EVALUATION OF POTENTIAL, PROSPECT AND CHALLENGE

OF BANGLADESHI SHIPBillLDING
IN LIGHT OF GLOBAL CONTEST

By
Khandakar Akhter Hossain

Thesis Submitted to the

Department of Naval Architecture and Marine Engineering
in partial fulfillment of the requirements for the degree of
Master of Science
m
Naval Architecture and Marine Engineering

Department of Naval Architecture and Marine Engineering

Bangladesh University of Engineering & Technology
Dhaka-lOOO, Bangladesh
 DECLARATION

I do herebJ' dec1are that

this l!Jes!s or {In." pari of if has 1701 beel! submitted elselVhere for the
mmrd a/any degree or dipluma.

January 10, 2010

"
 CERTIFICATE OF RESEARCH

This is to certify that

this work has been done by the candidole and it was
nol submitted dsewherejor the alvaI'd of any degree or diploma

Supervisor

iii
 -- --
CERTU'ICATE OF APPROVAL

The thesi, "Evaluation IIf Po/ential, Pro.\ped and Challenge of

titled
Bangladeshi Shipbuilding i/1 Light of Glo!Jrd Cllntest" submitted by
Khandalu:r Akhtcl' Hossain, Roll No-040~12005F, Registration No-88612 has been
accepted a, smisfaclory in partial IIIt 1111,"enl of (he req L11rcmC~b for Ihe degree ;)f lI./a,;,e; 01'
:'.cience in Naval Arch itectul'e and /vlar; IlC[ngilleer; ng 011January] 0, 20 j O.

BOARD OF EXAMINERS

Chairman
LOr.1\. i\L Golam Z"k"ri" (SUllervisor)
Assblant l'J'o~cssor
Dcpl of NJ va I Arc hiledllJ C :Intl ~vl",-in" i:ngincel'ing
l3allgl~dcsh t!" ;yerslt} of E~gine"ril1g & Tcdlilolog\'
Dhaka"JOOO, llQl\gl~dc;h,

Member
2~ (Ex-officio)
Professor & I-lead
Dept of Naval A,-chite~t\lrC ,md ,\larill~ I;tlglll~cring
l'Iangladnh U 11;vels Itl' of [~gil1ecri ng & Technology
Dhaka-IClOG, Bangladesh.

,~
Professor
lHember

Dept d Nnval Architecture and M"rille 1;llgltl~~rilig

Bangladcsh Uni\'crsity of Enginc'cring & Tc~linology
Dhab-! 000, Bangladesh.

r 6S'< 2{>-=ZS~ Member

4. Dr. 1\-1.,\, lb.hid Sarlmr (External)
Profc,so]
Dept of Meelwn i~al Eogilleel ing
Bangladesh Un i ,e"ily 0 t' Engineering & Technology
Dhaka-IOOO, Bangladesh.
 ABSTRACT

Thi, thesis deals" ith the evaillation of the potenlial, prospect and challenge of Bangladeshi
shipbuilding industries. 1l is un exploratory rc,e~l'ch work "here dala about the local

shipbuilding pmctlce hal been collected through exte"si\'c field ,i,it, survey, comuitalions

and ll1~eting with stake hold~rs "I'd also IrQm the eXlc""i\'~ review ofliteraturc_ The overall
piclure of [he loc~l shipy~rd, l1a., been n."csscd and categorizatiOIl of the existing and

plOj1oscd shipyard, 11", b~~n perfomlcd in '"'peel ol"capability and competenl"Y ofbuildil1g
export quality ship Ii-om Bangladesh. l'OI~rlI",llly of Bangladeshi shipyard, has been
analj'7cd on the b", i., of labour CO>I,bhQLlr P' OdLLCllVH}and quality of work. Shipbuilding

problem, and challenges bovc been identified nnd p,,,spcct of Bangl~deshi shipbuilding
indLlotr;"" b"ve hccn addrcso~d lhml<gh the Imal:.,i, 01 inlernntiOllol shipbuIlding market,
strength, nnd we:lkne,,,cs ef the po%ible competitors, The a «cssrncnt "f cxi,ting backward

linkage induSI,i"s has been sLLr'~ycd "nd Iheir plU'pect "nei conlribution low~rds the local

and export yu"lity ships have been ([u"mined SWOT "mly,is 01 Bangl~deshi sh'pbuilding
industnes has been performed for detclfiLining lhe sustai nabilily of shipbllilding industries of
Bangbdcsh

It h", bee~ revcolcd from lhe p,e_,c~l research w"r'k lhat lhere Me 69 shipy",ds exisl in
B~ngladcsb in wlLich "'''l'~ lbnn 150000 ,k,lled. scmi-skilled and unskilled workers are
working. ;\boul 9 local sbipyard, arc c"p~ble of making: "cean going ,hip, up to 10,000

D\VT nnd "nather dozen of shIpyards are devdoping facilJl,~s and capacity airning to enter
into export market Pl"<)dllct;\'iry of Banglade.<hi shipbuilding labour has been found to the

lowesl in the world, A ver~gc houriy bbour charge in Ra"glade,h is also the lowest in tbe
world whkh wOlr'"ntio, the hu~e od"anwgcOlls position among tbe ,hipb\\ilding nations
FunmJ predicti"n ol"tho preSent reseolch "I«) ,,"'cal,,(1 th"l Banelrrdcsh has ~ big "I'porluniry
in shipblillding seClor ill the imernal,on"l ,Irena l"',ng he, exislmg capability and expanding
her facilil,~s "ccordil1~ 10 Ihe reeOIIl",cndall()J]S tiul hme been laid down in tbis th~sis wmk,
 ACKNOWLEDGMENT
--
I am Gxtremely happy to ~ccomplish [he M Sc E'lgincering thesis on Evaluation'of the
Potential, Prospect and Challenge "r Shipbuilding Industry of llangladesh in the light oJ
Global COlltes!. Thi, gi~alltic task would IWI h"ve b~"n possible wltholl! very special ami
invaluable support and all (i'nc co.optralion I"L"OllI
Dr. l\. M. Golam Zakari", Assistant
Professor. Dcpt of Naval Ad,ikClurc "I'd ••..
I',.ino I'ngineering, Bangladesh University of
Engineering & TEchnology. DIMka, [ am "()ll\~-"'Llg lilY heJrtiest grotitude and best regards

[0 him for his grc:I1 ';lIp~Jvision ami hrilli:lI11,1Ig:!~e'li"'L\ lO llccomplish the (he,is in time,

I e."pre" m> deepest grmillld~and "dm;lali,,,, lowa,",ll'rul'. Kltabir"l Haque Chowdhury

and Prof. Dr. 1\1<1.Refa}c! UII"h. Dept M "',,val Architecture and Marine Enginccring,
Bangl:ldclh Uni,e"it: 01' 1'.nginCCrlJlg& T"clllWlog:, I)Il~k~ for constant clicoLLragemeLll

and guidJncc to accompli,h Ihi.' dimeLLlt lOok, I "m c'"'tT~mdy gratd,i1 to Hr. Md. Mashud

Karim, Professor ,md l.leJd "f tile Dept 01 N:I\'nl r\lchitectLLre and Marine Engin"cring,

Banglad~sh Univel'sity "I' Engineering & T~dll1"log:, Dhaka. and Dr. Kho. Shahriar
Jqbal, Associate Professor. Dept "fSaval AlchitcctlllC and Marinc Enginecri~g, Ba~gladesh
Uni'~r,ily c>f Engineering & 'Icchnolog), IJILUka for thei,- ",,"derrul suggestions nnd

irr'piratic>n to rem"i" In gelllll'lc 1l'llck and 1" c{"llpl"IC 1h" thesi, ",ithin the shortest time. I
con".y my spcclal thJllks to thelll !()J theil \"!ll"blc glll(lancc and advicc, Ab", Md
Mashiur Rahaman, pr~,enll} 'ludYllig ill Tokyo lini,e,-,i1y of Japan, mu<;l get special
thanks for helping my I'c'.~tclll>y ,cllding ,ollle "dLl"blejm"'Jl~1 papers and articles.

J"m highly gratei'll I to He"r Admiral (l{ul) B Hahman, nde. psc, BI\', DG Shipping, Rcar

Admiral M I' Ha]'ib. mk. P'~, flN. i\CN~(I') 01' Il"- C\ln' A S ?II A Baten, ndc, psc, HI--!,
ACNS(M} of [ll\': Or. ,\ H",-i, Ch"i"""n ,\~,\l: [\'hl S"kh"""t lIuaasin, 1\1U \"iMS; A
L"tii: MD "I,SL; j\ld ]\!"h",oud",. Il.allm'''L Chai,-man Highsp~cd and Ship}'l,-d, & Ship
O"Jle,- A,soci<llions: G Rabk,ni. "II) DIlI,W; Fll~J", Enam,,! B"'1"i MD CDI)L; ('dre S
A Inm,n. p,c, 131".MD KSY. Capl i\l A Kln,n, psc, Il;-"" ,\j[) IlI,W; Capt M Klqbal. p,c.
llN, DNT 01'i3;~: Engr ,\1 A Ibshi(). ,,10 KSI'I : /II<I Mnhb"blJr Rahman. ~ID CSYL: Md
NnZIll1ll Haque. I'leSld~lli %ll'buildc'l.s ,'\"()l'i,Lli()n: M<l En"",,,1 Knbir Kh"n. Chairman
KBSL: Engr Ill'. ,\ ibhilll, 1'"",,1 ,\,-chitect: En~,. Md A lsla",. Ow~er 01' a Lo~al Ship

De,i gn tirm: Dr. Sadin l""i~unnesn, Dll"Ccior 1\-1

LIIiSII'\ of FQre;gn I' iTairs; A rmn Am, DS

,,

.'•
 - --~-
Ministry of ril]ancc; Eng" Md i\ K'lbir, Representative of Komrowski M~rilim GmbH;
Omar Faruq, Director EP13; Engr Md }:,kandcr Ali, Chainnan Executi\'e cOlllmittee,
lBBL; llr.lVI<l. Sh"hiulIl hlam. fil'Sl Secretary (Customs), National Board of Revenue; Md
Anisur Rahma", llipuly Director, Foreign Exchange Policy Dept, Bangladesh Bank; C. F.

Zaman, M"nag:ing Direclor, Ge,,,,,mnisciJc, I,[oyd Ill) I-Id; Mtl Slmll'lul Islam, COllntry
Manager 1\'K, Mr Kooncemski, 0" n~J vf KQ;mQ"'ski lI-blj,im (;'nbH, Germany, Dr. Stefan

frowein, Ambas,,,<1,,, F"l'OPC:lll Union, Prof. II II ehUll, Pusan j\~tiona] Uni\'crsily of

Korea; Pwf. Kll7\lhiko Hasegawa, Osaka University of Japon; Capt ;"\liehael SOCl"cnSCll.

Foreign Ship Slijer. Wnl!on \'nlad"r~,. Technical Consultant & Representative ofForeigl1
Ship Buyer; and IlHlny olher, for thei,. I'cm~rl..:lble, precions ~nel spect~cular advice, eo-
opemtion and s"pporL

It was a hectic nLld l'halkllglllg t",l.. C()] " ,iLlgle ,-ese~rch~r to collect eI":", """IY7e plOblcrn
and come 10 a cond"SWLl, I never felt alone to accomplish my mission, Starting irom Md

Alomgir, "lei l\1osharrof Ho%oin, Mel lbmhml, Md Farhad, Ashu Bahu, all the staff. "nd
respectable teache,s 01 Ih" Dcpl.-of Nanl Architecture "nd Marine Enginecring; help mC in
all respect during my siudy and ,,,,!lie my hfc ~oll1fortabl~ (0 8t"y in !JUET. J am Sure that,

without thei •. ''''!lSIDp h"lp. it w,,, nol possible lor mC \0 fini,h w~h mns.,ivc task within
stipulated titHe. "I y 'pee i,1iH.:gard, HnJ thanks 10 ~II of them.

- •• i
COi'l'TENTS Page NO
AIISTRAC'J'
ACK,,\'O\\'I ,E DC; EM I<::'1T
COi'iTE1\TS \"111
Rf;FEREi'lCES
ANNEXES
",
Xlt
UST or TABLES m
LIST Of j,'ICljlU<:S n
i\OTA'J IO"'S Ai"D SY'\lBOLS XVI

CHAPTER 1 1,'I'TlWDl ,cno:,,!. OIl.lECTln:. HATIO',ALl::, METHODOLOGY

AND OU'I'CO.\IE 01
I, I Gelleral Inlroduction 02
1.2 Th~ R"tLonale and B<i~~grollnd"I'lhe Sludy Oi
1..1 The OI'J"clin of'lh'~ Sludy 10
1.4 The J\lelllodology arlile S[lI,l} 10
I 5 Difli~"lly Faced dur;n~ d,lIa ColleClion and Sludy 13
l.u TILeOutcome 01 (he Sludy 14
I.i TheSlructur~orlh" rhesis 15

CH..\I'TERl SllJI'BlIlUHi'iC J1[STORY Ai'il) I'HACI"IU; r;:-; BA"'(;LADESH

2.1 Brie~'(j"nertll Sc'cnJlio 17
2.2 Ilislory of I\ Imkrll Slnphl<lIding amI (, l()b~1Tr~nd 18
1.1.1 G~ner,lI Vicw 18
22.2 rvlodcm ShirbLLild"'g Em StoJ'1edmClllOrcall ]8
Connlric,
22,.1 Sh'pblllidint; SlIp~riarity Shified to USA 19
2.1,.) Japon BecaLnc lhc World Slnphuilding Cente, 20
2.2.S l're'cn!ly A,ia lkcolllmg [he Glol>ull'otential 22
Shipbuilding Center
2.3 Hangladesbi shiph"ddil1~ d"d il" hi,laric evidence 22
2.:1 Present ,talu, "f ,hirbuildiTlg llldll,try oj Banglode,h 24
2,5 Lisl of Shiryard, ofB"ng[adcsb 2i
2 (, Type oLhips h~,,\g built in Bangladesh 28
2.7 Sl"l"o of D~L1gla,kshi,hir Design C,'pJbilily 29
2.'1,1 Slate 01 toe,,1 Ship n"s'gn 30
2.7 ~ Ship Design Corabilily "nd :',oftwMe (Joe hy 32
Local ~hipY"l(1
2 1..1 T)I"',()ChwCI.",~d Ve"clsh~Lng :13
lou'lly IJlIilllll Ibl~glade"h
2.k "ppm"m:LlIOI1 01 S'z~, emt "nd Growlh of!hc Iml",lry 3~
3,8,1 COSIo[ cOII,bLLl(; inland and Goaslaillcel 33
.1.k.2 l'lcctol'i~hlld \c"cl 'll"krDOS 33
.'.8.3 l'le,'! 01'cO<lslal '"""01 ,,"dc, IvlM [) .14
),9 ("p"bLiili~s ot lew ,eleded sillpyards ]6

r
CHAPTER3 BANGLAIlESIIl SHIPBUILDING POTENTIAL & CAl'AlllLY
3, I General introduction 45
3.2 Bangladeshi shipbuilding potential 45
3.3 Loculions ~nd B~sis of Assessment of Shipyards 47
3.4 Cmcgo,izatio~ of Bangladeshi Shipy",d5 48
3,5 Type of ships can IJuilt and bPOlt by Local Shipyard!> 50
3.5. I Capabil ily of Local Shipyards 10L'COllslrtlctioll 50
01' COUllllCL'lIal
Ve,sds
J.5.2 C"l'abil ily of Local Shipym-ds for Conslruction 51
ol'\\/mships
J G 1:."L1npleof Jew CI~ss Vessels Design/BlIild in Bangladesh 51
37 Capabilitie, of loeal ,hip br~akillg Induslry 52
3,8 Rd"li\'c labor cosl for M,rld shipbuildi~g indu.<t,yand 53
POSilic)n0f Il"nglade,b
3.8 I Labour CompCl~Jley 53
3,8:' c\\croge Homl} Labor Co,t, in Currelll US$ 56
in World ShipbLlildingLabour, including Fringe Benetits
38.' Compari,oll of Labam COS(alld Producli\'ily 53
3.9 i\L"C:lS ofth~ Niche I'os.,ibililics f",- lJanglade.'h 59
3.10 I',<:\CLllIIIvcstmcnllrend in Local Shiphu ildiIIg (,0
3 II Rcbtio'l belween S,mll & Medium Enlnpri,", (:'.MEs) 60
and Shiphuilding Indu,try
312 PC,spcclLveof%ll.'s ill Bangladesh 62
:, I3 C"pah iIiIi"" 01'mallL11;1Clme of shipbllilding component, (,4
3 14 Suml1l"ry ol"Slmng I'LJ;ntill Banglmbhi Sbipbuilding 70

CHAl'TER 4 Sll1l'BUl LDIi\'G J\L\IUUrf ANALYSIS AND PROSl'~:C"]' OF

BANGLAllESli
4. I I'valualion of World Shipb" iIding Imlll';lr)' and
Opportunity for Bangladc,h 79
4,1.1 Ci~Il~I.alintl'Oduclion 79
4.1.1.1 AdvanlagcofShip 79
'I. I. I 2 ,\dvanlagc of ShIpbuildLllg 7'1
4,1.2 Shipyard"tilld Shipbuilding 80
4.1.3 Sllil'l1uildlllgMarkel 80
4.1.'.1 New Building.\larkel 80
4.1.3 2 Silip SC'"l'ping Markel 81
4.1.3,3 Silip Repair Mal'kel 82
4. 1.4 i'L-c,cml,-c[l{lsof world ship buiIding indu';trics 82
4 I 3 Opport,""ly li-"n4ngladesili shipbuilding 82
'1.2 ,\ naly,i, 11r \\ orld ShiPI'Ing Business alld Shipbu ilding 85
e,Lll'kc,
'12 I Sllalcg-' IOJCrro\\lh wLdSlIrvlval'll ~hipbllildiJig 85
~ 2 2 Imom'llio",,1 Shipbuil<liLlgB\lsi~ess 85
Ii 2 3 nO"1ll in.Shipbuilding In(luSll'Y 86
~,2,1i I,clalioll b"lw"cn Shippi~g alld Shipbuilding 87
~,2,5 I;j"reelof Scrapping and Slcel M~rkel 88
~,2,6 Nm\l1e 0l.Prc,ent \Vorld Shi pbuilding Markel 91
4.3 ,\nn IJ',i, 0f local shipbu ilding l11arkd 92

'X
 _ ...••,._-
4,3,1 Genel'al I'icw o[ I.OCdlShipbuilding Market 92
4 J 2 Vc"ui Order En!i," World Ivblker unci Status of 92
B~llg1adesh
4.3.3 DcducliuLl from Wol'id and iDcal Shipbuilding
~lalket 96
4.4 AnalYSISof the competitor market 97
4.4, I ,\naiy,;, .,ITull I',cnd 97
4.4 ,2 Some Sample S raliSIJ~S "f Potcntlal COH;petitor 97
4.4.3 ML~",lior. "f SliipLi:uing ~nd Benefit of Banglade,h 98
44.4 Some I'QSSilJJllllC, 99
4.5 Anal)'.';s of Slnpbuild i Ill; Pm'peel "f Bang:ladelh 99
4.5, I forclgll l.xpo,",,," of i.OC,ll Shipbuilding 99
4.5.2 C(}s!-I'lkc!i,e Local HUlmm Re,ource, 100
4,5.3 I_oc~l Ship IlrcJkillg and Bllilding Potentiality 100
45.4 Local Ship)''',,1 OW"'% Vic\\'\ and PI'OSpcct 100
An" 1),13 ()C 1', i\Ok Sh'pb"i l(li n",
4.5.5 L()('all'~J'Cll Vic,,'., ;Iud \'r'''l'cL\ Analy,is 101
ufl'lIblic ';h,pbullding
~ 5J, Experl \oicws ,md I'ro'pcCI lw,L1y,is of 102
Il" ILgllllk.,bi Sh'plJLIL1dlllg

ellAl'TER 5 llAi\GLADESI II SlUl'BlJIL])Ji'iG PROBLEMS A'>H) CHALLENGES

5, I F"clnl S ArIcc 1to Devciop alld :-Jmlu,"eShipbuilding 104
5. I.1 IJ nde"lJnd Shlp and S]'ipbui Iding 104
5, I .2 (;0\ CI"'Llull S"pl'"rl I" ,\1and,lIory 10 Dcvelop 104
Sh ipbui Idi Ilg lllJu ,try
5. I ,3 Econom;c ,\,peel 01'SILlpbLLildin~ 105
5.IA !'rice and E\chJng~ Rale III Shipbuilding 106
5, I .5 ATlCnll0l10 r n~ngbde,hi GO"cmmenl and 107
Aliocil\lOn of A DI' iu,"WnteJ'ways
5 2 Invesll;,':"l;o]] 0 r 13/1Llglade,hi Sh'pb"i ld; ng Problems 108
5.~.] G~ncmll',,,blcl1l.' in n~Jl~bdcsllL Shlpbnilding 108
52.' Flll"LlC;,tip",blem 108
5 ~.1 Ted",i",,1 )l",bklll III
5.1 d l"lra,lrllCll1l'C l)Joblelll 113
5.1.5 I\larkclin~)J'lUblcm 114
5.1.(, 1\1"Llagclllclllproblem 115
52.7 Human 'cSOllr,'Cde\clopmunl problem 116
52 S Q,wlily IMbkm 117
5.1') DclaydcliWL) problem 118
5.1.10 PIiCCl'l'oGkm 120
5,2.11 So"w"pcci"II'lxlbkm, 121
5.3 I,collo", i, H,c,c'ssi"1l"nd ('"nee Ila""n of ,h ips' order I13
5.' I Glob,d ~hil'b\llldin~ dlld E~"Llomic Rec~ssion In
5.3 2 Ecollom ic L'vc.ss;on <ILldBunglarJe,lLl ,hipbuilding 114
5'1 S"l"-'l;-l'ie..llh &: [mironlLll'''l (S['II,) aspeClS 125
5.4.1 Sal;'t)' "Ild health nspccl 125
5.4.2 1:11\irom"enwl OSVCl 126
5.5 l)~dlJ(,1"", or 1J'"1,t1'Hk3hi SillpbUllding Challengc, 12(,
CIlAI'TER 6 CASE STUDY; GLOIUL LEADING SnU'llUILDlNG NATIONS

Analysis of Important Factors tha t Steel' (~I()h"l Leading 128

Shipimilliing Nations (Japan & South Korea)
6 1 Specialized Technology and Sblled bL"m Boo,t up 128
~h iphui lJ Illg
6,2 'Jecill1icallnnmalioll "nd M'lllagGL"i,,1S~,ll Promole 128
Shipblllldlr-g
6,3 Jlldustri"lizalion IS thc l',cwndilion fol' Development ,29
o[Nationlil Shipbuilding
64 Finane",l Supporl ~nd I"vol\"cmcnl ofGo\'Clnmcnt 130
i, thc Mai" Driving hlL"Ceto ~ro\\' up SI1LpbmIJm~
(, 5 Co-uperatioll among I,ncal Ship)'",d, is the si[l',if,callt 131
i<sLlctn Impnnclllcni 01 SllLpblldding IuduSllY
(),(, Ha~b"H'cll.inkJg" "nd Supply Chain i, Ihe Imporlant 131
1'rer<:'11I1silCtn cnllallCClllent or ShipbuilJlllg

b China going to he no I "orlll Shipbuilding :-;alioll Withia 2015

6, 7 Gcnc •.~l Jlltroduction "nJ Slllpbmldlllg I-!LStor"u[ Clnn" 133
(,.g S~'ph,ilding. Indnmy "nrll;cOllnll1} nfehin" 134
6.9 l\-bjQI' Sil ipyard< "'lei Shipbmld ing CnpncilY of Chin" 135
6.10 EXpallsion Pb" ond (,O\crnmen( Inyolw 111Chine," 136
Shipbuild Lng
("I I Economy .Cr~"lc, U nch" II~ngLLLg 0PI'OI('lT\I\"y 137
jm Chin~,~ Shiphuilding
('.12 In1CI'~3lof for~ ill" Sh ipp,-d.,/ll1\'~qon Enhance Chinese 137
ShiphnildLng
("U C"ndid Vie'.,'" [,om C,\"S] 138
G.;--1 P,~di"t;on of Wo,ld ,hip completion by Chlll~;~ ofJi~ial 139
G.15 Pr"diction 0' World ,hip complet;on by South Kore" 140
('.1 (, i'r"dic lJOn of world ,h iP completion, hy 'I ime Series 140
G.17 1',.,,,liuirm or ,hip complelion 1L1Chnw 141
G.18 Deductionl,om ("hiLle.'CShil'bLlllding 142

Inri;" is c()",;ng '" i\CIY l'1"yer in W"rhl Shipbuilding 144

6.19 G~ne,al inllndnctioLl 144
6.20 History 8:. o,,"rvie\\' 144
6.21 M,Lj"'- _,hil'}md, 145
(J.n Lng~sl I'LLbl i" ,hip} :ml "f India - Cochin shipy"rd Ltd 146
(j,n L,rgcsi I,,',,'ar" shipyard ,,[ India -A13(; _,hipy"rd lAd 147
(,2--1 Go'Crnl\)C1l1 policy lo Support l,oc"1 Shipyard, 148
(, 25 .'\ll"l}>" oj Dn'dc'prL\elll 01 J"cti"n ,hipbuild'LLg i"dllstry )49
iJ 2(, C()mI'J1Ln~ Iml", <llld,hin1l 150
6,27 SlakehoiJclS in Indian ,hLpbutldLLlgstewl' 151
(),28 Kc'y '5'''''' ""d ol;allenge; Dctecled by Indian 151
Shipb,,,ldlIL£- 1,&D
(),29 G '-u\\'11>Ellable, s or Ind i:m "hipbui lding 153
G3(. D~ctLLc""n n"llllndian Shiphuildin~ 154

Yietnam .\]Jpc~,. '" WOlrid l\ew Shiphuilding: Giant 156

0.31 (JcneJallntrodLiUlull 156
 G.32 HIstory 0 r YielLl:":lCSCShipbu ilJing: Development 158
G.33 Yietn"m Considcr Shipbuilding"s Stratcgie lndustry 158
6.34 Role OfVLdl1"lll (,'" Ollllllent tor Shipbuilding 159
Dc,elopmcnl
G.35 Fi nallcing ami G"""lLltc" SoIL~L"C,of ShIpbuild ing 1 59
6.J 6 Pr~d ielLun uf ,hip comp1ction in V Lelna", 160
6,37 Vi<:tLlamH:\.< I ow 1V,,~'c 1.",'cls :md Jligh Literocy 161
G Jg Centre 01 Vier""", Ship Rcs~,n~h & Design 161
G ,'l FlLlU,~PI~Ll""d [>:~",.lc~L- .• :' SubsiJlill}' 162
6.40 l'lLlur~ PlaLl of \, lelnam ~hipbll ildel 162
641 Cond"dinz l,clL],,,k for VLellH,mSlllpbmlJmg 163

CHAPTER 7 COST F.\'AU,;.\ I 10:\ .v..'l) FIn L'IU: PREI)ICTJOI' OF

BAj';CL\DESIJI SIJII'IlLiILllli\G IG7
7.1 F\'~llI:l1Joli 01 lubom p]()llltc("ily fOl Il"nglade,hi shipY"l'ds
7, 1,1 Labor m"',l-lwLlI' 11,8
7.1 ,2 ,\1"n-hom pc]' cumpcnsalcd gw,,, lann"g" 169
7.1 3 M "n-hour ill](:pwd LlCIL \ ity of loc,,1 Shipyards 17 j
7.2 Cost An" Iv,,, of lJ,,"glalbhi Shiphui kling 177
7.2.1 (,em'] al Iksc] iplion lmll) :1S~l1lpl" Export shIp 177
72.2 Fill"nci(]l dcductWLl 179
7 J hl\L1r~ofB<m.~ladc,hi ~hiphuilditlg 180
-".\, I Conti iil"l iOll"I Shipbll ildmg 111Relllitl"nce Eaming I SO
7:J 2 Ik\'L'''L1~ Liming 'I rend of lJangladeshi Shipyard 180
7 ,J ,J Fl'rc",LSl 0 I'(, lob" 1~hiph" iIcting in Gross T onllng~s 181
7,J 4 l.orc,a;1 01 Rlflgbd"shi Shipbuilding 111GT 183
7 J 5 1.000e"",,1nl BJngbdc,hi Shipbuilding in l{evenue 1M

ClL\PTER 8 STRE~GTIl \\'I.:,\](:\TSS Ol'I'ORTUi'"ITY TlIREA"J" (SWOT)

/lI'ALYSISOF 1l/l;\(;LM)lCSlII
SIlll'llUlLlH;"lG 185
S I Slrcllg,(h ISG
~2 \Vcak,,~o''-'' 187
8.3 OpporillllillCS I'll
g4 rhre~l' 192

CllA}' I"ERl) Fli\li\GS Ai.'\'nlU:CO~I~lEi\nATIO]\'S 194

~ I !'illdillP 19;
9 2 l<CCO<lJlllcLldal]on, 1%

REJiF:RE;\CES 201

ANNEXURE 210
Annex"A
Qllestionnailc F" Employc~"'Wo,h,. orToud Shipy"rd for Job Analysis 211
Annn-ll
QueslioJlllair~ for Employee/Workcr "IT",:"I ShLpY"T(1for l'erfOlTI1~nCeAnalysis 215
Annex_C

;\Ll
 .". ,- ...., ...
Q\lestionnaire for Local Shipyard Owner I'lr r~rlOTIllalleeAIl"lysis 218
Annex-D
Questionnaire fOl"Ship Consultant ofSllip Design or Building or Repair firms!
Yards for rnfurman~~ ALlal]';" 223
Annex-E
Qu~stionnai re for Ship SureTviSOrOrGlnwnl "cnl 01 ~eial or Ae~demician or
l'xpert or Stnke-holder for Local Shipbu ilding I:\'lllL1~llioll 227
Annex-I'
QJ,;~stionn••ire foJ' Foreig~ Ship Buyer IQrI3angladesh Shipb\lilding Potential
Analysi<; 230
Annex-G
Local Shipyard Data Collection and Fv"luali"n Form 233
Anllex-I1
Ships under r>lel'canli I" M"ri n~ Deparlment {r>I\ ID) 141
Annc~_l
Regi:,t"r~d Sh ipy"rds, Shipoui Idef' "nd 1\.10 I'ineWmk<hops of Bangladesh" ilh
[heiT<:"l~gorie, (under Department of Sh,pping) 250
Annn-J
Consol idate List 01 13all\'bdc,h i ~hip)'ard, \\ ilh Important Informaticn (On Ihc
ba,is of Field Survey) 256
Annn-K
Consolidate List of Ballgl"desh i Shipbui Ide,-, (On [he 13a,i.\of ridd Sur,C)) 265
AUlIex-L
Consolidate List of tile leading S,\lE', ofthc collln]'y:that CJIl In~nufact\ITe
Ship's Components 272
Annex_ J\1
List ofSbipbuilding componel1ts! services m~nLLfactLL,-e, inllangladesb 276
Annn- N
The World"s Adiv" Builders ol""l'osl-I'''Il"m~x'' Ship, (a, ,'fl007) 282
Annex" 0
Local Shipyards and Firm" Capable In Dc,ign Inland ",,,1Coasial Ship, 284

"" I
LIST OF TABLES
Table 1,1: World Shiphltilding I'lOd"cliuLLby NallOns
Table 2. I: Types of Comlllcr~", I Vc"" b llsmlly bui Id in Bangladeshi Shipyards
Table 2.2: Som~ MOSl Common 'I YI"" and siz~s of Vessel
Table 2.3, SUllllllari7,alion 01 VnriulL, Type, of Inland Vesse! ~ Registel'ed under DOS
Tabl~ 2.4' VariOllS sizes 01 lJlI""d Vc,ds (in len", o~'lcnglh) Registered lInder nos
'I able 2,5: Popul~ r Soil ",al e ,,,e 10' Sillpo I)cs ignlDrawing in Bangbdesh
Table 2,6, 1\'0, ofVarioll< Types 01 Inbml and C"aslal Vessels Build in Loe~1 Shipyard
Table 2,7: Lasl 5 year< Rc\'c" "coor Leading !\'lL1~Shipyard" of Bangladesh
Table 3, l: Types or Vc%~ls e"n k blllid in IJanglade,hi Sbipyul'ds
Table 3.2: Example of Ie" Class",' \c;;cls i",,11 by local,hip Ue"ign hmwYard,;
Table 3.3, Daily Labour CI~;'r'~c i"lhllgladcshi :',hipynrd,
Table 3.4 LabOl' Pro(1"cllvLly Ibl" "eYn,-iou, Counlries ~ro\lnd the World
Table 3,5: A,'crag:" Houri} I abo,. CO,<I,III usa, including Fringe Benefit,
Table 3,6, RallO of 1Valles in SILipbuild'ng: 10 Wages in All Manllfachlring
Table 3,7, l\lImber of' ullil, 'llld l.n'eL, of I:mploymen! in S~IEs
Table 3,8: Ave,nge llea,I-Collnl per btlbiishmelll aero" Bangladesh', lndHstric,
Table 3 ~: PClce Ill"gc "I C (1;l ()f a ''''''pic COilui Ilc'l'shL[JCXiS(lllg(2850 D\VT)
Table 3.1 0: Lis! of Shipbui Idin~ COll'pOll~Il(S"'S~"ice" call be Mallufm:lures in Bangladesh
Table 4.1: Exporl Vol"",,, & l\l1nual gr(,lI'lh of ,,'ew Shipbuilding according to ITC
Table 4.2' World Ctubon Slcel'l '-,ll1l,'Cli(lliPricc, USS/Melric Ton
Table 4,3: Exporl Q,,,, IJIy Vc'sd uI,de,- Ord", LllB",l~bdesh Shipyards
Table 4.4: LISI of IVorld l'o['''lli;, I ,md Compelili,'c Shipbuilding 1\alion, Shipyard
Table 4 5 ]{elali\'c Labulll Rale Diflc,-cl\t ShipbLLilding NUllOns around the World
lable (, I' PredictIOn rOT,1111'COlllp1cli0'.; ill 2015
Table 6,2: Imli,,', ShIpbuilding l"l,""'l>lJll r"cl,
Table 6.3: Major Shipbuilding phyclS LLllndi"
Tablc 6.4: OrdeJl100k POSlIIO" orCSI ." on -' I ~brl)8
Table 6.5: Shipbuilding Compar];OLl bcJ\\'ccn India :lml Other GWtl1 (in 2007)
Table oJ,: Shipbuilding: Oulplll o~'\'ic:n,m II, ",illwn CGT and Comparison
Table 7.1: Compensated G, 0" TOIlLlJgCFaclor (cec iT)
Table 7,2, Comp,e,,,ioll hCl\''('~n P'Odu"li"ir;; "leasures
Table 7,3: Dald for Calc" blioll or ~LLl1110m for Sleel for Selected nangbddli Shipyal'ds
Table 7.4: I'roducti, ity \1 el, i(' for So:l~ctcd Rmgbdeshi Sh ipyards
Table 7,5: Dai Iy "nd Hourly Labour C h", gc itl n""gl~deshl Shlpynrds
Table 7,6: Shipbuilding I'roducJL\ il" '"f Di I'ie,~n[ Silipbuild LllgNa(ions around Wodd , ',
(
nble 7.7: H.dali,'c Loho",. 1("le Pirrclcnl Shiphl"lrting ~:"tiorrs around lhe World
Table 7.8, Co,,( of S""'pic Export Qual ity Co, "bill" C"rgo Ship M"nllfa~(llf~d IOCHlly
Table 7.9, Prohahle CO,>Ior" Same SOlnl'ic ,v1JnLLhtlUr~d b} lndi,m Shipynrd
Table 7.10, ,\ vera~e Y'Il'ly R,'VCLll'C/InCOIll" 0 I'Rli LgIJtlc>hi Shipbuilding
Table 7,11 "leH:han( Ship (omplotinn b,' Plin~lplc 1988-2003

""'
LIST OF FIGURES
Fig 2,1: Variou; Types of lnlJnd V"""I, Ilcgisklcd \ltldcr DOS shown in pie chart
fig 2.2: Some l'rimiliH Shiph"ildill~ i\tll"1l1~,;Ll Ln~al Slnpyards
Fig 2.3: Somc Modcrn Shipun Lldlllg Acti, Ltie, in bPOlt Oricntcd Lncal Shipyards
Fig 3,1: Location ofShLp b,-eak p,.d J,:dustLV iLLCh"rt
Fig 3 ,2' Average 1Jourl I' I abO<'(""'" 111Cur'-,'LlILiSt). lLlduding fringe Benefit,
Fig 3 3: H oudy L"hot' 1m'" rULloc" I ,,"J im", n.,tillLlal ,h iphn iIdmg In Bangladesh
fig 3.4: Comp"Iison of hOllll} I,ah", J "',, 101di l((orcnt Shipbuilding Nations
Fig 3,). Few Ship." Cotnl'QnCnE c,1alluli,ctllled by Local Shipyards ~l\d Companit'
Fig 4.1: Ycal-wisc Demand oC Shi p.' j'nLlIl"rC i1\\Vorld Markcl. (2002- 2007)
pig 4.2: Y~aHy"e Sea-borne ClIW' 1",,L""I lJl \V"dd M,,,kct, (2002- 2007)
FIg 4.3: \\im Id I\cw Shipb"ilcltLL);( ,,,,it act by \'olllnL"" in \'e,scls, 2003- 2008
Fig 4.4: World New ShlpbllLld mg ( '0111net hy V,)11l11lesin DWT, 2003- 2008
Fig 4, 5: Global New Sh iphui Idinl' ('Ollil act by COlLlllryill DWT, 200E
Fig 4 (" Global New ShLpuullding Com",ct by C<",ntry ill 1\0 ot Vc%eL 2008
Fig 4,7: Clark Sea Index \J:',~/JhJ' icoI\'c'l'kl IVI:nkct, (WltllLn 19lJ(J- 20IlS)
Fig 4,8. Clark Conta iIler,h ip '[ itlW-ch,,, ter Rate Tilde, US'S/Day in \Vorld M~rkel
Fig 4.9: Clark A,'er~gc Fal'1liIIes ,ill raLlkel; It S.)"-!)"}'in \V<>rIdMarkct
Fig 4.10: Clnrk 'V cightcd A \'l'l age bJ n i"l's all Bnnkcr, USS/D"y 111IVorld Market
fig 4.11: Clark l\\ erage .""c'" S[\ipb"ildlllg Pri,,", USS-'D\VT III \Vorld Market
fig 4.12: Scrapping Ship Pl ico I, cnd,; lJSS 'To~ in Indian Sub-continent Markct
Fig 4.13' \'os,e1 Ordcr (hw L'cW (ll U ~ [mkc! and Posicion of H:mglndcsh)
I.ig 4, I4: Shipbu ild il1g (' ontmct Com:)",-i"",
FIg 4, I 5, Gmphical I're;CIl1J: io<>0 I Olde, b, 'ok by Shipy"rd,
Flg4 16' Q,aphical Pl'c,clltatiu" or [kli,'"", D"tc, for ~hip in Order book
Fig4,17: World Shipbuilding [)emand ,-\Iw,"ys Incleas~s
FIg 5, I, (,o\'cml11cnl Aline"t;on '[ IC%I 01 1\ U], I", Diff~r"nt )vJood ofT, ansport5
Fig 5.2' Gove, Ilmen! A lIoeal ;l)L;01 l\l!l' t()r Uiftc'cnl Mood of T l'Onsport Hl 2008-09
Fig 5.2: Shipb"ildlll); Mlllkcl ['alieLl due to I,~ccssion
Fig 6.1: Nagnsoki KaY:'Jl and K011\"gi Sh;pya,.d, in J~p~n
Fig 6.2: Hyundal He"' Y tmill,tries alld n,,"\\ 00 Shipy~ ,ds ill South Korea
fig 6.3: T rcnd for ",mid sh ii' COtnpIe'l;011I98S-2003 "nd Prediction for 20 I5
fIg 6.4: Trend of ,hip CO"'I'[cl;OLlIII l-,hmH [9<)J-2()[)3
fig 6,5, 'J rend of ,hip cOlllpiclioLl in ehllJa [<)93"20t 5
F,g6,6' Ile"vy Floating nock, ,,"d IJr~ Decks ofCh;na
Fig 6 7' Bird's cy~ V1CW01 d,y doc;: :'Cti"ilic, olTochin Sillpyards
Fig 6~' B"d', cyc V1CWorShipb"i[d;ng aCli\'il;cS ot ABG Shipyards
Fig (, <),JJY"nrta 1V"'llshiJl Sh,PY'" din ViC""""
rig 6 10: R & n t\~t;\ll1~, "net il;' (l\liIH" ;L,Glob,,1 Shipb"ilding
fig 7 I' l-/o,,,I) L,buur (k,,'>,~ (in 11~1)) I(tI (, I",s SlllP LIIB"ngladeshi Shipyards
Fig 7 2: Variom A\'c,."£,, Irollrh [,,,bour Ck"i-\c, (ill USD) to' Class nndlnland Ve,scl
Fig 7.3: A\ cragc 110",.1y I,,'h"," ( 'n"r>,,'s 1m ])Ji tcrem Shipbu,ldin(t Nations
Fig 7.4: Shipl)]" hi; 11);PL'Ol;"ell \ it:, 01'd it1C'rc'Ll'COLIIIIflC<al'()L1
[1(1the world
FIg 7.5: 1<cloti,'c I-"bo",. ral" 10'-Ji ftCl~1l1('ollnt l;cs aroLLndthc world
Fig 7.6: 11"e~k(h)Wll of (''''I 0 ( a San, J1Ie hport Q"allty Col11blncd Cargo Shir
Fig 7,7: Pncenwgc of Loc,,1 and tnrl'lgn COnllLblllioLlof ('o,t of a Sample Export SJnp
Fig 7.8: Yearly Remittance h •."ill); h) BaLlglad~,h; Emplo}ee"
flg 7.9: 'I rend of \Va' Id Ship ('o"'pklioLl I:J~~-2{)()3
FIg 7. lO' Fo,"c" ,lOt Glob" I ShiP d~LWllld211{)')- 20 I5
Fig 7.1 I Foreca.\t or Ilanl'l,hl<o,Il; illLl'h\llld,n~ C"pacity and Global Dem"nd
FJg 7, 12 Forecast or Hc,""nLL.-0 I lkll Lgladl',h i Shipl1u ild iIlg
NOTATION AND SViYjBOLS
ACF Annual C"sI111,,\\' ,\Il:II,',i,
ASSL Ann,""],, Shlpyard "m! Shl""\Y Lld
AHTSV Anchor J Iandl iIlg ru~'.S"l'ply V~s,cl
AOJS(~I) AS\;SI:1Tl1Ch ICI 01 Na \ "I Sla rr (l\l,'lerJal)
AC:'.'S{P) A,,;slanl (h,cr o!"N" '."I ~ lalT (I'c, ~nnl1e1)
AD Afler Christ
BC Il~IQl'c Clmsl
BSC Bm'gladesh Sh iI'I':"~ Corp(),-arion
BMA Bangladesh l\l",illC Ac:,dcmy
BNA Bangladesh N""al Academy
BCY Barge Carry;n2 \ co,'S,,1
BMRE Balancing ;VloJ~'"I%,n~ I(ch"bililallon "nd Expansion
BI\VTC B"ngladesil Inlond \\"J(L'j' TI'''''P')['[ C ,"por:tllOn
BIWTA B"u,',h,bh Inknd \\,'Wl TJ"nst'ori Aull10nty
BITSS Ban~lJd~"h Inwg,"I<:,l T,,'"sj1of1 Sludy
BLS Ilurc"" otLau'H S:"llSlic,
BTMS Bangbd~sh -I,,, n<]1()I-1 i\ Inrkl;n£ System
BWDB 1J""g.larl~,1l W"le, D"'.'C'lop"'CLLI13o,,,,1
BUET 1J0IlgladcslL Um ','Cl,,;(Y0 ('fn;mC'cL"ing and lechnology
BN B:lllgbdco,h N:L'.j
BHP B",k" 1-10'0" 1',,1","
IJ & 1.1' Br,lch and L'L>cl'L"lJdUellOl1 Sehe'llle
B B,c"ulh o!"lhe' Ship
BAIRA Banp'laclc,h ,\,",,'''''1 ie,:> or Illlc"",I'OLW1 Recru;l;ng Agency
CDOl Cllill~gOllg Dn D,lCk L';l1llcd
CPA ClLilI"gong Por! AUlhom)'
essc Ch,n" Slale Sh;pbLlLldill,~COl])QlJlinn
CSIC China Shiph"llcl",<, l"dllSIL"' Corporalion
CANSI eh ina /15,"(' UI1101l d'""lLOll"I ShlpbmlJing InJ"slry
CS'lIl'W C (HlLtll'»"!Co or Selence Te'CImo log)' & Indm lry ror NHlionai De!"ense
CGT CUmpe'N\lCd (; I0" -IOl1l1.lge
CeGT Cnml'ensal;Oll li'(;le'r
COMTIZ11,DI, Com""",,,, """ -Im,k
eSYL Ch;llagong %il' Y""llld
CSL C()ChlLlShir)-,,,<l r id
CSERC Ch;na Shirl""I"lll)' h_lJl1()l1lL~' I,c,"",ch Center
CNS I he Chi,,1 0111", ,\:,,,,,.1 SIJIT
C, l"lh'ck nw I-I,,,,, '1\1 n I' ,hl]1
Cm,e I'cn lI,ill'()I1
CO, CarhOIl rJ'O_,,<iC
elL )"1,'lIlanc
DOS Ikl"lrlLHcnl c 1-SllIPI'IL'~
nWT l)~ad W~i!'I,1 Tnllll"~~
DEW l)n~kyat'd ""d 1:,,~illC"lLng Work Ltd
DDE\!'! Dink" DOCKjd'cl & 1'L1glLl~n;ngWorks LId
OSCSC n,lcllSe S~n icc ('rll11lmlllGand Slalf College
DO rJh:,b l)o"k-,,,rJ
D Ikl'lh uribe Snip
d DI'''LLgILlor lhe Ship
EPIWTA l'"k;stll' IIll"lld W" In T"lLl>porl Authorily

XVl
 -.~ #.... _.,.. •••••••• --
EPIDC 1'a,1 I'"kisln" I"tlLL,' Ii,L; Ik""lopL11~nt Corporation
EPSC [~sll'"k1'l"" Sh'pl';ll~ ClJl'j)Ol"llion
E&P Explor"tion aLl<lI',nILlc!lon
EC ElIl0l'can COll1Ll1;>SLOLl
EPB EXPQlt I'rocessiLlg BlLL"""LL
EEC Ellropean E(oll(lI1,i" C~l11L1l;lle~
FPSO F10allllg l'roe'L1C1JOnSlc'''L,'O oml 0 lIi().LdL~g
Fl:lCCl FedoL "l,OLLoJ D"":;1a,hh Ch:rmbc,-, LlITommClce 8:. Industr;es
CCCI Cililbgon!,- Cllamtm > "f I -<lllllll.:rcc 8:. Ind"st,ie"
FSO Flootmg SI01,lg" ,l11'1{: I'll,'.,dlll?,
FSPO 1;loalill~j S''''''~;l- I''''e;.;«i HI"nd 0 l'I,,,"dmg
FDI FMOLgL\ DILe,t 111\e"Ill",":
FAn Fmclure ApI'C" lJ I\e~ "1",,LIl8i~ioll T ~mpc[ ~tll rc
FECCI I-ccieml of 1J1Isin~" COlllllle'l'Ce ,,,,d In"esllll~nl
FBTI f(\l'cir;n BlL,i""" '1IaiLl;,-,g ImtLllltc
Gol GO\CllLl"Cl1'.olln,li"
DC G",-man",,;:,,' IJoy,]
GT Clros, TO"'l<Ll'~
GM (,em,,-,,I,,l,,,,,,l''''
GDP C;lOS, l)"IllCqil' I'l"c!L1,
G'lP Gros, Nali,';'"II'rod"'l
HRD H tlllllLll Rrso""C'c j ;~\''-'l"pmcLlI
HIS High 'lc'L1"k ::>Iccl
HHI I-Iy""oai Ilea, y Incill,I,-,
IIVS Hy"ml:ii Vina,hin ."h;~\"LL"(1COI1l~"I1Y
!BBL I,lami Ban\.. ]3,llli.\hlc',h 1.10
ICD Inlanrl COLHJillc,-lkpOI
IW r Inland W"!eL -I '--'''''lOr!
ISO IntcmCl lJOI1<1 I SI"'I<1,,,, I, I), ganieal\On
m IIl!crIl:ltioLl:li I ,-,,,,,,,,,,t \'iurK<" I "cic'"t;on
lltlt ILltel I\a I Rille or 1(~'lIl"1l
1\10 !n[C","tiQllOI ,\1", II", ,c'OL,-:lIuzatLon
ILO In[CIT"J1;("d I .Lh'''''''P"I,"ILOn
He Intem"t;ona I 'I ""leo CGIII[,C
J.\CS 1l1leJnotlnll.J1 A"""''''I('ll "I'( la"'~""LOIl SClCL~[Y
IMS lr)[c'G,aTcd ,\1.l'l:L~~ml'lll ~YSklll
IMF lntc"-[Mtional ~I('nc'l'''\ r'.Ind
ISS.'\. lnl<lLld SiLip S'Li"I)' ,dm;n;,lmllon
JOB Japan DeVf,IG~rT'.ant R"m~
IDV I,westmcnl alld i),'vd"I'Il](;lIt B11\~ orVietnmn
lltlZ I"lcl'1l~1 Rate ofRc:Llrll
GZ Rip,ht;,,!,- Arm ill ~1"l(;l
GM DiglJnce bel\\"'clllh~ c,'nllG 01 gravily "nd lhe m~t~centre
Koshipa KQ",;m SiliplJuildcr's !,~;soGla(ion
KSI'L K''''ll''pl\Ll11 %ipy",d II":!) Ltd
KBSL Kh"" Hroll ,,'I' S'''I: :H,iLl i"1'. Ltd
KG Distance be'nct" [1lc ",,"t,-e Of.?"'Vi!)' and th~ Keel
K.'1 rli,ULlCC'hetne"n \I;e 1(,"1 ,md I;>'.' ~1~l1cenlr(;
KW Kilo, ,\'all
KM Kiln ~I'."",
KSY ](lm1"" Sh'l';",d
LPG l.iqllcl:"i Ilg l'etL ,,1<:\111\( ,;IS
LSC 1 '''g'' C'lli,c Ship'
LC L~lkr of Credit
LCM InwrC:l1~o ~1{)l1ili1y
Lo Lo Lil'(oll.l,fl()IT
Lac On,; Icn(]' mill;oll
Lee Length bel" ~cn pc I pend icui"s of the Ship
Lo, LCIl2,lh mel ,,11 "("Ihe Ship
LWL Length uC1""""
WOller I.Lnc,
Ud l.il1l1lecl
LC kit,,, olTredil
MMD ,\lel~HL1lLk )\d" Iinl' Ilop" I"IlneLlI
MH ~.JallI-j"",
MD )\bll"l'i"3 IJ;Ln'lur
MHs I\lCILl-bnu', :," .':('cl '.I'",-k
,,11',.\ \1I)11~;IJ1''''I,,\1I1],or;:,
MOS "-iLni,lI Y Q I' ~hi]1l,in"
"lARPOL M"'-;Ll" Poll"l;oll
NDT 1'",; l)o'('LL"''''<: TC<l
NGO r\on C()\'~mLLlc]llO,':..'",,;?al;""
NBR l\"t;"""lll"",d oj' I,C\'Cl"'~

NP" i\'cll'L"S~LlI \'"ILLC

NMI ""Ii,mai M"lLiI'"'' i'LolilLlW

"
NESL
Vino,bin
Nipplll K"',I' I(y"k."
<"II"10'01' S, ShipO'~rd Id
'!'dlli I'LL~LnC"'lL1g
\, 'Etnm" Shl]' h,"1ci i1\1'.[ndu ,try C rOLLp
QMS Qual1l) l\1mwp;l\\cm S)'_,tem
POL ['ctmlelll11 OLII."l)l'lcanl
PSV Plat!o,-m Sup:,I:: Vc,sd
R&D R","",-cn ",,,II)~\c'il'[1r.'"nL
rIDe I'akt>lau Ind',I,!, i" Ii)" \ ~'I()pll1~L11
( OrpQrJllOn
PPM P~I'lOI'Ll' .\-l1lhol;
PJ'M RevolutioL1 pc, ,\'1":"1"
Rep R~p'-">Clll'Hi\c
RMG Ikady' ""deo (,.tt meLll
ROK EepLLbllc o[ [(OlCU
SWOT Sir"'n~:~h Wl'I "~,, 1),'1"" :lInily ""d '11""at mWT,\
SAl Ship)- ,,,,,I., ".",'cial ,,)11()I' lndw
SME Sm,,[l & ",,'diLL'"
'Ik T"k::
TEU l'WCLl'y-ii""loL[1I1\:,b" l;llit
SHE s"rcl\'lk,,1111 ""J I ll\''''''L1\\cm
SMIvI ShipPLllg ,\lm-kd /-.Io(kl
0/-1&5 ()ceLlp"I""",l I k,,;;h '1m' S:ltety
OSVs ()lhlwl~ Suprl" \'l'''~1:,
OECD () 1~'alli,,, Iion l'lI- I:"I'Ll()lll Li-CO'''pcrallon ~nd Department
QA Q,,,,lily f\NLL.,nc': ~d,C"'"
SOLAS. Saki, "fill'c "L ~.:,'
SAl Si,;p-"., I'd, ,\ ",'ll' ',Li,"" ,,:- 111<1,,,
Suczmnx 1 ,llVC I "nlcc,- """ lL-a",;1 \h~ Sun C",,"lli,lly I"de", "round 150000 D\VT
PaIl~max J\ja,inlLLL11 32 2~1 \I Idth ,b,p CiOOOO DWT) can traLls;t the Panama C"nal
Afmma;.: Stand.nd d~,;v""t;(\ll 0 I '''H' lief crude ui] T aLlker, typ;C" lIy 115000 DWT

X\'llL
 •..,..- -"--"'"
(!\Iia 111~"n'\111cli,,"n hc;gl1! Rmc AssociatIOn)
Handl'max Typic"ll'm<i", It,lI"'" helw"~n 35000 and 45000 OWT
Capesizc TOlJ kng" T""kcr to tran.,it the P"nama and rou!e around Cape Horn; typically
aJollnd ]7()()no OWT
Post-panoma~ Too largL' to IIamJl Ihe Panama Canal. S;z~ around 5500- 8000 TEU,
Feeder Bclow p"llalll'" ,i/c \'e"cl: ('Ill.,.,..JCw h\lJldr~d TEU
RoRo I{oli-()ll-Rn 11-<11'1"-I" ""h Ilg Calgo OJ]wheeled \'ehiclcs or trailer.,
Fen) "I\,llhl'iHtLL'g 1',',SC'I:gC:I.,:e"d oll<:" ,,~h;cln 111add; (lOro. cmisc, l'at~marans)
Chemical T""ko l\round 250'11, [)W'I ""d cllnl' lugher \"Iue chemic~l (a"id, polymer)
LPG Tanker A, mmd ?';0(1(11)\\,']" ""J ell1Tl'liquefied propane Or butane lLtld~rprcSSllfd
LNG Tonhl' L1qudied N" IIIr.LI\;,1,' (II1dhJJlc) lS carried alOulld -I GO"C temperature
NOx Ni(L'Og~1l(hide',
KM KilQ IVlclc-r
DPTC Dcck P,,, o",,"ci 'I J"in; n.~CelltCf
SAARC So"ti. l\'''LLl ;1',OC i" I,Oll I(lf R"glOn" I coopeJ ~tion
USS ljSt\ Doll",
voe Volal;1e OJ;,,,,,,, (Ol1l]1""lld
\VMS Wc.'''']II ,\iall';c Shir;'""l ttll
LDCs Ln"t De'ei,):, ('''" lit"",
MSC l\laritimc :""1('1/ (n",mtllee
RFR Re'l"ir,;d rj(:L~ht 1"'1"
PV PLe"clll \ "ILI'_
R, lell]'"C
ROR E"IC 01 H,'I"",
OBO Oil"HlIl~/O" ("",;",,'
OCI. 0\ "['<C"" (:"",,],,1-,'[" I.leI
OPEC O'-,>LI1;""I]o" "I' I'ell olell'" E.Xpc"liJ]gCOlllltrte,
OH&S OceLLI'''IJom,I II"" 11'1"1\c1S" Id)
PNCT l'""am" Canal NC1 TOilS
SC"T Sm', Lmill '-,c' Tun,
SOR Spec';Ji ;Ila\\'ill~ I{iglll
SOE Sta[L' O,I'll"d ""le"I" i.,",
SMM SlllppLL1gM"rk'-'l ~'[()d"1
SSTI Slllpb",IJillg ~,i",,~'" ,,"d I ecllilology InslL[jJtc "I"Vana,hm
TEU 'I lI'l'lIty icel 1"I"t""lcl\l [jlllt
USA 1]'"Il'd SI,llc> oj ,I""~['I("
UK \J"l\~J l-:ILlgclo",
ULCC Uill" La, go (''-L1d~C :irl'ic:> (arouLld 4(1)000 OWT)
UNCLOS Ulllld ""lLI"" { nm ,-nILoll1('"b" r the .~("'
(J

U"CT AD LJL1;ted,,',11L"'-' Cnll CCL'C'IlCC 011TmJe and De,elol'lllent

VLCC VCL'YI.",~' c Cr"d,,' C:1ILic'" (:"'0" Llel31)0000 D\\'T)
Vinashin \'icll1:\l1\ SI':I,hll:ld,,:~ Illch"I,') C(Jrpo",tion
V;naoffshore ViLld,I1," OIUHne 1,,,rll'lr'I~S
VCF \'ny"g,; ('",hll(>I' ,1,,,,1)""
\VMS W (',tt,-" ,\],,, IIh' ,;h '1'\'" Id
W, l\ct ,'.e,,1 ",,,i,'lll ill (OllC'
\VB \Vmlcl"a,,~
WWil VVorlj l.'V~II[

AI\
 ••••
..
, .• ••••
.,'
" '"
..
••••••• • •••
•••••••••••••••••

..........
•••••••••••••••••
".
"
•••• ..... ............... ..' •••
•

INTRODUCTION, OBJECTIVE,
RATIONALE, METHODOLOGY,
OUTCOME & STRUCTURE
 Evaluation of the Potential, Prospect and Challenge of
Bangladeshi Shipbuilding in Light of Global Co " . ~

1".2]',
~,d.Q.
1.1 (;[';NF.H,.\LJ;'olTRODIJCTION ~ ~_ ~:'1:.:"l!jP
.._/ <
Ll,l T"o-thi,d of world's population lives near (he '"~CQa'(,More th~n nin, '-""" "Eft. ~~
~ 'J
planets living and non-living re,()lIT~~sare found within a few hundred kilometers of l~

coasts. "lVitholLl
sea. life as it is known today could not eXIst(ll. Old civilization ~nd human
ll\ing ha, st~tted at the bank of rivers, Boat is one of the pnmi(,,€ inventiom by human
being Tr~ditionall)', boatl.,hip ISused mainly for the purpose of lmnspona(ion of human and
gouds. i\fler that, boat/ship i, used also for the purpose of maritime warfare. At present day
contcst, ,ea-going merchant ships provIde lhe main transport facilny throughout the 'World
On the other hand sea-going warships are main platforms for stlong marihm~ nation to
influence e,eni, on land, beyond their borders (2), At lhe same time, small iiltoral nations
also require warships [or safeguarding their territorial integrily, Sea and of6,horc resource,
and tmde. Agam, coastal and I'iver v€"els are important mode o[ tran,portation for a cOlmtry
like Banglad~sh, v,hich is lull ofrivel'S and wakf'W'ays,Water transpom being the cheapest
mode of lransportation play vital roles in the field of transportation in Bangladesh, As a
result ,hip building is an lmponant industry for economicat developmenl of Bangladesh.

1.1.2 Bangladesh i, a maritime nation with 9,000 sq Jan of territorial waters, nO-km long
coa,tline and 200(J()()sq km of Exclusive Economic Zone (EEZ) in thc sea. II lie, at the apex
of the Ray of Bengal and h., 200 of rivers that come down Irom th~ surrounding countrics
and tlow thwugh it n,ere is unique and ntosaic bond~ge bemeen rivcrs ~ml people of thIs
count",,',The livelihood ofthc people i, mostly dcpcnding on rivers, BOalSami ships are very
common to gcn~ral rna" Banglade,h ha.' an anCIent history of shipbuildmg industries It
h., one of the oldest tmditions m lerm, of naval carpentry and it also has thc oldest fleet., in
th~ world (3). Chiltagong was th~ centre of building ocean-going ,"essel, during the middle
of lhe 15'" century. DlL[ing the Mughal period, ChiUagong was an important centre of
shlpbuilding (4), Dockyard & Engineering Works (DEW) Ltd wa., estahlished in 1926 10
cater lhe need for services in the .,hipbuilding and repair .,ectOlS in this rcglOn. After
Colonial era. in Pnkistan period, Khull1a Shipyard (KSY) Ltd was established in 1954 and
113'; started iI, operation ,ince 1957, After the indep~ndence of Bangladesh, th~ only

2
 ¥, .'~

significant development in public sector was the ClJirtagong Dry Do~k Limited (COOL).
enOL started its ship-repairing activities for OCeangoing ships since 1985 (5),

1.1.3 Bangladesh is a maritime nation with a considerable area of sea, abundance with
living and non-living resources, There arc mOre th"n 200 rivcl'S nnd cnnnel, all amund thc
cOLintry,with a total length of about 22155 km (from which 24000 km are navl;;~b1e),which
occupy about II % of total area of the cQuntry and flow about 1400 billion ~ubic mete,s of
water annual1y (6). About 50 percent of the land area and three fourths of the economic
activities in the country are located within a distance of 10 km from the nearest navigable
waterways, 'nle demographic fealures shows that the 'centre of gravity' of population,
agllculture, industry and cummerce is based in Dhaka, Naraya"gal1g, Chittagong, Kh!lll1a,
Bari"hal al'ca and thesc are well connccted by major n wr" its hibutaries and canal systems,
The topographic, sol! and climatic ~onditions m Bangladesh are such lhat costs of building
and maintenance of roads and ,ailways are very high compared to thosc of Inland Water
Tmnspmt (IWT) Water tran'port is also a stable and reliahle means of transport for the
~ountl)' in times of natural calamities like flood. cyclone ete. So n ,ers al1dwater transports
playa ,ital role for economical and commercial activitics in Bangladesh. Sea i, the only link
of Bangladesh to the countries of the outside world with the exception of lttdia and
My~nmal. 90% of our total export and import travel by Sea (7) As per the gea-political
req"irement, national survival and international tradc, BangJadesh must have viable Navy (if
we consider the reecnt well kno'WTIensis on m~ntime boundary delimiled with My~nmar and
India) and considerable merchant shlpping flect to transportation of food grains, machinery,
I'~troleum. ~tc. So, shipbuilding industries are thc acutc requirement to support lhe naval
and merchant shipping fleet both in peace and m cnsi, time, tf we eon,ider the maritime
history ofthc nation, volume of sea borne commerce, national interest, area of inland waters,
itllan~ transportation ofpa,"enger attd good" cost-effecliveness and enviwmnent aspect of
mode of transportation, shipbuilding industry should have progressed widely in llangladush,
Unfortunately thaI has not happened after Ourindependenee.

I 1.4 Private shipbuilding mdustry of Bangladesh consisting of few dozens of shipyards i,

mainly constnlcling steel ships that arc suitable for inland ~nd coastat water. They can
design and fabricate ships up to 3500 DWT to fulflll the demand of local market (8). The
medium and small private inland shipyards are operating under individual management, 'With
minor supervision of government. 'Illey employ huge number of skilled and semi-skilled
•
;
 labor. Most of the private shipyards manufacture ill]and/eoaslal vessels by USillg plate,
engine and machinery of old merchant ship, which collect from Rhatiary ship break-yards,
Bhatia!)' ship breaking industry are the prime source ofraw material including plate, frame,
shffener, longiludinal, pipe, old ertgine, generator, pumps, compressor, and all other ship's
componenl, for local shipyards. But sinking of some inland/eQ"staI vc"e]s and considerable
h\~:n~nc~0uallY, confuse the shipbuilding capabilities of pnvate shipyards, On lhe other
hand. the shrinkage of waterways and shmtage of navigable waler, P\lt our inland
shipbuilding ind",try is in danger (9). Private shipyards are lhe cheapest mode of inland ship
man\lfaetllring and repairing industry in Bangladesh, On the other hand, three public
,hipy~rd, in Ilanglade,h arc capable of constructing good q\lality small and medium ships to
fulfill the requirement of local demand.

1.1,5 At ]llescn( some pri,'ate shipyards already gam internalional standard and are
manufacturing class ves~cls for imcrn~lional market. Recently fc'Wof these yards specially
Ananda Shlpya,d. Dhaka and Western M~rine Shipyard, Chittagong have attained the
capabilily to manufacture the ships of 10,000 DWT (Dead Wcighl Tonnage). The,e reputed
local shipyards of Bangladesh are receiving order; from the foreign ship buyers since 2000.
The foeus of shipbuildmg in Bangladesh came in media On April last ye~r when Ananda
Shipyatd SIgned deals worth around USSJOOmillion wilh lwo German shipping companies
to build eight yesscls with eaeh capacity for 325 TEU, by June 2010. On 15 M~y 2008,
A,nandaShipyard handed O\'er a ship 0[2850 DWT 10a Danish company, which 'Wascosting
liS$ 7 million, Two leading local shipyards, .A.nandaand Weslem Marine have bagged
orders to mak~ 41 small vessels worlh aboul USS 0,6 bill'on mainl} ti-om E\lrop~an buyers,
lnclllJmg these lwo about 9 lccal shipyards are capable of making ,hips within 10000 DWT
as per international standards. Local shipbuitding expert viewed lhat, w;ll,in next few years'
BJnghd~shi ,hipbui]ding are going to occupy the recognized position in the world
shiplmiltlmg market.

1.1,6 Chitlagong Dry Dock Ltd (CDOL), a public (and only shipyard) is comparatively
tnod~m and c~uipped with effective machinery and faeilitie~ with ocean going ,hip of
docking capability 20000 OWT (IO). It has ~mple scopes 10 attract foreign inve~lments and
can ,,]so earn substanti~l amounl of foreign exchange by building and repairing new vessels
(11l. tf proper steps were taken 10solve SOmeproblems of eDOL, 11could further contribme

1
4
significantly to the national economy (l2), A separate dock fully equipped with
supplementary facilities may be set up here for the purpose of new shipbuilding (13),

1.1 7 Dockyard and Engineering \Vork Ltd (DEW), the olde,t public shipyard is providing
sel"ie~s to new shipblillding and repair ,~ctOl'S in tllis region since 1926 It's present
capability of buildmg and repairill~ ,ersmile types of ve"els uF to 5000 DWT. After
modernlzed in 1989, the yard ha, construckd some world Class Ro-Ro ferries undcr a
Dam,h aided project for BTWl C. But DEW has failed to keep its reputation and earn good
p'ot1t sinee independence, After declaring sick industry in 2002 it has stopped its activitlCs
and finally handed OWr to Bangladesh ?\'llVY on Dec 07, 2006 (14). Presently DEW is
running by B"nglade,h Navy and BMRl:c is going on, However it has well shipbuilding
capability to build quality ship for intemational standard.

1.1.8 Khulna Shipyard Ltd (KSY), another public shipyard, is about 43 years old. After
1n4 till Bangladesh Navy took over, this shipyard remained as a sick indu5try and there was
no sign of profit. But now KSY is earnlng profit. Its versatile dock facilities Can
accommodatc sixteen medium size veosel, at a time for repair or new building, Since 1957
Khulna Shipyard has built 350 ves,els and renovated/repaired more than 2300 vessel, (15).
KSY is c\lm:mly committed to the de5ign and new building of a WIde range of tugs,
wOlkboats and other 'pecialize,l and cargo wsse!> within 5000 DWT.

1.1.9 Bangladesh is the 2,d largest ship-breaking mdustry in the world. Ship breaking yards
ale the prime source of raW matelial including steel plates, pipes, engines/generators,
auxiliary machineries and other ship" compon~nts for local private shipyards About 80
percent stecl of the total domestic u,e of Bangladesh comes from this ship-breaking industry.
clhe people of this alea, has tlle pride on shipbuilding ,ince the carll' ,tage ofits civilization,.
'j he country "'13 got ll'emend"us potentialitie, in re'pect of rising trend of 'World ,hip
demand The recently fomled govemment of I:langladesh ha, declared shipbuilding a, a
priority area and i, set to declare a five-year tax holiday for the booming 1t\dustr) with the
"im of transforming the industry into a major expott earner, Establishment of Green-channel
facilitie, and financial schemes to support financing of shipbmldmg arc also being discussed
at pre,ent. To reach the asp,ration of building a strong presence III the internatIOnal
Slllpbuilding ,cene, Bangladesh still needs to develop the mdustry and be able to
manufacture expol1 quality shIps with good reputation.

5
 •• •
1.1,10 Shipbuilding is an important and stralegic industry in a number of countries.
Shipbuilding is. an attractive inciu,try for developing nations. Japan used shipbuilding
imlu,try during the 1960s-80s to rebuild its mdu,trial structure; Korea made shipbuilding a
strategic industry during the 1970" China and Vietnam ha,e been in the process of adapting
lhe models of Korea India is another trncrgmg giant and receiving :;ub,tantial onkrs. The

m;",a::~~. "f shipbuilding industry has alway' been driven by the increase;n labour cost. The
industry has moved out of Europe to the far East, s\lbscquently moved to South East Asia
and 1:> finally taking a tum towards SOUlhASlU, Expert viewed that, though shipbuilding is
capital intensive, it could generate net \'alue addition twice than that ofreadymade gannent
(RMG) industries "ithin five years' time. Bangladesh is a developing country and
previously, nation failed several umcs to take the advantages of lucratlvc opportulllties in
modem trade and COmmerCe.For this reason, our o\'erall economic de~elopment has
undonbtedly been inlemlpted time and again. So Bangladesh should be careful and vigilant
to prevcnt the repetition of,;;, h failures in this sectoT.

llll Bangladesh has a population of 140.18 million, which i, predicted to reach the
figure of 242.8 million by the year 2050. The area of the country is 147570 square kilometers
(16). The pressure on present transport sy,t~m "ill be e,'Cn mOre due to hlghcr gross
dome,tic product gro"1h, about 5 percent per year, and increasing urbani.<ation in the greater
Dhaka area Constructions of new road and rail networks have already reached a saturation
le\'e! and thereby, IWT has to play impoltant role by taking the load of a major share of
trame and freighl, IWT i, the most economical and environment friendly transportation
'y'tem which is the best sliit~d for sustainable transport nen\'ork in Bangladesh. (jl';l' per
c"pita of Bangladesh is only USS 445 per annum (17), So, flllure gr[)\\lh ",ill require a
stimulation of commercial ,alue adding activities bascd on numerous manufacturing sectors
lo gene]ate employment ami 10 reduce poverty from the country. In thi, contest, shipbuilding
indnstry IS plying a great role to elevate poverty. At present about 10,000 inland/coastal
ship, have been plying all o,er the country, which carry more than 90% of oil product, 70%
of cargo and 35% of passengers in tntal All \hose ships arc rnanllfaetured and repaired
loc"lly in Bangladc,hl Shipyards and number< of vesselo built per year"re quite many (IS).
/>'lorethan 150000 skilled, semi-skilled and unskilled worker> are employed in this labour-
intcnsive induslIy. Two milhon people are related directly or indirectly with this heavy
induslry.

6
1.2 THE RATIONALE AND llACKGROUND OF THE STUDY

1.2.1 In the past, shipbuilding industry of the ea,t enjoyed superiority. But after World
War II shipbuilding becomes a European industry in which Britain took the leadership. This
i, followed by Japun (1960s to 1980s), Japan e~tablishcd herself as number One shipbuilding
nation by manufacturing oil carrielS for the "wid (19). Then South Korea took lh~ lead.
Therefore the world shipbui!ding marL~;s mo";,',/; toward east and present global market
.,hare has been shown in Table l.t flut now rapid grD",lh in marht share is ob,er>ed in
Chma where labour COstsplaying a vitnl role (20). TIle other emerging forces are Vietnam
and Ind,a, in fact, emergence of Vietnam is largely a result of efforts by European ~ountries
to rdocat~ their shipbuilding indu,try to 10,,"lahor cost countries. India is another l'ising
gi"nt in shipbuilding industry. \\'hcr~ pnvale cnlr~preneul's start~d eslablishing Shipyards
with gnvemmcnl ,lLpport and by nOw lhe country has come 10 a leading positIOn in the
World 's ~hipbuilding countries and reeeivi ng orders of hundred., of millions of dollar,. Thus,
sh,pbUllding has shifu:d fTOmEurope to Asia, where the single mo" driving force behind
lhis phenomenon 's 10'" labour COSI(21).

Table 1.1: 'Vodd Shipbuilding l'roduetion bv 1"l1tioos in Vellr 20l}R(22)

Rank Country X 10,001} %

GT

1 Soolh Korea 1,240 50.6%

2 China 8<0 34.4%

3 Europe 140 5,7%

4 Japan 90 37%

5 Rest of world 140 5.6%

- Global output total 2,450 100.0%

1.2,2 Presently market leadel'S of wmld shipbuilding industry al'e not interested 10 b\lild
small ships of less than 25,000 DW'!, and that market is open 10 thc other shipbuildmg
nalions, Presently the average Increasing:rate of ships in tonnage is approximalely 21 million
GT per year. Considering US$ 7,620 construction co,l per GT, total global market size is
lJSS 1,600 billion. If only 1% marht share can be captured by Bangladesh, it will be worth
USS 16 billion.lfwe can grab 1% oftlle global order for only small ships market (which is
about USS 400 billion) the amollnt \'1111
be_wotth VS$ 4 billion (23) Again lraditional
market kaders of world shipbuilding induslly arc over-booked primarily for eon'W2c!io:::cf
larg~ ,hip', so the ships' buyers/entrepreneur, are in search of incisive new, suitable and
reliable market.>In 'hehmm. Banglade,h, India, lJra~il,Indonesia, etc. On the other hand, the
market of ,mail-ships and v~s,els of vari01IStypes is rcmaimng unaffected by On going
global rece"ion, Recession has caused a drop in demand for large vessels, Global giant
shiphuilders cannot capitalise on thlSnew mal'ket d~mand. as their project, will prove to he
unfeasible beca",e of the 111ghoverhead costs thcy already b~arded. Moreover.orden; for
small ship, have gone up because of the global financial cl'ish. '''gain shipbuilding history
has shown that, in the pm,l r~cession, South Korea npanded its capacity instead ofreducing
bu,iness scales like Japan.

1.2.3 Very recently f~w Bangladeshi Shipyards haw received orders from th~ foreign
ships buyers, Ananda Shipyard e)"portsher first ship to a Danish company On May 2008,
And "ilh this great evellt, Banglade,h has success!i,llyexported her first O~~angoing ship to
a high cnd mHrket like Denmark competing ",ith giant competitor like Chinese and
Vietnameseship builders. In December 2008 SIXCia" ferries and boat' including thre~in no
aluminllm catamaran passengers' vessels "ere expOlted to M07.amh;que,securing ordel's
through internat;onal tendel under ,V"rld Banle Ananda has also signed ~onlract with
Germany, Denmark and Mozamhiqu~ to b"ild more than a dozen ,hips with the value of
liS$ 300 million (24), On the other hand. few more quality shipyards like, Western Marine
and HighSpeed hm'e nlso received orders to build dozem of "hip' from Germany,
Neth~r1and.".lapan, Denmark and flllland costing approximately USS 300. It is very much
po"s;blc to attract conSIderable fOleign investment on shlpbuildmg by way of utilizing
,killed and low "'age workers. As world ,hlP ov,-nen;are sl""ly but surely entering
Bangladesh WIththis prospect, it i, expected that more qualilahve shipyards will be surfaced
in Bangladesh.

1.2.4 Shipb"ilding is a capital intensivc sector, which could gene,ate net value addition
for Bangladesh ,arne as ofrcadymade garment (RMG) industries within next few years. Thc

8
present trend or the shipbuilding boom is expected to continue for at least another fifteen
years. The opportunity that is no\\ knocking:must no! be lost due to lack of setting priority or
understandmg it, prospects, Again Bangladeshi shipbuilding is not in competitive and
international standard and also is m vulnerable st.1ge.lfthis sector gets the same facilities as
given to the RMG sc~tor, the net herdit will he much higher yield in comparison to (hMof
R'VIG.Time ISappropriate nov'; (',~layw;1!be ver:' ~ostly as such opportunitie, do not come
very often (25).

1,2,5 Bangladesh has got opportunity to emerge as a shipbuilding nation under global
standards in the recent time, as tradillOnal shipbuilding nations have shown little interests in
making small ships. Two lea,ling lo~al shipyard" Ananda and W~slern Marine ha,-c bagged
ord~r, to make over 40 ,mall \'e"els worth about SO6 billion mainly from European huyers,
Including these two. about 9 local shipyards are capable of manufacturing s11ipsabo"t
10,000 DWT as per internatIOnal 8tamlarrls, But capacity upgrades and expansions are
needed for a majority of them to compete in the global arena with other intcmati(}nal
shipbuilders, such a, Viehmm, Hrnil, and India, By 20ll, the world will need more than
10,000 vessels, mostly small to mcdmm sized. Bangladesh has the seope to emerge as an
export oriented shipbuilding nation within a decade becau,e of advantages 1ike cheap labom,
presence of 150000 skill~d and semiskilled wOlkers and industry related educational and
training institutes. A long history of maritime activity and a favorable gCOb'Taphicallocation
alao placed the countly at a favorable posilion,

1.2,6 Data and mfommtion ofBanglade<hi ,h;phuilding are very rare because most of the
Rangladeshi ,hipyards are not maintaining systematic record (except very few) and even
govemm~nt authority posse,,", ~ery limited data, As a result, people of hom~ and abroad
does Hot know the act,,"l stahl., and activities of 13angladeshi .,hipbuildmg, Some hasic
question: like, how many ,hipyards ;n nangladesh~ What is the local labollr rat~? What ;s
the pcrc~ntage of local contribution to expon quality ship manufactured by B"ngladeshi
shipyards',' was not known to rele,ant personal. Again query like: labour productivity,
relative lab"," rate, finanCIal statu" pOlential, prospect, challenge of Bangladeshi
sh;phuildmg w,,, remained in d~rk.

1,2,7 In this backdrop, researcher extremely feels that, country need, intemive 'hldy on
overall stalllS of Bangladeshi shipbuilding in light of glohal contest. Previously a research
was done in BUET (54) which covered very limIted area, This time, efforts ha,e bc~n made

9
 .•
.,•.•, -, .•••. --
with sincerity to depict the overall potentiality, problem, prospect and challenges of
Bangladeshi shipbuilding in light of actual strength and weakness. So thaI the presenl work
will help the shipyards, expert" decision makers, government authorities, business leaders,
investors, entrepreneurs, professional and interested organizations and personals from home
and abroad to get the aCluHl StHtU3and picture of shipbuilding in Bangladesh.

1.3 TH~:OBJECTIVE OF THE STUDY

1.3, I The objective of (he study is to develop an understanding of the present statlls of
Bangladeshi shipbllilding in light of global contest, the prospect and challenges ahead and
also to identify the steps necessary to overcome those challenges. The specific objectives of
the study are as tollows
a. To make a consolidate list of thc local shipyards & shipbuilders and asses,
overall shipbuilding practices in Bangladesh.
b. To eategori~" the local shipyard, in respecl of capability and ship exp",t
competency.
Ta collect data and find out the daily labour rate, labour productivity, relative
labour rale and shipbuilding eost and hence analyze the potentiality of
Banglade,hi shipyards on thal basi,.
d. To aSSe5Sthe intel'nationalshipbuilding market, strengths and weaknesses of
the pos,ible competitor, and evaluate the prospect of Bangladeshi
shipbuilding.
To assess the statlLSof existing backward linkage industries of component and
service ~uppliers for local shipbuilding ;ndu~try and a.SeSs their prospect
f To foreca<t the lilllLreoflhngladeshi shipbuilding
g. To evaluate the Bangladeshi shIpbuilding by SWOT (Strength Weakness
0p)l"'t1lnity and Threat) analysis in brief.
h. To identlfying the problems or challenges of the shipbuilding indu,try of
Bangladesh and recommend guidelines for development of BanglaJeshi
shipbuilding.

1.4 TH~;MF.THODOLO(;Y OF THE STVDY

1.4.1 11 is an explOlatory research work (26) to evaluate the potentiality, pro'pect and
challenge of Banglade,hi shipbuilding in light of global contest. n,e effort ha.' been made to
viSll rna,t of the private and publ1c shipyards around the country to narrate the shipbuilding
,
"t

10
 .,.,."-,--','
practice in Bangladesh. There were numbers of practical field visit, ,urvey and ob,enatiQn
on ground and initiative has been taken to assess the local shipbuilding actiy;ties. The effort
was made to analyze the cost, quality and productivity of shipbuilding labour in Banglade,h.
The effort was mode to analyze the world shipbuilding market and as,ess the p'o,pect of
Bang1o(ksl1, The efforl was also made to dig OlLtthe limitations and f\l1<nc challenge, 0'
local shIpbuilding; industry on the basis of estimated opportunity, The Olrategy \;",' EOtouch

each and every aspect of the scop~ of work minutely So that an overall profound
uncier,tanditlg of the subject can b~ achieved. However, the following step, of general
methodology have followed.

a. Pri mary data about the l(}cal shipbuilding practice were collected througl1
mlemcting with structured, un,tructured and open enckd que,tiOlmairl'< and
,
interviews with the shipyard-owners, ship-owner", s:,ipya,d manager~,
govemment regulating & m(}nitoring bodies, shipbuilding sup~ryi,or" ship-
sucyeyor." workers and other related personnel by VIsiting selected private
and pub] ic shipyuds around thc country.

b, Secondary data about shipbuilding tradihon and potentiality of,B,!,,:,glade.,h

and rele,'ant d~ta for few selected internalional"hipyards W~r" w1lected from
-"'
bolh external and mtcrnal SOUl'cessuch as: journals, rcporl" paper" writings,
books, electronic & print mcdia, financial organizations, related
government organizali(}n, (BIWTA, DOS, MMD, BlWTC, CPA, Ml'A,
Bangladesh Bank. EPil, NBR, Customs, etc), shipyards-owner associations,

ships-owner associations, othel' private organization". weh.itel, expcrt

opinion, history, ,tali,tics, financial record and internet sourccs.
Otller relc,ant and important data of local shipyards werc collected
through exten,ive revie", of literature, field visits, sUl"'ey, discussion and
meetings, Intcrview, werc mad" both physically and O\'er phones ",ith
relevant local and international mganiz"hons ami indi~iduals
d. Shipbuildmg process, such as shIp dcs'gn, 'led treatment, plate/section
prcparali(}n, welding quality, steel work, fabrication, outfitting work, hull
election, l~\mching etc wCru obscrvcl1to aSSeSSthc standard of work of local
shipyards.
Field sur;ey and persona] visit were made for assessment of the actual
condition of the shIpyards in tenns of their capahility and facilities including
equipment, infrastructure, manpower etc.

11
 f. Non De,truction Test (NOT) on few selected sample works (such as welding,
and treated plate) were calTied out under the guidance of ship-rurveYOT3to
examine the welding standard and quality of work of Bangladeshi shipyards,
g. Primary and secondary data about labor, labor hour and labor cost Were
collected of ,ample ships from few selected local shipyard, to as.'"'S the labor
productivity of Eanglcc"ohi shipyard;; and to evaluate the standard of local
shipymds and compare the result with other ,hipbuilding nations
h, The organizational set up, working environment, management practice,
Safety Health "nd Environmental (SHE) perspective, perfonnance and future
V1SJOrrof local shipyards Wel'e a"essed with the guidance of performance
management and international shipbuilding Practice.
1. Professional parllcip~tion was done through interaction, information,
qllestionnaire and interview. Some of the foreign buyers were
interviewed through meeting physically and over telephone,
J. The problem and prospect of local shipbUIlding industry of Bangladesh were
assessed and forecasted on the ba.,i, ohtrength and "eakness.
k, The future chal1enges of Bangladesh shiphuilding industry Were depicted
and find out way to overcome these challenges.
L Prospect of Bangladeshi shipbuilding in light of global market trend were
an~lyzed and recommend the way to grab the opportunity.
m. A brief cale study of fe" selected shipbuilding nations was cam~d out in
order to find out the re~son, for their success.
n, Foreca.'l the fulure of local ,hipbuilding in i'ght of global conl<;st.
o. A Sllength Weaknc,;s Opportunity and TIneat (SWOT) an"lysi, of
Bangladeshi shipbuilding in light of present trend, world recession and global
market demand was earned 01'1.
p. Some recommendations were given by con<;idering local shipbuildlllg
practice, present government policy, world shipbuilding boom and on going
r~ceSSlOn
1.4.2 In this conle,t, data collection fonns and questionnaires for individual and ,hipyard
evaluation form for local shipyards, whieh has been shown in Annexes (A to G), have been
designed for collection of data; and photographic records has been made. The local shipyards
<1at"indude area of COver& open space, no & standard of ,lips, jelly f"cilitie" ",e of steel
per year, annual mm over, docking system, surbce condilion, yard layout, workshop
j
12
facilities, lighting arrangement, shift system, availability of cranes, winches, trunsportation
facilities, oxygen generating equipment, handling facilities, electrical generation facilities,
sub-station workshops, warehouses, workers waiting room, canteen & showers, safety
protection device, drinking water, rest room and lavatories, first-aid facilities, hospital room,
em,'''gcn~y treatment equipment, fire fighting facilitIes, vibration & noi,e cOlln!tmleasUreS
faCIlities, communicahon facilities, fire station, accommodation & eli,.:" etc, HumfL-:
resource d~!a like no Qf naval architect, mariner, mcchamcal, civil, communication, electrical "'"
& electronic engineer. foreman, welder, cutter, painter, carpenter, fitter, shipwright, skilled
& semi-skilled worker, design & drawing reader, plotter, security personnel, doctor, ~tc were
collected. A description of the shipyards then finally came out. The mechanism of achieving
the targe( objectives consists of following:
a The res~arch wa, proceeded on the basis of pmctlcal experience, on-ground
data, field survey, and expert views,
b. The main source ofinfonnation was ground ,urvey, examination, imer',icw,
observation and practical field data from various local ,hipyards.
AJJitional source of information was collected from both local and
international media, book!l, journ~l, paper, writings, expert"views, internet,
websitcs, and other available source,
d. There were extensive comultation:; with government authorities, shipyards &
ships associations, existing and upeommg ,hipyalds, stakeholJers, ship
de,illn finns, experts, academician, national component supplie,s and
intemational ship buyers.

