RESEARCH PAPER ON

THE SHIPBUILDING INDRUSTRY: A NEW BOOST FOR THE ECONOMY

Prepared for Maleka Sarwar (MKS) Faculty English 105

Prepared by Md.Moynuddin Hasan ID: 063075530

North South University December 26, 2009

For the research purpose I have made a questionnaire on the topic and with the help of this questionnaire I have surveyed 30 people.Finally I have given the findings I have got from this extensive research.Abstract: The following paper shows the detailed research on shipbuilding industry and how it is going to boost our economy which I have made for Eng 105 course over the last few days. . This paper has the introduction and background of the topic. I have also discussed the hypothesis and methodology which i have used for the research. The report contains an extensive research of how the shipbuilding industries can bring massive changes in the over-all socio-economic situation in Bangladesh .

Now Bangladesh is gradually entering a new phase in the shipping sector. There are dozens of shipyards in Dhaka. Barisal. the main shipbuilding factories are located on the southern bank of river Buriganga. The country has started building large ships for export purposes. and Khulna districts. Besides. In Dhaka. hundreds of big passenger launches were built in local shipyards. Since independence. But most of them have been sick concerns because of mismanagement and financial constraints over the years. where small size ships are built. Large wooden ships used to be built on the banks of the rivers Meghna and Shitalaykha.Introduction: The rich history of the shipbuilding industry in this part of the world goes back to the first half of the last millennium. It is even said that the famous Arab traveller Ibn Batuta came to this area on a big ship built in a dock located at Sonargaon near Dhaka. Narayanganj. A number of shipyards and dockyards in the public sector used to build and repair ships. But now the private sector has emerged as the major player. Earlier. The local shipbuilding plants have been constructing large motor vessels and meeting domestic demands for a long time. hundreds of small cargo vessels are also being built here every year. the shipbuilding industry was dominated by public sector enterprises. . Over twenty large and half a dozen small shipyards are located there. The shipbuilding plants in the country have already received around $150 million worth of orders for constructing and supplying ocean-going ships to Europe and South-East Asian countries. Many such historic ships are being preserved in European museum .

The plants are Western Marine Shipyards Limited in Chittagong and Ananda Shipyards and Shipways Ltd (ASSL) at Meghnaghat. a riverine country with huge coastal areas that are frequently lashed by cyclones and natural disasters. the majority of the workers in Singapore shipyards are from Bangladesh. follow a specialized occupation that traces its roots to before recorded history. according to sources in the shipbuilding industry. actually generate vast amounts of revenue from its extensive coastline. Shipbuilders. from a company in Denmark for building a 26.Some local shipbuilding plants also build international standard ships. also called shipwrights. Ship building and breaking has been going on in this country for a long time and Bangladesh has such a highly experienced labor force that even today. Bangladesh. can. Background: Shipbuilding is the construction of ships.000 ton capacity cargo-carrying ship. The Western Marine Shipyard got the first export order. But this is for the first time that two shipbuilding plants have received orders from abroad for large. . It normally takes place in a specialized facility known as a shipyard. worth $11 million. ocean-going ships.

Before becoming a ship building nation. . Bangladesh scores full marks on all these counts. bulkers and tankers. This particularly applies to shipyards that until now were best known for scrapping and breaking ships. South Korea and Vietnam go for the larger container ships. According to shipbuilding experts in this country and abroad. and infrastructure with proper sheds and skilled manpower. there are four mandatory conditions in order to produce ocean-going vessels: international standard shipbuilding practice. Bangladesh can emerge a surprise competitor in the small to medium ocean-going vessels market. quality management system. coastal and riverine country. With global shipbuilding orders of very large vessels increasing every day. a market is emerging in Bangladesh for shipbuilding yards that can concentrate on producing smaller sea-going vessels as the industry leaders like China. and not building them.

and Singapore have been inundated with orders. South Korea. What are the possibilities of shipbuilding in BD? 2. Who are the Competitors in the international market? 8.RESEARCH QUESTIONS: 1. Vietnam. For which market they are building ships? 4. China. Those countries are no longer interested in taking orders for small or medium range ships. What are the Effects it has on economy of BD? 7. What are the problems this sector is facing? HYPOTHESIS: The world's shipbuilders are looking for new places as the major shipbuilding countries like. What type of investment local or foreign they have? 5. Japan. and Singapore are booked until the year 2010. All the shipyards in Vietnam. What type of ships they build? 3. How they attract more investors? 6. So Bangladesh can take the advantage here as most of the shipbuilding companies in Bangladesh are . The buyers have become desperate and are looking for new locations for placing order. China.

