The government plans to increase the share of Bangladesh flag vessels in overseas cargo carrying to 60 per cent from the existing 40 per cent.
The plan will be implemented by amending the relevant law amid moves by both public and private-sector entities to add a number of ocean-going vessels to their fleets, officials said.
The government has taken steps to replace the Bangladesh Flag Vessel (protection) Ordinance 1982 with a new act facilitating the intended hike in overseas cargo transportation.
Under the present ordinance and rules, Bangladeshi flag vessels can transport at least 40 per cent of the overseas cargoes and the vessels of the countries involved in bilateral trade another 40 per cent, while the remaining 20 per cent cargoes are carried by third-country flag vessels.
Officials at the ministry of shipping said the present capacity of Bangladeshi flag vessels is very poor in terms of carrying export-import cargos.
But the capacity is set to rise, as Bangladesh Shipping Corporation (BSC) is collecting a number of vessels shortly and the private sector is also expanding shipping business.
They said the country's export-import activities see a significant growth every year. Though the present ordinance and rules give protection to Bangladeshi flag vessels to carry at least 40 per cent of cargoes, they are even allowed to carry 100 per cent of cargos if capacity is achieved.
"As we are now replacing the ordinance with an act, we are trying to protect the interest of the country's flag vessels by raising the ratio," said an official of the department of shipping (DoS).
He said the decision to raise the ratio has been finalised and the proposed act will be sent to the cabinet soon for approval. The ministry of law and parliamentary affairs has already vetted the draft of the proposed act.
BSC Managing Director Commodore Yahya Syed told the FE that presently, the corporation has two vessels while the private sector has 39 ocean-going vessels. But most of them are not capable of carrying cargoes on international routes.
With the present capacity, Bangladeshi flag vessels can carry very minimal portion of huge overseas trade cargoes.
But, he said, the BSC's capacity will increase manifold once the under-construction and planned vessels join its fleet. BSC then will be able to carry a big share of overseas cargoes.
"By raising the ratio in the new act, we want to give maximum protection to our flag vessels," said Mr Syed.
Presently, apart from national flag vessels, several international shipping companies, including Maersk Line, Pacific International Lines (PIL), 'K' Line, Yang Ming Line, Samudera Shipping Line, the Sea Consortium, Far Shipping, and Bukit Barisan line run feeder services to Chittagong and Mongla port from different major ports to carry Bangladesh's inbound and outbound cargoes.
The BSC is extending its fleet mainly with the funding from Exim Bank of China. Presently, three oil tankers and three bulk carriers are under construction at a cost of US$184.50 million, which the BSC expects will start joining its feet in mid-2018.
The process of procuring several vessels for BSC with foreign funding is underway to expand its capacity.
syful-islam@outlook.com