1.S DI:F.FlCULTY FACED DURING DATA COLLECTION AND STUDY

1.5,1 Shipbuildmg industry of Bangladesh is a huge but neglected business sector as a
"hole. Due to the present shipbuilding boom, it comes to the eyes of local media, Most of
the Bangladeshi shipyards (except very few) are located in remote a,ea. TIley are neither
keeping any systematic record nor following standard shipbuilding procedUfe, Again they
are not getting constmctive help either by the govemment or by the technically sound
people. On the other hand government monitoring authority b, very limited data and
informatIOn as ",ell a, control over the entire industry due to their shortage of manpower. As
a result, data and information of Bangladeshi shipbuilding is n()t available. Again most of tl,e
local shipyards are neither capabte nor ready to give any shipyard and shipbuilding related
data and infonnation to any intruder or newcomer, At the same time, they are not clear abo"t
 most of the technical and managerial terms and references related to Banglade,hi
shipbuilding. On the other hand the shipyard labour of Bangladesh arc living just hand to
mouth, Thcy are neither gelling minimum wages nor enjoying heallhy working environmcnt.
So they are not in happy mood to give anSwer of any questions, Moreover, it is very difficult

,/
to ,-i"it thw,e ~hipyuds frequcntly due to poor communication, Phy8ical survey and per,onal
visit was d,,::~ by the rcsearchcr/student to collect the data and find out the real numher ()J"

local shipyard., shiphuilders (or contractors), workshops and observed their shipbuilding
activities. Jt was really a hectic and challenging job for the researcher to come out with a
pleasant end, Indeed, it was really a great challenge and very high ambihon for the
researcher under the guidance of a supervisor to reach and dig out inside and find out the
aCR'alsccnario of ,hipbuilding industry,

1.6 THE om COME OF Till': STliDY

I 6.] Shipbllildlllg expert, decHion maker, government authority, business lcadcr,
stakeholder>. investor, profeS3ional and interested org"mzations and personal from home and
abroad will find necessary and valuable data and information about the aclual shipbuilding
picture, potcntwlit), problem, prospecl and future challenge of Rangladesh, TIlis study will
also be helpful for government, businessman, inve,lor. stakeholders and shipyards for theIr
future decision-making and production process_ "I1,espeCIal aim of thc sludy IS 10 help lhe
education, trade and commerce industry of Bangladesh for their future capacily building and
deci,ion-making process. Thc possiblc outeomcs of the ,tudy are as follows:
a, To depicl the scenario of Bangladeshi shipbuilding in the light of collected
data, practical observatIOn and analysis.
b To make a comparative study with traditional shipbuilding nation, to quantify
cost, quality, capability and to Identify the problem of the local shipyards.
To assess the potenlla 1, skIll, efforl and competence of Bangladeshi s11ipyard,
on the basis of the evaluated data, and analysis.
d, To evaluate the overall prospect of Bangladesh as a shipbuilding nalion in the
light of present status and world contest.
To do lhe brief SWOT analysis of Bangladeshi shipbuilding, which will help
the relevant personal (such as: ship' owner, shipyards owuer, stake holders,
go\'emmenl policy maker, foreigu buyers, bankers, inveslors, academicians,
researchers, technical & financial personnel, entrepreneurs, etc) 10 do further
study and help in decision making process.
 f. To give recommendation in the light of above mentioned assessment, analysis
and evaluation.

1.7 THE STRUCTURE OF Till<;THESIS

The lhe,is consi.,t, of nine chapters, General introduction, objectives, ration~le, methodology
and outcome al'C!-'Icsenled in fir,t ch~ptcr, Ch~pter two has ;ntroducGG~hil'h"i Iding pr"ctic~
in Bangl~dcsh and its historical evidence. Chaptet' three presents the Bangladeshi
,hipb\lllding potential and ils capability including local SMEs and backward linkage '''pp0r!
in lhis sector. Chapter four analyzes lhe glob"l shipbuilding: market ~nd identifies the
prOopcelof Bangladesh. Chapter fiye evaluates the probl~m, and challenges of Bangladeshi
shipbuilding, Chapkr six narratcs ~ briefcase 'ludy of a successful ,hipbuilding nation i,c
lndia Chaplcr ,even evahlalcs the labour productivity, relalive labour rale ~nd brief ~OSI
an"ly>!>of Bangladeshi shipbuilding, Chapter cight descrihe, in-deplh SWOT analysis of
B~ngladeshi 'hipbuiklml! Last chapter eonc!mle, with the gcneral finding in the research.
The thesis ends with SOme viable recommendation; So that Ballgl~desh can stay in
shipbuilding in the long run,

15
 .,,-. -- ..... _ .

••••••••••••••••••••
.... •• •••••
'" •••••
'" .... ". ••••• • ••• ..'.'
."
••••••••••••

••
. ••••••••••••••••••
' ....••
.'.' '" .'
'" ".
•••••• ••••••••••••• • ••• .'
.'
•,

SHIPBUILDING HISTORY AND

PRACTICE IN BANGLADESH

16
2.1
2.1.1
BRIEF GEI'\ERAL SCEl'\ARIO -
Rircrs and water transports playa vital role for economical and commercial activities
in Bangladesh. Major export and import of Bangladesh (mvel by sea Bangladesh bas viable

inland water tl'ansports fleel for transportation of passengers, fool! grains, machineries and
oil product, ck. Local shipbuilding industry is supporting the inland water /leels AI present,

thcr~ me mOle than fifty ,hipbuilding and repail'ing ya'ds (includlIlg three public "hipyarcls)
within various lo~ations of Bangladesh. Out of these shipyards, approximately 70% are
located in and around Dhaka. These yards are mainly engaged in building and repairing of
inl~nd and coastal vessels (27) Recently few of these yal'ds specially Arumda Shipyard and
Slipways L1mllCd (ASSt) (28), Dhaka and Wcsl~m Manne Shipyard (WMS) (29),

Cl1inagong hm'e attained the capability 10 manufacture ships of 10,000 DWT. Presently
more than 50,000 skilled wOl'kers and 100,000 semI-skilled worker., are employed in this
industry, Bangladesh is now receIving orders from foreIgn o'Wnen;. At present about 10,000

inland and coa.,tal crafts hav~ been plying all over the country, whIch ~arry more than 90%
of total oil product, 70% of cargo and 35% of paosengers, All mland ships are constru~t~d

and repaired loc"lly in these shipyards, ShIpbuilding is a copilal and labour-intensive

industry (30). ']''''0 million peopl~ are related direclly or indirectly 'Wilh this industry in
Bangbde,h. TIle people of this area, has the famous heritage of shipbuilding industry ,in~e
lhe early stage of its civilizations, So the eounlry h", got tremendous potentml as
,hiphullding nation

2.1 ,2 To get the overall picture of local shipyards and lheir shipbuilding activities, dab and

information w~re collected through exlen"i,'e field visit, SU[\'ey, consultallOn. meeting, Mld
mterview with local and international indivIduals and organizations, Sets of Qucstionnoirc

fm individual opinion and data colleclion form, h", heen preparcd In this regard The
historical development of Banglade,hi ,hipbuilding slarting from ancient tIme up to the
recent as export of classed vesscl to Europc ha, been analyzed (31) Re\';ew of shipbuilding
liternhlre was analyzed. 124 registered shipyards and worbhops (under DOS), 4568
registered inland vussels (under DOS) whose summanzed data has been sho'Wn in Table 2.3
3nd 345 registered co",tal ves,'els (under MMD) whose data has heen shown m Annux II:
'Which eomprisu multipurpose vessels, coastcr, trawlns, tugs, tanicrs. passenger \essels,
cargo vessels, patrol boat', inspection launches. small dredgcr>, bargcs, lourists vessels,
ferry, water taxic" hospital boat, speed boats, etc (32), Physical survey and person"l ,i,il
WCrC done hy lhe rescarcher to collect the datil and lind out lhe real number of local
shipyards, slnpbmlder8 (or contl'actors), workshops and lo observed their shipbuilding
activities. The individual Shipyard data collection form for shipyards has shown in the
Annex G.

2,1.3 Ont of 69 shipyards, nine have been found to be pronuslllg; who can build
intelnatLOnal,hips "1' to I nooo DWT right n(}Wor within c(}upleof year" ill "chieve 25000
DWT c"p"citie,. 'j here are another dozen of shipyards tlmt ~re goin~ :" enter into tllClocal
shipbuilding markct; but have slowed down due to recent cconomic n;ce"ion. B"ngladcsh
has at present in its order book more than 40 ve",e!s ordered from Gemlany, DcItrJllirk,
Netherland;, finland, Mozambique, Japan, etc through 2 shipyards; the size of the contract
being "bOll! liSt 600 milhon (33). Bangladesh has few thousands of SMEs (Small and
Medium Enterprises) which are mostly land based and they would be able to contribute in
the manuf3cturing and supply of ships' components and services rcq\llrcd for manufacturing
of"hips if they arc gnen proper support and training, The lISIofSME, and the product" ha,
been shown in Annex L, nlere arc SOmemarine component and sen.icc manufadmers an,;
suppliers in Bangladesh; mOStof which are shipyards themsches. The items that can be
manufactured in Bangladesh and 1he name of the manufa~turers have been li,ted. At prosenl
Bangladeshi component manufacturers c;m manufacture 50% of thc total material,
machin(TI~s and equipment for the inland/Coastal ve"els built in Bangladc,h. Thi,
pl'Oportion for"n international classed vessel to be built in Bangladcsh is only 10-15% at
present; which if properly ,entured by experienced foreign manufacturer c"n be taken to
30% Cost of thc local items includmg labours, which is at present about 40% of total ship
cost; can be upgraded up to 70% as well.

2.2 HISTORY OF MODERc'l SHIPBlJILIJI"lG A"iD GI.OBAL TREND

2.2.1 General Vie". The eta of Modem shipbuilding started in about 18608, when the
industry was abk to manufacmre the strong ships made of iron and powered hy advanced
ste"melS Ships O"nCr, of that time aeeopicd such ships beea",e of I"nger voyage, the ship,
could sail as well as better commercial performances. The successful symbol of s"ch ships
could be confirnled by the pha.,il1gout of salling vessel in later 19'10 cent",y (34),

2.2.2 Modern Shipbuilding F.r3 Started at European Countries. United Kingdom

(UK) w", absolutely the biggest shipbuilding n"lion in late 19thcentury. In ternlS of annual
thwughput measured by gross tonnage, the country produced over 80% of the ships sailing
worldwide fmm 1892 to 1894. Thi. phenomenon might be judiciously explained by the

18
leading posItion of the UK in world trade and the fleets they controlled at that time. First of
all, Bntain was the foremost eountr;' of world economy since the industrial reyoluhon, The
country was the most produchve nation of many industrial products such a, steel "nd
machinerie,. The industrialization of this country, whieh was ahead of most of the countrie.'
in the world, provllkd the foundation to demand for the ships due to incre"ing tr",les
generated l>ythe booming economy, Daring that moment- the trade "Qlume of the country to
the rcst of lhc world was devastatingly the large,t one. Secondly, UK controlled most of
trade flows in the world. This could bc fairly depicted by the ,hips they controlled. As the
statistics of Lloyd' 5 Regi,tel' of S11ipping,howed, in 1902, the tonnages owned and Qperated
by English OwnerS accounted for nearly 45% of world total fiee!. Meanwhile, it,
,hipbuildmg industr)' o~~lIpi"d almost 58% of world market ,hare in 1902 and pe"kcd in the
period between 1910 and 1')20, which wa, nearly 70% of the world tot,l production After
that, the country started to lose its position both in ,hipping markel "nd shipbuildmg market
In 1982, the marht share the cOllntry took below j % of world total at shipbuilding market
and ahout 2 or J% in shipping market respectively. Almost at same time span. and more
clearly, in the years of the bloom i ng period of British shipbuilding mdmtry, the shipbuilders
both in Conlinental Europe and Scandinavia were rather active at world market. They were
main forces together with UK Shipbuilders III the period Qf 190()-1950 In tenns of the
builders in Continental Europe, such as the counlries like Germany, l'rance and the
Netherlands, the ma,ket share they had before 1945 ,teadily stood among the range of 20%
to 40% of world tolal. The merchant neet under their controlling was also keeping at a
relati~e high position in compare to figures in 1980s. Generally, the situation was ,ery
familiar with that of UK. ,,,hich means the controlled fleet' of European countries wa,
gdting smaller "long with the diminishing market share of ,hiphuiJding ,imultaneously, In
the hght of Scar,dinavi" ,hipblEilder" they peaked in 1931, the market share they had was
21% of "OTld tolal.In the following years, the figures fluctuated heN,een 10% and 16%.
From the graph of Lloyd's Register of Shipping, it indicated the increase of market share of
shipbuilding always went along with the enlargement of the size of national fleets again.
However, lh~y arCnner major Shlpbllliders at the present time as well as major shipbuildel's
After the year of 1986, the corresponding figure, in Maritime industry all declined
significantly (35),

2.2.3 Shiphuilding Supcrinritv Shifted to USA It is exciting to see the shipbuilding

industry in UK during tlle world war. Since the war happened during the first half of last

19
century, the industry in USA took the plOduction center of world shipbuilding a"ay from the
UK and European countries, Particularly, the market share of the USA industry in late 1910s
achieved nearly 60% ofwmld total.ll was obvious according to the graph offered by Lloyd,
Register of Shippiug, during the same period, that major traditional shipbuilding nations, like
Bntam Or olher European GOlmlriu, h~(l less production duc to the war iutern'ptions. It is
worth mentioning, the industry in US invented and mt:::Jdueed:rew eO:l~<>pt
ofproJuetlOn of
ships, which was standardi[ed m ship design and ship production. The innovation made by
USA shipbllilder< has profound influence to current shipbuilding industry as welL Marlin
S\opford commented, as "This was t],e fi,st "tel' toward, standardized shipbuilding practice,
though conslruction method, ~l lhese yards did not conform to the complete ptefabricatcd
unil principle introduce later'", In the period from 1940 to1945, the market share of US
shipbnilding industry ,eached it, historic,d peak al "mid shipbuilding market, which
accounted fot 90% of wmld lotal production, Atter that, the market share sharply declmed to
belo" 10% before 1950, because USA shipbuilder totally relreated from "mid shipbui lding
market. The reason behind that the productions during the wartime were triggered and
supported by USA govemmmt;, m other words, governments during wartime heavily
>ubsidized the industry in USA in order lo meel the demand of military as well a, ciVIlian,
With the gradnal and entire lifting of _,ubsidiesin post-war time, the inherenl disadvantage of
USA shipbuilding industry, which was 30';', to 50'1", of higher in construction cost in
comparing to corresponding costs of market leaders, restored later (36). 'lhereby, the
termination of prodllction center of shlpbnilding is understandable in USA case, However,
USA case has showed that political intrmion played an importanl role in the shipbuilding
indu,try of a nation. Ihe ,tudie, mad~ ab(}ve !hal, in !he first half of 1900s, Western
countries dominaled modern shipbuilding industry, the determinant of leaderships is detind
from inherent demand for ships, this IS to say, the size of l1eets the nation owned wa,
important, although clements such as compelitive advantages played another part (37).

2.2.4 Japan Became the World Shipbuilding Center. TI,e expansion of Japanese
shipbuilding indusll)' featured "ith well-planned program, whi,h wa, initiated by Japanese
government after WWIL Firstly, the indust:y was scleeted a, one of important industrial
seclOr to rebuild the country's economy lhal was largely ruined during wartime.
Governmental department, mini,try of transport, behaved as a central planner and worked
with experienced persons in maritime ,ector, to co-ordinate the distribution of the resources
in cntire maritime indu,try, The scheme included collective allocation of the orders from

20
domestic ship-owners and anticipated the production schedule for all shipbuilders annually.
Secondly, Japan Development Bank (JDB) also wa, involved in the schedul~ by offering
favorable loans to local ship owners. The amount of funds flowing to marine sectors was
huge, accounting for over 30% of the total loans which JOB providing to all sectors in Japan
for about 20 years. finally, lhe indu"try it"clf m Jap~n employed economies of scale by
efficiently expanding their prodnction capacity. This is !o say, huge ;:weo,r;lent were
committed 10 set up advanccd and largcr shjpy~rds. With impro"ed productivity, which was
~ttnbuted to the employmenl, Japane,e ship" b""ame very competitive at the market due to
integrated produellOn tec1mology. In addition to this, the dOlllcshc orders of ne",-buildings
were crucial 10 the industry as a basement for realizing cconomi~s of ,;cale. The outcome of
thes~ mea,ures and effort; made by Japan were soon endorsed by rapidly puffy markel
shares at world market, ,ince 1')511ormard. markel share show~u tinnly incn::a,mg trend,
finally in j 960s, the indusny supphed about 50% of the tonnage for ",orM fleet so thst Japan
became world leading shipbmlding nalwn. From the slatislic of Lloyd's Register or
Shipping, it indicated. in contrast to the success of Japanese shipbuildmg industry, the fleets
of the nation did not show Same ,trongly >,'Towingpattern as the shipbuilding sector
pcrfornled. The utmost share of the shipping markel, Japane,e owners took, was merely over
10% of world total in 1973 On the othe' hand, this stati,tics did not take into aCCountof the
ships, which were actually owned by Japanese owners under the nags of convenience. Thu"
the total fleet of Japanese owning was still vcry large, eontinned by lhe figllT~of Ul\:CTAD
in 1995, which presents 73% of Japanes~ owuing ships are under the flag of convenience.
The point here reconfinns the impact of size of nalional fleet to shipbuilding natiOn. In
addition, one of elcmenls for the industry in Jopan to succeed at intematlonal market could
be a!tnbuled to the developmenl of open registration in 1970's Open registralion slarted in
l,)OO'sand had a rapid de\'c\opment after W,VII (38). In principle, the ship owners who fly
flags of convenicn~~ had less constrams on busincss decisions and operational aclivities than
lhey fly national flags In other words, the orders of new-buildings, as one of busmess
decision arc to a great extent, free of controlling by llag states bul, mo,tly are subject to
market mechanism, which guide, ,hip-owners to place the ord~rs of new-building ships
according 10 their p!efertnc~s after ~valuating all aspects of shlpyards or shipbuilding
na(ions (39). Martin Stapford concluded in hi" book !vlarihme Economics, that the rea;ons of
thriving of Japanese shipbuilding industry are "th~re arc (wo explaining this ... The second
i, that thc Japanese ,hipbullding becam~ highly competitil'e and obtained a high penetration
of the export marht, part.icularly the marke( for larger ronkers sold to independent owners."

21

•
2,2,5 Presently Asia Becoming the Global Potcntial ShIpbuilding CentcL H is worth
mentioning the rising up of Korean shipbuilding industry as well as that of other Asian
nations, who grew contemporarily, together with Japanese shipbuilding industry, made Asia
the World Shipbuilding Center in 1980s. At the beginning of 1980s, few Asian countries
were listed among lop 20 nations, whereas Japan was No, 1 with market share of 46,52%.
The market share of Korea was below 4% although the country was mnked a, No.4.
AddItionally, Both USA ~nd Bm~il were important shipbuilding countries at thnltime, The
market share of the shipbuilding counlries in Europe was aboul 33.5% of world total,
However, there waS rem~rkablc eh~nge at the end of 1980s. Korea grew rapidly and gained
substantial share up to nearly 22%. Jap~n kept its position linnly wllh almo.'t 43% of world
market. China ~nd India emerged at the first time, with market ,hare of2,31% and 0.44%
respectivc1y, The most impressive development during the years WaSthat the m~T:;etsh~res
of Fi,e Asian Countries "ere 71,29% of world total. The ligore here is clearly enough to
depicl Ship production celllers h~cl ~"en totally ,hifted from Europe and USA to A,ia.
However, the market sh~re of European Countries declined significantly by about 10%, And
the c01mtries such as USA, Brnll, Swedcn, Italy, Netherlands, fall out oflhe ,Vorld top 20.

2.3 BANGLAlmSIII Sllll'BillLDI~G AND ITS HISTORIC EVlD'E~CL

2.3,1 Indigenous Shipbllilding in lhis region dalus back to a long bme. II i, onu of lhe early
mdu,lries developed in Bengal based Onils tradition of budding boals and sea going vessels.
Many countrie, of Asia and Europe used to regularly buy ships built at Chittagong. Ibne
Baluta came to Bengal in the 14th century and went back in a wooden ship built in ~ dock
located al Sonargoan, Dhaka, Such historic ships are bemg presen'ed in European Mmeums.
According to the European Travclleer Mr. Cacsar frederick, Chittagong was lhe Cenlre of
building ocean-going: ve"els during the middle of the 15'" century, During the 17'hcentury. a
fleet of shIps of lhe Sullan of Turkey w~s buill al Chillagong. During the Mughal puriod,
Bengal is said to have taken the lc~d in building ships and boats. The MlIgh,,1N3v"1 force
had a large number of ships built at Chittagong (40). The British Navy used warships buill at
Chittagong in the famous B~ttlc of Trafalgar in 1805. In 1818 the wooden huJl frigate
Delllgchland was built in Chittagong and delivered to German Navy.

2.3 2 Dunng the first half of the 19th Century, the Shipyards at Chittagong built ships up
10 1000 DWT. During Pakistan periorl Public Sector Enterprise, dominated the shiphuilding
industry' At present, Private Sector has emerged a. the major player of Bangladeshi
shiphuilding, There arc more than t1fty shipyards concentrated at Dhaka, Chittagong,
22
Nalayangonj, 8amhal and Khulna regions; where inland costal and fishing iket are being
b"ill. In 1979 PAO funded contract for supply of 08-food grain carrying vessels to
Bangladesh Inland Water Transport Corporation (BlWTC) wa, secured by Highspeed
Shipbilding and Engineering Co. Ltd. (41), Narayanganj, Dhaka through intcrnational
tender. The,c werc Class Vessels, Mltsu; Enginecring and Shiphllildmg Indnstry of lapan,
entered in!c a jO';'l venture in shipbuilding with HIgh Speed Shipbui lding and Engincc,;[;g
Co. Ltd, and a construction project of 04 deep.sea fishing craft "a, undcrtaken. Recently
some shipbuilding Industries including Ananda Shipyard and Slip"ays Ltd. Dhaka and
\Vcstem Marine Shipyard Ltd, Chittagong have come up 'Wdh all standarrls shiphuilding
facililws that cnabled them to reCCIVCcxport orders. For the fir,t tune i\nanda Shipyards
exported class o~~an going multipurposes cargo vesoels, ferries und boats ii1clud~ thre~
aluminum catamanm pas>cugers' ves.,els to Denmark and Mozambique in 200R and thereby
secure the'name of Banglade,h in the list of shipbuilding and exporting natwns.

2.4 PRF.SF.""T STATUS OF SHIPRtiRDING 1"'''DUSTRY 01' BANGLADESH

2.4.1 Private indigenou3 Bangladeshi shipyards are mainly C(}nstru~lmgsled ships that are
suitable for inland and coastal waler, They can design and fabricate ,hip up to 3500 DWT to
f"lfill the demand of local market (42). The medium and small private shipyards arc
"pe<a\ing unda mthvi,luaI managemenl, "ith minor supervision of govemment. All inland
and coastal ships are built by local shipyards and numbers of vcssds built per year are qmtc
many, \~hich have been ,hown m Table 2,6. 1lley empi"y huge numbcr of skilled and
unskilled labour, l\10st of the private Shipyard, usc plate, engine, component and .m"~hincry
of old merchant ship; which collect from Bhatiary shIp breaking industry (43) But v~
frequcnt sinking of inland vessel and he~vy human casualty also confuse thos~ local
Shipyard, capahilities D"e to the shrinkage of \vatemays and shortage of navigable water,
Bangladeshi inland ,hipblLildinE\industry is in danger (44), Ho"ever, pnvalc SI\1pyardsare
the cheapesl and real imhgcnous shipbuilding and r~painng indu,try in Banglade"h: which
needs special at!enti"n by government to develop !hcm as quality shipyards. Howe-cr,
among these yards there are ,10ZCllSof ptivate shipyards are capable of manufacturing good
quality small and medium ship' to fulfill !hc requirement of local ship buyer.,/ownl',",

2.4,2 At prcscnt there are few pn'alc ,hipyards that are de\eloping: intemational s1;;mdard
and receiving order to manufact"re world.class ship, for mtcrnational market, Of these,
Ananda Shipyaard. Dhaka amI Western Marine Shipyard, Chluagong has a!tained the
capability to manufacmre the ships of 10,000 D\VT, High'peed Shipbuilding & Engineering

23
Co Ltd had a joint \"enUlrewith Mitsui Engineering and Shipbuilding Indu,try of Japan and
it has also signed a deal for construction of ten small new ships for Japan, which co,t US$ 50
million. Those reputed local Shipyards of Bangladesh are receiving orders from the foreign
ship Ownerssince 2000.

2.4.3 After the independence of Bangladesh, the ",,1~ ,ignifieant ii"vc1~;Jmcnt in pllblic
sector was the Chitlagong Dry Dock Limited (CDDL). But after the independence, mo,t of
the state owned ,hipyard.' (DEW & KSY) have failed to keep their reputation and
sllbsequently have become lo,ing enterprises for many rea>On~.Out of those re~,ons. the
mo,t p'ominent One was that, Balan~mg Modernizing Rehahilitation nnd Expansion
(FlMRE) has not been conducted ,ince couple of era due to lack of capital. CDDL, a Public
shipyard, "how, good prospect of lillllrc as it's comparatively Illodern and equipped ",ith
dfective machinery and facililies, '" well '" its merchant ship docked capability (45)
Llangladeshhas "mple scopes to attract huge local and foreign investments in the prospectlvc
shipbuilding industry and can also earn substantial amount of foreIgn exchange by buildl1lg
new vessel, for the world market. The CDOL, a slIbsidiary of Bangladesh Steel and
Engineering Corporation (BSEC) under the l\fini"try of lndustry, has long been engaged in
ship repaIring and servicing in tIle country. A separate dock fully equipped witll
supplementary facilities can be set up here for the purpose of new ,hipbuilding (46). The
CDOL, a subsidiary of Bangladesh Steel and Enginccnng Corporation (FlSEC) under the
Ministry of Industry, has long been engaged in ship repairing and scrvicmg in the country.
Two foreign countries also ,howed their keen interest in either to relo~ate their shipbuilding
induslI'le.,tn Ban!;ladesh or place orders to the COOL for huildLngnew v~>sels lor them

2.4.4 Khulna Shipyard (KSY) Ltd is about 45 y~ars old public shipyard. After 1984 till
Bangladesh Navy took over. this shIpyard remained as a sick indmtl)' and there was no sign
of profit. 13mnow KSY IS carnin!; profit. Vessel~ like Gun Bout, Cargo Ves,els, Floating
Cranes, Water barge, Water Boat. Tug, 011 Tanker, Pontoon, LCT, Trawlers, Launch et~,
have so far been con,tructed Irepaired I renovated in KSY "ith good reputation. Its versatile
dock facilities can accommodate a good numher o[Ships at a time for repair or new builJing.
In 1<)57Kll1llnaShipyard started con<truction of tug" WOIkhoats and other commercial craft
with standard deSIgn. Since lhen Khulna Shipyard has built (about 350), I'eno\"ated and
repaired more than 2300 vcs>el~.Kh"lna ShipyarJ is currently committed to the design and
new building of a wide range of tugs, "orkboats and other specialized and cargo ,essels up
 "'-""";,", .•.
to 5000 DWT. The excellent assembly aml outlining area enlme a good working
env;, onmcnt for high quality construction and tight schedules. These shipbuilding areas have
ample spac~ and equipment for the simultaneous outfitting of "ixken medium siz.e vessels.
The construction works of KSY started in 1954 under supelvision of the EPlDC with the
tedillical supporl of West Gennany_ After completion of worb. production started On 27
Nm ,9';7 ,\ British fLrmwas appointed as GOn;u1tan!. Later another firm from Switze,lan(:
was appointed for the ,"me job. Their contract was O\"Cr in 1967. Aftemards the KSY was
l1111ning
by its own expert engineers both technically and administratively. The p~Tiod 1973-
84 can he termed as golden pcnod for the shipyard where it ,,,[[ered no 105S and the highest
amount of profit was earn in the fiscal year of 1976-77. AUer 1~H4.KSY turned into a losing
eOnC~rndue to multiple reasons. thc moslunportant r~ason was Ihm, Bal~ncing Modernizing
Rehabilitation and Exp~ngion (Bl\fRE) has not heen conducted since long time due 10 bck of
c~pltal. A" a result the O\'era1]infrastructure has been o:mol( collapsed, l\'!osl of the qualified
officers and ,kill workers have lef\ Ihis organization at vanolls stages, From that state th~
Shipyard has h~ndcd over 10 Banglade,h Navy on 03 Oct 99 by the honourable Prime
Miniskr of Bangladesh, Rescue of this organization from lhat deplorahle ,tate is no doubt a
challenging task for BN. After 1984 till Bangladesh Navy took over, KSY remained as a sick
industry and there was no sign of profit. But now KSY is earning profit. Presently vanous
types of small ve>s~h have been constructed/repaired/reno\'ated with reputation (46).
Ilowe\'er, it nced" extensi\-e BJ\.IREprogrammcd to enhance it, ,hiplmilding capahjjily"

2.4.5 Do~kyald and Engineering Work (DEW) Ltd is providing services to new
Shlphuilding ami repair ,ectors in thi< region :;in"" after its estahlishment in 1926 The
organi7ation was taken ov~r by the government of thc then Pakistan from the Royal Indian
Ma!'ine Scrvice aft"!' the di\-i,ion of India, In 1954, the then East Pakistan Indu.,trial
Developmcnt Corporation (1:cI'IDC)took it OVCrand tTIm,f0l111edit into a puhlic limited
company. Subsequently, in the proccss it has COmeout with the capability of building and
repamng ve"eh of all types up to 3000 DWT. It ha, fmthcr modenllzcd in 1989 by
introdu~ing good machinery and scctjona1i~ed shipbuilding tce1mology, This development
wa, aclllcvcd to enable the yard to undertaken construction of Ro-Ro ferries under a Danish
aided project for BIWTC. But DEW was fuiled to keep it; reputation an~ earn good profil
since independence, i\fl~r declaring sick industry in 2002 it has "topped its acti,"itie, and
finally handed Over to Bangladesh Navy on 07 Dec 2006, Prcstnlly it i, run by Bangladesh
Navy and gomg to refurbish very soon with suitable BMRE, DEW has wdl shipbuilding

25
capability tG build '1,,~lity ship for foreign ships buycl'/ownel. DEW slall-< funcllOning again
~nd recently it is going to become a profit-earning organization with rcgilining its reputation,

2.4.6 On lhe olhcr hand, there are 69 of pl'LYate slliphuilding and repairing yard, wilhin

variolls locali,)" 01' Bangladesh that are manufacluring amI rcp~iring almost ~11lhe inl~nd

and cO",lol wateL"tn",sport,. ,\Inollg these, ,om~ 01 them ha\'c 10llg shipbuilding history and
reputation (As un example 1tighsp~~d Shipyord h", 47 years of shipbuilding hi,tory) Again,

some pri\'ale shipyard Iws £,,,iLlcd inlemalloLl,,1 stllndard and nrc maLllllnctunng small and
mcdium new ship, for int~rn"(lOnul market. Recenll} fe'" of Ihe," Shipyards have attained

the capabrlily to m"Ll"I~ctnrc the ships of 10,000 DWT. Vcry recently few 01 thc private
shipyards of Botl£ladcsh ha\'o reccivcd ordets from the foreign ,hip ownelS (such as

Gennan}'. Jap"n, tkmTIlnk. i\'Clhclldnd<, EC, I"'ozambiqll~, Gt~), DOL€ns of n~W ship:;
already h~nded owr 10 fore]gll ()\\ncrs by OLlI'loco I Shipyards Howe\er, while the inland

shipbmlding "'ns HI LESnascent slago, 13angll1dcsh £,OEits ti'st c"po,ure of inTClnalional Ohip
building in 1979 J"pan~;~ slllp building giant, ,\1it"Li Engineering and Ship Building
Indusl,,"' developed the fjlSl :LOUthe hrgesljoint venture ship}'ard "ith High,peed Shipyard,

Nmayangan]. For the lirst lillle. J-]l£,hspeed Sillpyard with tileir Japancsc partncr;; was able to
build vessels according III lllt"rnallonal classification ,ociety for meeting nalional

requirement To mClllLon " lew (lchic\'ements. Ihi, yard constructed live dccp.se~ ("hing
tra\\' Ie" for loea I 0\\ ner and r~~Clv~d orilcr by pm1icipaling in an mtem"lional knder Hoated
by the fAD (food ~nd Agricultmal Org:miwtioll of UN) to build eight, grain corrier,. I!
built th~ first b~rgc.<n()unted power planl for FPC!. (Rural Power Company r td), seveml oil

tanhr" ""d fU,lll1()Vlllg palrol ooat fOl I\'""y alld lro"I'" carrier for the Bangladesh Ann}',
11,i, joi tlt \'entlll'~ ~""hlcd the i"Lrslpri "~IC SCCE,1l'
,hip rep" ir and building} ard with modern

facihtie,;, slipw"ys, u"d work,hop' wJlh blcmb betwecn J,'paLlc,e manaGemcnt and local
workfurcc (47). /\mlLw(b and We,(~m Marnw h~"e sign COnTraclover US$(,OO million ""rlh
ord~r3 to mak~ mOl" than ~n \~0,eL" wilh a capa~ily below 10.000 DWT (48), As world
ship OWnCrS~re sluwly but sUlcly elllOTIng Bang1<l<lcshwith thi, p,ospect, so il is ",-peeted

that mOrClocal ShLp"ards \\'ill illlp'''''" th~i, capabili!}' ~nd quality wry ,oon.

2.5 LIST OF SlIIPY.\.HIlS OF B.\l\'GI ,\IWSII

2.5. r Ident; ticat in n n t E., hI; ng S hi 1)\'1'1'<1
&. IIIci l. shnrt Description. Ther" arc morC

than hundred shipyard" ,hil'hLlildcr,icon(ra~I()[' :llld workshops in Banglodesh indudillg

124, lhat are regislered witlt the ])~partmcnl of Shrpplllg (DOS) of which abonl half of

ca!cgory /\ a~d rest kdt' arc calcgOl)' 13"" per Cl1!erinn let hy [)O~(49) List nf Regrstered

J
shipy~rds shipbuilders/conlractors and work<hops undcr DOS h~~e shown in Annex I. A
List of plivale shipyards and ,hipbuild~rs/cOnlractors under Bangbdesh Shipbuilders
Association has collected where most of the shipyards/shipbuilders are not commensurate
with on ground dal".

2.5.2 It has been found physICully by tile l~_,"areher lhm only 55, ,hlpyards or dockyards
(both registered and not registercd under DOS) exist ill Bongbdesh and another 14 shipyards
are going to surface withm ,hon 'pan 01 time, l'here are 88 in nnmher (both registered and
nOlregistered und~r DOS) shipbuildcrs or conlmc!ors lwvc found: ,,,ho mc actively involved
in shipbui](hng activities Agam lhere arc oilly 13 in number (bolh registcred and not
registercd under DOS) workshop have found: who are aclively involved in shipbuilding
activit;." Oul of lhe,~ shipyard,. "pproxim~tely 70';;, arC located in and around Dhaka and
Namyllngallj, 2()% aw al Chitmr,ong and 10% "c at Khulna & Barishal. Almosl all
inland/coaslal/Gay cJo"in~ ,luI':' ~re COLl,lJllCkdand repaired locally in these local
shipyards, A consoiJdak lisl oj ,bipyard, on (he ba,is of field survey and phy,ICal VIsitarc
prepared "nd ha, shm"n in Annn J. And a complele lisl of shipbuilders or contractors and
workshop' actively involv" ill shipbuildlllg; on the basis of field 8un'ey and physical visil
ha, ,110"'n in Anne, K.

2.5.3 I'or a"essmg the ~om"l condLtion or the shipyards in ternlS of lheir capabilit;, and
facilities melud11lgtechni~"l, e'1"'pmcnt, ;nfnu(lllelmC, human re50utee etc,. field surveys
and ,isits have bcen lllade and lh~ comp1cle proce" of shipbuilding practices for vanous
ship categOlie, ami 10L'va, iOllSshipyards have been observed. To describ~ shipyard, various
types of dat~ sneh as: hislory of yard, shipbuildLLl);& rcp~ir capability and lype of yard,
shipbuildmi; area, docking: rll",lili~s, locatloll. yard layoul, workshop f"cilities, NOT & DT
facilities. workmg eLlvironmenl, lighllLli;arron~em"nL shift system. availability of cranes,
wLnche" tran'porl bciliti." h,mdliL1gf,,",hli~s, clecltical generation capability, warehou$~s,
worker, ,e"t & recreation facilili~,. pCl's(j]llll,afdy amlllgcment, laboratories facilitics,
hospital or el11erg~ncy tre~lmcnl equip:""nl, Ii,." lighling j~Cllities, vibration and noise
countemleasures. ~OLnllHLl\icalion
L,eiiilie" liL~,wHon, call1cenetc h"vc been cOllimlered

2,6 TVI'I';OF SflJPS Hl-:I"~(;IllJlL'f E',llA;"<(; LAllESH

2.6,1 A number or divc"il'ied lype, of \'~5scls are buill in various B~ngladeshi shipyards
awund the eountl)' The vessels buill ill vari"u, Bangladeshi shipyards navc been shown in
Table 2.1, Some of Ihe most commoll types and ,jzes of \'essels ",jill l11inor lechnical details,

"hieh "rC ply ill inland ~nd c<>"slal walcr, boo heen ,hown in I'able 2.2. Again number of

,arious sicc, of inland ve5Sel> (mICl'l11, of l~nglh) rcgi,lered lLndJr DOS has been shown in
Table 2.3.11 has beel1 observed th~t usual maxil11um length and DWT of the Inland vessel is

within 70 mcter and 3000 lon, resp~cll"dy,

Table 2.1 Types or Cormnerd"l \' essels usually build ill n""glnd,,,hi Shipyards

Is'l
I No
Type, of Vel.,cl, u,u"l1~ B"i~<l in
ll:lng:lalle,hi S~, •."..n.'.,

,
fTilvtullipurpose
lJr: Olt'gO
vessel or C08slcr
Vessel
I
,
3 Pu."enger
])rdging
\'~,scl
B"rge I
3 Tu"kcr I
6 Londmg Cr,111 I
7 rLL~
IS I S\'l'pl}' Barg~
19 I Ro-R[) FeIn -
W I Hospital ShJp
lOll1istship .
" Deck L()adLLl~n~rge
"n Pleasure CmCL!Y"~ch

"" Cmne Ilo"l

Sp"cd Pool I
<6 Hydrographic S,,(I'e1' I,oal I
DOllbk Dec k~r l',,,,cnger Ve"cl
"
I '8 I T",op" Cm'Y'lig Vessel

"
20
CaL'~o COH\WI
l"sr~cti()n Vc,s~l
-
n SclCPl"orelleJ B"L'gc
n 1'0,,100n
23 D~cp Snl Tnmkr
24 Fast Pa(rol Hoa(
COLl,:!ine] ves<el
"
?(, Pilol bOiLt
-

n I Walcr'l<lxi
n I C"lalllaL',m \'~",cl
Suml Carrie, OJ Small Cnigo Carriel
'")0 DUl11pBlIr~:c
--
-
--

2,6.2 Tee hn;eal delIIIlor 1lILLnd "c'''cL; r~gjsl~ll'd "nder Department of Shipping show> that

more than 4568 lLLi:,,,dve"el, 1m' c been, el'-i.,wl"d wilh Department of Shipping (DOS), the

___ ,I
percentagc distribution of types oj ship is bus ,hO\'d' In ['igure 2.1 and Table 2.3 shows the
distribution in numucr. Apart lioLllthousand, ()[ Lllechanized~nd manually operated country
boats have not yet come under the pJe"ie" 01 legi,lrallOn and organized statistics, There are
more than 8,000 inland vessels in tlL~coumlY comprising of cargo vessels, passenger
vessels, Tra,,1ers, Tugs, dumb uarges. tourlSl v~,'cl3, small dredger" fishing vessels, fish
camers etc, In addllion to llw inl.'~(: VGssel,.IkLC is a fleet of coastal vessels, whkh ply
along the eo~st Th~se arc c()"qcr. ,"ultil'urp{),;c \'~ssel. tmwlers, passenger vessel" cargo
,essei5, tankers, Ulg<,barge,. d~ ",11ieh about 2' 100mG in numbcr are. Out of those 345 ha\"e
been regIstered wilh Merc:.ntilc MallLleD-'rarlmcnt (,\11,[0), which has shown IIIAnnex H;
"ho had fuHillcd th~ requirement. "thero ale either aM\iting for appro\'al or not yet
register~d, To get [he reol numbe, of v",,"1 "clL1~II)'build in local ,hipy~rd is quiet more
than Ihe registered cither III DOS 0' ]11MIdI) Author has lued hi~ best to dIg out the real
figure of vessel eomtructcct s:nee l"st fhe )"'<115by cons\\lting with existing shipyards
aroullll the counlry. r\L1dl~ h"s kcn fOlIlld !\ d,1Tc,cnt picture, whIch is promising and
eneonraging lor the n"llOn *1)1<1
ha, b'"~L1
s11O\\'nlL1Tohle 2.6 below, So the rcal story ISthat,
aetnal inl"nd and ~o""lnl vc,sc1, playmg in ri\'er, and coastal water are quite mow. On
ground observation II has ~llunJ lh:ll an"th"l few th()us~nd, of vessels need to be regi'lcred

in future.

2.7 STATUS OF BA"CI ,ADI:SHI SIIII' llESIGI\" CAl'ABILrfY

2.7.1 Stnte ofT,oeal Ship Desi\!n. ThclC aL'~1\\'0 !ypes of design/drawing require for
de,igning and building a new ship One ISbasic d"SLgnand anolher is working drawing, ['0'
an example, Anamb Shipyard 11OU~I,(
ba,ic dC"['11of a new export quality ship, Withthe cost
of "boLit2-crore I"k", ~L1dIhe wo' king,dm" ill:';' co,t for lhe same was another 2_crore taka,

Table 2.2: Some MoSI Cnmmun Typ'" alHl sin, of Vessel (in term' of L, B, d &
DWT), "hidl ply in inland nn<l CU"SI~1Wal,'r

TypcsofVe,"cb 11\\'"1"
1 ,," Lcngll' in Breodth in Dranght l'sually
.I'"ssoll"cr i\leter Meter Meter " I'h'
Multipurpose 1500- 30!)1) (,0- IO() 10- 15 3.5- 6.0 Coa'I"1
VelIe! m
Coo,lter
3.5- 5.!) Inland &
Cnrgu Vessel 1000- 25()() 50- 90

I7.00 (,0- 100

'"
10.16
" 3 0- 4,5
Coaslal
Inland
Pn,"enl(or 300-
Vessel ()I' l"l,scn~~:
Lnullch
I{JOI)-2000 50- 80 ]0- 13 3.5- 5,0 Inland &
Tanl<er

29
 Coastal
Sand Carrier 200- 500 2()- 40 5- 10 2.5- 4.0 Inland
Bar e 200- 800 20- 60 6- 12 2.5- 4.5 Inland
Dred cr 30-100 10-30 4-8 2.0-4.0 Inland

Others
Passenger Vessel 5%
17%

Fig!.l V"riuus Type, ot Inl"",1 Yes,eis }{egis!crcr! under nos shuwn in pic chart

Table 2.3: SUJl\mari7ntion of Var;""s TY]J('s nl' Inland Vc,"els Registered under
nos (List needs more "l' l<l rlate)

T\')" Llantity
Speed en'll
Small Dr~dger "
330
Oil 'lanka "4
hll
"4
Cranc Boat
Towi,,~ boat ,
I Yatch ;
I Tomi,t \'c",d 3
I Pilot
Wate,-Bmgc
!.Joal
"
4

",
Vls;t;",\ Ill''''
RGsc\LC Shi"
Sand CllTi~,- 1732
fl"'-gc
Hospil,d VC.;'d "3
~1otoriJ(Ht
CargoV~."d 1366"
.l,1(\01'i"," Vc,,,el 2
1'""S<'n~~,
V~ssd 182
I IV",l DO'li
WatlT'r,l.\l
8
,
S"r,,~y\'"",,1 4

30
 23 Salvage C"lllC Iloal 1
24 Tug BO'll 34
25 Dumb DL'crl2C1" 1
26 Dumb Il"rge 29
Tutal NUlll1Jn 4568

Tahle 2.4: Varlo\ls slLCSof I "I" "d Ve,"cls (in tcrms oflength) Registered under DOS
(not consolidate lis!)

There are bilhon dollan ship tksign husmc,s floating in the world m"rket. The basic
dmwing mostly require, fOI owner, ~nd \\("king drm,ing solely req\lire for shIpyards.

Banglade,h ha, golden opp()]llInity ill Ibis prolltable business. Naval archikcts are the
nucleus of a ship d~"gl\ f,,,,, lJLllortLlLntely"t present Bangladesh neith~r h~s q\lalified

naval archilect nor ha, ,uch l"'silLc" motive. Rea,on behmd are: huge initi"lmvcstment,
lack of confident ~s Ihcre \\ '" nO snch imllativc heforc and naval archItect pass from BUr.T

'are not staying ill the <'01lLL11":.

~lorCOVCI,Bangladesh lacks any sort of modelleslmg
facilities which is lll~"d~tor)' Jvr 1,ew design of any Classed or export oriented velSe!. Sinee

197G ;'\aval Al'chitect",c anrl 1.1atll1(;l'n~inecrlng deparlment of Bangladesh Engioeering

University and Technology (GUI"11 produled mor~ lhan 300 naval archilects and among
them only 45 arc wOl'kin3 in ,ario\ls marine fidds in Bangladesh (mostly not related with
ship design profcssion) 10 ~,I"hl;,h all ill\(OmalionalqualLty ,hlp desib'll firm in Bangladesh,
it will cost aboul oi, 10 e;~IH ClO,'Ctaka, If such d~,ign finn enn munage two project of
basic/working dmwLng of neW sill!, pcr ie,Jr, within two years inilial investment will be

recovered.

2.7.2 Ship J)e,ign Capal],I,I\' ",,,I Sol'tmll'c Usc hv Local Shipvnrd. However, local

shipyards 3re manuL"ctUrlllg o~lip" I()r LLlhnrland CO"'lal route withoul approved basic and
working dmwing from Dcp~1'tmclll of Shippin); (DOS). It's ''''prising (hat, in Bangladesh
inland ,hIps ~rc conslruet"d li,-'I then d,.~\\,in~ are prepared1approved. There ~rc very

hmited number> 01",'esse), \1("(' ,"oll.muctC'([~ccording to design III recent time, whereas
thousand, ofvessds mc COL1,llll~l"dand renoVnle every year. Th~t's why neither the inland

ships quality is dCCI~asingnor the 'lu~l;ty "hip dcsign [inns arC S\lrfacing. However, most of

31
the local shipyards thought
•... --
lhat lhey h"ve cnough
."'.'_ .•...•...••
knowledge about ship construclion.

Though, most of the primitive I}pc oj shipyards has nO basic and academic knowledge about
ship design. Most of thc shipyard, and SllLpowners of inland ship are not eVen inlerested to

spend two 01' three lac rab for tlcsi~~, ~ ship wilh approval from DOS. Thai's why faulty

ships are constructed and aeei(1cnt" neem in B"ngl~desh in every year. DOS of Bangladesh
has shown keen intcl'cst to develop the mlaLld sllipbuilJmg sectors. But they have shortage of

qualified technical personnd to lmp1clncnl the exi3lmg rules and regulations. There are few
shipyards and firms al'e cnlisted in DOS 10 dC,Lgl\ inland and coaslal ships, which has shown

in Annex 0, Popular Software usc' fur slllp design in Bangladesh has sho""n in Table 2.5

Tahle 1.5: Table of Popular S"llware me for Ship' DesignrDrawing in Bangladesh

81 1'.arne of til" Sortware Type 0[' Co,t in Use of the Software

N, Draw;II" Taka
1 AutoCAD Basic ... ~ Simple wnrking D:nwing
WoJ1,mg
D,.~\\ing
2 Maxsurf Profession" I Bnoic Twenty Hull !\lodel, Hydrostatic &
package with H}'dron",,~ DmwLog bkh Stability calcul~tion, Speed
pro, \Vorkshnp pro, Hull ~ prediction and Production
speed pro drawino
2 AlLlOShip P~ckage Ba,ic Fifle~n Hull model, Hydrostatic &
Drawin!; ldkh Sl"bil1ty cokulation, Speed
prediction and Prodllction
Jmwin
4' TRIBOl\' rull package Com~klc r-.-'lore Basic Hull & Dcck Dcsign,
Ship design and Ship D('oign than one Structural Hull DeSIgn, Piping,
ShipblLildmg SOlHtiOLK SolutioLl C •.orc Electrical Syste!\ls, Machinery
(www, tribon.coTl1) & Structural Outfitting, 3-D
Ship Design, Line, & Body
plan, Accommodations
De,ign. All working Drawmg
f--so PTC CAD-'CA"1 Completc More B~sic Huil De,ign, Structural
Sof\warc a)lri Ship 1)e"g11 t!l,n one Hun De'lgn> Piping, HVAC,
P'oIENGli'JEER Solutioll Crorc loteetri~al Systems, Machmcry
Shipbuilding: Sol"t ,ollS, and Stmclllral Oulfitting,
(www.cadin[o, ncl'~Jllori Routed System, Support,
al/mc,llip) Accommodations

Note: 1\'0 4* & 5' arc lh~ besl ,hi;, ,k,i!;n sortwJle in the world. Still not a\',ilable and use
in Bangladc,;h. An}' 11>Lv"1
",~hit~~l wilh rew I]]onlh tmining Can u,;e (and design a small ,hip

WIth the help) of all\' ]llOfes,iumd SllL~(kiiglL softwale.

J2
2.7.3 Types "I Fe" Cla,,",1 Ve_,wb helm; 1"",,lh built In n"ngl"d",h. There are few
local COnsulling s1L.~y,,['d,'1111110,
\1,1\0are cap'lbk of d~si~n and sol,,~ sllJpbuilding maltcrs in

some extend a, silown in .\nlln 0, "\~'tlll llU"] and Shipy~rds Ihemselv~s hn\'c own

de~ign hou,e aml ",e capabk 01' (!csi~1l or medium ship in some extent. ~:,ampk of few
classcu vcssds I",,~ b~,,,, hulll h) hlcal ship d~s;~n comp~ny for foreign ,hipbuildn 01'ship

owne's since 2()(J7 ,hm\ll LLl']"hk J 2 LnLL'"xtchaptcr

2.8 COST ,\,'m GROWTIl 01' TIIF. I"IDUSTRY

.\1'1'IWXB1:\T10;\ OF ';1/:1<:,
2.8.1 Value "I' Comhi"" 1n1""d ,,,,d Co,""I,,1 nee!. H' It con,ide,- local inland &
coastal tlcet olJ3,Ln~bctc,h (",. ';'i(.~Inland \c-"do, 13., Tmwk". 96 Coa,[al Tenke" and

116 C"a,tal Car~o vcssels), \l1,iell ,"" rc,',islered wltil C,ovemLnent agencies (DOS &

MMIl), the capit"1 innstmen'. inlh" mdllstr) comes to be as rollows:

4568 x Tk. 3 Cro,~ Li"CL~gr) PCl \"".,cl 0 'J'le L'.704 Crore

133Seagoing'lra\\ICls!i,' 'Ik IO("Ol~ ~'I k ',J30Crorc

96 CUllSl"I T ~nk."1s ':'''' Tk 10 ("Ime n, %0 erore

I 1(, Coa,lal r:argo \ ,'SSeI <I,: '1 k, ]() C 1'01e '[ k 1,160 Crore

'[ ol'll ~'I k 17154 Crore ("'US$ 2480 million)

The public sector or~a"'7aIIOLb h",'~ " h,,~e lled of p~s"enger" carg(j, lanker &

mullipurpos~ vcs",I, "'i> pilot. ""\'e)'. in,p,-,Clion. launches & various "ervices vessels,
which w1l1 be wonh ""()th,,, USS 5)11 ,nilli"". The: price of Ihe uorq;istcrcd & not yet
resister vessels \\ill he ,,,,,\the:r \lS$ 2000 n,illi.,,, . .'\, a rC'\llt, the calculated size "f the
exi,ting mdLl'lr)' lIL B""~~bd('sIL " a, L'ig '" USS "000 mill;()n ;11(he il\land Qnd coas(al

routes, However Ihc 0,'c''''ge l'-'\)\I'lh ()I'th" Lr.dll,I ry l' about 10%.

2.8.2 I' lect ,>I'1"I ,,,,(I \ '<'"l'I ""del' IA):-;, ] cc lin iCJI d'll" fur illbnd \'c""l, l'egi,teled

wilh Department l,r Shil'i'llll: \\01'.' colkcl"d '1h,"'.' "fC 11101'''lh"n 4568 Inland vesseL, could
h",," been traced tk,j Jl',' fl'g"lc",,1 wilh DCI""l"'cnt of Sh,ppLng. tnl which technic"1 daln
were collecled l\pm-1 f,U'" UtO''''C! 4(1)00 (I,)lly thousand,) "rcounll)' boots which have
been mechJn;,cd lL1I"d dcc,,,1c's with eh~al' itli~ali"n en3in", imported fmm Chin" an,l
many of which arc ""p,"g"d ill c:ltr."ing "I'pas,,-ugcc< and cnl'go ""J have not yet cOl11eunUcr
Ihe preVlCv. 0 t. r'l'c~l,ll'''1101\,LL:dllL~._"ni7cd ,IJ:i, tL~,. 1 here arc more than 8,000 T "Janel \'essel,

in the c"ulllr)' comlm,ill:" "I' c'",;!-" ws:,d" p""enge, ,'cssel" tmwlels, lugs, dumb b~rges,
tourist vessels, small ~rcdg"" li,hillg \'C"ds, I,sh comcrs ctc. Thc following data has

cQllected for the '''8i,(ncd 11,1"Il~ \'c'"c!s,

a, Name of (he vcssel
b, Registration no and pla~~ (J1'Feg,i,tlalion

c. Leng(h X Breadlh ~ Depth (i" m1

d. Owner, name & Company i\dd,-",\ Ix 'I cI ~o.

e, Engine No & III'

f. Type ofve,se!s (pll"cn,',l%. c"'''-o el()

g. CapaCIty (p,"sscllgcrs. "ar~(l etc)

h, No of Cabins
i. Year oj build/rcl1uild
j. Life ,",'ing Appliance IN" ,d'L1" l>""y.li[~ jacket life mns Clc).
k. Flle lighting A pplimlCc, (:," "I' b c :-L£-htin~cquipHlcll!, lire bucket, pump, etc)

1. Gross Registered r()n"a~c IGln)

m, Other Safety Appli~llcc & l'qL"rmcm (COlr.pass. n[<t aid box, safety L"mp. Radio)

n No of crcws (Master, Drl\'cr, Cl()

The d~tahase de\'do~cd 10'- morc th"" 45(,8 llllaL1d Vcs"eb \\'ith dew,l daw ha, not been
included in tl1e thcs;, 10 \,(;"~ [hc Si,'c cOLLlpact.Il LSremain with DOS and continnou,

updating IS "Iso )'o;n[\ on. IlowC'\'cr. I1Hmbl'r of "'" iOLL,(ypes nnd ,izcs of regi,tered Inland

Vcssel:; are ,ho"n ill Table 2.2 & 23 rc,pccti,dy,

2.8.3 Fl~et of C"a"tnl \'o"cIlJlldn M:\IJI. In addLllOn to th~ Inland ve"el" there is

a fleet of C(""lal \~"cl,. ",hi'ell riO' "lOll!, tilc ",,,,,1. These ar~ Trawler>, p"s,cnter ,'essels,
Cargo ,~""I,,, T""kcl". 'lugs. L1IILL'"'etc. II'hich "'C .Lbout 2000 in "umber, Out of (hos" 345
hne been r~glSkrcrl \\,i',11~lcL'e'llltile ~'Ll,-inc Llcp'lI'lment (MMD), who had lilltilled the

requiremenl, ot11,'" arc ei(hcl 'l\\'"llin~ tor "l'pruv:,l or not yet registered, TIle detailed dala
of (he Coastal ,c>scb illC1,,,ILlll~It ,m In,. tlll\ke,-, "ml Ul1go ve,sd plying in Ihe co~stal are",
and registered \\,th Mi\I[) I"" been ,hown in Annexurc H. The Con(~iILcri7otion in (he

coastal ['outes hL'1wc"" Chill,,~ollg-Dlwk,,-ChLltagong, Dlwka-Mongl~-Dhaka and

Chi[("gong-:.,1011gla-ehil!"goll~ L, 110\\ " L'calLIY,T11e container C~fgQ' in (hese lOute, arC

tra"'poned no" ci Il1n lb'OLL~'

h J ai Is ()l n)"d< 11o""u>" of (he mhe,ent economic "dv""tage of
tran'por(alion Ih1OlIg1l "'.'lC'-"")'-;, 11:e fll;)ll'c containn cargoc, through
conlaincr/multipLlL'PO'C ,c"vl, \l'dl kl\'e " lllg oharc III Ihe," routes Containe, tenninals in

Cbiltagong ports" I" ,,1L'~ad}n LIl'IlIJ [he I)hlL~" eOI1l"iner tCl'l11ina1 at l'angaon are no"
Table 2,6: No. "f Varioll' 'rypcs or l"l:lnd a"d C"""Ial Vc"d, aclllally Build in
L"cal Ship) anl "f Ball.:],,,1".,It since La ,I 5 Year,

\,,,,,<1 It.LIlgl'0' 1M'; llW7 2009 ~o of Vo"'!

Ro~i,to
,1\\ 'I ! Nil of V""t
"a\\('Il~" Buil~in r,d ill
bIt, DO~ in

, ,,, ", 38Y"

", "o , " m

10.25 P'L\ 5 2 2 61
Speed lh"t
2 Small DL"eJ~~, )-10 35 25 !O3 330
-
,
3 Oil "i'"nke, 500-7000
" , o o o , " 8 22
2
FelT) i OO.SOO
, o 01 01
, 1

, o
5
6
("me Boal
To\\.ing bum
I 10-50
.10-iOO ,
,, ,, oo o o
o o "
o
, 2
20"10() 1'",- 2
7 Y"teh
8 1'our;st \'c"cl 2(J-lOO Pax
, o oo oo °01 , 2 3
9
Hi
PilOllluaL
Wale" Bar[\c 200-500
,-JO
, o o o , o"
, 1 2

""
\. i,jILn~ BO:II ~n-I 00 I'll"
o
, o 1 o
:1 01
o o , ,
6
RCSCLleShip
Snnd Carrier
IOO-SOO
;.O()_. ~on 150 I (,0 4() ,0 100 °I 480 I 1702
" i , 35
"
>5
!Jarge
llo' ital Vc",cl
1 200.S00
30-20()
!5
, 1 '"o 3
o
,
3
o
,
'0
,
o " 5

"n IVIQlOl Boat

Cargo Vessel 150n.30G(1
Ilj_ 31) o
',0
,
2
'>5 30 20 50
5
255
, "
1346

'8 MOUImg Vessel ~ 5-'0 o

S ,
o o o
2 26
2
772
" PaS.,engcr\'~"cI
I '(ill-12nO 1',1\

I
", I 0 01 o ,, S
20
21
\\'orkBoaL
Waler'lax,
10':'(1
50-500 , 0 o "o o
, ,,
2
27 Survey Vc.,'cI
2.1 S"h,agceL\l1e
31). )()O
31).1 ()IJ
,
,
0
0 ,
o o
o
o
o 2
l3oJ\
24 ILL!, Boat 21l-700 2 , o o o 34
,
25
2(,
Dumb ])rcd~~,
Dumb Ga,,,"
? ()- I
20n<JIlil
no 16
I5
(,
I
20
]()
i
n
2
)
", ", "
27 :,clrp"'pclhl H!O-~(II) , I
13,,,gr
I ~IHno 110 13'1 50 40 31) I (360)
2!!J Pontoon
(,9
22J Small Lo"nch I 1~~Ic'\\21\0PJ~ if) I 27 R 9 20
30 Oll"".' I .1' 3(1 I
_TO 1011\'",wl
45 15
Ruild;1I
10
Local
25
Ynrd 1294
125
4505
under COLl,llllctio:l. H Lngbdc:,h 1111"
11dIV(\!~r 'I ral1,p,'r! C 0'l,oralloLl h~s already conducled a
fea;,bihly stlLd) I'm COLlI'H"~",'c<sd, ill lhne I'OUIL', pr~p~l'ed ba,ic tksl);lI for lOS TEU

multipurp(js~ W"lain~1 \,~"d, 1m Ihe'l IOllte, ""d pr~parcll the tender do~um~nts for
procurcment of 2 c()llll\ill~' \'c"cl,. AgelLlla good number of dredgers will be constl'Ucting

by gO\'ellllTICnl \ t" Y ,oon In kc"l) tl". Ii\'ers l1avi!,-'Ible l'he puulic sector o:wmi7atiol" h'l'e
a huge neet of pa ,,"ngers' ,'csse Is, pllol ,esse 15, il"'l,cction bunches, ,,~n icc~ 'd,ci" tugo

el~ whicll "ill b~ "",Ill nlwll,cr IJS~ 520 millioo 'tile price of!he lI111eg13lCICd
vessels will
be another LiS$ ?()(lI) milllOn, So ,i,c of Ihe im'LL<lL'J'm Bangladcsh is "bOUl US$ 5000

million in the iLl,"nd ,,,,d co",,,,1 ",,-,lcs,

2.9 CAI'ABlLnmS OF FH\' SEU.Cn:n SlIlPYARDS

2 9,1 Tile d"t, coll~d' 0" ,i1("I', th" I ""'<! of Ihe t'K" I ,hipyard, !lave iLl,hgCIIOlJImethod of

cons!l"ct,oo aLLd'"'~ "01 cLjuip",'d ""'L1hlile ""'11. "",(hinenes 'llld cg"ipmcnt Icq\lired to
nuild standard ,hlpo, Some :",[;)]Iil'c "hil'h1lldillg ,'l'lL\itLCSill gl'e,'n CLddhave neen Ihown

in Fig 22 Thesl' ,hipJ'lL'd, i""" Ill"inly cllg"S,'d 1Il l",ildlllg and lcp:ming of inland and
coastal ve,sds up to .1.5(1()1)\\'1' (lkad \V"'ght 'IOIlI1:lgC) Recently few of lhesc shipyards

attained the c~p~bil'l)' (0 ,"'"lLlbcl'J:C ships oj ji).I)OO DW'!' Some modem shipbuilding

act,\'ilie, h",'e bel'" ,hO\\Ll '" I'I!., 2:. t'C\'OllU" of 1:><1II," y~a" of lop nine Slllp}3rds of
B"ngladesh bas he.C.Ll,ho\\'n ill 'I"L,k 1 I. The yc,LlI: re\'enue of nine }'m-d, IS liSt 46

mIllion. which cal< b,' C<'l1sicklvt ,h 'IU",;,01 ;Ile lot,:! y~arly rC\'''"lle of entire sllLpbuilding

ac!ivitie3 ur Bnt\gI1J~,h, So Ih, .\'C",-I\',c';cnue "j n,,,,gladcsh shipblllilting indn"tr)' is USS

115 million "ppw,im"!eiy. Tk l'~\'CI1l11'III 2{)()(, "ii' "boll 1 ust toO nllll,on in 2007 wa,

about USS 137 mLilioll o"eill",t 1I12()1I~\"" "hem! tj", 187 million.1l1e mewgc growth of

the illd",!ry in lc',-,,,' of re\'enl'e l,' 111-1\'\';"

T"ble 2.7: 1.",1 -' .n"".,' I<ewn 'Ie ,,! l.e"d "'1\ ;-;iLlC~hi p)',,[(1) of Ilnl1g1adesh

Sl.
-------
Namo Or11l<' H","""o
-" _. -----------
ltc\'"''<)(' I(,','c,,,, ,--- H,e, Oll"" I(O,'CllUC I(OHllIlO Yoarly
Shipp •.•l i11211ll4 in 20115 iJl20()(, in 2l)07 ill 201lR Ln,l A"crngc
)"0.
(\lillio" Fivc ({c"c"ue
(\lilli.\,1 (.\lilli,,,, • (lr1itli"n
(~IL1lin,
(;\lillion
US~) {'s,) llSS) lTSS) llS~} Yoar,
(~l~;ion IJS$)
US$

" '" '"

I 15
150
35 '"
3

"
03 J ~~ 107
0'
()~
15
30
5
6
04

07 30 6
05 lOS
1
--
 06
,p
nEW
I)hal'n
-
0<
I- ---I
04 06
U" I 02
00
4
20
2
4
~ ])"c~\ar<1 1 1 1
~
~ICI)])L
i'iESI.
i
0<
02
_ 0'
03
----j 03
03
I 114
J 113
105
104
15
<5
)
3

c
Yearly
Rc\c,,,,c of
nine ,11;""\[01-
u
"
,"_J '"
-----
~5 75 224 46

-"
 ----_., •

Nlture, Ure 8< loaIl Sblpbuildlng Local Sblpblllldlllg I.JIOld T~ditktn

,
"1
Shipbuilding •••• Lonl Game

Minull Catting of Plale

38

J
 • •
•
l

Most Primitive Way of Sblpbnlldlog Mlllo.1 Way of ShlpblllldJllg

L •
M'lIl1rldll~ of Small Ship!' Foil Min •• ' Pllntlng
CompCIlltlltli

Shipbuilding ~ Nallll'lli Pbl'llOmenoll

-"
Rh"er &. Tndll:lollil Sblphlllldhig

FIg 1.2: S(lms Pdm1th"e Sblpbplkllng Adtvitin pI Gmn Fltld In S!ngladnhl

Shlmnh

"
I ,-
. '\ •

.'.,,...
.'

. .. ,. ,. -J •
• ".
•• •
:- ,
• •
•

Millufacture of E~port Quality Ship Well F.qlll~ Sblp"'.Y .lId B"IIlldlngYnds

Big &; Modem Asm:nbly H.n CNC Calling Midline:

PlaIr PIOl'fnlDl Planl Hruy Ikndlng M.rhille

40
Ovrrnnd C •.•nf & Co,'effd Vard MalluradurlllcfRtpalrillll or Propeller

•
•

wi
Modern Cllpola Fnrnare Modern Matrrlal Pllle:tsslllll Plallt

QaIlIy COlltrol & Standard of Work Comp1ic:ated Wort wltb Care

Modero V.rd Actlrltln W11blDodun Vud FlCllltie

I
1

Prodnctlon of Sa Going Tug Productioll ofF.sf W.ler C,..ft

S.fcty ofWor1t

42
Quality Supervision Busy WorkSc:hedule

Making B••looQ.!!Bow Long & Strong SlipWllY

Cover Hall Room & Well Working Attractive Locatton of Shipyard

Environment

Fig 2.3: Some Modern Shipbuilding Activities in'Export Oriented Local Shipyards

43
:..." ..... '.
••••••••••••••••••••
," ••
".'"

: ...................•... .... :. ,,''':;

• •
•

•••••••••••••••••••
.... ••••• • ••••
...... "
"
••••••• ..............,• ••• "

BANGLADESHI SHIPBUILDING
POTENTIALS AND CAPABILITIES
3.1 GF.I\f:RAL 1J\"TRODlJCTIO:'-I
3.1 Bangladesh 1m, an extensive network of natuml navigable waterways and a long
coastline, whieh play an important role for currying goods and pa;sengcrs all the year round,
She has got glorious hi5tQI)' & heritage as a ,lupbuilding nation since cmfted bodie, have
Jlootcd on wmer in ancient time, Again Bangladesh is a mmitime nation with a considerable
ar~,. of sea. abundance with living and nOll-JivingreSource". Shipbuilding is one of the oldest
industries in the world indudmg 1)allglade,h, Since it, inception, m~ny changes have heen
brought "bollt by nUmelOi1Senlr~preneu"lmOliv"tors involved m the arena of shipbuilding
histo,y in the world, With lhe passage of hmc, technology bused bigger and fa,ter ,hips have
come up lllstelld of ship, run by sails. Bllt shipbuildmg industry of Bangladesh failed to keep
p""" und consistency due to lack ofl'lOper government and IJ1inte initiatIves (50). This ha,
uItimately caused non-penetration in mternational business as " ,hipbuilding nalion,

3I2 The demand tor ship> both in global und 10ca] arena have been continuously
lllc[(>asmgand thi" trend are hkc1y to continuc throughout the modem em due to expan'lOn
of ;ntemallOnnl trade. To fill this inereosin~ demand, the shipbu ilders of the world are facing
acute shortage of skilled manpower 'I heir capncit;.,ha, cxhou,ted due to high lahOUTcost of
this sector Bangl~desh h~s every possibility to tl11the gap, Country has ull potential to
capture a considerable share of incre,ulllg trend of ,hipbnilding mllrket as welL Bangladesh
m"y feel cncouraged to comC iomard in laboUl intensive shipbuilding sector due to thcir
ahundant manpower, India is not suitable for the market of "nal] sizc shipbuilding ""
mentioned earher and Bangladesh ean try to h",'c a shm~ in pl'oces,ing orders for 6000-
10000 DW]' and 15000-20000 DWT multipurpo,e ve"e1s a3 wen as smull all(l medium size
t~nker market (5 I).

3.2 IlA,,'(;I.AlH:SIII SHTPIHjlLUlKG POTEi'.nAT '

3.2.1 nangh,dcsh has nemendo<ls potentialities in re.,pect of ri.,ing trend of sl1iphuilding
cap"!:nlity,By depending on unique nature, convcn ient geographical advantage together with
aV(Lilabilityoftechnic"lly knowledgeabl~ personnel, ,kilkd und semI-skilled workforce, "nd
long past heritage, B"ngladcsh has ,t~l1ed it, journey towards export. Presently this industry
i, manufacturing diIT~renl tjpCS of vessel, a, per the local dcmand for inland and cQa,ta]
ll'~nsp0l1ation Bangladesh h", successfully exporlcd lier forstoccun going ship and six other
eluss ferrks and boals to MozambL(juc, Co,;t-e[f~di\fe human rcsources, compamtivc
odvantage, like simpl~ importation facility of raw material" duty free markel access for
 <"" ••,

Bangl~dcshiships to other countries etc have encoura!;cd Ihc Bangladeshi entrepreneurs to

come forward in thi" export busmess. Consid~ring its huge capab,hty to develop country's
multi-dimensional produdion bale through de'elopmcnl of linkage industries, Bangladesh
government is taking positi,e initiatives and has expre."ed keen interest to promote this
,ectoL

3.2.2 Thc ships, which were made by th~ woods of thi, region. WCreof excellent quality
lhat has given extra altractions to the purcha"ers and users. Since 15" century, Bangladesh
,tarted to build the sailing shIps. But with the end of ,ail;ng-,hip em, thl> industry "ent off
an,l gmdually ""s closed. After the rnolullonary dCI'clopmellt"f sleel bodied steam-ship,
the ,hipbllilding indmtry of Bangladesh could not domin"te milch in the world-slupping
seetoJ M"l'e than filiy local shipyards (including three public org"ni~ations) are main!}
eng.agedin bllliding and repairing of inland and coml"l vessels. up to 3,50n DWT. Rccently
f~wof lhe"e shipyards have attained the capahility to man"f"ctLJlelhc ships of 10,000 DWT
and that can be upgraded up to 50.000 DWT ;n future (52) Presently more than 50,000
skilled workers and 100.000 semi-skilled workers arc employed ill this industry (53). Even
today, majority "f the workers in Singapore and Dllb"i ,hipyards arc [rom Banglad~,h,
According to the estimates, more than 100,000 Bangladeshis are no" employed in
Smgapore. Kmea and Dubai shipyards. Some of them are n"w well placed in mid level
management

3.}.3 As per local shIpbuilders, 15% of thc IOtlllcomponents in lerms ofm"ney can.be
manufactured locally for a class~d vc"cI, wh~r~as,50% of the total component, in tcrnlS of
money can be manufactur"d locally for inland/coa,tal \'essels and the l'est can be processed
eithe, f'om new foreIgn market Or sccond hand mllrket at Bhitiary. P,esently, even
na\';garional aIds, ,""reh light,;, electrical switchboard llrc manufactured locally for cia"
ves>cls, Con,"mable, ~iz. Electrodes, Gas, Acetylene, LP cle arc produced hy B~ngladesh
Oxygen r,td. EngIne slartcrs ~nd baneries arc locally manufactured C"mpres.'NS. motor,
,teel plate, deck cqu;pmem. capstan, wlllch, anchor and e~bk, bush for shaning propeller etc
aTealso manufactured locally. Rahim Sleels Lld. pr~scntly ISproducing ,ted for class vessel:
whi~hhas heen eenilled by GL, a mcmber oflACS. Mechanic~lsteering g~"r and ch~in can
be con,tructed in ,;orne shlpynrds, Furnil]][~'" finings, plywood interim d~coralion. galley,
deck cqlllpm~nt, stainless sreel buoy ek ar~ constructed by the yard,. In 2003, Highspeed
inSlalled thc cooling elJamber for seagoing trawkr. Except main cnglIleS, generator,

46

,
-t,
propulsion plant and auxiliary machinery, local shipyards or SMEs can provided pumps,
rudder, rudder shaft hydraulic steering gear, winch, marine cable, battery, bush, stem tube,
electrode, gas, bollard, fairleads, paneling in accommodations, fitting and furnishing. But
those need to be certificated by lACS. Local SMI<.sview thaI, the local components and
,erviccs that are manufacturing or can he manufactured/supplied by Bangl~dcgh; including
the eonsumables items for an exporUlhi~d%s ves,el are "' f"'lows; welding rod, gas, bubble
plale, angle. grindmg store, grindwg macbine, short blasting. cable, pipes. steel plate~,
furniture, windows, doors, insulation material. bollard & capstan, fairlcads. ;tairs and
ladders, masts, hatch cover, ~nehor & chain, wmehes, fish pro,essing equipment, rudder,
propeller, pain\, nange", manhole ~Q;"er,shaft, hush, v~lves, pipes, pumps, cleeme panel &
switchboard, electric cable" some eleclri~ fit1lI1gs,r"e figbting fittings items, mechanical
steering gears. smal1 & medium gcalS, blocks "nd chain cable. ,orne e5Sential casting items,
some other:; de~k filting, and componenls,

3,2.4 The gap between local shipyard, and in!crnational standard ,hipyard, has assessed.
The case of tl1econstruclion of Stella Maris by Ananda Shipyard who l,ave the capacity and
capubili!y of building 6 \"eS3elsa yem nnd thc first ship exported 10 foreIgn eOllnlryhas been
studied in tenn, of quality and delivelY schedule of the ,bip. The shipyard Own"". ship
owners and cla%ification society were interviewed and data has been collected on the level
of competence of the shipbuilding and that of desirc of the ship owner/buyer. l\ecessary
questionnaire was formatted, procedure of con,truction was revlcwed and level of manpower
of the builder at the time of construction was identified. Availabihty of machineries during
constructLon, were al,o inventQl'Ied Gov!. regulalions on various issues like 1axe" customs,
Lie opening; hanking malte" dlll'ing the time of construction were reviewed. Critical point,
responsible for any under quality 0" varialion of work required and delay in construction etc
were identified. lhe skill., requi,ed to grow a, international shipbuilding inJu,tries have
been assessed. Overall l'esult and perfonnance of local shipyards and S\-lEs are quite
,ati,factory. Stella Moon was delayed in I y""r for delaying the supplying of thc equipment
anJ ,everal chang~' of design by the owner.

3.3 LOCATIONS AND BASIS Of ASSF.SS:\-lFNTOF SIDPYARDS

Th~re are more lhan fifly shipyords found in Bangladesh and a nundred ,,[shipbuildels or
contractor> and rnarin~ workshops actively involve 1Jlshipbuilding activities. Most "f \he
shipyards are located in and around Dhaka and Chirtagong. Almost all inland!coa,talil,ay

47
crossing ships are constructed and repaired 100"11yin these shipyards. A consolidate !lst of
shipyards on the basis of field survey ha\'e been prepared by the authors, that has been
shown in Annex J, For assessing the actual eonditioll of the shipyards in terms of their
capability and facilities mcluding technical equipment, infrastructure, human reSOurceetc"
field survcys and visits \~ere madc and lhe complete process of shipbuildiug practices for
various shIp categories and for ditTcrcnt sl~i:)y~rd,wcrc observed To describe and assess the
shipyards, various typ~s of dala such "S, luslOryof yard, shipbuilding & repair capabi1ity and
type of yard, shipbuilding are", docking f"cilillCS,location, yard layout, workshop facilities.
NDT & DT facilitics. workmg cnvironmcnt. lighting arrangcmcnt, ,hift system, av"ilabi!lty
of cranes, winehe", tools & m"chilleries, lransport facilitie" handling facilitie" electrical
gcncration capability, warehouses, workcl's rest & recreation facilities, personal safety
arrangement, lab(}ratories fa~ililles, h(},p,lal or erne' gency lreatment equipment. lire lighting
facilities, vibmtion and noise countermeasure" communication facilities, lire ,tation and
canteen etc, have been con,idered.

3.4 CATEGORIZATION OF BAN(;LAllESHI SHIPYARDS

During data colleeti(}n, il Ims been found th"t most of the local y"rds ha'e indigenous
method of construction and are not equipped with th man. machineries and equipment
requil'ed to build intel'llational standard ships. Most of the shipyards are mainly engaged in
buildmg and repairing of inland and co"stal v~,scls up to 3,500 D\VT. fu:cenlly few ofthcsc
Shipyards specially Ananda Shipyard and Slipways Limited (ASSL), Dhaka and Western
Mmine Shipyards Limited (WMS), Chittagong have attained the cap"bility to m"nubcture
ships of 10,000 DWl" But it is very much possible that, Bangladesh will he able to huild up
to 50,000 DWT vessels in near future If the shipyards are considered on the ba,is of modem
shipbuilding reqllirement, facililles and human rCSOUl
ce, the shipyard, of Banglade,h can be
categorized into 5 broad heading,
Category A. Shipyards, which arC ready for constmction of, slups (Small & Medl\lm
Category] of ;ntematiooa] standard,
I, Ananda Shipyard and Slipways Um;ted, Dhaka,
2. Western Marine Shipyard Llmitcd, Chittagong,
3. Khllina Shipyard Limiled. Khulna
4, Karnaphuly Shipyard and Slipways (P,'t) Limited, Chitlagong
5, High,peed Shipbuilding and Engwee;ng Works Limltcd, Nal'ayangauj,

Cntegor~' B. Shipynrds with wme renovation & expansion prob'T1lmwill be ready for

48
construction of ,hip, of international ,landaI'd,
1. Dhaka Docky",,1 and Engineering: Works Limited, Dhaka,
2 Dockyard and r;ngineenng Works Limiled, Narayanganj,

3, Chillagong Dry Dock Ijmiled, Chittagong.

4 Narayan~anj t.ngm~~ring and Shipbuilding Ltd, Narayanganj,
5. 13asundhal a Sleel and Engin~ering J ,td, Narayanl!'anj.

6. ChirtsgOllg Shipyard Ltd. Chiltagong.

Category C. Proposed shipyard, "hi~h arc coming in manlLfacllLre of ship, of mtematlOnal

standard \'elY soon,

j, Meghnn GrollI' Slllpy~rd Ltd. Okab

2. Khan Brothers ShipblLildmg LImited, Dhaka.

3. Rangs fi,her, & Shipyard Ltd. Chlttagong.

4 Desh Shipyard Ltd. Rangs Group, Ukab,

5, S.A. GrolLp Shipyard Ltd, Dh~ka.

G. Bengal F1cctl'ic Com I,ld, Dhaka.
7. Elile Group Shipprd LId, Dhaka.
8, Lub-RRef Bangladesh Ltd, Dhaka.

9, M"I1llmus ~hipyard, Dhaka

10, Soulh J\.lmine Dockyard and Shipbuilders, Ohaka,

11 Sea Resource Shipyard. Chil~gong.

12. KY Steel Ltd, Clutlagong,
13. RU""~TGroup of Companies, Dhaka.
14. Mak Shipbuilding. Dhaka

Cale:::ury D. Shipyards which are m"nlLflletmwg ships for local ma,kel (inland« coastal),
nOI intcre,kd for international market; hul wIlh some renovation & expansiOIl pl'ogmm will
be able for eonstructio]] of ,hip' for mtemation~l standard,

I City Dockyard Ltd, Soulh Kerallll!anj, Dhllka

2. Hm,ain ])"ckY~l'd & Engineeling "orb, SOllth Kctaniganj, Dhaka
3. e.ladari pur Dockyard LId, South Keraniganj, SOlLthKeraniganj, Dhaka
4, Ag;ragoti Dockyard, South Keranig"nj, So"th Kcraniganj, Dhaka
5 Comilb Shipbuild"" Limited, SOlLthKeralljgat~, Dhaka
() East End Dockyard and Engmecring Works Limited, Dhaka.

49
 7. Bismillah Dockyard Ltd. !\Jrayanganj.
8. Haque Dockyard Ltd.i\arayanganj.
9, Sundarban Navigation Company, Barishal.
10. Cres~~ntN~vigalion,Barishal.

