economy: Shipbuilders

Local shipbuilders, who have already made a mark in attracting foreign buyers, said Bangladesh has a marvelous opportunity to earn huge foreign currency by building and exporting ships. "If the government patronizes this prospective sector, it can play a significant role in giving a boost to the national economy," Managing Director of Karnaphuli Shipbuilders Ltd Engineer MA Rashid told UNB appreciating the present government's positive approach to the sector.
He said marine vessels, ferries, cruise-ships, fishing boats and launches are built in the country's coastal belt and the offshore islands, but the potential of this sector still remained untapped simply for lack of visionary entrepreneurs, favorable atmosphere and government support.
"We can raise GDP (Gross Domestic Product) by at least 3 per cent within the next six years if we're given a favorable environment," he said.
Industry insiders said the shipbuilding industry will be the driving force of another socioeconomic uplift in the country after the RMG-driven revolution in the 80s, as it can create huge jobs at shipyards and its backward linkage industries.
The annual turnover of the global shipbuilding industry is around US $ 1,522 billion. European shipbuilders stopped taking orders until 2010, while Asian shipbuilders in Korea, Japan, China, Singapore, Malaysia and Vietnam have already received adequate export orders.
It is assumed that over US $ 300 billion worth of export still remain untapped and local ship-making companies can grab this opportunity.
"This is a new but bright sector for us. So, it deserves special consideration. The government will provide all necessary supports to this sector for its growth," Industries Minister Dilip Barua told UNB correspondent AKM Moinuddin.
Meanwhile, the Export Promotion Bureau (EPB) has recommended giving priority to the shipbuilding industry in the upcoming three-year import policy. It also recommended a plan to bring down bank interest rate to 8 percent and simplify the import procedures of raw materials for the shipbuilding industry.
Sources said Western Marine Shipyard Limited has so far received orders for manufacturing five seagoing cargo vessels from a Danish company.
Another two shipbuilders -- Ananda Shipyard Limited and Slipways Shipyard Limited -- are also doing a good business. Chairman of Western Marine Shipyard Md Saiful Islam said Bangladesh has a competitive edge on shipbuilding for having efficient and cheap labour force.
Referring to a problem, Saiful Islam said Bangladesh has an image crisis in the western and developed countries but "we can rebuild the image with a flagship industry such as shipbuilding."
"Shipbuilding is a heavy industry and also highly technical.
Bangladesh can be turned into a shipbuilding nation from a ship-breaking one," he said.
Entrepreneurs said having international certification and accreditation from the Germanisher Lloyd and Norske Veritas are a must for a country to grow as a shipbuilding nation.
"In most cases, international certification depends on the vessel's design, craftsmanship, interior and exterior decoration, utilities, security and safety features what are again directly linked to the international suppliers of the vessel components," an official of the country's biggest private shipyard said demanding a favorable import policy for the budding industry.
Referring to Vietnamese investment in shipbuilding over the last decade, officials said Bangladesh has a competitive advantage over its Asian competitors because of its cheap and able workforce.
They think it is high time to tap the potential and urged the government to provide the industry required moral and infrastructural supports.
Western Marine Shipyard Limited has so far built 55 vessels. The vessels acquired certification from the international classification companies.