Shipbuilding industries has a huge effect on the economy of Bangladesh. There are few competitors for Bangladesh such as Japan. . The main disadvantage in developing the sector is non-availability of steel. South Korea and Vietnam. from a company in Denmark for building a 26. Singapore. From these points of view. The main advantage Bangladesh has is that it is a riverine country having vast rivers. Recently the Western Marine Shipyard got the first export order. The cheap labour force can be used for shipbuilding work after brief training. China. This sector is creating many jobs thus it is reducing the unemployment rate in our country. which Bangladesh does not produce and the government has hardly any policy for developing shipbuilding industries in the country. Bangladesh is now an ideal place for setting up shipbuilding industries. which is one of the major pre-requisites for developing shipyards and Availability of plenty of workforce is another advantage. They are making these ships for local as well as for the international market. worth $11 million. Shipbuilding industries in Bangladesh has both local and foreign investment. The order is the biggest single order so far that any private company in the country has received. Before it has only local investment as they were building ships for the local market but now they are getting foreign investment. It is also contributing to our GDP (Gross Domestic Product) by building ships. Then as it grows big it can bring a huge amount of foreign currency as the market is dollar based.building small and medium size sea going ships. and the shipbuilders are following the prevailing export-import policy which is not favorable for the shipbuilding industries.000 ton capacity cargo-carrying ship. the main raw material for constructing ships.

I have also used secondary data for collecting information about this issue. I will depend on survey to find out who are the shipbuilders in Bangladesh. I tried to do an extensive research in the web sites. magazines and journals. Survey: For my research purpose I have divided my data collection process in two parts. With the help of this questionnaire I have surveyed 22 males and 08 females. But most of them are economist. I have used primary data for getting the perception of people on the shipbuilding industry and how it can change the economy. As for my secondary source for the research. But as we know. I have made a questionnaire of 12 questions of which are directly related to my topic and study area with.RESEARCH METHODOLOGY: As for my primary source. I wish to browse through the internet and go through newspaper articles. businessman and entrepreneurs. I will also interview an economist. I would also interview an expertise person of Shipbuilding Company. . magazines. the secondary data is not always reliable. reason behind their building ships and how it is contributing to our economy. I also took an initiative to gather some primary data..

Then it can also help us to reduce the rate of unemployment in Bangladesh.4 What are the effects we can have in Bangladesh through expansion of shipbuilding industry? 2% More foreign earnings 24% Rduce the rate of unemployement Can change the social economic condition of our country other 54% 20% From the graph analysis it can be said that almost 54% of the respondents think that Bangladesh can earn more foreign currency . which will eventually affect our economy.some 20% think that it can also reduce the rate of unemployment. Basically if we can have more foreign investment in our country then we can have more and more industries then it will create job opportunity for the people. Thus it can reduce unemployment and change the social economic condition of our country. We can say from the data that the shipbuilding industry can bring foreign investment in our country.Data analysis: Question . . Overall it will change the social economic condition of our country. Some 24% think that it can change social economic conditions of our country and 2% think that the shipbuilding industry cannot bring changes in the country.