Cate;;~r;'::' Remaining ,hipyard", which can make inland and eoa,tal vessels umkr local
regulatory standard,

3.5 TYPF: OF SHIPS CAN BE Rlj[LD &. EXPORT BY LOCAL SHIPYARDS

3.5.1 Capnbility of Local Shipvnrd.<for Co,,,tructiotl of Commercial Ves~~ls. On the
~ap~b1l1tyof The kdlllolog:i~alwmratibilil}' of ,hipbuilding, pa,l &. present lrend, abllily of
the existing ,hipya,ds of Bangladesh and the interest of new Ulmer, in shipbuilding, it is
anticipated thai Banglad~,)1c~n bllild nriou> lypes of ships (small &. medium takgory) for
both mland ~nd sc~ gomg ~nd a lisl h~s shown in Table 3.1. rhe pre,enl facilitie, willln,,;l
the size of the vessel up to 10,noo DWT, bm ifexpan>lOns programme of various sbipyard
al'e taken in consideration, Bangla<k5hwill be able to bmld up to 50,000 DWT vessels in
,
"e"r fulure (54),
Tnble 3.1 Type, of Ye'leh enn he build in Rangl"dc~hi Shipyards
SI Types of \' rssels US'lally Build in Ballglarkshi Shipyards
1\-0
1 Mult;purpose vessel or Coaster
2 Dry Cargo Ve"el
3 Pas~tnger Vessd
4 Dredging Barge
5 Tanker
<} Landing Craf!
7 Tug
8 SUPT'I}l3arge
9 Ko-l(o Feny
10 Hospital Ship
II Tour;" ShLp
12 Deck Lo~ding Barge
13 Supporl V~s,cl
14 Crane Ilmt QI'Floating Crane
15 Speed Boat
16 Hydrographic Survey Boat
17 Double Decke, Passenger Vessel
18 Troop, Carrying Ve~.,el
I 'J Cal'go Coa;;ter

50
 20 Inspection Vessel
21 Self Propelled Barge
22 Pontoon
22 Deep Sea frawler

"
22
['ast Patroll3oat
Container.e"c!
26 l'il01 boal
27 WotcrTaxi
'8 Catamaran Vessel
29 Small \Vm 5h1])

30 Dump Barge
31 Sc;,mic V."eI,
3' PleaSlll~ Cmft
"
.3 3
' V"rim" Re,earch vessel
'34 Conwin~r Carrier
35 I Supply ~nd Logistic Vessel
36 D,.~dGing Ship
37 Pollution Control Vessel

3.5.2 Capahility of Local Ship~ards for Cunslruction ofWarlltips. In World War II

USA shown that, the shipyards, which are copable of construction of merchanl ships. are
vel)' much capable of conslruction of war~hips in case of nanon"l requirement. The cun-enl
commercial building orderbook of Indi"n Cochm ShIpyard, 'Wonh.Rs 20 billion, c(}]],ist, of

24 vessels, including a combination of merchant ship' am.! an aircraft carrier [or the Indian
::-'bvy. SImilarly Bangladeshi local shipyards are well capable of con<rruction ,,[ small
war,hip'. If wC look b~ek to the past, public shipyard DEW Ltd has constmcted landing; craft
vessel for Banglades11 Army and tug boat for 13angladesh Navy Again private shi"py~rd
Highspeed Ltd h~s eOIlSlfucted troops carrying veosel for Bangladesh Ann}. 1\1 presenl,
Category A & B shipyards (a, menlion allow) are capable ofmanufactur;ng ,mall ,,,,,,hips
like hrg" "p"trol cmlt, offshore patrol craft. fa,t attack craft, fleet tanker, even
corvette/frigate with ,ome expert super'li.,ion fmm international arena

3,6 EXAMI'LE OF FEW CLASS VESSELS f}F.SIGl'O/RTJTT,T Ii\" R.\i\"CLAJ)ESII

'fhele nr~ f~w local consulting finm, who are capable of de.,ign and solve shipbuildmg
malter- in -lOme e,tent. Again BURT and shipyards have own design capability amI SOme
local shipyardide"ign fLnn are capable of design and manufacture of sma11 and medium ship
in lome C;;'lcnt. E"ample of [;;''W classed \~;sd, that have been b"iJtidesign by i"cal ,hip

51
design linm (55) fur foreign shipbuilding and ship owners 'ln~e 2007 has heen shown in

Table 3.2 below

T3hle 3,2: Exmnple of few Classed ve,"cls I)e,ign <lml Build in local ship Design
FinllslYanL, for foreign ship oWnerS since 2007

I"
, 1\ n.
~amc 01 the Vessel ('b.'s
1

r; 7S 1\1 DIving ,ll ort vessel D1\V

61 )1.1Off,hore supply or support Vessel LRS
I'
,
.; I~ M Di\,in' support "essel
SO T BP A,nehor Handling Tuo
D"N
DNV
5 SO M Sei,mic Ves.,el uNY

,
6 38 :-'1 Buoy 1 a\'ing Ves3e1
Caruu,cl Combi Tu
AilS
18\'
8 82 T BP .\nchor H~ndling 'j ug D]\V
6 581\'1 Lighlenng Su ort Vessel ABS
110 13() r Bollard l'ull AHTS ADS
II 60,8)1.1 Well te,t Ves>e! AlJS
II I2007 -Jav~ C"nstructor Cmnc L'pgrade All~
13 49.5 M AJ-ITS AilS
19 38 M ASO Tug ABS
15 78 )1.[Lon MPSV LRS
>G 46 Bollard pull A.S,D, (A"imuth Slem Dm") Tug ABS
n 130 r Boilard Pull AHTS ABS
75 'J 80llard pun AHTS ABS
"
19 4~.~ 0.1l)i,ing Support VcsseJ ABO.
'C 12000 T Liftin Capacily Floahn~ Dock l.RS

3.7 CAI'ABIUTY 01' LOCAL SHIP IlRF.AKI"'G INDUSTI{'I'

Sh1p ,c"yc1mg mdu,try or Bnogladesh started ii, [uncl](}n 1111972, Pnor to lhat two Or three
,hip' wcrc scrapped during Pakistan period. At prcscnt, slllp.r~cycllllg aCIl\'ilLCS a,e
conducted hy R4 yards in an "r~a of about 10 square km, starting from Sitakundu to
Bhalimy. Chittagong (h", heen shown in Fig 3.1) Bangladesh is the 2"d bIgest ship.
breaking indllstry in (h~ world (56). 'I hey are the prime ,ouree of fa'" m"t~nal indudmg
pb Ie, fmme, ,liffcncr, longiludlllal, pipe, old engine/generator, and n~n auxihary machinery
and most of (he ship's component, are u,eu for ~omlruction of ,nland and coastal \'csocls Ln
local ,11ipyurd,. Abollt 80% stccl of the total dome,;lic use of Bangbdcsb comes from local
sh;p-hre~king industry. Thc indu,t,y i, pfOvidmg almosl 70 pCf('~nt of Iron as scraps to the
countrywide rc-rolling slcel factories (57) notable features of ,hip-brcaklng lnduotry arC
mcludes'
 H.
., ,~ .. . --
In absence of any domestic SOllrcc of i,on ore, Bangladesh has to depend 011

steel from serapp~d ,hip, to feed ,ts rG-roliing mills aL\dsteel factorics. Almost m'o
milliol1lOnS of irol1 from thi, indu5try is consumed per year.
b Engmes, gcncrators, boilers, elec!,ical item" pump' and other ship,'

components, furniture, rdng~ralcr,;, llH'-co"ditioncrs, <'Ic. of ship-brcakmg industry

are nlGstly reused country",ide wHi, ,ay low COSI"
c. Ahout two million people are di,eclly or ind,redly employed or related in this
]Tldu,try.

d, Task of dismnntlmg slups IS COI,ied OLlt mutl\lally and alt1m"gh basic

prolcdlOn ilCms su~h as hdmcl>. glo,cs. goggles de. arC pro\'ided to the' workers,
unfortunately work-related acciden!., could not he totally eliminaled wh,~h rC>uI[~d

several fatal accident

3.R RF.L.j.TIVF. LABOUR COST FOR WORLD SJIII-'Blj[l.JllNG I:'-IIHJSTRY

Ai\'D POSITION OF n..•.•
:"lGLADESH
3.8.1 Lahour Competene\'. Lack of competcncy in thc arCa of labour ,ate, continuous
flow of eqlJipment and materials, yard cffic',ency, teehl\ologjc~1 enhancement is the main

problem fur cnd"nng III shipbmlding indlJslry. In comparison with othcr competitor, th"
labour ~o;l, of shipyard, in Bangladesh are vcry low. But prodllctivity ot' Ra]lgl~desJ\l

labour of .,hipyards is lower than the modem ,bipyards ahraad Bangladeshi shipblllld"r, do
not benefLt from an integrated "econdary supply chain as othcr competitor, like China, South
Korea, Jndia etc, are enjoying Bangladeshi shipyards me not tl,lly aware of modern
kdmologic"1 enhmlccmcnl be~alJse of their non-attendance in ,hip e'p0rl busincss fo, I,mg
time. ()n the other hand technological enhancement, through invention me being considered

as the only way fur staying in ,hipblJilding industry' by the giant nation, of th" ,eclor.
Owing to inf"nt smg" in modem shipbuilding arena, efliciency of lJanglade,hi shipyards is
far hehi nd compared to it, other competitors of the world. Availabi lity of chcap labour with
other opportunities encourage, Bangladesh to move tCI\\'ards setting up of ~xpon-oriented
indu ,n ie,. But in case of onward mewing 0 t. shipb\' ildwg sector 1'0"export, prodllctivity of
Bangladeshi \'.ork force should be con,idcrcd as all impOrl~m iSIUe in Older l') k~cp the cost
dOWll Othcrw,,",t may nOI b~ possible to stay in tl,i, sector fo' ~ long; tim~.
 ~\ '"\~l-------
\, I ~ Ship Break Yards, Chittagong

,
"
",
N

,
,
r,
I
+
I
, ...
NOWIP Is
",',
"
~ "

;',
,
~
,"
",
",

Fig 3. J Location or Ship breaking-yard Jnduslry of Bangladesh in Chart (58)

Table 3.3: Daily Labour Charge in Bangladcshi Shipyards (Including Fringc benefit
and I\bnufaclurcr Overhead) 1* I L:SD~69 Taka (Apprllx.)] (On ground data)

51 Type of Skill of Daily Daily Hourly Hourly

No L'lbor Labor Charge Charge Charge Chargc
ror 1.lleal for Class for Local for
Ships Ship' ships Class
Shi )s
I Foreman HIgh 7,20 9.(,0 0,90 1.20

, Techmcian
Skilled
High (,.40 8,00 0.80 1.00
Skilled
3 Speciali7.ed lIigh (, 00 8.00 075 1,00
Welder and Skilled
Ga> Culler
, Speciali7ed Iii ,,11 7.20 9,60 0.90 1.20
" Machine
0

Skilled
Or~l'at'"
3 Welder Skilled 5,80 7.44 0,725 0,93

6 Ga, Cutter Skilled 5.04 6,00 0.63 0.75

, Machine Skliled 5 52 7.2 0,69 0,90

Operator
8 FIUer Skilled 6.40 o 00 0.80 I 00

3.04 0,38 0.38

" Helper Semi
Skilled
3.04

10 Casual U",killed 2 00 2.00 025 0.25

Labour
(';H: Average hourly labour charge In B"nl'ladcsln shipyards I' US ~ I ,00

Table 3.4: LabO\lr Produoti"i!}. Rate of Various Coontries llfoun(l the \V orld (59)

Country RELATlvr; LABOUR RATE COllntry RELATIVE LM<OllR

R.ATr;
R311°ladesh
Tndia
~eell to be calculated':
I
Canada
Japan "
12
Chinn I to 2 I)
I'"
S1t\ 'a ore I 3 France IJ
Hong Kong 3 I Denmark I 13
Taiw""
South Korea
J
6
Norwa
Sweden
"
14
U,K. III Finland 13
USA 10 Germany
"
3.8.2 Average Hourlv Lahor CO,IS in Current {ISS in World Shipbuilding Lahour,
iuc1uding Fringe Ilcnefit~. Average hourly lahor CQ,I,in US~, including fringe benefits
for different shipbuilding nations i., shown m Figure 3.2 and Table 3.5 These amounts are
the latest ligures availahle from the Bureau of Labor Stalistics (BLS), Their currently
available dala for shIpbuilding are only thf(}ll~h2002 ~Ll[ltheir lare,t [Lgumfor Korea i, for
1993. '[ he BLS dala also pro\'ide figure, for ,evcral other counll ie, but it ha, not inc1ud~,l
any countries that are nO longer major shipbuilding nations. The figures in Ilalic, are
eXl1'al'olation" hosed on thG BLS parallel report of a'cragc 'W~gcs111all transporlation
eqlllpmcnl manufacturing, (i.e., caTS,tru~ks, pla,,~s, etc" as well as _,hips)' this is not very
scie"llfic bulll', beller than nothing rhere are no daULfor wages in Chine:;e shipyards, We
have I'u"ued ,everal 1}(),Slb]eSOurCGS
~nd fonnd nothing A, far "3 ,,,,,,!able infoTIll"tion,
we can tell, Chinese shipyard 'Workersget less than USSi an hour in ca.,h wages, but ~re
1000/" supporled by the .tate' ]m\\' one might cu;],'Crl tILLSinto a figure that could be
~ompared to thOle below LSreally compiic"ted,

... . .. __
....__
..._ ..._.__
.. ,... w~~!.s In Slllpbuild;n~

'"
n;
-U.S,A.
_Flnl.nd

,eo -Fran«
---.Germony
125 _lt~ly
-J.p.n
S20 . -
-Koru

'"
'W
"
W
- ,.~,

Hg 3.2 A,'eragc Hourly Labor Co.,j, in IISD, im'luding Fringe Benefit!. (60)

Table 3.5 Avcrage Hourl\', L~bor Costs in usn, including Fringe llcnefits (61)
l'etlr U.S.A. Fi"I",,,1 F"Illlce Germll"y Italy .lapa" Kurea
1975 (,.g4 5.43 5,17 7.10 I 5.87 3.93 0.60
1976 759 6,10 5,65 7.51 5.46 4,'0 0.76
]977 ~ 08 6.40 6.52 8,88 6,07 5, II ].40
1978 9.03 6,57 7.89 t1.l6 7.?2 6.70 t ~3
1979 10.06 8.17 'U5 12.R3 7.H7 6.46 187
19HO 11.27 ~.75 1074 14.25 I 9.19 6,77 1.82
198t ]2,80 9.4.1 12.S0 6,85 2.U(,
83'
'"
 1982 13 48 ~.79 8,95 11,60 8,32 6.96 2,18
1983 IH6 8.42 8.97 11.65 8.03 7.70 no
ln4 14.27 8,79 8,86 10.68 7.76 7,80 2.22
1935 14,(,2 9.14 8,86 10.93 8.13 8,12 2.33
1986 P,72 12.89 11,50 1496 11,04 11 37 2.23
1%1 14,36 15 (,7 13.52 18 so 13.73 12.57 2 63
1988 14.52 17,73 14.09 2V.OS 14.65 J4.83 "7
1989 14,82 18.97 11.49 19.53 14,90 14.(,2 5 n
1990 15,56 22.48 16 J(, 24.13 17 89 14,96 6.24
1991 16,66 23.10 16,73 25,1<) 18 81 17,75 7.44
199? 1 !.5 8 21 , 12 18.14 28,50 19.4? 20.38 8,03
1993 18.26 17,96 17.12 29.22 15.80 23.28 8,39
1994 18 09 20.28 18m 29.94 15,83 25.72 10.28
,
1995 187" 2('.55 20 ,0 3S 20 16,37 28 76 11.95
1996 I 18.39 2' 4') 19.86 3282 17.88 24,90 13 90
]997 19.13 2791 17.80 29.05 ]('.96 23.27 11 82
1998 19,24 22.?4 I~ 13 27.46 16.52 20.95 9.1(,
1999 19,65 21.52 18,02 27.09 I 16,04 24,05 11.64
2000 20.13 18,60 16.91 24.66 1421 24,09 12.94
201l] 21.04 18,61 17.23 24.28 14.02 21 .31 1l.48
2002 21.74 21.00 18m 2560 15.29 21.58 15,21
200J 2272 ::7,69 23.46 31 41 I 18,69 73 37 16,58
2004 23.18 30,86 26,58 34.94 21.19 24.96 19.18

1able 3,6 Ratio of \\' ages io Shipb lIildlng to \Vages in All i\Iallufactllrin~

U.s.A h"lm,d [,m,ce Gmna"y U"ly ]apml Korc"

Y""r ,HJ A"
Sblilg,
'"
Mix.
Sl;I,llf. A"
Mis.
Sbl,IS. A"
Mis.
Sblilg.
All
Mix,
SIJi,ig
Mfg,
Sliidg
Mfg,
S!lldg,
'"
Mr~.
1975 68.1 Coo 5,43 4,61 5.17 450 ,'10 6,31 5,87 4.67 3,93 J 00 0.60 0,32

19~0 11.'7 m 8,75 8,2.\ 10.74 8,94 14.25 11'5 9.19 , R1'>
, .n 5,52 1.82 0.96
7.6~ 8.12 6.34 2,33 ,~
1985 14 6' 13 01
'" 8.10 8 86 7.52
15,.1~
10.93
2413
95~
21.38
8.13
17,89 J745 14,% 112.~0 6,24
1990 1356 14.Q, 2'.48 21 03 16 36
,,~ " 71

."
m, 16.66 15,5~ 23,10 21 2,'; 16 n 25,19 22,63 18.m 18,32 1775 1467 7.44 ,1,61
'1992 17.58 16,()9 21.12 19.92 18,14 17,47 28.50 25,38 19,42 19,35 20.38 163fl 8.00 ,n
1993 18 ?6 17,96 16.63 17,12 16,79 29,'2 I ?4.44 15,80 15.80 23.40 19 21 5.M
~ 29,94 25.86 15,83 1589 25,88 21.35 9,85 6AO ,
1994 J81l9 16.87 20.28 1906 18.1l4 F63
1990 18,24 17.] 9 ,6,53 24,] 0 2l1,2~ 20 OJ 3520 3065 1637 16,22 28.':9_ 2H2 11.21 7.2,'
1996 13.39 17,70 25,49 23.41 1'1,97 19.~3 V.8? 31l26 17.8~ 17.75 25.15 21 00 1237 8,22
,~, 19 OJ 1827 21.32 17 91 17.99 29.05 26,84 17.74 17.57 23..16 19,54 7.86
199fl 1919 'lfl.M ? 1 66 Ifl.'" 1828 28,'11 26.76 1727 17.11 2143 I 18.29 5.~9
1999 19.20 21 10 17,98 2618 16,60 I 20.fl9 6,,1

57
3.8.3 Compurison or Lahor Cost an,ll'""ludivitv. C",t at. labour is about 20-30"",
01 the cost of ,hlpbuilJing in Asia am1 30- 50% III Europe and America (62). Workers in
USA Shipyards receive about USS 25 p~r hour, "h~rcas the hourly wage 10 some Chinese
Shipyards is about L'S$ 5,00 and most {)fthe Indian slllpyards is about 2.00; South Korean
ya'"s, US$ 23 and GeTmany y"re!>.US$ .12.Only Jap"n's hm"ly wage of USb 2(, e,ceed,
U5, lab0r coot, !:'"isting ave,age Iabo", wage of Bangladesh is shown in Table 3.3. It m"J
b~ noted that labor costs "rCdirt;',ent for lo~al standard ,"nilmternational ,tandard (Classed)
for Bangladesh! shipbuilding, It ISal,o ,een thai a\'erage labor rate per houris lJS,$ LOO. On
the other hand Iaboor plOdllctivily of IrndLtionnl,hipbu Lld,ngnatioll3 has shown in Table 3.4,
Laboo, productivity 01 Ranglode,hi ,hipyard i., lhe lowcst undoubtedly (which has show'n in
chaptcr-7), Rnt it is deaT thot, mere lralllll1g and long:-lCml investment will obviomly
improve lh~ product;,ily. as it had happened lor China & Korr~. Hourly lahor wage for
different catcgoTLc,;of labor is shown in Fig 3.3 and rig 34 ,h""s tbe comparison of
h011l1ylabor rale with other co@'ric'lf\yeal'20IlS

Hourly labour rate for local and class

shipbuilding

$2.50
----- -
-,.1
• $2.00
; $150

I
,o $1.00
$0.50
$0.00
,
0
• , "• ,
0 , 0
.~H
.[H
,
E
, ,
, ,,
I 0

• ,"
0
I ~ .~ I
• 0" " •
0
0 •
0
0
I
0
"
•
0

•
I
I £ 0
I 0
0
• ~
• " •
,
0
0
0 0 0
0 • •
0 0
•
~a
~ 0
" 0 0
0
I
0
•
0

I 0 I
0
0
• ~
"
0

labour type

Fig. 3.3: Hourly J.nhor ratc for loral null internntiooal ,hipbnilding in Bnngladr,h
 -- --~-
- . -
~ Hourly labour Charge for Dlfferenl Shipbuilding N8tions 1

, Il!811 ~ . .~
lli~~
i 1!811
_ _,-~
_=_ J:::)- ~ "
_,,_~_J='
,I;h,- - - - -:c ' I
~
~ tP# ,~'S> CJ'~'l>~v.-6"<> ')",,'" ~
~ ~
'(Q>1"
~
<:fP /<f!'.
,,;'"
Nlmo of Iho COUnITlo$

Fl\:. 3.4: Comparison or hourly Lalxwr mIt including Fdnl:~ Bcnefil~for different
Shil'h,lildinl: ~:llions

3.9 AR ~:A!' OF '"1 n: r: ICIII: l'OSSlll1 L1TIF.S FOR llAi"G [.AnESl t

3.9.1 Shipbuilding Ims shifiro from Europe to Jnpan 10 Kon:llllr.d nowllday~ it is shifting
to China, Virmnm ond India. The single mOsl driving force behind this phenomenon is lower
labour COSl nnd o\'erllead. Therefore the world shipbuilding mnrket is moving cast and
presently South Kon:n and China tuvc the sllan:s afllS ~n:entl.georlhl: globnl morkel. The
,noSI mpid growth in mllr~cl shan: 11Mbeen observed lind planned is ;n China. Vietllllm has

also nI'Pn:ci~ted this prospc:et and they have been establishing ship)'lIlds e\'en with
government subsidies. In 1991. India also identified this sector \IS \I plOSpe<;live one lind
prh'llte entrepreneurs sl\lned eSlllblishing Shipytlrth with government suppon lind by now
th1:eountry hns eome to 11recogni2abk position in the world's shipbuilding eountries. Yards
in Chin:l. Koren. Iodin. Sing.1pofC and Vietnam are booked up to 2012 with e~uption nf
~me >'llrds. which hnve hel:n nITeeted by the ellncell3lion of order:; due to economic
reccssion. It is estimnted thnt for unusual serapping \IS well 1IJ need for shipping due 10
population growth and growllt of world total output and eonsumption. shipbuilding demand
increases 5% annunlly and totlliannuni shipyards building ellp;'1ci!).being abcu! 8,.,. of the

S\.i1Jldingnce\.

3.9.2 Bnngl~dcsh hilS a rCi:ordl'd history of expon of ships. Even in lnte 60s Bnngladesh
through DEW l.ld. (Dockyard and Engineering Works. a l'ublic Sector Enterprise of
lhngbdesh) c~poned ships to Middle East. Karachi shipyard in PakiSllln hIlS been e:cponing
ships since decades. mainly to Middle E.ttS!.China I'U::.The pionttl Mnnnging Direetors of
both DEW Ltd and KSY were from German. Norwegi~n shipbuilding e~pc:ru in mid
Seventies also u::chnklilly assisted DEW. Bangladesh has good relation with Middle E8Sl.

"
 A,ian and Europ~~n countries and i)ccau,e the intcm~tional Donors, like FINNIDA,
DAI\1DA, ORET, EU, J~p~n, World Bank, IMF, lJl\, JEre JlCA cte. have already bccn
acquainted with the prosped of slLipbuildmgin Bangladesh it is anticipated that the eXIsting
Shipyards will soon b~ able to leceive the share from the internat;onal market. Ag"lll ,man
size calgo/coillbined c"rJi~r. "Ulll~III'" CJJ':OJ. laL1k~r~nd s~ecial P\l1~OSCs~n'ice wooe!
market will be rem~ining op>;n for ;:-,,;,,~bdes!,i "hipJ~cJ:;, Pres~nt global situation of
environment~l m,arene« will indllG~ Bangladcsh gowmment with intemut1on~1aid to
manufacture a goo,l nHmbel' of rlredge" for the purposc of impro\ ing nnvig~bil;ly III the
loc~l rivers

3.10 1>ln:S~:i\'"rIN\'ES 1'M£NT TRENn

Despite many advanees in the developed 3nd de,eloping countrics in tenns of innovation.
enhancing plan of production, hILr)1'1lle,ource de\e\opmenl and m,nogclllcnt ctc,
dependence on labour ha, been lll~vitab1cfactor in .,hipbui!ding Sector. As One of the mOot
populated cQuntries of the \\ o,ld wilh J'ailablill y of skilled, semi-skilled and easily train"bk

, manpower und also long hcritagc, Rangladesh has come fo,"",ard in shIpbuilding SCCIQr.In
the meantime Banglade,h has ,1I~e~"funy cxpol1ed different types of vessels ta farci~1l
countrie, (jennani,cher Lloyd. an internatIOnally I'ccogni7ed Memher of Cb"ificalion
Society h", declared l:langlade,h a, shipbuildmg and Ship Exporting Nation in SMM
Bamhurg held dming September 23-26, 2008 in G~nnany, TIle demand for shipbuilding i,
pre,ently surpluses the capacity 01 thc shipyards As a re;;ult shipbuilding capacitics are
rapidly expandmg in Asi~n Countnes, In B~nglade,h f,ve ,hipyards already rcady to build
export ship and another SlXshipyal'ds arc now ill different slage, af development. Another
,lozen of shipyards; wilo are in'-olved in building and ,ep"iring of ml~nd ships are also
dc\doping faeilitlcs for building ocean-going ships by enh~ncing thei, yard capacity aiming
to cntcr into export market Moreover few I'ropo,ed Shipyards "rCguing to he sUlfaced ve,y
soon with rcmarkahle shiphuilding quality
3.11 RELATTOi\" RF,T\VEF.;\; SMALl. & Mt:DILlM ENTERPRISES (SMf.,) AS
CO\'lPOi\"Ei\T & SF,RVICF,S PROVIDER <I."Iil SIIII'BUILDING T"IDliSTRY
3,11.i Ship i, a vlTsmlle unit of production anJ it can he used as " floating city, So 10
m"n"f"cture " ,hip, it need, thou,and of components and herc make important rel"tion with
SYlEs, An wrt of household to offici"l to ,~fety and comp0l'l related item';eq\lipm~nb "re
used in shlpbUllding process So th~re i., a great relalion between ship componcnts "nd
Sl\lEs. Small "nd Medium Eme'l"i,e, (SMEs) have historic~\ly been one sHlple, of the

..•
.' .,
cnterpri," landscape within e<;ollomies gtobally. SMEs occupy a unique position III
Bangtadesh, especially with respcet to their combined contribution to technological
devetopment and PQVel1yalleviation. This sector plays an increa,ingly dom;n"nt role in the

technology twnsfcr & di"cmination and th~rcby economic development of the countty,
They have ,omc cumtwint" in !en", of nnance, t~chnulogy, 1l,~nil['.~",en1or mnrhting
Til~," enterpri;", pby ~ ~nlcla] role in their p11enQmenaleconomic growl, •. A "'ide variery

of fl, "" fall under the :'1MBcategory; for ex~mpk handiclafts, agro-based & agro-supporh\'c
indusuiel, t,sherie" poultry. dairy, leather proce"ing and leather goods manufacturillg, food
proce"mg, tcxlik3 and garmcnts manufaoturing, chemical>. ph~mlac"utica)" light
enginccnng industnc8 (machmcry and machine parts manufactllrill~), hortl~ullure, rubber,
pb,tic, serieultme. small electrical goods mannfac(uring, touri,m. t,a"'pOltation, IT &
computer soft"are, shiphuilding components manufacturing and ,n on I.mge inciu,'lrial

cntclJ'tiscs ""t"ire ma,<ive capital, infrastmchlre, tedmolugical know.l\Ow ~nct oe,er

resources, which art not c~,ily nvallable to or manageable by entrepreneurs IIIBanghdesh. It
i, often cbimed that the S~IE, are more efficient thnn the latge.scale entel]"i.,e.' ill tern" of
'cost per employment'. They are also more IaboUT-intensive tll\lS being a major ,ource of

emplojmcnt generatIOn. Producls such as j;~brics, silk. frozen fish, shrimp, meal, milk, milk
produds, ete. arC produced both On a brgc scale as well a, hy 3Mh; bllt thcrc arc certain
SOCIO-CCOnonlLC
a,h'mltagcs that lhe SMEs cnjoy over the large scale indu,(nal "nils, Thc
advtmtagcs ar~: lower capItal inv~stmcnt, lowcr job-creation cost, ,horrer ,tart-up period,
lower capital output ratio, lo"er energy cost, moderate infmstmctme requirement, promotion

ofent]epreneurial talents, more environment friendly producllon proccss, and promotion of

ag:ro-industr;at linkages.

3, 1l.2 Since SMEs are relati~ely more flexible than the large.seale en(erp] ises, they can
make 'mannous contribution to the economic dcvdopment of least developed or a
dc-eloping country pruvl<kd they ar~ as;ist<:ll with modern technological know-how and
supplicd with manpo"er having nec~",ary and up-to-date technical and managcrial skills,

Tod"y, the kcy to 'UCC"'" is to produce qualily products and services at" compcllllvc price.
This is. however, not all easy ta,k. In the fnce of violent global competition, enterprises need
to be prcpanx110 adopt modem and emerging technology ill the relc\'ant fidd, cooperate and
form strategic alliances "ith other companies and the R&D organizali(}m, m"intain
flexibility to adjusl 10 ,'hanging customer demand" and optimize ,esourCe allocation, rhe
Asian tigers such us SlngapOte, Taiwan, South Korea, Hong Kong, Malaysia and lllail~nd;
which were once cconomlcally simIlar to the majority of the J.ne, h"vc lnade giant strides

61
 in the patil of econOlllLedeve lopmcilt by establishing and promoting SME, (partie"!>,,ly light

engineenng industries) through pri ,'~te entrcpreneur.;hip. The government of Bangladesh a,

well as the donor comI\llltlity attributes immense importance to the development of smoll
and medium entel)lns~s bccnuse of their enormOllS growth potcnhal. The counlry h", still to
build up a l'J'Omi,ing: industrwlt",dJl,on. ThOle i, a greot interest in S~lL, n.' a mOlor l'lun\:

of p("'~rtl' reduction in Bangladesh,

3.12. PERSPECTIVE OF 51\11':, IN BANGLADESH

3.12.1 Thcr~ lS lnck ot infOllllation about total number and types of small fIrms pre,""tl}'
existmg m BlLngladnh. A rough estimate with a for~~astll1g model shows tll~t th",e an:
JPl'roxim~t"ly "i~ million medmm, small, micro indu,tries in lJanglade,h wr.ieh employ
thnty million pe0l'l~ directly and indi"'dly, which accounts for n% 01'the total indu:;trial

bbor force in the COHntr}' "l'hi" sector is "ho r~,punsibie for cr~ation of over J3% 01
mdustn"l \uh", ,~(hlcd good;;, In addition, evidence ,uggCSI, that thc'n' arc OVCl347.000
~Oll"ge industrinl "mts a"d" b'g~ "umhe] of hand loom and power loom enterprises. Some
data "ith a natlOnal ,cope th~t arc pertincnt to characterizing SME, in Banglade,h as of
2001-200] ale pre,ented in rable 3."1.There arc some 78,440 private-;;ector e,tahlishmenlo
ot'\'arious sizes in Jbnglade,h with some 3 5 million workers cmployed in them The urban

Rmgl~dcsh "CCO""ts lor some 60% of units and 76'% of ernploym~nt m the p"\'at~-seCtOl
~ntcrpm",. Ruml Bangladesh accounts tor the rell. ')J 6% of alllLnits in Bangladesh belong
in the :S.\1Ecategory', \,.hien h",~ bct"tcn 20 ~nd 99 employees Jlowever, S,\lfs account
for only 44% of the total employm~nt of the entcrpmc sector. Private companies limited by

liability account torm st,ictly a wry small proportion o[ thc total numbcr of SME" in
Bangladesh. Table 3 0 shows the ,,'~rage employment per establishment within each of the
.,mall and medium classe., for urban and ruml Bongladesh in2001-200J, It may be noted (hat
these are weighted average" Th~ average employment per establishmenl [or ,m~ll
establishment, h", \al,,"s of buw~cn 17 and 20 workers acrm., all inalL,tric"

3,12.2 1\, pcr local ,bipyards vi"",. 15% of the total components mlerms of money can he

manufactured locally [or 3 da,scd vessel; but for inlandicoastal vc,sc1s 50% can be
manutacturcd locally, the rCSI C~ll b~ procured either new from for~ign ma,ket 01' second
hand market at Bhitwy, Locally nqde navigational aia" .,earch lights, e1eell'ical switchhoard
can be used for class \'esscls, Consumable, Items like, electrodes, gas. acetylene, LP gas, ctc
are prodllced hy Bangladesh Oxygen Ltd. Engine starters and batteries are locally

manufactured. Some small compressor" motor, steel plate, deck equipment, C31',t31\,winch,
"
62
anchor nnd cable, bush for shafting propeller etc are manufacturedlocally, Rahim Sted:; Ltd.
ha, ,t"rled producing steel for cla:;s vessel, which hag been cerlified by GL, a member of
lACS. Mechanic"l ,lcering gear and chain can be CQn,trucledin few local shipyards.
Furniture'" fLttings,flind, plywood interior decoration, galley, deck eqllipment, smin1ess
&\Gel hlloy rk ",." con"t1l1ct~rlill mo,l of lhe rcno"ncd s11ipynr'lk1112003. J-hghsr~ed
m,talkd thc eoohng chamkr lor their [ishin:r tr~'vler, for which they eon,tru"led the coil,
piping, trJwl dON, et~, They purchm,ed the main engines, auxilim)' cngincs, motor and
p\lmps, mdder, nLdder shaft, hydraulic stecring gear, winch, mmine cable elC as
recomhllOlll.d from Bhatimy ship-breaking YJrds, !:latlery, bush, stern tube, dewical
weanng. ~a3,bolbrd. Emlcnds."l1 panchng in accommodalions, filling and fi,mlshing have
dc,ne by them. They purcha.,ed the net from Kmea, Some lc~dlllgSMEs onLiSME related
orgllnizotions which are cupable of manufacture ship compon~nto have been shown in
Anllex L.

~.i2 J Local Shipyards and 5Mb view that. thc local componcnts and services that are
manufacturing or can be manufactured/supplied by Bangl~dcsh, mel"ding the consumablc,;
for an exportable dass vessel arc as follows: welding rod. gas, bubble plate, anglc, gnnding
store. gnndlllg ma~hmc, short blasting. cable, pipes, ,teel plate" furniture. windows, doors,
lllsulation m"tcri~l. bol1~rd & cap,wn. fairlcad.i, stairs and ladders. ma,ts, halch cover,
""chor & ~hmn, wInches, fish proce,sing cquipment, rudde" plOpeller, paint, flangcs,
manhol~ ~o"eL shafl. bm,h, vJlves, pipes. pumps, elcctric pand & switchboard, electric
cable" "Om~e1cclnc fillings, fire fighting fillings itcms. mechanicai slee,ing ~ears, ,mall &
mcdwJl\ gc~rs, blocks and ch~in c~ble, some e"entlal caoting items, som" olhers deck
fi\lin~"
Table-3.7, 1'illlllber of Units and Levels of Employment in Si\m.' ((,31.

In",,,] \Iio", Uri"", !In,'al Tot"l

Sm,11 M,d,"m br 0 ,,,,all M,di",n La!' e Small I
Mcd",m L",~c
U,,;', on (,8 % I 446
No of
% of Wil,l number
3~
~
,f) 9
41136
5, I
29,0
381
t.29 0,88

'" " '"'

of lIl\i" '" I '0 187,9
"'
EmrloYll1ont 14(J 4 211 5 171? (,7 5 t (, 8 85 85
.,
234,66
,1:'57. 2~7.4
,
1947.

% ., 'ot.1 21.1'; 0.0 48,9 14,8

" [•. 7 3; ,~ U .1;,(,
employ'"""

Table-3.S: A\'erage Head-Count per Establishment aero" Hangladesh's Industries.

63
 R.aciv_t(}-\\c,'" ";!P'" 01, 17,8 70.3 22.9 5 12.7 249,6
Wood. I,"~or & 'PO' " l"tI"o 17,0 6(,& 19.7 373.9 .1~II
ehc",,"', aL1tlPI",,,,, 19, I (,7 0 227 ,(,7,2 5~.0
,,; 19G g
Non_moralh, mllwral lIod\lets
F,b""1tod ~o'Jcis,,lectTloal and mc",,, of
2& 0
17.0 (,57 '"
203 ,p 5 '"
35.1

'''''''von 24 (, (,55 ,27 I 'n.J 58 9

.\I,","~ ,\11,1
m"""f,omro
\ ;,,1 "<" 1''' S," ,,\1 "';" os I, 5 66.0
6;.1)
I 'I.~ 2'1.1,)
2n4
oU
21,7
fiducot','Il'l\c,l;h,", , ! !" 20.1
,~II,ncl",,,,,> I 8,2 ,,,,]g 21,2 J~S 5 .14.6

3.\3 i\1ANUFACTURIN(; CAl' ABILITY OF SHI PlHm.lllNG COi\1POi\T,YI S II\'

RAj\' Gl ,AD ES I I

3.13,1 A ,hj~ 10a l"ghly compound "nd 1"""riQu, ,tmctu,e, both in lh~ ~onstrUc(lOn"fits

hull f,"m ~nd the mslallallOn of l\lachine,y. 1'he commcrcial and tcclll1ic~1conside,"tiom
,",,{[nire '10' only that the main machinery units shou1<1prov,dc rchablc and cfticienl
pwp"lslvc powcr1)ut al<o lhat lhe lar~c number of engine, ~u~ili~rie, 'lnd other ~qulpmcn(
are abo "ble to w,(hstand the dyn~mie loads WhLChlhe ship ,t",cture i., snbjee\ed due to

w"'e,. Ship ,tnl~lurcs mc ol,bjecte~ to v~'ying loadmg that result in repeated sn es,es c~u,ed
hy cyclic loading on some of the m~c1linery compo"enls, The operal,onal arca of the ship is
nlso not smooth ann well defined. Threfore, it needs high dewee "I' sen icc reliabIlIty and
performance, To meet these e~aCling reqmremcnts, the reliahility "I' d~"b'll, ITl~tcrin15and
"orkmamhip hllS to be ensmed and proven throllgh inspection during ITl"n"hclIlt'C and
'pecifi~d performance te,!.,. which ~re "tipulated for certific~li"n of these eqmpmcnts 11,is

is why shipyard, and c1~sSltic~tiQn.,ocietie, ,tel' m and thus the symbiosis is born bctwcen
them Tlw ,mimI' ancillary industlie, for shipbuildlng rall into following catc!,"Tlc, and they
require nper(i,e in thei, ,espective aIGas, Tl,c,c arc supplier> of:

• P"i'Tlc mover (die,el engine, ,team tu(1)ine. electric motor in ~as<: of elecllic

propLl1>i"n)
• Reduction gear,
• St~am hoiler., and eqlllpm<:nla"ocinlcd with boiler plant

• Slcrtl gcar compri,illg of ,haDing, pro~cllel', stem b~aring" >e~ls and assocwtcd

equiprnel\l

• Rudder ~ssclllblic, consi,ting "I' rudder, ruddcr stock, beari ng" etc.

• I'O\\tr gcnc",ting SCI,

• Ekct,iG~1 cqlLi~mcnl such 0, alternotm" ,wi(chboard" tran,fonTIers, di,trib"tion

p"nei<, electrjc~l cabl~s,

64
 • Auxllla,"}'machinery such as pumps, air comp'""or>. air receive", ,alves.

• Au!r>matiQnand contral systems.

• D~~k m~chincry such as wiodla,"," inches, moonng equipment. etc

• Navigation equipm~nt ,uell a, rnd~r, echo sounder, !\}'ro,cope, etc,

• C0:nmll"icntiotl equipment

• Air condilioning: ~nd refrigeration mochi nery, galley "W'irmGnl, de,

• I\la(eriob lik~ s(eel aluminum. caslings/lorgmg:s, pipes Jnd titling.,.

• WcldlL\gequipment, eleclrodes. etc

• Ca'l'en(ne;.

• Paints and anodes, etc,

3.1 3 ,2 Bnng:lndcsh has a long: experience in shipbuilding and naturally the component and
sen'ic~ "uppher/mmmfacllLrel lla, "Iso grown lil :m unorg:llliz~d mannel 'I here has been a
good g][)\\th of SME industrie" "llich hnve b~"n mentioned ahove The product,
nl,nutactmed by the SMF industrie., ale of good quality anu many pr[)ducts are bein[(

,'xpQn~d trom Bangladesh, AlthOl'gh the," SMh are mo,tty for laml-bnscd products. many
features of lhis cnginccnng production are common wilh tho," for n,"nn~ induslrie,. For
~xporl uTlcnl~d ,hips. the eom'~m"J shLpyards. some local steel companies l(}g:cther "ilh
,(}me local marine component manufaclurer, nrC nO" wckhng the Situation of small order,
th"t lm;e been placed in Bangladesh, Bangladosh ha, a big: fleet of trawle]s and coastal

ve"do, which are about 1000 in oumber. Mo,t "flile component> for the:;e vessels are eithel'
procllled from recollditi"ned mal'ket or from foreign ma,ket a, new There are mst~ne", In,,t
lire luc"l slupy,,,J,; hnvG Jone all the imt~llalwn work ()[ such ShIPS,Dhaka Dockyard Ltd
has con,tructcd lire cooling chamber for prescrvalwn of fi3h ami ulhcl' tittings fO' trawling

ncl. The ext,;ling: and propmed perc"nlag~, (}f cosl of ""ri"us items of loc,l and foreign
comp"nent' ond sen'ices af a sample C[)nl~inership have been sho\\n ill Tobie 4.10

Table 3.9: l'ercenl<tge of Cost of 3 ,ample npurteJ "hip (combj\l~ eargo-2850 DWT).

ExlStLTI~ I l',opo;ed
SI I,,", To,,1 ''" I c.c.'gn Locol% Total % foc.;g" 1,0,,1%

, %
; , I
%
, I
" DCSlg" DraWing
CI,,,;fic";1\
.5<

,,
",
I ;
"
"" "n"
S'od
4.3 l'tO ,t1stOI\,I,,,,
O,h,,, 'TI>ld\locrio, &
"'"J , ""
"
I ~5
"1"'PIll""',
L.b,,,,, & :Vlanpowu
" ", II , "
I
" " "
61
 H
47
FilHlIK i,,~<'0",
O'c<l,,,d
M,,,k', )
",, ,, "" ",, ",, "" ",,
~S I
ICO
'"" " '0
'10'1 AL 10i!
" ;I')

3, 13.3 'j be l'XUlmg component ~nd service ouppl iet's of Banglade,h a,-~nol yet or~ani2Cd

and not up 10 the quality required [or class ,essels "A~"DlfOJfew case" This is due to the
fact lh~tIhngbdesh had started C(}lls!ruc!;on of exportahle \'cssc1, vcry recently and the
requi remenT 1\11'components ll.,en in thousands of ;nbnd and coasl~l,~sscl>rq;Jolc,cd under

loc,il 'Cg:u1alLOllS
arc ,,0\ ot'lh"t st<mdanl. But nn imcrc51ing point;, th~t. the e-'peri~ncc "f
manufacturing of the local components. somet; me, mnllufaclUlcd by Ihe STreets;~e, is a.' old
as tile experience of ship constmct;,," in Bangbdei;h, \':h;eh may f~wh''''Grcd, alyeaf'_ At
lc~s! SO';, <'I-the com]JollCJlls/,;crvlCcsrcqmrcd to! COflS(ruC!LOn
of inlanJ"<'o,,slal vn,els ar~

manufaclUrcJ in Bangladcsh by "anous SME mdus!!ic, lha( "]so do olh"r (ypes of land
baled m1Ul"f"clUling Ihe re,( came, fraUl ellhe, reconditioned """le! or form ne"
rmcurement. i"langlad~sh has ~Iso a gnod base for r'erumtlon uf dC>lgn and drawing for
shipiJuil,ling, As there i, a full-fledged Department of Naval Archi!ectur~ and :Vlarinc

Engmecring in BUET, (he b'I"Ju"tc, produced h~r~ wIth some training can dn lh~ design anJ
drJ"ing job" 'the we"kne"es in (hi, respect are only l~ck oj modern software and the
dfccllve Iraine".

3,13.4 Banglade,h ha, a long tradition or shipbuilding, Thousands (}[;hips ha\'c becn so
far built in Ibngladesh in more thun lifty shipyards, These \'""els ~umpnse cOl\s!cr,
trawlers. tanb,,;;, cnrga \'e\S~ls, passenger vessels, tugs, barge,. recreation vessel>, feITl~"
etc, Recently Bangladesh ha, ,tarted e,porting ve>set., The lH50 DWT coml)ine carri~r

vessel, Siella l'kui, h", been already expmt~d (0 Dan;,h huyer In add,tion to pl'iv~te ws;els
owned by pl'i'"i" l""nu,. Bangladesll has g~od size of flee! nwt\cd by public ,eelm. "rhe
public S~clor u\\ ncr, of ,~"ds arc' Bangladesh Inland Wa(el' 'I rmspotl Authmity (1J1W I A),
!bnglndesh lnlaml Walcr Tr~nsporl Corporation (Bl\VTC), D~partm~m of Shipping (DOS).

[J~Ili\lad~oh TOllt1&Tl1COrp"fl,('l'n, B"nl,bJesh 1Z"iiway (BR), llallgbJe,h l'drokum

C:orpmation (B PC), D~~arhneLlI of Fore,l, D~parlmcn( of fisheries, Bangladesh Coas(gunrd,

Bangladesh Poll~e, Bl\ngladc,h Navy, Banglade,h AnnO', Chittilgong Port Aulhmity,

Mon,,1a Pcr! Authonly. Jamun:t Oil Company ~tc rhey have hundreds af\'essel "hid a;e
own~d anu mamlaineu by (hem, Due to the fact tl,a( Ibngladcsh hus a bIg jleet of thousands
of vessels in privale s~et()[ ~nJ more than 1000 ,'essels in the public sectol and Ihese \'eosels

ha\'e been C<Jn,;lrllcleJand maintained ill B~nglad~,h; ,hipyards. The component ~nd service

66
sllppliers have been grown out of their O"n financial interest. Because of the fact that most
of the vessels are not classed, the component and servICCsupplicrs have not grown up to
desired level in tenns of quality.

3 13.5 The main reason fm failure to altain the dc"ilcd kvel 01 (jualily in eompollenl and
:;~l"ice S11ppliersfor thousand of vessels built so far is nol da"d. Moremer, ,orne clussed
vc"cl during eonstrucllon has failed 10 achieve (he desired level of quality due to financial
reason or lack of desire. Thi, re,ulled m dearth of quahj,~d component and serviee supphers_
l\ece"ity gave birth of reality. Allhough the components and services were not done in ma;s
sc"le, it ISunderstood Ihat Banglad~shi component m,nufaclmas ami service suppliers win
be able to grasp we!! and m"nufacture at least 40% of component, needed for an "~porl
oriented "hips, if proper guidance and lraining and/or J air.t vcmu, e with some experienced
forei!\n manufacuLrel/'upplier of component, ,nd ser\-ic~s "'~ a\ailab1e. Regarding dcsign
and dlawing, which is about 3 to 5% of the total shiphuilding cost in general. B~ngl~dcshi
dc,ign fimls/companics havmg Navnl ArchItect and Marine Engineering graduate, with
experience of some simple soft\"are like, Maxsurf Professional, AuloCA 0; would be able to
g,ab a reasonabl~ share of the world market. Th~ biggest gap in this area is lack of
supervision and training. In some areas Bangladesh ]", done "cll in manufaetunng
components and serVLCCS
like dcslgn and installatlOn of system,. "hi~h werc requircd for
quabty. The level was suddcnly incrcased bccause in tho,e areaS (here wcre proper
supc,,-isiom. The m"nufaCluring per,onnel have tremendous ability to learn and they learn
qUIckly, whIch rc,"lted m manufacturing vanom m"rine components and ,ervICC,;includmg
pipes, plates, ful'tlimre, p"mps, galley, wmdo,,"s ~nd dOO1.insulation material, bollards &
deck titlings, f~irle,ds, stairs and ladders, masts. haKh covel, electric panel, swileh board,
cable and design and drawing' of international statldal~ If the local design/drawing
per,onnel me guided hy ,ome experienced De'ip,n ~.-1Jmgers ,md nrc equippc,l With
comp,tible software. they would able ,erve as per I'eqllirement of int~mmional standard.

3 ]3.6 )l..[o,tof the exp01ter shipyards, due to the non av",l" bllity of or8anized component
and ser"i~e ,,,pply manufacturer. they j,"ve either plOeured fun]] ahroad or have been
engaged themsdve, for nMnufacturing of the same. Manuf"ctuTlng thc component, by the
8hlpy,mb thcmsdve, sometimes hindered their mainstream work. On the other hand, somc
local "ntrcprenellT toke, challenge to produce somc quality items. As exomple, Venture
Gn",p, , local business entrepreneur has set up a nano"tech paint plant ill l3angladcsh.
IlowewL", the list of cornpon~nts/seryices for ,hipbuildLng, manul:lctured1supplied in

Bl\ngbdd1 and their respective manufacturers h~s been shown in Iable 3.10. The following
indu,trics ~,.c capable of manufacturing variou, components and services of ship,.

I. Ananda SllLpynrd, & :Shpways ltd, Dhako

2. H19hsJ'ced Slllpb" Lid!ng and Ellgineeing Work< I.imited. DhJb
3 Dhaka Dockyard and Engineering ',',;r"h Limited, Dha"a

4 Khulna ShLpyard Limited. Khulna.

5. K~ll1aph"ly Sl1irY~ld Ltd. Chltlagong.
(i We.,!ern Marin~ Sh,pya,-d Ltd, Chittag(mg.

7, .'\I:'G Engineering Ltd., Dhaka

8. F. I("bbcr l\1ac11inel ie" Dhaka
'). Habib H."bbtr "l~nufachlril1g, Dhaka
10. Po"ni Rubbel & !>Jam,factUl ing, Dhaka
II Rima Rubber & Machineries, Dhaka

12, Osman Machinerie,;

13. Chitla~ong Dry Dock Ltd,

14 Venture Group
15 SeaTecl, Bangladesh Ltd,
I(,. AI! llardware. Chinagong

I7. "'bedin Enterpris~, Chittagong

I8 Rupehan 1.lard" are, Chltlngong
I~ Chameli Engineering & Work>, Dhaka
20. lJ Twders, Chillngong
21, Shama Inlernllt ionnl, Dllnka.
22 KUlOk! Chain MUIlutacmrer, CEI'I':, Chittagong,
23. Fnergwac Ltd, Tajgoan, Dhaka.
24 J\.lilnms l'umps Ltd. Dh,1ka.
25 I'JrtexFurniWre Ltd. Dhaka,
26. l'r()goll Enginee,-ing Ltd. Clllitugong
27, Adn C0'1)[)rali()n Ltll, Dhakn

n Paradi"e Cable Ltd, DJlaka

29. Pulser Engineering Ltd. Dhaka
30. Green I'o"er Electrical & Electronics Ltd, Dhaka
J I Superoign lnduslrie, Eke. Ltd, Dhaka

68
32, O(obi Furniture Ltd, Dhaka
'.--
33. Rang, Elee. Ltd, Dhaka

34 Ornate Ship Design Ltd, Dhaka

3,13.7 Bangbde,h ha, fe" (housands of SME, wl1\"h arc mo,tly la"d based, which if
".'rr~i1ed and trained would he able 10 contribl1te ;n lhe m"llubcturing and ~l,;pply ')f

component, and ,e,vICC, required for constructlOn of ships. At present Banglade,hi

component manufaclurers can man"lilchlr~ 50% of lhe lotal mal~rial, machinerie, and
equipment of the local inland and coa,tal ,,",scls built in Ban~ladcsh This proportion for an
inlemulional classcd vessel to he huilt in Uungladc3h is at pre,,"nl 10-15%. which if properly

ventured by ~xpcneneed forclgn munuf"chlfe, con be lakcn up to 45%. Sharc of lhc local
contribulion at pres~nl by lhe BangladeshI shipyard, ill e~port oriented ,hip producli(}n is
"boul 40% of total Sllip co,1 It can be upgrad~d 10 70% a, well. Percentag,e of eo,t of u
sample cxporled ship ~I prescnt an~ proposed !la., ,hown in Tahle 3,9 above. n,ere ale .,ome

marine compon~nl and service manuf~clUrers and supphCIs in lJanglad~sh, most of which
ore <hipyards themsehe,. Th~ ~omponcnb (h~t Catlbe mallufaemred in l:langlmlcsh and the
n~me of the manufactUIers how hen shown in Annex 1\1, Some ships' eomponenls
manuf~etL1redby Bangladeshi shipyalds and SMEs h",c been shown in Fig 3.5.

3.13,8 Po~sible Bad:warrt T.inkage Indmtry. Ba~kwnrd linkage industry both of

hmd'''aIe and ,CrVleCSis most mtcgral part of thi., seetOI. Among them sOme arc low tech
and some are hIgh tech Wilh highly skilled manpower dep~ndent induslrie" Though
Bangladesh is one of the most populated countries of thc world. it i" still far behind in skilled
manpower due to lack of suffici~nl ;nfwstmclUle f~"jlitie,. Bangladesh has wme low-tech
backward linkage industries Ielated to shipbuilding which have not been approved by
maritime classifIcation wcieties. Considering "11 these aspec13, Bangladesh may pay
allenllOn lo ncccs,at)' support for developing ValiOllSsectol'S including the following ha,

been shown in Table 3.10 a, back\<ard linkage induslncs.

Tablf 3.10: T ist of Shiphuilding Compone"t"IScn'ice~ can be Y!nl1ufacture, in

,
finn'lade,l ,
Sl Component51Scrvicc
,",0
, Ship's out titlLngs (ti.lrt\LtLl,e,dool"S,windows, p0l1 hole, eyes, f~iL'lead,. bol1a,d,
ma,ls, ladder" stair, and gangways, wntiiotion ducls and grjl1s, tro!1~ys, funnel,
pipe finder, et~.)

69
 , Safety acccssones (life jackets, I,fe buoys. survival suits, rescue nets, rescue
baskets etc.)
I
,
J Marine lighting
Mmitimc sIgns, SYlllbols & Posters
, Anchor and cable
6 ).,hrine eleclric cables
, Electrical "nJ clCC\!011;Citems (s".itch board, paLld, cable. bas., bar, switch gear.
SOc,keL etc)
8 PIpes, valves,
0 Pumps
I ]Zopo,
'" lIngle (equal, unequallLnd 11,,1)
"12 Shipbllilding ,led pl~tc
U l'lllon nngs
14 Vm;OllS gel's
15 Maline 'pare pans
16 Fish extinguisher amI others p",cessing equipment
n Marjn~ technology including deSIgn. cOJIHnunicat;on and information te~h"l,iogy,
18 Chain, cables, blocks
1<, Fire light gears & appliance" ,.nlve", nozzle" etc.
JO l\1cchnmc.11 steering gears and acce"or;cs.
J1 C'p,tans and wmdla",
n Umh, propdlcr lock nut, check n\lt, ring'. dc,
n I Stmt! and I''''peller
24 Fridge, AC TV, D\'D, Fan, Electrical & Uect,onics hOl,,el101ds

3.14 5,UMi\1ARY OF STROC'lG P{)l;\(T 1" BAC'lGLADESHl Sllll'flUILDJNG

Because of its long history In maritime ind\lstry, 13Jngbdesh 11", all necessary tncililies to
eSlabhsh herself as on emerging shipbuilding nation in thc intern~timml arena. The prncncG
of ,hipyards, patticularly for long lml£ "ith large pool oj workforce is the m~in ,trcngth ot.
Banglad~5h ,hipb\liIJing md\lstry. The following are the a1eas of strcngtll'
n J Qn~ and glorious sl"pb'llil!ing history of Bangladesh en~oumges tlle
ennepren~ur> 10 ~OmCforw'~rd in shipbuilding indlL3lry.
h. l'[",cm'~ uf conVCTL[cntgeographical advantages. duty free market aCCC" and
easy impmllL110n f,wililY ck.
A Vn;lability of hug~, 1,otemial "nJ train~bk "orkiorcc, though th~y arc nol m
the intemationa! sland""J but il will take 1,tl1c time to ek,'atc them 10

i r.ternational Sl"nJarJ.
d. AV3ilability of wh,\<: color skLl1ed manpower in m"rine jield, Presence of
",,,""1 Ar~hileclllrc and Marine Engineering Department in BUET alld Marine

70
 Academy, w],ich have becn thc capabilities of producing 30 Naval Architect
and 180 Deck & Marine Enginccr every ye"1 respectively.
e. Bangladeshi workforce i, acclaimed to be dIsciplined, meticulous, hard
working:.obedient and quick kamer.
f I'r",~ncc uf the Dcpartlllcnl of SilippiLlgproviding opportnmly tu fill up the
deficiency of managerial pcrsonnel required for shipbuilding industry.
g. Local sbipyard, nre c"pable for conducting training com," in ordcr to
produce int~mntional standard "eldcrs. painters. foremen etc. For example,
Khulna Shipyard LImited is plOducing: 100 skilled persons pel"ye"r and the
B"ng:bde,h Teehnicnl Education IJmml has accorded permission to We,Item
Marine Shipyard to do the ,nmC.
ll, Management profe"ionals and cnglllcers of eLectronic, electrical, infonnalion
lechnology, compuler cnglneenl1g, communicaliun ~nd business
adrninislrat:'.m of th~ ~o\lmry arc quite c~pabk of performing the Job 111
relation with ,hiphcilding "ith ,ornc training or education.

Plesence of potential Sm~1I ~nd Medium Enterprises (SME,) and vanous

supporting induslries, which may contribute as backward and fonvard linkage
industries,
A,ailablhly of cost cffccll\'C human resources, of whom a go(}dnumb~r of
,killed m"npo"er mC nOWworkrng overseas,
k Human input constitutes 30% of the total value ofa ship and this is the mo,l
important r~C(or f", logical interest of building ships in Bangladesh It I,'

imp"rativc tn i"itiate and extend close cooneration belwecn practitioner>,

industries. academics and training in3tilutcs to develop a ,,,,tamable growth
ofth;,; industry in Llangladesh.
I. Presence of Technic"l lmtitute, "jIll 35,512 in(ak~ capacity of producing
,killed manpower "ith regmd to shipb"ihling industry,
m Ilanglade,h ha, got a very good riverine nehvork connecled to thc sea and
still there are ample place., lQbuild this lype of industry.
There arc il good number of re-rolling factories, "hid, ",es ,cmpcd MS
plme U3 mw material and can prodnce r.e\'! accessories fur shipbuilding
indmtry.
0, The emerging shipbnilding industry will strengthen the export diversijjcation
stmtcgy.
Valves & Nozzle!! Fire Fighting Fittings

Pu.m(lll' Impellers

Pipes ClIpstaDli

n
Pom~' PlIrt! Not! 6<Boltli

Shell Bearlogs Couplings

Pro~~r Sbnft&: Fl"ings

7J
Radder Stack

• I:.0UI
••
t

W.naGear

Flang" Heavy elec:trk S••.ltrh Board

74
 •
•

,'
\\
,
~~:
_.,
•
,
l
.J'

--- ••
• ,,.
,
'-'\.-- - ~l
.". - .-J
Hatch & Hatch Ct"'C'r noon

Steer & Grill

fht Hatch CO'"U

hood COIIllogClImbu

T[J!\Il'lIg Arnnumenl
Fig 3.5: Em ShiM' CoTftoonrgtl! M.nnr.mm! !Ty Lqp! Shlpn"" .nd When
9.ng\!d"hl Cn!!!!!!nl"

76
.'.'.'
. '
••••••••••••••••••••

•
•
•

• ••••••••••••••••••••
.........
..'.' .' '.••••
". .... '" ..' .'• ,
.

SHIPBUILDING MARKET ANALYSIS

AND PROSPECT OF BANGLADESH

77
4.1 ,",VALVATlO;'" OF WORlD SH1PIHnLDIr\"G Ii\OUSTRY A1\"D
OPPORTU1\"lTY FOR BANGLADESH
4.1.1 General Tntrodudion. Sea is comidered as bkssing to the maritime nalion,
with many a,pects, c,pecially 111economIc acli"ities and in transportation guods. Since
evoi\'ing of human ci\'ililation, it, activity tluo"gh S~a !la, play~d a dominated rol~ ill

shapHlg the world. Ijj spite uf the re\'olutionary development in tlie ,ur and road
tran,portati(jn, the s~a remain, 'u prin~ip"l mCanS of communicati(jn. Sea and water.bll,cd
tran,p[)]tation ha,e alway' pbyed a major role in lhe economic acli~ities of a "allon's life

and in the growth of eivilizalion (64), Keeping thaI lheme 11lmind, different t}pes of ,hip'
and thus shipbuilding mc1ustries have grown up in th~ world. 1\, far as world's trade"
concerned, almost 35% of goods are being llansponcd by the waler-ba,ed ~ansp",tation,.

4.1.1.1 Advnnlnge,1 of Ship, Shop has got a good number of adl'antages IIIean'."ing
the trades. few oftll~Tl1Hrcg.,cn bdow:
a, The ,h,p Can carr)' a illLgevolume (j[ cargo at a time. No "ther lranspOlt other lhan

ship "a" carr)' lhat huge cargo at a time.

b. 'J he overall fuel con,umption, are less than any olher transport,
c. It i, mOle economical to carry goods by ships than by any other mc~ns d. Ship IS the
most environmcnts fncndlj muod of lransportation
d, Patrol. gas, liquid and others dangerous goods can no! ,afel} lransporled by allY

olhn mood of lranspmt.

4.1.1.2 Advantage.1 nt' Shipbuilding. On the ower liand, shipbuilding has few

wonderful returns to"ard" nalion. Few oflhem arC as folio,,'"

n. Shiphuliding induslry eaLllyz~s lhe i"dm,trialintion rhis "as the case "hen SO\llh
Kmen initial~d and committed On shipbmlding in 19703, Mor~ reeCIlI case is China,
Became th~ nation lecognizcd the ,hlpbLnlding indu,try is a basic ",d"strwi ;,cetur that
promote, n su,tainabl~ economv.
b TIle industry is chamcteri~"d relatIvely as Jabor inknSJ'e, which absorbs large
numbet''; oflabor.
c. "]he technology of the indll,try 1SobtaLnahle ami rciati,'ely ca,y to leam and 1,andl~
undn the backgmund of internnlintion and globnlization nowadays,
d, Th~ requirements of raw mat~t'ials, eomronent, as well as appliance, for ,hip, by
lhe industr)' furlher bonst other major industrie,. for instance, shipbuilder, are one of

higge,t bnyers to ,leel "orks and machinery producers.

 e, The development of [he indu,try needs large investment on facilities and
infrastructures, which"" ill absoilltcly henefit other sectors,

4.1,2. Shipvard~ and Sl1iphuilding. Ships come out from the shipyard", hut the
demand of the ,hip ba,ICully lIcpcnd, on shipping. market. So, the I1tlClllationsin vol"me of
workl trade inevitably have prcdoIlli'lalll impact on thc shipbuilding busine,s, Be,ide"
technolog.ical changcs or innovations on navigation is influencing factor, One sample is the
case ofmuto! ships in replace of ,ailing vessels in emly day', another is conto:nerization in
1960,. Both changes largely initiated iluge dem~nds for ships due to improvcd eflicicncy on
transportation. In tum, such improvcmcnts in technologies or innovation, greatly facilttate
world tndcs, which result in mUch m(}rCdcmnnd f~r ,hip,. However, the charac!eri,tlc of
the shipbuildmg. bllsine,s I~ that tile changing of demand doe, n(}t,ullultaneously goes witil
tlle changing of >upply (65). When shipbllilding maThl is booming, huge dcnwnd will
imllute a new round of in; ~~tmunl for addLngthe shipbuilding capacity, but the construction
of ,hipb\lilding capacity require, time, which is normally longer than tlle booming period (}f
shipbuildIng market, therefore, when added shipbuilding cap~citie, "tc eompeted, the market
may have c(}ilap,c. In tllis secnario, new inve.,tment or added capacities become sunk cost,
and ha.e to bc kcpt to run. PartiClllally. "hen shipbuilding market is III down side,
govemments ",ually offcl' supports to shipbuilder" beciluse shIpbuilding industry IS always
e'lllsidered as stratcgIC indu,try to nntions. This i, to say, the dimmishing ofsllpply, that is
shlpb\lJlding capacity, mostly lag, hehind the dcereasing of demand for ships. Govemmental
;upports for the shipbuilding industry further accelerate the phenomenon '0 tilat tile
equilihrium of shipbuilding market i3 h~rd 10 leach in shor1timc (66). This largely cxplmns
over-capacitie, m shipbuildmg mdustly during the past decades,

4.1.3 Ship1Juildingl\farket. Shipbnihilnp, industry i3 c(}m1JinMionof three markcts (67),

TIley are new buildmg, ship S~rapP,ngand ship 1epairing market.

4.l.~.1 ]\'cw 1:I"Hding;\loIl'keL Ship-(,wner, buy ne" ,hips at new buildmg market.
Once an Older ofne"" shIp 13given to slupynrd, usml1y, a new tonnage i, launched m one
yc'" after ordering ,late. SOmtllmes, new ships require, longer hme to constrlwl ,,111chi,
dependent (}nthe COl\stmctl0l\complexity of ship type a, wcll as the length of order book
or the particulu( ,11,pbuilcicl',However, new ships will jOlll the freight m~,ket to compete
"ilh ~xislmg ,hIp, that lmde at ,ame market after eerlaln period of ordering by ship
o""neT'S.Tni" i, t() say; new building market is tlwught to be one of aspe~ts in rdaled with
 . +., .".

tonnage ,upply to shipping industry. Indeed, it is one of fmees to drive the shipping cycle.

In reality, when ,hip owners opcrate the ships allhe prime time of Freight malkeL higher
freight rates and strong demand of transportation lead to enOlmOU3profits to existing shIp
o'Wners whieh motinte the req"ir~m~nt for additional shLps so 11mtthey ~(}uld pursuit
benefits [mllwr. Additio",11ly, optimistic ,cnlimcnt and expectation I~ad, .'peculative

i".ve31",e~t or purcha,mg of ships at second-hand ship market. 'I hell, the pss:Qt, wLllsoon
sprc,od to new huilding market wilh the pnce of 3e~ond.hand ships increasmg tU()high in

comparing to thc prices of new ship" As a result of over ordenng of new tonnage, "I new
buildmg markel. ancr certain years, many new ships enter Fleight market. snpply
graduall} exec~d, the ,lema",], the shipping market collapse, \\,ilh 10\" freight rate. Iltakcs
time f(}l the malket to reslOre ~qlLlhbnum ot sh;pbul1ding m~rket ~s well fleight markct.
Onee freiglllmalket pich up again, the ,hipping cycle repeal, itself. so does new building

markd. It 1\ 'Worrh mcnllOlUIlg lrdgl11 levenlleS piny a major rok in driving new
;n'eslment; (}nship, and fin,\tly drivc shipping eyele, The result of fruitflll meOme earned
by "h;p ownelS ;s tramfelTed to :--Je\\Building Market. lhis is to say. the booming of New
Building jl..lalket mainly ref1ects hooming Freight market (oS),

4.1.3.2 ShipS"rappingC'larket. 11,;s markct is. almost equally imporwnt to

,hipping cycle in term, of adjustment of ovcrcapacity lOnn~gc,; (69) l'ir<tly.;n nOl1nal
years, this mar\.:cl is mainly for di'po3al of old tOllnages, \\hLch ~rc olltd~tert or older,

u",ally averagcly 20-30 ye~rs, A" a principle. [he price of .,crapped ,[Cel pby, a role to
dclCmline lhc number ot ships that are scrapped. Sccondly, when FreIght m"rkct is in
,Iowrtturn or extremely bad, which possibly might he ca"sed by ,,(}me cwnll such os oil
crisi, in 70's, in tlle context, thi, market perf,'rms as an only ""t1ct for the tonna!'.e, thot
aJ~eommerci~l1y okolescence, Be,t ,ampk is the tankers that were equipped with turbine
engines that cost mme fuels than ordinary diesel engines (70), When the price of ftlel
soared ';gnifieantly, such ships wem n() mOrCcommercially variable.

4.1.3.3 Ship Repair Markel. Bdsie~lly, ship rcpainng yard' offer m"intenancc
,erYleeS to _,hip ""ne" '0 thal th~ shIps can be always kept in p"'per cOnd,li(}n for
h",ine" ;n line with both regnlation, of lMO OJ flag "talcs an,) IlIil~i"mm standard,
required by c1ass;[ication societie" On this ~speet, thi, market has Ie,s imp~ct to shipping
cycle than both new building marht "nd Seraj)p;ng market, but still a, 0 main componenl
of ,hipbuildmg imh"try (71), H(}\\C"CC,Ship repair market ;s rebted to Scrapping market,
when the priee of scrapped steel is low, ,hip owner> might consider either to haw 4" or

80
 even 5th special surveyed for fm1ncr trades Qf might have tne ships converted for trading at
another market that is potential for higher revenues, thus, this market is ~n imp~cting
element to shippmg cycle, too In lcnns of shipbuilding, Ship repair market;' usually a
place where come from latcnt building cap~city, This is to s~y, the shipbuilders. sometime,
are worklng both at new shipbuilding and ,hip rcpair market \Vhen ncccssary, they coulrl
,omer! lhe facilities of ship repair to shipc"i!~:::g: (72). Th;, i, the ca,e wh~Jl the
shipbuilding market," booming.

4.1.4 Present Trend~ of W nrld Shipb uilding I ndustries. The volume of IOIaI
ships, ships tonnage and amount of calgo transportation hy sea are incrcasing gradually from
lhe early stage 0f world civiliLahun, The graph showing cargo-increasing rate of sea-home
trade lransportation in tt,e ,"odJ fm Lheyear 2002-0; ISgivcn in Fig 4,1. Thc western are the
pioneers of mouern shipbuilding inu",tries, )Jut, due to the lahour-intensivc nature of
b"siness, it forced Lhemel"stry 10bc shifted 10the developing and least-dewloped co""t,ies,
Many ot such indu,tries were e,tablished in Smgapore, China, Japan, Vietnam, Km€u,
I'hihpplOCS, Moiay,ia, etc. Ullt Lhcir backup inuustncs like m~ndacturer of engines.
generator, and otJ'cr machineries/equipments remained in the hand of lhc west, The East,
ho"ever, contin\lcd its effoll to !lOUTishthe mdu5!ry, including modernizing thc shipyard.,
~nd dockyalds

4.1.5 Opportunit\' for Rangladc,h due to Present Shipbullding Trend. The tradition~l
,hlpbuilding nations us~d 10 bm1d ships with high quality and all the ship owner conntries
"ere highly depend~nL un them. Traditional shipyar<ls used to maintain the quahty and
,tand"rJ of the ships ~nd for machinery or cquipment, tbey used to depcnd on the world-
renowned englneirnachineries manulaclnring industries. They have the capabilitie> to build
ship~ of ditferent dimension and OWT. Bnt due to lhe rapid increase in world"ide shIp
demancl, tllOScinliustl ie, have become uvcr bmdened and their scnedLlleshave already bccn
bo(}kcdup to 2020. As per p,esent statistics. the Se" borne cargo growth is increasing 6-S%
per year and demand of new ,hipbuilding i, increa,ing at tl1" rate of 4- 5% per year But the
~"lsti"g ,hiphuilding indnstTie; "rc not ,n a positiun to bndle this additIonal presoure.
l\omlally the ship o"ners or bll:Cr> "r~ '.Iways interested to build the ,hips Irom those
reputed industries But ," tradilLonal shipbuilding natIOns are overload~d and the rate of
demand i, incleasing rapidly d"y by day, they n",.~ become selective to bLllld new ,l,ips
They are not inwrcslcd to b\l\lr\ smaller ,hips of 25,tlOO nWT or Ie". So the
buyer<lj1lincipals of new ,hips of kss than 25,tlOOOWT need to ha vc look for an alternative

81
markets. This is the reason that allowing other nations likes Bangladesh and India to
penetrate the shipbuilding industry. The graph showing the increasing trend of demands for
new shipbuilding for the Ia~t 6 years (2002 to 2007, only cargo) has been given Fig_ 4_2.
World new shipbuilding contract by volumes in number of vessels and million DWT (2003
to 2008) has been shown in Fig 4.3 and Fig 4.4 respectively_ It is expected that this
increasing rate of ,hiphuilding trend ",ill continue to another era, i e approximate np to 2022
(73) Thongh, due to world recession neW building contract has slowed do"'n a bit. But. It
will corne to its original track within few months.

Year-wise World Sea-borne Cargo (2002-20071

,"
eo
---- --- ~ '"
e
0

~ '0
" +--0---- _
-------,-
--~-
----------+-----
;0
'e" e,
,""
0 - --- ,---- - ----j
--------,--- ---
" "'0
v
OC
2('01 200l 1003 ,00-1 2005 1007 lOO~

Fig 4.1: Year-wise Sea-borne Cargo Travel in World :\larket. (2002_ 2007)

Year-wise Demand of Ships Tonnage (2002-2007)

;~
'OC
W,
j, ,~ >0,
• 0.""."",,,,,,,,0"
ro,,,,,~,'IM,"G",,,
& "; ,~"",,,ol
~ JO"
W,
0
'OCL

Fig 4.2: Year-wise Demand of Ship TOllnage in World Market. (2002- 2007)
 C.,ntracting V.,lnn1(."$2003-2008
v••ss"',s
4.500
2003 ,
___ 200L!- ~_
4,000 ___ 2005
___ 2006
3.500
___ 2007
___ 2008
3.000

2_500

2_000

"1-500

-1.000

500 c"'",.,
/<.' ,I j,.C'
C,>"Ir<~cl,'ng ..••.
_I_d
0
J F }.'1 f\. .J A SON D
Fig 4.3: World I'<ewShipbuilding Contract by Volumes in Vessels, 2003- 2008

.'~ ,:" d,'"

275

250 ___ 200,3' - -~1

225
____
___
2004
2005
I
200 ___ 2007
2006 I'
____ 2008
175
-150

1 2E,

'"0
75
50
25
0
J F ;,.,1 A M J J A s 0 N D

Fig 4.4: World Nen Shipbuilding Contract b}' Volumes in DWT, 2003- 2008

83
4.2 ANALYSIS OF WORLD SHIPPING BUSINESS AND SHIPBUILDING
MARKET
4.2.1. Slrategv for Growth ond Survival in Shipbuilding Industrv. The concept of the
shipbuildmg as the strategically important industry is nothing new. Countries that wish to
facilitate the proce;;s of industrialization always seket shipbuilding as catalyst, since the
industry have the effects of push or pull for other industrial sectors. In the other word, the
thn ving of the shipbuilding indu,try offers opportunities for other indu,strial sectors such as
slcel manufacturing and mechamcal manufacturing to develop. The ShipbuIlding Industry
has attained a balance acro" the spectrum of ship classes, The Asian countries like China,
Japan and Korea have achieved a monopoly in the construction of large commercial ship"
011 tankers. bulk carriers, container ships and wll.onlrol1 off vessels. ThIS monopoly is
supported b} a considerable supply oftraiued. experienced labour and regional availability
of steel, engines and othcr ship components, Thc \'olume of ship con,lruCt10n in these yards
promotes inves!mems In aut,)mation, which result in the decrease of ship building co,t. Thc
oulcomc in the current market is that Asian capacity is fully otihzed through 2011. Europe
including Italy, Spain and Finland has maintained its control of high-tech civil and
commercial construction im:l"ding ferries, re,earch vcssels, eruise liners and medium sized
•
nayal vessels. Europe maintains its own ,table of first and second tier suppliers including a
uniq\le sector of craft,man to support the out firting of luxury cruise ships. Europe also

- .
seems to hnye ,i'-;1llfieam export saie, of filediufil S;7e complexity na,al \'es,els. which
pro,ide addinonal workload to allocate ovcrhead, protect the workforce and promote
ttlw"tment. The US has a limited share of the market, specialiling in highly capable. hIghly
~omplcx naval \'e"e1> There LS no si~ificant export market for US naval Or commercial
ships. Lih man~ other mdu<tries, shipbuilding hus shifted to the east over the last 30 years
or so- and during this period We,tern Europe's shipyard, ha\'e seen their market share
eroded. first by Japan, then by South Korea and, more recently, by China. Un~blc to compete
on price European yards have bccn obliged to specializcd, focusing their experti,e on gas
and chemical tankers and cmise ship:;,

4.2.2. Inrernational ShipbuildiD" Business. According to thc International Trude

Centre (lTC) calculation ba,ed on COMTRADE statistics, world export of ships, boats, and
other floating strucfilres was \\onh US S 106.79 billion in 2007. The annual gro\\1h in value
betwecn 2006 and 2007 was 19% Present statu, of important shipbuilding countries is given
in Table 4, l, Aeeordmg to CRS "Shipping lllfomlation Network" the wodd active bUIlders
of "Po;;t-Panamax" Ships (as of Kovernber 20. 2007) shown in Annex i'\. World new
shipbuildmg contract by country in DWT and in number of vessel in the year of 2008 has

bcen shown in fig 4.5 and Fig 4.6 respectively,

Table 4.1: Export Volume & Annual gro"th of l'OewShipbuilding according to ITC

Exporters Export Value iu Annual growth in Country wise Share

2007 value in World E~port
ill USS million between 2006 & 2007
World 106790, \0 19% \00%
South Koren 26631.% 24% 24.94%
h "n 15522.86 I 10% 14.54%
China \22?0 11 5\% 1 \ .44%
It"\ 5980.! I 51% 5.60%
Germany 4915.01 I 32% 4.60%
Poland 3592.76 \4% 3.36%
UX 3332.92 17.8% 3.13%
lJ. S. A 3160,37 17% 2,96%
S ain 2829.68 _44% 2.65%
Netherlands 2772.92 12.9% 2.60%
France 2685,69 15% ) 51%
Finland 2352.48 4.6% 2.21%
KQrwa 1821.78 2'1, 1.71%
Croatia 1404 12 18% 131%
IndIa 1289.96 25% 1.21%
Others 16647.31 NA 1523%

4.2.3. Boom in Shipbuilding Indu,trv. There had been a boom in shipbuilding industry

acroSS lhc world up to 2007. Dem"nd for new orders had spiraled because of following

reaSOn:
a !\ew Regulation;; imposed by IMO, made it almost impossibl~ to have the
older ship, upgraded and tbus had 10 bc replaced by new ships
b. lncre"sing pri~c of fllel had lllad~ shipping busines> extr~mc\) competitive
"nd older energy ineffic ient ship, were found ob,olelc,
c (jj"ba\izalion led to increa,e inlernational ,hipping trade between the East
and WCot se\'eral folds and al", helped to expand European Union.
d. C",mtries bccome l!lobal ,~Ilages. Now any indu,try or investors can continue
his bUoinel< anywhere or anylime in the enlire world, Goods will be manufa~t\lred in
one ,ide of the world and sold 10 consumer markels On the other ,ide So world
turnover, mo' emcn( and actLvities have becn increased manifold in the last few years.
A" a result d~mand "f ship and shipbuilding activities have been increased.

85
 •

Global Shipbuilding Contract by Countries in million OWT

in 2008

Europe. 2,2, 2%- ,-Others, 6,9, 5%

;DS Korea
S Korea, 63,7, ,aChina I
Japan, 17,9, 13% 44%
o Japan
o Europe
China, 52 1, a Others

Fig 4.5: Globall\cw Shipbuildin;!; Contract by Countdes in million D\\'T, 2008 (74)

---------------------
Global Shipbuilding Contract by Countries in number of
Vessel in 2008

----,
!
Others, 191, 10%-
DS Korea'

Europe, 174, 9% S Korea, 568.

29%
1:1China
o Japan
,
o Europe
• Others

Japan, 273. 14% China, 736, 38%

Hg 4.6: Global Kew Shipbuihling Contract bJ Countries in l"o of Vessel, 2008 (74)

4.!A Rel"tion hcn,een Shipping Business and Shipbuilding. Tho relationship

bet"een shipping business and the shipbuilding market has been silown graphically in Fig.
4.7: Clark sea index US$/du, in world market ("ithin 1990- 2008), Fig. 4,8, Clark
. containership time-cilarter rale index USS/day in world market ("ilhin 1993- 2008), fig. 4.9;
Clark average eamings all tankers uS$/day in world market (within 1990- 2008). l'ig. 4.10,
Clark weighted average earning> all bankers US$/day in world market (within1991- 2008)
and Fig. 4.11: Clark average new shipbuilding prices tiS$/D\\-T in world market (within
198()- 2008), Graphs show clearly that shipbuilding is directly related with the shipping
business (75). On the other hand steel price has also direct relation with the ship/shipbuilding
business.

4.2.5 Effect of Scrapping and Steel Market on Shipbuihling. Fig 4,12: scrapp'"g ship
price trends USS/ton in India and Bangladesh, (within 2006. 2(08) tell us different story'
a, Second hand ship prices collapsed in October.
b. Second hand prices in few type, of ship fell 20% or mOrC.
c, New building prices kept high level by shipyard, duc to their long order bQ[)k.
Table 4.2 has been shown the world carbon Sleel tmnsaction prices lJS5/Metric ton (i\IEPS
steel product price l~,els across lOOE- 2(09) It is clear that steel market is volatile and has
definite impact Onshipbuilding. as major portion of shipbuilding cost depend on steel (76).

ClarkSea Index $/Day

"'"
41,520

3e,500

.,a
•• ~l.

a 5~"
01,500

'6.0'Q

11.5~"
, ••
•• ~,. ••• '•• ,•.. '••
500
,," '.'or •• ,,' ••••• '•• ~;; ••• o. ,".'.' ",~: '.e.' '"••• 7;; ••,,'.

Fig 4.7: Clark Sea 1nde:<USSlDay in World Market, (Within 1990- 2008),

Containership Tirnecharter Rate Index $/TEU

170.00

15000

130.00

~ 11000

~o,oo

60,00

•••• ., _ ••••• >0_ •• ~oc'" ~., .., ,..'., '<0.' ~ •• 'OO ,".'._

Fig -1.R: Clark Containership Time.charter Rate Inde;\: USSffiay in World

J\lll~ket. (1993" 2008)

87
 Average Earnings All Tankers $/Day

26 6~O

6.6~D
"0 '," ":r ••• '., ,.... ~••: '<0 ',. ,".'., ":: ... .. ,..'.,
' "e '•• '0. '•• ....
Fig 4.9: Clark A\erage Earnings all Tanken USSlDay in World Market, (1990- 2008)

Weighted Average Earnings All Bulkers $/Day

63.900

53,90"

~
_ 33,900

3,900
':~ ••," 0«'" ':: '.<: ."•.•• 0••". ':~ ~~~ '."0' 0"'" ';;,

0<~'O' 0.,,.,, ~.,"".,"s_~o_oL n".o

Fig4.10: C13rk W~ighted ,her~ge Earnillgs 311 Bunkers US$/Da) in \Vor1d
M3rket. (1991- 20(8)

Average Newbuilding Prices $/DWT

1,510.00

1.310,00

Fig4,11: Cl:1rk A\'erag~ New Shipbuildi3g Prices USSIDWT in World l\13rk.t,

(1980- 2008)

88
 Scrapping Prict! Trends
SOD uss perld:
~,::'' >c: J~ f,2; ;',~5":'<
(~5~,'2j~
" Tanker.: - :ncNa
'"~ --- "anken~- 2,~~"h
---H;m~y SuiI-; - S.Desh

'>A' ." ,'"",~_

<,~-" ',,"
,--
',', ,
'~," ".
",.~..
roO' "
, ' _.: .•..; '"".
....,.-
. ,"

45:l
40=
3-5::
.'-"
,", ,. .:,,';
,,."",< ,~~
,,,.~,,
.. -"
'----,-'
r--~,'"
)...,,'
f' ':-
"-,
"h~,,,,,
,--...'-l' .,
,--

"
30::
25,"
f.r ~~U:"':
' __ ~ __A' ••••

l> f'" - ."

Oc~ ;:-",b J'-," .A,,~ 0.:: D~ :;:,,1:0 .;f."pr J,,~

"•• <:'- '07 '::7 'C7 'J7 '(:7 ~:-~ 'c,e

fig 4.12: Scrapping S1Ii]l Price Trcnd. USSITon ,in Indian Sn b-Continent Market
(2006- 2008) (77)

Table 4.2: World Carbon Steel Transaction Prices US$IMefric Ton (MEl'S Steel
Prod net Price Levels ~cross 2008 - 2009) (78).
\Vorld Steel Hot Rolled Hot Rolled Cold Steel Mediam
Price USS/Ton St.ol Coil Steel Plate Rolled Stcel Wirc Rod Steel
Coil S."tions
J'lll 2008 639 en ,<6 621 8"
F~b2008 "0 8"' on ,", 905 --
900
Mar 200S 800 908 800 758
A r 2008 9'5 1065 985 852 1042
]\Ia\' 200S 9n 1160 1080 9'0 1105
Jun 2008 1073 I 12)5 1144 1005 118--1
Jul2008 1099 1307 1186 1067 123~
Au" 20llS 1093 1300 1179 1062 1227
S, 2008 973 1243 1046 on 115--1
Oct 2008 865 1150 9" 1045
No,' 2008 m
565
1000
901
802
650
'"
606
609
898
no
Dec 2008
Jan 2009 575 800 066 6'6 m
Feb 20119 556 no on 574 m
Mar 2009 505 643 594 526 ,14
.J,H7
A r 2009 638
'" 500
""
4.2.6 Nature or Present ''''"rid Shipbuilding Market. Shipbuilding is a technology
based labour and capital intensive industry (79), Everyday changes are taking place in the
areas of ship types, sizes, speed, construction methods and materials, navigational and
communication equipments. parts and offshore terminals, cargos and cargo handling system

elc In developed co"ntries new innovations are turned into new products quickly and those
are technology based. In the near future e-navigation .hall open the doors to ways of tracking
and routing vessels at sea. 11 may lead uS to a satellite-based global vessel traffic
manag~mcnt and control system with safdy and etticiency Invention may come up in future

to curb fuel consumption for prote~ting environmental impacts,

4,2,6.1 Because Qffree market economy the gro"1h iu glob"l trade particularly due
to the rapil! expanslOn of cheap and reliable overseas manufacturers and suppliers,
especially in China and oth~I countries. has caused many western companies to
tran,fer their own manufacturing faclhties to overseas, Goods WIll bc manufactured
in one side of the world and ,old to cOnSumer markets on tIle other side, This will
lead to a rapil! expansion of the container transport and 1mer busl ness .'.s a result the
global shipbuilding is booming "ith continued high rate of expan,ion. But the major
bottlenecks of shipbuilding industry are the aC~le shortage of manpower including
,pecializel! personnel's in the technical/engineering sector, In thi, siruation the
shipbuill!ing industry of developed and developing countries may build technology
based high val"ed bigger ami faster ,hips,

4.2.6.2 The International ;>'Lmlime Organization (IMO) ha, impo,cd ban on single
hull tanker and p"ssenger ,"csse!. This may be anothcr opponunity for new
shipbuilding n~tiQn,. Rut due to the recent Global Financial Turrnoil demand for new
ordcrs has decreased considerably. Th~ freight market cra,hed overnight sending
shvcrs through the spi"e of the o"ner" As the shipping market is in disarray, the
etkct staned to be felt in the ne" building sector As a result giant of thi, sector who
obtained order for new building are not bemg completed to execute the contract
already rcceived. It i, learned that some owners have retrenched employees and a few
owners have declared, •.Lay off'. Of COurSeit may happen that problems in respe~l of
productioll and marketing being confronted by some one may tum into an
opportunity for the others. It is obvious that the on going recession has been a threat
for the traditional shipbuilding nations. So Bangladesh has to identify the
opportunili~, that prC\'ail In the present global atmosphere,

90
4.3 A,'1ALYSIS OF LOCAL SHIPBUILDING MARKET
4.3.1 General "iew of Local Shipbuilding Market. On 15 May 2008, Ananda Shipyard
handed over a ship of2850 DWT to a Danish company and with this great event Bangladesh
has successfully exported her Ilrst ocean going ship to a high end market like Denmark
competing with giant compelltor like Chinese and Vietnamese ship builders. In December
2008 six Class feme, and boats including three alummum catamaran passengers' vessels
were exported to M()zamblque securing orders through international tender under World
Bank. l he~ have wry recently launched another sister ship of 2~00 DWT fm Danish
company Ananda also has reecH'cd order> from Germany. Denmark and Mozambiquc to
huild more than a dozen of ship, with the value costIng of US$ 300 million. On the other
hand. fev, more quality shipyards like, Western :)"larineand High Speed have also received
order> to b\llld dOlenS of ship,; from Germany, Netherlands, Japan, Denmark and finland
costing approximately US5 300. As world shIp buyers/owners are slowly but surely entering
Bangladesh with this prospect it is expected that more qualitati,e shipyards will be surfaced
tn Banglade,h.

4.3.2 Vessel Onler Entire World Market and Statu. of Bangladesh. Vessel order in
enure world and Bangladesh market in last 20 years has been sho"Tl g:raphieally tn fig 4.13.
Again shipbuilding conlrad eompmson betlveen major shipbuildmg nations and Bangladesh
has bccn shown in [1ig.4.14 from those two graphs, it is dear that shipbuilding contract is
growing smoothly by keeping pace \\ ith world market. On the other hand. vessel order from
foreign COllntTl~S
in Bangladeshi shipyards {indmlmg types. quantity and DW n has bcen
shown in Table 4,3 and graphical presentation of order book by shipyards has been shO"Tl in
fig, 4,15. At the same time graphical presentation of delivery dates for ship in ord"r book of
Bangladeshi shipyards ha, been shown in Fig. 4.16, A list of world potcntial shiphuilding
nations hos been shown in Table 4.4 in which Bangladesh needs to compete v,i\h other
nation.' in future 10 remain in this sector.
 Contracting per year
,,,~
"000

,
• '"'"'
~
4 "''',
_1 ",_.'WD"d

, ,"""
~ _"'''e'.><k'',

I O'x,o

, n"o

", if i; ,
L

Fig 4.13:
[j ,r; ;;::
<f ~~: ,. ~
-------- .. •
~i ~~"gj
-_.-
~rn

Yessel Order (Entire World Market and Position of Bangladesh) (SOl_

-------- -

------------- ._----
Contracting per yea r: major shipbuilding
countries+ Bangladesh
,"'" '-,
! '"
i,
' 00(>

1
!
:>00

,,, ,.,K'
,
~
1 On)

I
"

'"
,
~
,
I
_ -"',," ,
~_ ,"""m
"""'"
__ ~",,"J,,"-,h

I ;I
, I I. , ,, .1 •
I
II
'"., ---------------- ----- ---------- -~
Fig ,U4 Shiphuildi<lg Contract Compari;on bdwcen Major Shipbuilding Nations
and Bangl:Idesh.

Table 4.3; E"port Quality Vessel under Order (Types, Quanti!)- & D\YT) in
Banaladoshi ShinY'lrds from Abro~d
N~me orthc Type of Vessel Quantity DINT Owner
Shioyard
An~nd~ Shipy"rd Komrowski,
Multipurpose ship 8 7250
Limited German"

Ananda Shipyard l\lultipurpme ship 6 5500 Lehman, Germany

Limited 1
Anand" Shipyard 3 2900 Stella. Denmark
Container ship
Limited
Ananda Shipyard Wessels, Germany
Multipurpose ship 6 6100
Limited
Western Marine Multipurpose
05 4100 Denmark
Shi vard Limited Car~o vessel
Western Marine I Multipurpose Netherland
Shipyard Limited

W~,[em Marine
Car 0 vessel
Floa(in~
" 5200

Reception vessel 01 230 finland

Shipyard Limited

Orderbook by Ship Yard

,
• "'.'.,~,,, & C'"" v,,~,,RoC,,! "., 0 i

• e"o, ",-,""

o l<'

Fig 4.15: Graphical Prcscntation of Order book by Shipyard8

----------
----~:;~~-~-~y
-~a~~s s~~P"
~norder~oo~-------~---1 f';~-
,. !
'"
<C, !
'" i
1, " i
'",
i ,
~ ,".•,.•""c',",
<c ••• " I _.
C'C.,<>v""'
-
'R"",, I
I

,
l!lI
•
I@j
'- ---- ---- ----- -----,,-
__
..J
I
Fig 4.16: G raphicul Pre,enlution of Deli.-ery dUles of Ship. h)' Ship) ards (81)

93
Table 4.4: Ust of Potential Shiphuilding Nations in the Wllrld.

81 Potential and Competitive 81 Potential hut nM Competitiw

'0 Shipbuilding Nation, No Shlpbuildiug Nations due to
Hi h Price
I Soutn Korea I Hong Kong

2 China 2 Taiwan

; Japan 3 Croatia

, Vietnam 4 Greece

5 India 5 Panama

6 Brazil 6 Canada

3 Turkey 3 Myanmar

8 USA 8 New Zealaml

9 Rus,ia 9 Spain

10 Australia 10 l'h.ilippines
•
II uK II Finland

Denmark
12 Germany
"
II France 13 Norway

II Singapore II S"eden

15 ltal} 15 Belgium

Poland
16 Malaysia
'" Portug~l
II Indonesia IJ

18 UAE IS Uruguay

13 Thailand II Argentina

20 N"etherland< 00 Saudi Arabia

Israel
21 Egypt
"
"
23
Bangl"d~sh

Pakistan
"
OJ
Chile

Sri Lanka
 24 Iran 24 Romania

25 Mexico 25 Ulan;nc

(loooaT) ITransition of Completionsl

7".01111

4".''"''
3»,<1""

~RI."r'"I"lVj.~'~~6'1.IQ.,,"OIII!U]I'~"3if'07DM
Y ••• Lloyd s
_J.o.n =K",o. =EU _China _Wo,IdTohl I sislislics

Fig 4.1 i: WorM Shipbuilding Demand Alwa~'~ locrc'lses (82].

4.3.3 Deduction from World ami Local Shipbuilding Market Anal,-,;s. Shipbuilding
is b"lh promising and "challenging industry in the World, Unlil vcry recently the average
increasing tate of ships in tonnage wa, approximately 21 million GT (Gross Tonnage) per
year. Considering US$ 7.620 as construction cos! per GT. tolal global shipbuilding market
size is USS l.(illO billion (according 10 (he stalistics of COMTRADE). If only 1% market
share can be ~aplllrcd by Bangladesh it "ill be equal to USS 16 billion. In worst case if
Bangladesh can grah one per cent of the global order for only small ships market (\\ hich i,
about USS 400 billion). the amount will be wonh US$ 4.0 billion. Bangladesh's oppor1Ul\ity
to emerge as a shipbuilding notion llnder global standards has created in the last f~w years.
a, oth~r trad itional shipbuilding nations showed link interests in making of small ships Two
leading local shipyards. Anonda and Western Marine bave bagged orders to make over 40
small vessels "orth nbout USS 0.6 billion mninly from European bu,e". From the analysis
and on the basis of the prediction. it may say that Bangladesh is going to be nddressed as
shipbuilding nation ",itnin 2015 and placed within twelve in the global order in tne year of
2021.

