The state-owned BIWTC is likely to be in the doldrums in near future because of its 'declining' financial health, said the officials concerned.
The Bangladesh Inland Water Transport Corporation (BIWTC) is still a profit-making entity.
But, the margin of net return from its services is squeezing rapidly, according to official data.
Such deterioration in the areas of earnings triggers the fear that the BIWTC might become a loss-making entity in coming years.
A section of its officials said the corporation is being shown as a profitable one with the inclusion of its Fixed Deposit Receipt (FDR).
But without the FDR, the BIWTC is actually incurring loss, they also said.
The organisation provides three types of services - ferry, passenger and cargo transportation.
Of these services, its passenger carrying facility was the worst performing one, affecting the total financial health of the BIWTC, they noted.
According to the official data, the net profit of the corporation stood at Tk 272 million in fiscal year (FY) 2016-2017.
The figure was Tk 482 million, Tk 572 million and Tk 622 million in FY 16, FY 15 and FY 14 respectively.
However, the corporation has to pay bank instalment amounting to Tk 37.5 million in every three months against the loan it has taken from various banks, they added.
When contacted, BIWTC Director (Finance) Shahinur Bhuiyan said the corporation has been making profit largely due to its monopolistic ferry services.
He further said the passenger service puts an extra pressure on its overall financial health because of growing operational cost in the form of high fuel expense.
According to the official calculation, the BIWTC counted a substantial amount of loss for operating its passenger service.
For operating the service, the corporation gave the total subsidy amounting to Tk 117 million over the last three FYs. Of the subsidy, Tk 33 million was given in FY 15, and Tk 42 million in both FY 16 and FY 17.
BIWTC Deputy General Manager (Commercial) Sheikh Md. Nasim said they introduced two modern passenger steamers - MV Bangali and MV Madhumati - in 2014 and in 2015 respectively to make a turnaround in the area.
However, the daily loss each of the vessels incurred is around Tk o.1 million, and their total annual loss is Tk 70 million, he also said.
In the area of cargo shipment, the BIWTC's earning fell drastically over the years. It earned around Tk 68 million in FY 15, which declined to only Tk 12 million in FY 17.
Talking to the FE, BIWTC Chairman Mohammed Mafizul Haque said the corporation is still making profit despite various limitations.
"Its present status is ok."
He further said the corporation is providing services (to people) as a government entity. On the other hand, it has to work on commercial basis also.
"So, it's not easy to make profit. But we're earning."
Mentioning the BIWTC's future plan of actions to make it a strong state entity, he also said they would buy 35 water vessels of various categories in the coming year.
"We're going to introduce four container ships tomorrow (June 03), and many more to come," he added.
However, a section of its officials and employees said the authority should not launch any vessel without conducting proper feasibility study.
They said MV Bangali and MV Madhumati were introduced without proper study. Now the vessels have become a source of pain for the corporation.