It is possible to attract sizeable foreign investment on shipbuilding by way of utilizing skilled and low wage workers. The National Board of Revenue(NBR) has to be proactive by way of allowing tax exemption and bonded warehouse facility. It is felt that if the incentives provided to garment industries are extended to shipbuilding. it will help attract a large amount of foreign investment.Question. At this stage. Some 17% think that by making encouraging government policy we can bring more foreign investors and some 27% think that only by building good sea going ships we can attract foreign investors. There are . Some 56% of the respondents think so. some shipyards are capable of manufacturing oceangoing vessels.5 How can shipbuilding companies attract more foreign investors? 0% 17% 27% By providing cheap labor and good environment for shipbuilding By making good govt policy other 56% By building good sea going ships Shipbuilding companies can attract more foreign investors in our country by building good sea going ships and by providing cheap labor and good environment for shipbuilding. Inland water transport vehicles are being built in Bangladesh for a long time. A number of deep draft ports are needed for ship-building in suitable locations.

great possibilities for shipbuilding sector in a conducive policy environment.some 6. The emerging shipbuilding industry will strengthen the export diversification strategy..so we can capture the market. orders worth around $70 billion are currently floating in the air in the world market. the surveyed population thinks that we do have the capability to capture some portion of this floating market. Some 84% think that availability of plenty of cheap labor force can help us to capture this market. Our cheap labor force is the main weapon for us when it comes to shipbuilding industry and it is where we have the advantage over the competitors. . Do you think we can get some portion of it because.7% thik that we have expertise labour force.7% thik that we have good environment for shipbuilding and 6. So through exploiting our cheap labor we can bring a good portion of the floating money . Question .then it will be a huge boost for our economy. We have world class expertise and skilled labour force for shipbuilding Good environment for shipbuilding 0% 7% 7% Availability of plenty of cheap labour force 86% others As demonstrated by the chart above.10 According to shipbuilding industry sources..

Danish shipping interests recently have placed substantial orders with Bangladeshi shipyards. On at least two instances. My primary research tells me that the shipbuilding industry in Bangladesh is now becoming a promising sector as it has signed several contracts with Danish investors to build multipurpose vessels. My research also tells that successful shipbuilding ventures can have a tremendous positive impact on job generation. . and help Bangladesh to create another µthrust¶ sector like export-oriented readymade garments and textiles and IT. however. agreed with most of my hypothesis with only a few exceptions.Summary of findings: My research tells me that shipbuilding industry can change our economy through the multibillion dollar foreign investment and through exploiting cheap labor and good environment for shipbuilding we can bring foreign investors in our country. Results from my primary and secondary research are similar with each other for the most part. technology transfer and export revenues. Primary research findings and the secondary research findings.

Conclusion: All my findings and analysis supports the thesis statement that I mentioned previously. Shipbuilding industry is a emerging sector in Bangladesh. I found that this sector is facing so many problems. . so government should give more priority to this sector as it can bring so many changes to our country. After concluding the whole research I have found different perspective or opinion regarding the role of shipbuilding industries in our economy and it¶s current situation. While I was doing my research on shipbuilding industry. So I think research can be done on the problems of shipbuilding industry and how it can be solved.

November 12). Shipbuilding holds out high promises.com/en/?p=784 The article gives a idea about how attractive our shipbuilding industries are for the foreign investor.net/forum/2007/july/break.M. 2009. Khan. from http://munshigonj. November 19). (2009. advantages and disadvantages of shipbuilding industries in Bangladesh. Shipbuilding industry sees growth spree. It also talks about the government policies and affords to bring the foreign investors in Bangladesh.It also talks about the prospect.thedailystar. Sultana. Forum. The financial express. 2009. 2009. from http://www. S.thefinancialexpress-bd.htm This article talks about the history of the shipbuilding industries in Bangladesh as well as its current situation . from http://www.php?news_id=84738 .com/more. (2009. Retrieved December 5. R. Retrieved December 4. Retrieved December 5. Let's build as well as break.References: Hasan. (2007).

Ship Building Industry of Bangladesh and its Export Possibility. The writer also talks about how the foreign investment in this sector can affect our economy. 2009.doc This article talks about the Shipbuilding Industry of Bangladesh and its Export Possibilities . www.This newspaper article talks about the country¶s fast growing shipbuilding industries and also about the interests showing by the foreign firms in these sector.epb.it also describes the shipbuilding and market the chances Bangladesh has in this sector. .gov.bd/word/Bangladesh_into_Ship_Building_final. Retrieved December 4.

Sign up to vote on this title
UsefulNot useful