95
4.4 ANAT.YSIS OF THE CO:\tPETITOR MARKET
4.4.1 Analvs;. of Past Trend. Shipbuilding encompasses the shipyards, the manne
equipment manufactuwrs and a large number of service and knowledge provider •. It is an
imponant and strategic indnstry in a nnmber of countries around the world. Shipyards offer a
wide range of kehnologie., employ a significant nnmber of workers and generate foreign
cnrrency. Shipbuilding is therefore an attractive indnstry for dcyeloping nations. Japan and
Kore" used shipbuilding to rebuild its industrial structure. Chin" IS noW in the proce5S of
r~peating these models In the P"st, shipbuilding industry of the E"st cnjoyed superiority "nd
macIe the region leader of civilization, then ,hipbnilding bccomes a European Indnstry in
WhlCh Britain took the lead. This is followed by Japan and now South Korea takes the lead
and by any numerical standard, Korca is still the leadmg shipbuilding nation in the world.
111ecountries, wbere labor costs are going up, arc shifting their role of shipbuilding from
small sized ta medium and large aize ships. The other emerging forces are Vietnam and
India. In fact, emergence of Vietnam is largely a result of efforts b} European countries to
relocate their shipbuilding industries to 10" labor cost countries. India is anolher rising giant
in shipbuilding industry and receiving orders of hundreds of million, of dullars.

4.4.2 Sum,> Sample Statistics ofP(ltentinl Competitor. One recent statistics say thM
ABG, the largest pnvate shipyard in India. is claiming to make one ship every fi'e weeks.
The dclivery for one ship ha;; come down to six months only. Private sector orderbook in
India has cross~d USS 1000 million. There are in about 21 private yards in India which have
thc revcnue of USS 926 million per year. Korea and China are having the share of 51%, and
34% resp~"ti,'ely in tbe global "hiphuilding. China grew becau<e of co,! eft:ec!iveness in
lahour and av~~labjlity of cOlllponems and service,. India expects to have 5% share in tbc
Global shlpbuilding by 2015. New comers ha'e am,'ed in the lndian shipbuilding with India
Rs 185 billion in,,"smlent,. Thero \\'~s announcement of ne\\ building yard:; every week
until the recent receasion slowed down ever;.1hing. Centml Government of India is having
two ginnt shipyards m the IndLa" and Western Co~sts. Company like South Korea's STX,
UK's I\-lCl\utty, ABG, L&T, bsar, Shapoorj, IMC are in the Indian shipbuilding Market. A
sample ordcr book of n private shipyard in India ia as: One Doze", 35000 DWT Bulk
Carrier> and Si". Supra.max Double hull double bottom bulk carrier -'- FiYe, 55000 DWT
supm-max etc. The private yard Pipavov of India, who hm'e comtructed shipyards in 150
acre land havc 300,000 D\VT VLCCiULCC and 26 Pana.max Hulk Carrier in their Order
book. The Gov!. yards ofIndi~ like Cochin Shipyard ltd. is also making profit of 300% and
increa,ed their dealing "ith Danish, i'Jorwegian and American Client. They are constructing

96
Air~raft Carriers for Indian Navy. Gujrat Govt. of India has 10 clusrers, 10 shipyards in each
cluster with US$ 12.5 billion invested. The Govtemment has allowed incentives in the form
of attractive rates for land acquisition and extended tax holiday. India had until recently 30%

Cash incentive for building ships,

4.4.3 "ligration of Shipbuilding Indust", and Benefit of Bangladesh. The migration

of shipbuilding industry h", always been driven by the increase in labour cost. The industry
has moved out of ElIwpc to the Far East, subsequcnt1y moved to South East Asi" and is
finally taking a turn l()wards South A,ia. The shipbuildtng countries of the world are gIving
emphasis to increase productivity by improving process enhancement through technological
up-gradatir)ll, m()UCIDI2ation,training, developmcnt of manufacturing flo" etc, to endure as
shipbuilding nation, for long. It may be mentloned here that in some countries the labour
cost involved in building varies bet\.veen 30-60 percent. In countries advanced in
shipbuilding, the cost of labour percentage is significantly lo"cr which range from 20-35
percent only. Therefore, in many cases, the differences in labour productivity are absorbed
by the ulfference, in shipyard labour costs Labour aspect is considered as the major cost
driver in shipbuilding industry and it is an important reason for shifting this industry from
country to country, Chinese Yard labour cost 10 2006 was as little as US $ 5,00 per hour
compared with llSS 26.00 in Japan and USS 23 00 in South Korea ",hieh was the cause of
shifting yards from dl~~crcnt puts of the world to China, Rc1ati\'e labour rate:; have been
gi "Cn belo" in Tablc 4.5 for I 7 countries,
4.4.4 Some Po"ibilities, Because the buyer, nave had the expericnec of buildmg
,c>scl, in l~Ccountric, who arc competitors of Bangladesh <peoially Korea, China, India etc
and they have come to Bangladesh to place order, and have been buiMer fricndly in some
cases. it can be expected that Bangladesh ha, a good prospect in expon shipbuilding,
Previously China waS cheaper, but because their standard of lwing wus being higher and
higher and SOth.ir wuges also increasing day by day. In this respect, Bangladesh has a good
prospcct in coming yea". Careful comparison ofprioes of Chitla and Bangladesh hm'e been
made and the price of Bangladesh have been found to be bctter, which is to be continuously
improved, othem'". many cancellatiou or ordcrs tn China due to recession can reverse the
things. B~nglade,h will ha,.c a big: share in receiving orders for 6000.10000 DWT and
15000-20000 DWT Multipurpose vessd, bccause that market will be alive in coming years.
Containcr market may not b~ very good in coming years until it tak •• its fonn again. Small
and medium size Tanker market will also b~ applicable for Bangladesh, whtch will need
double skin and "ill have to be replaced. India and China is not suitable for the market of
small size shipbuilding,
Tnblc 4.5: Rclalhe Labonr Rate of Different Shipbuilding Nations around the World
(83)
Relative Labour Rate Countrv PT;LA'[ lYE LABOuR P.-\TE
Countrv
Ban ladesh
India I
Shown in eha ter 7
1
Canada
Ja an "
12
China I to 2 Italy 13
Sin apore J I France 13
Hong 3 Denmark 13
Kon!!.
Taiwan
I 3 "'oD"a' l'
Soulh
Korea I
0 Sweden
"
15
UK I 10 Fllliand
USA 10 German' 15

4.5 A;\iALYS1SOF SHlPB(TILDI~'G PROSPECT OF B.~'\"GLADESH

4.5.1 Foreign Exposure of Hangladcshi Shipbuilding. By depending on unique
naturc, convenient geographical adv"ntage togcther with availabilily of technically
knowledgeable per,onnel, abundant of sklllcd and se~i-skilled workforce and long past
heritage, the shipbuilding industry of Bangladesh has started its jonm~y towards export. This
industry is manufacturing cargo vessel, passenger craft, combine carner, Ro-Ro ferries. lng,
Iishmg traw1crs, and tapkers etc. for inland and coastal roules catering to the ic>eJldemand,
Rangladesh has also succ~s<fully exportod few occan going ship to foreign countriea.

4.5.2 Co.t,Effcctiw Local Human Re'O\lrce;. Cost-effecti\'e human r~sonrces m

comparison wilh other tradttional shipbuilding nations and comparative advantages such as
simple importalion facility of mw materials, duly free market and access for Bangl"deshi
,hip, tll (Jther cOlmtrics ctc, haye encouraged the Bangilldeshi mvcstots/cntrepreneurs of thi.,
s~ctor to come forward in export business. Government of Bangladesh has taken initiatives
and expresse,'1 keen interest to promote this sector with a view to include a new promising
item In the export basket and con5idering its huge capability to develop country's multi-
dimensional production base as linkage indnstries. So thai Banglacksh can become next cost
effective destination for global buyers d"~ling in ship', ship machineries, componenls, and
marinc lcchnology. The obj~ctive is to sohe nnemplo}1llcnt problems. to boost up foreign
currency and 10 achieve substanllal cconomic gl'owth throngh socio-economic developmcnt
of the nation.
4,5,3 Lotal Ship Rreaking and Building Potential. Recently, Bangladesh is known
as ship breaking country, Becausc approximately 40-50% of worlds scraped ships are being
processed in the Bhatia')' and Shilakund, at Chlllagong coast of Bay of Bangle, BUI due to
Ihe revolulionary trend in the world shipbuilding seclors, Ihe prospect of Bangladeshi
shipbuilding has also come into th,cussion aboul its success. Being a maritime country,
Bangladesh has got many ri'ers and channels connected ",ilh sea, On the other hand the
people of this area, ha, the pnde on shipbuilding industry smce the early stage of its
ci,ilizahQns. So the country has got good potential in re,pccl of rising trend of shLpbuilding

indu,tr},

4.5.4 I.ocal Shipvard Owuen Vic», on Pri,-ate Shipbuilding. Researcher has mel
and taken intcrVlews of shipyard owners, ship builders, foreign buyers, stake holders and
related p~r:;onne1to gather their idca on BangladeshI shipbuilding industries and these data
have bccn used a, a secondary data to evaluate the prospect of Bnngladeshi shipbmlding,
Chairman of Ananda Shipyard viewed Bangladesb will be the second largest exporter aftcr
garments in 2015. Managing Directnr of West em ;'Jarine is optImistic that Bangladesh will
be able to gr;:1bonC per cent of the global order for small ships in coming year and it will
fetch S4.0 bilhon for Bangladeshi shiphuilding: industries Former head of N'aval
Archilccture Dept. of BUET statcd 2007-08 is an epoch-making: }ear for the country',
ship""ilding in<111st,,:'.
Sbipbuilding experts expressed that the country has become a new
destination for companies seeking construction of small ocean-going vessds as lradiriona!
shlpbulld\ng nations ,uch '" Soulh Korea and Chma no" focu, on buildmg large ship,. Even
V'elnam. which is rdatively new in shipbuilding, i8 no longer interested to build ,mall shIps
below 25,UOODWT, They want 10 build bigger \'es;;els becau,e;l is relatively cheaper and
requires less labour Their un",ilhngness ha3 made lndia, Bangladesh, lndon~sia, Pakistan,
Myanmar, Thailand. Brazil etc the new destinatlOns for small ,hipbLLilding,To accommodate
the global demand of small, Ananda Shipyard is now inveslmg ahout Tk 1.10 billion 10 set
up two dry docks in our shipyard. Western Marine Shipyard is also upgrading their
infraslr\lcturc 10 meet intemutionLlI standards, Highspeed Shiphuilding & Eng:inccnng Co
Ltd has \\on a USS 50 miHion order from Japan to build ten small sbips This is the lim time
the euuntry has won a Japanesc eon"act and underlines the increasing global aeeeplance of
Bang:ladc:;h as an emerging ,hipbuildlng nation, Highspeed 8hipy~rd is also developing its
docl-:yard faciliti~, in line Wilh Japanese standards and is going to invest around US$ 25

99
million in the coming year to upgrade the manufacturing facility of its dockyard. Foreigners
are now convinced thot B~ngl~deshi shipyards can build ships and deliver them in time,

4.5.5 Local Expert Views on Public Sbipbuilding. Public _,hiphuilding seetor IS al,o
gelling fmeign order, CDOL ,hows good prospect of fuwrc in n~w slupbuilding fo!' foreign
countries, Two foreIgn Gountrie, rec~",!y ,howed their kecn mterest in either to rclo~ale tbeir
shipbuilding indu,tries to Bangladesh or plaee orders to the COOL for building new vessels
for them. Officials of CDOL also optimistic to eontribute significantly to the national
economy by constructing new shipbuilding in coming year. On the other hand. DEW and
KSY hltv~ well shipbuilding expcriencell and can provide good facilities for new
shIpbuilding as per the wYUlr~m~ntof foreign ship buyer/owner. They are going to launch
joint venture new building project very ,oon. KSY is expecting a project for nCw building of
Large Palrol Craft fO] Bangladesh Navy within short time, DEW and KSY will he act as
.,trategic pIay~r for shipbuilding for Na ''Y and Coast Guar<!ill /inure,

4.5.6 F.xpert Views and Pro~pcet Anah.,is of 8angludc,hi Shipbuilding. Shipbuilding

Experts ackno,.ledged that, it is only a matter of time Bangladesb emerges a, a major hub
fO] huildmg small ocean-going shIps. Country manager of W"rld famous c1a"ification
socicty, G~rmani'<Chel'Lloyd (GL) Gonfirm~d, "Banglallesb alway, had enough skilled and
cheap workfO]ces. Now the nation needs know-how and facilities We can easily foresec
lo~al shipbuildlllg em~rging; as a billion-dollar industry next five year,;, It Can ea,ily be a
glohalleader m the small-,hip making industry." Germanischer Lloyd ha, prompted Ananda
and Western Marin~ to look for international order. At GL's i,,-,i,tetlee, four more shipyards,
Hig.h-speed at Narayanganj, Kamaphuli :;hlpyard at Chit!Jgong. KSY at Khulna and DEW at
}i"rayanganj, h".e starred upgrading their infrastructure to build seafanng ,bip' (86). These
fClurcompanies h~vc ready-made manpowel and tl,e skill to build ships. TIley USU,1Ily
buill
hundreds of launches, coa,ters and !JnkeL' for local mark~t With some technological bell'
and upgraded infrastmeture, tb~y will ,oon b~ abl~ to build oeean going ships (87).
Shipyards owners h"pe that, lhe industry even had the potential to superscde the country's
garments ,ector, the biggest export earner, in the long run. TI,e SllCCCSS
of th~se local
shLpyard, ha, ellcourag~d other local companies such as Meghna Group of Indu,trie,. Rangs
Group. Khan Brothcrs, dc lo jump on the bandwagon of global ohipbmlding mark~l. It took
us 25 y~ars to Cam USS 10 billion a year in the garments sector. The Bangladeshi
shipbuilding Can <10 it in less than 10 years, The European Commission (EC) has shown keen

100
interest to provide suppmt to the shipbuilding cornpunies in Bangladesh to gain a strong
fQ(lli",ld in shipbllilding markel globally. The Head of the Delegation of European
Commission (Ee) in Bangladesh (on June 1, 2008) slated, "Bangladeshi shipbuilding
indu,try ha, all polenti~l to earn billions ofUSS and to bring bend't, both to the people of
Baogladesh and the Enrope~nUnion (88}.1t is particularly appropriate lhat a eountry, which
has become renowned for ship-breaking, should move 10(0 shipbuilding, ereatmg an
industnal 'cycle oflife' with a certain poetic appeal" (89)

101
:"
" ..... ••••••••••••••••
".•••• j.
.
• • •••• .'" "
•
•
•
•
••

(-I!:il."1 Ii'-)
..i
,' .
. ', .....
,,'
.,' . .....". "
..... •••• ............. • •••
" "

BANGLADESHI SHIPBUILDING
PROBLEMS AND CHALLENGES

'"'
5.1 FACTORS THAT AFFECT THE DEVELOPMENT OF SHIPBUILDING
5.1.1 [Inderstanding Ship and Shiphuilding. Shipbuilding is one of the primitive
induSincs in the world including Bangladesh \Vlth the passage (}f time, kchn(}log)' based
large, and EUlC<ships have camc up instead of ,hips run by sail,. '[ he story of shipping
indusll)' since the Wmid War II has heen onc of ingenuity, pl'Ofes,ionali.,m,fabulous profits
and SOmedi,,,trous miscalculation. Shipping market is a group of p~op1elike ship owner"
brokelS, shipbuild~rs, and bankers; who together carry out each year the Herculean task of
transporting few thousand million tons of cargo by sea and who may see ,hipping a, much
more than just a hu,in¥s (91). The Idea of shipping as the cata]y,t of eqlllomlC
development i, not new Father of economics Adam Smith saw slupping as one of the
principal stepping-,tones to economics de\'elopment (92), Since the mlu-1960s, t".o
dramati~ dcvelopment, in thc economic organizatIOn of the slupping business-unitization
and b\llk ,11ipping-haw played a major part in openiag up a truly global market for both
manufactures and fa" materials 'I he \lpward trend in ship ,izes w~s most appa,ent in the oil
llldustry. Shipping is a complex industry and its main asscts, the ,hip, themselves for a
venty of goods, whether over shorter or longer distances. The job of the shipbmlding
industry i, to ,,,pply new ShIpS,while ship breakers arC the last resort buyers of old ,hip,
when it is no longer possible to (}peratcthem profitably in the shipping market. Shipbuilding
is a heavy engineering business, selling a large and sophisticakd product built mainly in
faciiitie, I(}catedin the ind",triali7ed cO\lntries of Japan, Europe, South Korea, China,
Taiwan, etc. It requires substantial c"pita] investment and a high level of iechmeal expertise
10 design and produce a merchant ,hlp (93), The ,hip scrapping industry, in (,ontra,t, i,
localed mainly in the developing counrrie, of the far East, hkc India, Bangladesh, Pakistan,
Thailand, etc, and is plOhably one of the most.lahour intensive induslncs. Evcn in some
count,ie, ,hip scrapping takes pla~e on the heach, where labour ~qllipped"ith only the most
ancient of hand tools and culling equipment as Bangladesh ~xpericnced since couple of era
(94).

~.t.2 Cowrnmellt Support is Mandatorv to ne~e1op Shiphlli1tling Industrv. TI)ere

is a common sens~ IIIthe industry, market share of the shiphuilding in a nation are elosely
relaled 10the poiicie, the gO\"emmentemploy" When the government ~dopt';the policy to
encoUlagc the shipbllliding business, th~ rna,ket share of the shipbuilding industr)' could bc,
to certam extent, maintmn~dor cven enlarged even if the shlpbuildef' IIIthe nation arC not
competitive at the mal'ket. Whereas. in the ca,e of less supports or no support> from the
gO\ernmellt, the ,hipbuilders who lo,t comparative ad~ant"ges have nO choIces but to leave
thc market (95). it is Important to know lhnt CUlT~ntleading:shipbuilding nations slill receive
suppmt, from the governments wilh the oim or lI\~intJlllLngthe leading po<1tlonas longer as
possible, As an example, direct interwntion of gO\ernlllcnt wch as Jones Aet in USA. The
Act rule., that ships lhat lmde in the lerritory of the >t~tes must be built in USA. Again the
decline of the shipbuilding mdustry in the UK and S",ed~n was partly atlnbuted to less
supportive policie., adopted by gm~rnmcnts, in olher words, the governments in bom
eountri~s nO longer thoughl the industry was c1\lcial to nallon', economy, On the contrary,
Gemlany, It~ly and France, hold distinct views from the regubtors in \he UK and Sweden.
This is to say, Gmernmcnts are ,till active in ,"pport of lhe ,hipbuildmg industry
respectively, In thc ease of (leman, the as.,i,tances to lhe shipbuilding ind"stry corne from
different levels of lhc government. Thus, market share of Gemumy shipb"ilders grew in
according with the e"dent of assistance, Or scale or subsidies. SimiJ~r1y, governmental
support" in Italy and France wcrc apparent. nlthongh the governments realized the los> of
competitive advantage ofthc industry in lheir nations. I! is needless to say; the market shares
of Japanesc and Korean shlpb"ilding induslry are dependent On integrated competitiveness
set up through the years, whereas the ,upports from thc governments in bolh countries still
acllvely exist. In the ca,e of Japan, the go\'ernment ~ncouraged cross shareholdmg of
,hipyards, shipping owning companies as "ell as banb. Additionally, special home credit
plan is de,igned to work for domestic ship owning companie,. At the every begitming of the
development of the ,hipbmlding indu,try in Kore~. th~ govcrnment tightly restncted the
acqmsitions of foreign-built new ships by Korean owners, In a 3 year-period time, Japanese
ship"owners contributed the dome,tic ,hipyards with orJcnng 7,534,000 CG r, whereas the
ship-owning companie" just ordered one shIp, which waS equivalent 10 5,OOOCGTin a
shlpyard of EUl'Opean Umon, Ultimately, during: the sam~ penall, no Korean ship owne"
place,1order to any foreign shIpbuilders

5.1.1 Ecnnomie A'peet of Shiphuilding. Like o(her business, economic almosphere of

the shipbuilding iociu,try" doubtlcssly ~n important aspecl that should be identified. Before
th~ era of modem ,hirbuildmg indllstry, the ,Inps were made of wood .• killed crafl;TIIcn
were mam elemeot and faclor. In such a c()ntexl, the ,truel"n; of the shiphuilding: company
wa, >lmple, whieh i, usu~lIy nn ll1(lepcndementerpr;s~ and h~d kss eonnecllOn Lntel'ms of
,hareholding "ith outsiders (%). When the industry entered mto new era in which ships
wele produced in swel hutL The requirement on facililws \\'a.' increased so that Shipyards

104
 became expensive 10 own and operate, In recent year", the glOwing of ship si~e and fierce
compctltions at the matket have made shipbuilders ha\'~ to cmploy diff~renl strategies for
company structure, to survi,e and develop. At prcsent, there are several major stnLetures of
o\\nrrslnp in the md",lry, whwh are proved t., be 'lLcec"flLl. A, an e~ample, in Japan the
physical size of shipyards is larger, although they are sm~li<'l'{han Korean, E~,m()mies of
,cale are still an effective appro"ch for Japnnese shipbuilders to apply. Particularly, Japanese
l<1l'g~shipyards lIsually OWnseveral smaller .,hipyards. In the mean lime, some shipyards in
Japan are usually integrated into larger enterprises ve'1ieally or horizontally, which results in
• integrated competitiveness that others could nol wmpete with. Here, shipyards, shipping
companies and Banks coming up together as conglomera lion, provldc an opportunitj too-
pur.,uit economie, of scale in production that enhance the operation of c",t1y fac;1ities ,uch
as docks and relevant equipments. More imp"rtanl!y, the financial strengths and synergy
resnlting from the structnre of ownerships are powed'nl, e"pecially in difficult time nf the
shiphuilding market, which make the shipyards less vlllnerable to market t1uctnations. The
snccessful story of Hyundai Shipyard induced other Korean shipbuilder> to commit tons of
money for shipyard exten,ion. After nearly 20 years' development, fiw mega-shipbuilders
appeared in this country in 1990s, Currcntly, IIi'llndai shipyard alone owns 9 VLeCs doeks
"ith relevant facilitie, in UI,an, Korea, whICh is the biggest shipyard in the world. 'l'hese
dock> of mega-shipyards sl'ollld be fed by ",ders to sustain, with economies of scale; the
shipyards are in better condition to bid for orders of new blllidings. Despite the shipyards are
still in the fom1 of independent company, the association of the companies has been evolved,

5.1.4 Price nnd Exehange Rat" In Shipbuilding Bllsill"". "lhe price of the ships is
traditionally marked in US$ term. whereas the buildmg cost, of ,hip, are ine,'itably marked
. .
in local cunencies. Variation on exch"nge ralC are not abnOlmal in reality, it i, powerful
enough to kid ott' any shipyard from negotiation lable, because no shipbuilders are able to
make up any large gap that could be ab50rb from thc efforts of cost reductions (97), In Illost
of the cases, the selections of shipyards by inten1Jlional shIp OWnCrSare pnmarily based On
thc pnce of ships and the tU11lngof delivery. Wben the buyers are On the purpose of
'peculation" the priee of the ship is deCIsive since qllality of ship, can ah, ays be guaranteed
bi' cl""ificntioLl societi",. Besides, the deSIgn of the ,hip', in mo,t case, are 'I"ite standard,
which do,e not prm'ide any shipyards a differenliatlOn from other builders, if others are able
to offer the ships \\'ith cheaper prices with familiar deli,ery dates.

105
 5.1.5 Attention of Ban"lade~hi (;O'~rnment and Allocation of ADP for Watern'''',l.
Water Transport and Shipbuilding.
The gOlemmenr alJoeal'on in its _""nuul
Dc\'ciopmenr Programme (ADP) for road constn'ctioll domina led signJfjc~ntly the
allocations for "liiway, waler Imns!,o,! and e,ql aviation in the In,t 37 years, "hich Ims

shm\ll in I"g S J During the period, public allocntion for road increased by 4S poinl; wlule
allocations tor rail, Water 'lnd "if tmllSpOl1 WCll!d()\\itj by J to 21 point (98), As per the repon

of Planning CommJ,%ion, it is alatming t!lJt road transport infraSIll.lcllJrc i, dccaying

'" adnalJy on ill"dequate mailllenance ailoc~tion for rond, and bridges; \\ hich is going to lo,e

Ihe capacnies in the next 20 years, Ifwe l"9k at the fig 5.1 and Fig 5.2 below, it is c1e'lrlhat
Waterways and Water l"ran'port is the most neglected sector ill Bangladc,1r: Whercas, it is •
conlrihuting siJ?!JificantJy to the Jlalioml by tmnspol1ing more than 90% of oil produe], 70%

of cargo and 35% of pa,_'cnger, in tot~L Due to such negJigence of the sector BangJadeshi
riwrs lo,ing their na\"igabi!Jty ond shipbLJiJ~ing industry not enjoying ally SOrt of ca3h 0]'

kind benefit "ince Ollf independence.

Government Allocation Trend of ADP for Different

Mood of Transports Since Independence of
8angt ••desh

--I'D'"
__ 0 Water
_Rail
18 ROad
I
F;v •• Fisc,,' Year PI"ns Betwe"n 1973_01009

-----....
Fig 5".i
sinee

r -- Government
lndependcllce Allocation "Trcudof ADI' for Different Mood 0[ "Trml'p[)rts
of Batlgladesh

GoWlrnment Allocatioo for AOP for Different Mood of Tr.""p<>rls In 2008.09

WO'erA.
I Ro,I 4% 2'.

i 2]o/~~~:j-i:--'~d

I
L _
73%

Fig 5.2
Year Goyernn;cIlt Allocation of ADP for Differem :\-'loodof Tratlsport in Fi~eaJ
of 2008_09

106
5.2 Il'\VE5TIGATIO:"<ON R"'~(;LADESHI SHIPBUILDING PROBLEMS
0d
5.2.1 General Problems in Bangladeshi Shipbuilding. Bangladesh is the 2 largest
ship breaKing in the world (99) But shipbuilding inJ"stry of Bangladesh failed to keep pace
"ith consistency due to lack of proper ~o,'cmment and pnvate initiatives as, well as anti.
ind",try mind,et of the nation (100), This has ullimutely caused non-penetration in
international bllsiness as a shipbUIlding nation. In fulure, some issues like safety, efficiency
and envIronmental concernS wiI\ tum thIS sector into a mOre innovative one, which may
enable the new generation to face the challenges to resolve the probl~ms arising out of it.
Countn~, with large populalion like 13ang\adeshmay feel encouraged to come forwa.n in
lahour intensive shipbuilding sector due to their abundant manpo"cr, Currently the world is
passmg through economic I'ecession. Shipping and shipbuilding of the world are affected
from this recession resulting cancellation of neW building orders at least for the time beiug
(101)_The present shiphuilding sector of Bangladesh is a small one and only few shipyards
arc involved in export of ship" bul reVenue generated [rom this sector is promising 1n spit~
of enonnonS possibilities of expanding shIpbuilding industry in Bangladesh there also some
problems_These "xlsting prohlems of this '<eclorwill be described in ten broad heading:
Financial
"
b. Technical
, Infra,truetUl'e
d. MarKeting
e. Managemeut
f. Human Rewurce Developm~nt
g, Quality
h. Delay delivery
I, Price
J. Special problem

5.2.2 Fillaucin!l'roblelll
a, Shipbmlding is capital and labour intensive industry_ A local commercial
bank is nO! capable of making required mvestment indivldual1y in this
Industry Beside,. well di,cus> eonsmtilLmfinancmg is time consuming and a
cample" proces< whIch is not sOfavorable for investment in this Sector
b Lack of adequate "orking capital loan. 1l1ere is dearth of capital and
in\'e.,tment especially when the scale ofinvcstment is (0 the tune 100 to ]000

107
 eroTe or mOre. The ri.,ks considered being too high bOlh for the Entrepreneurs

and Bankers.
Producti,ity expansion and export promotion are bemg impeded due to lack

of rcqllired carll"l (industrial and working capital1oan).

d High Rate oflnterest on Industrial and Working Capital Loan. lixisling rate

of interest ranging from 12% to 16% for Industrial and Working Capital

Loans is not suitable for the de~elopmcnt of this sector, wherea, 7% Rate of
Interesl on export credll is prevailing for other export sectors like RGM.

jcs the buyers do not accept the glEarantee provided b", the Bangladeshi

• commercial banks, counter guaranlee has to be given from the foreign banks .
As a result, G'laranlee from both local and foreign banks is mandatory for
Export of ship, from Bangladesh. The prcvai1i~g co,t of hank guarantee due
to double bank guarantc~ system (one is that the guarantee required from the
local bank and the other the counter guarantee required by the foreign banks)

is real burden for local shipyards.

f. Bank guarantee for export of ,hIps from Bangladesh is about 16% (loea14%
+ foreign 4% = 8%X2 years = 16%). Such bank guarantee is required for
equivalent amount of advanced paymcnt and price of raw materials received

by the builder, from the importing company. Bank guarantee commission for
other sectors in Bangladcsh is charged at thc rate of 1% - 2%. Whereas it is
0% in other competing countries like, Korea, China, Japan, India, etc.
Commission at the rate of 0,20% i, eharged by bank.< of other competing
countries for opening import UC whereas 1% per quarter i.e, IX4 = 4 X 2
years = 8% is charged by the Bangladeshi commercial banks.

h 11,e above breakup of the cost incurred for payment of interest and Service
charges indicates that the additional financial cost of ship, III
Bangladesh is about 15 to 25% {bank intercst 3 to 6% + guarantee 8 to
1(,%+ LlC commi%ion 4 t(} 8% + other charges J%) higher t1,an the
other competing nations like China, Korea, Japan, India, Vietnam, Llrazll,

etc.
'- There exists some gap between ,ectoral needs and curriculum of

institutions related to the maritIme industry.

J, Because the industry is uat understood properly by concerned policymaker,
the u,ual response to such inveshneut proposal is halfhearted and i, treated in

>08

)
 the same fOlTIlalas III CaSe of other export sectors. Thus banking support that

the shipbuilding sector enjoys as per the current policy is poor.

k. Banglade,h commercial banks are shy to deal with big investment

indi,-idual1}' ~s ,egu;led for shipbuil<ling sector.

l. Foreign banh in the begmmng (before two to :hree years ago) were chargmg
2 5';', commission pcr annum But nowaday they are charging more than 5 [0
6%. 11,;, with very high commission of local batIks is presently killing the

possibility of growth of export slupbuilding in Bangladesh. In addition to the

hIgh charge, the uncert"inty of reissuing a gparantee by a foreign bank and
•
the burden of anxielj', when an exlension of a guarantee is needed, becomes
unbearable. A foreign bank, fol' many reasons non-disclosed, may not extend
guarantees, "hich may lead (0 a cancellation of a contract
m, Insurance of a ship is taken on keel laying, the value then being nearly
only.001%, whleh mCreases gradually over the building period to 100%,ln
reality the full value is matured only on acceptance and cl03ing of the
tinancial deal to dehvery of ship. 'I1,e m,urance premlUm should also be
proportional 10 varying valne and should be adjusted at quarters. None is
aware of th~ concept herc. As a result the in3urance premium i3 becoming
prohibiling and discourages a builder and thus making the project vulnerable
to unforeseen risks (104).
Shipbuildmg requires huge working capital wilh long duration, A very high
rate of working capital i, crippling export shipbuilding in Banglade,h. ln
other countries ships under construction are lien to the bank as the sc~urit) of
any financing that are laken from a bank during shipbuilding. A 5hip ;; a
versatile intentIOnallyconvertible asset
India having only a 10% financing cost and H 30% eash subsidy and all
together about 35 to 45% ahead of BanglHdesh, Additional financial cost is
being 15 to 25% of contract price in Banglade,h (lOS).
p, Turkey i, providing fUl1dmg,incc middle of 200R under stimulus package to
complete all 011going contracts eV£u if some of them have been cancelled and
flow of fund, undcr some conlract; have been affected by fLnancial
meltdown,

l.O9
 q. China and Vietnam, in addition 10 funding existing; shipbuilding contracts
agmnst cancellation, have provided incentive scheme to secure new
shipbuilding contract (206).
Bnnglnd~sh', export oriented shipyards neither enjoying any CJsh incentiHs
nor any [',","]fable government instmclions to boost exporting shipbuilding.

Rating of our banh, size of banks and local bankmg system are no!
conduciye to shipbuilding, which needs huge fund flow, faster actions and
international ratings Becau"" of existmg ceiling and sizes of banks, a
shipbuilding contra~l cannot bcofinanced by a single bank except a very few.
•
1t is thus necessary to form genuine Consortiums for funding shipbuilding.
llowewr there is no standard frame"ork for forming consortium ~nd ~s a
result when a shipbuilding contract is obtained the time lag of securing
finan~ingby forming consortium kills the contract (107),
In a brief case study it has been found that 20';(, of the importedmoney earned
by Islami Bank through export or remittance of the wage earners staying
ahroad can be utilized as a loan and the rest 80% of the money is to be givcn
back to the central hank of Bangladesh (Bangladesh Bank) at a ve,y nominal
rate. So money is not the problem; ,t is the problem of how the risk of
in\"esting in shipbllliding is being assessed and how much courage the bank
ean show to take the nsk. The foreigners, i.e. buyers bank is not giving
counter gu'amntec to the Islami Bank's guarantee given to loeal shipbuilders
conslructing exportable ship,. However Taka 600 million commitled by the
lslmni Bank is pelformance guarantee for 9 ships given to Anonda Shipyard,
which i~ u,ually 10';'0of the total contmet price.

5.2.3 Technical Problem:

a. Insufficiency number of ancillary industries to support the shipbuild",g
industry as backw~rd linkage by providing service and supplying ships'
~ompollents(lOS).
b. lack of Research and Development (R&D), which ultimately fail tn bring:
about any innovation and technological development for pme
compelll'l'CneSSin international ,hip markcts (109).
At present ilanglade,h is not working in the field of ship design. thuugh
skilled manpower ,s available. As a re,u1t lack [If adequate and expert deSIgn

110
 firms and expel1ise in design are an impediment for high value added product

(110).
d Mo,1 of the local shipyards lack modem shipbuilding tools, machineries and
technology. At the same time lack of expert machine operaton; is found in the

most local shipyards

Poor training fa~ili(ics of the technical personnel Local shipymds owner
consider CI'Cryhuman resource development programmed as money drain not
gain (111).

• f Despite long heritage, Bangladesh has failed to keep pace and consistency
•
will? the continuous technological development of global- ,hipbuilding
industry (l12).
g An owner's representative (5) needs to stay for a year or more and o~ca,ional
visim to the O\\(Tler Or to his family are usual for hirniber. So visa for a year
with multiple entries ••••.
ithout restriction on duration of stay on an entry is
neceS3ary for them. But the process is cumbersome, time consuming costly
and earned bad image for the nation.
h. The industry lacks technical expertise and modem technologies for building
comparatively large ships which will ohviously hillder the sustainability of
shipbllliding industry (I] 3).
1. The tec1molog}' used in most of the Bangladeshi shipyards is still
rudimentary; which lacks efficiency. Again overall management of this sector
is weak.
Bangladesh does not produce inerr gases. Therefore aluminum and other
similar works suffer. Importation of inert gases is insufficient and _,cheduleof
imports is planned for monopoly profiting. Non-availability of inel1 gases in
local market due to di,location in import turns suicidal for a project. As
example Ananda Shipyard or Western Marine Shipyard requires 200 bottles
of oxygen and 100 bottles of Acetylene per day. This quantity (about two
truth) ofga> is rcally not e~sily avmlable. So their work suffers and morale
diminishes.
k. The qnality of machineries and equipment s"pplie<1 from lh~. Asian
manufacturing piants of the European manlLfactmers who have set up JV
manufacturing with their Asia counterparts are not the same level as their
products form the European plants.

'"
 L In a shIp there are about 4000 different components. ",hich are to be installed
withi" a very limited space of the ship, Unlike land installation ele,trical
fitting and installation are very delicate and needs more precisIOn.There is
lack of manpov,.er in Bangladesh in some field and p~11ielll~rlyin elcctncal
installation and fining (114),
tl1. Lack of model testing & other faCIlities in Banglade,h. The age of the
depaltment of Naval Architecture & Marine Engineering is 35 years. Towing
tank was expected by the Department since its establishment Hut the hope
has never seen. the I1gh!. NDT and Design Lab faCllitles are a]"o paolOin
every institutes and shipyards around Banglade,h (115).

5.2.4 Infrn,tructure Problem:

a. Aece" to the rivers and sea that i, fmeshore for shipbuilding entrepreneur is
restricted by bureaucrney problem (or red-tapism) as ",dl as unfriendly
attitude toward local shipbuilding
b. Impositions of foreshorc charges, which are abnormally high as well as the
charges on erected installations such as service jetty, etc, are also high and in
some caseS duphcate charges are imposed.
Lack of electricity and gas supply is major impediment which hinders the
setting up shipbuilding industries in Bangladesh (116)
d, Exi,ting ban on importation of rail and sheet pilc imposed by railway
authority obstructs selling up shipbuilding industry in Bangladesh,
e. In,ufficiency in ancillary industries, which act as backward linkage industries
for shipbuilding industry (117).
f Under rhe present import policy and foreign currency ~egulation, import on
Cll" basis i" nol permissible. But this indu.,lly cannot run under such a RlIle.
g. Shipbuilding industry needs a lot of components, parts, and accessories
leading 10 emergency import during the construction period. Existing
facilitie, arc not adequate for emergency import rcqmrcments (118)
h. Compliance Issues are not properly foIIO\'ed,
'- Lack of national inf,a>tructure in everywhere. As example, if we look
approach road trom highway to rhe Ananda Shipyard, a foreign'investor
certainly will not bc impressed by looking at this badly damage road.
 Govcrnment admini.<rrationmay havc to be responsible to repair the mad and
beatify the surrounding,
J. Absence of proper assocmtion of export oriented shipbuilding industries,
k. Lack of mechanism for proper implementation, 1l10nitorin~and updatmg
slrategy for ship export (11<»),
1. Other than Government owned dry-dock, none of the shipyards have the dry
docking facilihes.
m. Other !han few, most of the shipyanls are located m and around Dhaka. far
a~ay from the sea (120), •
There is no backup mdustry to produce required standard of MS plate n~ed
for ship conslruelion.
The l'ivers and channels arc frequently silted 1l ,s very difficult to maintain
channel for desired level of na",gability for ships maneuver. 1 he restricted
draught (Maximum 4.0 to 4.5 Meters) is the limitation to the si7.eof a ship
that can be built in these shipyards, lJriJges and overhead cables may induce
new r~strietion to the ship S;7elhat may be built in a shipyarJs localeJ in the
hinterland (121).

5.2.5 Marketing Problem:

a. Bangladesh (specially potential player like bankers, stakeholdel's, custom
house, foreign affair dept, government'monitoring & regulating bodies, etc)
does nol know the potential of local shipbuilding (122).
b. Image problem of the nation hmder the export of ship (123).
c. Information on prospective overseas buyctlJis limited (124),
d. Lack of activities to promote Bangladesh as a shipbuilding nation (125).
e, On~ of the bottlenecks in ship COllstmctionin Hangladesh is now lack of
convenience for procurement of material. machineries and equipment.
There are nu organized manufacturing plants for manufacturing the
components.
r. Lack of sufficient ,killed manpower in export slupbllilding sedor (126).
g. Government foreign affair departmenl and ambassador, usually are not
playing adequate role in nation"l shipbuilding matter.
In 21" century all countries will be considered as global village due to the
effect "f globalization, Now good reputation is extremely required for export

11J
 orienled local shipyards 10 sustain In the inlernalional business arena. So
buyer's interest should be given utmost important. Unfortunately local
shipyards fail to gi~e due value 10 the foreign cuslomers. Foreign ship's
owners and their repre,enlatives have few reasonable complam about
behavior and altllude of local shipyards.
Europe has been found till now as !he main market of exporr of ships from
Bangladesh Requirement of thc safety and slandard of" ork al lhe shipyards
accordmg to the European buyers are quile high and withoul compliance, it is
not possible 10 have orders from European o,+'ner, Or 10 ~ontinue receiving
orders. Hard head & hand, protecled eyes & ears, ,afety sho~s, s"f~ v,orking
environment, adequatc fire filting appliances, provide fi:esh drinking water
and comfort to workers during break time ne~d to be maintained, But
most of the local shipyards me not nmin,alJlinglpl'actieingthi, standard (127).
Our state diplomacy is not strong enough 10 support export of ships. In
difficuh conlraerual commer<:ialnegotiation, it is a musl to have adequate
support from our mi"ion ahroad, our go~emmenl a, well as cooperation of
foreign embassies in Bangladesh. It is observed that when a difference of
opinion crops up, an cmllas.,y in Bangladesh takcs the side of ship,' buyer
and infln~nce the situalion, On the other hand, under similar circumstances a
Bangladeshi mission abroad does nol take care of the BangladeshI builder.
Bangladesh Shipbuilder has few such biltm experience,.

5.2.6 Managemenl Problem,

a, Most of lhe local Shipyards do not follow corporal~ manag~rnenlcullurc,
b, Family memhers oc~upy the imporlant managerial appointment hke
dircctor, executive COlllJHitte~
member, elc of thc local Shipyards Such
family management culhlre is one of the hindrances for development of the
industry ~ndalso will not commenslllate with inlernational arena (128),
Poor communication between upward and downward grid In the
managerial chain. Middle 1llanagem~nt neither enjoys any financial
authority nor decision-making proces> (with little exceplion in few
shipyard,). As a reoult poor command and control as well as neghglble
dedication toward lhe organizatlOnobserved (129).

"'
 d, POOl'job satisfaction observed in most of the shipyard, and employee does
not f~el belong to the organization. A, a result huge absenteeism and tum
over oflabO\ll and skilled manpower observed (130).
Most of the local shIpyards practice one man show, management culnlre.
Every lkcision comes from owners as per his/her desire and wIsh.
l". Most of the local Shipyards' owners do not care about the welfare of the
empl"yee, (131).
g. The governmentpolicies are complicated and not vel)' pleasant in sUPPOl1ing
the expansions of the industl)' as ~ whole.
h, Workforce never enj"y, fnnge henefit and other labour w~lfare'acllvIIICS
like me,-h~al, pension, tm"e1 & daily allowance, accident & other
eompem;ation,etc. Most of the labours are employed in casual basis (l32).
Sub,lanti~l number of Graduatcs and other skilled manpower trained m
Maritime Indu,lry leave the country for over,ens employment.
Every valued customer I"oks at the quality of management. Ho,", lhe
managemenl is perfonning'! What are the managerial tools lhal arc using by
yards to ensure continuous improvcment of producl~ Are lhe
managerial starts arc responsible and capable cnough to soh'e the day-to"
day problel1ls~Is lhe managemenl prompt to ,,,lve lhe daily problem','But it
is really shame that answer of those que'stion in negative for most of !he
local Shipyards.

5.1.7 Human R.,ourcc De~clopment Problem:

~. The eXIstingcour,e cuniculum oftl,e umversities and technical & ,ocational
imlilules somehow match wilh the requirements of hea,)' indmtlie, at larg~
and shIpbUIldingindustry in particular.
b, "fhe number of graduates, skilled supervisors, foreman, specialized welders,
cutte"" filters, machine operators and other technical skills that al'e required
for shipbuilding and allicd industries are far less than lhe minimum
requirement
Substantial' number of ,killed manpower leavcs the country [or overseas
~rnploymentas there is inadequatc nnmber of3hipyards in the country (133).
d, Existing technical inslltullons are nol much capable of producing the reqUlred
number and level of ,killed manpower lhat can be employed in shipbuilding

115
 industry due to their less familiar industry based curriculum nnd lack Qf
practical training. TQ pwduce skill~d manpo"er up to the leq\lircd level,
Government SUPPQltin this regard is appeared insignilicanL
c. L~"k of de,.l\caledhuman reSQurcedepartment in the local shipy~rd, (I 34),
f. Government docs not h:l.'.'elong.term vision a, ",eli as accomphshing her
mission for human reSOUrCe
develQpment fol' I'he country, Sorry to say that
every thing running in Banglade,h as ad-hoc basi.,.
g Unrest political CQnditionmay intenllpt the smooth eonlinuation of thi5
busin~3S
•
Lack of skill and loyal workforce is a major Shol1comingfor the industry,
•
Government in conjunCl'ion with ~hipYHrdsowners shonld endeavQr to
formulate a welfate policy for yard workers and pmfes,iollals so I'hatrate of
staff mrnover remain, v~ry low (DS).

5.2.8 Quality Problem:

a. Lack of quality control group and their work Hndcapabihty are in question.
Numhel'Sof question against them are raised by the foreign ship owner or by
their representative. But local shipyards OWnCrare fa\l~d to sHli,fy them.
Shipyards must remember that quality accelerate entire process to get the next
eontl'act(136).
b. _.Working environment i, not up to thc standard, Local shipyards OwnerSdo
not bother about ",orking environment due to the a,'ailabiiity of labour with
lower cost.
L3ek of sincerity of workers and shIpyards' owner due to poor job
satisfaction and working environment.
d. Poor job satisfadion of the employee,. -Employees have huge complain
again,t the shipyards owners abont their human quality and pen;onal
behavior.
f. Policy planners, government officials, bankers etc. generally are not a\vare
"fthi, ,eclor and \ts potential. A, a result de,elopment of the sector is
l"ogressing at a slow pace,
g. One of the key weakne,,", of thc industry i., the di,hone'ty and frand
character of thc people. The people of the country usually try to cheat and
apart from normal profit, they want to gain mOreby bluffing (137),

116
 h,
- .' ~ - --
Bangladcsh has IHck in safety culture. Safety is a long-lernl inve,trnen!.
Though lhe initial cost for safety aSSurancemay be high, But gain III lhe
long run is accumulative anclit adds to the quality (138),
'- Quality is tbe prime requiremenl of sbipbuilding induslry, Becau,e a
flawles., ,hip which plies on the sea far av,ay [rom tbe shorc for quite a
many days al a stress, Quality in a shipyards uSlla]]ymaintain by quality
contrc>1grc>upof shipyard itself, by the c!a5Sification society and by the
ov,ners' representalive. This is very demanding and evelyone m the
sy&temmust be cautious, dedicated as well as prepared to unllergo strenuouS
activities, A chain of ,uch professionals is necessary, but it is missing in
local sbipyards. It needs time to develop ,,,ch quality assurance aclivilies in
local shipyards (139).
J. Banghde,h ha, to he competitive Wilh lhe other shIpyards around the world.
Government may sponsor benchmarking activities. Renowned export oriented
foreign shipyards delivers a ship withm about six month, whereas local
shipyards take 2 10 3 years 10build and deliver a ship.

5.2.9 Delav Deliverv Problem:

a. As Bangladesh is a new player for export of ships to fOl'eigneountnes, so it
will lake SOmereaction lime. WIth the on going experience it will come inlo
solution. But foreign ship owner are not reluctanl in thi, matter.
b. A limely deliwry;s a spirit of .,hipbuilding, because the inve,ted capital is
huge. But pnnetuality is not habitual in our cuilure, Here houn; pa'S in traffic
jam, days pass away on moving files and delivery is delayed. In general
Bangladeshi shipyards are not able to match the delivery time of a new huild
ship with that of other countries, A, a re,ull liqmdated damage due to delay
delivery is foreseen,
Shipbuilding is a complicated and ilea'y engineering pwces., demandlllg high
skilled planning, momloring, quality control as well as accllra~ies in
engineering works, hery ship is an individual project and requires speeitic
planning, programming and scheduling, In time procurements, i.e well drawn
planning, opening of letter of credits, payment, of advances where necessary
must be flawless as all activities are interdependent. Banks and cu.,toms
houses must under>tandand do the utmost for mmntaining scheduIcs. This i,
 ." ',"' '

highly lacking in Bangladesh. There is severe deficien,y of expertise in this

area in Bangladesh. Ultimately delay is must in delivery of ship.
d. Absence of adequate Backward Linkage Industries is also a main cause of
delay for delivery of ,hip' which also increases the cost of production.
o. Absence of proper Green C!runnel facilities by customs [or 100% export
oriented shipbuilding industry,
f Absence of adequate government care in new export orientated shipbuilding
industry.
• g Poor management and planning process for entir~ system/job.
h. Most of the local shipyard does not follow the modem job evaluation and
execution technique (£uch as PERT, (PM, etc).
Load shedding is a common phenomenon and may continue for qmlc
<;omelime.Loss of output and dissatisfaction of owner arc colossal and one of
the reason fol' delay delivery. A shipyard's load consumption pattern is
similar to the freight index wave. Use of shipyard's generator is not the
solution:
Clearance of importable goods thl'Ough the custom in Bangladesh is one of
the complicated and tl'Oublesomejobs. Because of checking, rechecking and
examination by an cxpert eommiuee, in some cases, more than six monlhs
thm claps~d, imported goods got damaged or lost at the port Green Channel
method of clearance can solve the pl'Oblem. Again 'pirit of Green Channel
may be lost if some complicated condition enforced. As il happened in
Bangladesh, where for import of raw materials through [':rreenChannel needs
10 fulfill 13 different conditions and 6 different c~rtificates n~ed;;.to be
produced, In shipbuilding thousand of item., are necessary (0 be imported.
Dlle to the laps in early iden(itication or for an ilem IOSL on (he way or
damaged during fining or non-functioning equipment, emergency import of
such item is necessary, For laps of few small items may delay lhe delivery of
entirc ship. So import of ~xport-orienled ,hip's items should get special care
and spirit of Green Channel should be mainlained. Unfortunalely, in many
case it is not maintained (140),
 5.2.10 Price Problem:
a. Indian shipbuilding industry are enjoying initial five-year (more Ihan
30%) governmenl suhsidy 10 develop Ihem as internahonal standard.
b. Most of the internalional export oriented shipyard is availing tax- holiday by
their government. Whereas Bangladesh export oriented shipbmldlllg
induSIl)' is not getting this facilities.
Absence of adequate Backward Linkage lnduslries. Plate, engines, pumps,
machineries, paim, other componenls, etc is imported from foreign counllies.

• As a resull ship production cost inc;reases.

d. Tax on imported shipbuilding machineries and componenls enhanced the
ship price furlher extent (141).
,. Lack of expert financial department in the local Shipyards and poor future
forecasting in decision-making process.
f. Excepl labour, almost entire shipbuilding industry is importing oriented
Industry. As a result ultimate unit price of ship is increases.
g Sbipbuilding requires gllarantees to be issued by banh acceptable to
foreign buyers. Bllt Bangladeshi commercial banks have to obtain counter
guaruntees from foreign banks. This adds to the cost of capital.
h. From the discussion with Shipbuilders and Banks it is visuali7ed lIlat Bank
interest and service charges are too high in this Seclor compared to other
international' competilors. This IS the major obslacle to develop
shipbuilding industry in Bangladesh.
I. For ,"sumg bank guarantee annual 8% commission is charged by local
and foreign banks which is very high. This increases .production cost of
ship> built in Bangladesh. Such bank guarantee is required for equivalent
amounl of advanced paymeut and price of raw mate,ials received by lhe
builders from tbe importing company.
J. The above breakup of tbe cosl (mentioned in financial problem) mean that,
additional t1naneial cost of ships in Bangladesh is about 15 to 25% (bank
interest 3 to 6% + guarantee 8 to t6% + UC commission 4 to 8% +
othcr chargcs I %) higher than tl)e otber compeling nations like China, Korea,
Japan, India, Victnam, Bl'azil, etc. (Eslimate bascd on informauon eol1eeted
from Ananda ShIpyard and Slipways Ltd. and Islami Bank Bangladesh
Limited).

119
 Shipbuilding in Bangladesh suffers due to non-availability of allied
supporlmg industries such as that for manufacture and supply of control
panel, switchgears, cables, electrical fittings, fire doors, windows, deck
fLClings, galley items, etc. It is sorry to mention that. quality of
Galvanizmg. as necessary for piping and fitting', is nol up to the standard.
Cost of building ships will reduce substantially when these allied industries
grow in Bangladesh and retention will also then increase substantially,

m. The equipment rnanufadurers of foreign countries do nOI place good and

cornpellllvc offers fo~ Bangladeshi shipbuildern, which make the co,t of ,

imported items higher and so the construction of/he total ship_Again 60-65%
of the total contract value is to be imported from abroad for orders placed in
Bangladesh. In ease the share of a local manufacturing/supply of components
and services would have been bigger. Both !h~ schedule and cost could be
made lower,

5.2.11 Some Spcciall'robleins:

a. So far last three years government agencies such as Ministry of Industry,
Ministry of Finance, Ministry of Shipping, Bangladesh Bank, National board
of Revenue and evcn Prime Mini,ter's Sccretariat have shown keen interest to
support the export shipbuilding. There had been three high power committee
,md they submitted reports. But it is really unfortunate for the industry that,
there has not been any policy p"per not any 'peeific government suppon yet
declared. As a re.sult ships' buyers are very skeptical about the smooth sailing
of specific shipbuilding projeet. Because buyer is pay the advance, or the
hard reWUTceS.It is extremely important to declare and make the position of
the go~emment by clear in writi~g with respect export shipbuilding,
b, Shipbuilding is a foreshore dependent industry; however it is environmental
friendly and does not spoil water or flow of river. Foreshore is under the
control of BIWTA. 13U1it is 'lLrprising to menllon that, BlWTA in some
extent hostile to shipbuilding industry. rhey lIsually impose unbearable
eharges for using forcshore by the ,hipyards
Attempt, are being seen to import vessels and emf! which Banglade,h can
build. As an example, the reeenllmports of2,d hand patrQIemit by CPA.
d.
--
One of the recently evolved dangers that has been [mmd that is the threat of

cancellation of a contract. It is not very difficult to find a flow to cleclare the

builder at default and thus to ha,e a tool to cancel contrac!. BeCa\ISC of the

sllJdcn fall in sleel and prices ofvcsscls, Buyers' b~nks "ish In step 0\11of
financing of an existing ongoing contract on the first opportunity and a buyer

may use the plea 10 cancel a contract.

c. There is fairly a large market of smaller craft and Bnngladesh ha, the
capability of building them. Because of high labour contents in those vessel,
it is dc~irablc that Bangladesh concentrates in this excellent secllOn of the
markel. But smaller vessel> cannot sail on their keel across the sea, On the

other hand, transport vessels neither available nor hire-able with reasonable
price. As a rcsuJ( B~ngladcshi builder loses in competition due to inclusion of

high freight Cl1al'ge,

f. Intncacies ami v~rious requirements of eXP01t shipbuild;ng such as timely

deli\'ery, handling of owner'" supplie", closing of a finanei~l deal, timely

action of bank 'and quick clearance of ship on acceptance etc arc not

appreciated in Banglade"h. Policy makers, officials, bankers, and potential

gowrnment authorities arc not adequately com-eT5ant. and therefore not
complacent to complexities of shipbuilding. They are at tl1e same time

unaware of the potential" prospects and necessitics of shipbUllding for the

nation, Thcsc arc the real bottlcnecks for the nascent shipbuikling,
CIF ha>l,' import is nO! allowcd due to various reasans. But elF basis impart
is necessity for export shipbuilding husiness to reduce the nsk af builder>;. As
example, if a pmpulsion plant, which comprises of main ~"ginc, stem gear
and pror~llcl'; is imported on CNF hasis alld insuTI\n~~ is tak~n by thc
impotter (i e" builder). for any damage of materi"l", importer will be
compensated by insurance company. But the loss or damage of materials
needs to be imporled again. Now an incident happens anrl propeller has bcen

lost. So propeller need to be produced ag"m by the maJ\\lfactlircr and s"m~ to

be impotted at the Same way. Ultimate result is delayed of entire Shlpbmlding
by one year, So shipbUilder witl face huge liqlLid~ted damage and Will inCllr
uncompensated loss. But in case of ell' basis import, the supplier or
manufacturer had to supply the completc package in his own responsibility
 during any loss or damage of malerials. So builder is in safe side in elF basis
import (142).
h. TIle social environmenl oulside the shipyard area is also an important factor
which affects the possibility of recruiting competenl people who would have
the chance of staying inside or in the vicinity of shi!,yard area with their
family. The social environment comprises among other f~dors, schooling for
children modern markets, recreation clubs etc, Most of the local shipyards are
loeatcd in remote area without having such social environment.
1., Government is somehow reluctant to make n~essary regulations m
accordance with the gnide lines of Inlernational !.ahour Organization (lLO) &
International Maritime Organization (lMO) and COnVm~elhe concerned
ol'ganizationsliru:titulions 10 ensure proper compliance to the issnes relatcd to
the said organizations.

5.3 ECOSOMIC RECESSION AND CANCELLATION OF SlIIPS' ORDER

5.3.1 Global Shipbuilding an'd Economic Recession. Global shiphnilders arc snffering
from ordcr can~ellatiOll, which is expected to contunuc in 2010 hammered by spreading
financwl crisis and overcapacity. Barry Rogliano Salles Group, a French shipping brokerage
firm predicted that 20% of global shipbuilding orders migbt be withdrawn in the following
three to four years (143). The whole cancelled bulkers would reach 120 million DWT and
standard ships and dry bulk ships may bear tlie brunt. Some rcport even estim~ted that the
order of about 100 million DWT of dry bulk carricrs on order will be canceled before 2012,
taking up One third of the total global bulker orders. Mr Liang Zhiyong shipping analyst of
China se~urities state said that, unless depressed global shipbuilding m~rkel recovers and
fman~illg mea,ures go well, 2009"10 will be the pe"k time uf order cancellation. Mr Liang's
also mentioned, despite rising cancellations, most clltn:nt withdrawn orders are unendorsed
and h""en't been nrranged to eonstruCI. Il will pill limited impacl on shipbuilders evcn
massivc cancellation. happens. Hc viewed, il WIllhclp to slow do"'n excessive e"'patlSion of
world fleet, and adjust demand and supply between ,hipping and shipbuilding. Some
shipyal'ds may agree 30% price decrease or more, pre,sing China's shipbuilding industry 10
severer fulme than ever. Meanwhile, associated industries also expose heavier nsks,
I'e,u!tmg in shrinking earnings for suppliers of marine eqllipments, l\-IO'Icancellations are
speculative hubbIes, Stalistics shows that China's ne", shipyards held 44,5% of the tOlal
order, alll1e end of January 2009 especially those with few performances holding 11.5% of
 the total, far lO",ering above South Korea 7,7% and world average level do'Wn by 9.7%.
However, fledgling shipbuilders that are always weak in the negotiation will accept request

to defer orders even they could keep away from order withdrawaL The cancellation of orders
in the phase of construction should be attributed to shipbuilders' inferior delivery capability

due to bankmpl or high pmduction cost. A substantial part of abolished orders an:

speculative, as the opportunists had made contracts before they found enough financing
guarantees Of customers, According to a statistics, half of orders from Turkey are

speculative. But world-class shippers, like Maersk Shipping Group would postpone orders
instead of immediate cancellation .
• •
5.3.2 Eennomic Reeessinn and Effect {In Bangladeshi Shipbuilding 10 Bangladesh
more than fifty small und-large dockyards and their associated organizations arc generating

more than 150,000 Jobs, but only a few companies have been able to attract foreign bnyers.
So far, local shij'yards-mainly Ananada Shipyard and Western Marine Shipyard have

received over US$ 600 million ,",orth orders to make more than 40 vessels, with a capacity
below 10,000 DWT each. Moit of the orders for these ships come from various European

eonntries like Gemmny, Netherlands and Denmark. The worst global recession since the
great depression h" cansed funds to dry up, making it difficult for shipping lines to arrange
loan, for new vessels. In 2009 global orders for building vessels have become less than one-
third of the total orders of aboul 10,000 ships in 2007. Bangladesh, a new entrant in global

shipbuilding markel, i5 yel to face any cancellation of orders or deferment in payments, like
!radilional ,hipbuilding nations. Local shipyards' owners' mentioned, th~ yein 2009 appears

to be gloomy and low profile year for shipbnilding worldwide but it will nol affect
Bangladcsh. Bangladesh concerned bnl not worned because Bangladeshi market is qnite
different. Baugladeshi shipyards build project ve.'.,e1s, not large ones, orders of which are
can~dleJ {144}. So l3anglade,h would not face any blow like cancellation of orders. Expelt
vicwed, Banglade.,h feared Ihal the 2009 will be a difficult year for ship m~kers, both large
aod small vessels, due to fund constraints in developed economies. But it is a good time [or
Banglade,hi shipyards to prepare for the ["lure so that local shipyards can riXC1Veorder,
after the rceo,er, from the curren! meltdowll_

123
 (1000GTl ITransition of New ordersl
1~1J.l111II

I ~II,IIIH)

!.jO.flIHI

Illl.lHll1

I ~II,IIIII'

81).1)'1'1
b~.IIL)1I

-111,111'"
211.1'1)11
II _,n." Ib, Ib, "-l'!lJ-. b.v, It, lJ...RJ, a,a;
8S8"119191'3Y.j959~'7Q89ql)lllllfllOJI1411<~61111IH L1oyd's
Yo.' statistics
Il!lllIJ.p.n =Koc •• r::::::::;EU_Chin. __ WorldTotoll

Fig 5.3 Shipbuilding market bn." Il"e to Rece~~io"

5.4 SAFETY HEAT ,Tfl & ENYIROj\")'IEl\T (SHE) ASPECT

5.4.1 Salon and Hcalth Aspect. SHE a,pecls ofu,e of various shipbuilding makrials in

the shipyards including Ihe affeci of hannful 'Ilbstance, and SHE related exposurc in
movement of materials and related me~sure, wen; Identifi~d, Only few locul shipyards h~\"e
been found to be comcious ah{'U!,afcly, health ~nd en.ironmentai "'pects, which arc again
at awrage level. Bangladeshi people arC basically risk mk~rs counlr)', That i, "hy
Bangladesh has a maje>rshare In global ship breaking mdmtry ",hie]' L,a h~zardom industry
in re'pect o[ SHE factors. 111eexport oriented shipbuildmg is wry new and Ihe ,hipbuilder<
arC more engag~d in enhancing their skill In teaching, fmancHlg and marketing Safely_
health and environment are yet to be recognized as important iss,,", in all 'ptc!';; 0j'the
society. The long tcm] effecl of safely, Health and Environment~l nleasures are yet to b~
understood. Thc cost re'luired for thesc measures she>uldbe con,idered a, In,'e,nnent and not
as exp~nlhture,. Proper awaren~:;s and !raining is e5S~ntiaLGovl. rcgulations related te>SHE
aspects need to he modified and proper implementalion of regulation, need to b~ ensur~d.
The rq;ulallons ar~ to he made so that the prospe~u"e shipbUIlders do not take these as
hindrance. These a'pec!> should be shiphuilder friendl}' specially because Bangladesh has
Just starkd (he export onented shipbuilding. The for~ig;nbuyers h",~" maJar rok (0 play to
enhancing Ih~ lc\'c1 of SHE il1the local :;~lpyard, In the RMG (Ready made Garment sec(ar)
of Bangladesh ther~ i, a li\'e ex~mple. Pre.iously th~ children were also workmg ttl the
gamlents indu,tne, le~\"ing their sc~ool and being engaged In hard monotClne>usjobs which
w~re not safe and hcalthy. The European buyers then made thc condiuon in the contract with

the lo~al gannent, manufacturers that the children "ould not be allowed to work in the
factori~, whcrefrom thcy would buy the gamlents. These tr~mendously reduced employnlent
of the children in IUvlG sector of Bangladesh, The advantage of slipping ,e"c:\s on rail
wheel s}';;tem to avoid ~ontamination of river "atcro, bordering the yards "ith trees to
upgrade the en\ ironment, uSe of safely shoes, go£!gle, and helmer. hand gloves, designing
shipbmlding hall>, water hydrant, using the slipway ropes of enough strength, inSlalling fire

fighnng systems al variou, place, of the 3hipyard, employment of doctor, and first aid
houses. connectim,l "ith the 11()spitals,como",n provision of ambulance etc ~re to be made
aware to both the shipbuilders' management and the"lvorker,. Pressure from the government

and the foreign bnyers together with the a"areneSS program and training On SHE a,'pects
willlcad the yards to wtemarional one'; the I()gical ,equencc is more order, more money and

enhanced salary [Drall (145).

5.4.2 Environmental A'peel. Currently, n()lhing will allure more public attentions than

the envIronment aspect that affect; the shipbuildwg industry. In the shipbUIlding process,
many working procedures are polluter if proper -pre\'enling measures are no( in pIa"",
Among them, th~ process of ShOI blasting, plate and sectton preparatIOn. welding and
paintin:;: i, th,' most significant rroublernakcr. In ca,e of shot blasting in open air, the
controlling and diminishing of wa,le, whIch i, dnst and sound, arC dtfticulries am] require
expamivc appliances to diminish, the costs 10 rednce p()l1ution absolutely go to tl:e accounr,
"f the shipyards, Such additional ~xpen5es are unavoidable in de\'e loped conntri~s In case of
paint work. shipyards widely use the paints. "hlCh conrains Volatile Organic Compound
(VOC). voe is an element thar produces ozone by responding to sunlight (146). European
Union limtted the quantif)' of emissIOn or di;;posal of contaminallot\ for thi, kind. It i<
possible 10 use the paints that do not contain,; voe, bm the expenditure for painring of the

ships "illlncl'ease.
 •

" " • •••••••••••••••• .............

.
:'
"
............. " "
."

,'(;Ib" I' 'la'' '

Iii
l
;, ii'
':"1
..' .!,
I,'"

,;'. -
'n, '''' -..
I,
1',:
I~ ::
,
I'
,t'e"'""r"
"
11 ,L
l

. " I:
••••

I ":,',I'! ,'. ..i .oi' ,"'I" I'I

•••••
"GiIiI,
;5!!r
' :'
I
Ii
.
• ••••

.,'"
••••••••••••••••••••••
"
-
!

. .
" ". ".
........•••••••••••••••••• .,'"
"
.

CASE STUDY ON GLOBAL LEADING

SHIPBUILDING NATIONS
 ANALYSIS OF IMPORTANT FACTORS THAT STEER GLOBAL
LEADING SHIPBUILDING NATIONS (JAPAN & KOREA)

6.1 Spedalized Tedmolol!\' and Skilled 1.1IbourBoa,t up Shipbuilding. In the

IY50" th~ ,11ipbuilclingindustry of Japlln was comramtively lagging behind ouce leadmg
shipbmlding nations in Europe and America, It wa, rcally a astonish when Japanese
~ngin"~rs \ isited (he shipyards in USA, since many sophisticated production methods, such
a, block building and welding, had been employed for years. In thi, relation, the \\lorh of
catching up was Ihe fint thing for tn.e shipbuilders to do. Not surprisingly, the catching-up
•
• did not take long time. After mastering existing shipbuilding technologies learned from the
, '
leading shipbuilding nation, the shipbuilder, in Japan began to develop by its own
knowlcdge and expertisc. Japanese Shipyards started to improve the layout of the plants and
facililics in order tD improve efficiency on building large blocks for large ship" The
shipyards actively took pan in the programs ralsed by Shipbuilding Rationali7..ation Council
and lhey improve the welding rods and steel plate,. Again JapJnese Shipyard, de'"elop ide"-
"how to blllid" instead of "what to build" philosophy unlike other countries, Thi, new

philDsophy in Japan integrnt~d all worktng proC"SS~s into general working plan and an
processe, were planned in ad,ance, Evidence ,hows that major improvemenl in productivity
dunng the 3_year_penod (from 1953 to 1956). the man-hour required for building a
50,000d" l tankcr waS redueed by 20%, besides. the consumption in steel for the S3mc ship
decreJ,,~d by 20';'" Thi, strongly Implies the competiti\'cneS5 of imJustry to meelth~
demands from ,hip owners for carlier dell\"ery as well a' cheaper CO" of new ship" Finally.
new philosophy increased rhe efficiency and the prodncll\'ity of !h~ Japone,e shipyard, and
ultimately Japan became No,l shipbuilding n~llon in the world ",1956 AgaIn, e~onoml~
clas' shIp invented by Japan, "hich \\'~s th~ outc()me oftr~ns-nomlal wisdom, generated bv
the panicipant, ~nd was considered as ~ paradIgm shift in thol era (147). It minimized tbe
co,t of building really large ships and provcd 10 be most economical form of transport bulC:"
c"'gnes. This had a ,hrect influence in redu~illg the expendillll"S in both co",tm~tion and

operations (148).

Technical luno\.~tion and "'an:lg.riai Skill ProlllOte Shipbuilding.

The
6,2
lrll>!\\'nnhy effort, on inno'at;on combining wjth nCW te~hnoIDg,' ami skilled management
ore the "pproJch 10 securc long-term pro'p~rity of the industry. Korean shipbuilder, have a
strong ~ar"bi\ily of developing own ship models, TIle Korean shipbuilders 1O(I\:.years t(l
develop d~,igns and building t~chnQIl)gics for large conwiner ,hips and larger LNG carrier>
(149). And in 2004, Korean shipyards get 57 ships out of tota] orders of 86 LNG tankers in
the WQrld (ISL, July 2004). When looking into the size of carriers they built, the average
size of the c~rtiers ,,,a, 72.860 GT per unit that suggests the largest LNG carriers arc under
construction in Korea. Moreowr, in the larger containership sector, Korean shipbuilders

were the only dominator on the global market, the strengths of graspmg orders of neW
huildings not only derive from the de,ign and building technologies but also from ad"anced
shipyard managem~nt, because building such largc ships in fairly high speed requires
unu,ual m~nufacturing flow, as well as skillful supply chains. In addition, the number Qf

ship designers could certify the stroll:; ability on the a,pect of ship design. In Korea, some
2000 sophIsticated ship designer> ~etively 'Work for the industry, adversely, in Japan; the
numbers of de,igners is only 200. Additionally, every year there are about 700 young
professionals in rel~tion lQ shipbuilding graduated from universities in Korea, 'Which
guarantees SU.,tainable development of the indu,try. Korean shipbuilder;; shared the views
with th~ir Japanese counterparlS that the efficiency of the shipbuilding does come from the
improvement of productivity Traditional production techuology always has it limits '0 that
il1llQ\'ation in building technology is vital to improve produ~tivlty. In order To obtain
efficiency in the buildmg of LNG carriers. H)llndai Heavy Industry (llHl) spent J years
indulgmg itself in the field of ship de"ign and blllldmg technology ln1999, IllIl largely
shQIlened the COnsl!llctionperiod of a LKG tanker in lJO,OOOeubie meters to only 109 days.
Thus, the imernational compeliti\'eness was consIderably established for this particular shIp
type Another famous shipbuilder DaewoQ innovated the met],Qd of better utilization of
docks, through perf~c( and pleci,e' organization and management, this shipbuilder was abl~
to build s~veral vessel, in different type, within one dock. thus greatly improved the
efficiency. Some shipyards in Koren even introduecd the pro<1uctiQn concept "f car
manufacturing mto the shipbuilding; it w~s the caSe of Samsung l-I~avy Industry, as such the
pmductivity wa, improved. In th~ y~m, of 200-'1, du~ to yeT) strong demand of new
buildmgs '~orld\\"ide, Wilh aim tQ accommodate more orders, Hl-Ilused dry_land fJeili(i~$.
which wa, the building t~ehnology of off,hore construction, to build and deliver 16 AframJ.-"

to thc market

6.3 1ndustriatization iI the Precouditiou for Development of ;Xational Shipbuildiug.

:,inc~ 1'-)55,the takeoff of J~panese eCQnomy created much import and export. A, a resuI!.
economic cn,'ironm~nt pl'Q\'i,kd ~~cellent "pportunity to grow domc.tic shipping industry.
consequently the S11ipbuildmgindustry. In a lO-ycar p~riDU, import increased from 2,4l)0
million, US dollars to 7900 milhons. a rise of 330%. The commoditics imporred by Japn

128
were raW materials and energy, ,ueh as iron are, and crude oil. Export performed at almost
the same grov.1h rale which rai,ed from 2000 million, US dollar to 6600 millions US

dollars. Dunng the period, the structure of the Japanese economy experienced a change from
mainly producing the commoditie, "f light industry to producing the produC[s of hea,)'
indmtI). Huge amount of imporl and export required a big fleet to support. Therefore, the
Japanese shipping Imlustry responded to the demands by increasing: the tonnage, from
3735000 GT to 10813000 GT. On tl,e olher hand, the industnalization of Somh Korea
started in early 1970,. The economy showed the same distinetlveness as the Japanese
economy dId In the middle of i950s. South Korea ,tuted to import huge amo~nt of raw
materials and energy and export many products of heavy.industry (150). During the process
of the industria1ization in the country, the shipbuildmg industry devel(}ped due t(} huge

internal demand f(}rthc ships as welL

6.4 Financial Support and Involvement of Government is the Main Dri'ing Force 10
Grown up Shipbuilding. As earl}' 19508, the J~pane,e government launched a "Program
Shipbuilding S~heme", whIch allowed (he Japanese shipping companies to obtain favorable
loans for fleet expansio"'. The scheme rulcd the shIpping compani~;; "ho rec~ived the lo~ds
out of public money ,hould only build Ihe ships In Japan. Su1i t(}day, the said scheme is
remain aliw. Moreo\'er, in arlier to attract ships' orders (}fnew buildings on the international
market for the Japane,e shiphuilders, the g(}vernment provides l(}w-inte]'est loans to foreign
sliip o"ning companies thlOUgh export and imp(}rt bank 'of Japan. Again reaiizing the
Japanese .,hipbuilding Industry was not competitivc in the intcrnational market in 1950s, the
gowrnrnent set lip Shiphuilding Rationalization Council for the shipbuilders. The councIl
consi,ted of maritime expcrt< f]'om all fields .rdated t() thc shipbuilding aiming to improw
overall competences of the shipbuilders. ror in,tance, at lhat moment, the prices of ,teel in
Japan we,e 30% higher Ihan the prices in other shipbuildmg nation" so the council was
asked to "ork with domestic steel m~nl1facturer< to resolve the problcttl. In onler to fulfill
lhls goal. the gowrtlttlenl d~~lded w offer ftnanclal aid, w steel w(},ks. 1t was the famo",
"jnterest subsidy'". 1\1eanwhl1e,1he government al,(} p""idcd license~ Wilh sted worh fm
trading urgent commodities for the nation, the profits om of these trades mu,t pay for thc
e:<pen,es of R&D f(}rthe steel plal~s for ,hip \lS~.Finally, the price, of.teel d~crcased and
the quahly of steel improwd Furthermore, the ofticials als(} acll\'cly initiated and involwd
in rcmf'anizari(}n and co-op~ratlon among Japanese shipbuilders by offering: viabl~ p"llcic,
and fund, to the Indmtry. 01\ the mher hand. in tern" (}f financial aids, the measureS taken

U9

•
by the Korean government are quite similar to the Japanese government. In 1957, Export and
Import Bank of Korea was set np to facilitate the shipbuilding industry. Currently, the
portfolio size of the Bank is 900 millions US d"llars, "hich is one of th~ largesl sources for
ship fInancing m the "orId. In 1967, th~ ~nacuneut of ShipbUlldmg Industry Promotion Act

lined the \\'ay for lhe shipbuilding indu,try (151). Since then, the industry has receivcd
tremend(}us suppon from the government. Again in 2004. the Korean go\'emmem limited
the quantity of steel plates t(}export for the shipbuilder, in China due t" scaT~ityin steel, for

the ohipbuildi"g "orIdwide.

•
6.5 Co-operation among Loeal Sh.lpvards is the ,ignifieant issue ({llmprovemcot uf
Entire !S"ationalShipbuilding Industrv. The success of the Japanese shipbuilding
industry ean also be attributed to reorganization of industrial ,tmewre along tr.e
development and comtant co-opcration among Ihe shipbuilder>. This increased the
compctitiwne" of the industry as a wholc. The merger or joining activities of major
shipbuilders In Japan principally focused on enhancement of financial Staws and
improvement on efficiency through better utllization of building facililles as well as lluman
reSOurce,. In other words, the merger, provided the 'opportunities for the builders to avoid
duplicated im'cstmellls in capacity Aft~r scveral mergers, seven large shipbuildmg group,
emerged in Japan They m~,nly targeted ~t the market of larger ships. such as VLCes etc, a,
",eli as higher value markets. Co-operation b~tween smaller shipyards and large on~S wa<
the outcome of gOYemment polic) of Japan Hi 1964 and both SIdes beneflted from It wi,h
smaller one happily oblaining the know-he",' from brg~r ones and larger oneS rationally
allocated mid-size or ,mailer ships to smaller oneS from the b~le orders receiYed at the
shipbmlding market (152). On the other haod, the co.operation among the shipbnilders in
Soulh Kmea i, realized through sc\'eral organizations. The Large shipbmlder;;, 5 mega-
shtpyard" established Korean Shipbnilder's Association in 1977 (Koshipa), The major
fimctions of the "sooci~tion are to co_ordinate the interests on the imernatiooal market
faeilttale technolQgical e"(changcs and ~nhance international partnership<. So the co-
operation among the shtpbuilders is the key to lift up the overall capability of the indnst')'.

6.6 I:l,wkward Unkao-e and Suppl\" Chain is the Important PrereQui,ite to

En h~ncement of Shipbuilding. The ;;uccess of the Japanese shipbuilding industry IS
larg~1)'ba;;ed on lhe capability of lhe backward linkage ind",tries or ,upp Iy chain to the
e)\~llcnt pri~s and savm to the shipbuildCl'$,For insllmce. st~ls worts supply the steels
to tItc shlpbui1del'$with variOllSsizeslllld shapes In atWfding \\i!h tItc rcqulmnents lISper
!he drawings of the shipbuilders. Sueh servk:e is hard to Image in other shipbuilding nations.
The co-opcn.(Joo In the supply e~ln incvilllbly Iellds to elftekney and finally the
intematiOJlllIcompetitivenC5~.Moreover. the eornmunJeation betwCICf1
the shlpbuilder5 Illld
the suppliers Is vc:y effective. both panics benefit from ~tive pcrfotmllllOCS.So fur. the
rate of domestic supplies for the new buildings In J8P=1nhas ~hed to 97.8%. On the other
hand, in South K~ tlte nile ofdomeslic availability for the supplies i, about 85% (Source:
CANSI). Major suppliers in Korea belon8 to KotelITlMarine Equipmclll AS:lOClation.TIle
association aims IIIa higher I'llteofsupplics for the shipbuilding indusuy In Korea (153). At
present. the shipyard is mostly an assembly plant, which relies on the c:apllbilitlcs of the
entire bsekward linkage industries Ofsupply dulill5.

,
•

Flg6.1;

131
IS CHINA GOING TO BE NO I WORLD SHTPBUILDIKG NATION
\VTTHIN lOIS?
6.7 Genernllntroduction and Shiphuilding Hi,torv of China. China was once
world-leading ,hipbuilding country in primeval time, The fleets of Zhenhe reflected that the
shipbUllding industry 10China was "ell developed 600 years ago. Due to "Blocking" policy
in the later hundred year;, China had Ie» chance to exchange or learn technologie, from

advanced economies. The enllre1y indu,triallevel in China was far behind the "orld leading
nations in the 1950s. The growing of the Chine," shIpbuilding indu,try was rapid. In 1980,
the throughpul of the indu,try wa" only '200000 GT, which was ronked No.1 7 position in the
world By 1995, Chmese shipbuilders replaced Germen as third place with 5% market ,hare
in the world, The report from Chinese Officials in the industry claim that 70% to 80% of
throughputs of (he indu.,try are works of foreign owner, SOfar. The Chinese shipbuildmg
industry IS able to build all types of ship except cruises ship, Among them the ,hips of bulk
sectors, bulk carriers and 011 tankers. are main products of the indu,try, About 70 shipyard<
are able to build ocean.going ships that are in line ",ith the shiphuilding industry, Two major
shipbuilding giants are csse and CSIC. In 2005, the leader of COSTICN announced
amblllO\1S scheme for the development of the Chinese shipbuilding induslry. whIch is the
industry 15 scheduled to own 15% of market sh~re in 2010, and finally in the year 1015,
Chin~ becomes the ,,:or1d leading: shipbuilding nation in terms of tonnages complE:"d, ",hice,
i, 14 millions DWT or 35% of market share equinlenl. CSSe, the largest shipbuilding
group, have committed USS 3.5 billion to develop a neW shipbuilding base in Changxing
hland of Shanghai. "''hen it will fini<h consffi,ction, Changxin" "ould be the large;t
shipbUlldtng base in the "orld (154), In 2015, three large shipbuilding bases of th~ Chinese
shipbuilding indu3lry are to be set up. TIle shipbuilding industrY i, the only one to >upply the
ships wnh the econ(}my, a strong shipbuilding capability will meet the need of the economy
for transportation pUrr(}"". In return, the indllstrialization of the Chinese economy provides
the opportunities for the industry to grow, TIle Chinese shipbuilding industry has Sirength of
cheaper Iabm, and political support fwm the slate. Current kn(}w-how and client basis m~de
lh~ Chine:;~ shipbuilder to b~ ranked as no.2 po,iti(}n 10 the world. Ho\"ever, th~ key t(}
!tupr(}n o\erall le,el of 1he industry is 10 imprm'e the efficiency and producti,'ity. Snip
de;ign and ,,,pply cha;n i, slill the hotrlen~ck> or the ind",tT), Resides, there are fe" er co-
oper~t;oll, among the ,hipbuilder>. which lead a relati,cly ,low difrusion of th~ bULlding
technol(}gies in the industry. Furthem\Ore, the appreciati(}n of b:al C\lrrency is one of the
potenMl threat, (0 the indlls(ry due to weale< earning capabilities of the indum}' sO far:

132
which aho implies the liability of the industry to market fluctuations as well as the

fluctuations on main raW materials price for the shipbuilding

6.8 Shipbuilding ludu,ltv and Ecouomv ofCh.ina. The GDP in China in 1004 was

1.65 trillions, v.hich was ranked a, No.7 in the \Vorld. Among the world top 10 countries in
term, of GOP, China is the only developing country. During the past 15 years, Chinese
economy has kept at very hIgh growth rate. which is average 9.4 'Y, p.a" mating China one
of the most fast-growing nations in th.e past 1 decade,. Recently, most of economists call
China as importantly eme1jging economy, which are providmg p<)wer for the gro\vth of world
eeonom} in the years ahead, Despite hllge volume of Chinese economy, GDP per capita is
just over SI,OOO (figure in 1003) due to huge population, which made Chma to be ranked
after 010,100 position in this term, The shipbuilding industry is defined by the China as one
of economic engines because the economy in Chma is huge, the country need several
engines to power The development ofChmese economy require. more energy and industrial
raw materials, under the context of globalization, international purcha;ing of these elements
for production become daily routine, this is to say. China requires mOre vessel, to bring
energy and raw matenal, back from and away from ft, The shipbuilding industry is the only
one to supply the ,hIps with the e<:onomy; a strong shLphuilding capability will m~~l th.:
n.:ed of the economy for transportation purpose. Again, the shipbuilding industr)' has the
pulling dfects: the. entire supply chain of the shipbmlding industry contains varied
man"f"ctmes Jnd supplies that serve the shipbuilding industry. The mdustrial sectors
mvolved are Metallurgy, Machinery, Electron, Textile and Banking service etc, Al the Same
time, th~ blossom of the shipbUllding indu;(ry WIll provide the opportunities to the
manufacturing and service sectors, the one, at the bacb'ord of the supply cham to develop.
And (h~ development (If these sectors will push and ~nhance the c()mpetitiveness of the
.,hipbuilding im1tlSlry. which is a fomard parl of the supply chain, Howeyer, the f~ature of
the :;hipbUllding induslry has been e\'oh ing from l"bor-intcn,ive to capilal.intensi\'e dne to
its higher initial capital requirement or relati\'ely low operational cost in some shipbuildmg
nations (155) "Imeowr. the Chine3e shipbuilding industry \\'ill <till absorb signifLcant
~mployment, accordmg to the prediction made by ChIna Shipbuilding Economic Rese""h
Center (CSERC'). However, it h", been estimated thot for every job d\rectly in the shipyard.
betwccn thl'ce ond the other job are supported outside yard. FInally. China has been the third
largest shipbuilding nalion for 10 ycars, the majont;.' of demands come from int~malional
m"ht. thi, i, to ,ay. and t~e shtpbuilding industry is a main >ource for exporlln\f. At the

133
CLLrrelltACCollntof Balance of Payment, the exporting of Machinery and Electron has
overtaken Texllle sector as No, 1 source of exporting in China, Ship exporting as a part of
8ub-seetClr<;>fMachinery and Electron has contributed a lot to struclural elevation of
exporting in China. After all, textile products are much lo'''er in value as wen as lower in
value-addeu tClthe economy than ship expQrt.,.ThcrefQre,the shipbuilding industry will play
an important role to help hft the entire level of industrial structure lor Chma (156). The
gmwing of the Chinese shipbuilding indu,try was rapid, in 1')RO, the thmughpul of the
induslry was only 200,000 GT. which was ranked K<;>.17
posiliQn in th~ world. By 1995,
Chinese shipbuilders replaced Germen as third plaCewith 5% market sh.ne m the wmld.

