The recently taken decision to construct a shipyard at the Payra sea port to facilitate shipbuilding in partnership with two foreign companies appears to be quite sensible. Following the formulation of the Shipbuilding Policy-2020, concerned quarters were waiting to see further proactive moves on the part of the government to promote shipbuilding as a potentially significant driver of the economy. The initiative to set up the shipyard, as a starter, looks promising in that it is very likely to stimulate much of the potential of the country's not-so-disciplined shipbuilding industry. The two foreign companies --- a Dutch and a Singapore-Australia-based shipyard group --- are reportedly at the completion stage of sorting out technical issues. The likely FDI involved in the project has been estimated to be $1.58 billion. The Bangladesh component of the project, as of now, is land-- little over hundred acres, according to shipping ministry sources.
For over a decade now, experts have been considering shipbuilding a highly prospective sector for Bangladesh, particularly in respect of producing small and medium sea-going vessels as the industry leaders like China and South Korea are after larger vessels like container ships and tankers. Others, including Germany and Italy, have moved away from the shipbuilding. According to shipbuilding experts at home and abroad, Bangladesh can emerge as a surprise competitor in the small-to-medium ocean-going vessels market segment. The focus of overseas buyers has been on Bangladesh for sometime, testing the strength of the country's shipyards with occasional orders. The test over, it is indeed gratifying that our manufacturers are now receiving orders from many countries. Bangladeshi companies have so far received orders for 40 ships of ten categories from 15 countries. The countries have placed orders for ro-ro vessel, multipurpose container vessel, tug boat, landing craft, bulk carrier, patrol vessel, catamaran water taxi, ferry, oily waste collection vessel and passenger vessels. Currently, global manufacturing capacity of ships is reportedly 7,500 and this number is expected to rise to 12,000 by 2025. Experts opine that if the present trend continues, Bangladesh has a fair chance to gain considerably from shipbuilding and exports.
There are quite a number of dockyards and shipyards in the country, and although export of ships from Bangladesh began in 2008, only a few shipyards follow international standards, according to industry insiders. It is here that properly set up shipyards with modern technology and capacity to comply with international protocols and fulfil numerous other compliance norms will make Bangladesh an exporter to reckon with, particularly in the small and medium segment of passenger and merchant ships. The foreign companies now at work to build the shipyard are basically interested in small-to-medium ocean vessels for countries of the region. No doubt, this makes their case appropriately fitting for the Bangladesh shipbuilding industry.
Given the huge activity that shipyards generate, setting up of international standard shipyards will usher in a new horizon for backward linkage industries, too. It is crucially important now to provide all facilitating services, including fiscal and logistical, to attract investment to this sector.