6.9 Major Shipvards and Sbipbuilding Capacitv of China. There are over 1200
shipyards in China for making the ship size from small crafts up to ULCC,. Among them.
aboul 70 shipyards are able t<;>
build ocean-going ships that ar~ in line with the shipbuildmg
industry (157). The nlajority of the industry is stale-run business, with remainder which is
consIStedofpro\inee-owneu shipyards, foreign-invesled shipbuilders and private ,hlpyard
Two Major Shipbuilding giants: CSSC and CSIC By the end of 90's, thri;~ng economy in
China, did not bendit many state"owned eompani~s (158). Chinese Stat~ Shipbuilding
Corpomti<;>n
(CSSC) was on~ who was report~d to be in dimculty due to t,nanciallo,s. Since
1999, The National ReSlructur~ Schemc pro\'idea an opportunity for esse 10 r~organize.
Therefor<::,
the a3Sels'of CSSC were divided into n,-<;>
parts, n~w CSSC in South and CSIC in
North, So far, CSSC and ClSe are ranked as NO.1 anu KO.2 shipbuilding groups in China in
tel'ms of shipbuilding capacity and throughput,. Th~8~ two >,'TOUPS
have abilities to build
almost all kinus of ships, from design, productiml ami rnarkenng. There are 15 shipyards of
top 20 shipyard, in China IInder lhc jurisdictions of these two giants, According to lSL
stalisl1csin 2004, Dahan n~w shipyard ofCS1C and Huuong shipyard group ofCSSC ranked
No 9 and No. 10 position in tlle wmld in tenm of order intake,", of July 2004 (159) Both
csse and CSIC own subsidiaries to produce main engines under licenses of int~rnational
manufactllrers a, well as a wide range of marine products fm n~Wbuilding,. Apart from
csse and eS1C which ar~ main forees in thc Chinese shlpb\lilding ind",lry, oth~r four
,11ipbll;ldinggro"ps are worth mentioning, Tw<;>
OlLtof four group" arCsub,idiaries of 1\\'0
larg~;t shipping componie, in China, These shipyards have the ad,'antages of fOl"\vard
integrat;"", which shall hovc more stable business 10 lean lime. For instance, Naoks of
casco shipy~rd group ISa joint-Yenlurc company betw~en casco Group with Kawasoki
Heavy Industry in Japan. Ther~ arCmany <mallcr .hipyards in China.Unaer the backgwund

134

I
 of developing Chinese economy ami incrcasing demand of shipbuilding markct, thesc yards
are growing rapidly ill scale of facilill€S and capabili!ie~ during the ycars, According to thc
methodology of DECO, Drewry Shipping Consult"nt Ltd estimated that the shjpbuildin~

~ap"city of top 20 shipyard, in China ",a, over 24 million CGT by end of 2002. Total
shipbuilding ~apaeity of the Chine,e shipbuilding indu,tI)' is ai nearly 3,2 nlillion CGT

(160),

6.10 Expan,ion Plan and Government Involve in Chinese Shipboilding. The m~jomy

• of the Chmcse shipboilding indllstry is state-run enterPrises, After restructuring in late

1990s, more and mOrCshipyards arc run in according with market mechanism, this explams
clIrrent success of the industry is attributed to the efforts taken by the shipbuilders,
Nevertheless, the role of government as a regulator is crucial. The ownership structur~ of the
industry defLne, the government still has grcat imp"cts in term, of stlategic de~isions for
entlre industry, although, nowadays, it is mostly imposed by m"cro-cconomic tools such as
taxatIOn policy and intere,ts ratcs. 'I he ambitious plan of the Chinese governmcnt for
de\elopmg the shipbuilding mdustry could be found at ccntral government plan as early as
the year of 2001. In the tenth 5" Year plan (covels 2001-2005), the Chinese go\'€rnmcnt
commitment to this snd projectcd an increase m new bmldlng capabilily to 8.5 to 9.0 milhon
dcadweight p,a, by 2005 (Drewery Shipping Consultant). The schcme for development in
China absolutely sigilals to world shipbuilding industry a maSSiVeexpansion in shipbllilding
capacity in year, ahead Since 20'0I, two mam giants of Chinese shipbuilding industry
stnned their e.~pansion project accordmg to nationul scheme with the supportmg by both
c~ntral and provincial gowffimcnts. Chinese ecntral and local go\ernmcnts have deCided to
lItiliz~ the shipbuilding industry a, one CIf"engines" to empo"cr the national economy. Most
irnponantly, the devcloping project of the Chinese ,hipbuilding industry has been brought
into n"tional scheme, so that, go>ernmcntal supports or ev~n uncommon supports and
go>cmmental involvements lik~ Japan and Sourh Korea did in the past has been in place,
Funh.r s"pport from th~ governments i, fore;;e"~b]e In the 9th and 10th 5-ycars narional
plon; th" national kaders haw clearly quantified the targets for the cxpa",ion of th.
,hipbuildin~ capacity in 10 years. For instance, the target for 9th 5-year plan (2000-2005) is
to m~rease the ,hipbu\]!!ing ~"pac\ty hy 45 ml]ltons (kadwcight Ic>nnagcs. A, major
c~ec"tor< of the natIOnal scheme. two major state-run shiphuildin~ groups, CSSC and CSIC,
how l,ltlllched amhitious projects in thrcc regions in China: Baohai !lay. Shanghai, and
South China, Moreo>~{, the Central go,'ernment has committed te>encoumgmg local o"nerS

135
to build ships domestically by providing financial aids (161). The government pays the
intere'ls to commercial b"nks where ship builders borrow funds for building Ihese crude oil

tankcrs_

6.11 [conom>" Crcat~s l.;nchallengillg Opportunity for Chine~e Shiobuilding. China

is thc 7"' larges! economy 10 the world according !() World Bank in 2004, not like OIher
1O"jor shipbuild10g nation" China is on the way to indu,lrializ"tions so thaI the demand for
,hips 10 carry energy, mainly crude oil Thi, alone generales huge demand for Crude Tankers
in coming years by ChInese th~mselve,_ Currenlly, 1/3 of capacities of world OIltanker fleel
,
are hired by Chinese oil major, to carry crude oils for China_ Never!heless. China has fe"'er
, '
tonnages to carry o"n cargoes at present. Police makers in China have decided to employs a
policy o["nalional flag ships natlOllal made'" (162). Othcr policy also emphasizes a principle
of "National cargoes being carried by national ShIpS, particularly in strategIc commodIty,
~rudc oiL" Ind'istrialization requires a maS5i~e \olume of raw n,alerial hke Coal and !ron
ore, In the year 200} and 2004, the booming shippmg and shipbuilding markels worldwide
"ere largely conlributed to"Cbina effect'", Again, in bulk sectors, China accounted for 48%
of world ore transportation, Ih i., initiated the massive ,new orders of Ihe cap,ize bulk carriers.
In the meantime, the demand Ie" crude oil ;n 2004 reached to Hl billion, tons in China,
whIch made China Ihe \\orld 2'" Iarge,t oil consumCr (163). Furthennore, In general cargoes

seclO'S, IOnS of end product;; made in China were shipped 10 uSA and Ihe European
COlLUlriC,.logether with imports_ Therefore, Chines~ ports handled the mo,t mtmbers of
TEUs in 2004. Ultimately Chinese economy has already had important impacts on both the
intcmaltona1 shipping market and the shipbuildmg market As a rc,>u1t.Chinese lead"rs
chose shipbuilding induSlry as one of "engines'" to expedite the process of industrialization i,
de,irab1e So, both macro and micro economic em-i[(}nmcnts in China pro~ide unchallenging

opporhmity to the Chinese shipbnildmg mdmlry,

6.12 Interest of Foreign Ship,'nrds/Inwstors Enhance Chinese Shipbuilding. 'I he

comp~ratiw ad\ anlage of Chma ha;; a1trncted the attentions of leadmg shipbniiding: nation,_
In order to take advantage of cheaper labor a, \\ell as the growth of Chinese econom~. the
Shlpbtli1ders in leachng sh;pb"ildm~ natiom invesled the shiphuilding fael1l1ies in Chma and
started to bnild the ships or ,hips' hull. Howewr, the Irend \\ill continue in the coming
years. Thi, pro"ides the oppNtemil)" for the indu,try to k~m kno\\-how and ad\anced
management skills, which WIll i~e\'itably benefit the industry in Ihe long nm The entry of
\\orld leading shIpbuilders to China ,turted in 1996, when Sams"ng Hea'')' Industry (SKI)
set up a 10()% o"'1led plant in Zhejiang Province lC> prodnee super large section block for the

parent compony in Korea. 11,e purpose of having a plant in China is to take advantage of
eh~aper labor. Ho'Wc\'er, the comings of warld leading ,hipbu\1ders do bring new
technologies of production and leachng management philosophy, In 1998, casco and

Ka\.a,akl Heavy Industry (KHI) formed a shipbuilding company named NACKS in Jiang'"
provin~~. This shipyard i, able to build the ,hlP up to 300,000 tonnages, casco has less
expenence m the shipbuilding sO Ihat KHI manages the shipyard under the Japanese
philosophy, This is to ,ay, Ihe silipyard follows 100% Japanese style of managemenl and
production so th~t this joint .venture enterprise is very succe;sful m ope ratio,.. In 2004. profit
margin at the shipyard reached to 13%, which was really remarkable in comparison to
average profit1cvel of the Chinese shipbuilding industry, which are only 2 or 3%, During the
preparation period of the shIpyard in 1998, al least, lOa Chinese younger professionals were
sent to Japan for training, Today, many people in the industry visit the shipyard for
technologIcal exchanges. And local Chine,e suppliers serve NACKS according to the
Japanese imlustrial standard, ",hioh implies gradual diffusions of world leading technology
and management principles to the Chine,e shipbuilding industry and Ihe suppliers (1M),
Again, Daewoo Hea,-y Industry (DHl) in July/1005 slgned land-leasing agreement with local
government in Yamal of North Chma to setup a shipyard wilh USS 1 billions inve,mlent. So
the ~ntire shipbuilding industry win enrich by gathering the knO\,-ho\\i of the foreIgn

shtpbuilder as "by_product",

6.13 C3ndid Views from CAl'S!. China A,soclatlOn of the National Shipbuilding
industry (CANSl) "as founded in April 1995 as a non.profLt industrial organintion.
approved by th~ l\'linistry of Civil Affair; as a national body thai assist th~ development of
China's shipbuilding industry. Up to no\~, CANSI ha, ovcr 400 members including
shipbuilding and repairing yards, marine equipmcnt manufacturers, relat~d research centers
and academics. universities and desib'II houses etc. China Classification Sociel}' is a CANSI
member a;; well. To facilitate easy management nationwide, CAl\:SI has set up 15 regional
liaison oftices. CANSI has also 10 bmn"h~s Mdicaled respecti\'ely to yachts, ship repairing,
dLesel engine,. d""k machinery, cabinet machmery, marine automation, anchor chain.
casting & forging. welding, and materi~ls, One of the function of CAN~l is 10, as lIu~tcd hy
the govemment. conduct indu,tri~l research and put fOD\'ard suggestions On the planning.
policy-making and legisbtion of China's shipbuilding, CAN Sl also assist., administrators in
regulating the industry. On the other side. ('ANSI reflects the will of it, members and helr~

137
 •

represent their legal bencfLt,. Other functions of CANSI include the development of rules to
self-regulate the industry, CQ-coordin"ling the relaticmships among members and providing
consulting SerVICeSto its member,_ CANS! is a bridge that connect, the government, the
inciuSlry and enlerpri,es and connects the China's shipbuilding industry with the rest of the

"orld so as to facilitate the industry to achieve sustainable development. CA"KS! has become

deeply aware of the four major bottlenecks 10 China's shipbuilding industry: product

clevel"prnenl capability is not strong enough; produCli\'ity is no! hi gh enollg:h; the installation
raho Qf Chinese-made marine equipment is not good enough, and the overall management
le""l of enterpri,es i8 not IdeaL China's shipbuilding indusj:ry is also challenged by few
factors' increasing appreci"lion of IWB, rising shipbuilding cost caused by price hikes of
stcel, equipment and labor work and the eontinuou; upgrading of international shipbuilding
standard;;, rules and regulatIOns. In 2008, the large! for China's shipbuilding mdustry i, to
deliver 21 million DWT. CANSI declare that the target will bt: surely achieved and e"ecUled
eventually because China has to ensur~ timely delivery which is the social r~spon,;ibility that

Chinese shipbUIlding enterprises must take up and finally they achieve the target (165). VI'
of CANSI viewed that, Chinese shipyards n~~d to ke~p a cool mind and continuou;;ly soh'e
problems aml improve so as to make the shipbuilding industry de\'eJop in a scientifIc and

suslainable \vay (166)

6.14 Prediction orWorld ship completion made bv Chinese orficial China mId a 2.73
milli"",, CGT of ship completIOn by the end of 2004, which "ccount for 13% ()[ world total
accordin., 10 the statisllcs provided by CESA, The fLgure of aCED also confimled that th~
tonnag.es completed by China were 8 mIllion Deadweight Tonnages in 200 .•, which account,
for 13% ofwor1d tot~J as welL The goal of the Chinese shipbuilding mdustry is to become
world No,l shipbuilding. natlon by the )e~r 2015 in term, of tonnage< completed, which are
24 millton< deadw~lghl tonnages or 35% of market share at the glob"l shiphuilding market.
Doth Chin~,e ofticials and the industry share the \'i~\~ that thcr~ are greatest oppormnities
for China!(} achicv~ the goal. Th~ prediction made by Cbinese official.rr~s~nt compkhon of
new buildings w111he 6~ million;; OW r in th~ world, Althoclgh ther" is no detail information
for understanding. h(}w wa, the pr~dl~ti(ln ofChmele offi~ial, made, basi~ assumptions and

va]'iahl~" of prediction can be summarized as 1'0]]0\\ ing:

_ The phasing mil of Crude 0\1 tanker due to It\lem,,tionall'~gulation
_ The replacement, of old 10tm~ge;;
_ The growing d~mnnds due 10 the grow,h in world economy. parttcularly in Chtne,e

us
1t is rather dimeult), to judge if the prediction made by the Chinese regulator is over-
optimistic or not. However, the Chinese shipbUIlding indu,try has been already investing
huge amounts of money to increase the shipbuildmg capacity since 1998, especi~lly for large

d"cks and related facilities,

6.15 Prediction of World sbip completion made bl' South Korea. The fore<:ast done
by the Korean Shipbuilder's Associate had less optimi,tic view than th~ Chinese one, In th~
annual report of the ~ssociation in 2005, the industry ,h",.ed the prediction market share o[

the Korcan ,hipbuilding industry is ahout 400/, of world total in 2015, which is 16,70
millions GT. In this connection, total ship completion in the world could be ,,,,,koned at
aboul 42 minions GT in 1015, Normally, the figure in GT is bigger or equal to the figure in
D\VT, Therefore, lotal tonnages completed as per the forecast by Koshipa are equal to Orless

than 42 mil1i"ns DWT (167).

6.16 Prediction of world ship complelions made b. Time Series Method. It is really

interesting to predict world ship completion m 2015 t" see how world shipbuilding markel
would develop. Gencrally, the prediction could be d.ivid~d into two calcgories, ,hort-term
forccast. which i3 2 or 3 years or long-term for~cast, which is for 5 years or e'en long.er
pcriod. When thc prediction is made for rmny yeatS ahcad, the quahty oflhe predIctIOn get,;
worse, whIch means the figure IS far more unrcl1able It i, hard 10 know the prediction
meth",!:; used by rhe professionals both of the Chine,e officials and the Koshipa Ho\vever.
{hey utilized morc ;;ophi,ticatcd methods [or the prediction;; re,pectivcly. In the case of the
predicliotl for a snorl period. some variables such as the fr~ight rales, finanCIal term, and
political imperatiw, must bc included, \Vhen the predIction is for ~ longer penod, Important
variable, that are relatcd to world trade as well as po"ible incid~nts 3uch as oil erisi3 in 70s
and ,)Os and thc impact of p03sihle ~n~nging technolog.ie3 both in shipping and port scctor,
or ~ontamer;zation. are necessary to take inlO account. But the3e incidenr< are really
unpredictable. as well. One of the popula!' merhods of prediction \s a rime serie, method.
Time scne" is a set of observations of\'m;Jblc mcasured at s\lece;;<;w points in time or owr
succe"iw periods. As per management SClcnce,quantitali \'e approaches to deci,ion making.
wh~n tn~ luslOncal data llre re,mcted to P",t \alu~s of the variables that may try to foreea<\.
the foreca,t pro<:e,lure is called lim~ ,~ne, med",d (168). The predIction of world toral
completions of ,hips in 2015 is made on the ba"s of historic data regarding ship completion
from 19S5 to 2003, The historic datn a,'"ilable sho\\~d a clear upward trend owr years.

D9
which could be easily found in the following gmph. For simplicity, a linear relationship
explain, th~ lrend of world ship completion in the years to corne. Therefore, the regre,sion

function was obtained according to the operation of EXCEL. PredIction of World Ship
Completion by the time serie, method in year 2015 is 54 million DWT: which has shown in
Table 7.12 in next chapter with the prcdicted figurcs made by protes,ional bodies of Korea
and China. It is clearly ,een !hat the figure of the Chinese officials is vel," different from lhat
of the Koshipa, which imphcs a distinct view in terms of the development of world

,hlpbuilding mJIket 102015.

•
Table 6.1' Predictiull for ship completions in 2015

Chillese official Koshipa (Korea) Time series l\-Ietbod

68 Milliun D\VT 42 Million DWT 54 Million D\VT

Trend at \"'ofl<:l Ship COllpl ell on 19138- 2015

Fig 6.3 Trend for world ship completion from 1985 to lOO] nnd Prediction fo. 2015

6.17 Prediction of ship completion In China. In Older to obtam predictable market

share of 111eChinese Shipbuildmg industry, a familiar for~east method was dc,'eloped to
obtain possible throughput of the industry in 2015.]( needs to mention that a linear funellOn
could not explain the trend of historical data about ship completion from 1993 to 2003 in
China, Thc follo\\ing fig.ure indicates that thele was a leap in shIp completion by the
industry in 2003.The glOwing ttend oflhe industry in tenll3 of ship completion is kept tlnnly
in }004 and 2005. It is found that the d~!a in the penod flOm 2003 to 2005 h~d more
inf1lLen~~,10Ihe outcomC of the forecast This implies a ,ignificanl grO\\1h of the industry in
reeent year., due to unprecedented booming of world shipbuilding m~rket these years.
 Trend or Shf P ColTJeI f on I n 01 Nl 1993--2003

'000 ~""
__
,,~_~t:.:
"",,'l''''''::::'_"'':-''''.~ g~ ..•.
,:I.!'-'~o~ ;> !l:::'"~ .•,J :1:'
3SOO ~ .,;);~'.; oi".r v.,',..~",'c ,~""""' ••••••"',.~...,..:.:; )"""=-•.•-~\-= .,:!~'
3SOO
~ 2500
~ 2000
g 1500
>000
=>o
1997

•
FI:: 6.4 T~end of $hlp con'pletloo 10 ChIno 1993-20~3
II may forecast that. !he possible output of the China shipbuilding industry in 2015 is an
uporn:ntiol function. In other WOlds, it may »y thnt, !he market would be u good a~ the
market in the period of2003 _2005. The outcome showed that ~ indu~lry may h:I\"ea tOUlI
of 20.12 millions GT in 2015, The following gmph p~K1Its the trend of the output. In thi~
scen:lrio, ~ mar\;:et $hMe Wt the industt). may have is about 37% of world tOl:ll if the
world ship eompletion in 2015 is 54 mi1lion~GT.

Il"ena Of $nl p co-rrt ell on I n'o; no 1993-2015

"000

-=
~ "000
~ """0
<000

l-1l:6.5 T~•.nd of ship complctlon In Chlnll 1993-2015

6.18 l!edueUon (rnm Chln •.•eShlphulldlng.
a. Chinese shipbuilding industry h:ts strensth of cheaper labor and polititlll
suppon from the ~tatc, !he indust!)' "ill piny mOle important roll." in the world
shipbuilding industry. Clirrent know_how and dient boIsis made the Chirn:sc
shipbuild •.r to be ronl.:ed as ;0.:0,2 position in the world. whith is attributed to lhe
effons mnde b)' !he indust!). irsel f.
b. Chino's shipbuilding industry hM nlllde .uhsunti.l pfOS'ess, p:>nieularly
c
sine<:the S\.1.nof this eenrnry. The indumy has entered a rupid developmenl slage.ln ~
,
2007, China'$ shipbuilding output was 15.93 million DWT, accounting for 23% of :
,
1
>',

. "

•
 the world market (110).Allhe beginning ofth~ l%ntury, over SO% ofChina's order
book WIl5medlwn and $IlUllkized bulk C:llrrier.Now the product mucture: of China's
$hlpbllilding Indll$Uyhas umkrgone grttI chMge$. O1lna is now capable of building
ll\llI"eand more:kind of producu.. ",ith incml5ingty higher value, The product has also
bcaI developed inlo series balches and flUllous~ Bulk CllITiers,oil tankers Mel
containerships Me the three most OUIStlIndingship types IILBt China is good Ill. Chinn
is nll%iving more and _ hiotech ships and offshore: projea,. ~ LNG CIlJrias.
300000 OWl' FSPO Illld 10000 leU conlaillef$hips hllve all been deliveml by
Chinese )w:ls. China's shipbuilding indll$Uy1J.5:o;
come to a new le--e1.HO\\'eVeT.the
truth is IMt an the rofld 10 becomc II slrOI'lg$hipbuI1<lins;nAtion,China hfls aggrasive
riVlllsahead and clw:ers behind, whleh explnim why China needs to alll.lI)'s remain
higllly alert. Jap:ln and South KOf'elIIlI'Cthe powerful oompetit0r5 while India. Brazil
and Vietnam Me npidty c:atchingup (111).
c. Sincc the 21st CCI1tlIry,
China $hlpbuilding industry has mjO)'ed a signiftcant
developmmt. Fostered by the $lite llIllt:l'Opolicy and great demand both in China
.brosd. the indll$\l)' will still keep fllS1growth in the following sever'll1years (1n).
Based on \he IlOticiplllionof commis$ion of scienec technology Illld industry for
natiOMI dcfcnSoC.\he authority department of shipbuilding industry, the ChlllC5C
$hip outpuI will continue to increase at the rtItCof I0% in the following 10 )'eal'$.
d. The ChiJ1C$C
market sh3re c:a.nbe incr=sed by improvemenl in productivity &
cfflCieocy of the indu:s!ry, in supply chain and in ship ddigns. China Is hlgllly
capnblc to compete for the NO.1shipbuilding Mtian in terms of shipbuilding ClIpaclty
in 20lS by domiMte three major $hipbuilding mmClS; blIlk ClIrrier, Tanker, and
conlllincrship. Jt is ocrtllin thnt the natiOllllI schcmc ""0111<1
rtIllke China 1\ more
importanl $hipbuilding nation in the future,

Ftg 6.6: 100000 DWl Floating Dock of Sbllrtgbal Cbcugl Sblpynd Ind 150000 OWl
Dry dock ofWcncbollll ShlpYlrd III ChillI

'"
 INDIA IS COMING AS NEW PLAYER IN WORLD SHIPBUILDING

6,19 Generallntrodnction, Even with an eternal history of shipbuilding, India

was never a major shipbuilding nation, With cheaper labor and efficient "orkin;; condItion,

on offer, India has started emerging as a force to reckon WIth in this s~etor. India, "hich
plans to make all kinds of commercml ship" a,plTCs to be a USS 20 billion industry by
2020 despite a legacy of over thous"nd year, in shIpbuilding: ImIla is far from being a
major player in the billion global indu"tries. TIle shipbuilding industry is interlmked with
,hippmg, which in rum i; intricately connected with the mtem"ti,mal trade of a country,
Trade mighl ha"e dipped in the current global sc,;rumo, but India's exports ha,e grown
•
from USS 44 billion in 2002 to US$ 163 billion in 2008 (Annual growth of 24.5%), and
imports from US$ 51 billion to US$ 251 billion (Annual gTO"'ih of 30,3%) in the said
period. Thi" has augured well wilh Ih" shipping industry, and shipbuilding aclivity has also
increased, India aspires to be a leading player in the shipbuilding industry by 2020 (173).
Market size i, estimated to grow from (he current USS 5 hillion (0 US$ 20 billion by 2t}20,

when India will ba~e 5% of the global market.

6,20 Histon & Oveniew. IndIa had a glorious maritime tradition gomg back to
3,000 B.C when the ships of the Indus Valley Civilization traded wilh the ci"ilizallons of
the Pcrs;,Jll Gulf. T~ough centuries IndIa huill ships in large numbers which en~bled he'
people to develop commercial and cultural contacts ",ith Red Sea. Egypt, South East Asian
countries and beyond. India was one of the large,t shipb\llldtng countri~, in the world,
Indian shipbuildmg was centered along lhe Western Coast in Kalyal1, Bhi;andi and
Mumbai, in South India at Narsapurpeta (n~ar Masulipatnam) and in Bengal al Chinagonl'
"nd Hooghly The "modem era" bq;an with the building of a dry dock at Bombay ahout
1750; a second was erected \1\Calculla "bou( 1780. Traces of shipbuilding activity in Indi~
can be traced to the Harappan da}s, but Itl the modern sem", it took off in the 19905 wIlen
India's share in the glob~l trade started mcreasing graduolly. Initially to mitigate any
possibl~ ri,ks of downll'end in shipbuilding. shipyards were eqmpped with shIp repair
faeihtles. Private pbyers started sheddtng their initlal reluctance once they were SLlreof the
surge in demand and support from the government Accordltlg to the r"P0rt of the Working
GrN\p for Shipbuilding for the I 1" Fi\'e-year ]'I~n (2007-2012), India's shipbUIlding sector
grew bi 72% wnh an average rate of 15% per year during \helO'" plan (2002-2007).

, Contrast this ([) the a,'eral>e growth per year of only 4,5% achieved during: (he 9" plan
(1997-2002) and one c~n understand ho\\ shipbuilding has evol\'ed gradually in !n,lia.
In~rcase in trade, coupled wIth availability of cheaper and effi~ient labour, created an
encouraging en.ironment f[l[ the shipbuildl1lg industry in the country. Indian efforts
receiwd a boost by a directive from International Maritime Organization (llvlO)---a UN

afJiliated body re"pomiblc for improving maritime safety and pre~enting pollution from
ships-to phase Qut all smgle hull tankers by 2010. This has fuelled demand f[l[
replacement ship;, cotr,idering alm03t 32% of the fleet worldwide at present are single hull
Demand IS getting further back-up from an internationally accepted regulatIOn of rep lacing
25-year old ve"eI, with new oneS. At present. almost 65% vessels in use are o\'er 15 years
old. Ri,e in exploration and productiop acti~itie5 has also helped m sustaining demand for •
vessel, of particular type, Now, order books of major shipbuilders in' India arc full till
2012. Therefore, a number of nCW players have shown intent to enter shipbuilding with
various kinds of investments. ABG Shipyard is going ahead WIth its R, 400 crore plan to
build a new shipyard at Dahej, Reliance IS going to spend some USS 2 billion on

shipbmlding.

Table 6.2 India's Shipbuilding Important Facts,

Important Fnets ~nd Figure of Indinn Shiphuilding l

"umb~r of shipyard, In Jndi~ -> 30-40 (27 being actively npcratinnal)
I
A\'em~e Investmenlrequired p~r shipyards >Rs 100 crnre Its 4500 ernrc

"larket si7.eof shipbuilding nt present > l;SS 5 billion

> USS 20 billion

Market size of shIpbuilding expected in 2025 I
Number of shIps being blllit at present -> 250
ShIpbUIlding capacity at present (in terms of eargo carrying: capacity) -> 2.S millinn tnll

Shipbuilding capac ity by 20 I2 (in terms of cargo carrying capacity) > 4 millioll ton
> 19 millinu ton
Shipbuilding capacity by 7017 (in terms of cargo carrying capacity)
I
Percentage of ships buill for cxports -> 75% I
6,21 1\l:1jor shipvnnls, According to the report of the Workmg Group for
Shipb"ildHlg for th~ 11" Fi\e-year Plan, thcre are 27 shipyards around which IndLan
shipbuilding '0 ba,ed. From those, cight are in public seetor (six un!ler the central
governmenl and t\\'o under ,tate gowmmcnls) and the rest nre in the pri'ate sect'" AIlG
Shipynrd and Bharati Shipyard, ar~ the two large>t priwte shipyards, arc ba,ed in "ll1mb~l.
".h,le Chowguhle and Dempo are based in Goa, Major public sector player, include
Vishakhapatnam-based Hmdustan Sbipyard. and Cochin-bascd Cochin Shipyard. Howcver,
Pipavav Shipyard, sitting on order books of Rs 4,360 crore, is working on building lhe
largest shipbuilding facility in India 130 kms east of Flhavnagar in Gujarat. The Shipyards
A,sociation of India (SAl), a lobbying body of the Indian shipbuilders. insists that
inveslments in new shipyards are moving forward. Shipyards ar~ usually built laking into
consideration a lifespan of 100 years, ",hich is oound 10 see many up, and downs in the
global economy This e"plain, why Indian shipbuilders are going ahead with their plans to
bmld their own yards despite p",blems with raising finance. L&T, which already has a
shIpyard al Hazira, has. however, decided to scale back investmenl on its up~oming
shipbuilding facility at Katul'alli near Chennai. It had expres<;edinlentions to spend Rs
3,000 crore for expansi"n programme, Shipbuilding activity tS e"pected to remain strong in
India for another two decades, for 1\has moved here as a spillover from other countries like

Japan. Korea, etc.

Table 6.3 :\lajor Ship\'ards in India

S1","0 ]\I ajor shipbuilding players ,

1 ABG Shipyaf(l
, Bharat Shipy",d
J Coehin Shipy~rd
J Ilindllst~n Shipyaro
J Mazg"on Dock
, Pipava,' Shipyard
, Cho"guic & r:nm?Jny
8 Goa Shipyard
9 Dcmpo Shipbuilding & Engineering
10 Tebma Shipyard,

6.22 Large~t Public Shipyard of {ndi3- Cochin Ship"ard. Japan l\-1itsubishiHeavy

Industn~s build Cochin Ship)'~,.d of InOla's largest g-reenfield shipyard in th~ \970s.
Among the ,tate-t'lln Shipyard" C"chin Shipyard Ltd (CSL) ha~ conslstcnlly made profit
oYer the b~t fi'e yeu". CSL had an oll!>tanding fisc~1 2006.07. with income nearl,
doubling "nd profL!afler t~x ,oaring 300% in comparison wilh 2005.06, Shipbuildmg
income in lhc yea]' of 2006-07 and 2005-06 was R< 6.03 &. Rs 3,02 billion re,pective1y.
whereas ,hip-repai]' incolll~ was Rs 2.42 & 15\ bilhoo re.,p~dl\'ely. Post taXPl'Otitin the

145
year of 2006-07 and 2005-06 was Rs 580 & Rs 192 million respectively. The current
commercial building orderbook, worth Rs 20 billion, consists of 24 vessels, including a
combination of platform supply vessels and anchor-handling tugs, plus the countIy's first
domestically constructed aircraft carrier for the Indian Navy. Commodore Jilendran (Rid),
MD of CSL said "For design, we have a partnership with Rolls-Royce and the U1slein
group, and go wilh fairly standard designs like 755L and 755NL. Our ill-house design leam
is busy exclusively wilh Ihe aircraft carrier." (174)

:;l°f-I; • , •
-~- - ''''-
>-"

Fig 6.7: Bird's eye view of dry dock activities of Cocbln Sbipyard

Orderoook osition ofCSL 11.. on 31 Mar 08

T able 6.4
SINo Owner Vessel T , N~
I Mis Deep Sea Supply ASA, Norway Supply Vessels 3

2 Mis Hellesponl Steamship Corporation,Greece Supply Vessels 4

3 MIs Tidewater Marine Intemationallnc, USA Supply Vessels 4

4 Mis Vroon Offshore BV, Netherlands Supply Vessels 4

, DOF ASA, Norway. Supply Vessels 2

6 Indian Nav Aircraft Carrier 1, India Aircraft Carrier I

7 O<h~ NA 2

6.23 Lila!!:!!!Private Sbipyard of India -ABG Sblpyard Ltd. Just how much Indian
private seclor shipyards have come on in recent years can be judged by one revealing
statistics- the Gujarat-based ABG shipyards; has one ship being delivered every five weeks.

14<\
At the turn of the millennium, Indian yards struggled to make a delivery every six months
~Two years ago, the consolidated private sector orderbook in India was US$ 400 million.
Today, the orderbook, again excluding state owned and defense yards, is US$ 4 billion and
growing." says ABG shipyard's managing director Rishi Ararwal. In a span of 16 years from
the year 1991, the company has achieved the status of the largest private sector shipbuilding
yard in India with satisfied customer base all around the world. The registered office and the
yard are situated at Surat in the state of Gujarat and the corporate office is in Mumbai. Tile
yard ltas multiple building berths, 2 dry-docks, fitted with computerised synchronous shiplift
platfonn, of 4500 {onnes lifting capacity and a graving dry-dock. ABG is now setting-up a
ncw shipyard with state of art manufacturing facilities including two 400 m. long new
building dry-docks allowing to build all kinds of vessels up to 120000 DWT.

~_t.,.,
'-------

-
,.
<

Fig 6.8: Blrd's eye vi_ ofShipbuUding activities at ABC Shipyard

6.24 Government Policy to Snpport Local Shipyards. The role of the government
is very significance for the shipyards. Indian shipbuilders are lobbying with the government
to continue with the subsidy scheme that was in place from 2002 and till August 2007.
Prior to August 2007, Indian shipbuilders were given 30% subsidy on all ship sales to
foreign firms and on ocean-going merchant vessels more than 80 meters to domestic
clients. The abolition of the subsidy scheme, according to Shipyard Association of India,
has adversely affocted new orders, as Indian vessels are now pitched unfavorably against
those from Korea, Japan and China; where subsidies are as high as 40%. KPMG, which
was hired by the Shipyards Association for a study on shipbuilding subsidies as prevalent
in other countries, has advised the government to confer infrastructure status on
shipbuilding activity. This would render the sector applicable for tax holidays extended to

147
 shipbuilding activity. Thi, ""ould render the sector applicable for tax holidays extended to
infrastructure companies KPMG also asked thc go,ernment to extend the subsidy scheme

t;1I2017,

6.25 Analvsis of ne~elopment of Indian Shipbuilding Industrv. Maritime transpon

IS a critical infrastructure for the social and economic development of a country, II

influences the pace. structure and pattern of d~vclQpmenl 'I he Department of ShlppinO'
eocompa"es within its fold shipping and ports sectors which include shipbuilding and
sllip-repair, major pons, national waterway', and inland waler transport. Depanment of
•
Shipping has been entrusted with the responSIbility to ,formulate policies
•
and programmes
on these subjects and their implementation, India has a long coast lme extending o,'er 3000
miles having access to sea on the three sides. Added to this, Indds geopolilical position in
the Indian ocean naturally makes heavier demands on th~ naval fleet in future Defence of
th~ m~rchant fleet, off-shore resources including fishing and 0;1 supply lines and the long
coast, demand Ihat the country e>.pand its naval fleet for benm comm~nd and cont,al of the
seas on a1l1ls three sides. During the 19'hcentury, the industry was in a period of expansion
• and prosperity. The Wadias alone buill more than 3~0 ships - during 1735-1863; 170 war
vessels for the East India Company, 34 man-of-war defence \'essds for the Briti,h Nm;(.
and 87 merchant \'e'<3els for private firms. With the 1038 of independence and "ith the
advent of iron hu;lt .team ShIpS,Indian shipbuilding received a serious setback, which led
.to a long spell of halting phasc. Since the beginning of the 20'h century, it had been on "
declining scale and presently, rated capacity of country's shipbuilding yards", tiny In
respect of world's capacity. Indian shLpyards remained largely 1tlsulated trom the boom in
,hlppmg and <hipbu;ldinO'. Thc requIred <hipping tonnage - both mercl1211tand naval-
can be either acquired from foreign countries or built ;n India. Building up of ships In
foreign yards pre5ent;; many problems. TIle role played '0 far by the Indian shipbuilding
industry ill the expansion of shipping tonnage is really mcx:1cst,By 1990 it, contribution had
no! e>.ceeded 10% of total Indian tonnage. It cannot be otherwise since only thc Hindustan
shipyard, Vlsakhapatnam was producing on regular basis m~dillm sized ocean-going
vessels Thc Mazagon Dock. at Bombay and Garden Reach Wnrh110p' at Calcutta until the
lat~ I %0; were c'onccntmting on ship repainng and on the comtmclion of harbor craft and
other smoll vessels r~quircd by th~ Indian "",y. By 200R India had abont 30 p\lbh~ and
pri,atc :;~ctor ,hlpynrds As of 2006 tbere were 9 public sector oml 19 pn\'ote sector yards.
",ith 20 docks and 40 shpways, There hove been nO new yards in 25 year<, tbough as of
~
2006: t".o ",orld class ,h\pyaTds were ;n development under gnwrnment suppon, along
with 7 new private shipyards and major capacity enhancement by other yards, This
investment i, estimated to be up to US$ 3 billion. Major private shipyard,; include ABG
Shipyard, Adani, and Bharati Shipyard wh,l" large public sector yards include, Cochin
Shipyard, Goa Shipyard, Hindustan Shipyard, und I>b7ga(}nDock The year 2002 served as

a water-shed for Indian shipbUIlding industry. In (hat year, the Government of India
introduced a subsidy scheme for both public and private sectoT shipy~rds. With global
shIpbuilding ",itn~ssl1\g an up'.ard trend, the Indian shIpbuilding indu,try has been able to
take advantage of this Government support to e"abli"h Its pre,ence in gl(}bal ,;hipbuilding
(175). According [() the Indian Gmernment, the order-book oflnqian shipyards grew from
USS 333 million in 2002 to LlS$ 2,058 billion by 2006, Order., for Cargo Ships Small &
Medium grew from Rs 52 Crn to Rs 3350 ers, orders for Container vessels grew from Rs
18 Crs to Rs 3330 Crs, ",hile orders for 'Kaval and CG Ships grew from Rs 22 Crs to Rs
1225 Crs As a __hole, the order-book of Indian shipyards grew from Rs 15 billion in 2002

to Rs 137 billion by September 2006,

6.26 Cnmpnring Indin'. Perfurmance, The current shipbuilding cap"city of India is

only 2,81,000 DWT, which is quite under;ized accor,ding to global shipbuilding standards,
atld inadequate given the country's req\lircmetlls A compnrison of productivity shows Ihal
while China may b~ well ahead of India in total shipblillding, its productivIty is almost the
same as India and thi,:;i, one area th~llndia can take ~ lead on the strenglh CIfits IT indu,try
and selting up new modem shipy~rds. China ha, been gaining almost 2% of the world's
share cvcry year. The growth of Chinese shipbuilding indu"try is nO\\/ becoming a threat lO
alm(}st all majur shtpbuilding nation, ns China is planning t() become th~ leading
,hipbuilding nation wtlh an aim to ochi~\'e 35% gl(}b"l share by 2015 India and bangladesh
is probnbly the only option that will be able to match the Chinese priccs with it< relatively
low ]ab(}m costs ~nd indnstrial bose for mnnufacture of e<j\\\pment. With the exponenllul
gro"th in thc number of ships calling on IndiJn ports. providing ship.repair facilities is
becoming an' increasingly antactive opporl,mity, Not only does ship-repair and building
activity help genenHe sub.,tantial local jobs, it als(} bllllds the capacity of local induslry as

hea\'y muuslry aCl as multipli~r factor,

 Tahle 6.5 Shiphuilding Comparison between India and Other Giant (in 2007)

Country Year Production Employe I'roducthity Orderbook

D\VT Persou million
'0
DWT
million
" DWT
Japan 2004 23,2 80,000 290 83

Korea 2004 23 71,800 no I 100

China

India
2004

2006
88
0.6
158,000
12,000
"
50
1
11.3
"
• Stakeholden in Indian Shipbuilding sector.
•
6.27

a. Government: The government has permitted 100% FDI in shipbuilding

and ship repair activity. The gowmrnent has proposed tQ invest Rs 71,95 billion in
the shipbUIlding indnstry, towards the modernizatiou of infrastructure and

development of a research design base.

Prh'ate Players: Indian corporate and shipyards plan to lOvest over Rs

• b.
170 billion over the next 5-7 year, tnat has th~ potential to take India', share to over
3% to 5% of global shipbuilding, Indian husiness is com-inced that India has a
major comparative advanrage in shipbuilding that has heen masked all these year,
hy an in~fficient pubhc seLlor disrcpulahle for high cost, and time overruns. The
tabollT co,t Fer ,,,ocker. in lndia IS estimated at ,ISS 1,192 per year, against USS
10,7.43 and US$ 21,317 per worker in leadIng shipbuilding countri~s lile South
Korea and SLngapore respectively_ Apalt lrom skilled weld~rs and finers, India has
world-class naval engmeer, and architect,. These, along '-' ilh t"p-closs

managcm~nt, cao make India a global power.

6.28 Kev Is,ues and Challeno-es Detected I1v Indian Shipbuil,ling R&D. The
lmhan Government has been trymg ,-arious prommional and ,ubsidy meaSures since the
7()', which managed m k~~p the industry a1i.-e at a time when the global iodu5u)' wa,
passing through a deep r~ce,sion aft~r the boom oflhe 70's whIch. the eountry missed due
to lack of industrial grO\>th, The shipbuil,lin::; indu,lr; 15tlO\~ \\ ilnessing a gro\\1h pha$~
"fler a ~a" of almost 25 years, Th" i, an opportunity fm India to re,iH ll, shipping
indusH) and bring it at par wllh the reol of the wmld, Il,s essential for IndIa m pm together
,trateglc,. which could lead 10 optimal and effective contribution 10" ard, the global
shipbuilding industry. ~ow the time is just ripc for [ndi" to slLc" a niche in this sector.

150

I
 However in (}rderto achieve this objective, it would be imperative t() address e(}nCernareas
whIChcould be detrimental to the future progress of the sector:

a. Procedure Governing Sub~id~' Support: As Indian shipyards suffering

systemic and ,calc disadvantages, the policy 01 Gol to extend subsidy .,upport \0
Indian shipbuilder~ enabled them to effectively compete in the global market.
H(}'Wever,after expiry of the subsidy scheme, even as its reuewa] is under
construction, there i" a need to eu,urC that thal prescriptive procedures g(}wming
eligibility to recei,e subsidy are removed_The,e Include necessity to win an (}rder
• •
through mternational bidding or certification from the ,hip owner that the bid
• •
process had been followed before sdecting the Indian shipyard, which effectively
emme that the benefits of the subsidy scheme are not realized by the private ship-
owners as most of their shipbuilding orders ore through uegotiations_

b. Deficient Infrastructure: Indion yards laCKthe capability to build large

and modem ships, Presently, the eachin ,hipyard is the only one that has the
capability to budd large and modern ships. While the govcrnment has provided
,ub,idies to shipyards but it has \0 cnsure thai thc benefits reach the private players
~s wclL

c. msadi.antages Accruing from Small Scale of Operations, The

shipbuilding sector in China and South Korea have receIved government fisc,l a'nd
policy support, enablmg them to deHlop scale as well as a cluster of ancillaries_
n,e,e advantage, ofscalc ore not awibbIc to Indian shipbllilding industry. which
import'; mo,t of its input malen~ls and is therdore unable 10 lcverage ad,-antoges
offered by bulk purchases and just in time supplies As a re,u1t there is significant
C03ldisadYanlageson account of import dependence, whicb eat into low labor cosl
advanrnge, of Indian shipbuilders,

d_ Lack of Ship Design and Limitell Tn.-estment in R&D: Indian players

need to work h,nd to meet thc international player, in ship automation ond
technology.

e. Flenehm~rking it to iuternatioaal standard." "Ihe Indian shiphuilders

must focus on benchmarkmg their own processes to intemationai standards to
improve the efficiency, dehvery time, pnce and qualily. which "ill in turn. will

I5I
 ennancc the competitiveness of the shipbuilding sector. M~asures such as
performance incentives, PPP models, QC programme, etc could be mtroduced.

f Supportin;: the growth of ancillary industrie.: Ancillaries necd 10

d~velop along ",ith the shipbuilding inclmtry, as they are the key eompetillve

differentiator for c5tablishin!odrclocating shipbuilding and ship repair facilities. A

cluster developmcnt approach for building ancillary capacity could be adopted.

g. Training and hnman skills ism"" Development of training programs in

various academies to procfuce high guality lalent should be prime focus, •
,
No tarilfprotection from impor!s,

6.29 Gruwth Enablers of Indiun Shipbuildin". Though India is an insignIficant

player in the global shipbuilding bminess, it ha, gamed a strong foothold in th~ nich~
offshore ,qrrn~nt. Th. Indian shipbuilding business ~ntered the gro\\1h trajectory with an
order-book wimeSBing a nine-fold mcr~ase in Just four years, Exploration and production

(E&P) aCt1"ity. particularly in the offshore segment will be increased in coming days. This
ii; expected to dri\e the demand for OSVs, Traditionally Singapore and Nonvay have led
the offshore segment. Indian shipyard, have ean'ed a niche in the con,tnlction of OSVs,
Appro~ima!~ly ,0.0.% "f Bhani', a,;Q A3Cr's order book IS directed towards th~ oil and
gas sector. Globally India h~s on~ of the brgest OS\' order books. Industry leaders. Korea
and Japan ha\'e 'lLmitedOSV capacity, resulting in" shift towards Imha. Though the eost of
labor ill India is lower !h~n Chi'k"l, the fncu> of Chinese sbipyard, rem~in;; large
con,.cT1tionalvessel>, Glohally, 73% of (h~Anchor Handling "Iug Supply \' ~S"e1(:\ l--lTSV)
flee! and 62% of tbe Platfonn Supply Ye:;sc1 (PSV) fleet is more than twenty years old as
majomy of them were acquired dllnng the oil boom wimessed in 1970s. But the current
order bo"k for offshore ,'essc1s (AHTS and PSV) forms only 10% of the current fleet.
th~reby indicatlng significant potential for Indian private shipyards. 40% of th~ IndIan
o\\ned Iket is more than 20 years old and Indian owners will need to spend nbout US$ ~
billion to replace these in the ne;,t S yea". Th~ International Mnntime Orgnnization (11.10)
h~s mandated th~ phnslllg out of all single hull vessel> by 2010, Single hull tanker.>
eOllltLULte15.8% of the lotal vessels build for world tleet lmllan shipyards have witnessed a
slgnllicant growth in ordcr.hook, Now timely e"e~ution and deli\eI)' would be the key for

growth,

152
6.30 Deduction from Indian Shipbuilding.

a, A KPMG ,hipbuilding report shows tlutt revenues at the 21 private yards in

IndIa ha~e ne~rly quadrupled from Rs 10 17 bil1ion (LiSS 157 milli()n) tu 36.57

billion (LiSS 926 mIllion) in the last five }ears. The gro"1h rate of private sector
yards is far bener than that the seven stale-owned fa~ilitie, At pre,eut level, KI'\IG
places the country';; sh~re of the glob~l shipbuilding industry at a rner~ 0.3%. While
South Korea lead the industry "ith market share of 50%. Even (hma, which really

.
launched its shipbuilding drive only in the 1990s. today has a market share of 34%

(in 2009). '

b, A cost effective labour forcc and the availability of ancillaries helped China
c~plUres a SIgnificant share of the world market- same thing that IndIa is only no"
beginning to replicate. With trends indicating that the global shipbuilding boom is
l1kely to continue for another fi"e years, the major players in IndIan industry expe~t
to take the figure up to 3% by eonser;ative estimates, and 5% by optimistic ones, by

1015,

c, Huge investments. to the tune of Rs 185 billion (USS 4,63 billion), have
been dlstmct with shIpbuilding, Half of these investments are bemg to contribute by
just five pri\.ate shipyards. Engineering giant Largen & Toubro and Plpava\'
shipyard head the list ",ilh planned investments of Rs 30 billion each, followed b:
God Earth ),1aritime with Rs 20 billion, and then the Adani, ABG. and !lharati
groups \\ ith Rs 15 billion each. And more ltwe,tments by companies with no
prevlOuo e"perienee in shipbllllding ar~ being announced. India is rather suitable for
large shipbuildiug and inwslment trend toward medium and large ships and
,tructure" Howewr, Indian shIpyards are neither interested nor suitable for small

traditional shipbuildmg.

d. "The tmage of Indian shipbuilding is improving wtlh each pa,smg day, a,

\\" ,how the world that we can produce quality and stick to om schedules" says.
1\10 of ABG Shipyard, "There is even more ~onfidence In us when shIp owner,
r~aliz~ thot. like any top intemation~l shipyard, we gIVe replacement guarantees."'
he messes the fact lhat, to becom~ succe5Sful in shipbuildmg, de,ig:nlng ability is a

crucial pr~-requi,ite, Pri,'ate lndian yard, like ABG shippnl now run ad"anced
software to rrodn~e detailed d~oign;;thal prow cosl-effecli.-e to shLpowners.

153
e. After all. China and Indm have the skills and cheap steel to make the best
a~d cheapest ships. The successful shipbuilding industrial development of Japan,
Korea and China ha-' nol happened by chance b"t by a carcfully crafted policy
where the government has provided the core administrative guidance and support.

Such"n integrated polley initiative woul!! be required for the re.italilation of the
Tndian ship repair industry and encourage lhc Indian shipyards to become
technological leaders imtead of followers, thwugh promoting competition,
cooperation and even acquisition and Joiot Venlures \\ ith leading foreign yards.
,
f. With its large and resti,""ly well educated populace, expansive coastline, and
•
rapidly growing economy, India has long been considered one of the most
promIsing developing nations. Yel ",hile India has benefited from the development
of home grawn mdustrial infrastructure and drawn signillcant foreign m,'est, the
nation has ne.er developed a r~plL~1Iionas a shipbllliding power. At th~ samc time,
Slrict licensing r\lle, helped prevenl the entry of privatc shipyards into lhe market,
limiting internal competition, Moreover, India's lack of o\'erall development meant
that it missed out on the first shipbuilding qoom in the 1970, and o,'cr lhc next
decade Indian yards earned a rcputalion for high prices. complex vetting and biding
process, "nd late deliveries, Wilh the recession of the worldwide shipbuilding
indltmy ill I')SOs, it would take Indian y"rds to rebuild their repumtion and emerge
u, a viable option for foreign Ship o",ners.

g, "Ihe reo] binh of lhe current Indian -'hipbuilding i"dustry can be trace,] batk
t,) the early 1990;;, ""he,, the lndian government \[10k" ,Iep back from its policies of
dir~~l ~on[ro], and loosened 11<industJiallicensing policy. Thes~ changes allowed.
few privale yards (like ABG Shipynrd, Eharati Shipyard) which had previollsly
b~en restncl~d to building ,maller ship-', to e,tpand and d~velop their shipbuilding
capacity. At th~ same lime. the govcnml~nt oflndw begao making efforts improve
the nalion., shipbuildmg mdustly. Among the,e effoIT5wa, the partial pri'"atization

of Cochin Ship~ard,

h, D~spite loo,en~d regulations and the ~ontmued low cosl of lncii"n labour.
-'hiphuilding in India co"tinued to be budd at prices 30---15%hlgher than other Asian
n"tion,.ln ordcr to level the pla)ing field, the Indian governmenl agreed to begin
providing a subsidy for ship, b,,,I,1 tn the country ,n 2002. The new 30% ;;UbSld)'

154
 suddenly made shipyards in India, both public and pnvate, a viable option for ship
o",ners around the world. India's shipbuilding industry was at last ready to join the
major league. At the samc time shipbuilding market b~gan to surge just after the
subsidies took atTect, and world's largest and most well known yards quickly found
their orderhoob swamped. On the other hand, rapidly increaling oil prices have
helped drive th~ demand in the offshor~ and support vcssel markets, where Indian

yard, are perfectly suited to ,erve, The comhinatlOn of competitive pricing,

competent shipyards, and open berths have boast t11eIndian shipbuilding industry to

new heights. •

1. Nevertheless, the Indian shipbuilding induSlrY is still in its nascent stage and
dependent on government support for snb,idy. The industry is expected to become
self sufficIent in 10 years time and will no longer require subsidy thereafter, It i,
clear that lndia can grow in the shipbuilding sector in a healthy manner if
shipbuilding IS recognized as a stmtegic industry and if it can enjoy simple taxation
policies with a fully empowered regulating body for quick decision-making,

J, Shipbuilding capacity in India is growing ~ta f~rocious pace, and ne\\'

in\i~stments in all pans ofth~ countI)' suggest thnt India may soon playa major role
in the world ~hipbuildmg, Again ship repair f",ilincs are incre~3ir,gly crowded and
I"dian yanls are lookin[!, to be~ome a player in the ship repair market. lndia's
location along many of the world', major tr~de loutes makes it somcthing of a
perfect fit fot this rok \Vith Ih. wOTldeconomy expected to b'w\\' in th~ futur•.
India ",ith its low-cost bboUT, excellent location. ami strong go\emment suppon.
seemS reud~' to become an essential part of the world maritime industry.

YIETNAM APPEAR AS \VORLD NEW SHIPBlnLDlNG GIANT

6.3\ Genernl lntro(luetion. Vietn~m's rccent past is a remarkably successful slOry of
economic ,,",0\\ th and transition, From a position 15 years ago as ~ closed economy, almo,t
completely donltnated by the state. Victnam noW has a mixed ecotlomy with a dynamic and
increasmgly compc\ltive pri\'llte sector As an exampl~ of the or,ening "P of the Vietnam~~e
eeonom)-. there are c"TTe"tly an estimated 2000 Slate-owned entcrprises in Vietnam. wher~JS
20 years ngo there were 12000. lhi, traosition has been nehi~,'ed through the cffcettye
liberalization of market, as well as economic rdonn:; ,md new l"ws r~gulJling F()rcign
Dileo In\'e,tment (FD]) and business relJtions wilh foreign investors that me 5tri~tly

155

,
enforceJ by the government. This in tum has led to confidence in the economic system
increasing rapIdly, as Vietnam has become one "fthe best perfom1mg developing economies
in the world. A fast growing eCOll(}my,pohllcal stability, good market potential and a cheap
labour force are ,ome of the reasons for the entry of many foreign companies into the

Viemamese market. Shipbuilding is one of the major inJ"stnes in the Vietnamese

government', economic development strateg.y (176) and ambitious plans have been adopted
to improw the competitiveness of its ;hipbuildi ng and mariti me transportation indu,tries in
the international markel The government supports the shipbuilding seclor m the
achievement of the stated ambition of bt;coming one of thc major shipbuilding nations and
•
has given priority to the development of industrial parks and export proces~;ng zones. These
are intended to attract ente'Frises specializing in marilimc facilities as well as prodllctlon of

high-grade components and malerials,

6.32 Hhtorv of Vietnamese Shipbuilding Industn- Development. ShIpbuilding is a

wry attractive mdustry for developing oations as II can bring in subStanlial amounts of
foreign currency due to transactions in the markel beinl; largely carried Ollt in USS. Japan
used shipbuilding m the 1950, and 1960, to rehuild hs mdustrial structure and South Korea
made shipbuildmg a .,tmteglc industry in t],e 1970,. So Japan and Soulh Korea used
~hipbUllding tf' re'.)uild its mdu:mial ,tmcture. At present, both Vietnam and Chma are in rhe
process of repeating these model, with large, state-supported investment in this industry.
The Soci~list Republic of Vietnam has seen an economic boom III the last fe\v years that is
similar to thaI exp"rienced by China, TIle Viemame,e ,hipbuilding sector is parr of Ihi,
growth and is de\eloping rapidly by attra~ting many foreign invcswrs from the Ell, Japan
and Korea. Ilwesting companies include ,"JAN Bl\1W Diesel, Hyundai Mipo Dockyard,
Aalborg Industrie,. ~nd Mitsubishl Heavy Industries (177). In 2006, a number of key pohey
documents, mcluding the Socio Economic Deyelopment Plan for 2006-10 WCreadopted 10
refol'lllthe nationai cconomy and open it up to foreign investment. With a coast line of more
th,n 3 100 km, low I~bour costs and increa>c(l potential for domestic watennv
transportation, Vietnam has coosiderable potemwllO develop its sh.ipbullding indusny. One
of Vietnam', pnncipal attractions for forelgn shipbuildm.\' companies has be~n its larg:c.
litemteand lelati\'d} low cost labour foree /';0" cstimated at 4+ mlilion, Ihe labour pOul
~Onll[\ILCSto increase by o\'cr 1 ml1110nworker:; annLtally due to the rapid post-war
population gro\\th (I78), \Vhen Vina,hin (VIetnam Shipbuilding IndustlJ' Corporation -
c\mentl} Vinashin Busincss Group) was eslabhshed in 1996. it hml only 13 ,ubsidiaries with
•
156
 • •

poor facilities that could build vessels (179). Now Vina,hin. the national shipbuilding
corporation responsible for co-ordinating shipbuildmg throughout the country, is developing
rapidly, with the gaul ofcomolidaung and lmpro\"ing national reS[lUrces and capabilities in

order to construct vessels for export. Vietnam nOWha, around 60 shipbuilding and repairing
Crl(~rprjses, mostly ov"ned by the Mini,t'), of Transportation (through \'ina,hin), the
Mmistry of National Defence, and the Ministry of Fisheries (180). In Vietnam some
facilities serve as bolh new building and repair shipyards, but generally il is a rdative new
comm to the large ship repair scene_ Vietnam has pOS3e>scd for som~ (line docks able to take
ship, o[ up to aboul 15 OODu"1, but a dramatic uplifl in capacity came in 1999 wilh the
opening of new yard, by the Hyundai Vin"shin Shipy"rd COmp"ny (HVSj - a joint venture
with Korea's Hyundai Mipo Dockyard - which are stratcgically located to cater for vesse13
th"l trade between lhe Far East and Europe. When Vina,hin Slal1ed its mociemizati')il
program in 1996. it had only ten small shipyard3, all centred In the northern part of the
country around Haiphong. These "erC all located on riyers and were limiled to building
vessels of up to 6 500 d",'. In the first phase, Vinashin buill up the capacity and quality of its
existing yards and in the second ph~sc, which bega,n five ye~rs ago, started to build new
yards to increas~ the overall capacity of the group (181 j. Accorumg to Vietnam.5 exi,ting
cxpansion program, the Korthem ch<sl~rwill focus on containership' "nd lankers of around
70 000 DWT; the C.ntral clusl~r on ,hip' belween 250 000 to 3GO 000 DWI and lhe

:'o"lh~m cluster on ships of around 30 000 DWl.

6.33 Yietnmn Consider Shipbuilding as Strute!!;c Indnstr\'. The shipb"ilding industry

affects the Vietnam economy in various positi\e ways. snch as supporting the shipping
industry, increasing emplOyment, assisting the d~"elopment oftec hnology in all shipbmlding
related industnes. stimul~ting demand for dOlllesti~products and increasing forcign currency
inDo". The Vietnamese government has made shipbuilding a key export industty and in the
past fi,'e years tt has boosted investments within the scope of the Shipbuilding lndusrry
Development Prok'Tam 2002.2010. Its shipbuillling ind"stry is growing rapidly and creating
good orportuniti~s for foreign compames that pro' id~ marine eq\llpment and ,.r\'i~e" ( I81 j.
Ihe Vietnamese ,hipbuildmg industty" t,cst cam~ under th. intemational spothght in 200-1-
"hen Vim;;hin l'lllercd into an agreem~nt wtth the UK's Graig Group for the consmLctioil of

15 Or-;\'-classed 53 000 dwt bulk cmi~rs in 2006

6.34 Rol~ of Y;etnam Go~ernment for Shipbuildinu Developmegt, The Go\'emml'Ilt

" of Vi~tnam h~, a~corded a high importatlce to shIpbuilding. and has been suppolting the

157
 sector within the scope of its ,eclor support programme. This prob'Tamme provides

considerable support to the sector including (182):

• Providing Vina,hin ",ith loans on adwntageous terms.

• A.1]o\~ing the corporation to retain total corporate in~ome tax and capItal-use lax for

th~ penod 2002 to 2010 for reinveslment (183).

• ExemptIOn on export taxe, ~nd land rent.

• Government covers up to 50% of working capitnl available to Stale Owned

Enterprises (SOE).
• The SMe Development Fund provides loans wilh 12 months payback nnd 2 ycnr's
graee period for lhc infrastructure costs oT new shipyard projects,

• Restriction of second-hand ship imports.

Furthennore, the Vietnam Shiplmilding Industry Strategic Development Programme 2001-
2015 has mapp~d au! the following general objectives of a development programme which
include three implementation phases (Vinashin lJusiness Group 2006) (184):

Period 200 1-2ll05.

• Upgrade shipyard eapacilies for building dry cargo ships up to H"ndymax size

• T echnicnl pr~parati,)ns for con,truclion of mo~~ complicated vessels saeh a, A frama"

tankers and Ro.Pax in phase 2.

Period ~006_)f'\1f)

• Funher upgrade and modernIze shipyard technology to a lewl equallo mid-class

shipbuilding economi~s.
• DOlll~Slic pmuuCl101\ of ,hipbui Iding material and eqUIpment such "' slool plate"
marine engines (2 and 4 ;;lwkes). halch CO\'~r and cr"nCS up to 70% of a ship .-alue.

Period 2010-2015
• ~lanage mod~rn shipbuildIng !~chnology for offshore structures and for \essels up 10

150,000 dwl (VT.CC<).

• Attain a soltd po.,ition in Ro.Pax malket.

6.35 Fiuancing ~nd Guarantee Scheme. "I' Shiphuilding.

developll1~nt bank of Yietnam (BIDV) tS mainly responsihl~ for the guaTant~e of repayment
of bIns as we]] r~f\lnd g"nrant~e, on ad\ancc capilnl in th~ ohipbllllding sector. Howc\er. H
olso eoop~ml":; with oth~r banks stLch u;; the Vielnam foreign lmde bank (yeB), the
Vie!n"m ind"snial commercial bank (Vielincombank), Ih~ ngTicullure and ruml d~,"c1opmem
bank (Agrihollk) and lhe Saigon joint-stock commerciol bank to cover large amounts. More
•
158
 sp~cifical1y,the Vietnam shipbuilding finance company has been working closely wilh the
Vinashm group and its subsidiarics 10 find financing solutions similar 10 the cooperative
relationships established bel'WeenVina,hin, the Vietnam development assistance fund and
various banb (185). In 2004. the Vietnam maritime commercial joint stock bank and Ihe
Vietnam invcstment and development bank (BIDV) JClintlysigned a credit agreemenl with
Ha Long shipyard for \iND 100 btllion (Usn 6.36 milhon) to build a number of 12 500 dwt
vessels. This and otller agreemenls have brought new (186), sustainable and long-term
viability to '/lelnam's shipbuilding sector, In 2005, 'hdnam issued its first global bond
,ising \'alued at USD 750 milliim, with the entire amount loaned to Vinashin to fund it,
expansion. Since then, to reduce borrowing cost" many Vietnamese companies - including
Vil\ashin _have switched from bank loans to bond issues in order to reduce interest chargcs
from 12-\5% to around 10%. Most recently, Vinashin issued it, third 10-ycar corporate bond
valued at VNO 3 trillion (USD 187.5 million), of whIch around 95% was sold 10 offshore
investors (187). Stale-o\~ned Victnam 1'<alionalShipping Lines (Vinalines) i, planning a
USD 309 mi1hon bond i;;sue"t the end of 200S to buy fom Aframa" tankers from Vina,hin
and is working witb Credit Suisse on deht ratings before deciding on the timing of its first
international bond issue. Moreover. the USD 130 million loan, that it reccntly signed with
Citigrollp wIll be u,ed to buy five cargo ships (188). Vinalines is undertaking a major
~xpansion programme with Vtnashin and si•.'Tlcdcontracts with the yard for the evenlual
production of M vcssel, at a total cost ofUSD 2 5 billion. Now, Vina,hin has an ordcrbook
of around 14.4 million dwt, of" hich ioughly 70% comcs from overseas, and this has forced
Vinashin to inwst hea\ ily 10 its shipbuilding faeilitie, in order to mcet thi, strong demand
for large vcssels. To finance thi, expan,ion. in 2006 Vinashin raised mye,tment capital
totalling VND 15 trimon (USD 937,5 mIllion), an illc,eas~ of between 35-45% OHr tl-.",
pre,iml3 year. Yinashin also I",s a targct of raising the ranki"g of Vielnam's shipbuilding
mdustry to fourth in the world by 2015 and to aehieYethis will reqLtiresan estimal~clcapilal
e~pe"dimre ofUSD 5.14 billion by 2011(189)

6.36 l'rediction of ship completion in YictllOlm. Vietnam is one of the faste't-gro" ing
economie, i" A,ia, recording an average GDP growth of abo\lt 7,5% over Ihe last decade
and g.3% in 2007. With ils ac,,~:;sionto the \'/1"0 in January 2007, Vietnam entered in a new
pha,e of dcvelopment, ch"mcteri7ed by deepe, int~gration inlo th~ global economy with il5
associated opport"mt\~s and challenge,. n\e outlook in the medium term is also positive.
"ith the ccoIlomy predicted to grow by 8.5% in 2008 and pro'pects for the ecollc>myare

• predicated on the a"umptlot\ that \'ietn"m will maintain Ihe momentum of structur~1

159

•..
-
refonns. The strong d~mand for new vessel, over the last few years has also ,timulated the

imere,t of newly industriali"ing economies, like Vietnam, in shipbuilding. "Ihe shipbuilding

industry produces considerable demand for many other associated industry product, and it
also makes usd,,] contributions to related indu,trie, such a, steel as,embly, welding

technology, sy,tem dcsigning and so on. Vietnam, largely through the conglomerate
Vinn,hm, has made ,ignifLcam in,cstments in its shipbuilding infra,hucturc and is actively

seeking parmers to speed its development (190). The benefils offered to a shipbuilding
partner include competitIVe prices, greater control over the vessel's design and a valuable

role in a gIO\ving market for new buildings.

6.37 Vietnam Has 1.0"" Wage Levels and High L!teraev Rate. The political situation
is stable and the Government intends to pu,h the economic de',dopment. Investors are being
given favourable conditions and th~ country has an advanmgeous geographical location in
Southeast Asia. Vietnamese governmcnt supports the rapid development of its shipbuilding
industI} as this will lead to growth in other induSlrie, and will shortcn Vietnam's
industnahzatlOn process. At pre,ent Vietnamese ships contain just over one-third local
content, which includes labour, \\ ddmg materials and furnishmgs, so they ar~ ,"cry reliant on
import, of components such as major equipment and machines. This increascs the price of
vcs,;el c~",:,uction and slo\\s down producnon The local shipbuilding indu.<try sh~,'l1
henefit considerably from the ,upport being provided by other related domestic industries.
and Vinashin 1\ striving to achie\e target., set by the Gowmmcnt to increa,e domestic input
to 60-70% by 2020 (191) .. t he Vietname'c Gowmment i<sued its fir,t <ovcreign bond, to
lh~ mtcrnational market in 2005. passing the enllfe USD 750 million that was raised to
Vinashin . for m"estment in raising the capacity of it3 yard, and the quality of iI,
manufacturing operation3. "\0 US" the,e funds Vinn,hin has adopted a long-ternl
development strategy that focmes inve~tmcnts on key dcvelopment>. A, a result, the group
has effcctively upgradcd and expanded many e~istjng shipyard. and constructed new
shipyards in 'l'pport of the dewlopmcnt of industrial zones throughout the country (192).

6.38 Centre of Vietn3rn Ship Re,earch -'< De,ign. Vinashin's Shipbutlding Science
and Technolog) lnslltlLte (SSTI) have been upgraded to a Centre of Ship Research & De,ign.
\\ ith 11\nCWship model basin that is recl)gnized a, a leading nattonal mnritim~ !aborato,,".
While Vietnam hns a Slgnificant competitive ad,'antage from it;; supply ofrelattvely skilled,
low cost labmLr. it need, to build on that advant~ge thro\lgh increasing producti"i!) and un
 effeCllVCdownstream components industry, as well as by establishing a reputation in the
industry for technologIcally capablc, high quality ves"els prodllced on contracted time and
cost (193), These development, remain a c11allenge for the Vietnamese gOYCmmentand its
shipbuilding industry, and will be helped in these tusks by continuing to proVIde a busines,

friendly inveshnent that wi 11continue to al\r'let FDI, technology and the transfer of business

and "ther skills.

Table 6.6: Shipbuilding Output of Vietnam in million eGT and Comparhoo with
world prodnction (194)

Yeur 1,002 2003 2004 2005 2006 2007 , I

CGT in Million ON 0,04 0.Q4 0.07 0.08 0.76
I
on I
World Share (%) 0,10 0.18 0.16
'" 2.19

6.39 Future Plun and Expected new Suhsidiarv, Vinashin Offshore Industries

(Ymaoffshore) in Ha Noi focuses on rnanllfaeruring floating storage ami off-loading (FSO)

,mits, single print moorings, oil drilling ~e,,,els and other h~avy equipment. A1'0 the group is
set to move into thc \'ery large crude carrier business WIth letters of intent signed with
domestic and international ship owners for IIp to eight tankers worth more than USD 800
million. Vina,hin plans to tum the N~m Trieu shipyard 1010an industrial complex. has been
planned in two phase,. ']'he first phase. lastmg from 2000 to 2006, was focused particularly
on building: shpways'cnpable of constructing vesscls up to 100 000 dwt. The sccond ph~se,
lm!il the year 2012, Includes !he construction of a new shipyard that will h~ capable of
building vessel> of up to 350 000 dwt in the Tiell Lang district of the Haiphong (195), In
future, the share "fsophisticated "~."els in the Vtetnam~sc orderbo"k is expected to inercas~
a, a resul! ofrccctll development>, "ueh ~>tlle in\'estment' madc by Aker Yard, and the c,,-
operation with Hoegh Auto1iners Also, Damcn Vinashin Shipyard is expected tLl focus on
special type vc%~l, such as nlgS, of[;hore vessels and high-sp~cd cratl, creating new export

opportunirie.,.

6.40 F"utnre I'hln of Yictnam Shiphuilder. The UK magazine Fairplay has h(}nored
Vietn~m as thc fitih large:,;t shipbuilders in the world in 200i. said Nguyen ~goc Anh.
Bus\l\cSS G~nernl Dmclm of the Vietn~m Shlplmilding Industry Group (Vinashin),
According to l\1r. Anh. Vinashin is stri\ing ro hecome an even biggcr shipbuild~r in th~
nCar future. At present, the corporation has ,igned a number of d~al, worth 12 binion usn.
Yina.,hin ha, 52 subsidiaries mcluding 20 shipy~rds and 32 c(}rnpames \\lith ahoUl 15.000

•
161
empi,,~ees in its skilled labor force. It cooperated with 4 other join-venture companies to
devei"p the biggest shipyard in Southeast Asia HY1)!'<OAI-V1NASHIN 1V Shipyard with
total investment capital of nearly USS 160 million and a dry-dock serving all ,esse!> up t"
400,000 DWT capacity (196). Vina,hin has ,et up largc shipyard., in three regions of (he
country II has invested heal-ill' in the sub,idlary industry and nOW owns 18 industrial parks

and diesel hydraulic engine and steel plant" Vinashin has abo mvested in devcloping the
mdustry's labour force and says this is an important element in its strategy to develop the
sector. The group annually sends (cchnician, (0 Poland, Japan and Denmark fDr training
(197). They are try to becoming the fourth largest in the world by 2015, Vina,hin nOW has
almost 200 shipyards nati"nwide and the capacity (0 build "il tankers greater (han 300,000
tones. It ha, received orclers io build ship, worth about 6 billion USD, inclnding 4 billion
USD from countries with advanced shipbuilding technol"g}' such as the UK, Japan, the
Netherlands and Gennany. However, Vinashm General Oirec(()r Nguyen Quoc Anh says
that while the company has now made its initial 2015 target to he the fifth biggest

shIpbuilder in the world, there arc still ",me Issues that need to be addressed, Currently,
only abont 30 % of the materials and senices required lD build ships comes from Viet Nam
(198). The induslry has lD import most of the materials and engines and u,e imcrnational
consultants and supen"isors on building projects Vietnam targeted 60 % locally-made

ma(erial:; supplying (he industry by 2010, and 75 % by 2015,

6.41 Concluding Remark for \'ietnnm Shipbuilding. While Vietmm has a significant
competitiw advantage from ItS supply ofrdat;vely ,killed. low costlabom, It nCed$lD build
on that advanwgc through increasing productivlty and an eff~ctiw dO\\'Tlstream components
industry, as "ell JS by establishing a rcplllation in the mdustry for te~hnolOl!ically capable,.
high quality vessels produced on contracted time and cos!. Thc8e developments rcmain a
challeoge fOl the Vletnalllese go'emment and its shipbuilding industry. Vietnam can
continue achieving lllore global shal'e in coming days and remain within five In world

r"nkmgc OSa shipbuilding nation.

'62
fig 6.9 HYll1ld1l1Villnbin Sblpyud III Vlnllim

"
"
'"

fig 6.10 R&D Adlvltlr!! Illd ib' OulPllt III Globsl SblpblllldlllJ: (Mlrine Propeller;
Rudder; Hlgb Spud Hydrofoil; Towing Tlllk Illd propeller Wake)

163
 -

Fig 6.11 Product of Glob.1 Lndlol Sbipyard, (l.-rgm SlIPP'"' Tlokrr; Pa!Xngu
Ship; Coniliou Curler; Bnlk Carrier; !kml-Suhmenlble Hca')' V~; SemI-
Sllbmrl'lliblr Drilling; Nodrllr S'lIbmlrlllt; NadnT Airr •.•.n ClIrrirr)

164
 •

.'..'.'

••••• .
'
•••• ••••••••••••••
• ••••
'.• ••••••
•••••••••• • •••••
•••••• • ••••
•••••••••••••

COST EVALUATION AND FUTURE

PREDICTION OF BANGLADESHI
SHIPBUILDING

165
 7.1 EVALUATION OF LABOUR PRODUCTIVITY FOR
BANGLADESHI SHIPYARDS
7.1.1 Labor Man-Hour. The labor man-hours ncccssary f(}rproducing a ship comprises
all labours' activities man-huurs employed in huilding that ship Thes~ activities include the
different phases startillg from the contract signing time until delivery, The labours employed

in ,hlpbuilding proccss can be di,-ided into, DIrect and indirect shipbuilding labours. direct
and indirect shipbuildmg subcontractors (I 99)_ 'rhe delimlion of direct and indirect laho!s
and subcontractors Hri~s __ith countries and with shipyards within country, so some
adjustmel1ls to the supplied f.gures may be necessary. \Vha(cver the suhdivi,ion, used, the
• •
tOlal number of employecs involved in shiphuilding is giv;'U by (hc sum of the direct 'Workers
and indirect workers including the re]eyant subcontractors. Empirical equations that can be
used to estimate the ship production mall-hours in the preliminary design stage depend
generally Oll P,.o types of data; the ba,ic information avaIlable about the ship and the
condition of the ,hipbuilding yard (200)_ Traditional information about the ,hip during the
preliminary de,ign st.gc IS the ship size that can be r~prc,cntcd by the hull steel and outrtt
weight,_ On the othcr hand, the data ahout ,hipyard condItion represents it, ability for

building such ships that can be determined from 'past shipyard production data (201),
Generally, the ,hlP production man-hour "as d~riwd mainly from shipbllil<!ing cost
eSllrnahon .nd usu~lly "'a, di,-ided into hull steel, outr,t and propulsion ma~hlUery
in,;tallation man-hou-rs Caneyette (202) and Benford (203) propo;;ed diff~ren( empIrical
equations based on the abo\e principle. Carreyette proposed an equation for cst;ma(tng sted

"ork man-hours, for merchant ships. as folIo"'''

Equation 1 (202)
•
Where.

l\-lHs i, the man-hours for sted work,

C is the coeffLcients depend on the shipyard condition ~227,

\V s is the net steel __cight in lones.

L i., the length bd\wen p~rp~ndl~ul~(s (LBP), mete", and

Co i, (he block <,:odficient of shlp_

•

Carreyettc did nOl gi\'e any equation f", either thc outlit or the propulsion machin~ry I"bor
man-hour,_ It c~n be seen that Carrcyclt~'" eqLLanonmay de,cribe the effect of ship size On
•
 the hull steel work man-hours withoul any consideratIOn for the ship complexity_ As a mailer
of fact, the ship production man-hour rJte depends not only on ship si;:e, represented by steel
weight, hm also on ship type which reflects the complexIty of constructIOn which is nol

clearly defined by the previous r",earchers (204), The steel weighl doe' not renect the dket
of complex work content because there is a wide range of vessels varying in bolh SIze and
complexity of construction produced by shipyards Consequently, an equalion must be
derived for each ,hlP type for a shipyard These relationshIps, between the man.hours per

steel or outfit weight and hull sleel weight, are established b"cd On pa,l production dala for
the specific sh;pbuildlllg yard Subsequently, the shipbuilding yard will face a Prohlem in
, predicting the nec~ssary man-hour to make bIddIng for any new ship type without past

experience. In addition, since the eoefticient of the shipyard condition is lllcluded in the
prcvious empirical equation bascd on past applied methods and perfurmance of the ship-

yard, therefore the affect of any improvement that may occur in the production process on
thc man-hour, rate win not appear. Thus, the pre,-ious approach does not account for the
man-hours change; resulting from newly adopted and developed shiphui]dmg technologies_
Chou and Chang proposed other empirical equations to estimate the ship produet;on man-

hours for five differcnt sl,ip typ~, for China shipbui)ding cooperation (205). TIley selected
the it\d~pendent variables that aff~ot the man-hours for shipbutlding and collecting relevant
data for them, After.Yards. they con,hucl multiple regression mode] and the parameter> ar~

estimal~d, The limitatiun in their approllch is tl,e ,"me as stated pre\ iously

7.1.2 Man_Hour per Compens~ted Gro.<STonnage. Comp~nSJted Gros;;

Tonnage (CGT). I;; considered as a worldwi,k yardstick for ship-yard output in commercial
shipbuilding replacmg the traditional meas~res, man-hours/tonne ,teel weight and 11,i,
~onecpl have been <lcveloped from 1960s (206-211), E"perts from the Association of West
European Shipbuild~rs (AWES) and the Shipb"ilding Associ"tion of Japan (SAJ) formu1at~d
a jOint proposal fur the CGl sy,lem, The proposed factors of compensated gross tonnag~
were published and adupted by the Orglllllzation of Economic Co-operalion and
De\elopment (DECO) in 1934 as a parameter 011which to base national S11ipbuildingOutpul
compllrisonS. Th~ compensation faclors for the compel\s~ted gross tonnage (CCGT) havc
• be~t\ de\ eloped for a11type, or commerc iJ] shIps. 'a, given in Tabk 7_1,through n"g.oliatioo
bet"~~n major shipbmld;,,~ countries uvcr many }ears. This eod"ficient reflect, th~ amount
of work necessary to produce that particular typ" and 5izo uf shtp_ TI,. Cumpen'3led Gross
Tonnage. CGT. can be determincd for any ship by mllltiplying its gross tonnage. GT, by

• ]67
 the ptoper compensation factl/r, CCGT, corresponding to its deadweight or gro,s tonnage

as follows:

CCT = CT x CCGT. Equallon 2 (206)

The Compensated Gross Tonnage COT has been used "" produeti,'iry metric in the form of
;Vlan-Honrs per compensated gross tonnage, MH/CGT. This meaSUre me~ns that for different
shIp types and si~e, constructed in the same shipyard. the man haur, per COT would be the
same. The effectiveness of (he CGT approach can be dra"n from Thb1e 7.2 that presents 3
comparison between man_hours/ton of stccr and man-hours/COT. It i, clear from Table 7.2
that there is a significam improvement by using the CG r approaeh aI-though there i, a slight
difference between diffcrent ship types compared with the steel weig11t measure. Thus, the
shipbuilding plOduclivily mea,ure, based on the cr>mpensated eross tonnage parameter, Can
be used to e31imnte the shipbuilding man-houts for any ship type and size e\en if there is no

past production data for all ship types,

Table 7,1: Compensation Gross Tonnage Factor (CCGT)

[}WT 4000 l~noo 20000 10000 30000 50000 80000 11,0000 250000
Type of
< < < < < < < < < <
Ships nwr , DWT D\\T
DWT
4000
. DWT
< <
llWT DWT
< <
D"T
• •
D"T
< <
100~U 20000 30000 3~OOO 50000 80000 160000 250000

CrU(l~ oll 1.; 1.15 . . 0,7.5 0.6 0.5 OA 0.3 0.25

tanker
sin"]c hum
Crude oil IX' 1.1 . . 0,85 0.7 0,55 0.45 0.35 0.3
• tanker
(dol/ble hull
Product &; 2.3 1.6 . . 1.05 O,S 0.6 0.55 . .
chemical
cnrrier
. 0,5 09 0.3 .
" " 0.6
1.6 .
Bulk carrier
Combine 1.6 1.1 . . 0.9 075 0.6 0.5 OA .

cani~r
, , 0.85 0,75 00 0.5 OA .
Gelleral
":Ir '(} shi)
~5 L35

06
I . 0.75 065 . . .
•
Container
.,hi
1.85
" 0.9

I. . .
Ro-Ro shi
Car carrier
I
,,
I ,5 1.05
10.75
OS I"
0.65 I 0.55 I.
0,65
0.45 . I. .

.
.
.
LPG carrier '.05 1.6 1.15 0.9 . 06 0.7
0.9 I
168

.,
L:"G carrier 2 05 1.6 U5 I.15 ~ II 0.75 ~ ~
Recl'er, 2.05 1.5 U5 1~ ~ 1~ ~ ~ ~
1 1 1 1
CO 11100 3000 10000 )0000 40000 60000
< < < < < < <
1000 CO CoT GT CO C. CT
< < < < <
3000 10000 )nIlOO <10000 60000

Fe"ries 3 2,25 1.65 I 15 0.9 ~ 1~ 1

I'• 125
Passenger
ship
(, 4
1
3

,
J 1.6

~ ~
I
}'i,hing
>'essel
4 3
I ~
I ~
,
~
I .
Other non
ear<,o >'e'Scl
5 32 I >2
" I

Table 7.2 Comparison between producti\'ily Measure

Ship T}pes I MILTon nfSteel

\Veiaht
:'>IHlCGT

YLeC 1 16 32
Sue7-;vlax I 19 "
Product C"ITler In '0
Chcm,cal Carrier 146 36 1
Bulk Carrie,
,, 19 'C
Container Ship (4400) 119 122
I Container Ship l8S0) 1 '6 "
Reefer 143 J4
!"en, I5 I .19
Gene,al cargo I 56 29 1
Ocean'I\", , 1 105 I31 !

7, 1.~ i\ lan-Hour ,lIml Productiy;r, fur Hangbde~hi ShiP' anls, It was rcally a

ehalknglllg lask to collect rdc"ant data for calcul"tion of actml man-hour for sicel of
Ihng.b<k5h; (,elected) sillpyurd< Hawewr, due Ie' the co-operation of th~ some :;ood soul,
ol'f." 10,,1 shlpyard<, ,~,e"r<;h~r \\'a$ ,om~how able to ad,,~w th~ goal. Tabl. 7,3 and 7A
has show1\,he data for calculation ofman hour for ;;t~el and produ<;tiv,ly metric for ;;elected
H"nglad~,h; shipyard,_ It "as really Un\07.1t\g
thJt th~ CJlculated ",rn ...CGT for ,ted ", P~T
emp"ical furmllb for all case, was ,;,)mehow ,arne (It 2 t 1)_But actual I-.lH'CGT fo, sl~el
,
a_, pel' on ~rolln(l (Iat" or local ,hip, an!> for eXPOL1
quoiii: or cl"ss "~,,el was wmd,ow
'
1-18,7 nu(l for Inland'Coa,tal or lex"1 wss~1 was somoho" .1R To m~in\Jin Weldlllg quail,y

Jnd j()b finishing a; per 1t\[~ll1~ti()nal

,t~n,brd. lh~ "'lHiC(j I tor st~d of ~xport quality or for
cia" ,,,,,d (of Ban~l~de,hi ,hipyard,) wo,; "'Ol~ Moreover manual "eldLng, cutting and

100
job filling increase the MHICGT. However, the average MHiCGT for steel for export quality

or cia" vessel (of Japan shipyards) is 13. As a result, the productivity of shIpbuilding labour
of Bangladesbi shipyard, i, 11.43; which has been shown in Table 7,7 and that i, the lowest
in the world. !Jut mere training: and automation of work will dcllnitely improve the
productivily; ~, it had happened pre\'io",ly for Korea and Japan. On the other hand average
hourly labour charge in Bangladesh i, only USS 1,00; which has been shown in Table 7,5.

ThIs IS the lowest in the \\orld, So, the relati.e labour rate of B"n~ladesbi shipyards is 0.45
whi~h IS again the lowest in the world, has been shown In Table 7.8. ultim~tely Bangladeshi

shipbmlding industry remains at ad'antagcou5 po,ition in the world. •

Table 7.3: Data for Calculation of Man Hour for Steel for Selected Bangladeshi
Shipyards

!
SINo De,eription r-,'ame
Shipyards " ", Man Hour (MH) (or Ste~~
Calculated b) using Actual
or on "ronnd Data
I
C"<
1
5200 DWT Multipurpm,e
(Class) Vessel
Western Marine
Shi Yald. Chitlagon"
831600MH

693000 MH
I
Case 2850 OWT cargo Ananda Shipyard and
2 (Class/ISO) Vessel SlinWJvs Ltd, DhaKa
Case 3500 DWT Cargo Dhaka Dock)'arq Ltd, 216000 MH
3 (Localil\-ISO) Vessel Dhaka.
3000 DWTTan];e, City Dockyard Ltd, 190080 MH
Case
4 Dhaka. !
Table 7..1: Pro(luetiyit) "letric for Selected Bangladeshi Shipyard,

GT CGT Mall Hour Man Hour Calculated Actual MH/T Clll

'1
No Calculated (MIl) for (MR) for MHlCGT MH/CGT of Steel in
by ming Steel Steel fur Sleel for Steel for Ballgbde:;
Empirical Calculated Calculated by as per' Bangladeshi hi
Eqllation 1 by using using AClUsl Forruul~ Shipyards Shipyards
Empirical data
EquJtion 2 (Consider as
Bangladeshi
standard)
Result for Fxport Quality or Class v.,st!

, 5~OO
(A,'era".
5nO
:'InlfCGT for Sleel in BUrl0ladeshi Shi "ard, is 148.7'
138.14' 831600 24.0 145.4 6930
I
18 3 15" .0 693.0
2 1850 4560 831--12 \ 693000

Result for Local or In 1andICoa,tal Ve>sc1

I
'---\.yer~oeMHICGT for Steel in B~D('lad.shi Shi yards is 3Rl
3 3500 5600 131912 ~16000 H55 38.57 187

,
'LJ 3000 1_5_1_°° 11202\8
1190080 123.57 137.27 [181

"I uble 7.5: Daily and Hourly Labour Cbargc In Ban):ladeshi Sh;pyard~ (Includiug
Frin e Benefit and Manufacturer Overhead) 'I USD-69 Takal (On Ground Data)
Skill Daily Daily Hourly Houri)'
Type of
" Labour Labour Labour Labour
'"
Labour
"'
Labo Cbarge
(In VS$)
Charge (in
1IS$) for
Charge {in
1IS$)for
Charger!
n VS$)
"' for Local Cia" Ship' Local.hips for Class
Sh;"s Vessels
Higb 7,20 9.60 O.'JO 1>20
1 foreman
.
, Technician
Skilled
High 6AO 8.00 0.80 1.00

, Specialized
Skilled
High 6.00 8,00 0,75 1.00
,Velder and Skilled

, Gas CUlter
Specialized High 7.20 9.60 0,90 1.20
I\--lachine Skilled
Operator
Skilled 5.80 1.44 0.725 0.93
5 Welder
,
, Gas Cuuer Skilled 5N 6.00 0,63 0.75

, Ma"hi"e Sk;l1ed 5.52 n 0,69 0.90

Opemtor
Skilled 6.40 800 0.80 1.00
8 Fitter

Semi 3,04 3.0--\ 0.38 0.38

9 Helper
Skilled
2.00 2.00 0,25 0,25
10 Cnsual Umktlle
Labour 0

!\B: ..\Yemge 1Iourly I abour Charge m Bangladeshi Shipyards is USS LOO

•
 rn Foreman

$025-
BITechnician
1
$0.381
!
$1-\ '[ o Specialized Welder

$0.90
and Gas Cutter I
o Specialized Machine
Opemtor
!
• Welder
$0.93.1

I] Gas Cutter

I m Machine Operator

}<"il':7.1: Hourly Labour Cbarge (in 1150) for CJnss Ship in Bangladeshi Shipyards

'hrioJ' average hourly lobar 'ote for local and c1<lsssr.ipbuitding

$6,00

$5.00

$400
;
,
.•• $3 00
,
$2.00
---_.,
$1.00

$0,00

",
0

, '1l "
0
<.> ~ "':;,; "
ro
,to! d> roD (!J
, • 8",
0
0
•
, 2
"
0

0
0 "
OD
0
0 0

"• "
rnE(!JO;D
0
0
0 'Li <.>",?
;g,'O: ::i~ro
C 0
0 0

>
0
I U U "
• 0 0
•• " • •
Types of labors

Fig 7.2: Various Average lIo"rly Labour Charges (in l;SD) for Class and Locai
Ship in Bangladeshi Shipyards

172
 Hourly Labour Charge for Different
Shipbuilding Nations

llt $35.00
'5 $30.00
,5 $25,00
~ $20.00
O $15.00
$10.00
$5.00
~ 50.00

/~
ol'
Name of the Countries

}<'ig7.3: A.-erage Hourly Labour Charges (in USn) for Different Shipbuilding
!'iminn, around the '''orld
•
Tabl.7.6: Shipbuilding Producthity of Different Shipbuilding 1'Iation, around the
World
Country Formub for Productivity Productivity
Productivity = Man- ) ~ar&'1Jnit
Omput (CGT)
.
Japan Using Formula 1

European countne, -do- ,

Uni(~d States -do- 4

India '0- 10
Bangladesh t;sing Formula & Comparison 11.43 (Calculated hy .-i.uthor)
"ith Ja"an

I
173
 ", .'!
10

<; - -,
4
2
,-<",
C",
,:...,. __ #1

~H
O~,--

Productivity

• Fig.7.4; Shipbuilding productivil)' of different counlrie~ around the world

Table 7.7: Relative Labour Rate Different Shipbuilding l'Oations around the \V orld
(212)

RELATIVE LABOUR RELATIVE LABOUR RAT!,:

I Cauotrv
Banglade"lI
RATE Count,,'
Canada n
0.45 (Calcu~;)tCd b)
Author
India 1 Japan 12
China 1 to 2 11,,1 I 1J I
I Singapore ; france U
I Hon" Kon~ 3 Denmark 1J
lai"an 3 Kor",a' l'
South Korea I . 6 Swed~n I 14
ILK. 10 Fmland 15
USA 10 Gemlauy I 15 I

'6
"
" -::_~y/",'.~"__""'
10 ,\<>''>':'':',
8. I<:-S~:"'J:::_'-:'';'t'
,
6. ::;"!••.",~-'~',.;,:_,_"

2
o
• •
Rela!;"" labour rate

Fig. 7.5: Relatiw Labour ratc for different countries around the "orld

174
7.2 COST ANALYSIS OF BANGLADESHI EXPORT SHIPBUILDl;-'/G
7.2.1 General Descriptiun from a Sample Export Ship. Bangla<Jcshhas a dazzling
oppmtunily in shipbuilding sector in lhe international arena as descnbed in prcvious
chapter;. B~ngladesh has thc scope to emcrge a, an export based ,hipbuilding nah(}n within
a dec~de becau,~ of advantHgcs like cheap labor, a presence huge skilled and semi"killed
workers. e~cell~nt shiphuildmg hist(}ry and indust'!" related educational and training
mmulte, As ",e kno\\' that on 15 May 2008, Ananda Shipyard handcd O\'er a c(}mbined
cargo carrier ve3Sel of 2850 DWT to a Danish company, which wa, costing US$ 7 million.

.'
And with this grate event Bangladesh has successfullv exporred her fir,t (}Ceangoing .hip to
a high, end market like Demnark competing with giant competitor hke Chinese and
.
Vielnamese ship builder. Eff(}rt was made t() collcct the financial data and analyze the
distribution (}fco3l for the first cxport ship; which has shown in Table 7,8, A comparison
was made with IndIa (with thc help of a\'ailable information and consultation with export)
and thaI has shown in Table 7.9.

Table 7.8: Cost of a Sample Export Quallty Combine Cargo ShIp Manufactured by
Bangladeshi Ship)'ard (2900 DWT, Total Cost US~ 7 Million)

In % Ia LlSS
Item Total Foreigu Local% Total Foreign Local
", Design. Dra\,'ing &
%
]
%
J 0
111SS
210000
LlS$
210000
USS
0
Cla"ifLemion
;S 0 1050000 1050000 I 0
J Steel
" 1400000 I 0
,
J Pro u!sion lant
Other M"chlllerie,.
20
22 '"
20
0
2
1400000
1540000 1400000 140000
Equipment< and
Com;"onents, I
in I 1050000 140000 910000
]

0
Labor & Man o\\~r
Financing cost, "
25
2
0 25 1750000 0 1750000
O\erhead, "lark up
and Miscellane(}us
Total cosl 100% 60% 40% 7000000 4200000 )500000

Table 7.9: Probable Cost of a Same Sample Ship Manufaotured by Indian Shipyard
(Only for Academic Research and Comparison Study)

,
S< Item
Desi~'Il. Dmwing 8: Cla"llication
Total %
3
15
• foreign %
0
0
Local%
3
;S
I

2 Steel
'0 W W
~ Pm ohioo 0'''0
4 Other l\lal"hincri~s. E~lIipment, and 22 8 14
Comn(}n~nts, 1
I
5 LobO!&. I\bn 0\\ er

175
'" 2 '8
 G Financing CDsl, Overhead, Mark up 10 0 10

, and Miscel1aneolLs
Additional rofit or Aclvanta e 10 0 10
Total cost 100% 20'/'0 gO%

o Design, Drawing &

Clsssificalion I
rJ Steel I,
, o ,
, 'I
o Propulsion Plant

o Others Machinanes,
Equipment and
Components I!
• Labour arid Manpower

o "",co'"O Co", O~m"O~

Hg 7.6: Breakdown of Co,t of a Sample Export Quality Comhined Cargo Ship

l\hnufactured in B"nglad~shi Shipyard (2850 O\\'T. Total Cost FS$ 7 Million)

Cost Distribution of Export Ship

'5

•"
,
0
0

15
•
rn
B Local Contribution
o Foreign Contribution
5
0 10
•
0
•
0 5
" 0

C "0
0
0
0;
2
0
0
, ,
•" "e• "• , "• <" 0 rn 0 0

" 1i-g ,
0 0
• ••
0
00 w •
0
• 0
u

• ", •
0 0 0 0
0- 0
" 0
•
" ",
0

• !"
0 0
,
0
0
0
2" 0
~
0 •0
rn j
0
0
0
0 C
0
•0 w w

"
<3
Items

Fig 7.7: Percentage of Local and foreign Contribution of Cost of a Sample Export
Q""lit, Combine Cargo Ship Manufactured by B311glndcshiShipyard
17(,
7.2,1 Comparison frolll Cost Breakdown. On the basis of cost breakdown ofT~ble
7.9 and 7.10, It is clear that additional financial cost of ships in Banglade,h is about 15 to
25% (bank interest 3 to 6% + bank guarantee 8 to 16% + Lie commission 4 to 8% + other
charges 1%) higher than the othcr competing nations hke IndIa, even China, K()rea,Japan.
Vietnam, etc, Again tax Onimported shiphnilding machineries and components enhance;;the
costing further extem, On the other hand. India has only 10% fin"ncing:co,t ~nda 30% cash
subsidy and i; al together about 30-40% ahead of B~nglade,ll. So, only low labor cost in
Bangladesh can not do everything to sun'ive in the "arId shipbuilding industry, Therefore,
all financial factors that have been identIfied in prevIOUSch~pter 5, must be taken into
consideration for staying this sector'ln the long run. and for overall soew-eeonom;c
development of the nation.

FUTURE OF BAl'\GLADESHT SHiPBUILDIl'\G

7.3.1 Contribution of Shipbuilding in Remittancc EarnIng, There are more than 6,5
mIllions Bangladeshi cmployees' wOl'ksin different counlnes around the world. Remittance
earn by those employees is one of the major players of national economy of Bangladesh
(213). However, majot earning of remittance is made by the skilled wmk force employed 10
foreign countries, Presently mOre than 150000 skilled, semI-skilled ~nd unskilled "orker>
are employed in shIpbuilding 1Odl.lst'Y.
More (han 10000 new employees employed m local
shipyards in e\ery year and almost ,arne numher of skllled.'sem;-skilledworkers dr~1Oftom
the entire industry mainly towards foteign countlleS. Thme drains employees ate earning
hand,ome amQunt of remirranee "nd contributing to national ~eonomy. Total remittanc~
earning by entire workforce of Banglade,h has shown below in figure 7.8. Shiphuilding
sectors contributc ditectly 0, indirectly to cam 2-4% of remittance in national economy and
which is aroulld US$ 200 Million in 2009.

• •

177
 --
Yearly Remittance Earning by Bangladeshi
EmployeeslHuman Resources

0
15000
u

a• 10000
E
0
~ 5000
~
• ,
" 0
2005 2006
_ E>l?QRT HR In 2527.06 3815.16 4411.12
HUNDRED
_REMITENCE in 3957.14 5560.37 6626.73 9915.01 ""99
MILLION USS
Years

~1~7.8:

7.3.2 R~"~n,,~or ln~nm~(nrnl ng Tr~nd of Bnngl"d~.hlShlp,"lIrd, Revenue of last

fj'1: YC:l.tSof top niM Shipyards of Bangl ••deshhas shown in Tnble 2.10. lbe )'carly ~venue
of nine yards ;s USS 46 million. which is about 4()% of the lotal yearly rncnue of eorire
shipbuilding activities of Bangladesh. So the ~'enrly revenue of B<tngladesh shipbuilding
industry is USS 115 million "ppro.\imnte1y. 1M ,(,."nue in 2006 "'liS "bout USS 100 Million
in 2007 "'liS about USS 137.5 Million "nd thAt in 2005 ""liS IlboUi USS 187.5 Million. The
""eTllgt growth of the induslr)' io rems of revenue is I()"/•.

Tahle 7. I 0: 1."'1 5 year, Re\"enu~nnconle of LndlnJ: :'lIne Shlpprd. oDd TOlol rennue
of U~nl:lode.hl Shlpblllldln~

51, l'bme olthe Revenue ReYenu~ Revenue Revlnue Revenue Revinul Yearly
", Shl~yaRl In 2004
(Million
• "OS
lltlntlcn
In 2005
(Million
In 2007
(ItIUllon
In 2008
(MiDfon
lut Flvl
Years
Averag•
Revenu~

• USS) USS} USS} USS) USS) JM~~n l"'-~~:oo I

An~nd~ Ship>lI,d
". " 09 10 20
"
'51
'" 10

I
01
Dnd Slip"""Y' •
Limited
02 We.um ~l~rine
Slli pm Limited.
02 OJ
" 10
." " 7
•
I
,
I,
03 Khulna Shipyard
Limited
03 04

05
05

06
06

07
i 07
08
"
30
5

6
04 K~mafuly 04
Shipyard Private
Limited
I
i
05 High"ptcd
Shipbuilding and
04 06 05 07 OS 30 6
i,
Engineering I,,
Company ,
Limited ,
06 Dockyard and ~ ~ ~ 02 02 4 2 ,
Engineering
Works Limned
•07 4
• ;,
07 Dhaka Dockyard 0; 04 06 06 20
and Engineering
Works I
08 Narayangonj 0; 02 03 04 05
" 3
Engineering and
ShipbuilJmg:
,
,
09
Limited
Crutlagong Dry 02 03 03 03 07 15 3
,
Dock Ltd
46 ,,
Yearly Revenue
of Nine
21 33 40 55
" 224

5hl \ards
Year!)" Rc\ cnue 52.5 82.5 100 137.5 187.5 060 112
ofT,,!al
JnJu'lrv ~

7.3.3 Foree""'! of Glohal Shipbuilding in Gross Tonnages. Here .researcher have

tried his le~el b~,;t 10 foreca,t the future of Banglade,hi shipbuilding: in ternl of capabl1lty [(J

,hip manufacture in million gross tonnage per year on the basis of local ,hlpbuildLllg
c"pacily at present and at future preci,c;;uT\, performance analy,is, past trend and some
mathematical assumptioll. Export quality shipbuilding: capacity pcr year of Bangladesh In
2008 is 0, 184 millioll gross tonnage. It i, possible to predict the glohal shipbuildmg demand
and trend of g.lobal shlp in tonn.ge with the help of .n.lyzing p.st shtpbuilding !reml a,
shown in Tuble 7.11 and fig 7 9 With the help of time series analysis as considertng th~
f"nctl<m of time by EXCEl. (2 14), it can be ,ay that, global shipbuilding demand 1'0110""the
formula as shown below or cur\'~ a< ,hown in FIg 7, I0

Y=15-10.9X + 9827.8 •
Whe,e Y= Global Ship Demand tn Gross Tonnage
X= F\lndion of time: Such that 1988 as I, 1989 us 2 and so on (as shown in Tuble

7 12)
Table 7.1t : Mercbant Ship Completion by Principle 1985-2003 (215)

Year, Period (X) XOOO GT Years Period (Xl

,
1988

1989 2
10909

13236
2004

2005
"'8
1990

1991
3

3
115885
16095
2006

2007
"
20

1992 5 18G33 2008

"
1993 6 19714 2009

2010
"
23
1994 7 18845

1995 8 22236 2011 23

1996 9 25527 2012 25

1997

1998
"
H
24828

25334
2013
2014
"
27

1999 12 27649 2015 28

1
2000 U 131679

2001
2002
1
"
15
31342
33557

200.1 36786
I" 1

Trend of world ship corrp et i on 1988-2003

40000
35000
3OCOO
o 25CO)
a2OO)Q
a
0'=
1C=
,=o
1988 1990 '19~121!O'9a 1996 19c.J8 2CCQ 2002

Fill: 7.9: Trend of World Ship Completion 1988_2003

 Trend 01 'MJrld ShIp Conpl et I on 1988 - 20'15

60000 " "-- = 1

50000
0400:0 "'
8 30000
o 2OCOO
'0000 ,
, 0 ro ro
-
~
0
~
~
N
~
-
m
;j; ro
m
~ ~
- -" -
ro
~ ~
0
0
!'l
N
0
~
0
~,
0
~

!'l !'l !'l !'l

0
0
-
l<l
-
N

-
~
l<l l<l

Fig 7.1(1: l'or...:a51 of Glohnl Ship demond 2009-201 S

7.3.4 Fnr...:nst /If Hnnghde<lIl ~hlpbulldlng In Gro~' Tonnnge.. Now world capacity
u pet glob~l ordcr boot and Time Series An.:al~'Sisis 24.5 and 43.03 million gross tonnnj:;e
rt$jlC'Ctively,So presc]uly Bnngladesll has 0.75% or 0.43% of global sb.arc n:spoCl:livcly.On
lhc ot~r lund fumn: of Banglnde5hi shipbuilding,capnCil)' is following the formula as

sho""D~low.
Y_O.037X + 0.147
Where y_ f llIun::of Bangladcshi Shipbuilding Cnpneily in Gmss TollJl.llgc
x- Function of timc; Such tha] 200S n' I, 2009 as 2 nnd so on (as Tablc 7.11)
Hcn: author has done dct.;lil limc $Crieslltulysis and cakulation 10 fo=an lhc futurc of
l:hngladcshi and globlll shipbuilding in Icrm of capacity 10ship manufactun: in million gross
lonnage per ycar on thc ba~s ,?f local and global shipbuilding cap<lCilyIII present nnd p:l.!t
lIend timc i\erics nnd perfnrmance ntulysis, future prcdktion nnd romc mathematical
a"umplinn. E.'fIOn qualily shipbuilding capacil)' mnd of Banglndesh and world in million
gron tonnagcs lus ~en shO\\"Din Fig 5. So it may 511)'that in thc ycar of2015 ~hipbuilding
cap:!city of Bnngladtsh and world will ~ OAJ and 52.5 mil1inn gross ](Innagc$ rcspectively.
So Bnnj:;lndcshis j:;ning](Il1chie"c lhe capacity of 0.84% of global shipbuilding shnre "ilhin

2015.
•

<S,
 Predlctlon of Bangll1dellhl ShIpbuilding CapacIty and
Global Domand

•
2006 2009 2010 20\1 2012 2013 2014 2015

F1g 7.11: Foro'"'''' of Ranglll.dNhl ShipbuildIng ClI.parlt:. and Glohn! Demand

7.3.5 For~lI.<! of Rllnglll.d,,<bl Shipbuilding In R"'-,,nue or '"come. An lI.11mpt !lOla

,
~m mad" by r"$"lI.rc~r to fO~lI.SI the fuoon: of BlI.oglll.duhi shipbuilding in term of~'l.fl~'
n:"cnue (in million USS) earning on the b;ls;s of 1()C1I.! shipbuilding polemill.l, pe:fonnance.
past trend and SC1':~.via;'l" lI.~u:np:ion. Yearly Income 0: R",-"nuc of Enlire Bangladeshi
$hiphuilding is fol1o"ing the formula as mention ~low Or Cu",'" liS shown in Fig 7.1~
(considering only present ineom.: lUnd of Bangladeshi Shipynnb. If country tan ath;e,"" lhe

future ('Stimated sha", from globnl """"""1, income will increase by manifold Ih.n the
p,...,diction).

y- 12.SX + 43.75
Whe,..., y •• Ye~Ily Re,"enue of Bangladeshi Shipbuilding in Million USS
x- No of year (con,id..,- 2004 as I. 200S as 2, 2006 as 3. and onward)
From aoo,"e nn:llysis and on the basis of tile futun: pn:dktion of local shipbuilding it may
condude tlult Bangladesh is going to be .ddn:ssed n shipbuilding nation within 2015 and
placed within tweh-" in llle global order in !he year or 2021.

1S2 ,

• I (

I .'
 Forecast of Bangladeshi Shipbuilding Revenue

''']- ------------ --_. ------- ---

; 700 --- ------ --------
E 600 1---------- -------
~ 500 +- .-------------------- --~--
400 - - .. ------------~ ---------- -----~.- ----

t---~-:~-===-=:=-.------
i::: o cl
2000
•
2005
----_----_---_---_
• 2010 2015 2020
•
2025
•
Years

Fig 7.12: Forecast of Revenue of Bangladeshi Shipbuilding

-.
)

•••• .' ••••••••••••••••••• ". • •••••

"
.... .... ••••• "
."
"
• ••••

"./.1' .. " I . I ". .' i\' •••• ,!.

,
•••••••••••••
•••• • ••••
•••• • ".• •••
" .... " •••••• ,
.... : • . • ••• .,'
• "

STRENGTH WEAKNESS OPPORTUNITY

THREAT (SWOT) ANALYSIS OF
BANGLADESHI SHIPBUILDING

134
 8.1 STRENGTHS. Bangladeshhas all necessary facilities 10 e,tablish herself as an
emerging shipbuilding nation in the international arena due to her long ~nd illustrious history
in Maritime Industry. The presence of shipyards in particular for long lime wilh large pool of
workforce is the main strength of Bangladesh shiplmilding industry. The fo1ln,,;ng are the

area, 0f strength:
a The major strength of Bnngladeshi ,hipbuilding is tl1e Labour, whIch is

comparatively cheaper than any other country in the 'World.

'\ b. The Bangladeshi labour, are very hard ,~orh[s

and devoted to the service.
c, • Bangladesh has got a very good riverine nehvork conn~ctcd to the sea and
still there arc an;ple places to build or expand existing potential shipyards.
d. Supports of backup industrie, arc also cheaper in respect to the shipbulldmg

industrics of other nations,

There are a good number of re-rolling factories. which uses ,erapcd MS
plate a8 raw material and can produce new acces"orie, for shIpbuilding

industry.
£. Long and glorious shipbuilding history of Bangladesh encourages

entrepreneur< to come forward in this field,

g. Presence of convenient geographical advant'ges,
h, Availability of easily lrainahle work. [oree ( a little training is necessary to

ek\'ale the exi,ting workforce to int~rn~(lOl\alstandard),

1. Anilability of white color skill~d m'anpo\\'er in mantime fjeld.
J. B"ngbdeshi workforce is acclaimed to he d15ciplined, diligent, hard
working, obedient and quick karner
Profess,onal;;, Electronic. Electrical. Information

Technology and Communication Engineer> of th~ country are c"pable of

perfonning the "ssignment in relation wilh shipbuilding "ith little tmining.
I. Presence of kchnical in,tiulles with 35,512 int~ke capacil)' of producing
skilled manpower "ith regard to ,hipbuilding indmtry. In spite of this
capacity pre.,ently Khulna Shipyard Limned is prodlL~ing 100 skilled
persons per year and the Ibngbdesh
, technical education board has
,
""corded permi"ion to Westem J\.brin~ Shipyard LI(l, For conducting
trainLng cour,C t1\ ordel to producc international standard \\ elders, painters.

foremen, CIC.

135
 •

m. Presence of various supporting industries, which may contribute as

backward. and Forward Linkage Industries.

A~ail"bility of cost effective lluman Resources ofwl1C)n1a good number of
,killed manpower are nOWworking Qvers~as,
The c1a"ilicallOD soc;e!}' is ~xlending very good support in guiding for

quahty and a1>" certifying the matcna] list>. Germanischer Lloyd (GL)
ami NK have been playing a wry vital role in the grow1h and
'\
development of export shipbuilding in Bangladesh.

, p Careful compal'i,on of prices of China ¥Jd Bangladesh have been made

and the price of Bangladesh have been fO\md to be betler, which is to he'
contracted and continuously improved, otherwise many cancellation or
order in China due to recession can reverse the thing,.
q. Because the buyers ha'~ had the e"perience of building vessels m countries
that arC competitors of Bangladesh, specially Korea, China, IndIa etc and they
ha,e come to Bangladc,h to place orders anJ have been buildct friendly in
some cases. Pre,-iously China was che"pet but because of their standard of
li,-ir.g " becoming higher their wage; haw ~lso been increased. Bangladesh

remains in ad;antageous position.

r. ,hc CJ'1~'g;ns '"-'"building industry "ill strengthen the cxport diver<ificJtion

sttat"gy.
,. Recently Go,'t has taken sOmCSloopto improve lhe shipping and shipbmllhng
,ectOr as a whole hke: dl'edging of n,'er,. tax free adlvitie< for expo"
orienled shipyal'ds, eaSe of rules fol' shipbmlding, declare some development
.,lrategy for lh~ industry and ncgOliating "ilh relaleJ other seclors to improw

the local shiphuilding.

8.2 WI'AKI"ESSES, In spite of enOtn10US possibilities of expanding shipbmldmg

Industry in Banglude,11 ther~ also exist some Weaknesse', "hich havc to be t,ken into

.
~onsidel'aIion. Th~ weaknesscs are listed bdlo\\';
a. D~spite long herit.gc. Bangladesh has failed to keep pace and con<islenc:.
,
"itll the contimlOus technologIcal de\'e!oprn~l1t of global shipbuilding

Industry.
b. There exists distincl g"p betw~en secloral n~~ds and clIrri"t:lllrn of

institullOns relaled to th~ mnritittl~ industry.

186
 Policy pl~nncrs, government officials, stakeholder, bankers, elc. generally are
not aware of this seetor and Its' potentiaL As a result, development of the
,ector is progre,sing at a ,low pace,
d. Olher than gov~rnmem o"ned dry-dock. none of the shipyards have the
dry docking t';tcilitie~
Other than te", most of the shipyards are located In and around Ohaka, far
away from the sea.
f There is no local backup Indllstry to produce req\lired standard of 1\1$
plak r.• cd LOrship eOnSlTuCHOn,
g, The ,hipbllilding Industry of Bangladesh has mostly to depend on the
foreign providers to procure the major item I.e, 1\-15plate and other
muehineries like cngine. generator, pumps. machineries, components, etc,
h. Lack of uCli,ilies to promote Bangladesh as a shipbuilding nation.
Information on prospecllve o\'erseas buyers 15 limited. Government
foreign aLfairdep~rtmem and ambassodors are not playing adequate role m
this m~uer.
The governm<ent policies a"e \'ery eomplicc,ted ""d nvt vcry pleasant in
SILpportLll;the ""por,sior,s of the induslr; .
.I. unrest political corrdili0n ma, interrupt lhe smooth eOmimlJ(ioll of this
bLL;in~;,.
k, Th~ indu>lry l~eks \\i(h 'eehll,,~1 e;..pe:ti,e and mvdem technologics tor
btlilding comparatively llledi';111and Iarg~ ships. whiCh \\';11 ob\iollsly
hinder the s"'taiLlabilil)' of the ind"slry,
The k~y \\'eakn~" oflhe industry i, the dishonesty and fraud cll~raeter Qf
the people. S"me pearle "I' the coun1L"\'u,ually tr\' to cheat and apart
t10m normal pmI'Ll.th~y want to g"in mOre by bluIT",g.
Ln. Poor manag"m~rrt practice observcd in most of the local ~hipyard. ramil)'
member are running local ,hipyards as per their desire and ospiratiO'L
They hold all thc kcy ~nd (01' uppoinlment' and cOllsider employee as their
,e"an1. As 0 result. thef~ are distinct gap bct\\cc'n Ship)ard, OWrrCrand
e"'rlmee.

O. There is no COrpor~(em~n~gernell1 cultlH'~ prnniced in local Shipyard;,

P00r job S~lisfaction oh,erved among lhe middle manag~me[\t ~nd skilled

'87
 \\orkforce. Workforce never enjoys fringe benefit and other labour welfare
activities like medical. pcnsion, travel & daily allowance, accident & other
compensation. etc Most of the labour is employed casually.
Working cnvironment is 110tup to the standard, Local Shipyards m\n~rS do
not bother about ,",orklng environment and "elfar~ of the employ~"s
due to alailability and cheep labour.
p, Substantial number of graduates and other skilled manpo\\er trained in
Maritime lndu,try leave the country for (>veL,"aSemployment.
<[, There is dearth of capital and investment especially when the scale of
investment is to the tune 500 [0 1000 crore or mOre, The rISks considered
b~ing [00 high bo,h for th~ ~~treprcneurs and b~nkers
Shipbuil<ling industry's standard i, ehanging rapidly \\ith the up-gradation of
kchL1olo~ical ad\'ancement. But unfortunately, technological enhancement is
going very skl\\'ly and ther~ is nO initiatives to slT~ng(hen OllrResearch and
DcveloprnentW & D) dircclly related to thi, indu>lry sector ",hioh i,
cXlremel} impDn"n! fur (he survival D'thi, compditive business
s. Bee~llSe the industry I, not understood pmperly by concerned
p,)I;c)l1laker, as ~ result the usual respohses 10 such ime.'tment proposal are
luke\\um and are treated in Ihe S~me I"llnat a, in ea\~ of other expon
sector", Th\lS hanling suppon that the ,hipbuilding seetor enJOYs in the
Currem pvlin is poor.
Hallglad~,h commercial banks arC shy to deal with big in\'estment
inJ i, idunll;' as requireJ for ,hipblLilJing sector.
lL :'>hipbuilding req\lires guamntccs to be issued by banks ~eceplJble to
foreign hu;ers But Bllngladeshi commercial banks have to ohtain COlLn!er
guanmte", from foreign banks. Th i, mlds to the cost 0 f financ<:,
At presen( Bangladc:sh is not \\orki"g in the fLcld of ship design though
skLilee manpowcr are avai bbl •.
w. The te~hnolog" used in B~ngladesh shipbuild;ng is still nLdLtnemary: it
lods efticienc)' and mJnJgement Oflhis ,ector is weak
From th<:(i'ScctS,;Qn\\ith ShipbllilJcrs and Banks it is vioualiled th~t !>ank
intere,l and ,erviee ch~rges are too high in this Sector compared w uthcr
cQmp~tilOrs.Tilis is Ihe major obstacle to develop ~hipbuildll\g Industr~ In
Banglad~sh,
y, Productivity expansion and export promotion are being impeded due to
lack of required Capital (lndllltriai and Working Capital Loan).
z. Existing rate of interest ranging from i2% to i6% for Industriai and
Working Capital Loans is not suitable for the dcvciopmcnt of this sector:
whereas 7% Rare of Interest on eXpOlt credit i, prevailing for other
export ,ect"". So rate of interest on capital loan for shipbuiidlng is 3 to
6% more than tbat of other local expert sectors.
a~ [b"k (,umantee Commil,ion for other sectors In llangladesh is charg~d al
the rate of 110 2%, As the roreign ships' buyers do not accept the Guarantee
provided b~ the B~ngilltlc\hi Commercial Banks; Counter Guarantec has to
be given from the f,lreign banks, As a result, GlIarantee from both local
~nd foreign banks are mandatory for Export of Ships from Bangladesh. whieb
IS about i6% (local 4% -;- foreign 4% = 8%X2 years ~16%), So Bank
Guarantee "brgin for ~-.:portship is 8 to i6% In Bangladesh: whereas 0%
"largin i., charged in oilier competing nallons.
ab CQl11mis;i()nat th~ rate of 0.20% is cbarged b} banks 01 other competing
countries for op"ning import I.iC. wher~as 1% per quarter i.e IX4 ~ 4 X 2
year, = S% is ch~l'ged b)- !h~I:langl"dc,hi Commcrcial Banks for e"porl
ship,
"c. The abfl\e breakup of lhc cost inct1rr~d for pa,mcm of Intereq and
Se,\"ice Charges indle~leS that the additional financi~l cost of 5hip' in
Bnngl~desh ISabollt 15 w 25% (Bank Intcr<:st3 to 6% + B~nk Gu"mmee 8 to
lG% -'- Lie Cclnllllissi"n 4 w 8% + other charges 1%) higher than Ih~ other
[(}mpetlng nation, iike Chino. Korea. Japan. India. Vietnam. Brazil. etc.
ad, Im~ge pmblcm 01 the C"untfY hinder the growth of e~port miented 10""1
shipbuiidlng La"k of collective m~rketing activities for the ,ndu,tf)'
further e.~pedit~ lh~ hIndcr the growth of local shipbui Iding.
ae, Access to tile rivers a~d sea that is Foreshorc Illr shipbuiiJi~g entrepreneLlr
is restricted b} bur~n\lcrocy problem (or redmpi~olTI)as well as unfriendl"
attiwde to OLlrshipbui Iding,

uf, )I.'lost of the local shipyards bek of modern ,bipbuilding tool, and
machineries, At thc S~llle time. there i, ~ Ihortage of e"pert mach in"
operator>

>89
 ago Poor training facilities of lhe technical personnel observed in almost local
Shipyards. MOSIof the local Shipyards owner considers that, every human
r~,Ource dcvelopment programmed as money drain not gains.
ah. Manual welding quality in Bangbde,h is bener than China, India and
other neighboring countries.

8.3 OPPORTUl\ITlF.S Coumrics with large population likc Bangladesh got

gold~~ L'pport\mity to come forward in labour Intensive shipbuildi~g seelor due to their
abundanl manpo"cr,
a. Country hos got all thc pOlenlials to penetrate lhe Ilorid shipbuilding
industr;'.
ThiS ind\lstry can earn huge foreign e~changes by building qllalitMi,~
ships.
There are chonces to ha,'c more employnlent facilities. Beca\'Se, the,e are
availabilit: (If easil\' trainablc work force. A littl~ IT:lining IS necessary IQ
ele\ate the workforcc to International standard. Moreover. white color
,killed manpo"er in marine field is available,
l"he,e is an opport\mity to produce skilled manlx'",er due 10 growing
Ihipbudding os a labe-urimcnsil'e Illd\lstry.
Tl;.~re IS a pl;:l~~ C',port\lnlty to ""faced bad,"p industries in support of
$hIpbuilding.
f, lher~ is a prospect to be a domil1~nl foreign cllrrel1cy-e~rmng secwr
withil\ rte"t fe" ,eo".
g, DU1,'tree Illorket ac,'~SSof Bnnglade,hi ship' in d~l'eloped COlll1tr;e"
,
The far~igrr buy~rs hme e"hallsted Korea and Chino and e"pioilCd them lip
" te) th~ ""treme b:- impo,ll\g tile m"ndJ!ory requircment of using lheir
own equipment in the order~d ,hip, (speciall:. Stella shipbuilding has
b~en e:-.ploiung in this way).
There is " chan~c 10 s\trface backup and for~l\'ord linkage indu,tric, Wilh
rorcign colloboration,
J. The govt. shipbuilders. ship owrrerS and lhc concerned agenci~$ "r~ already
lIndnsr~T\dIllg that. one ,hip o\\'ner/blliIder can make earning eqllivale,,! to10
garm~l11smanufacwring;11 mClstofth~ case"

>90
 k, India is not suitable fur th~ market Qf small size shipbuilding. Shipbuilding
experts' view that Bangladesh "ill needs to have a big share in processing
Qrders for 6000-10000 D\VT and ]5000-20000 DWT multipurpose
~e5'els because that market ",ill be alive in coming yeors. Container
market may b~ not vcry good in coming year, unlil it take, It, farm again.
Small alld m~dium size tanker 111arket wil] also be applicable for
Bangladesil, ,,,hieh will need double bonom and wi I] have to be replaced,
I. E.,isting local ship:-",d, of Bllngla(lesil con manufadure quality ship, "ilh
compelilivG pnce,
m Preselll financial crisis ma:- increase demand for lawest cmt ships. Tilis IS
favaurabk for Banglodesh shipbuilding.

SA TURL\TS. Shipbuilcing indu,rry or Banglade,il failed to keep pace and

consistellC} due to lack of proper gavernmellt and private initiatives Tbis has ultimatel:-
caused non-penetration in imem~t1on~1btlsiness as a shipbuilding nmiQn.
a. Like Bangladesh. mon)' olher ""unlries like Indonesia, India, BraziL
Paki,wn, etc are also trying 10 cap1llre lhe surplul market of this global
shipbuilding industry.
b Draining aut skilled manpower f',om i:langl"Msh shipbuilding indll5tl) tCl
foreign ;"dustry.
Th~ raw m~[eriols for local shipbuilding Industry are 0[' import-ba,ed, 50
O\d"11 eos(lng will b~ dependam on (he imponing CDstof those item"
As per present ,,~al:sis. ,hough the demond of sh;pplng is increaSing at a
nliC M.j to 5%. "rln a certain period this "ill be soturated, ]t leems lhat
, this na.d \\111he cOl1tinu~dfor lip to 2025. So th~oretiea]ly there "ill be a
(hI'earof sliSII'imLblllt)'tor the ne"comerl' af1er 202 5.
As th~ nmure of some Bangladeshi is 10 cheat and fraud Qther ~nd 10
becon1e rich al the shortest span of time. this can be a hug~ Ihreat t~')fthe
O\~rall existence of ail Bangladeshi Shlp:-ucd" As the mission of local
shipbuilding industr" is to penetrale the wmld market. so ther~ are ri,b lCl
11l~ll1min
the reli~h;Ilt\' of quality to the f(),e;gn buy~r5.
f. Time]y deliver} i, nn i111
porlatl1i%ue for shipbujlding induslry. Most of lh~
shipbuilding nations have dcvel()ped clos~ links between Shipbuilding
and eqUlpl11~ntindus!'" far reducing delivery time, But o"'ing 10 non-

191
 " .

availability of indu,tries of marine equipment> approved by classification

soeiety in Bangladesh, the lenglh of delivery time is longer in comparison 10
the competitors and resulling in coSt inflation as well as negative notion
aboul Bangladesh.
g, Scarcity of sufficient land in Banglude,h, deficiency in power supply and
weak infra,truclure facilities are the m"J0r impediments for rapid
developmenl of .,hipbuiIding indllstry.
h, Currenti, the world is pa,sing through eCC\Ilom
ic rec~ssion, Shipping and
,hipbuilJing of the "orld ar~ "ffee[ed tiom this reces,ion rcsulling
cancellmion ofne" building order, m least for the lim~ being.
The restricted (Iraught (Maximum 4.0 to 4,5 l\1eters) is the limitation to the
size of a ship that can be buiIt in local ,hipyards. Bridges and overhead
cables rna) induce new restriction to lhe ship size thut rna~ be buill in a
Shipyard located In the hinterland, A minimum ofn rn~rerSof air draft
ov~r high water (monsoon) mu,t b~ maintained emall th~ major ri'ers.
Exi,ting inadequate infrastructure tacilities of the COUntry discouragC\
d~vdopment of shipbuilding industry. An absent of experts favour
earmarking a special ZOnCfor healthy' grO\<1hof ,hipbuilding indu'lry in
B~ngladesh cr~ate hindercd for tile indust'}.
Dlle to pnar man~getnent culture in the local shipy:>rds. poor job sot!Sfnction
obsef\~d and employee does not feci belong to the organization, As a resull
huge absenteeism and turn over of labou]' and ,l-..illcdmanpower ob,~rvcd in
loeal sbip,ards.
I. Thc gOWnlmenl policies are very complicated and not \'ery pleasant in
",pporting the expansions "flhe industry.
m, Laek of mechanism for proper implementaticm. monitoring and updating
strategy for silip e:-.port.
11, The ri\'ers and ~hannels are frequent[~ silt~d. It is very dLfficult 10 malnMin
channel for desired level ofna>,igability for ships maneuvCr.
Shipbuilding industry needs a lot of components, parts. and accesso"c'
leading 10 emergenc, import during the conslruction period, E.,-isting
fncililie, are not adequale for emergency import requirements, Und~r the
present import polic, and for~ign currenc~ regulation; elF basis import is nO[
permiS'ib Ie. Ultimale res\llt is delay in del i,ery of ship to foreign bu, ers.

192
.. . ......
•••••••••••••
• ••••••
" '•••••
'
...... ••••••••••••••••••••••••
"
.'~

" .,'"
••••••••••••••••••••••
" .
" . ••••
..... •••• ••••••••••••• • •••
"
• •••

FINDINGS AND RECOMMENDATIONS

193
9.1 FINDINGS
a. About JOOOO (len thousands) inland & coastal ships and around 40000 (forty
thousands) of mechanized country boats have been plying allover the country,
wbich carry more than 90% of oil product, 70% of cargo and 35% of passengers
in total.
b. There ore total 69 shipyards in Banglade,h. More than 150000 skilled, semi-
skilled and unskilled workers are employed in this labour inten,ive industry.
c, Two million people are related directly or indirectly with shipbuilding industry in
Bangladesh.
d. About 9 local ship)ards are capable of making ocean going ,hips up [010.000
D\VT.

c, Another dozen of ship~ards are de'eloping facilities and capacit) aiming to enter
into export market.
f. Size of global shipbuilding market is U5S about 1600 billion. where ,mall Ship
building market is usS 400 billion, By 2012, the \\orld will need mOrCthan
10,000 vessels. mastly ,mall to medium sized. Old single l1alltanker flect \\'111be
l'eplacing b:' new lanker" Ithill nnl f~w ye~'rsas per Ir-10 requirement.
h. The gQ\'el'l1menl~lIocation of Annual Development Programme (AD!') for wakr
''''ys and waler lransport is b,.low 4"{. wbereas fQ' road is above 70%.
L. Only few Shipyards ha,e found to be cons"iolls abe-Ht safety, health ~lId
cT\vironmenwl (SHE) aspects, "hlcb are a~ain m average level. Prc:;,ufe fiom the
government and lhc foreign buyers tagethcr \\'itb the awareneSS program and
Il'ainlng on SIll'. a'pecls willleJd the lac,d Shipyards to international ones,
J r-Imt of the loc~1 Shipyard" do not follow eorporat~ management culture,
fJlnily memhers o~eLLpythe impcrtnnt managerial appointment. Sucb fall1LI~
mal1ag~mentcLLlwreis one afthe hindrances for development oftbe industry.
k Additional financial COSlof!3~ngladeshi Shipbuilding is about 15 to 25% (Bank
Interest 3 t() 6% -'-Bank Guamntee 8 to 16% + LlC Commission 4 to 8% + other
charges t%) higher than the other competing nations like China, Kor"a, Japan,
IndLa,Vietoam, etc.
I. Lnek of Electricity & Gas supply and othel' poor jnfra~tructure are major
impediment. whicbbinder:s lh. ,CUingup .,ilipbuilding ind'lslries LnBangladesh,
m. Rdntiye1~ poor state (1iplomac~'and lack of activitie5 to promote Bangladeshi
shipbuilding are hindering the growth of the indusll'Y,

'"
 n. Local shipbuilding is still at a yulnembl. stage, nQt in international slandard It
"iii ,tand fLrm if it gets the ,arne facilities as given tQ the RMG sector. The net
benefit "iii be of much higher yield in comparison to that QfRMG Time is
proper now; delay will be vef) costly as such opportunities do not come very
often.
0, Producthity of Bangladeshi shipbuilcling labollr is 11.43, average hourly
labour charge in Bangladesh IS onl} GSS 1.00 und relatiye labour rate of
Banglodes:ll shipyard il 0.45,
p, Bangladesh has all pot~ntial to get 0,5'1, ofglohnl shure within 2Ut5

9.2 H.ECOM;\l£l'\nATIO~

Shipbllikling is an important and Ilrategic industry of an} ~Olmtries, It offers a wide range of
tcch~ologic, lI~d employs a significant number of \\orkers ami generate foreign currency.
S~,ipb"ildl[:g is. Iherdbre, all altrae'l'e indlmry fur developing mtiDll3, PrcVLOLLSI},
the
irrdu,try has moved OUIof "mope 10the Far "alt and no" it tllkeSa turn towards Somh Asia.
Banglad~sh has a d~zzling oppOmmil} in shirbuilding in glc,bal market by the \\ay of
miliziLlg ,kill~d anJ low wage workforce, The follDwi~g recorl1mendation, mao be
considered \l,eful I,orst~}ing in thLSsector in the long ''In,

a, Ban~la<!esh ban~ 11Ul"introduce refLnancing al a lo\\er rote for indllSlrlJI and

working c~pltalloan lar sctting \lP or flourishing shipbuilding indLls~r",Single digit
mt, of inter~s[ ma,. be ch"r~e,j on industrial and working capilal loan.
b. Bank gllaralllee m~rgin IHa" be set to ztrO by the celllr~! brrk, B~nglade.,h
b~nks mav maintain a r~c(lrd 10 "void issuing CO(lnterbank gLLmant~eb" all foreign
banks. Lie lll"rgin & thc' comrnissk", for the impDn Lie ilia\' be fi"eJ at z~ro fvr
IO()%e,pon oriented shipbuilding in,1Llstry.
c. In c~s" "f onward moving i~ shipbuilding sector for export, producti';ly of
Bangla<lc5hi \\Or~ t~-,rce,hOllld be c011sideredas an import~nt i.<suein order 10 keep
the C051dow n and to ,1~y in this ,ector for a long lime.
d. The limit 0f go\'ernm~nt depmit in pri,ate eommel'ci~l bank:>nceds 10 be
Lncr~~5edf,'om pre,cnl 25% to 50% ,,~d lh~t should be earm~rkcd for inye'tmenl in
,hipbuilJing seemr

195

•
e. A committee may be formed by the government to set a useful und
sustainable course curriculum and need based sy!kbus for the unlverslties, technical
& \'oeational institute, that must bc commensurate with the heavy industry (lLh
shipbuilding), To empower thc DLrectorate of Shirpi~g of Bangladesh for extending
[he service of certiticatiQn a[ nominal charge 10 be paid by the !ow Ie~el trainee, '0
that they e~n enJoy the reorganiLution,
f. };eeelsary arrangement may be made for opening };aval Architecture and
",'Imine Engine~ring Department in [he lIni\'~r5i[leSofKh\llna. Chittagong & Bmi.,,,1
regi"", and in ~lIST of Bur To c()ndLlc[training programm~, each shipbuilding
industr} ,hQu!d dc-clop their training policy, \\hlch shall impart trolning to their
worker,. To u~gr",k the capacity in ordcr to prod\lCe suftici~nt number and le\el of
,killed manpo"er. diplomo and cer(ifLcatecourses on shipbuilding moy be introducc{1
in the Bangladesh InstitLIteof Marine Techn" logy \mder manpowcr em pia}menl and
training bureau. dcck ell~ineering persl,nnd trolning center under Bl\VTA. nation~1
maritime institute under direclomtc of shipping, There may bc sam~ effort [rom
pri,al<: cnd.
g. During economic rece,sion government m~y guide and moti,ate the fLnancial
institutions to red\lc~ pr~lcm IntereSl rate commission and other chargcs, At the
sall1~ time lOcal shipyards should prep"re lhemselves for the futLire so that
B3L1gbde.<hcan r~~ci,'c order., nfter the recov~rJ' frc'll1the current reces;iot;.
h, A 'p,'6~1 zone haying lechnical and geograrhical fHcilities in2ludin~ Jeep
chan,:c 1, 200~metel', height of bridges "" the rivers and uninterrupted eledric i,y and
gas supply ma,. be eSl"blishcd for 100% e"port oriented shLpbuLidingindustries. The
bank "f ",leghl1~ Rlv~r al G07arln. ~lullShigonj m"y be con,ider~<i. llS the First
Special Lone. the E'llie In Side "f K"rnaful i Ri\'cr, Chittagong. rna)' be eonsider~d '"
the Second Special Z"ne and the b~nk 01'Pashur River. Kll\llno, ma" be considered
a, tll~ Tlmd Special Zone. [lhati~l\ and Cows Bazer ma,' al,o be considered such
sp~eial Zl'n~ Lnt\J\UI'~.
J CCllSiJ~ring the sector '" ".,pon orienled. pri\~te sector nla~.be enc"Llrage<!
by prol'idLng t1noncial ",~~on wi,h 10\\ rat~ ofint~Lbt to set t,p qual;!" design firms
inllallgbdesh.
k, Using lh~ e.\p~rience$ & e~penise of the Small & "ledillm EntrepreneLlrs
(SC>.ll:s).it IS \~r; much cas,,' to ll~grad" them so thot th"y can pr0duce qllallt}
prodllcl ane acting a" " supporting Lndu<ll'} or backward linkage for ~.,port

1%

-,
 shipbuilding. Go'ernment may come forward to help these baebvurd linkag~
industrics by providing package support.
I. Incase of shipbuilding. cettain heavy and co;tl}' components such as marine
engine. gcncrator. compressor, etc. may be imported on elF basis in order to enSure
timely construclion and deli,cry of ships. However, <'ship spares in transit" need to
be extended to e~porl oriented shipbuilding industry of Bangladesh.
01. Adequate fund, may be ra iscd (at least one percent of sh ipbuilding production
\~lue) for hoth public and pri\'~te llnlversit;es for the enhanccment of R&D In
shipbuilding. R&D h", more (0 do with rcsearch "orks aimed towards the
impmvemem of the exi,ting products and creation of new ones. Joint effott is
essenlLat to set up Towing tank, l\DT lab, Ship design lab. dC in univerlit:, like
I:lut'r and shipy~rd, as carly as possible. Classification society and local snipv"rd,
may cQ-C'perate and support in this regard. Government may m~ke nece,,~r,
regulations according lCl the 11.0 &. L\tO and Con\'lnee the concem~d
organizatiolliinslitllti"ns 1OenSLlrepropel' comptiance t" tht issues.
n, Banglndcsh nllSsions abroad rna) tak~ necessary steps for boo,ting up c:-..port
or ship" "bjor c.~P0rl oriented sh ipyard, and EPB m~y ensure regular partie ip~(ion
,
in thc imporw:l\ int~rnationat exhibitions/fairs for nwrillme arena.
p. It l1e~d pressure hoth from government and tJ'om foreign buyers together to
take ,,~re of m~'ar"nc;s prl'g:'aLr, ~~d training on SHE a'pecls: which will kJd the
local ,hipyard, tl' achi~\'~ intem~tional standard.
g. 1\ ,he gcwernmelll allow, mOrC ,hipyords along the riv.r Karnaphuli near
Chinag(mg P"11 and Bh"li~r:: manv internat;onJI compani~, might be "illing to set
up j0LIH venture ,hipprd, so th~t larger vessels could b" built and e~ported A
, number of decp drafl pc,tts are needed for shipbuilding in slIilable tocations.
r. At p"csen!. some ,,1' (he silip:'Jrds are atready capable of manufacrLLl'ing
uc.an-gc'ing \essels. If the incentives provided to R"IG ind\lstrLes are exlended to
.,hLphlli Iding. ;i \ViII help atlmet a large amount of foreign inveslmen!. Again ,,~tionat
B0~rd of Re\'enue (NI1R) has to be cl'nducive alld pro~ctiw by way ofallowlt\g ta~

nemptlon to e"pott oriented shipprds

s, E"isling inad~(j\IJte infrastL'llctmc fa~ilitics of Ihe country discclurage
dcvel0plllen' of shiphuitding ind"Slr) In Banglade,h, !:"'pon, ori~nted ,pecial Z0r.e
of .,hipbuitding industry may be connected to n"(ional highwa}' b} good roads and
supply ofUl;I;tie, induding ekclr;city and g~s.

•
t9i
t. Bangladesh may be competitive with the other shipYMds around the world.
Gowrnment may spcmsor b~nchmarking activities. High labour productivity and
strong cost compellli~eness need to be I~amt from the b~st-r~puted ;hipyards in the
\\orld, like Hyundai in South Korea or Mitshi in Japan. Training oflhe lecllllical slatr
wi II accelerate th~ 'peed of construction
u. Go,emment may plan and declare certain facLlillesand lucrativc incentives!(}
boost export shiphuilding. such as: ta~ "~"ml'tion, subsidy, ea.'~ rcgulations for
ri\'CrSlde elf seashQre land [or establishing ne" ,hipyards or expanding shipbuilding
[a~ilily for existing ,hip)-ard;,
\, EPB may p\lhlisheJ a li,t of material" d~ck fLliing,. out fittings. household
items, tools, mJchine1'ies. etc, which can be produce iocall, and the published list can
be hando,'er to the ship ownerS and ship}ard owners, At tile sam~ time government
may publi;h ~ list of prospective ilems that mil" bc produced in Bangladesh and
pr~se~t to the B~ng1ade,hi local entrepreneurs aod industriali,ts.
w. t\ ;hip is a ,ers~til~ inlcntionall} convertible ~sset and shipbuilding required
huge ""rking capitol with long duration. Bangladcsh Bank may l~gulmc such p(llicy
lhat. ,hips undcr construction arC iien to the bank ~s the security of any financ I ng that
is takcn from a bank durin~ shipbulldl~g.
)., Because or n:isting ceilin~ and sizes of I"cal banks. a single local bank
(ewept on~ Or two) cannot fi~ance a shipbuildiog contract. It i, thul necessary to
ronn cons0rliums 101'funding shipbuilding. The government in this regard me,
impkmcn( necessary instruct ion and mk~ \ iabIe steps as quick as pOSSible,
y, Govemment ma)' have lon~-term vi,ion to produce ,killed and usef,,1 hLLm~n
rc,ollr~~ dc, dopment m~d"mism, Nothing should pbn in Ad-hoc basLS,
7 Quality is lh~ prime requirement of shipblLilJing industry. To achic,e this.
join; cllOrl of ship)ard,. government authorities ond other international monitoring
bodies. such as classification so~iclies. bu}ers. etc il essential
no Satet, is a long-ler'" investment ~nd it adds 10 the 'l""lily. 13LL!
the mitial cost
[or s~fely as;ura~ce is high. L(jcal ship}nrds need special cares and spend money to
illlprc>\csntel) in the working pbce.
nb. In time ddiver) is a spirit (}f shipbuild Lng because the invested capital is
hug", But pu ncwal,t'. i., not h"bitlLalin our culturc, H~,e hours pa>s by held in traftie.
do"s pass 3W"Y o~ flies. bypassing UeciSLon-making and deli,ery " dcloyed
GO'""fnment may take carC in this matter to e.~pedite th~ proccss.
~c. Every ship is an individual projCC(and require, well drawn planning, opening
of letter of credits, paym~nts of advanccs where necessary must be flawless as all
activities are interdependent. To expedite the delivery process of ship banks and
custom s honses must und~rstand and do the utmost for maintaining schedule,.
ad. Clearancc of importahle good, through the custom in Bangladesh is One or'
the complicmcd and trouble<;Qmejobs. Eas} way "green channel method"' of
clearance can sal,e (he problem, So import of ~xp(}rt.oriellted "hip's items should get
speciJI care and spirit of grc~n channel ,hOlLi~b~ mJltltulned
ue, An owners rerr~,,,ntative (5) need, to swy for a year or mOrcand occasional
visits ta the o"ner Or to his family ar~ usual for him/her. "linisuy offareign affai,-,
tHaI'ease the policy and ensure the proc~" of multi entry visa for both Intemation"1
ship Qwners and their representatives.
of. bpolt Qrien(~t!shipyard' lllay get preferenee for load shearing frotHnational
grid and Ltnintenupled gas supply.
ago [langbdesh doel not r1Clduc~intr! bases, Theref"r" ~I\llllinum Jnd othcr
similar "OI"h .,1I11ior.Problem may solye immedimel) to help the g",wth of
shlpbl,ilding.
ah. Att~mplS are being .,een to import vessd, and craft "hiGh Bangladesh can
build. Bal1gbd~sh may call fo, international tenders to ensure qLl~lityand best buy,
bu! Url>cI'UPUIO\lS
conspira~ic, 10 bar local Ihip:ards to pani(i~.1tc ,n th,," '''"cierl
need w be a\'olded.
"J Reqllir~mcnl of the safet~ nm1stendard of" ork ~jtthe shipya,-d, "ccord I"g (0
the fOuropeanbll\'ers m~ quite high and withocL1compliance, it is not p,",sihle to seek
mdcl" fmm Europ"an buyers Or to continue receivcd ""ders. With any cos' e~ron
oriented local ship, mds ,ho'ild be maintain safe(y standard.
uk, I:langl'ldcshi ,(ate diplomacy he, to be slrong ettough to support export of
ships, In dlftkull cOnlrac(ual commercial negotiation. it is a necessary !() have
~dequ"le '"ppOlt fran1 our mission abroad ~r.d our go\'emmen( nect! to negotiate
\I',[h ti:Jr~lgrlembuss;e; in B~nglad~5h. Undcr critical circumst~nccs a Bangbd~$hi
mission abro~J may laKe care ofthc Bangladeshi shipbllilders.
al. Good rcput~tlon and rcspecled to buycr's in!erest is e,tremciy required for
nporI oriented loc'al ship:'ards (0 sll,tain in (he interna(ional bLlSlness~ren".

1<)9
am. Project planning i~ a critical in process of ~hip production. The advantage of
chccp labom can only be achieved with proper planning, At the same time to produce
,ki lied workforce, self training school are n~e<ledInside the 5hipyards,
an, Bangladesh government may provide '"Khas Land"' at the comperitive price in
f",our of shipbuilding Industrie, under case rules and regulation,. Policy may be
tkclarcd bj joint effort of the" linislry of Land and Ministry of Environment,
ap. Government adminlstlotion may have to be responsibility to rcpair the roads,
port.,. jelly. etc and 10 beatify the connecli vily and surround Ing of e'-port shIpyurds as
well. The access road of the Shipyards may b~ organized. which make> ir ea,ler lor
foreign customer to visit th~ lards
ago Arrangement may b~ mude to id~nlify po,;siblc backward linkage industries
and marine technology induding design, components and machincries on a primity
basis through carrying out a su",ey to "nharr~ethe indusll'}'up to the regulred level
ar. (jo"ernment nced 1Obe send markCli~gmission abl'Cladon a reglllar ba,i, and
nl~l wke steps 10 produce suftkient skilled manpower ~nd also may tnke necessary
steps for boosting up e.,porl of ships.
as. Inland "~teTways. "ater transporl Hnd ',hipb\tlldlng sector should gel its du~
sh",~ from AD!' and ~.~P0rlshipbuilding slwuld get special mlcntion like RG'vl.
nt. Extcnsj"e dredging is regUlred for m'~QL'rivcls 01 Bangladesh 1Omalnta;11
nov;pbili'Y in.illbnd "al~rlV~:'s. Bridge; and o,-crheod structure Ol'er the major
,-ivel'sIll"q maintain" slandard heighr (al Ic~,;r25 Ille,er ail' drafl ckarance from the
mon,oem \\'at~r !cHI).
all S, I" ",,,,king em ironment. lime Iy Mllver and mainlaill qual Ltyare e~lrcmely
L'eqLLil~d
for e,porl oriemed loc~l ,hipyards 10 sustain in th~ iOlern~tional bLL;in~"
MCnn, Wilh any co,t e~pon oriented local shipyards need to be mainlairrirrg good
r~p!l!"liO'n,
n\'o Presemi:' offer cOmrs from foreign ships 0" ncr tor "ariou, lypc,; of smaller
capacily vessels. because due 10 lack of Infl'a,truclure capability and depth of "'ater
lilniting tile sizes ofthe;e ,'essels to'a n"L~iLl1um
of I0000 D\\ T. Iflhe government
allo" s mor~ ,h ip)'ards along the rivcr Knrna phuli nml Bhatin ry; Il\unv iIltermnion<l
1
COmp~Jli~smiglll be willing ro set lip joi Ilt ,entur~ ,hipyords

200
REFERENCES

[IJ Alam, Commodore M K, Bangladesh Maritime Challenges in the 21sl Century

(Dhaka' Pathak Shamabesh Publicalion, 2004), p, 21.
[2] BR 1806. (l.ondon, HMSO, 1995), Fundamcntals of British Maritime Doctrine P.70
[3] Zaman, Musrufa: Rediscovering the Boats of Bangladesh: weekend Magazine, The
Daily Star; Date: 22 Oct 2004
[4J Shahabullah. :-'1,Vice Chairman, Export Promotion Rureau. Shipbuilding Industry of
Bangladesh and its E"port Possibility, EPB of Banglade,h. Thc Daily It"e[~q 8. The
Daily Star, 0 I Jan 2009 and w\'.cv, ,shipbuildinehislOry.com
[~J \\\V\<,BSEC.gov.bd
[6j r\ adkarn i, S.. ~cw Player of Sh~pbuiiding Boom. l\ ~\'al Archil~ct, ;,lar 200S
[7] w"\V.cpa g(}v.bd
[8] Rahman. M.. S.. l\~val Ar~hitect. C[)])L, Chillag(}Jlg.
[9] Rahim. A. ASSD~iateprofessor, Dept of Naval Archilect\lre & ~larine r.ngineering,
[l LI['"I
[IOj Chiltagong Dry Dock LId. Oveniew. www.cddl.gov.com
[II] The Duily Slar 24 May 200S, www.thedailvltar.ne1.
[12] Rak; . E.. G~neral Mon~ger CDDL. Chil\agong.
[13J rhe Daily Slar and lhe Daily ()bs~rver, May 23, 2008, www.thedai!vsmr,netand
\\,"W.ban"lad~sh,obse,veronl ine.-:om
[I ~J Ibngladesh Bureau ofStali'lics, 199~.p. 25
[15] 1.lo"ain, K A. and Zaknria, N M. G.. Potcn(L~llty ami Prospect (}f Shipb~.ilding
Indu.,trie, in Bangladesh. The Journal of l\OAMI, Vol.25, No,2. page 33-54.
Dec 2{)()~
[16] !bngladesh Bure~u ofStali,lics, 199~.p. 25
[171 \,"orld Dc,dopment Report. 2007, p. 2SS
[1~I Rahman. M. i\1.. President. Shipbuilding Association of B~ng1adesh and Cha;rman of
High-speed Shipyard & Engineering Ltd (the oldesl private ship~ard in Bangladesh)
[19] SlOpford. ~l.. )",!arilimeEcon(}mics. Un"in H)m~o Pres" Lu"don. 1933,
[20] %enoi. R. A.. Ship Produ<:t:onTedmology, LinivcrSl!) OfSolllharnptan. UK, 2007
[21] L~mb. T. Enginecnng for ship production. SNAMI'. Ship pr0du<:ti(}~committee.
Universit" ofi\lichigan. USAI9S6
[221 Shipbuilding Glob~1 Ord~rbook;n mill;on GT - \Vikipedi~. "w\\'.wikipedla.com
[23] B~n. A, ChaLrnum,Anunda Shipy~,d and ~lip"ny Limited.
[2~1 II(}ssnin,,,1. S.. )\'10. Western Marine Shipyard Limited.
l25] Ahme-i. R. lj. Prospect of Shipbllildi<'g 1nduSlri," in B~ngladesh, the l\ew },'~tion,
19 Apl'i12008
126] Churchill. G, A.. "'1arketing Rese"rch Methodological Found~lion, Si~th editi(}n.
H~fCOllltGmL~Collegc Puhlishers. 1995
[27] Rahman. 13.. Director Genel'al. Department of Sbipping. On issu~ of different Asp~cls
afShipbuilding Industry on se,eral occosion.,
[28] Bro"hlJre of An~nd" Shipyard and <;lIp"ays Ltd, P"blio'1ed by Anada. 2008
[29] Bool,;letof We,lern ;,lorine Shipyord Ltd, Published b} \\' estern Murin~, 2008
[30] Goss. R, O. Ad"l~ces In "lar;[ime Ec(}nomics,Call1bridg~Universily Pr~ss, 1982
[31] Shipbuilders dispel r~c~SSlOn fears. The Onil) Sw. 30 August 2009.
sohel'Cl'lhedaih stal'.n~l. "" \V.thed~iI, S!~r.neL
[32J Roy. A. C. A Hiswry of "lugha1 Navy ~nd N~"al W"rfarc. The World Press I'Vl
Limit~d, Caklm~, 19n
[33] Islam, A, K. t\ 1, F., Ch;ef E~gineer. Department of Shipping
[3~j Swpford. M.. "loritime Economics, London Unwin Hymon. I<)~S.Chapter 8
[35J l'iere;ian R Ships and Shipping: A Comprehensi,e Guid~, Penwell press, New York,
1981
[36] Taylor D W Speed and Power of Ship I, US shipping Board, Revised J 993
[37] Stopford, R. M, In(er Regional Sea bome Tmde-.A disagreement commodity SlUdy,
London Uni~ersit} Ph D thesis, 1979
[38] Geolfery Till, "larilime Strategy and lh~ Nuclear Age, London, The Macmillan Press
Ltd, 1984
[39] Srivastava, S, K., Economics or' Transport, {S Chand & Co I.td, l':ew Delhi, 1975}
r40] Khan, M, E, K., Cbainnan, Khan Brother> Shipbuilding Ltd
r41] Br0chure of Highs peed Shipyard and F.ngineering \Vorl Ltd
l4?) Rahm~n. S .. ~aval .Architect, CDDL, Chittagong
[43] Tab:"ak. U,AZ,M, ond Rahman, A., A Ba~kgL'Our.dPaper on Ship Breokr ard Dh"b
Nov 1999
[.'14] 1'lbaL K.S .. A5sociot~ professor, Dept oLNaval Architecture & Marin~ Engineering.
BUET
r45] Brodlllrt ofChltlaag()ng Dr)- Dock Ltd ww".cddl.gov.com
[46] Ov~r";~\" and Present ,wtus of KSY, ~,bQn!1.lade,hnav\' .or[!/ks\'
(47 J R"hman, M, M .. President. Shipb\lllding ,-;,;sociation of Bangladesh and Chairm~n ot
High-spud Shipyord & Engin~~nng Ud
r 48] hllp)!"''''\\' .marltl meconn~~lOr ,corn!Ne"sDc!ails/3 4 I7"'lan~''English/''ih ipbuild~r3-
face-mas, i\ c_orcicr_cancellations.
[49] Slatislics of DOS ill 2008. Engineering Section, Deparlmcnt of Shipp Lng of
Banglade<;h
r50] KomfOwski. O\\ner of Komrows~i rVluritim GmbH, Geflmny, on i,5ue ()f dLiTcrenl
A"p~tls of Shipbuilding lndllstry of Bangladcsh at A <;S1.on 21 May 2009
[51] Socrcnscn. >'1.. Sea Consultant and R"pr~s~n!atlve of Foreign Ship Owner of61110
D\\'T ;"l(llrirlll"pose Vesse! (At Ananda SllLpyard) of K(}l11fO\\'ski~Iaritim Gm bll. on
isstlc of dltTer~m A,pcets of Shipbuilding Indu5tr, (}f BanglJd~sh al his oftlce ill
AS<;L on l~ June 2009
l52] I,lam. )vl. S.. ehairm~n \\'~slcrn Mal'ine Shipjard Ltd .. (In i."ue ofdllterent Aspects
(}1'Shipbuilding IndustT\ ufBanglade5h at hi, office on se,~r~1 otcas;C)n
[531 Rahman. 1\1.. E,,~cuti\'e Ducctor, Karn"pilllii Silip)~rd Private Ltd. o~ issue of
dLtTerem Aspec!, of ShipbUilding Indm!ry 01 [bngIaJ~sh m hiS offL"~ 0n II Oct
2008
r5.•] TnlllkJar. ~,S" Pl'ospeci of Shipbuilding lndllmi~s in Ha~gladcsh, Ullderg,aduate
Th~si5 submitted to Dcpt. of Naval ,\rchiteclllre ~nd :-'larin~ Engll1~ering. BUF.T.
20Ll~
[55] Chowdhury. K.H C. Dept. ?\'oval Archil~~[lITe & Marine Engineering. RUET.
[56] \\W\\ . ilo.org:publi\' iE ~d;,hldialoge/s"clor:t~c hmetitmt,eoo/tmter6.htm -57k
[57J Tabmak U A,Z,M, ~nd Rahman, A" t\ B~ckgmurrd P~pcr Ott Ship Br~akYard [)haka
?\'O\ 1999
[58] M~p, 5 (E:-;!r~Lt from B:\ Chart400001). Provid~d by Ba~gladcsh N~\:-
[59] Shahabulbh. ,,1.. Vice Chairman, Shipbuilding Indllstry of Ba~g!adesh and its
E,por1 l'o>sibililj'. EPG ofB"ngladcsh, 01 bn""ry, 2009
r60] 8llfe~1l 0 I'labor SlOtistics (BlS) and \\'W\\ .m~fineralk.c(lm
[6 I] St~tisties pro\'ided b, B",~au of [.abor Smtistics (BlS). A vtmge Hourly labor Costs
LnCurrent USD. inehlding Fringe Benet,t,.
[62] Kabir. 1\1..-\.. SLte "t,nager, Marine E~g;nccr and Repr~,"ntative of For.ign Sh1r
O\\ll~r "I' 6000 O\\! I\-Iultipurpose Vess~l (At Ananda ShLpjard) of Komrowski
"laritim GmbH. on issue or different Aspe,]s or' Sh Ipbu; Iding InduSlf: of Bangladesh
at his office in ASSl on se\eral oecasion

202
[63] BBS Census of Enterprises, 200112003
[64] Komrowski, Owner of Komrowski lv1aritim GmbH, Germany, on issue of
shipbuilding industry of Bangladesh at ASSL on 21 May 2009
[65] Benford, H. A., }.lavalArchitecture's Introduclion lo Engineering eeonom ics. 1983
[66] Neresian. R.. Ships and Shipping: A Comprehensive Guide, Penwell press. New
York. 198\
[671 Stopf[JT(i.M., :VlaritimeEconomics, London Unwin Hyman. 1988, Chapter 10,
[68J :Stopf"rd, R, 1>\,.New Design a~d Ncw Building, Lloyd's of London press, 19i9
[69] Nere,ian, R" Ships and Shipping, A Comprehensi,e Guide. Pell"el1 press. Nell'
York,1981
[70J [lenford. H. Ship's Capitol Cost: The approJche,; of Economists. Naval
Architec!\lT~s and Business Monag~", Journal of Maritime Policy and :-"lanag~m~m.
vol12.no I
[i I] Stapford. R ,\1., I~ler RegionJI "ea born~ Trade- A disagr~~m~nt com rr,odily Sludy.
London L;nl\er5it~ Ph D Ihesis, 1979
[72] Zannetos. 1 .. "Luket and Cost ~lruclure in Shipping. f'r"ccdin~ of Shipping
Management SemonM, Institute of Shipping Reseurch. I:krgen. I972
[73J Ch\m. H 1-1.,Depl of l\~\'al Archilecturc & Ocean Engineering. Pusan t'alional
Uni~e"itJ' South Korea. on is,,"~ of different Aspects of World Shipbuilding at
Shipbuilding Seminar at flUeT, in Dhaka. 01114 Oct 2009
[74] Dijferent StatiSli~\ & Charts relaled wilh Ship and Shipbuilding busineSS,
w\\'\\'.clarkso~,. ne.t![Sic h~rts
[75J Uo~d', Register's "World Fleel Slaristics"
(76] CRS, Shipping Inlormation Nelwork
[77J Ship & Shipbuilding Stati,tics. \\'W\\'.wart,;1a com
1781 Ste~1nll"kct ~nd Steel price. "",w,mer' CQ,Ukl~"orld.pricehtm
[79] K"llcr. P. and Keller. K" Lanc, M~rketing I\-'lanagcmer\t.Prent;c~ Hall Pvt Ltd. New
Delhi. 2006
[80] Hoss~irl, K.-" Commander, Ballglad~sh us a PQlemial Ship-Exponing I'Jlion.
Elanglade.,h Arm~d forces do} Jouma12009. Publish [m NO\ 21.2009
[81J LlQ)d's Regi,td,. World rleet Stalistics
[8::'J Putrik. W.. Regio~~1 S~les Direclor, Ship Po\\er. Wiinsilii Corp. Lecture in Semln~r
ill Dh~ka at H0\cl Rudi,son o~ Oct II. 20()~
[83] f-kluti,." lah"uf r~te of di [l"rcnt shipbuild i~g nJti('n$. Indin Defence rc\'iew, 2()()5
[84J Dai1\'Star t' e\' s-pnper on June 26, 2008: W\\'\\ .thedai I, SLac.~Cl
[1>5] Shahabliliah. "l.. Vice Pr~sidcnt. E~por: 1'''Jmotion Btlreuu. Pr~,~~tn!ion m FrB
Seminar H~II. Dhaka. On 16 lilly
1~6] Jama\tldJi~. S.. Prospect of Shipbuilding lnd",lry of Bnngbdesh. Home Page,
Dhaka, II April 200g
[8i] Islam. ",I S. Bangladesh Se, to Emcrgc ~s l\e\\' Shipbuilding H\lb, Hom~ Page.
DI1a~'. 05 Fcb ::'008
[88] Fro\\'ein. BJngbde,h Local Firm to Build 10 Ship's for Japan. 16 J,,~ :2008
[89] Anna[n. ~L ~l. EC Keen to P",wid~ to ShipbLlildlllg in BangbdeslJ. !lome I'ag<:.
Dh~b, 0::'Jun 1008
[YO] Fjsh~r, J,O, a~d Holbaa"h, Grcd". Cost ~1anageme~t i~ Shipbuilding. The Naval
Archltecwre. ;-';0" 2008
[911 Slopt~)fd. ~L. .\laritime Economics. London \ll1\\ i" I'lyman, 1988. Chapter 7.
[92] Smilh, A,. The \\'e~lth ofnmions. Penguin english Library. London, 1776. Ch~pter 3
[93] Branch. A E.. Elemenl, of Shipping, 5Lh cdiLion.Chopman & Iiall, London, 198I
[Y41 Neresi~n. IL Ships and Shipping; A COl1lrreh~~s;\'e Guide. Pen\\ell prcss. New
York. 1981

203
[95] Flr';t Mari ne Intemational Lim ited, Overview of international merchant sh ipblli Iding,
Background report of European Union, Belgium, European Union. 2003
[961 Th~ Eeonomi,;( lnteiligence, Shipping Slump, ",[ww. Ebusincssforum.com, 2005
[97J ~larc, c., Th~ Yen and Exchange Rate Volatility (A t"o part report
","0.42'\). Japan Eeonom ic institu(ion, 1999
[98] Mid-Term Review of the H'YP, Planning Commission, ,vlini,try of PI~nning,
Go"emment of Peoplc,; Republic of Bangladesh, 2009
[99] Ban~ladesh.seach.c"m.bd
[ I 00] laman, C. F . Managing D,rector. (jermli~nischcr Lloyd [ll) Ltd. at ASS!. offic~, On
issue of diffel'ent Aspects of Shipbuilding Industry of Bangladesh on ,~vcml
occasIOns
[I 0 I] Khan. 1-1. A. 1-1D, DEW Ltd, Nar")liLlganj. on issue "f Jifterent A'peCb of
SI\lpbuildlng Ind\l,try or-Bangladesh on ,everal occasions
[ I 02] Alam. 1\-1,7., E;..eculi\'~ \'ice Pre.,idenl. United Commercial Bank Limited. Dh"ka,
011Issue of different A.,p~cts of Shi~building Industry of [Janglalksh at £PB Seminar
Hall on 21 .-\pn12009
[I 03] Kh~n, E, A .. ClmirmaLl Executive Comm;ttee of Islami Bank Banglodesh Ltd, on
iSlut of different Aspect, of Shlpb\lilding Industry of Bangladesh al his office o~
se,,,r:ti occ~sion
[104] Ba,i. A" Ch~irman of A~ando Shipy~rd & Slip\\'JYs [.td. On iSSLLeof difTercnt
Aspects of Shipbuild ing I~d ustr)' of Bangladesh ,n his off Leeon ,",cral occa ,ion
[I 05] Rahman, I-I.A. Diputy Directol'. Forei~11 E..•. ch~nge Polic; Department, Bangladesh
Bank. Db~ka. on issue of d itrer~nt A're~IS of Sb Lpbulid Ing Induslry of l3angl"des~ at
EPI3 SemlllJr Hall on 16 July 201)9
[ 106] H:,-e.1\-1.A., 5enior A"iswn( V,ce PresiJent. Pl'ime fbnk Limited, Dh~b. on i"ue or'
ditTere:lt Aspects of Shirbu iIding Indu"lry of Banglodesh at EPB Seminar Hall on 16
July 2009
[ I07 J Imran. M., ~ Ianaging Dil'ector, Khulna ShipY~l'd Ltd, "n issue of diffel'enl Aspects of
5hip' ard Activities of B-1ngbde,h ~,~ 28 l\-10)'20()~
Cho\\dhur\'. ~r. R. K .. F,eculivc Direclor. :-AIST. Chiltagong. at hi, ortice on ISsue
of d in'erem A>~ccts of 1m. ,ic; clopment of Sh ipbuilding IndlLstry uf B~ngl~desh on
II July 2009
[ I09 J f-bsega"o. K .. Dept of Nan I Archil~cture &. Oceon Enginetring, Osa~a lJni\~r5ity.
Japan. on issLl~ "f di n"rent Asp"Cl, of World Shipbu iIding at ShLpbuilding Seminar
~t SuET. III Dlw~a, ('n 09 Dec 200~
[I I OJ B L<\' U". ~ 1J .. Add Ch iel' Engr, B I\VTA, on issue of di ff"'"~t Aspect' of Shipbu ildir.g
Indus(l) of B:mgbdesh at his ofTLceon 22 Oct 2008
[112] Rahm~n, 1\-1.A .. Ship SurvcY0l', (jermannisehcr Lloyd. at ASSL office, on issue of
d ifl<:""rlt Aspe,;ts 0f Shi~bui IdIng Indllstry of Bangladesh on s~, eral occasion
[I 13J I atL!: M. --1,. Ma~aging Di,e,tor, NESL, on issue of different Aspe<:l> of
Shipbuilding Industry 01 [langlu,k,h at his off Leeon '~YCr~1 oec~sion
[I 14] Iqbal. K.S .. Asst Prof. D"partmem of Nu\ul Architecture & Marine Engineering.
BUl:.I. on lh" various aspect or-development of [WT and Vessel S~fely at hi, oftice
on S~'~r"1 Occasion
[I 15] B~rec. ~I.S .. Prof of!\ avol Arcl1ilect &. Marine Engr Dept of B U ET, Dhaka, on i"ue
of di fkrent "'c~deL11i..:aspects of Sbipbui Iding of Bangladesh on 15 Feb 2009
[II 6] rrl,\\~in. S .. Ambussador &. Head of Delegmi,,~. European \inion, D~kgali0" of the
Europe~n COll1mi"ion to Bangbde,h, on issue of different Aspects of World li~d
n"ngbdeshl Shipbuilding at 8FTI t\alional Shipbllilding Seminar al Hotel
S0n~rgnon. in Dlwka. on 29 Scp 2009

20-1
[117] Khondoker, M.R.H" former Chairman, BlWTA, on the Issue of different Aspects of
1\"iT in Bangladesh at his residence on 09 November 2008 and Gazi G Rabbani,
CEO, Dhaka D(}ckyard & Eng Work Ltd, on is,ue of different Aspects of
Shipbuilding Industry of Bangladesh at hi, office on 07 May 2009
[I 18] Shahabulloh, M" Vice Chairman, Export Promotion Bureau, at EPB Seminar Hall,
Dhaka. on issue of different ,Aspects of Shipbuilding Industry of Bangladesh at his
offiee on 16 July 2009
r I I 9] Komra"ski, Owner of Komrowski Maritim GmbH. Germany, on is.,ue of different
A'peets (}fShipbuilding Industry of Bongladesh at ASSL on 21 May 2009
[120] Kh"nJker, S. Berlin University of 'iechnology. on issue of different Aspect> of
Shipbuilding Indu<tTy of Bangladesh at ZIA C'n22 July 2007
[121 ] Quuder. 0, i\-brine Hiologi,t and Chief Scientific omc~r of SPARSO, at hi, ofli,e
on th~ issu~s "f present State of W~(crways ofHanglnd~sh, Dhak~, on 31 A\lg 2008
[ 122] Begum, A, A" Deputy Secretar)'. MLnim}' of Finance, at EI'B Seminar HaiL Dhaka.
on isstle of different Aspe'cts of Shipbuilding Industry of HanglaJesh on 16 July 2009
[123] falzunnesa, ~" Director, ,\linistry of Foreign Affai", at EPE Seminar Hull. Uhab,
on i<sue of dlffel'el1t Aspecls of Shipbuilding indu,try of Bangladcsh at EPt! ~emin"r
Hollon 16 July 2009
[124] Rahmon. i\-I.. f,,:eeurive DireclOI, Karnaphuli Shipyard Private Ltd, on is,ut of
different Aspects (}f Shipbuilding Industry of B,,"gladcsh at his offic~ on II' Oct
2008
[ 125J Svensson. G. Heyol1d Global Marketing & Thc Globalizotion (}f MnrkCllng
Activitie,. lvl"Llag~L11co(DeciSion, 2002
[i26J Rahman, ".1 A .. Diplll} Dir~ct0r, Foreign Exchang~ PoliCY Department, Bangladesh
Hank. Dh~ka. 011is;ue Qf d irrer~nt Aspects (}fShipbuild ing Indus!ry of Bangladesll at
f'I'B Seminar Hall 01116 July 2009
1127] Islam. ~1 R. E.,e~lIti\'c EngLneer. I:lIWTA. at his QftJee. on is.,ue Oflhc present ,tate
of I\\'T on 05 June and as August 2009
[ 128] H','gc. E,C.~r.d Alan. D. A. Thc Spirit ofManag~m"n! E.,~dl"nce. Do\\' Jones In\in.
1988
[129J I)~,e. U .. lIuman I,e,ourcc Champions, BoslOn: H~n'ard 13usiness School Press.
1~')7
[130] James. I:l. D.. production &. OPel alions Man~gement. ~1cG m" Hi II,1993
[ I 31] !slam. A K. M. r .. Cbief l-'ngintcr & Sllrveyer, lJepanmenl of Shipping. (}n issue of
differ~nt Asp~"ts of ShipbuildLng Industry of B~ngludesh at his offLc~ 0n 16 May
2009
[ 132] Levin. R, I.. David S R. and Joel. P, S.. Qu~nlil:JliH }\ppro~ches to MaL1ag~L11cnt,
l\e\\ York'~lcCll'm, Hill. 1986
1133J Isbm. ",1 S.. Int~mal i0MI Ship Surveyor ,,~d C O\lntry Manager of NKK
Bangludc,h ltd.
[13.)J Da" H., Perform~nce I\-lanagemenL Prentice Hall. 2003
[ I 3 5] Huge. E, C. u~d Alan, D. A, The Spirit of Management I:'"cdlcnc~, Do" Jones
1t\I'in.1988
[136] Bonks, 1.. Principles of Quality COlltrol, New York: Wile}'. 1989
[ I 3 71 R~hm~n, B., DircelOr General. D~parlmCIlt of Sh ippLllg. on i5Sue of Jifferent Aspect,
u f Sh ipbuild ing Irtdustry of Bangladesh at his "ffiee at DOS. Dhaka, on 05 J ul} 2009
[138] lsl~m. :>1.A .. COl1sult~nt &. Loc~1 Ship Designer.l\lIS Three Angle
~Iarine Cmbullant. ~! his "ftice on i"ue of difterent A,peets (}f Shipbuilding
Ir.dustr} of I:l:mgl:\dclh on s~veral (}cca,ions
[ 139] JL'mn. J. M. and Frank. cd. G .. Qualit} Planning anJ An~lysis. Ne" York: McGraw
Hill. 1')80

205
[140] Islam, },I.S" First Secretury' (Customs), National Board of Revenue,Dhaka, on Issue
of ditTerenl A,pect> of Shipb~ild ing;r~dustT) of Bangladesh at EPS Seminar Hall on
16 July 2009
[14 t] Muller, W., Project Ma~ager and Representative of foreign Ship Owner of 6100
DWT Multipurpose Ve"d (At ASSL) of Komrollski Maritim GmbH, on issue of
different Aspects of Shipbuilding lnd\lstry of Bangladesh on 20 Jan 2009
II 42J Alamgir, 1\1,. Cl~ss Vesse I Survcyor. German ischer Lloyd Banglade,h Ltd
[ 143J http://www.maritimeconnectm.com/\.cl •.sDetai Isl~4r7/lan~/Em11i,h/Shipbuilders-
foce.mossi ve-order -cancellation" wshtml
[14~] Ban, A" Chainnan of Anand" Shipy~rd &; SlipI'uys Ltd and Md Saif,,1
Islam, chairman Western ;'lurioe Shipyard Ltd
[145] bmao, C. L "tanaging Director. Gcnnannischer Lloyd BD Ltd. on is'lle of
Problems on Shipbuilding Ind\lstry ofB"ngladesh Oilse\eral occa,;on$
f146] Environmental Aspect ond Shipbuildiog. www.toshipa,or,kr and
Y:i:::Y.J.\
.£conom\'watc h,COr,l,
[t~7] Chida, T, and Duvies, PS" The Japanclc shipping and shipbuilding Industry - A
history of their m[)dern grol'th. UK. ATHLONE in 1990
[143] Thc b~sis for e"p~llsion, Japanese ,hipping and shipbuild ing ind\lstry. p 133 ,n 2006
[149] ISL Comment 2004 _ Shipping, Shipbuilding and Port. Germany: LSL
[150] 'Dry Bulk M~rtet Development'. (lSL Market Anal)sis 2005). ,,,,,,w,isL org
[151] KIET 2004 Korean shipimilding fulur~ issue"W\IIV .kicl.com.re. kr
[I 32] ISL 2005, 'Major Sh;pbu ilding cMio~\'. (ISL Mal lei AnalysIs 2005).
w\\'w.isL.oru
[ 153] ISL 2005, \\ orld :vlcrchJnt Heetl, 0 ECD shipping and shipbui Iding.\1IV IV .i,I.or~
[154] SJTDS,,12005,"1 he Stur;ing ofChangxin and L:ongxLlcBuse ofCSSC.
III' \\,,shipm'JseuLTIsjtil,edu.cn
[155] People D~il\', China be,l'llw \\wld', 3rd lal'g~,t Shipbw;lcer. in 2005.
W\\1\.Peclpledailv,com
l136] rhe Eco~omist lotdl igenc~. Shipping Slump, in 2005. WWI\',Eb\1<ine"sforumc[)m
[157] Barry. R,S.. The shipbuilding market irr2004. !'I'allee: BRS
[158] CESA. CESA Anr.LL,,1 Report 200~-2005, TIeIgillll1:CESA
[159[ Richard. S, \\' .. CSSC _ J\' Partner in China;n 200J,.I\--lilrilleneWSpp9.1 0
[160J !'ang. Q. and Pcn.\\' .. The K~ys tor China 10 bceome World Fa~t')I": (fcchnolog;-
,md 1\\sTkcc).2004, Chi~~: Hmzhong Science and Technolog: Un;ver,ily. Re,earch
center of cconomic deve lopment
It(,lj Zhu. R" lYbnagement In Ship r'.iLlding lllLmagemem. m 2005,
WI"" ,shio2000 com.m
[162] tSt Comment 2005 _ Shipping. Shipbuilding and POri,Gerl11~ny:LSI.
[163J XLe.Y.. Nalion~1to increalc oil.supply security. in 2005.. www.cl1inadail).com
[16--\] LiLl.F" The COl11pa,is"nbe!,\een Chirresc and Korea shipyard. in 2006
1\'''''''. tsti'.sh,cLl
[1651 Candid Views trom CA't'SJ. Sil;pbuildirrg in China. The Naval Ar~hitecture.
Seplember200S
[161i1 Shichun. Y, Standing \'ice Cha;r:n~n of China A"ocimiorr of the Nalional
Shipbuilding Industr)' (CANSl), Interl';el\ to Thc Na,"al Ar,hitect 1\lagazine (UK).
Scp 2008
[I 67] K031lipa2005. Annual Repolt 0f Ko,h ipo 201l5,S"uth Korea: Koshipu
[168J Kin1. S K. Currcnltrend i~ Korcan Shipbuilding. I\\\W atip,or~
l16~ 1 Kellel'. \\' , Simple Linear Regression. ;n 2004 USA: THOMSO;>i, Chapter 18.
[ I70] C,mdid Vi~\\'s from CAl\SI. SbipbuiIding In ell iIl~,Th~ Nn\'al Architcct\lre,
Scplember 2008
 [ 171 Shichun Yu, Standing Vice Chairman of China A,sociation of the National
Shipbuilding industry (CANS1), Interview to The Naval Architec! Magazine (UK),
Sep 2008.
[172J www.rescarehandmarkets.comlrcport
[ 173) www dar~.co. in!opportun itie.,iinfrastructure.logisticslshipbu ild ingindia-aspires.to-
em~rge-as-a-Ieadin2.plaver htm
[ I74] W'N".eochi nshipvard ,com
[175] ;\ew Player In Shipbuilding Boom. Th~ Naval Arcilitect, UK. rv1ar2008
[ 176] Surveyor Fall 2007. A «u"rterly m~gazine from A[lS (American Bureau of Shipping)
in 2007, pi I
[ 177] ASEN\ (Association of Suutheast Asian Nations) (2005). Promoting Effici~nt and
Competitive Iltlra-ASEAN Shipping S~ryiees. Vietnam Country Report. available.
~
www,aseansee,org
[178) Rcport of liS Foreign Commercial Service and Department of State In 2005
[ 17~] ASIA INVEST (2002). Guidebook for European lnveSlOrs in l/leman1, European
Commi"i(}n Asia lnvestment Facility. Luxembourg
[1SOl 8(}rgersen, A., (2004), Studies on Private Seetor De,elopment and Business
Opportuniti~s for Norwegianlndustry and 'lrad~ in Vietnam. report from ?\HO
appoinLed learn
[18 I] BLP (Business Linkag~ Program) (2005), The V;etname,e Shlpb\lilding Industry
Opporturri(ies for Danish firms 10 Lnvestin Victnam through the privatization of Siote
Owned COJ1\p~nies.repon from Hanoi Embassy of Denmark
[182] TiLe VLdnalllese Shipbuilding Indu,lry, Opport\ll1ities f", Danish finns (0 itl\~,t in
Vietnam through the pril'~(ization of State Owned Companies. report from Hanoi
Emba"y 0f Dcnmark. HLP (B\lSlness [jnbg<: Program)_ in 2005
Ii 831 Europ~~n Commission, Report on Vielnam 2006, European Union EconomiC &
Con,mer~ ial Counselor>. in 2006. \\ \\" .~5'h'nm,ec.eurora,eu'cn'eco!rer",:ts,hlm
[18~] \'inashin Business Group. Vinashin Business Group commercial prcsel;talion.
D~nl5h E~polt Asso,-i~tion. ill ~006. www.degadk
[ 185J ABS (American BLLreaUof Shipp,ng) (2Glt7). Surveyor Fall 2007, A qu«rlcrly
magazine from ABS
[186] Hlian. H.\' .. Central Vietnam Ri,ing as an Attractive Addre" for lnvestment.
Pr"5em~ti0n 11}Investment Promotion Center NOlth Vieman' i" year 2007.
[ 1871 limen. II K. 3nJ Binh. 'I,C" Vietttain CmmlT) Report. lndtl,trial Development
Planning by LocaIGo\'ermnent: C1ust<:r-Based DeHlopm~nt Approach PoILc}
Sen1Li1QrLtlyear 2007.
11Sgl LR (Lloyd', Register] 200S. HorizvnsJechL1ieal New, anJ Information for (he
~lmi~c lndustry, lS'ue 14. Lond0n
[189J Vlrusili" Ilu,in~ss Group 1006. Vinashin IlmLness Group commercial presentation,
Uani,h t'''port Assc'cLatio~.l\ v~ilal1le,WW\\,Jcg~.d~
[190] VDF (Vic(rlam D~v~lopment forum). The Second VDF-Tok}o Conference on the
Deleloplllellt of Vietnam. Japan Groduate In,tillLte for Polic} Studies, in 2006,
'Iok,o
[19 I] )l,IFl\ (Mini>tr)' of Foreign Aff3b) Vietnam, Vietnam: l'ew Centre for SLLccess.
Department of Economic Affair>. in 2007, I-lonoi
[ 192] Thu}'el1. V and Ha:lg. N.. IrrdustriJI Dnelopmcnl Pbnning by Local Go\'emmmt:
Vletll~m Countr, Rep(lrt. Cluster-Based De\elopment Appro,,,,h Polic} Seminar, in
2007,Tok,,0
[193] LIS For~ign CommereiJI S~I'vice _ HanQi. "ducation and Tr~;ning, in 2005, Report
h} At1leric~n Embass; in \'ietttam. \\w\' buv\l,a,\!0\'ivietttamien!l53,pdf
[19-<] Clarkson rcsear~h Servi~c. L1oyd's register Fa"pia}, Dee 2007

207
 [195] MPI (Ministry of Planning and Investment) Vietnam, The Five Year Soeio-Economic
Development Plan of Vietnam 2006 - 2010, Ministry of Foreign Affairs,
",,,,w.mri.gov. vn!plans,aspx?lang~2&magoc~ 123&machude~4
[196) VietNamNet Bridge The UK magazine Fairplay,
engl ish viernamneLvnlbiz/2008!O:JI773056
[197] www.vinamaso.netlnewg-events!shiphuilding-repairlvietnam-becomin~-world-
shipbu ild ing-o:iallLhtml
[ 19S] WSM (\1,'orld Shipyard Monitor), World Shipyard Monitor, May 2007, Volum~ 14,
No,S, Clarkson Research Services limited, London
[199] h~is, K, J,. Doughcrl" J. J, Lamb T. and Greem,ell, C. R. a~d Zimmermann R"
Product-Oriented Design and Comlruetion Cost Model, Presented at the 1997 Ship
Produclio~ S}lTIposium, April 21-23 1997
• [200] Birmingham. R .. Hall, S, and Kattan, R., Shipyard Technology
Strategies, Journal of Ship Production. Vol. j 3 (4), pp 290-300 in 1997
Development

[201] National Shipbuilding: Re:;earch Program NSRP Design for Production Integration:
Course Note, in 1993
[202J Carreyerte, J., Preliminary Ship Cost Estimation, Royalln~titltle ofNa"al Architeds.
pp, 325-246 in 1977
[203] llenford, 1-1..'I he Practical Application of Economics to Merchant Ship Design,
Journal of Marine Technology, January. pp. 51<;1-536in 1967
[204] [lruce, (] and Clark., J., ProductivilY Measures a., a Tool for P~rformancc
Improvement, The Royal Institute of Naval Architecture, pp. 299-30X in 1993
[205] Chia-Chan, C. and Pao-Long, c., lvlodellng and An~l}sis of Labor COSt Est,molton
fur Shipbuilding: The Case of China Shipbuilding Corporation. JSP, Vol. 17 (2). pp
92-96 in 200 I
[206] Cragg,. J.. Bloor, D., Tanner, B. and Bullen .. H" Mcthodolagy Used to Calculate
'Ka,al C ompensJted Gross Tonnage Factors, Journal of Ship Productian, Vol. 19 (I),
pp, 22-28 in 2003
[207) Volker. B .. E\~luatIOll of Com pet iIi, ene,S i~ ShlpbL.ilding. HANSA, Val 13--1,(9)
pp. 22-27 In 19~7
[lOS] I.~mh, T. and Helboy, A .. A Shipbuilding Productivity PrediclClr. JOLLm~1of Ship
Pr"ducl1on. Vol. 18 (2), pp. 79-85 in 200"
[209] Lamb, T .. Worid-Clu'S ShipbLlLlde'" Their Prod\lctl"I} and Use of Lean
:Vl~nu[:lCturing Prinei pb, http://\\',,w.sname.org/AM200]/papeI3 .pdl.
[2 I0] Stol'ch, R. L.. Clark. J. and Lamb T .. Technology Surw} of U.S. SllLpyarJ,-1994,
Journal of Ship ProJllctian. Val, II {3j. pr. 133-148 in 1995
[211] Ahmad, M.R, IOstimation af snip productiCln man-hour" Alcxandria Engi~ccring
Journal, Vol. 44. NO.4. July 2005
[212] Relative Labour Rate Different Shipbuilding l'~tions around the World: India
Defence revie", in 2005
[2 I3] Reran of BAlM. Rcrniltance Send by Bangladeshi Labour warks in different
~ountries. Article publL,hed in Daily ProthoLTI.Alu in Dec IH. 2009
[214] Willis. R, E. A. Guide to Foreca,ting for Planners & l\-lanager" Prentice Hall. 1987
(215) :\lerchant Ship Completion by Principk 1988-2003. Fairpl~y ofLloyJ Resister, UK

20S
A EXURE •

109

. ,, .
•
 ANNEX-A

Questionnaire for Employcc/WorJ~er of Local Shipyard for Job

Analysis

(Employee!\Vorkcr field Survey)

(This Smvey is to h~lp lb m:lke sure that your \ Lew,>ar~ incltLd~d when \\(e look at your lob.)

Tick or giv~ answer Dak'

General Information:

l. Name: .." .."." .

2. Name of~hip:ard:
J. Addr~ssofShlp:md:
4 J()b Tille:
5 Type ol'Ell1plo)'m~llt:
6. Dlll"~ti(lllofEmplo\'me11l:

7. Educ"t;on:

1=:1
[)ipIOj~l:1
D
D
D
Phd D

0 :\00
"
9
rraLll;ng:

E.,p<r;,-nc,,:
lCS

[ lYe""
10 Ti~inin"O

II Lnnguage Ski!!: E n,,-Ii,I.-----l Olherso

- ~
I" Any Spcelali,alion: Yes i\1l0
D
13, Iv1Jrit;l1 StilUS
D 1'-.'00
14. remalc 0

210
 15, Age(Years):UnderZcCJ 2\-]0 03\-40 041-5°051-600
61-70 D 7\ -80 0
16. Position in the organiz:ltion (in the liL"Sl appointment): .
1 ). Position in the org:lni~ation (al present)- " " .

Rating':
4 = Good
3 = Satisfactory
2 ~ Needs important
1 ~ Does not ~pply

\Vorl{cr/Employcc Job Inform~tion:

\Vhat i, your "pinion, u1": G'HJU Satisfadury 1'\"",1< Dues nul

, Abulll yo\ll' Job 0 0

i III I'ro\ ement

0 "1S
• Ahout :. Olll A1'1'01tll1"~,,l 0 0 0 0
) About your Ell1plo~-c~ 0 0 0 0
, Abum Job En\"Lnll1111Clll 0 0 0 0
r-'
),
Abollt yo"r ')"Imy
-' L-J 0 0
" About your \Vorking TlllK' 0 [] 0 0
•.. About yuur Well'are 0 0 0 0
1. Aboul your \\oli, micl11 [] 0 0 0
) About your ()th"r [kn~rLt 0 0 0 0
w About yom Me'ULea\ Fa~Llilie, n 0 0 0
" About your .lob S"k:y U 0 0 0
211
 " About your Per,onal Safely 0 0 0 0
D About working: environment 0 n 0 0
" AboUI Di,ciplinc [0 I[ 0 0
" AboUl Employee lkhavior 0 0 0 0
'" AboUI your Belongingnc.\"
Organl7.aTiOil
tn ,i 0 0 0

" Aboul your P~rsonal

SatisfaC1Wl1
0 0 0 0

" About -]raimng 0 0 0 0

" About Labor Un;oll 0 0 0 I,
'-j
00 Aboul Ivb:1agclllcn( L~ 0 0 0
" 1\b,'LLl G(A"l'tlIll~LllRuk.\ 10 0 0 II
n Abo\lt Receiving Payment
0 CD 0 0
,
3
Your S"lo,,' , 00
'.Iud 0 AbOLl[
right D '100

I;ttle 0
, "",e
0 0
-loCI

D
3 How to rel"ILWLlL
Iho jl,b Al>~ltl "J 00
"itl1 ,11'1,,,o,d dit-[-,,:<,Il righl e~,,'
m,eIl il\~l;. /"qLLirll1~1l1

c5 Are ,01L going!O c()n(;lltLc' the JClh'" Yes 0 No D

" Arc you looking i',llel Opp"rLU:lil,-" y~, D N" D
-'
T
Are YOli going to cllaLlgc ;.'Clurpre","'l
Prof",siol1?
Yes D Ko 0 Do" "oj "ppl)'
D
.n Do YOllh~\'c any Oppol'tuility to gilT
snggcstionicomr1:l in?
y£s
0 i\"" D lJo<s not '1'1,1;

0
30 Ar~ yom immcdiJw boss Or Sllrc'n-,'or y~, D 1'\0 D Il"" not ,ppiy
D
cl~Jrly (k;;CL"Lb~iOW jol<'

212
 '- •
'" Are YOlisatisfied about your incommg future? Yes 0 No 0 0,0> not 'I,pl;,
0
" Do you enjoy your "'ork? Yes 0 No 0
" Arc you happy abolLl your present ~ta!\ls? Yes 0 N" 0
B Do J()U haw J"b Security
Yes 0 N" 0
34 Docs the organl/ation
Carrier Plan j"r workd?
ha\'~ maintaineci \ Cs 0 1\" 0

35 Do lhe\ gl\'e ~Il}' punishmenl

Yes 0 No 0
or rewaru fClf
your perform~ncc

" Do YOllfeel th,,! your organization "iii go

ahcad~
y~,
D No
D

Ple'lse add any comments bdmv:

Thanks for your hclp/ans\H'rs.

Sign"t,lI~:
Dale:

213
 ANN'EX-B

Questionnaire for Employee/Worker of Local Shipyard for

Performance Amllysis

(Emplllyec!\Vorkcr Field Survey)

(Th;s Suncy " to help u, mahe Sll'-~th,n :""T "'CW.'ale included whell \\~ look at the comses)

Tick or gi"e anSW"r Dale:

Gcncrnl Information:

I. Name: "..".."
2. Name of !Ship: Rnl:
3. Ad,lre'>ofSh'p)ml!:
4 Joh T,tle
5. I ype of Employ ment: l'l:rmanel1tD 0
TempOTar~ Cas\ialD
D\ir~(ion ofEmplo\"nlcnt: ,vlonlh 'Y ~mO
7 Educm,on:

School 0
[)'pl,llL1J 0
D~~lee D
r,.!astL'rs 0
Phd D

8 Training:
o
9. Exp~ri~nc,,: Ivlonth/Yeal";
o
10 Ho" : Ol\ lean, yuur Profession/Job. sdrD TminingD

11 L;ll1g\luge Skill: EI\~I;sID 0

Otht'r~

11. Any Speci~li:w\i()n: Ye,

o N°D
13. 1\-1clri,ai SlOtHS:
o "00
14. Sex: M,li~0 Fcnmlc D
214
 15. Age (Ycal's):Under20D21-3o D 31-40 D 41-50051-600
61-70 D 71 -80 o
1G. Position in the organiT.a(ion (in the first appointment):

17. Position in the orgill1;Y,alion (at pres em)

Financial Information:

,. 1"
Is it \"our j" 10\1':'
19. I-Io\\' frequenll:' YOllchange organLZatio;l~
20. lvJcmlhly in<:()mcat present p'''Llion (ill thousan,l Taka): 3-~ 0 05-10 0
21-30 0 31.-lCl D 41-50 D 51-GO 0 60-70 or abClvc::J
21 No ofpcrson(s) depenu, on your income induding yO\\: D
22 How man, ho"r,'day you \\olk~
23. I-lownwny hour/week \'ou \\mk')
24., How maLlYC1:lyilllC'l1lh
)OU work?
25. HOWlllall} d"y/yearyoll "-D!k~
26, II,,\\' m,\ll) l11l)Llths/\'car ,1""Llh- YO\l remaLn b~LSY'?
27. \\'h,,1 i, your USUJI i~comc;j\Our'?

28. \Vilat is :-(>\ 1r il;c-o",eida -;',

29. \VI",t i, )(lLLr ;,.coale/week-'
30, Wh"t is }0\l, inUllllC','L1\Ontll"

32. Do YC'tL!la,'e nny kind ol'b,n~nrOJ h'nlLs?

33, If,o. then hOI\" much in T"k,,?

34, Do:- Ollha,'e any other income~
35. Ifso, thcn hell' mUch LllTab'?

36 Do YOlLget (tn,' medical/oth"r allo\\~m:e'.'

38. Do you l'ccei, e am oth~r 'wi fare by the ol"g~~i7'J.tion')

39, Do yool' organiz:<tio[l l1lJ!,;~ any c"mCr pbn for yon?

40. Do ,'OLLrc,ei'e all' TraLll'\l~ b, th~ Olgntliwtioll~

215
41. Doyouhavejob~ecurity?
42, Do you like Ih,S organization?
43. What is your h,ture plan (stay/q"it)"
44 Working envirorlment:
45 Job environment:
46. Housing: Urban 0 Rl"ui DOwn 0
J-JOlL.,e
Relati,'cs l-lo\l~eD OthcrsD

Please add any commenl~ below:

'-h~mksfor your hj::lp!all~\H'r~.

SLgnJlllLT:

216
 ANNI~X-C

Questionnaire for Local Shipyard Owner for Performance

Analysis

(Interview of Local Shipyard Owner)

(This lnte"i~w is t,) help us m"kc sure thot }o"r "Ie\\'s 0'" included wh"" "e look "Ilhe CO""")

Date: .. ,.. ", ...

Gcncralinforlllation:

1 Name'
2 Name of Ship: ,ml: , ....
3 Address of Shipyard: ... " ..,', ...
4. Position:
5. When Yl'll ,tart this Shipy"rci
6. lomt Ad"en;ur~: Ycs
o
8 FUInil\' Initbil\e: Ycs o
7. Educatwn'

School
0
Diplolll;l
0
DC'~l,C 1=:J
~IMkr,
0
P htl 0
8. Technical EducmioLl: lCS 0 I'\oD

9. Prenolls Expel"iclK"~: Y l', [ I NcO

10. How, ou start: (HL' husin"," Self 0 Othcrs 0
11. Languag~
Skill: fnglislO Others 0
12. Any Speeialjz~tion: Yeo;
o
13 "larital SWillS:
o No o
217
14, Sex: Ivl;ile 0 Female 0
\5. Age
(Years):
Under
20 21-30
031-40041-50051-600
61-700 71-80 0
16 No ol"lOlal p~rtncr: ,..,... ,.
17 Starting Capiwl (in rJku):
18. Pre-,ent Capital (in Taka).,

Local Shipyanl/Busint'ss Inform:ltion:

19. Year in FSlabiLshc:cl'.'

20. Year in Production"
2l. Type of Ship: arel: N~w bllildintD Both 0
22, Cap;lQihly:
NoofYards:
Size of Yads:
Capacit)iYar,l, (m))W n.
Design and bllik!i~S: pull 0 PanialD
Other 1-'"cili;ie,: Full 0 Parti~l 0
23, Fin"n~i~1Self 0 L",mo o
Towl manpO\\Tr:
Tedll1ical
,\elministl'mi, c:
Others:
Pernm;\~Jl(:

Temp",,,ry:
Towl:
25. L"bori\\'ork~r(in N\lmb~r).

Skilbl
Senll-,ki Ile,l.
UnskLlkel:
26. Pa"m~nt pal\~m:
 I-lourlyD DailYD W~~klyD Monthl} 0
27. Usu"l Payment for diffcrent t}pes onabor (in Taka/Bour).
Shlled:
Semi-sklll"cl:

Un~killed
29. USllaltot,,] \V()rklllg hour/clay (in huur)
30, USllallOlf\1 work;n~ hO\ll'lv.eek (lll hour):
31. .'\ny Labo!' Union" Yc, D N0D
,"'")' Labor Complain l-hnJling Sjs,cm~ Ye" 0
33. 130JlLls/Othcrbencfit: Y~s I I No 0
34. Any lvlQtlyational System: Ye~ D No
35, .An}' P,ll1i5!mlel1liRe\\~rcl Sy'lCJ'1: Yes 0
36, AnyC<mierT'l.l11ning Yes D No 0
37. Anv Emrlr,)"c~ \\'l'1f:\TC Svs\cm: YesD No o
38. Job S~~llrll\' PIaLl: lcsLJ No 0
39, Labor Tmn0\'C!' l'ak (In percentage): 0 %,
40. ao"t Rllk~iRcgulatl(ll'" r'b~ D Difficult D
41. Implement or C,ovt RlI1csiRegula(ion, E'-CelienD GooCO SatDPoor 0
42. Govt o,nb,icly' Nccdd ImmdLatcly CI Slo\vlyD ?\Ol-11e"cled 0
43. Rcvicw of (Jewt RLlks"R.~g\lI,ltion' lmmecllalely 0 slo\\'lyD NOHledD

44, Ship B\lilclill~ "1Qnit,,,illg' E,c"l'llcLll 0 Good 0 S,,[ 0 Poor D

45. Performance(lfl)OS E.~cclkmD Good 0 SmD POOl' 0
46. Y 0\11"comlllcnt on 131\\'rA: E~cellenD (Joex:D SatD PoarD
47. 'lyp~s of Ship "'l'\V-build in thi, Shipyard
48. Last ,'Lllr Sh,,, Nc\\-budJ (in no):
49, Types of Ship Rep"ir in [I1i, SI-upyard:

50, Lost yenr Ship Repair (in no)'

51. AnmLlTurn-c',.~r 1m Cn}r~Taka):

Or)!anintic>nlS in Pr"lil Ycs 0 C'°D

53, Worbn~ eL1\'iwL1l11~L1lE.'-.Lc'lIemD Good 0 Sat 0 PoorD
~19
 54, Job en\'ironment: ExcelientD Good 0 Sat 0 Poor 0
55. Any futtLrcTraining Plunning: YesD NoD
56. Any ["tme planning for employee Motivation: Yes D [\00
57, Any future planLlingfor employee Welfare: Yes D [\00

58, FUlllr~PI"n. Expansioo D DOwlloillng 0

59. StandanlofI.ocal Lahar: LxcclkntD Good D Sat D r<QJ
60. QuaIll) ofI.ocal \Vork: E:-.ccllentD Good 0 Sat 0 Poor 0
G! Performance of Local Shipbuildd: F.'-.cc!lcntO Good OSal D Poor 0
62. Shipbuilding Qualily. E,cc!1cnl 0 (joo0=:J Sat 0 PoorO
63. Stand:lrd of Local Ship Sun'e): I':xccllcnt OGoodD SatO PoorD
64. Standard of S\lp~l','i,or)' hillel' Exccll~m 0 GoodO Sat D PoorO
65. StundJl'd ofLoc,,1 ShlP Inspection: Excellenl 0 Good[::J SatO p,-,,-,O
66. ]-J ()\\ m,IllYLocal 511 LPi melsalrodj gained IlllernatlOnal Slandard'! 0
67. How man)' AddilioLlal Sll:>WJrds\\,ili h,' "aincd Inlernational Stand;l[d? 0
68. Local Shipbuilding PotenlialllY: E.,ccllcm DGoodO SalO Poor D
" 69 Fulme 0(' Shiphuilding IncluSll'YofB~ngla~~,I:<)(]oodO SatO PoorD
70. P~r[(mm\l1ceof local Ship':>lIi!dil~g
COIl'ul1ancy:GOOLD :SaC] Poor, I
71. Vic'" of jlllcJ'll~nion:l!Ship 0\\ nne Good! I SaD PoorD

72, EffeCI01'\\'01'1::1
R~C'~ssionn'1 lOcal SI"phuJiding Industry?

73. (' ummc'nl on Shiphui!di LlgPl)l~ntiJiity/S[renglh of Bangla,ksh'!

74, Comlll~nt on Shipbuild ing Prn~pecliOpportlinity of 13Jngbdesil'!

75 Wh"-lare the mal11Prohknw'\\' ~akn~5SCS

of the l.oeal ShipbuiIding Induslry?

76. \Vhat are lile FlIHIl'~eh'li kl1g~5/I !lIeut' ()I'the Local Shipblllldmg Industry?
 • -
78. Any Suggestion/Comment on DOS?

79. Any Suggcstion/Commenlon B1WTA?

80 Any Suggestion fot' Local Ship Survcy/illspec!ioll~

81. Ho\\ Local SillP Building/Repairing Fadll!)' can be lmpro\ cd?

82, Any Suggestion for GOVCll1nlenl~

Please Jdd any comment, helm,

Thanks for your hclp/ans" er~.

Sl~naturc:
Dale

221

•
 ANNEX-D

Questionnaire for Ship Consultant of Bangladeshi Ship Design or

Construction or Repair FirmsfYards for Performance Analysis

(Interviews of Ship Consultant)

(This [nlc,vi~w i, to help LISmake slire tha(your "ie'\< ale included wkn we look"t the courses)

Date:

Genera! Information:

Name: " ..", " .." ..,..

2. Namc ofCon"Llll~n! F,rrn
] Address of Fll1ll:

4. rositioll:
5. Whe~ you start this I'inn:
6. Joint Atlvenlure: Yes
o l"°D
R Self.TJlllily initiau\'c, YcsD l'-':°D
7. Eclucminn:
Sclwol 0
Diplo111:1 0
l),gLW D
l\'I:l,lcr.\ I I
Phd 0
0 NoD
"
9.
Technical EducLltion
Pre\'iousE"p"n~nl"e:
Ye'S

Y~s 0 NoD
w. H()w ,'OlL 'lar! cOllI' business, Self D OthmD
11 Li1ng\l~ge 51-:111: [[]giLSIo Olhc'r~D
12. Any Sp~cjalinlllln: y~s
o N°D
13. l\lariwl StJ1\l,: No 0
222
14, Sex: Male 0 Female 0
15. Age (Years): Under 20 21-30 031-40041-50051-600
61-700 71 .gO 0

16 No of IOtaI Emplo}'ee
17 Starting '\'lanpower (i~
no)
18. Present Manpower (in no):.

Business Information:

19 Year in Esmblished'!
20, Year in Lxpilnsion~
21. Type ofCon,ultanc} Ncw b\lildi~gO RepairO DesignO All 0
22. ConsLLllancyPerformance:
No of Ship Design.')"ar:
No of Ship D""gn "]lce sl~l'ting:
No (,f Ship Repairl\"(~Jr:
'\0 ot' Sh,p
. Repair sinc" 'Lartin".:
.
l\'o oiShip BHilcl/)"L'Clr:
No 01 Ship [Juilo. "in," 'tartin,;
All) '\D1" F;lcilllLC:,YcsD
o
Design and building 1'ull0 hni"IO
Oth~r F~ciliLlL' Full 0 Pani"IO
23. fil1anci~l: SdfO LoanO Both 0
24. Totalll\~npo\\.:r:
Techlli~QI:
l\clm mistrat i"C:
OU,en
Perlll:!n""t
TCll1p0r~I'Y:
Toml.
25, Employee (in no):
Skilled:
Semi-skilled:
Unskilled:
26, Payment paGel'll:
HonrlYD DailYD Wcek]~D MonthlyD

17 Usual Payment for di n;',cn! types of labor (m Taka/Month):

Skilkcl:
Semi-sk,lkd
Unskilled:
29. Usual totBl \\orking hom/day (in hour):
30, USll,,-1tolal ,,"orking hour'\\~~k (in hour):

31. Any Labor l.'nion'! Yes D l\'°D

AnI'. Labor COlll]JbiI11'laI1Jlin~
. S,'stClll:
. NoD
33. Bonns/O!he,b~nelil y~s D No D
34. Any /vlotj\'ational ~ystem Ye, D No D
35. AllY P\lnishm~nt/Re\\.""i S,'ltcm: Yes D NoD
36, A~y CarnerPlannLllg' Yes D No D
37 Any Empio",'c'. \\ df:II\' Sy Slc'lll y~s D No D
3~. Joh ScClllil, l'bt,- Yc'sD I'D D
39. Lnbor'j \lmcW~l' l';lt~ (i" pc'L'cc'magc): I I %

40, Gent RlLle,'Re~tllaLi()m Eas~ D Diflil"tLilD

41. lmplemenl of Go\'t Rllk,,'ltegulmLc)llS: Excellenc::J Goo'-C] Sm 0 Poor D

42. Go\'t SLLhsLd,'
Nc~dcd: Immediatel: 0 SlowlyD NOl-need~d D
43. Re\'iew of GoY! Hlll",iR"~lllalion: Immcdiatdy D Slowl}D Not-needD
44. Ship llniidil1" "IOlli(,-,ri",,' r"cl'1knl D Co,-,d D Sal 0 POOt 0
45, P~tformanc('ofDOS: bcell,'nlD Goocl 0 SaID Poor 0
46. Y Ollr cOmm,',,1 On 8]\\''1'1\: L;-;cdienD GuodD SatD PoorD
47. 1\1111\']
THrn-O\~r (in er,>reTaka);

4". Organizmio;l is in Pl'ofi(: l\oD

49. Working environment: ExeclkntD Good 0 Sat 0 PoorD
50. Job environment: F.xcellcmD Good 0 Sat 0 Poor 0
51. Any future Training Planning: YcsD No D
52. Any fu!ur~ planning I(lr employeQ Motivation: Yes 0 No 0
53 Any future planning I()[ employee Welfarc: Ycs D NoD
54, hlt\lrC PIal]' Expansion 0 Downsizing 0
55, Commcn! about Shipbuilding Potentiality/Strength of Bangladesh'!
56 C()lnm~nt about Shipbuilding Prospect/Opport\lnity ofBilngladcsh~
57. What are [he I11JinPioblenls!\\:eaknes, "rtlle I (leal Shipbuilding lndnstry~
58. \\ hal are Ih" l-'ulurC Ch3lkngesfrhreats of the Loca! Shi pbuildlLlg Industry?
59. Any s\lggestion for Ship Supervisor} Panel:
60. Any Suggestion r"r DOS:
61. Any SuggestLOL1lor RIWTA:
62. Any Suggestion for Ship StLrl'cy/lnspcction:
63 Fh", Ship 13uildillg1j{cp.lirillg F,,,ili!:' can 1l11pro\ed
66, Any Sugge;,tion t()r Government.

Please "dd any comments bdo\\':

Thanks for your help!~nS\H'I.S.

Si~nmurc:
Da!~

225
 ANNEX-E

Qucstionnairc for Ship Surveyor or Govt Official or Academician

or Expcrt or Stake-holder for Local Shipbuilding Evaluation

(Interview of International Ship Surve;;or)

(ThIS lntorvLow is (0 b(lp us make ,ure that '"om "i.,,, "r. included "hen we look at the course,)

Dilte;

Gener:JIInformation:

I Name

2 Name oI"the Organization: .. ,', ... ,', ... ,', ..

3, Address ofOrgaLll,ation (LQc,)] Office):

4 Position:

5 When :(HLjoin in your rtpi"'iLlILlll'nl

7. Educa(ion:

5<:hool 0
DIploma 0
l)eglC'c I ]
,"'!a.,leTS 0
l'iJd 0
Technical Ldllcmion: Yeo 0 1\'00
9 Previousb:p,ritllce: Y~s 0 ?\00
II Language SkllL Englisic Odlcrs 0
\ 1. ,cs I I 1\'00
13. Marital Slall"; hsO :";0 D
14. SC~: ,,!aiL 0 Fl'mal~ 0
1S. Ag~(Ycars):L;ndCT1001J-30
031-40041-500 51-600
61-700 71-SO 0
1i\-7\ 0
Bnngladcsh Shipbuilding Informatiun:
126
16. Type of Survey: New buildingD RepaiD BotO
17. Your Sur ..ey Performance:
No of Ship Repair Survey ,\ear:
No of Ship Repair Survey since starting:
No of Ship Build Sun'ey iycnr:
No of Ship Build Survcy since starting:
IS. Problem laced by you?

19 Any Suggestion?

20, Go\'! Rules/Regulations: EaseD Difficult 0

21, lmp1cmcnt of GO'"tRulesiReguliltion~ ExcellenD GooD SaiD Poor 0
22, GO\'t Subsidy i\e<'lkd: Immedialely D Siowl} 0 Not-needed 0
23, Renew of Go,'t J{\l1cs.'Regula,ion:Immediatcl} D SlowlyD No!-needD
24. Ship Bmlding Monitoring: E:-;celknt D Good Sat Poor
0 0 0
Perfl>rlnanceof DOS E.,c,lIen!D Good 0 Sat 0 roor 0
26. Perlorlllam:e 0 f DI\\' 'IA: ExccllcntD Good D 0 Poor
Sat 0
27. \\ orkill; em'iL'c'nl1l~lllF,cdlel1!D Good D Sat D Poore I
28, 10bel]"ill'nmcnt: [xcdkn!U (,ood USal DPoorD
29. Necd all\"Eml'l",'e~ T,aining' Ye,O No 0
30, J\'e<'dan\' employce ,,"'lOtL
,'ation: Ye,D No0
31. Need any employee \\'clfm~: Y~sD No 0
SW.ndal"d
of Local Labor, E"c'dlclllD Good 0 Sal 0 Poor 0
QLmli~yofLoeal W,,,L E,cdlemO Good 0 Sat 0 POOl' 0
34. Performance (,fLoCJI Shipbuilder: ExceliemO Good DSat 0 Poor 0
35. Sb'pl1llihling Quali[y: L,cc1knt 0 Gooclc::J Sal D Pom'D
36. Standard 011 ,'cal Ship Sun e, or: E~e"lleL1t 0 GoodO SatO PoorO
37, How llulI1,'l,oC.11ShipYGrdsJll'eGdygained International SlcmdarJ? D
38 HO\\ m~I1,',-\~ditioml <;hipy~rd,"ill be gJilled lnternatlOnal Standard? 0
39 Fut\lre of Shipb\lilding l11dustn'of Bangla~e:;h')GoociD SatO PoorD
,r
--'

•
40 Performance of local Shipbuilding Consultancy: GoolD SuD 1'0°0
41. Vicw of International Ship Owner: GOQdD S,O PoorD

42. EfTcct of World Recession on Local Shipb\ldding Industry?

43. Comment on Shipbuildmg Potentiality/Strength of Bangladesh:
44, Comment On Shipbuildmg Prospcc\."Oppnrl\lnily of Bang:l"desh~
45, Whm mc the main Probkms/Wcakneso~i 01 the Local Shipbuilding lndu,>try?
46, What arc the hnure Ch31kng~,rThre"L\ ()r the Local Senpbllilcling Industry?
47. An) S\lgg~'lL(m fur Lo<:al Ship Supervisory Panel?

48. Any Sugge<;llOn/C()nm,enl On DOS?

49. Any Suggfslir)[l/Commrnl OIl!3lWTA?

50. Any SLlg~cslio[lfor Locnl Ship Sm\'e:/l~sreclL"n?
51. How Local Shi p Bu:lcling iRepJiri I1g Fae iii lY can be lmpro\'ed?

PI~asc add aI,,' COJ\lments below

Thanks for YIHlI" help/answers.

Sign.ll\lL"e:

Date:

228
 ANNEX-F

Questionnaire for Foreign Ship Buyer for Bangladeshi

Shipbuilding l)otential Analysis

(interview of Foreign Ship OwnerlBuyer)

(Thi, I"te"i." is to help LISmake SliTe thai )"'" vi~ws are Lneluded when "c look .tthe courses)

Tick or givc answcr Oak'

General Informntion:

1. Name: " .." .."." ..

2. Name ot'the OrgJnization:
3. Add,,,,s of ()'ganjzaljo~"

4. Position:
5. When yO\! ilJ\"c slarted your shipping hu"n~s",
7. Education,
Sdwol
o
DijJlon',~ 0
o
o
l' hd o
8. 'lechnical [dUCJl;OLl YcsO i\'oO
9. Pre\ iOlls ["p~ricncc, lcsD NoD
11. Language Skill. Enghsl-D Odlcrs 0
12, Any Sp~~jaljz"tj()n: YesO l\oD
13" Manlal Stalu" Ye,D l\oD
14. Se;;: "lakO Fel1l<,k 0
15. Agc(Yearsl:Utlckr20021-30 031-40041-50051-600
61-700 71-~O 0

Bllngladesh Shipbuilding Informlltion:

229
16. Sl:mdard of Local Labor: Ex~el1cntD Good 0 Sat D Poor D
17. Quality of Local Work: E:-.cellem D Good 0 Sm D Poor D
1g Performance of Local Shipblliltler: Excell~nlD Good USa! 0 Poor 0
19 Shipbuilding Quality: Ex,dlem 0 GQ0dC:] Sat D PoarD
20 Standmd of Local Ship SUf\e\' Excellent DGooJD SatD P(NrD
21 Stcll1uanlofSllpcr,-iso[} hillel: Lxccllent 000°0 SatD PomO
Sl"CLd"rdof Local ~hi]J 111'r~ctjon: [xcell~nl 0 GoodO Sat 0 1'000

23. How many LClCJI c;bip,'ards all'carl, g~iL1edinternational Sland",,]? 0

24. How mJn, Addnional Ship:;ilrds will be gJineJ Interna(ional Standard? D
Locul Shipblllklmg Potcntialil}: toxccllcnt DGooJD Sat D Poor 0
26, GO\'1Rules/Regulmioll" r.asO Dillicuh II
27. Implclll~1l1of GQ' t Rlll~,iRcglllatil\n,: ExccllcnD GoO(D SatDPoor 0
28. Go\'\ Sub,id, Needed Immediatel; 0 Slo\ylyD l\o[-needed 0
19, Renew of G()\'l Rules/Regulation: II1l111eJ1atel; 0 Slo\\'I)D NOl-necdD

30 Ship Building !\1()nil"'Ln~:E,cclknt 0 Good 0 SClt 0 Poor 0

31. PeriormaLl(:eo!"DOS: bcclkntD Good I I Sat 0 Poor D

32. Peri"urmancc l)flll\VT •.\: r,ccllcntD (i,)o,1 D Sa,D Poor 0

Ship)Jrd \\"orKlng 1-'nnr0nmcnt: E,celkL1tD G;Jod D Sal I ! PoorO
34, Ship)ard .I,l], ;\l\'i,onmcnt: F.'-.c~lklltD Goo,1 0 SatD Poor 0
Nccd any Employee Trmning: YcoD :'\00

36, Necd flU)" Enlplo)"cc ~ h)li, Ul'vLl, YcsD }::v D

37, N~cd any b:l>,loyee Wei rare: Yc,c:::J No D
38. Fulme of Sillphu; IdLllgIL:cluslry()t"Bangladesh'.' Good 0 SaiD PoorD
39. P~rl(11'lll"nce()f lOcalShipbuilding Con.\tLitaHcy:Go0rD SaD FooD
40 Vic\\' of Intcrnatiol1al Ship 0" nCI": GoodO SaO PQorD
41 EflcCIOf\\'orid RCCC5si,'n('L1Local Shipbuilding Im!u<;\r"'?

42. C01:1Il1CIl1
on ShiphLiIding PUlentinlity/Strenglh of Banglmksh'!

43" ConlIn~nl on ShLpbculding ProspCC[iOpporlun i10"[)f Bangladesh?

230
44 Wl1al me the lll~in Pl'oblCll1s/\\'e~k11E:,sL'sof the LOCJIShipbuilding Industry?

-15. WhJt arc the FUlur~Ch~llcng~s'Tilrc,l1sof the Loc,l Shipbuilding Industry?

46, Any suggestion for Loc"l Ship Supcn isor)' l'~nel~

-17. Any Sugge,tlOniCon1meLll on DOS?

-18. Any S\lggcstion'ColllmCllt on B1WT..'\~

49, Aay S\lgg~51ioll for Local Ship StLJ'\c;','Jnspcl'tl(Jn')

50. How Local SLip Building/Repail'ing j."cili(y c~n be impro\'cd?

51. AllY SuggcSlLon fur Cio\ Cnll1CLll'.'

Please add any comments bdLl\\',

Thanks for your hclpJanS1H'rs.

Signature:
Date

231
 ANNEXG
LOCAL SHlPYAIW EVALUATJON COLLECTLON FORM

'rah 1<'1: C" Il"hi Iiiv uf I ,oc"l Slli p"a rd of B" "1:1"dc,h (i II tcrn" or Track Rccunl 0r 1\cw .';11iph" ild iog Record)

Sl l\amc of Type Owner of the River! ;\O'fat Prillciple Dead Clas~1 t\pprn Duration COlltrae( Other
No the \'e,~sd of tile
Yc"d
Vcssel with
Addre" &
SCII
genng
erild Part inll an
"f (Mi\I) ,
Weigh Reglll
atory
x'X,of
Foreig
of Con~t
(mm/yy
Price
(Taka)
;

I Contact no COll Lo"X['I",X (TUIIII Cutin

"
,,,
Itrn BXDXd en 011) elite cm"!,,, JIll1l!."Y)
ctio , I1t'llt
,
I .
," I
I I
;
,
i,
I I I, I ,I I I
---,-,,
I I
I
I
II
I,
I I I I

L__
I
-
I
-=1 I

-~_. L
.

2J2
 T"hlc 2: Capabllitv of Local Sh ipvard 01 nnnglades 11(in terms of Sh ipbuild illC Facilities)

Shipyard at a Glance Human Resou]"ce & Infrastructure & Construction Facilities Miscell
Personnel Facilities aneous

Name& ~\'aval I Design Design

addrc_" of ,\rl'!,itec1
(:'-io_ • i l'ncililie~ office
I;,~ililies
Shipyard I
! l~d\lcMion, (.\L,chincry
Yearofsl"rling I I Tr"i"ing S, &
nf Production Il':xpcrknc<') ,, 'l L -
I;q~lil)111~'
, ,
, Design
lIead ofOrg & ! ,,
I
",Ii",are
Contaelno , """,lable

Owner.\hip
i ~lnrine I
\Vehling AUlO11\atic\Vddin~
,
I,
StatUloflhe I::nginccr . f"dlilie, TIG Weldin!?
area {:'-io, (Types & MIG'vVeldin::; I
Ed"eali"", No ofSel) Submerge Weldmg I
Total no of Training & Maoual/ Arc
ves~cI huilt! Experience) Wc1din"•
Glhe", Welding
Total Priee of Mechanical Cutting CNC Cutting
vcssel hllild 1':ngirH'("r £i:lCililies M,lchinc
(Types & Auto Cllllmg
--' Area of
(No,
Educ"lion, J\'o "f Machine

l:lJ
 ~- I
i\hdli
oc) r>1<lmtalCutting
Training & MachllK
Shipyard (Acre) Experience}
Area of covered
Shcdfllall

1\1ax cnpacilY &

nO of ,hip~(lUll
i- f.kclrical &
Elccrrol"C'
<;urflIc
Prep"
I 01\
cao he
C(]ll~trlltted at a
\ ,",'"''''
(/'io,
,
\ Fadlil
(Typ('
~,' ,,"0 t ;"''-

lime
I,
I
,
\

t
l'''~'''''." I....:-.:...-~
:ation,
ning&
I (Type & i Otllcrs
nkncc) "'0 of
:\lachinc) ,
~ \ l :\'lachil1\' Lathe
ee-
\ Ilip'oo'" I Shop Ml1lin!L
l\'1ax length, fi.ng,lI{'cr &
breadth & draft l' orClnall
FacilHic~ ~!~cr
Shcann~
(Type &
i of ship which
, (No, No of ~~l'in~lJoring
«Ill be l~ducalion, Madlin,,) RoHer
constructed Tr:,illillg &. tv\ulti craft
.,xperi,']]cc)
JJ,~ralLhc Prcs~
-~
Plate Bcndl\le\
CullinL
Olhcl~

...l ' \
L-------

,'"
 - Electric Ekctric Test
Service for Qualify
which facilities Control Shop Eqnipment
of supplying! Personllel FaciUtie, EleLlmmcs Test
man IIf:lCluring (No- (Type & E:quipmenl
arc al'aiIabJc in Educatlnn, Noof Circliit BrC;lkd
the )'Hrd. Trailljll~ ,\;, E'I"iprnc Test Sd
E'l'cricllcc) nl)
[lallery Test

I I 1f~1~!Pll1Cllt I
i
I
I,
l:,lCClncal
Madlinery I
,
,
Olher' t
,,
I
I Cnmpnncnt for i i Ship Wrighf '[ c~fjng I Radio!,raphlc !
which fnrilitie,
I I (i\o,
I ,
(Indudin I Ullrascm;c ! i I
,,[supplying
~lll'l'ortinl!,!
Edllcnti()n,
, Training &
I [\'IlT(IlT)
Il;lcrlrnl1lc~
I ~vlagllelie
i
rnnnII ["elll ring I I E~[leriencl') Shop I Others I •
arc J\'nil)lI,le in i Facilities
the yard. (Type' .""
•
Safety Ill'nUIl & Certifkr!
weltler (No,
. No)
e"rpen!,-
)'1 Timher
!'Ion""nl"l Saw
Vert,e,,1 Saw
.
,
Environmental
(SUE) Facilities I'ducatioll, Slwp Circ\ll<JrSaw
Training 8.; Iiadlitic~ I Timber Lllhe
Expcricncc) (Type ,~ PI,llncr/ Winchcs
No of Others
Machine)
Training Other welder Foundry _ CIS! Imn
facilities orthe (No, Shop Sleel Cast
shipyard Education, FacHitic., (lun Metal
Training 8.; {Typc & Alloy Mew]

D.~
 I Experience) Product) I Others
Provision/ Mechanic Pipe
Practice of (No, Work,ho
Panel-T.ine Edunltion, p
Assemhl) Trai"ing & F:lcililics
Provi,inn/ E~pfl"jcllecl (Type 8,
Pr"eliee of No of
Automatic r.-1aehinc)
,\.Iwmblv
I'ro"jsion!
Practice of
I
I
I Electrician
, ( .
I J' 0,
I Education,
Painl
Sh"p '--I
J
Block ,\"emilly Fucilit;,'s
i T,-"ining & (Type &
i.I';x]:ericnee)

I Carpl'l\1tT
No "I'
-_.-
Machin0 -.'
I'rome CND AlIlom,lIlc
, i
~(l & Capacity
or PllWH Plnlll (No, lk,uling Control ~V1aChjH~

No & Capacity
I Educntion,
.• Traillillg &
Facilities
(Type &
Allgl~ Bending
l\hchine
of Winch Experience) No or Others
!\lachine Machine)

Brochures! l':lilltcr (i'io, Plate/ eNe/Auto Control

Cntalogues or F:dllcalloll, Fr:lme Plate! Fr,"ne
1

the shipyanl Tl'nining & Straighte Slraighkncr

Experience) nin!!: Manual Plate!
Facilities FrarnG Straighlener
Otiler,
\Varchou Materi,,1

I I
Progrnmmcd Filter (No,
for cxpnnsion , F:dueatioll, ,e & Engine <t M,lChine
--------

Dr;
 Training "" Store Steel
Experience) (Name & raint
No) Olhers

Function of the 'Iaehinc Trolley & Power Trolley

Shipyard Operalor Jack Mallual Trolley
(ro.' 0, (Type 8: Hydraulic .bd,
ElIlI,'aliotl, Nu) Mccllanicalhck
Trailling ,""- Othel's
f:"(:lcril",,:e)
OHlcr' I Crallr &. Fork Lift Fork Lin I
Wil1~h & Vrhicl~ Vehicle
Opera lor (Typ" & Oiller'
I No) ~
I First Aid
; T(',ting
Per;ol1lld
i Medical
Facilities ' Minor 01'

~
(NDTIIH) I Safety
Olhcrs
Sarcly Gc~r,
C'I.\)/CAJ\I
Opcrator I ~
Facililies (Drcss, Sh(\es.
(~o, (Typc, & Goggles, (jloves,
Ed",:"li,,]), Ko of Helmet, }.!oise plug.
Trainitll: 8: Gears) etc)
I(xperien~e) Sarcty Metcr
Salety Lamps
I3reathmg
App~ralns
Others
Ship I'I,m Fire Complete F,rc
Remler (No, Fightil1g Control Sy,tClll in
Total Area

217
 ~
""0
, ~
"
0 ;-
~
c 0 0 5 ~ ~
c' "

1~" e:" -
0 ~
> -- ,
,
, 0 .,"
, "
,
.:
>.
, Z
,• ", " " "" " ,
0
0
.~
0

" ., , <" ,
0 0

"c v -< - "" • " < - "

0 0
0 2 0 " 0 '0 > 0

"
0 0 0 0
, 0 0 0
"
~c to ~ c"
0
, " "
c " 0
0 0

oc
c.
N

~
, " • "' " -
0

, 0, 00
0

"
,
0
0

- 0
.0
0 .,
" ,
0
0 0

, - ---
0
,,6 0 0
0 0 0
0 0
0
"'" ;::
0 "<
t (C "
0
, 0
0
"
" ","' e " "

--Ii '------
 ,

I,

~
"" I
~
0 I I
,
-"
"
," " ,"
~
0
""-
t • "," """
"
.0:
- " "t; ","
,~_,:::
"

= "_.-'-'1-~ ""
" ~~::i"
"
"
u"""
- "" -" •
" "
E
" "" ""
".," 0 .~
""
•
"
"
"~
"" ~l
,
""
""
<
C
" E 0 C

I
I
,--
! --_.
,

'0
"
-" " -' o.
-,i
I I I
"
"
E

"
"
•" • " "•• - "
"
13 •
;:
0

-
-
0

~I o>! " "

'" I '" "", " •-
0
0

"&'" ""
"" •0"
E " • 6 "
" 0 .::'0
~ I ;: " 0
0
, 0 " e :..,,:: " :;, " " "" V""" "
0
"
0
"" " .-;I " ,"" "I~0 • 0
- 0
•
~ "
C 0"
" <
" 0 ~~
" "'" '/]

I
1

I
I
l
,, I,
I,

I i,
I
I
 Annex II

Details of Coastal Trawlers, Tankers and Cargo ycs~elsRegistered with

.Mercantile l\'larine Department (MI\1D)

FISHIl\G THA \VLERS

c,,'" Yco, :".mc

NOUle
of tho Trawlo", Ton I Ro~i.lt,r"d
Tun
"'
or the owner
I Built
l. ]l,loltrL_T 2515~ 122.50 1975 ~I'S ShLmuw Speci,lized FLSbmg T td,
Dbaka
2 \loit,;-S ! 148.2.'! 18.44 I M:S. Shimuzu Sp<o;,l;,.d FIShing Ltd
Dhaka
3, Gousul Anm I 1(,3 I' +--4683--1 1%9 "liS 80,i;o1 FLShln" Ltd, Dhaka,
4. G.nb.E.»,cWUL I lS4.~fj I 41.15 1%9 .\l/~ B"r;snll:"hin ltd, Dhaka
5. Z,n obLi 112(,75 I '11"7 1900 \I'S ]l,T.M. & Co __ChiLL""Un
G. Toe ccr ~",l,"bb;l ! 1'675-i _ 41.27 19S0 jl,1.'S M \1 & Co .. Chm, 0"
7 ShubJ,I.L1-1 i 114,78 I 4.159 19,9 Sb,I"llsiom
jl,jiS Chy Trawlers LId.
Chi"ao~];;'
8 SI",h Jalal - IJ 114.7;;; 43.59 i979 jl,1 'So SIT"J,,1 !sbm Chy Trdv-ltrs Ltd,
1 1 Clll!r,gong
Kotb I )ILlb 75.88 1 1979 I n.F D.C Cb'LLdeun
DOLin" i 21.1.36 I 7(, 80 I I B J- D,C, Chimeo"e
1979
Koral I 15' 5(, I 423~ I 1978 I Il,F,D,C, Cbimgong
Chompo I 1095.1 I 29,34 1 1975 .! B FJ) C Chltlagoug
Bd"'].L ! 6',50 i '.' 4.' I~-;" U,F,D,C. Clm" on"
Gold, ! (" 59 . !
1 1,OX' ,
" ,~-' 1972
197 i
I) F.D C Ch"'agong
B F.D,(. ChLttagon
13 Ru chOllJO " 5(, .
IG, Matsl"., Konn}o _!_ 4'.4, I 15, i'l 19% 8.F D.C ChLtt"g~g,
17 I JubeLia .1 7;..6fJ .17.70 1 lJ.f D.l. Chil""O[
19S6
\l",",n, ! 4, i5.,9 19SG I B,F,I)C.Chitt3~g
"'"
20.
D\lsh"u •..\I.j
l'obi
Ill".\il]

!
~i
119.4S
12"~9 !
4.1 08
<, %
I 1970 I \J,':;. :;d"", S01"".l, Chiu,eong
1%9 .\l-'S" B<L\g,"loLLn. Food (F~portl Ud.
: , Dh,",
21, Moi" i I:'~7l j'-.i - -- ._----
"775 19-;0 ,\1'S.. U~,,~,.\1"",. Food (bpnrt) Ltd
1_.__ ._,_. j)l"b
17.',9' i 1%' /-.I'S Sl'nf, UJLlglac1esh Ltd, Dhob
I .I.
13 '<"hu 17'.95 151.61 198' I
~I'S. Soo:, B,JL1"lado,b Ltd Dh'KO
24. \1eghno_:- ~97~ 3.; n I'!U~ ~I'S. 0,,0'" Fisilln" Co Ltd. Dhob
25, ,\ledlL,;]-1 100:11; )7 (,-1 1965 I r.i'S, 01;."t 1'i,h;"o Co, Ltd, Dhaka
26 ,,!cohno_5 10'.11 ,i~.G8 1 19G5 ",i'S Onent F"hm~Co. Ltd, Dhaka
27. Id,.n"o\-I ! 199 __
'-1 9905 1912 "'1'S, ]l,J •• "h" S.afood ltd. C,"
n. ]I,!oOMar.) , 1~32' 9GOS ! 197' "I'S r.kt"l1har Soaload LId. Clo
29, Soo" S,m ad I 102,8 I 1 (,7 7 I 1%' \j S, Sea Resollrce ltd Dhaka
30 Hort~Qrd.9 1 :'0' ,21 ..I 1)3,5(, 1970 J\I'S S~o R,',ource Ltd. Dhaka
31. J1anL'L'd-2 1 '.';.' I I 159 ,1 I~,j J\I S. SO" Reoo"l'CO LId. Dh"ka
i 13,.r-u I ~i.s.
32
33.
HartlULJ.4
H"Tford-5 I
21') '(,
-1~I.GS 79031 I
T.:~;;
191' SO" Re,ouTCc Ltd. Dhdk.l
I ~I'S, S<o I\eso\,,',< Ltd, Dhoka.
3~. H.lrlford-6 I 79-11 1 \1'S Sc.\ Rc'ulIfce Ltd Dhaka.
 35, )'Iabi,howar_I 117.53 <1HO 1985 ~liS TTlmar Mo,hnz Lid, CI
~.180 1983 "liS Trimor M.rlinz Ltd. Ct".
'"n M"hi,howar.2
Anllshandharu
1 17.53
121.16 ~ liS .15 1979 ]l,Iarine Fisheries Resource Dev. Project,
China
'"
"
;0
1'ish.,-2
Fisll.T-4
159,28
I5~ 2S , 121 )5
121.25
1971
1971
.
MiS, SeJ FLSb;naLtd,'1 e JOn, DhJka
MiS. Sea F"hiug Lid, Te aon. Dllaka
,HI Mr. )'Id Arnzad HOSSJlnCllo"dllury,
'" Cll,mdhurj (Ex
};Jme_ Al Habib)
85.73
FowzdJrhat Slo,;on Ro,d, South V'lLJ,i,
Sltabndo, Chi<1ogotlg,ProprilOf of ASA

I 'I. FTlond,h, . , 1,10 13 4G,77 19~3

F"hing)
)'[/S Friends Flshine 0, ,mSJlLol1
42.
n
Fricnd,~iQ- ,
Bara
1~0,13
114.11
4G,77
79 5.3
I 1983
1990 I MiS fnends Flshine 0, amsal;n"
M"S. Khan & e()., POClKdLTuiI,iam

, I Rood, Ch;noooncr

"
45.
Tapa"

R1Hloocho"ka
i 1.17.10
I
11'.c('
~9.4 '

4~ 18
I 1990 ),1/5. Kh"n & Co.. Po", ~"2nlllsi.m
Road, Chlll"gOn
I "I'S, Somfi,h Ltd, Ct~,
4G.
47.
H"","-IO
"lil.lli
135'15
1J'1,91
4,88
,li,G4
1971
1972
"l"S Ha"km Bon"bd~,h Ltd. C,S
"l"S P,,,,dlSe Assodates, Dh.ka
,
I

,e. Chandon. 13491 L 5r, M 1972 "1"S, Porod"e ,\"oo,ate" Dh"ka I

,,
", Shan',
I=m.]
94.60
184.94 I
5420 1996
1912
MiS. Blue Bo 'Ltd, ChinaQon
MiS. Inwm Fi,hine Ltd, Dhaka
"
51. !m"m-2 184 9~ ,
1l',9u
1", 90 I 19;2 "liS. Imam FlShino Lid. Dhaka
,,2, Im,m _3 I I~4 9c' 6'1.6' 1973 \1,15.Imam F"h;n" Ltd. Dhaka

I
t"""
53. A.11.]-,1.-1 '12.N 1972 .~;,;S,Ahmed H.kodo "bnne F"~][]g Ltd,

54, AH.M , '~9.k) 161.06

I 1~7.1 "
)\-'l.'SAhmed Hokod" ~Id,ine F;,;I,ing Ltd.
I 0:;:
55 I Mi,.\ i92.71 I, (,7 Ii) 19,0 :-.t/S Bene,i h,hin Ltd. C, I
, 5G,
57
I RonGhaLl
, Juul];" J.m.L ,
19' ,1
10;,-'1
..
•
,
(,7 1,)
6~".10 I,
1%0
1%0 .
I ~I"S Bong"1 F"hing Ltd. Ctg.
,
,
M..S. Be"eal Fish;ne Ltd, Crg.
I 58, JOlJlh.l:d\Om I
I~ ) -, I
. I .I~ ,,
! : -;.1('
, 19,8
1%, , WS, [l0"",1 f"h,"" L,d. Ctg.
\1 ..5. 5h,~d:"L S"m',,, Ltd. Dhaka,
09
W.
\kc~ Sho:",<,m
DeepS,,-1 I I04.~9 N41'" I~~7
I
.\1-'S,D"eps<o FLSb", Ltd, TaJgaon.
!_-_.-
l~n.I.. },AS
I 1976
Dh.".
\IIS Deep>"" F"her> Ltd. 'Iajg,on,
" Deep SC.L." I.~
Dh"k".
Decp Seo.3 13~.9, GO,90 1916 ,\I"S !Je"p'"a I'i,h,rs L<d.'[aJgaQL1.
"' ,
DIl"ka,
G3 Dolr:hm lOS 1'1 71 .:9 1992 MiS Parod,," A"ocLotes ltd. 0"
M. SOY'''' ') i,1 ~n
I 97.91 19')1 "I,lS, U.yT""lin
I ~IlS.
Ltd, Dhaka

"" Rahm'L
HartfOld_IO
c L',S~
34451
I
I
~7.01
1:;6 O~
1997
197~ " l'nl\\lmg Ltd. Dh"a,
I ~J/S. Sea Resouroe Ltd. Dhaka.
67, A, uamal "'. 11'.40 I 5~.oD I I ~li.s. D•• p S., ",";",,,on Ud. CPo
68. Joh" 11050 44 10 I . I \1''''''0 FlSh",i", Oniee U"
_-,69. "l'"!C'<l' 2l~ 0:; 91 ,~I I 19~o ~l.'S Raj Tra\\'Img Ltd Dh"ko
70. K"." I 11.'.S: 9' ,91 199-' )1.1'S, [lay Tro"liJl" Ltd. Dhaka
n 2000 ~I"S "bdil1' FI<hLl1g('~mpan,. h,. Lid.

n
I Sun,"Ll

III,," ~IT-I j
9' 80

I I' oil
" cOO,
Dhaka
~I'S, fllu. [t,,, Ltd. Dhaka.
"
n. Blue \11_2 SS "I- 02 I 'OOD I ~I'S. Blue B.1\ ltd. Dl,,,:<a,
I
" !,
n Blue\IT_J 1'''5') .1'1,')1) 'On.1 I \l'S Blue B,,, Ltd, DInka
I \1,5, Bill. l1a,' Ltd, Dh,ka
i
75. Bille :-'IT-~ I ,5.(,~ (,:; 2003
BllleMl'-9 5050 "OU, :-'l'S, !JIlI,Do 'Lid, Dhaka,
'" I'" " --

2-H
 n BlueMT.6 , 113.60 30 SO 2003 "US, S.a Fishenes Ltd, Dhaka.
n Blue M r_7 i 146.03 5U 93 JOG3 "US Se. FLShencs Ltd, Dh:lka,
n Fisher-] 250 n 21103 MIS Sca F"hcries Ltd, Dhob

eo. Fisher .3 25,) 75 2003 ]1,1,S. Sea Fi,h.,ic'

Ltd, Dhaka.
e,. Desperado 150 2002 MiS. Continental Traders (DO) Ltd.,
'" Chmago"~,
"l/S. CDolmenl,1 '!'ruder< (DO) Ltd"
125
" Hearty

,
314 "00'
Chlt"g~_
o,eJ Mas:« 1.19 ,\1/S, Blue Sea Shlppmg Lid, Ctg
"e, °63 'DIP
I
Sotelille-l 12058 US.05 ,\jiS, S"ell'te F"hmg Ltd. e'g
I
Karnabl} .] ,1'1 M'S Bay RO'Ollr'C>Co _Clg
85.

86. BL>m'!ldn
b]

n 23
I ,;022 ~IISS()mlj,h Ltd Ct~
---,-_. I
n Fish Ibn!er SO.,O 42,50 M'S. Fr~,h Se' j'oods Asso,;".;, Ctg
I
n Si~ 510[-2 89,::') 45,50
I . ,,1'5. Si~ Star Corpn., CTg.

'" " l/S. Sadm:m Shoe' Raf,>on.

Sadmon 7950 3944 .

00 Falcon
I 76,7'1 I 3S.20
I . \1'5 l'n;quc' hadel's erg
I
"'n. MalilLe j !<In''' s;el -2
" "-I 33.20
.
,\j'S ~1"rir.c Aqua iZesoLlrces,Ctg,

S,lam m 7(, 74 I 3.' 'U Ltd., Dhk

M'S, bradLS" .-'.SSOOlO;.'
--_._-- ------- --_.
n UnlCo - 15 21381, 1i5.02 M/S. UI1ICOUd. Dhoka
,, I ~lIS. )\oc;on,1 \'bLlr.c Fn"u, ()r~n. e.g
"' Se, H"d ").011 4115cJ

95 Fbmin~u
T n ,,0 I
".1,,10 \1/5 Cun:;ncnl.J1 "lorill' f;,h",05 Ltd..
I CLg
),1,
Koh;noor_1 Jane ,Ibm, Prop"tm 01 M'S
I
.
%
I III.'." 30.9t
KmhmDor T rdde", Ct"

I 9,.

93.
I
li,,,,foL'd-7
Ponm,"ld_l
. 20",/2
35.)
I 1." I~ . Sea ResOULWSL<L1"Db,b,
~I.'S P"m~,l1l, Fi,h;n~ Ltd. IJ~SRS
I
n
I Pemn,,,10 J,,~
I~
I I
flha~,n i' han,an lJa,,',- iJb,ka.
1--1"5,Pellins\llo f"llIng L,d. RSRS
" ,,-
1-14 200"
1Iho"0,,. 12 KOLw:mf!anr, Dh,b
~1'~, I\lu, ~., ~hipri"g 1 td., Bon,~al
100, A,k
I 20N
-,I'
Shin. 93 .-'.~"b,d CiA, Cie,
,- < -'00-1
1O!. LOlan
I -,5 I
I '"
1999
I ~l/S Sl' Curpn. 28 SUL3UllRo,d, Ctg,
"I'-S l.'nl\'o",,1 Sh'ppmg &: T,"d;ng Cu.
i02.

103.
Unn""al_4

~bLltlmo _I
I '5 '
I I~o

13.1 2000
Cummcrc ,al COllLt. 95 __ ""rabaJ. Ct
"I'S ~bnnL E,plorc", Ltd., 34 Da""
I I
~-.
S~I.Jm R~aJ Sec_I, Mi ur. iJbJko.
,,is \l,,;no Explorors Ltd, 34 Om"
IN. \blL11mo _, ")'
I
1.12
I 2000
S,I,m Rood Soc_I. ML lL'-DhAa,
",I.-S.Pen,,,,ulo F"hlllg Ltd., BSRS
105 Pen,""'uj,l _-I

,
310
I
1.IS 2000
I Bhabon. I' Korw"n B~zor, Dhab,
'7"
106. K";LllI'O

107, on
I 145 2005

2005
I \1/S, Storpe L1Dongfiado,h (ht) Ltd ,AI
!slam Cb.lnlbcr. 91 A~r<,b"d.Ct~
\115. F"e"ds F"h;l1g Corp" Ltd.93
~1dll'?
. '"SO Kakm;j Dhab .

'"'
Sped _1
'" 'OO5 1\L'S,S"".,1 SO.11'LSI1 Co Ltd. HflFC
Il\llld",~, ;/D Aglah,j \/11.., Ct;;.
---'

242

•
109. Speed-2 2005 MiS, Speed Sea Fish Co Ltd, HI>FC
[l\L!ldino, liD A ",bad CiA" Ct •.
110 Cry",I-l M/S, Crystol F"heries, 2GO Majirgb,t
Ro.d, Ct
III Lab Lb. 145 )VUS UnTIl Sbipplng Co: Ltd, 235.'1>
To "oan 1.'A" Dhaka
112, FV Lukhu.\ 2001 AI-Ilaj Payer So"d'gM 93 othe, partners!,
C"
113 LV Sania 123 1U5 2006 M'S Deep'"" frawling Co. Lid, CD"
1 Annex Bldg. Clv
114 F.\', ZLniz 123 2()O~ ~l'S Deepse, Trawling Co, Ltd. CDA
I
105
,\nne~Bldg, Cle
115. Chat"~lam 19{J 2006 \Ir ~Id. ShahjalMll, Pl'OyJlIOLoeM'S
"' Shoh .bdn FisbiM ASSOcLates.Cl;;
IIG. Dhaka 760 I 172 2006 /-.Ir. AT~j ll'pn<zz.m.n Khan, K alioIL,,1

117, j,eEndoO\Olu 2S5

_1 __ . 147
Scom Uh.b,n, 70il VIP Road, Kakrai!'
Dhaka,
"-l.'S. Shaddt 'J '"'"'pon System Ltd., 73
A~rob"d C,
118 Peninsula-) 354 ld/S, Peni",,,J. Fi,hJn~ l.td, BSRS
IJh,ball, 12 Ka[W.n Bonr, Dhdko.
119. C"y'tol 11 2" I ~o ~IIS Crystal Fl,bcLie' 260,\hjlrgllOt
I Road, Ct~
120,
--
22, I I
M/S. Dof1ocijl, Traders, T.he! Chambor,
Il) AUlah<>d. C[g.
3g-~1---20 ' ,WS. Gold S., \FLShing Ltd, -',,"ohmilro
'" Gold So._l
Gha' Roarl, Ctg
122, .'00 J 60 , ',-I'S Ayub ~10<l0",,, Fishenes L,d., 317
StrJ[]d Rood. Cl~
S Kuhar.l 275 1-10 . ',-J'S Sloe Pon n,ngl,de,h Ltc. Al Islam
I Chomber. ~ I '\gLahad CiA,Ctu
Khadem Ali_I '75 I 1.15 ~I S Star ~01llJ"lLglad"h L'G" AII,iam
1_ I Chamber. 91 ,'wrobod C,ACte
1"5 Ocean bplmcr .12')U I /,,-17 I - I "-VS.DleeS<aFish1tlgL'd.Chlttdgong

126, Ay1Lb 1\lol1~",_IP Il':O-[~)~ 2001 I

\IIS SacL11anA»OCL"LCP"L Ltd
!______ RDJd K() .5. Section _I. UIl.lTO, Dhob.
2:\-1 J32 2<)<)(, >'1'5 H.l[c'J J.llmrlllJc1mF"lLeries Ud,
P7.

123.
I '5.]--'1
i,

132 12('01;
,JUlI'. :-':0-10. GlII,ha" Awnue, Dh,ka
>'I'S HablJanlLTuddm F"hcL'ies Lid,

129, COI11I1I, :'50 --i-

I
ii9 . 200i I
HOll,e ",,-1 U. (iulslk1n A \ ",we, DI"b
~1/S.Kamali.1J"Sl:LpB'Llldc"Ltd.
Ich"ll""" K'rIl,fuh', Chjtt,ool1~
130, ISO I % 'I 2002 I
~IIS. Abba, COll,rractLon Comp""j'
Hou,,,. ;>llln,bL Mc"h Market. PAB
Rood. (hor Path.,oha,". Chitt.~"
131.

132.
H'que )5-1

29::
II
.__ .~32

127
,005

'001
',-1'5 H.'llll' .-\qll" Cel1ll1r"PVL.Ltd, 37/2
PUTa,," P"lt"" Line. Dh.\lJ,
/-.15, ;>1,,1,. Trode F"hing Ltd, Hou," No.
16. Road No. 19.'.\, Bo~am. Dhaka
Lon~fm.' I.1J
l'OU7 1 '1", Marly ll.\de Fishulg Ltd, Hm,,' No .•
1 16.Ro,d 1'0, I~'i\.nal',ni, Dh.b
 TANKER

llRLU}1'I1 DEPTH G1'

, NAME or VEESELS ViBlJlLT YiR£C, LEl'G rJI
"
,
,
KORA>JGI
TEK"AF
1963
j9.151
2001
20{)1
63.481
54,66
1093
9,15
3.43
3 66,
S54.33!
627.07
353--53
323,59
I 1%0', [ 61 2, 92;;29 .'56.97
, 1,_ALI.'IDi
I
2001
! 50, I
lU.92 M3
50351 214.29
, "lA Vl;R PA:,KI 11
SO.'!A!'. KAKO.'l
1%91
19d
1933
i \\331 61.311 9.631
8.8, 33
.U5 332,311 438.-'-5
i97S1 1079.99 56Q.34!
,0 CAl\.'d RRlIXiF 1961:
,
63.71 105 5.25

,, (lJAXDRADEFP
SAI"lA
i9(,I
l%j ~
l%l
1%4:
~9 9:
61 7;
"
0 45,
4,5;
, 607,'8
719 J7
377.23'
"6912
, "I "HI' Ul ] .\ \ 'ED_3 :9-'0 ln3! 607, 0.0 HI <70,6S 34' 6
IWlRuKlI
I
I
I
1%0' 1%3' jj,35
",, "
8.166S 469,07
265 ~5
" IBAl: BRIDGE 19711 198' 53
" 55336
I
I " ~\IAL-\N'(H,\
lRAVAI'J
,,1,\1 1:\1 I9(,9;
19721
19S3~
1903:
6325
M w ,
4.5 715,92
70756
506,--'8
54155

"" SA1MA-3 1%91 1933, 52.55 8 97i U 477.41 341.S5'

19,,1 1041 3 ~1 316.35
"" J"~llJl\,\
"IOE\' " -~-
19,91,
19 "', I,d
6'.'7
~
54.54 W 43, 623.63. 1
444.99i
272.38
~9.5I 33~
17 ESSENCE
I
1974'
I~ 1_'j
1903;
1%3: .)71 ~.5
0 4,11
4,2'
55015
:'4.'.:>7 39635
"
'""
ISHELTER •
I d 53771
'C
'SO"AR KO\IOI.
!JOEL
1%91
1970!
1%3;
19031
499S
",,02 "
9,6' U3 75380
357,"1
481_'5

"" PREMA J I~70: 19031 50 t \'41

"''I
538 14 ;. 16 5-4

n
8i\1,K,\ I'
SO~Al( 'I Akl -[-- I'!6\,j
; <)7 I:
... - 193,!
~l'iql
5_U
(,.1.:'1
1907

"'<0
o 7
,:
..3984'
6970:
43U, ,91
474."8'
I') , I, 55.,51 45) 499.291
" J."1..\ KU\IARI 1%': 38(.. 111

"
"'.
F.,\SI'ER, Gl.ORY
Ir.AI(K_l I, 19%'
19:,j
1%:!
I'1S:,1
"7 2,,1
55.911
8 2.'
93'
.',051
.' (,91
40'.311
095.371
250. '4,
391."51

" MEllER i 19~,,' 1%6' .:G.u31, 10,-'7 2,44 .'8,.15 239.55'

" KOFL I
I
I ~75, 1906'
1906'
:<6.08'
JUS
<0 4,25
, 49" M
GHG
335."7
480.l2
'";C SA,,'KH,\
~lIM1W
CH1LL 19711
1')7 i 19S6' 52, I 94!
10:
45 .l99,9i ;'19."9

"
3'
L\IPRLSS
EYER (iRa;>,
1'n"
1'),6:
19S7j
i%71
4.),I
57 13~ 1061
H 3,5
, 199.11
U LS9~
139.78
384,521
33 SHYA\I,\ 19, 1: 4' 1 I 7 ,) I :- 3. 30.'.411 193.~81
1%71
<0 4, ~,9
'"
35
DESH.I
llKl.,JAT
1916:
19S,:
1'1,7
19S71
5t.01
,-
';,"1._0, 10,66 2,4]" 61625:
37892' 219.0-11
;0 lL-'.FELZ. Z.-\,,\lR{Tl)J)l>-; I I97 Ii 1%7: '675 ~.3 U 638.46 355 4,
P.-'.~ KAl'RI i 197 'I 19S7! 5:;,68 10: 4.35 604,77 "8. '3
" 38 CA:-:OE
- i937! 19S ,d .)6,02 10.361 , ,5~, 379.48 3".-'7
55,6 4,51 360.,7'
"
I eo
MAYUR
SUL"!,\"\,\
-
~~
~~
-- " Ii
1990'
'9'"
:9?~ .17,lj 10,66 " 2,75
641.B 1
38~92 ~;9'
 10.5 68445 364.94
" NAUREEK-I 1977 19SO 58.35
5631 "
4,55 558.66 31Q.28
" ROMEl
SUGHANDA
1975 1933
1989 55,93 '"
8.92i 3.96 654.81 310."8
" 196'i
358'6'<
"
45
St;M~nT-l
8ULllUL I
1975
1974
1988
1938,
538
49.7 "
n "
4,71
720,59
686 1 361.1
9.S, ,,' 731.11 3998
"
,17
mD/I.
\"WI1AQULE
1914',
199 II
199r)
1992 '"
61 35 9.15
.
3.' 553.43 395.3

" El,\lA"
SO:;AR "AO I
199't
196,1
19931
199~
63
71.131
'" ,
9,'2
"
426,
"
1005,8
839,7
75E!6i
57'.S6
'" MU"OW,\RA i 1933' 200!1 H.8 10.4 :<,9 61'.75: 456.02
'" l%~;: 200 i I 72 89' d 5.3 860.79 5S2,,"4
" 511:\l1T [;"ITED-l

,
.'"
52 SiJ),j]T ""ITlD-2 1939! '001 55,45 10 5' 4.5 493.63 264~6
2001 67.41 I I OS 594,68 364 '63,
JERUSALE\l-1 t 93'
"' 9, ] 8 3 71 569,01 39,831
ZORRA I 1\>76 !9')5, 59.4E
1993
i
1995: 595 ,e 2,44 57434: 427.15
" ~AR
1'IS 11 9,6i 493.39 323.21
% ],\1':1 (;1 L"'ND."- 1 55 Ill>
"
,,
ZOHAR 199'1 19~~
199G 0855 U 4.45 645 35 454,2~
57
lU.2 4..15: 149.48 557 '59.
50 SA"MI"'-' i%3[ 1996 67.9j ,
SIL\' ER LXPRESS 1984' l~mi 01.33, Ill.' 4,5 70531 503.2
59
W ERlTS,\LHM 73 W _u 7%,5 54".02
19SOi I~
RAlDAH I 19" ' 1999 50 12' 43 m 3'P
"' SllAll AMA:-i,\T I 1%9,
1
1999L 00, 4,5, 499,95 309.S.
" A),IENA 190 I', 19'19'
. (>S.O! 91.~1 47 592 05, 422.3~
" 1')00'
"

;999 ryo,~
"
9 s', ~,35 730.37 347.('-1

i
M i\I.';'LlJ;-..','-.1-1 .
0; Efl,\DlE.l I ~"oi 2002 M
Wi 4.5 ", "~~-
-,_,.

421132
0

I
1
673,81
" Tl)SH,\~ I~~"! 'IIIJ'I M"
'"
9 , " 295 !is:
"'
(.S
oll."H»IA,,[
SHAH.';' 01'-'0 ..\_2 .I 19S3[_
I%~'
20110,
-200d
olAII
05.13~
'",
"
4,65
4995
53934 ...',
3""
,,
"'
70
MAJ-;,KAII-I
FBAD~E
1% ,[
1'1061
2000:
'0001
6',. -,
()I S7
W
, 4.0
5.'
499'
535.44
306.;'9'
405,:16
40S ',6
n
n
"IAKKAI-I.I
'-'.\SlHAl I
1~"i!
In:,
19~~1
1999,
W
:' 1.4
10 2
, ~,5
, 5iSA4
~ 15,71 306,:9,
499,5, 273.39
-I 05.0-1
"
.\1ArJlK A_I 1%5; ')r)'-P W. ,
;}

" A~lM,AT 19;"'1

"
200.' 72.-17 , "

'" 648.~2 371.96

323,11
75 FALAR I i%:', 'DO.' 64 66 ~,5 ~4, 49g.5
I I ":;S 249,:'-3-
'"
77
jc;IA\lAl
SH.-\G..\R KO",,,Y '\
1%5:
1~7:q !%51
~720
5?~ ':
10.67
]0: '"
3.72
431.00
499.53' 325.35

n ~.4 663.5i 350.~ I

GU.\!Tl-1
LATlF,\ ..
"-
1%,:
i %0
19'31
I9911
54,05
7.',73 "'
0" 3,87, 92145 5331]6
'" T.I059
"
19,51 Ig~71 (j-l,(,~ IG 0' 3,941 8,~ I, 519.43
'"" T,1053
"

19,-li i<r/~,; 61.0:'\1 10.01 ~.94 859 rl 519.~3

"',.;
4-l-l.:;S
eo I 5,,3 7S4.06i
8.1
T 1055
T.1O,1 I
1<)(,11
!%,[
1~73i
19P "~,99 " 45, 65133 375i"
19'/8 S.S ~91 64 270.'S3
e' 1(J50 I 1%5; 49.2
"
85 T 1057
II 1%.': , 19701 5".131 S.49 ".'0 574.66' 311.6-\
~UOI )" '.1 ,5 43 ~99n 262 '9
'" T.!052 i%':

245

,
 ,,
"'" T.105~
T lU49
196\
1969
1982i
19n
56,96
4751
"
'", 741.1
398,05
394.63
211.87
n,
"'
A!JDUR ROB.j ',T 1991 1991- 47.8
",, 358.44
74994
244.29
615.28
SIlA;-.lKHA CllILL-2 TIP 1879
199111
1994.
1994
53,5
51.9 "
t 1.0 2.45 661.63' 49656
-"-n
E- ARliN l'ES,\
SRO'[Q PRIYA TiT'
lW
199' ", >0' 2,6, 396.67 256.48
~ 1993 645 9_~ 4,6 608,64, 3% fi
93 FATEHA riP 1%0.
99-1', 613,35'

"'" A~HA 1'P

JOY TIl'
1 1933~
19d
199(1
19%1
72,5
60.1 "
') 6
5.7
4.5 499')9 329,96
231; 11
1;;941 2,6' 3 t 8.3
"
"I
;990
-
% SRCJlO S,\KHI -] if'
i ,
I,
,

1 L 1

COAS" AL VESSEL

HFG U:i\"CTII J)J{fADTlI DEPTH G' 1"1'

BULf
, "'.\.ME
8,23 4,26 437.68 31583
,, ISlAMABAD
ZAll1RAR,\[)
19-1.'
1')5-l
19,.1
198'
4.' 6
55.43
'045
962
8.84
3.21
313
4~533 249.,6
481.68 23141
1%.'
, SAF1",\_E."OOR ;95"'
50_5~ 933 3.33 5708 366,SI
, ARK-AL.]' AROOQl.'l
MAHATAIJ-J,\ VEl)
1%2
1%'\
19'3
1%3 57Yi
,
9.71> 4,27 77:' 45 326.59
436.26 243
0
,, TliPlTAR
I IASl!' _I.;L.BAHR
1%:'
1956
1%.'
19SJ
4',(3
4("05 0,33 "
3.04 470 ~ 240
498.0.\ 272 5"
TIGER or CO\l1LL.-'. I%r) 1'10' <lJ,6-1 0.:4
, ", 48,19 30833
0 FAlLlW R,\H.\U", 19''1
1'16:
1'1:.\
19,:0
.1<).IS
-IS.W "is " 4%9:0 29u.2'7

'"" SIL\"I
AL_SU11.\ 1%"
1"(/)
19'6
1'10'. 50,5
(,0 (/)
9.43
100:'
.' 9
4.S 1
483.31 2S2 6:'
S7~,65 395,~ I
"
I:
TlIAS
ILTRAG 1')6')
1976 (,0.66 lo,n ,1.51
4.11
87465 395.'.1
87-1.65 '9.1 3 I
!\TRAI I%~1')-;6 60N, 1G.~2
'"
15 C IOG~ 190 I 197(, 5G.~7 % 2.69 4S~,31 177.37
~97 243.27

'""
BE(,,\BAT!
IIlZlA
1%6
1'!6~
1'17(,
1976
5] C
5,2
S.59
3,79 '"4,5 552.63 262,96
7,% 510,77 25~.~,

'""
SEL,\
C106}
IlI66
I'n.'
In7
1%7
5('.23
52,77 10.6 '"" 7.1u.27 34~67

CI064 I')~.' 1976 5277 10,6 ", 7]0,27 ,44,67

" l'AAf I%~ 1%7 5] 45 S.9~ 03 516.06 292.4~

"n [lFRBARI:--;A 1()50 1%:'\ 5 0 J~;

""
, 21 47S,67
m
254,"
26.1.41
2} HUM S..\.G ..\R
SOHRAG
1%5
1%('
I 'J"
~11Il1l
59,01
.17 00 "
S.,l "'
3,16
"
4~9 4 270.93

" Ol Yl\-IPlC' EI'ERG Y 1°,2 1%.\ 58,9

" ].98 50S 47 304 I

" AKHTARUL ,\1..\\1 1~77 19S:O 22.06 S 23 2 13 94,68 ,7.88

""
"
DEE>: 19-'6 1%7 56,12
47,71
R.24
s.3 '"
.1.21
51~9, 263 67
50' ].1 27>.74
Uj~U"IOLT~ ST.-\R 1%< 19~:'
"" lJADR I%~ 1%2
1%.\
497
3 ',0(;
8.7
7,0 I "
2, 1~
5lG.57 1'76 I
22604 161 }9
KA\lRl'lls;om-1 1')7.'
" KAl\-fK1,;1.l~l.",~I-c 1~7-' I~~] n.]5 701 21-' 166.54 145.{)9

"
246
 KA'vIRVL ISLA,\l.] 2535 7,01 2.13 166.54 1~509
"
;; KA"lAL
1973
1%3
1933
1933 4756 e, 3.46 45655 242.99
H FAZILAT -R/IlT. 1974 lOO{) 6'.65 8.6 H 670,6 518 5
;0 ELIAS 1964 1983 41.02 H 3,6 3587 209.05
;0 ~EALTh"K-l 1973 1983 35.06 7.01 2,13 226.04 16139
37 PAYR-,>,. 1%9 1983 67,7
,
'.0 H
, 418.34
4%.1
235,72
231.28
38 ORIllTOR 1970 1983
"
55,85 d.91 502,34
;0 S.ISLA"l \966 19,]
592 "
",
6,7
723.09
929,75 668.94
'"" SH,\H 8.\D.-\R.j
URA?'US
1970
1%2
In]
193.' 43 (,3 3,8 43S,72 252.44
SBAli UAD.';'R-II 1969 1%:1 58 9.' 4,7 76296 546.1
" l'M.\lA KCLSli\1 1%2 1%3 _'9.82 6,76 253 22686 127.n
" ,,' 66',35 ]70SS
"
45
BEl'GAL
XILA'dA
BRJl)Ct 1950
1%6
19%
In,i 45 67 8.25" 396
2.23 28-191 13527
,,1RO-;
'"
" IlAYST",R
1971l
1970
1983
19"3
52 .12
-,
'- "n 335
H
513.93
503.36
23104
273,36
1970 51 56 3 28 509.9 277.&4
" "IRO.S 198.'
"' ,
"
SUN fLO\\TR
kED ROSE
1%8
1%,
1983
I9'.'
50 9~
51U9 "e 3 81 579,08
4)5,Oi
323.99
249.8~
'" FAIRTECH-II 1%9 1%3 58,5 C., 4.4 596 29 335.41
"
52 POLARIS 1%3 30f)2 f I ,,' 11.9 5.4 1491 <\61040,63
53
5.1
S '\\'i' A.E-I L"-.\'11llL.\
I:AZILAT
I ~''''fJ 19,)
197,) 19.'.'
50 I0
,--
- j -'
"
S,)
U
,, 454.,6
493.0S
251.:"
29020
52,91 7,66 4,1.3, 23425
" ,\FS\RI'DDI" 1959 1%3

"
,7
SAD,
SliUJ.-'\:;':
1930
196"
1952
19S.'
3-1 IS
4775
732

,
7.9~
2.5~
,, 214.99 143.71
4-1; 218,%
58 SHOKHJ I%~ In3 -13,56 4-193S 227 39
59 ~JRC.3 I'JU7 1%' 59 ~3 E2 -102 422 38 205,22
"0
"
BLUE ST.-'\R
l\O\\"RO;'
1969 19'.'
ICJ':-' 1%7
: I -1'
627' "
9,7
3,51
:<,09
43S.)
495 'C,
230.Q2
22.1.17
MAURL P.-I,-K,jJT, 1'):-;11 1992 .11.9-1 7.17 373 19939 10;.61
"' I97,1 I9~.; 4%,14
"'
M
llLOO~lER
AI'S,\l{I;TJDh_11 l%-l I'J,'.'
49.6
5" 5
51,33
8.8
~,5
,
3.77
3.6i1
3.92
476,29
521.57
25 J.81
295,7.'
2735
AFSARl'DDll' .111 1%5 I'lL'
"' ,
"""' PA','O:,\
Gb\lA:-;.--\.-~O
1%9
1'1,(\
19S3
I'),'
40 So
49 ~,"
,5,,1 <
7,5
0
3,29
13
271.49
478.00 23106
139,78

(,0 AL_.\\ll" I~5(\ 1%-1 1l. 9' ", I 7 1,OJ 4~ 10G4.Lj

no
'"
70
AFSARI
LU nl'R RAIL\L--\."-
1%0
1%5
1%5
1%5
'\9 -I.'
,
-1--"
7 ~5
8 54
] 56
~,72
]4605
44ii .19 363.n
lillA, 5 o~
"
n
SALEE~l
l\ABARl"-;
I ').'0
1%6
I9S,'
1%5 5_'.89
~.79
9.0:: 3.6(,
82861
495,01 '"'
274.27
n AL_BAl-;,TL--\.R_i\' 1%:< 1%5 -1.'.7.' S.54 3.66 493 293.42
FlLKJ .\:;D 19% 19-'6 '15,SI 10.37 3.'-5 493.23 261.OS
" AKSO'-;o, 1%0 1%' 5.' 01 932 4.7 49S.03 276,77
"" PRJTHJBl 1~71 1906 6',03 II 02 2 8(, 51(,59 29022
n SAFI~A-E-R.\RK.\ T 1%(> 1%(, 521 8,5" ],65 554U3 335,59
Jl\IPOR n:.-'\Il.Rlr l{_
n R,'BT. I ')S6 1%7 39.97 9.2 3S 4449S 301.16

2--1-7
 AL-BARKA1.1 1937 ~5,73 8.45 3,66 475.9 3329
"
80 AL_BARKAT.ll
1987
1937 1987 45,73 8.45 3.66 475.9 3329
1941 1987 4281 9,75 3.35 439.5 289.01
"" COLU"IBL'S.]
"IALFYA 1987 19E7 55,9 10,66 3.' 543,66 349.04
e, ,
H)RAt' 1936 1987
In,
39.32 ,00
" 34958 266 45

8'
8'
L>\ILA
MAJ~"OO
1979
1977 193"' "
58.52 '"
12,9 "
3 65
31689
800 337.3
:"lEIl:iUR 1986 Ins 4335 9.75 365 .laSl 354,64
'"" SH.\FIQl'lo 1987 1%8 .18,13
'" 3.66 498.4 352.1
;; PARAMOu:':T 1937 Inv 4l.S ~Ie :, ,27 326,22 20904
GOWlIER 1')87 198') 4.1.1b 83.1 ),65 428 ~9 238 "9
'" DACCA 1967 193:; '005 1 1 29 H 1127.6~ 63394
'" In' 705 1US
, H 1199.86 616.07
"
00
KHUl "",\
,,\WSH1:-; _R'IJr
1965
1991 199:'- n
n
,---
' 7'

3.15
JUDI5 209,68
312,44 191 97
93 SO"l'\
KAzr 50,,1,\
1937
199')
1991
1991 475" 935 8 468,1.1 31973
"0; "I A:---n::]1.11."11.11 199 J 1992 59.'
" 3 (,5 58076 408,25
0\.4, 9 15 618.% 41B7
% SUCIA"A-3
MUSTAFlZ-RIBT
1991 199 '
199{) 1993 43.9 e, '"
3,65 442.SS 3408
"
9S QUEE:\ I~S9 19n 4726 9.45 3,3, 626.47 314.15
00 ROLFX 1')90 ;990 50 9.2 4.3 47674 363,S
'00 Q1JEE"- OJ- HEARl
SHAllH,-l
I 9'.'f)
19'! 1
1%9
19'1:'
(,:; S5
47,'
15.:\2
, (,-85
H
1750:;ZI18l.84
463.43 333.55
'"'
Il'2 S.-'.KIR 199:3 1"9.' -16.24 9 14 3,65 447,38 3:>927
103 R,\YTHDI 19<)0 1991 54.06 9, l~ :' .15 473.3~ 352,31
l()4 R".'.-11j ;9,2 199:' 61.61 1233 4 05 1150,22 102 2"
105 SllA,Gl' I~S:; l'i):' r, I (,I 1:'.33 4.0, 11,012 S02.25

'" Iql"'Q\;~ 1991 199~ 44,(, ~ '0 3.0

, 3862-1 zn.37

'"' \ li'VS 19:,,] 2{lOO 663

" , 495,5 2S9.'
!M
'00
:\EI'T\D:E
\IERClRY
1';"
i ,j, I
IOUI
.'l":' ;
(,5., I
66.2
I(l 5
II 2 W
4995
93-1.6,
293 15
on ,
I C;q I .17 2:i :; 65 496.29 275,~2
I III 'IROOl'ER-'j'[' I'NI
19,,2 '" 461 :;S 309, I
'"
BRISli II-W
YA71 SO,I.\_TP 19'1 j
19~2 52
475 '" 497,(,1 352.41
'" "
i'i')' 8
656,83 401.7;;
I;] \lASGD-I _ TP
\-IASIjD-1 i -IP
199"
199.;
1994
1994 "
57
10.35
10.35
4.3
<.> (,5683 40 I. 7:'
'"
115 SH1R11B.\_I_TP 199J 19% ~5 ~5 ] .' 4:!5,07 34071
ISLA.\11 IAJ -'1'1' 109'. I 9')" .' I t 10m 3,96 811 % 6n 55
'"

).
 AN~EXI

The Registered Shipyard~, Shipbuilders and Marine Workshop~ of

Banglade~h "ith thcir categories (under Dcpnrtmcnt of Shipping)

51 I i\OC
'\0
J'ame ol"Compnny
"liS Ananda Sh'j1yard nLld 1
I category Adtlrcs;

City J-kut (10th J1oor), Noya P,,-Itan,

I
1
Slipways Limited 1\ Dhaka
Iv].'S t<ara,angoll.l LnglJlccl'ing I' Sky lark l'~im (') lh floor). Shegun
2
ancl Sl1ipbnildlllg !'nlllc,1 _" 1 tl"""cha_ Onaka

3
l\US Kllullla Sllip"ord Lln;ll~cl ! '\ l(hulna Shipyard Lld" Bangbde;h
1\',,,,;,, Klmlnu 9201. BaL1glad~sh

4
MiS B1\\,"1(Dockyard - 01 .II'"., 1.5, DilKlIsl1a CiA, Dha!';a
5 MiS Dhak" Dod.:ymd ~nd d
Engineerinz Worb
I .' I" ii •., 1~~nmm_lreel,
S "",an, DIJam
1

I MiS }-I"'l"e Doc I; \'ard 1 1_K,m tail, kond 0, KCl'anigonj. Dhaka

6
7
MiS EeL;1 8: Doch'aL'd nnd I'\ 7S.I\lo'.ijkd. Ci}\, (4 til 1'1001')_
Engineel'ln';l WorL _1!j. , J_'h_"ka
MiS The K~,m;lla Slllp\)lllldcrs I
s Limit~d B
I
11S"5.lTjoLl road, nlmpmu, Dhaka
I. i

9
/\-'l/S M'ls"i Sllll'l11Lil(hn~
1 Engi neer;n g---,,~)~pan\ "m~J.'\ 15 1.B S han1LH'"gnr banr road, pollan.
1, Dhaka
MiS Le,at EngLtl~,'rit:g ,1[1C
10 Dockv,ml , II ! Char ).,Iil'c:'Bagh. K~l"anigonj. Dhaka
- ---
I>.I"-SSaH.lr khan D,,,'k),,,,1 '"
!

...-
i II
_ •... I
11
f'11,,-jl1e~ti"g \\"01''''; :
1711_ bl,l.:llibaz,ll', DIl'll,a

• 12 l\-'l/S starkar 1:llgln~"I'lIlf Ii B t'l,,,I,,,,,, b"z,,,, bond~r' FmaV,Ul~01\i

Works I! , - -
I M;S J-IlSh'pcd SlnpbtL'l,1il:g i--
13 and J-k,,,)' LLl,,;"CCl'Ll\g I ,\ 1113.l\10Iijhccl CiA, Dh~ka
1 CompallY Lilllilcd
14 '["I/S J)hoiPslwr -j\la';;;i~ Babl ,IuheberDock, )'arganriana,
__ E"s;nc'erng 1 __ . __ KaILg5'n-. Dlwl"a
15 ",liS HI ?\I~tinc l:l:ginccl'ing ill t Cilark'lligOllj, Kct'anigollj, Dhaka,
16 M,'S As!lJ Engilwen~ \\"l"-~' 13 - .! i CllJl' .'direr Bagh, Ker,migo'1j. Dh"ka
Ii MiS SalOlC'lTElL~E,~cl"ilH' II I (h,,:' ~.h['cl' Bagb_ Keran;guni. Dhaka
I 18 ,\[:5 1'001 Fngit1c'cTLll~ \\'",b -' H -I Ch~r "l"er llagh, KeLlI];!WlOj. Dh~b I
19 131 \\' T A i:\ 1141-1-D.ldoIlJIlc:l Ci A. Dhaka
?O MiS Bis111;lbh \)L)c'kyanl 1 II 1 K~\\[~il. kon<!J. KerJnigonj, Dhab
 1\-1IS Mad;n~ Engineering
21 Keram gonj, dhuh
Works B
MiS Jolojan E~g\\1eering B
22 Kernnigonj, Dhaka
Worb
MiS Ekias Brothers Pur gandaria, kcranigonj. dbaka
23 8
Engineering Work:;
- MiS f3~shu"dhorn steel I Bashundhara city, level 16,
21
Engincenng r~lnllleJ !J~anthapa\h, Dhnka

25
MiS Laki
Enginecring Works
DDCk}",d &.
U 134, keshob b~nmJ', gandaria, dhaka

MiS Bikrompur l.:ngineeruH1

26 \Vorks A
I C\;ar kaligonj, Keruni gonJ, Dhaka
\liS A K Dotty.n-d _ll1d \Vapda R()ad, Shiddhirgonj,
27 A
Engineering Works N~l'ayangonj
28 MiS ikbal Engineenn£...\,vorks I H I Char kali!wnl, Keranigonj, Dhnka
29 M/S Islum Marine Enginccl"lLlg I " I Kcr~\1JgoIlJ,
.. 1) Il~b
Works -----
MiS Tan,-i,- En~il1c~rLJl~ 1
30 - - 11 Kcranigonj, Dhak"
Works
MIS Shun;1 ]~ngmc,-ri"g 1
31 H KClolligOllj, Dbaka
Works
-
32
MiS
Works
Dohar Ell~LntLl"ln~
' =- ~_' i Keran,igcll1j,
'
D],,\ka

33 MiS S~kh
Engmeerill~ \\'c"ks
,\h~llc": I'l Ker~nigonJ. Dhaka

34 MiS The TeSl Engineering I Il

Work> I
351 ,',liS B1WTC (Dockyard 2) iB
\liS Dockyard ami
36 Lngineering Worb LlLllileu A i Son"kand~. Narayangc>nj. N,I, VY
MiS rna,1; Dockyard ,\: I
37 13 I 70, Lnkkhib"zJI'.Dh~k~
~ngilleerillg \V,)rls
MiS Klwj" r-
;::"k:II"I.1 ---,--
38 Engineel'ing WorksllOp B I I
Ch,llluh~(}n) Kt'rclmgollj Dhaka

39 lvllS 1a,im Engince,ing \\ [)rh \ H I KClanigoL1j, l)hab

i\fiS Delta Dod:\'ard and I I

40 Engineering \\"0r", ['jmilcd !\ i ()7i1, kakrail, Dhaka
41 The 1>"0111",-; r>1C'lail,'ch 13 131~i5-A,Sollthjalr~bari,OldDemra
Corpoletion Road
4' 1\1/S A LsarU dc!in DocK\'ard IB Char kau\\'a. N ayoni, Barishnl
43 !\liS Gel1~r:l1l)ock\~rd 11:\ ,ch~rbh~onl.
ker~n;'-'[)n-. Dh~ka
H'm Badslu j\tiah Docb-ard I.

44 :\
& En"Hl~"nng Works
45 I MiS Talllkdcr ll0ck)anJ ..\ I Char I\lll'el'hagb. keranigonj, Dhaka
46 MiS F,\l~ll1a Do,'~-d & B I Ram na~ar, rahimna'-'ar, Ru sha,

25()
 Engineering Works Khulna
MIS N~w Islum Dockyurd Char Mil'cl' Bagh, Per Gamlaria, South
47
Shipbllilders KeraniGon),
MIS Khan Dockyard
48 bliya, Baural, Potuakhali
En~ineering Works

49

50
MIS shahabuddin & Brothers

MIS p"rjower Dockyard

I"L'___
i I
kaligonj, keramgonj

BJ\VTA Narayangonj Temlinal{ East

Side)
Hossain Docky:ml & I A Char :VlircrBugh, Per Gandaria, 50mh
51 KcranlGoni,
En\;il1cering \Votks
MIS Bondor Dockyard &; i 13 BIWTA Narayangonj Tcrminal( East
52 Side)
El1'-'lneering Works
53 MIS \-ladina Dockynrd I 13 blig2!2J, kerani:,<onj, Dhaka

54
MIS Fil'oz Shll)bllildrs
Drvdock
An(~ I 13 I kaligonj, kerJnigoDJ, Dhaka

, Char l\Ilrcr Bagh. Per Gandoria, SQuth

55 !, A l<erallLGo"J-_
Dh~k" 13JO
------------- I ,-------- ChJr ?.lirer Bugh. Per Gandur;a. SQuth
M,'S Shajahan SilLpbuildcr" ,_\ Kcral1iGo~j.
56 I
and Engineers
i I Dhaka 1310,
57 MiS
Shllbuildcrs
The Llridpur
Jild Engillccl 5
I! '.\ _
I elm' Kaligonj, KeraniGonj, Dhaka

& I .\
58 I IvliS Firoz Shipbuild'S
- Char K~ligonj_ KeramGonj, Dhaka
Dockyard COlllp"n)'_- 1_. _
!vIiS Samala "" Sllllli l..rariLlc
59 ShiphuilJcr, 8: EngmcrilLg .'\ ellar Kaligollj, Ker<ll1iGonj. Dhaka
Works

60
MiS Sohh""
Dochard
Shipbuilders and
A
I II C --
_ 1':11\\ all, :'wrayangonj
61 MiS Chittagong Shipbuilders .'\ Karnophull. Ano\\'ara, ChlHa"on«
6)
-
MIS The lbgherh""l
Shipbnilders
III
,
I ~har .\firer Bagh.Shu\'udda.
. K~._"l1lGo"l-Dhaka
63 MiS !nlcrLlutioLl,,1 TI'lI,k :11](11!3 I b7. l1l11:ilhcd C/AI2nd Hoor), Dhaka.
Shipbuilders I 1 -
64 I MiS Hndo: S];ipbuildcrs =.:::::! ,\ Char Kaligonj. Kcr,H1iGol~. DhJka
MIS Ibrahim shipl1llild,-s and 1A
65 I Chnl' K~ligonj. KeraniGonj. DhJka
Ellginc~ring \\or~, !

GO MiS New Bogara ShipbllLldcrs I A I CharKahgonj, KcraniGonj, Dhaka

Char Kaligonj,Madin"
I\-1/S'I K Shiphllllcla" &.
67 Dockvard,Sllllvadda, KeraniGonj.
Enginering WorL
68 i\VS Pnr,ldise Sh, buil,kr; --J ..\ DhJkn
Char Kaligonj. Shm aclda.

251
 -
I KewniGon', Dhaka
l\1!S Khan Shipbuilders &
GO A Char Mirer Bagh, KeraniGonj, Dhaka
En~inccring "Vorks
MIS N Haqll~ and AssociatGs
70 H fatullJh, l\'arayangonj
Ud
Shirhuilder,
- I 1'uttlll"h,
71 MIS The Ea,lern
-A Karayani!0nj
]'lot 09, Hoad 0), Block B, Halishahar
.,
,. MiS "tarinc Tech Design and

I'
IJ/E, Chiltagong,
Shlpbuildcrs
(01711279779)
73 MIS New Rajba:i Shlpbuilde,-s !A Falullah, Narayan,goni I
MiS The Agunlak Cbr ,\llrer I3agh,Shuvadda,
74 ,\
Shipbuilders KcraniGonj, Dhaka
MIS The !':ew ",["del
75 Shipbuilders A Fatul1ah, Kat'ayangonj
and Engineering works __ -_.
76
I MiS
Shipbuilders and D(xky"rJ
Charkahgonj
.
A
Char KRiiganj, Sh\lvadda,
KcraniGonj. Dhaka

77
I MiS Pl'ogati
Dockyard
Shlpbllilders
&1 ., Char Kaligon,L Shuvadda,
Keral1lGonj. Dhaka

7S MiS joint Silipbuildcls , I

i
Char KaligoJ~. Shu\-adda.
KcraniGonj. Dhaka
-- ----
79
MIS Dlll BOll(Ihu Shiphllll,lLr,
and Engll1eering \\'cxh --_._,
I ;\ I Faltll~ah. Karayal1);'onj

80 11\1/S Chadpur SI" l' belileers 1,,-- Char Kaligonj. K"raniGonj. Dhaka
I\liS lJngherhJ.n Shipbuildcr> I II.
S1 Chal' KJilgonj, l(el'aniGonj, Dh~ka
and Dockyard !. -
MiS A ROllf Shipb:I;ldc'"
82
Engineering \\'orb
'\ll(~J~_CharKallgonJ, KeramGollj. Dhaka

;\l/S Amal,,'l \brtllc I

Char \lircl' Bagh.Soulh KcraniGonj,
83 Sbipbuil(kr, & Engil:l'ling I t\
Dhaka
Works
------- ------
MiS Agrani Shipbuilclcls

-'9
Ilhzi l\b,kel, Ch~r Kalil'olli,
84
Dockyal'd
and 1_~3 Shu\'adda, KeraniGon ,~Db~ka
85 MiS Al Amin ami D"ch~"i I ..\ I
M'S R,,;,el Sh,pbml"", ,mb lIl" S,',," ''"Sh, Keral1lGonj, Dhaka
Sri
Englllcllllg \\ 0,k5 __ J~ _.131 0
;\li5 Oce.uHc Shlphuildl'" ,"ld I \ I" I 1 \
87 E
nUlilctrS
1\1/S .-\mj"d
-------
i-tos"'in
I ',.dll"'P III l,' nOWard Chlllagong

Char o.'lJrcr Bagh, Per Gamlana, SOLHh

II
SE
Shinbuilders
1\1/S l"cw 111S111iil~h
" I KcrJniGonj,
Char \ llrer-
Dlwka
Bagh. 1'"r Gand3ria. South
89
Shipbuilders - ." , KeralliGoni. Dhaka
l;1/S M()'~I'.lll Shipbuildcrs
Char 1\lircr Bagh. P~r Gandaria, South
90 and A
KCn\niGonj, Dhaka
Eng;ncring Works
 91 MiS Afroza Shipbuilders and l_.', Fi1lullah, Narayangonj
Dockyard company _
MIS Siraj Shipbuilders and'
92 A Chilr Kaligonj, KeraniGonj, Dhaka
Engmeers
93 11\115 K S B Engineenng and '\ Char Kaligonj, Ke,aniGonj, Dhaka
_ Dockyard
94 Jl,liS J M C shipbl.'llders and A
ratullah, Narayangonj
Engineers
532, Pearc.Bagh, Bara /l,loghBuar,
95 MiS Tllrandis lntcrnatLonal A
, Dhaka, 0351631
96 MiS Sharif shipbuIlders , ., I Char KJilgo:lj. KcraniGonJ, Dhaka
Char Mircr Bagh, South KeraniGonj,
97 MiS Shalmaz Shlpbuilacrs

MIS Pnme Dnc\vard and

I'
I' I Dhaka 1310.
Chal' ,\,Jirer Bagh, South KcraniGonj,
98
shinhuJiJers ConmUl~v _r Dhaka 1310.

99
~l/S 50mh Asian shLpbuilder,
and .,
Enl;lncers

100 Il.r/s... Desh ShipbHik'crs '-----1 13

Char Kalig()nJ.SI1l1y~dda, KcraniGonj,
Dhab
10] I j\1IS MOFfee shipbuilders B
Ch"r "lllcr Bagh, South KcraniGonj,
Dhaka.l310,
Ch,lr itllr~~ l3agh, South KeralliGonj,
102 MIS \'uggok\ll shipbuikb,; 13
Dh"~~a 1310,
Char Kaligonj,Shll'-nd,iJ. KeraniGonj,
I 103 M.'S l'<!dma Shipbuli:krs I B
Dh,lka
Haque and 1.,,1_"_"_;-1-_1',', Cbr r>llrer B~gh, :,ollth KcrJniGonj.
1041 MiS
shipbuilders _ Dhaka 1]10
105 I\[iS J)c'ckY:lIct and! '\ eba,- /l,lir~r Bagh, South KeraOliGonj.
Engineenng 1\ orks Limite<' _ i 1 J)bka 1310,
106 ;'liS And shipbul1dc'ro III
1>.115 . !'.1c)LllC",bhi!
107 Shipbuilders al1ci En:;:ineriLlg ..\ Iii, l\lotljheel CA. 3 rd Floor, Dhaka
Works
-
MiS Tumg shiphuilder; ami [ Char Mirer Bngh, South KeraniGonj.
108 A
Englllccnn>; \\'orh I DhJh:J 1310,
109 1>1/S:,h~hwj shipbllild~rs l1nd Char ]l,lirGrBagh_ South KeroniGonj, 1
Enl'ineenng Com',,,"\, 1 Dh~kG 1310,
MiS Arif Dock\'~ni &
Ch~r ]l,tirel' 13Jgh. P~r Gandaria, South
110 Shipbuilders LngineriLlg '\
KeralliGonj. Dhakn
Works

111 M/S Shumlorban ShLpbtLLlder, I /\ Char l\l;rer B~~h.Sh\l\'acldn,

l<er~n;Goni. Dll;lka
I 112MiS Bangladesh ShLpbuLidcrs 1 B Clwr ShiLldur. Polash, Nor Shil1~dhi
113 MiS Parg,,,,,br;,, ShIPb.~I_L!d~r,
_ .~\ _ Char ,\lm,'r H:lgh, Balm math.
 KeraniGon', Dhaka 1310.
114 MIS Hawlader shi builders A Fatullah, Nara an on
115 MIS Niamot Shi builders B I A"armagar, KeraniGon', Dhaka
Char Kaligonj, Per Gandana, South
IIG MIS Kauli Bera Shipbuilders il KeraniGo~;, Dhaka
!\evigation
- Char ;Vlirer Bagh, South KeraniGonJ,
MiS L Rahman
117 B
and Shlpbllilders Dhaka 1310,
Cbar Mirer Bagh, Per Gandaria, South
118 1\1ISAnika Shipbuilders , B
KeraniGonj, Dhaka
Char l\1irer 13a~h. Per Gandaria, South
119 Tauhid Shipbuilders
I" KeraniGoni. Dhaka
Char Kaligonj, Per Gandana, South
120 MiS Vandaria Shipbuilders B
Ker<lmGo~i, Dhaka
-
Char Mirer Bagh, KeraniGonj. Dhaka
121 Shohe1 Shipbuilders R
1310.
- Clwr Kaligonj, South KeraniGonj,
122 Shameern Shipb\nlclers n Dhaka 1310.
Char Mirer Bagh,Shuvadda.
p-
--
124
AM Shlpbuilders
Khaja Dockyard and
B

B
KcraniGonl, Dhaka
Sm,,>,i complex, parara road, Barishal
ShipbuLldcrs

254
 ANM:X J

Consolidate List of Bangladeshi Shipyards with Important Information

(On the basis of Field Survey)

51 Name of Location & Telephone & ,","'ebsite & Name ofthe

No <h, Address of the Mobile email Owner/Manager
Shipyard ship}ard i\umbcr & Contact
Number

E:\isting B~ngladcshi ShipYllrd

I Ananda Ivlcghna Gilat, "lel:+8S0-2 \\'\Vw,anandacr Abdullahhcl Bari,

Shlp)ard & Sonargaoll, 9352031 3, our,biz Ch~imlan
Slipways Narayanganj 933060'J, ananda@'bdmai 10/1, City Heart
Ltd, 9331510 Lnet 67. Naya PaHan,
Dhaka,
2 \Vestenl Kolagaon Tel:' SSO-31 w,,",v.wms,eOlll Md. Sakha"at
Marine },'o- 4 712177. ,bd Hossain,JvlD,
Shipyard !(olagmm 720579> wJns"i:hbl, nd HBFC Blli]din~
Limited Unum M,01711Sn7 (Ground Floor)
Pmiya, 05, liD Agrabad CIA
Chiuagong , Cilittagong,

3 Kh\llna i Khulna i Tel:.~SSO-41 w\vw.ksvbn,co Commodore S M

, Shipyard Ltd Slupyard Ltd,. i nons. m Imran, MD
(KSY) Bangladesh ln07J'.J. l'onlaetl@ksyba
.com
Bangladesh Navy,
Kl1\l!na.
l\a,'1', Kllll1n<l h:-.: +880-,\1-
9101, 72U'i-O-l-

, Highspeed
Bangladesh
KawLLlc. Tc1.8S0-2- WW\\ .high"pcc Md M~hmudur
ShipbllllJmg Konda, 71(2791). d-gnlllp.com Rahman.
& Fmullah. 95(,lG07, hig,hsoecd@bir Chairman,
Engineering ",~ray"~gan.i 95Mi3-l8. dsdhk.coll1, 103, Mc>lijheel
Co,Ltd Fa'-: 88-02. CiA, Dhaka
9566343
5 KamaliLly 944/1\ Sll'and TeI'880-31- ,,-ww,ksblbd.co Engr M A Rashid.
Ship yard Road. 616869, !D MD, 2 strand
(Pt\' ) M,~hirghm, G27SGG, kamafulv@ksb Road, MaJhirghat,
Limiled Chillagong- 2852475, lbd.com Chillagong.
4000 M:OI711-
725747
6 Chnlaggng East Palcng" 'I el -1.88-031- "',,"\V.eddt go\', Engr. Enall1\l1
Drv Dock Chillagong. ?5111110. com Baqui, MD,
Ltd. Ban ..•bdesh 25Qllll dndock bd@" Eost Pa\en,,~,

255
 rnail.com Chiltagong.

7 Dockyard & Sonakanda, Tel:+880-2- www.dcwhdco Capt M A Hkan,

Engmeering Nara\'an"anj
, 0 '
7661026, ill MD,
WOl'ks Ltd. Fax' +88-02. dcwltdbd@yah +8801727612389
Bangladesh 7660127 oO.com
Na\'~
S Dhaka Charmirerba Tel:+88()-2. www.dhakadoe Gazl G Rabboni,
Dockvard & gKeranigonj 7116973, kyard,c()m Chaimlan,712
En!!ineering Dhaka. M:0171151 infori2'dhakad Larmini Strect,
Works. Bangladesh 2918 ockvard,coJn Wari
Dhaka.

9 l\'amyangmlJ i'abiganj, Tel +88().1. salatiJ@citcchc Shah A Lalif

Engineering Bander, 9354993-4, hO.com 1\10, Skvlark
& Shipyard Narayanganj Point (9':' Floor),
Lcd 24/A, Bijoy nagar,
Dhaka,
1\1: 0 1716531505
10 Bashundhara KJwt<lli, :-'1: h~clbd,'~vahoo. Mr. Sauad
Steel and konda, OI'i5J488--1-6L com Bashundhara city,
Engilleen~g Narayangal~ 01$19272713. te\'el 16.
ltd, 01730018550 pamhapalh, Dhaka
01552488461
II Chittagong Kolagnon Tel: +88-31. mmbUlld,'iVgma I 1\1dMuhhubur
Shipyard Ltd No- 4 715513 11.com Rahman, I\fD
Kol;lgao'L Lb:+S~ 31- H-517i3, T.-l(),
UnioLl 71--1513 BaridharJ DOHS.
I'atiya. Dhaka, Jibo~
Ch,lla"on" Bima bhaboll, 56
" " Agrabad CIA,
Chilta'-'one:.
12 Ho,sain Char "dir~r Common Ha,!' Md Babi
Dockyard 8: 1hgh, Per Andres, of Owner,
Engineering Gandari'l. Doch-anJ Manager Mobl1c--
works Somll Own"rs 01711682045
Kcralliganj, A<,sociatlOIl,
Dh~ka j~sralli 9.a.~li,
13 Agragoti Char Mire!' Common Badsha Miab
Docky"rd 13"gb. Per Addrcss Gong
G~ndana. 0" ner,
SOllth Managcr Ivlobile--
Ker~[lignnj. 01912083891

14 Bisl11illah
Dbab
Kawtl1c,
Il
COl11mon Me:!Helalllddin
Dockvard Konda, SoulI, ~
t\e:!dress Owner,

256
 Keraniganj Manager Mobile--
Lcd
01711229357
01722355933
K<lwtilc. Common Common Address
15 Haque
Konda, South Addrcs~ Babi Shaheber
Dockyard
Kcraniganj Dock, Char
Ltd
Kaligong, Mob-
01719319626
Char Mirer Common Md Amanllllah,
16 Parjawer
Bagh, Per Address Owner,
Dockyard
Gandaria. Manager Mobile--
South 01617816225
Kcrunigunj.
Dhaka
Char Mirer Common Md Hafizuddin
17 Lucky
Dockyaru Bagh. Per Address 34, keshob
Gandaria, bunurji, Gandaria,
South Mobile--
Keraniganj, 01190151697
Dhaka 01715130935
eb"r l\lirer Conunol1 Hajl Habibllllah.
18 General
Dockyard BJgh.I'cr Address Owner,
Gund"ria,
Manager Mobile--
South 01671416113
•
KeraniganJ.
Dhaka
Farool] Char Mirer Common Md Ferdoush
19
Bugh, Per Address Kh~'1,Owner, 70,
Dockyard
Gmldaria. Lakkhibazar,
SOll111 Dhaka
Kc",nig~I~. I
Dhaka ~
Salmr Khan Char Mil'cl' Common M<.lShakil Khan
20
Dockyard B"gh. !'r, Aclllres" 70,lakkhibazar,
GandaCla, Dhaka
SOll1h
~cl':lnig.mj. I
21 La! I Dh~ka
Char !,,\ile,
I Common !\-IllHaji La! Mia,
engineering Bagh. Per Address O,'l1er,
Gamlana, Manager Mobile--
Dockyard
SOHlh 01711179363
Keraniganj,
Dhaka
Cilm Mirer Common Golam Kibria
22 AQa'1'tlr
D~ck,urd Bagh, l'~r I I Address Tip:!,

257
 Gandaria, Owner,
SOl.lth Manager Mobile--
Keraniganj, 01711349258
Dbaka
23 M<ldina Char Mircr Common Md Nasiruddin,
Dockyual B~gh, Per Address Owner,
Gundaria, Manager Mobile-
South 01914884488
Keraniganj,
Dhaka
24 Shahabuddin Chm MLrcr Common Haji Md Shah
& Broth~rs Bagh, Per Address Alam
Dockyard Ganda[l~, Owner,
South Manager Mobile--
Keraniganj, 01711035778
Dhaka
25 Byazid Char !>'lir~r Common Haji i\ld Abul
Dockyard Bagh. Pcr Address Hasnat
G,mJaria, O"ner,
South I lvlanager 1>.lobiJe--
01715795994
I
Kcranig,l11j, I
Dhaka 01711457284 I
26 Comillah ehor Ivhrer Common H~ji Md Abl.l1
Shipbuilders B~lgL. Pcr itJdrcss Hasnat, Owner,
& Dockyard Gam1aL"ia, 128;5 Ulon road,
Engincering South Ramp"ra, Mobile-
Works Keralllgal1~. 01716544163.
Dhal<a I 01711681251
,
27 Dhaka Char Mirer COn\lllOl] Late Haji Md
Shipbnilders Bagh_ P,'r Addrcs, AbdLLSSatta!",
& Dock,ard (im,duria, O"ncr,
l\lanagel't\tobilc.
Sonth
I(e,,,niganj. II 017\2838186 I
Dh.Lka I
28 MadariptLL" Char ~1ircr Common Shahldulls1am
Dockyard & J3:lgh, Per Address Bhuian,O\\ner,
EnglIlccring Gandar;a, ;""lanager Mobile-
Works South 01715795994
Kcranigallj,
Dh~ka
29 Nazlr Ch~r M,,~r I Common Md NazirHossain
Hossain lhgh, Ver Address Owner,
Moyul' Gand~na, Iv1anager Tel-
Dockyard SOllth +88-02-7770205
Ker"Olg"'~.
Dhaka

258
 30 Asiatic Char Mircr Common Md Naziur
Dockyard Bugh, Per Address Rahman
Gandaria, Owner,
Somh Manager Mobile--
Keranig,ll1j,
Dhaka
31 Prince Char Mlrer Common Haji Md Abul Hye
Dockyard 13agh, Per Address Owner,
Gandaria, Manager Mobile-.
SOlllh
Keramganj.
Dhaka
--
32 Bang Line Char Mirer Common Md Nurullslam
DockyarJ Bagh, Per Addres, O"ller,
Gambria, Manager Mobile-.
South
Keraniganj,
Dhaka
--
33 TaJukdar
Dockyard
Char Mirer
Bugh. Per
I Common
Address
Md Mahbl1b
Talukdar
Gaudm;". Owner,
SO\lth Manager Mobile-.
Keranig.mj, 01715125927
DhJka
3T Olprilz Char l\llrcr Common Md Mizanur
Dockyard 13agb. Per Address Rahman
G~ildaj'ia, Q"ner.
South Man"ger ivlobile--
Kcr~Hligatlj.
Dhaka
3T City Char ,\lircr j::Oll)))1.Q!l Haji \<ld Abu!
Dockyard Hagk Pe, Address Hasnal
GandJl'iJ, O\\.ner,
S"Ulil Manager Mobile--
• Kcraniganj.
DluKJ
36 Farhan Char)\l1rer Common Md Golam Kibna
Dock)ard Hagh, Per Address Tip", Owner,
Gandari~. Manager Mobile--
Soulh 01711349258
Kcranig~nj,
Dh~k~
37 Azim Char Min:r Common Md Azim Box,
Dockyard Bagh, Per Addrt'~s Owner,
GandariJ, Manager Mobile--
SO\lth

259
 Keraniganj,
Dhaka
38 Uzi, Ali Char Mir~r Common Hajl Md uzir Ali,
Dockyard Bagb, Per Address Owner,
Gandaria, Manager Mobile--
South
Keramg'lnj,
Dhaka
39 Ali Garments Char l\lirer Common Md Abdul Ali,
Dockyard l3agh. Per Address Owner,
Gandaria, Manager Mobile--
S0\1th
KcranigaLlj,
Dhaka
40 Sagor Char Mir~r Common Md Mukul
Dockyard Bagh, Per Address Ha\vladcr, Owner,
G,llld,ll-ia, Manager Mobile--
South
Kcraniganj,
Dhaka
Char Mil'er Common Late lhji Md
Hazl lhdsha
Bugh. Per Address ))OO,11a Miah,
Miah
Gandaria. Owner,
41 Dockyard &
South • Manager !vlabile- •
Etlginccring
Kera11lg,mj,
Works
Dh,~~a ,
-----
42 J:ast End Ch"r \llr~r Commo]] 78, i\[oliJheei, I
Docky,l[d Hag!~.I'~r Addre" CIA. (4'1\ Floor).
and C.l11dariil. Dhaka
Engineenng SQllth ;vianager l\fobi1e--
Works 1\.1 Keral1lganj,
Dhaka
43 Ddta eh"l" MireI' CQmm,m 67/1, kakrail.
., Dockyard B:lgh, Pel" Address Dhaka
"d Gand"ri~, 1\1anager jI,'lobile--
Engineering SOlLlh
\Vorks Keraniganj.
Limlled Dhaka
B1WTC 1- Dhaka, 5, Dilkusha CIA,
Dockyard-l
" &'
2-(\ nra) an 3"nj
._~
Dhaka

45 AK Wnpdu Roau. i
Dockyard Shiddllirgot~, I

I
and l\:lraYJngol~
Engineering
Works

260
46 Hossain Falllllah,
Dockyard Narayanganj
and
Engineering
Works,
47 B1W1A MoJ-01711408308
Bondar
Namyanganj
Dockyard &
T crminal( East
Engineering
\Vorks I S".le),
l\ara\'an~allj
48
~------
B1WT '\
,

K :n-"yang:lllj
Parjowcr
Tcrminal( [ast
Dockyard
Side),
Karayan"ani
49 Shawda
I3lWTA Kazi Zahirul Islam
Narayanganj
Dockyard &
Tcnnirw.l( East
Engineering
Side),
Workshop
N~rajJngallj
50 Pnme Bell:Lh area, S~idm Rahman,
Shlpping \\est b~nk of MD
Lmes. Kjrlonkhob.
Sund"rban Barishal ,
Navigation
Com)lJny, I
51 Crescent
Navigation,
I Bclt~ln area.
\\ cst bank ()(-
Golam Ma\\ la,
o"ner
Barishal Kirtonkhola
J'l\'cr.
B,lrislwl
52 Fatemil RamL1aga, .
Dockyard & RahiL1lLlag~r, I

53
Engineering
Works
Khaja
RU)lsha.
Khulna
Surm'i
I I I
Dockyard comrie:-,
"d Pa,-ar" road,
,
_.,. Shif'buildm Ihnshai

I
Char bl'" :1.
Afs~nrddill
Nay"ni.
Dockyard
BarLshal
55 Kha~ Kaiiy".lJ,nrfai,
Dockyard & I'ot tl"kh" ii
Engmeering
Works

'"
Note:
Common Addre<;s of Dockyard O'~ners Association. Keraniganj:
Bahi Shaheber Dock, South Keraniganj, Dhaka
Tel!Mob no: +88-01719319626.

Surfacing New Bangladeshi Shipyard

56 Khan H05cndi. Tel:8S0-2- "ww.kbgbd,co Md Enamul Kabir

Brothers Gazaria.MU1l5h 8332069, m Khan, Chairman,
Shipbuildlllg iganJ, Dhaka 8332108, kbsbl@kbgbd.c Shaan Tower (5th
Ud M:017131486 om floor),
31 Chamclibagh ,
Shanlinagar,
Dhaka.
57 Mak GazO'n<l, Tel: 880-2- \V\vv,',makgroll House # 30, Road
Shipbuilding Munshiga'lJ, 9888329, I)bd,comicontac II-28, Block K,
Dhaka 8825663 I,htrnl Banani, Dhaka
ll1fo(iemakgrou 1213, B~ngladesh.
ybd ~om
KY Steel Chota Kllmira. Td:88(1-31- \\'W\\ .kds","OHj2, Md lahirul I,lam,
58 MilL, Ud Sllakllnda, 7lU453, nel MD, Agrabat,
ChillagQng, 710-1-19, Chittagong,
lbngladesh. 710493 kv factGJkds£r
~---==-~
OUD.nct
59 Meghna Ga".~rLa.l\'J lln,11
Group ig'll1J. J)hJb
Shi~YJrdUd ,__ .
60 Runner Gazaria. I
Group of \-lunshlganj, I'

ComnClnies Dhaka
61 Sea RcsC1urcc
Shi yard
Pntiya,
Chlllagong
I
62 I hangs Paliva. I
fjsh~rs & Cl,illagong
I .1'

ShiRy.ard ~ ._.
G3 Bengal G~nri~,
Ekclnc Com lvt";lshig<lnj.
Ltd Dhaka
64 ElilE Group Gaz~ri~,
Shipyard Ud, /vlunshig<lnj,
Dhaka
65 Lub-RRd Gazmia.
Bangladesh i\luIlshiganj.
Ud Dhnka
166 Marillmu8 G'17ana.

262
 Shipyard, Munshiganj,
Dhaka
67 South !\1arinc Gazaria,
Dockyard Munshiganj,
aml Dhaka
ShipbL.ilder
68 Desh
Shipyard Ltd,
Gazaria,
i\!unshigan),
I
Rang, Dhaka
Group,
Falmu,
I
69 Gazaria,
Jinnah \1 un.shiga,,),
Dockyard Oh~b I
---

263
 ANN1';X K

Consolidate List of Bang IIIdes hi Shiphuilllcrs/Contractor (On the Basis

ofField Survey)

Name of "'arne & Mob j'\OC

51 Location & Communication
Shipbuilders Nnmber orth~ From
N" Firms "' Contractors nos
Address

l. Md l\'azmul Char Mirer 13~gh,Per Gandaria,

MIS Haque SOll!h Kcraniganj, Dhaka
Haque Yes
Shlphllllders
-01711288016
2 1-J~,ii;\'ld Fal'ooq Ch~r Mirer Bagh, Per Gandaria,
1\1/5 Amanat SO\lth Keraniganj, Dhaka
Boga Yes
Shipbuilders
-01819215419
] Iv[(]Shahjahan Char M,rer Bagh, Per Ga~daria,
J\1IS Shah lahan South Keraniganj, Dhaka
- 01819488266 Yes
Shipb\lllder"
4. Intemational Md Anwar Char Jl,lirer Bagh, Pcr Gandaria,
Trade & 1-1051""11 Ycs SOUlh Ker~niganj, Dhaka
Silipbull dec" __
. ..~--
-01722G65S1\1
Char !vhr"r Bngh, Pcr Gandana,
5.
",l/S P"r"dise South Keramganj, Dhaka
~1:'~dUIl."LlW[j Yes
Shipbuilders
.OJ71406~S31
G. J\1'S
,
Sh' b 'ld
SI10"n,
bh' 1j\1d i\bdus
IShoh,u",
I .
\e:;
Cllar Mir~r Bagh, Per Gand~na,
South Kera111ganj,Dhaka
. Lp Ut CIS -0171702t'1%
7. .. JiMdSalHll ' Char Mirer Bagh, Per Gandalia,
1,,1/S . l',mhc'l .nJ7tl-l57284 Ycs Somh KeralliganJ, Dhaka
Shtpb\l1k.ers I
8. ldcl.\bdul Char Mm;r Bagh. Pcr Gandana.
MiS Fil'oz South Kemniganj, Dhaka
Koc1:I' Yo>
Shipbuilder,
9.
-01715095829
!\Id Saiful Islam Ch"-r Mircr B~gh, Per GJndari~,
,
MiS Ri(\o)
Mint\l Yes Soulh Kcraniganj, Dhaka
Shipbuilders
"l)j1l1855(,54
Ivlcl:\llaf Ch,lr JI,(irer Bagh, Per Gandaria,
10 MiS Somota &
Ilosss,un
Shllmi \' es SO\lth Keraniganj. Dhaka
.01717470051\,
Shjpb\lild~r';
Ot712S5053G
II M/S the Md LJkir I Char Mirn Bagh, Pcr Gandarin,
13agbarehal l'lo"ain Ycs South Keralljg~nj, Dhab
Shmbuildcrs . - 01710255539
,,1d kh"n Char ?vllrer Bagh, Per Galldaria,
12. 1\11S Kh:",
Sluhecd Ycs SOll1hKeraniganj, Dhaka
Shipbuilders
- 01716525741

264
 Md Abu Syed Char Mirer Bagh, Per Gandaria,
13 MiS Pargandaria
_01711979073, Yes SO\lth Keraniganj, Dhaka
Shipbuilders
01715066893
!Vld Enayel Char Mirer Bagh, Per Gandana,
14 MIS Dui Bandu
-01711784796 Yes South Keraniganj, Dhaka
Shipbllllders
~
Md Asraful Char Mirer Bagh, Per Gandaria,
15 MiS New Bogra
A1JlD Mimoo Yes Soulh Keraniganj, Dhaka
Shipbuilders -01711814635
IVld Nurul Amin Char Mirer Bagh, Per Gandaria,
16 MiS K S 8
-0171133743(, Yes South Kcraniganj, Dhaka
SilipbUlldcrs
~
r-.ld Mah'club Char !'>'lirer 8agh, Per Gondariu,
17 MIS Il.Irag
Abm Yes South Keraniganj, Dhaka
Shipbullclcrs _01711220696
,\.'ld Abdur Rauf Char Mirer Bagh, Per Gundaria,
18 MiS A Rallf
-0188001053 Yes South Keraniganj, Dhaka
ShIpbuilder,
M<l Amin\ll Cbar Ivlirer Bagh, Per Gandaria.
19 MiS Al Atl1i~
Isl"11l y~:; South Kera[]igal~, Dhaka
Shipbuilders "lll71 16'JGl i4
Mel Nlir Char ;Vllrer Bagh, Pcr Gandaria,
20 l\l/S lbrahill1 YC5 SOCLthKeranig~nj, Dhaka
IIlobatl1lnc'ci
Shiphllilders ,
21 MIS
_0171201SS17
,\Iel Badsba t\lia
Rosel _ 01716~,)1521
i Char 1>'!ircrB~gh, Per Gandana,
Sonth Keraniganj, Dhab
Yes
Shipbuilder' , --
~ ,,,1<1
Ashral- Cbar Il,'lirer Bagh, Per Gandaria..
22 MiS the AgOlltUl..
Shipbnilders
-017114.\7--109 I y" Smlth KerunigallJ, Dhaka

13
MiS ,\
Shipbuilder;,
}'l 1'10
Shak~
-017124(,-1901,
"1"""'-1 '
)e,
Char 1\1irer BaQh, Per Gandaria,
South KcrJniganj, Dhaka

0172010-1777
Char Mil'er Bagh, Per Galldaria,
24 \liS 1\c\\' Al I\td 1\1dehUnm1
1
Manwfl l\liah Y~, South Kcraniganj. Dhaka
Shipbuilders _017190'J9:\J,S
--- Char Mirer Ba~h, Per Gandaria,
'5 MiS ALl""el "Id :\Ill"
Ho,salll Hossain '{es South Keraniganj. Dhaka
Shipbuilders _()l7\6~15J07
~
Ch~r Mircr Bagh. Per Gandana,
26 MiS the Fmidpur 1\ld habibur
Rahm~~ y" SOllth Keramg~nj, Dhaka
Shipbuilders -0171643-4337
Char Mirer Bagh, Per Gandoria,
27 MiS New Razb~rL i\ld Khabil
lJclcim Yes South Kcr~niganj. Dhaka
Shipbuilders -()171147\11S

265
28 Mel Sckander Char Mirer Bagh, Pcr Gandaria,
MIS Baghcl'hat South Kcraniganj, Dhaka
AIL Yes
Shipbuilders
-01711344748
29 Md Ahmed Ali Char Mirer Bagh, Per Gandaria,
'"S
Shipbuilder5
Nayon
-01712038172 N9 South Keranig,mj, Dhaka

30 1\1dAnd Char MireI' Bagh, Per Gandana,

M/S Azad South Keraniganj, Dhaka
Mondol Yes
Shipbuilders
-01711058218
31 /1,1/5 Seven Md Abdur Char Mirer Bagh, Per Gandaria.
Brothers Ra,hid No South Keraniganj, Dhaka
Shipblllldcrs -017121351)45
32 MiS Md Slliraz Char Mirer Bagh, Per Gan<laria,
Slnraz South Keraniganj, Dhak"
-01711733523 Yes
Shipbuilders
33 ldd l',joancm Char MireI' Bagh, Per Gandaria,
MIS MOJnem Sm,lh Kcraniganj, Dhaka
-0171 1'J8621 I Yes
ShlpbtLilders ,
34 MIS }'ld Ihbul Akon Char !"lirer Bagh, Per Ganclaria,
De,h S(HLthKel'aniganj, Dhaka
-01710499732 Ye~
Shipblllldfrs
Jl,ld Sira/tLl Char Mirer Bagh, Per Gandaria,
35 M/S Momenshahi lsl~m South Keraniganj, Dh~ka
Yes 67, Motijheel C/ A, 3 rd Floor,
Shlphuildcl's -01711787725
Dhaka
;'ld ,\<1,11.lali! I Char Mirer Bagh, Per Gamlana,
36 ;'l/S
I Shiphulldcrs
1
Shold
.
_Ol']'l33660G I l\o i South Kel'aniganj, Dhaka
I
37' ;,vliS th~ Md Abdul ~ Ch~r -"direr Bagh. Per Gandaria.
KUl"\llbhpur ll:lrck No South Ker;lniganj, Dhak~
Shipb\lilde,~ _u1712150273
-------,- Char M,,~, Bagh, Per Gandnria,
3g1"liS ~lama l\ld R""ul !
South K~r~niganj, Dhaka
Vaghncy An1;n R.\shu ' )\0
Shipbllllder; _01715550345
39 M/S ShJkll
Md Dilip \l1ah Char Mircr Bagh, Per Gandari~, I
_OI716325S73 K[) SOllth Kcr~niganj, Dh~ka
Shipbuilders
40 MiS 1\1d Dcl\\"Jr Char Mirer Bagh, Per GandariJ,
Dcl"~r South Keratlig~nj, Dhaka
Hossain Yes
Shipbllilders -017125(15)]
41 MiS i
\0 _ - i>.ld.la/mol
,. OolJlll '\t d- Yes
ChJr l\1ir~r Bagh, Per Gandaria,
Soulh Kcraniga~J, Dhaka
St-h"ld 1,1el~
111'UI crs 1 -()119'llP6939
ChJI" M:rer Bagh, Per Gandaria,
MiS
4' Shanctpur
Shipbnilders
the ,del Sholl Jabl
-017l(,27.\O60
--
lYcs
Soulh Keranig~llj, Dhaka
 1vld Ararat Char Mirer Bagh, Per Gamlaria,
MiS T K
43 HOS5ain Ripon Yes South Keraniganj, Dhaka
Shipbuilders
.
Shrec Taposh Char Mirer Bagh, Per Gamlana,
44 MIS Chadpur
South Keraniganj, Dhaka
I Shipbuilders Chandra Ray
-0171529)6':>4 ._.
y"

Md ])111 15lam Char Mirer Bagh, Per Gandaria,

MIS Arif
45 .01711908381 No Somh Keranigaru, Dhaka
Shipbuilders
l\Id Esh~q
MiS Char Char Mirer Bagh, Per Gandaria,
BislLwaslJ
46 Kaligong Yes South KeraniganJ, Dhaka
-01712008641,
Shipbuilders
._-~--
01776219281
I MiS Nc,v Mel Iblml Char Mirer Bugh, Pcr Gandaria,
471 Baghcrhat Moll"h No South Keraniganj, Dhaka
Shipbuilders -01712134670
11\1/5 the Mtl A!)l!l" Char Mirer Bagh, Pcr Gandaria,
48 PalLmkhah Salam No South Keraniganj, Dhaka
Shl1lh"ilder, -018]9879797
Shree Shuhash Char Mirer Bagh, Per Gandaria,
MIS Ivlyelli
49 balm Yes Smllh Keraniganj, Dhaka
Shipbnilders
O17P15')2G~
1I,1dAbdu, Char Mircr Bagh, Per Gandaria.
MiS NatLonal
50 Rahman \'e8 SOlllh Keranigallj, Dhaka
Silipbnilders
-OI<)1"5315'!~

,.,
.
lvUS
Shipbullders
_\ii-oo Md Amm i\liah
-01712552713 Yes
Char Mirer Bagh, Per Gandana,
South Keraniganj, Dhaka

I\-'lclRil"1iudulL1 Char jl,lircr Bagh, Pcr Gandaria,

,~
'0 M/S lhe EaslcrJL
Shipbuilders
-01711536055 Yes South Kcraniganj. Dhaka I
.._-- I
l\'lcl Shah .-\iaLll Char Mire,' Bngh, Per Gandariu,
:-"'1/S \'haigoklll
53
Shipbuilders
-1)1712136187 I Ycc South Kernniganj. Dhaka

MIS Sh~mlm
l\ltl Shamim Char M,rer Bugh, Per Gandaria,
,
54 -0171'/19-1683 )'\0 Soulh Kernniganj, Dhaka
ShlP btli Itlers

l>ld Svcd Ali Chm' .\1ircr B~gh, Per Gandana,

M/S Prngoti
55 -017114-'1-3837 Yes Soulh Keraniganj, Dhaka
Shipbuilders
.---
'\ld l-lanUl ar Char Mirn Bagh, Per Gandaria,
MiS )Ylamun
56 l<ashid No Soulh Kcraniganj, Dbka
I Shipbuilders .
--
,\-lei RaG,!ul Char Mirer Bagh, Per Gandalia,
MiS JOi"l
57 l,ltllll y" South Kcraniganj, Dhaka
Shipbuilders
-(l171 1679253

267
 Shree Babu
Char Mirer Bagh, Per Gandaria,
MIS Vandari3 Du1a1Krishna
58 No South Keraniganj, Dhaka
Shipblli1ders Da.,h
-01712094963
Mel l\iyamot
Char Mirer Bagh, Per Gandaria,
MiS N1Y,lDwl ]-Jos,ain Hablu
59 y" South Kemniganj, Dhaka
Shiphuilders .01717052048,
OI71246?298
Md Sola:man Char i\llrer 13agh. Per Gandaria,
MiS Chittagong
60 -017116(,3345, yO' South Keraniganj. Dhaka
Shlpbullders
O! 199424700
Md Salim Char M'Ter Bagh, Per Gandaria,
MiS Khatlilhera
61 Fiwkir Yes Somh Keraniganj, Dh~ka
Shipbuilders
-OI71!i91fPO)
MiS Nell' Nle!HalLzul Char Mircr Bagh, Pcr Gandaria,
62 B'Sm,llah Islam Yes South Keralliganj. Dhaka
Shipbllilders -01711936417
Me! Nur i5!:lm Char Mirer Bagh, Per Gandaria.
MiS J\ur Islam
63
ShlphUllders
- No Soulh Kenl11iganj, Dhaka

j\ld .c.loinuddin Char Mlrer Bagh, Per Gandaria,

MiS P,ldhu
64 Shekh Ye, South Keraniganj, Dhaka
Shipbui1dcrs
-01711227S89
'11,1'5
, '_I L\'ldSall:uL:--
S,.,He., eh"l' Miler Bagh, Per Gandaria.
65 Shipbuilders ':\0 South Keraniga"J, Dhaka
I ~ahman
"'US Shahil!ul & IMd Sultan el.ar /vlirer Bagh, Per Gandnria,
66 fai~al },'" Somh Keraniganj. Dhaka
Shi bu,ldGrs I
l\lrl Ami nul
MiS Haque & Char Mirer Bagll, Per Gandaria,
Ibq\lc 1<\nIn
07 Islam -fI17IlI7IiS!I.
Yes South Keranigallj, Dhaka
Shirbuilders
011900SS4S0
1\1d Ilafi7.llr Char 1\1irer Bagh, Per Gandaria,
1 MiS 5holmf.
68 RaI1l11"" No Soulh Kemniganj, Dhaka
, Shipbuilders
-0171)118))(;
MiS Sh<lhidnl i\Id SultJIl I Char Mirer BagIJ, Per Gandaria,
69 Islam \-lunshi No South Keraniganj, Dhaka
Shipbtlliders -0171 'j"J9140)
1\ld /vbmun Char Mircr Bagh, Per Gamiaria,
MiS Shandorhan
70 Shipbuilder,
Shikckr YGS South Keraniganj, Dhaka
.01712S311J3.+
MiS lhe r-ld S K dch\ar Char !\'Iirer Bagh, Per Gandaria,
71 Bangl~
'"e" -OI714G20'.l71 No South Keraniganj, Dhaka
Shlpblllld~rs

2GS

,•
 Md Nazmul Char Mirer Bagh, Per Gandaria,
MiS New Islam ~
72 Yo, SOlllh Kcraniganj, Dhaka
Shipbuilders
MiS Intcrnational
67, m(}tijheel CIA (2nd noor),
73 Trade ~nd Yo;
Dhaka.
ShipbLLild~rs
1\01/5 N Haquc and
74 '{cs Fatullah, Narayanganj
Associates Ltd
,
75 MiS Ha\\'laJcr
shipbuilders
I Yes I Falullah, 0"arayanganj
MIS J M C
76
shipbuilders ,md Ycs Fatullah. },'arayanganj
Enginccrs ~
MiS Na.l'ay"nga~J
77
Enginccring &
Shirhuilder.>
I Yes Falullah, Narayanganj

MIS thc N~w

Model
78, Yes Fmullah, 1\arayangonj
Shipbuilders
& Eng work,
Mob-
--- ~ ,
MIS Ivhline Tech I
79 PI0l09, Road 02, Block B,
Design and (j171 1179779 Yes
ShinbuildclS
. Yes
Halishahar HiE, Chitlagong
I
SO I\I/S Cilittagong
I Shipbuilders
Karnophuli. Anowara, Chittagong
,
MIS O~eani;;
S1
Shipbuilders Jnd
! Ye, Knmophuli, Anowara, Chittago~g
Engine~ls
JUlTIuna
I~
0.1<1AJam Char Mm:r Bagh, Per Gandaria,
82 Shipbuilders amI "lob- No SOllth Kcraniganj. Dhaka
cngg Works Otl96080789
83 1\1IS TUJ'andis -;32. PearaBagh, Bara )l,foghBazar,
y~s
lnt~rna[ionnl ~-
Dllaka.8351631
MiS sharkar
84 bpahmll bazar, bond~r,
engineering Ye,
Narayangonj
Works
MIS Jasim Char Mirer Bagh. Per G,mdana,
85 Yes South Kcraniganj, Dhaka
Engineering
Works .~- I
MiS l\1adLlla Char M,rer Bagh, Per Gandaria,
86 Engmccring Yes SotLlhKnanigunJ, DL1~ka
\Vorks ~ ~-
MIS Joloj'lJL Char Mirer Hagh, Per Gandaria,
87 Enginc~rjllg SmtIh Keramganj, Dhaka
Yes
Works

269
 MiS Eklas
Char Mirer Bagh, Per Gandaria,
Brother,
88 Yc; South Kcraniganj, Dhaka
Engineering
Works ,
MiS Madina Char Mirer Bagh, Per Gandaria,
89 Engineering y" So"lh Keraniganj, Dhaka
Works
MIS H ] Marine Char Mirer Bagh, Per Gandaria.
90 Englneering Ye, Somh Keraniganj, Dhaka
Works
Chur !',lirer Bagh. Per Gandaria.
MiS Asha I
91 Engineering Yes Soulh Keraniganj, Dhaka
Works
MIS l';oor Char Mircr Bagh, Per Gandaria,
92 Engineering Yo; Soulh Keraniganj, Dhaka
I
\Vorks
1\ liS Sameer Chu Mirer Bagh, Per Gandaria,
93 Engll1eenng
Works -_._--,
I Yes S.outh Ker.1l11ganJ,Dhaka

MiS. )'rogali I
94' Lngineering No Agrabad C/ A, Chlllagong
Works
Chmncli
I
,
95 Engin~enng &1 No Agrabad CIA, Chittagong
Work> I
JJ Trm.lcrs,
I i ,'\grahad
9G

l\ote:
,
1
- I" CiA, Chiltagong

• Adurcss of SilipbHiIders Assoc i'\liQll:Dhaka Ship bll ildcrs Association, Babi

Silaheber Dock, Ch"r K,l1igOllg, Mol>- 017193 19626,
• 51;\0 S2 to '015 "lh~ l:ngLnc"ring \\'or:,shop rel~ted (0 Shiphuilding Acti,ates .

270
 ANNEX L

Consolidate List of the leading SME's of the country; that can

manufacture Ship's Components

,
Sl. :'<0. 1'\.mc& .<l.ddro" of the ~:\IF.,
Gromecllphonc limited
Product
MOOllcTelc,om Service
Cekoratlon pom!
Plot II3 & 5, ROJd ~ Il3A
Gulshon Dhub.121:2
,d 9332990,I'n %8:970
, Fm"l: Iln,nlc1l~~'p.!.!on:,s.o!n
Akh'dr fmaIsh.1S 11l:ureJ furni'ure
Pio, ~ 1293, fJaridbll'J
!luridh,., lJ!.oka 1212
Td: tt20776. 9O%nO

, fax: OP~756
:\11RComent F,eto'}' Un. (CrO\\"oCement) Cemenl
Sena Kollyan Dhohon (17th Floor)
;'lotlJhocl. DhaL,
Tel 9569~] 7,95532022
Fa~' 957039"

, E_m,,1 oro'" "-S'.!:'20tg::.ll::b!.

10'vi PU""!' Lim;(ed
~,m
Gon<"t01, IPS, ElcohlC Mcter
23, lJilkhu'd CiA (19th 1:100r)
Su;tNo 1901.1902
Dhab.IOOO
Tel: 9552060,9550327.~3567S;
LL~ 9559AG
Lo-m";I:mfo(ii'.m,hd 00111
, bc'Ll~.LIu<uup uflnJu>LLic" PI"tlc furniture, b"cu,",
75.GulsIJ"n .-\,'cLlliO hOlhchold good, foam
Gdsh",,-!. Dh"b-l 212, odhcmT, Pol, co!, BOC etc '""
Tel: 9S93019,9>8~2-18 {o~r\ 01711 52,1-12.1
Fo~:880-2-8817507

, EnuL! 'ildd",r;,'bo"oal com.hd

H"moYlLl1\1":",, \10<0",)',1<
Humo}"" Coun (2nd lioori
2 L ~loLLjhcl'lCA. Dh.1k.L
Tel: V' 57873.9565307 .05:'2:'09
r", 9;('1~92
MobOISI~.21360('
E-moi!. ILl"",1\11:\"" ILd.'20'ii'ho<null.COI11
Gmmb""~i.l CLbk 11,Li"soric, Elec[ri" cohle
" 126, Azil ~l.1rkel. :-;'''00]1101,Dlub

, Tel' 7 167156,7 I 7053-1

Bogro MoLor>1',i'\lic L,,1. (Po,,'e!' fJlleri FngLn< (,ii."
Ho",e" .1."A, Road!' I O'A
rJhonmo"di DbL,

, Td 9145~1.1
LW[l cahle mdll>1"" L,mltt'd Lkcilic "are, & c"bk
n ~ClC ShLlp.' l' .1g.LIl,Ku,h'J.l
Dh"ka Address, 110"," ~ 10'13, KOJd ;-.:o~6
Db"nmondl, Db,b_I'05

271
 Tel: 86201_21_2 Fax: 8624060 [-moil:
br be ab le,('euma Ii.t Om
Bengal Braided Rugs lid, Floor covormg mal, .tld other
House # 15, Road ~ 12 product,
mock- F, Kikclon
Gulshan-l, Dhoka.1 212
Tcl8836015-17
Fax ~636074
PJrodlse G.oup Llectn, cabl., & Electric.l
34, K"mal Atamrk ,\vonuc products
-""ai Ccnler, [lonom. Dhaka
Tel: 8834 ]42,n(, 1597of, 9861597
l'ax ~831771.88N78.,
E.rmi1: mo, ketl no~)",odi. ec~b.c~Lll
ReflecMn. Architectural designed gla"
JohonglrT 0\\ or (-l,1l Floor)
10,)(0'''" n Bdzal
Dhab_lllS
T 01: 91 ::'O.j2~.30
Fa,' 9132172
F _mOll: ,,,I,ll)l'ii,bol-OlLl me,oom
G'''m'COl: !Ji[ek L,d, Volt g\lord, st,bil1zcr,IPS, UPS
BSCIC Elecrromc Compl,~. Le\'ol-06
1/1 Indll,lli,Li 1'101,80""",-7,
Mirpul, Dh":<o-I 21(;
'Id: 0035273.8059388
Fax SD35'76
Shl!:" ld IndLL<rric, (1'\1.) Ltd PVC; f,lm & forming item
!lo,,," # (,'6, Block 'i F
LoI","lla, DI13b
Tel: 31216S-;,9126$:'2
FH'81-1I71S
[''''.0,1 infu{is"",,"d Cotn
Mob.OI678-] 12-;26
15 Hr;ck)C0~or""'[l P\T F'F, lining'
Gow".Li !\Z,JlOO .-\' ell,,"'
Sect"'. I:' HOll','1; -18,1'1,,,.0 I'A
IlttolO n:lOkJ
Tel 7166".13."1655.15
I I--Iub, 01711-20(,57 t
RFL Plastic, Ltd Pb,(",. Hou,ehold Furnimre etc,
PRAN IU'L Gl'O"P
Prop'''Y Ik'ghts
12, RX ~llS.,lon Ru.,J
llhaL,.12D3
T, I: 9; (,3 12(,_29,9559-11".1:'
fO"9SS94IS
F_LllOlLrlhi'pUll"1OlL? C~lll
GO,H'O\>Ind""lTle< Ltd.
!~.
Sit",! Curto Ro_,d, ,>'" Hlch"
Db,b-I IIlIl
Tel: 7113125 01711-.P))22,01199-359S(,-1
L,~ 712038.,
)..I/>. SU"',!.Ll Eng;"c.' I<\g1\'0, k, l<d, LIgbt En~incer;ng ProJuc,"
I--c'" 8713. (01,'_1 '\ ..!l"m \1,:12!,b07or,

272
 (El.ph.nt Roaul Dhoka-1217,
Tel: 9333590, Fn: 8311646
Mob: 0 1199-854309
E_mail: ,aw '-I(-';)dhaka net
),1/, Zaker Eng,neorin~ A"oCL"ic, Ltd (NASCID) L:ghl engineering prod"ClS
" 86/7, PoslOgola, Kc\\ tndLL",,"1 '\10"
Dilaka-I tOO
T 01: 74 I 1466 (I' .>Clary),7119S I-1(0 rf)
~lob: 01711_00808-1
00 )'1',. Rima Eng'nemng Works LLght Engmcering Products
Ala> Kilo,," !.one, I olhagh, Dbka_1 212
'"
Tel %10377, fa" 966253~
1\lob 01911-179985.0 I 71 2_92$5.10
E.madL: rima,enggwork;iii 2m'll com
~inks, pump', PlaSllC product,
" (;02; Ta"ks & (;Jzi Kilcl,cn W'rt'
37/2, Purana Pallan
Dhaka- 1000
T.I' 73 19714_18,93.11 SiiO.9)&6-185,
';lob,1c Ol726-891992
Fax.7319713
Email ~aLi(obdLLnk,oom
8.lJlglod.sh EI<",;o, I ),Iotor PHmp A",,,,,:,,,n Pump and ldolor
" 17.1_]74. l'abobpl1' Ro,d
Dbka
Tel 7112.: 68, r ,,: 95[, ) 75'
),I,bmmc Table Ware
" King' i\ld,ml1:c
8<. \'ialor \\'orL R'hLJ
1'0''", Dlub_t 211
Tel: 7' 1(,4-1!,7317S'50
Fo,,7.,I(,J31
E_moi!' a"lan.]!"'"J",,,il ,,"
! 24 Miln.1r< Fump' 1 ;Il1Lted C'entlJfug,1 pump. SluLcc ,'a1;e
Uno!o B""~ Rhob.Hl 90 ),[o\1)l1ocl( /.-\ R.fiux , 0;"0. Dome,!io pump.
\-Iul",tagc Non-
DI,ob,
Foclory' "9_90 CIULeg .-\Ii. T()n~i G.lZ1j1l1L
1'.1' 95C.14]f>. 95635:6. 0; 1972 1,.17,1.
'" FU"'P,
cloggLng ,luJge pLLmp, Mn-Sleel
)0\\ 1'101'.0.ChernL"oi Fump pam,

Fax 9539431
E-«""I, ",:ILu"q'~dm~il "c,
\\cb
S:cd 'uh~. Bracker
[Jecp ,,<Ii "
turbine
S"brnt'r<ib]e ,r.O(OtPCLn'P,
Hange!',
F"mp,

\\',,',,' ,mil"" 'I' II"']" ""11. w" " . ,rto1-g',)lLI'cum bd

m; IL\0rs,illhd",.o, I,nct

b\",gyl'0c EngmcoL LngLt.'. 1'0".', Elewio.1 & Electron",

" J;bon Bin1" To"",- 10 DI]~hu,I1., ( /A [)b~lo,
Tel 02.9,6_]728.
Salu('an
~I,m Eaginc, Generaior, MOlor,
F.L.' ~SS0~-95(,-:72S l'a<lelit\g. S"hch boord, Contral
\\'" ,,'.en., £~I~".O.0J" 'y"<m. Compl'<,;soL, etc
""'0' 'dpol_""LLHc'CO",- ,','lilijLKjiL ncL
26 ADEX Curp,,,atl,'" Ltd Eleelric,,] & Eb:<fOnics ~ol"lion,
53, PHL"'" PoitULl.Dl1.lb TL'an,former, Pon.l Design.

Tel. 02-<J5onC~ 955%2(,

Fa~' 02_95627U5
\\ 'W\\' .ade:\bu.c\l11l
in f[) ~adc., bd ,com

273
27 Aka; Eleclncal &Eleo!ronie, Co Ltd Fndge, AC, D', DVD, Fan,
1S, S[]nargaon (2" I Floor). Dh"b Elear;c"l & El.c!rome,
Tel: 02.9674993. 9670097 hOlLsehQhls
._mall: cc,,,,,,lhakd net
28 Unlon p{),,~, $)".", LtJ Ba"e')'. IPS, UPS, Electncal &
6S/1, Glll._h'.L~,\vcnuc Dh,kd Electronic, households
Tel: 02-9885771-4
Fax, 02-8823454
Mob, 01S 114181';4-(,
Web. "'''I' .su_kam~,,-m,l.'~\~\,ur,lhc, ,am
e- L11a11:mo ha111 ,,,!
Lll"d.T"k Lbl; lia];.!'nL bd, com
29 \\ "lwr. Fridge r"m;nae, AC, TV, DVD
{,uLb"n L L1hab Fan. Elect",,1 & Ekotronic,
~.m"d i"fo'""'",,I,onbJ.co,n hou,el,olds
Web: "," w _""h'''lbJ.c 01"
JO 010\>i FUl'lllture ""d o.,oraMI1
1'101-12, BlQck-(', G"lsh," 1. Dh,ka
Tel: 02-8833151-9
Fax: 02-3855207
e-m.,k centor""ntohLcnm
wet' ',\ \\ ".orobrbd ,mr.
31 PU;_l'] Search Light, battery charger
:'f> arambagh. ~1()tlJhccl Diu", control pond, aulo change over
T,I'O:'.'IOIE-lO ,,,"]<eh, t,stll1g & cO"'-mur,lcalion
Fa, {):'.71UI~.10 eqLllpmCp.t> m,'alldloon
.\1,,10 DI715.65~'15U ekctTlCol """on
"
,'.rr,oi! £!,~.l:l@:P-'!!,'-!!l d"' ~'l!I
\Ieb: """ r0,clbd cOm
,
I A\'R, UPS, IPS, Gane!'}'. eCTV.
32 Gleen 1'0\''-'' [Iw, ,,01 7 Elee1lon", Comrany
j.t,kll'l l'io", 209'R \10", Road. \ILlT'Ur,Dbb Sub "oM" eqHlpmen(" HTiLT
Te!' 02.80.i2('~7_~, 900n~7 S',\Llchgeol, T"n,;foLmer, G"
Fox 02.901:'.17.1 goncrator, etc
".rn.lll: ,,,It',,';;'eLt','''?0'' t'L~'"cu."
\\ eb 1",,',,',0' ,'ell.EC''''' ,'o,con,
 Ai\"\"EX 1\1

List of Shipbuilding Components/ Services Manufactures in Bangladesh

51 N3me ofthc Itcm ' !annf3cturcr/Supplicr

,
No
1. An,ado Shipyards & Slip" 'Y' ltd.
2 \\'csteLn Jl,lorine Shlpy",d
~
J, Kh"lno Sh'p}'",d
4 D'cpr, 0[1',,01 A,d.lteau,. & Morine Engm,mng

,, S,eel
,. Om"le Sblr, [)O,iVIl L,d
L Ralum Sto:l>

-I,.' .
N"igo,ional LLght I. A",md" Shipyard, 8.: ~tipw.ys ltd.
2 l-ILgh,pccd ShLpYOldwilh local oompO")
-, I'u!>cr E"oi"oerin,' UJ
firdighT1020quiprneLH -\nand. Shipyard, & Sllpway, ltd,
, llighspeed Shlpynrd "LTh local cornpony
Sh"mo In'c",otwnol
.1 lJil'1LaLYS!" 13Je,knT,c
2m, AnoGc I Anomia ~hipY"lds &. Slipwoys ltd,
~. m., h'pcd S~\ipyard \\'lth local compony
-'. 1\'0<lo,n 1.1",iIle Sh'p\Ord
'I, Dh,k, DockY'ld Ltd
5 KhulL" Shipyard Ltd.
(, DochyUld & Englr.ccr;Jl~ lVork> lid
7 l'l(l~ULiEng,noCTl"g Ltd, Chittogong
X. ChilLagong Diy Dock L,d
Rudder I. -"",n"o Shlpyords &- ~ILp" "Y' ltd,
2 IlJgh,p"d Shi?yaLd ,,,,h local company
, KOillOrhllli ShLpy"d Ltd
~, \\'ewrn .\hJ'Lne ShLP:'"rJ
5. Dbob !Jock)'.," Ltd
(,. n(),~yord &- Engineering Work< I,d.
7 Khuh" S!lil'yard Lid
Propeller .I! I. A"o,,"a ~r.ipyar"s & SiJpways I,",
2 IEgh>pcd Shipy,,,,1 ".,,1\ Inoal COL11p"Il)

Stem lub<' b",h

.J"""'"
1 "",,"da " "","'"
SILlp)'"'"<Uo8.: Slip"'Y' ltd.
2 11L~hspeodShLp)',,,d "ilh locol comp.Lllj
_, Klnd"o ~h'p)'.ud L,".
4. J I TIO(!cr,. CIlI\1agong.
5. i'LOg",; El1g",ecrlr.~ Lid. (h,tto~on"
Deck cquipn'"'' I. Ammla Shipyard, 8.: Slipw.ys ltd
2 I ligh,p •• " ShLpyard with local compony
, Khollno Sillpyord Lt".
-I, K,maphul; Shipprd L1<1
5. W",lml .\loLLlleShip;-"rd
6 DochJrd 8:.FnginceIi"e Work< I,J.
Ancho" I, ,\no1\<1"Ship;--ar"s 8:. Slipw,)', Ird.

I 2 !lLgh,pcc.J Sh;p)'"d with local compa"y

.'. Khuln" ShLj,)'"d Ltd
I, Ao'o"" Shipyords 8.: SILpways ltd,
" o HL~il,pee" ShLl?p,li " ith local com 'an\'

275
 3 G'Zl Pu:nps
4. "1Iina,, Ul Ltd. Dhaka
I An,mao ShLpyards & Sl;p"'ay' lid
2, HLgh'pe,dShipymd
3. KbulJl3 SilipYdrd Ltd.
, ~, We,icrn ~larLr_eShl 'yard
I, " Kurok;, CEPZ, ChL!togong
JJ 'j'rad." Chi<l.gon',.
Elccni",! cohk 1. E"wrn cable
2 BRIJc,bb
1 : Pe"cilS< Cobb LtJ
I -l ~U~'CL'SL"" lr.~"5Tr;" Elec, LTd
i I. An,,,a' Sloi?yoTd, c'< Si'J"''''Y' lId,
i 2 Iligb<pcd Si\lp~OTJ
'I 3 I'dseL hgilLeo' Lng Lid
". ,\d,.' COl~Ol'Olln"Ltd
i, t\nnJd ShLpy-"d, 8::Slip""Y' ltd
2, lTLghspeed Sc,i?:md
~
--- _, 3 Pd,,,, [l1glr.""",," Ltd
,-----
Ele:n LCO!,11';'.'h bo,,,1. ,\ YR 1'""01 :! _AFG hgij.eerin~ LTj
bOal~ \nll\SfClllW,'L l2 Ade, C()'l'OLat;on Ltd
I 0 1',,1,<0, b,~L1:<OL,ll" Ll~
: ': ("o,n I',';;.r Elc'~LLC,1'" ~htronic, LlJ
I , Sup""gn !ndlL,,,ic, EI,o. I Ld
Elcclwd,' i 1I,WgLlucsh Elc-ClLOd" ltJ
Gus. LP ~gl"desh OXl'o"n Ltd
AcetyleLlc
EnglLll'"",or '
! B,'"" 1od<.,:OO,y,'.on LtLi.
I, ,\ '.ar.Jo Sh;E:::""~ ,~ SI;p",a) s ltd

~ ,
iI
:.,
2, ll.~.hp"d
h,lT".,"
~.
"h,p/Ole.
he,n<or;ne
".
.,.::._:yl", C OL}lUL""nn LLJ
"
Ltd

n Dot'.",i," . II :H<'"!\I'L007
: :" I"'"g' L'lec ttl
• U~l ceJ: P0\\ or Ek,,, LC';,\: J: len10nlC>
23 CompLe'''')[' I 11:,'i:spc,LlSl:Lp)OLJ
I , hej~\p", Lt."
En~Ll1CCriLl~
.. : ~ A,bCorpn"rinLlLid
1.•.lo!or II Iligl"pe','d Shp)OLC
"25 ( 'p,ton
_
- ---j-
' c. 10, o',"J"" r:""LlX"""'~'I td
I !\:lJ,\,i" SI:L?.'", d., &: SiLp\\"y, ILJ
I l, 1I,,'''pcc'~ Sl:l?\aLd
13 Khul,,,\ Sh'P".H'd tt~
-1 \\e""'H \ldLine ShLp>"d
< Docky" d R. EngiLl"" ;l1g\l'mk, lTd,
1, 6, Ohab D,'ch"ci Lid
WlLl,h I .. _\"0,,:1, SiLlp\OrJ, '" Slip""}" 11<1,
2 Illgll<pe<d Ship)-ord
, Khulno 5hL?y"d I ,,'
-I. \\ OSTern)..I",no SbO\'aLd
-----,-
Bllsh 1,,\nnd" ShL?)'Ld, &. SILp"')" ITo
i
2, HLgasy"d Sl:i9YaLd
I .'. Kiwi,,,, Sh:p,.,,,1 r t:l
I, '._ Cb\I1',eli ELlgLll",OLLllg
c~ \\'ork,
. ),1 Track". ChitL.!cO<\o
I. ,\Ll""~' Shlp,'ald, & Slip"'Y' ltd
 <h,lO i2 HlglbpCCJ Shipyard
' Dhaka DLlckyarJ LtJ,
4, Kh\llllO 5hLpy"d LtJ
1 5, W.,;.,n
Marone' Shi "Md
F"minLTo & litllOg I, Highspc,dShipyorJ
2, Akhtar FUTTIllLL"" Ltd
3. Khulno S:l'py"d LtJ.
" l'''lexf'lll:l1UroJ.td
i j Uwbl 1'"ml1'Lre Ltd.
I nte, lOTJClOl aliuf] I I Hllh,~ecdShipy"d
I !. ,In,'a, F.LC":LOIC'SLid
.' I\,,:ex Fu:"ilure Llrl,
I 4 Otohi i'LHni'ure L,d,
hLJULei ,.ll,~b'P,cd ShLpymd
1, c Khu!J,oSlup;.,,,Il.,rl.

I - An""d.\ Sl:LPyolrl, & SlJp\'"y' I(J.

I -1 I\:,-".!'Tfl .\10<":. Sh'r)"d
Golle, ! I. I1L~;lSpod Sh'r)o,d
2 A",,,,Co sh'py"rl, & SILP""Y' 11J,
3, \\',,;crn 01",0",' SLip)OLJ
-1, Klnol,," Sh:PYdc-U Ltd
Sluinlcs<'leeil")' I I l'I,~I.,p'-,cJ~hlp,,,,rd

,~.
I ,- !\LlJml" "hip)"d, & Siipw"y' I,d
Khu!Ll.' Ship)"rl Ltd

:;4 I"m 110,,001 or em"i11,' '.bL\1b"L 1[\

I " West('L'" ,\10"". Shipyard
1 j]L~I"p,,'dSh'p,ard.
Trawk'L
1 " Obka ])ock
!' KOIm;,hLh ~LL?)'"J
----_._._- _. I, ~,.\\::-,::~'.':'..."!~i,~~Ship-"'L'J
Coil &- 1"~I"j' [", 1'1.1',' "" I l.lli~I.s]'<orl Sh,~,'"'"
i c. ])h,b I)o,'k
__ .__ . .. __' !'_~"",~~!':'.l\'
Sb,Jl""d
"I r.L',' I J,ll'L i i 11",h'pecd ~iJ,P)<HCI.
Ic Dhaka [)n,k
______ . .. :_L..!::c" """;,,,1\'
Stem lube :Ll<t.dl.":",, , I fll~.1<:'c-d Sh'F,aHI
I 2 I'bl,w SbL"',lLJ L<d.
I .', \\',,,,,,,, \I;;ine Sh'r:,"LJ
______
I ~:.!!:.~O,," ]),,,])ockLt~
i
• Bolio,,'., I ll:~bl"',d Sb;))'",,~
I 2. Kh"I,:o Shipy"rJ Ltd
.1. ,\nJLlJ.' Ship).lld, '" Slip"")'s l<~,
,I. \1 cOlOJ
n ~ I" It" 5hl]') "d
,'.C"",~nLl~~' ])ock Ltd
Fail [e.1r1, I I Khllln" ShipY'lTd Ltd,
C, 1)0C~),,," &. E"j'inoOTlLlg W(],k Ltd
.' IV0"<1 " ~bL "COS:"P) ",d LtJ,
4 ,lm1\"o Sh;p,ml, So Slip"''')"' lt~
5 h,,,,,,,?bl,Shlpyor~
(, ",,,oY,H'g,'l'i E",,,,,,ol I"g & ~IHrhuildlllg l.td
,'.-.
11,>h,po"d ~hl;"'HJ

__ .
I ~. Db,,,,, Do,'k:- onl Ltd.
I 9 Ctal'''"ULl~ DL." ])0,-k I.<rl.
Pa"clLng Lnateu".m,','",,,,, II [(I,,,,,,, ,';j\1l',"rd LtJ
_.- .. 1.2..~~':l:0-",-d &. Enci'K"'liag Work Lt~,
 ---- -
-cC;;ClliC;;C"C;;C;;;C""--------,
J, \\'WCTLl ,ldr;,,~ Slllp)'"d Ltd.
4, An,na, Shlp)OrJ, & Silpw,,~s ltd.
5 Kam,pllllly Shlp,OTJ

"IILgh'pecd Shlpyord
Dh"ka !)o,kvald 1 ld '
6 ":L1'''~'''~'''J EngLnccring & ShLpbuildlP,g Ltd.

I RuHle .!,,(e 1I~LO12mm

An~k
ElectLLc"i ~onol uc,ip. &. "abl",~
:=ili
~: Ct"U"O"_~
R.',Lim
I 1(,111'\\ 3;"01,
15

ii, ,'I',; hgmcC',iJlg L,d,

Dock Ltd.
s,,'
D,y

I 2. r""£Jrac En~i"eejLl'g Ltd

:.. ,Vb Corp'lLd:"tl L'd
,I
_____________~_ (" ~c"P":::~'_QOCllled & F;oet,"'~"",,., ,
I R~~,hanjbLJ'.,'""
"
45
PL c_, ,,,eke\. dbo'"
I),,"", ,"'woo',';, ------ .. 1 KIt"I,," 511;p:,,,<1 Ltd
&. Eqil1ccri:lg Work Ltd .
2 Do,ky,,"
I .' \\'c"OLJ', ~'b 'P." Sh,l') oed L tJ
! ". ,\'-"'.d, ShLpyad> 8.: Slipways ltd,
I 5. K.H",';']'"If Sh'rr,d
'II' ~"'-<')'"Llgaql Etlz,"c,Tin~ &. Shipbullc1;ng Ltd
(,

ll",bl'"d ~1:L?f_ld
n".,h"J Ltd
ii, DI,,]",
_}. (1'H'g.:'-",1?2) lJc>cj,c""l' j
)n,,, btl():l L11.lttLi.d I I KhliLlJ Shi~""j Lt,'
I)""k) aJ d c'< blginoc, Illg \VOLk Ltd
-'. Wc'.lCm ,\1"LL'" Sh1pYOLdUd
". ,\Ilalld, Ship'-"ct, S, SI,)",")'" lId
5 K""""pl."ly ShLI"'''ct
! (, 1\",.1V<H1~<,,,-iEngJl""iLl~ & ,'h1r'ouildi"g Ud
, 1),~il'l'el'd ~b:p,,,d
:; Db,,, D,d<)'",,1 Lh',
______ . __ ,_, n:~L,'!Lag~.:~~.0~'<.!:!", _ •. _
• i. Kilnl",l ~h'\o,d Llc!
IJ,'Cb,'1(1 c\ I'Ll~Il\',er,"g Wo,k I :d.
\1 "t"l [l ,I,,: ill' Sh'l"'orct Ltd
<1ALLlLl.l"3iLle.',lIds ," Shl)\\ 'Y' ltd.
_. U_!S"Llll,'pl",ly SlllD",'¥(' j
I)
"hllh,S],;p.,,,ctLt.'
2, f!0ck,'"ct -~ En~'Ll"c1ing WOLk Lld,
1 ,', \\'0.,"'" ~LLLl:C~hip,JL'd Llct,
• I
,I
,\Ila"~" Sb:I"xct< 8. SIL)""Y' ILd
j K'''"''I'I,,,h Sh'p::"d
6, ,",",')',"':'''''; r",'":C'cT Ll~",. Shi~blljldm~ L,d,
7 ill"h.'p,cd ShLp:.•"d
, ))j",,,, [)'k'kr.lld LId,
,!
'), (.I,\1T":{',~g))' \ Dock UJ,
I. KLil:l" ~h;~-"\,,jLtd
2.1Jrdy"d '" E[lgi:lcCLilOglVo,kl,d,
,'. W'<1o]n \I.,,'n': SLLpy"r1 LTd,
I,
<1hLLlLl,I.,S"i~:""ds & Slip'",,}', ltd
, KellL!.lFI",I)'~iJ'r) OJc.
1 " """,';',"':>'''1 EngLlk'C1l:lg 8.: SbipbuildilLg Ltd,
II L,eil'~""ciSiLi~y",,'
~ Dil"k" IJod,.",,") to
______ )bJ::ho'cc''J'c,',','
. i.:)._C:<"~'-l;,~~:' i
 ,C Hatch ,o,er 1. KhuiLkl S;\;pyard LlJ,

,
2. Docl.y",d & Eni;mct'ring \'.'ork Ltd
We,,",n ~lMLne ShLpyard Ltd,

,
" l,Il",,,L, Sllipy",d, &. Slipways ltd,
K"rnopl111il'~bipY"Ld
"dldY'<lllg,nJ EngitL•• '1ng & Shlpb"Jl<',lllg Ltd,
",
,
l1Lgnspeed Sb:py,,,d
Dh.'k.l DockjOld Ud,

31 I'i"ogos
1--'!.:..
,
C:a\'_"~u[]" Dry Du~k Ltd,
I. Killll", Sillp}'.d Ltd,
2 L1ockyo'd & Engineering Work Ltd.

,,
, :' \V'c'1cl'Ll.\biLl:C Sll;p:"d ltd
.\n.",,10 Silll'y,d, 8. SI,?",,"}, il,~
I K'Ll'hL,':,"!:; Sh;PY:Hcl
",,
Er.2i:LecLln~ &. Sr.j~budding Ltd.
I ~ala)"J.~,JI\I
II ,~l"pc,'d S~ll') .];{I
I
,,
I Oil"ko Dock)OLd Ltc.
I C"'-'goLle Dry Dock LId.
" ;...bnholeoO\LL"
,,KhuiL" Sill!'}"m] Lid.
D,)e,) ,1l'0&. [ngineeril1~ \'" OT~Ltd.
\\'c.,o", \b,ITIC SbLprord Ltd
,.\n';Ll'U Shil'y,rJ' <~311]1"")' lId,
",,K'''Ll.lplw!) ShLp>cLd

,
,c,.Lla;"L":""'J rngi""eLLI'¥ & ShipOULldmg Ltd.
!i1gh'F',d S'''prJLd
~, 1llukJ l)0"hOld Ltd,

h:m
----------- _~:...S:::,,!:.lg2.~~..!2:rl)Q'_'~Ltd
, BCJ~<-' ,
53 , I eLllure (i10C1p
,

-----
I .-._-----
.' ,-IlL!1,,~,,"Lc'
5. 0,1. "mil iL"polior, ,"'.11ino "e'm,. I. II,',',~ Rl1bk,
,
hatcb '0\ '~c", <e''',.llg L,,'okL >--.,,11
hoil ;""'.1. g'"'''' c", , .
,,
, 1(01:' Rubber

Ill' "':'c'l' ,I :"hIC]]C5

, 1,lLll.lIl\lb~c,
, .Ib,'di" 1,"'e""Tl'" I
55
,--------------
(0<1 ;L0LlS Sl,-,l "".llr,"""'"
,

,
-i),;;;:;;0-j"cll;~~-'
(Fbr.gc. pill,'), CDUI-li,,~. I"",'l' • .
I,nlli H.'Jbl", ,Ie.~lachiLlelle,
"ng. ILl1<'L.
""hor, ~,,,_h,,1L ,.,,'" ,
•
., sl.,b)
v"~,,., ~".' fil;mg>
._'---'
, l':h'Lh" Slll!,}""d Ltd
• rJnoboLd & Engll:C";l\~ \\'OT~ Ltd,
.
II'c,Lc'" ~lm"c Sllip)"d Ud.
_\Ll.];\,I,Silll',,,,,l, S ~lI')w"" , . lId.
"•
, K,,,"';,l111') SILl[l\,:ml
,
i ", "",O-".LLlg.L1,j
,, li'gbpcod Sh'I',Lud
Dna:,,, [hob-ad
IOI1£lncc',:ngS. ShLpblllldHlg I CO

Lid
J2
,, , CIOI\.I,'~g
K'llI;l\.l SI1;p:
DL\'
_ _
H d
Dock
l(o
Ltd.
57 P"'F'dkL Si,o".

5$
-'--
S,ed, 1"","" .-\110\' 0' ""S
,,
,_, __ .1_:'. I\\'~!-.I."i""
I l(h",,,,, Sh'?,ULJ
S~I"ULJ Lrd,
Lt,;
,1".\11,'" Sl,:p.:o,d,"" Slif'''oy, hI.
I .' I\c'ck \ ,l,,1 8.. i:ngJ:l<'e, ,,',£ \\' OLk L,d,
59 A\'R, U ., 11'1'['''lCd, Ii;'"'i--.l,-----I--G\I'i'ih"i,,,, .., IL'~,Ltd. Ene' gwock E<'glJ:eollng
T,o",iollllCL
--------- --_ .. ----_., L~::"Lg \ 2".':]-:.':-g"":C'L
"'" Ltd

" n')
 --------
------1 ]
___
Ad"~ CUlpOLotioo Ltd
..i.5.!! C"I1'0""[ Eiec!ll""l ""' EkClrDLl;C,
60 Ga!\.anizing !'ol"hing. c Ie 1. Kll'Jho Shipyard Lt~.
2 DockyarJ &: E~g,,-.cermg ',\folk Ltd,
3 \\'c,tem M",mc Sr"l'ya,'d Ltd,
4 ,\[lilTldc o.:l\lpjacds &: .'.lipw")s )\l'_
5. K"mcphuly Sh,~;uT<l
(,. ;-;"r,,: nng"c,j Fng: ne~, Lng8, ShlpbudJ,ng Lt,),
1-I,!'-Il'l'eed S:';PY"'-~
I S 11:-,,,',,, Docky"rcl I,d

---- -- --- -- I_~_,-2',!.!."J.:"-'-~,'-"""

'O~c""-k,,,',"c --I
c, C Fllcl;:c. Y:' 1\-. [) " 11.1".", I \\'al:o:J
Eleen",1 S, fOl'_"'Ll)[\:" hG ","'110:<1, :2 .\b, Elc''''."L1 &:~lec;rUl1i,_,\o! td
_____ ,_,_"_,,_,, 1'0',10' S:,<cm LL~
 Al"i'\EX N
The "'orld's Activc Buildcrs of" I'ost-Panamax" Ships (Nov, 2007)
Cruise
ULCCs C"pcsi:e LNG CQlltailler and
Afrllll"L~
C(Jlllltry Shipbllii<!cr
Hee,
11m/ I SJle~","x
T<llIker" Tankers Bu/hers C"rriers Ships Other
Ships

Br~~i] AtiJntil'o Slll X !

,, X
Branl

China
Con~orci0
Bcih~i
Shipyard
F.io

I
,
I , I,,
Bolla! X
China X
Shipbuilding

China
D~li~n
ShipbuLlding
X
I X
I X X

Chil1~
D~J'll1g
Ship'~uLlding I I X

Chma
(Ju,mg,l,ol'
Lon~!",u" X I X
Sllip\'ard
I I
I,
China
lludc\l1S
ZI10nShtLel
I ii X I X X
Sillp),,,d I I 1
I
Ji~ngn,m
. ,I I
,I X
I X
ChUlU Ch,'ng,Lllg
Shi 1",1l11ld
ing , I I
I,
Ji~ngs'.L
I
China lc:1Sklll
Ship b\lllclL,,~.
,kmgstL ltOL1l!
I II,
X 1,
, I I
!
I X
China 1 Sh~n"
Shlj,l~Llil0_iL1g
X

,
I
r.:"L110I1g X X
China X
COSCOKlll I , !
,
Chinel
?\,," Cenll""
ShipO'.lI-,l LI, I
I
I, I
,
China
l°rienl
Ship,'ard I I
X

China
I ~e" Timco
Shi pbuild iDS
X X
I X

Shangb.\l
Cheng" X
Chmn
Shipbll ilrll ng , I
 Waigaoqiai X
China X X
Shipyard
Zheji,lllg ,
OUhll~ X
China
ShiphtLilding
Zh()ush~n ,I I
China Jinhai\\aLl X X ,
Ship bUilding I i

Croat'"
BrodograddLslc I I X I
Spill I 1

Denmark
Odensc S:eel X X I
Sillpyarcl 1

Finland _\kcr Finland I X ,

X
Fmnce Akcr h!mc'c I
Germony Mcyer Wcdi I X

Italy Fin,,,nlieri
, I I X

Japan
!l-lJ i\ 1am:c
lJLlil~d
X -I ,
1 1
X

l'lla'~.lI"I
Japan
Sll il,bll iIdiI1g 1
X
1 i I X

Ka\nsaki ,
I
.bpan
:-'hip:>uildlns I X
I 1
X X
,
,
hO)O X X
.Japan X X
DO(K\'anl
I
1
1-- I i\lil~1Lh"ln .
Japan [lk:l\\ X X ,

hp"n

Ja~an
Inc!llS:nc'
I\lil"" Ens. 8:
Sili >'l'Ui1din~
l",'nHLL'''
~i--i X
,
!
X

X
X

X
X
I
I

Sh Lph uiIclin~_ !
Osllim"
Japan
Shipbnilcl'llg i X

I
5:\110,"" ,I
,
Japan 11"),,"0 X
\kislLO I, I , !
,
S:,scbo 11~", \ X
Japan X
Inc!\I,lr;es I I I ,
SUnlllol1W ,
Jupan 1-1\'", Y X ,
lnd,,;lri~s ,
Japan TnLL1cisni I I X

"
 Shipbuilding i I
Ullivero~1
Jap,1n
Shipbuilding
X
I X X X

Da~han
Korca X
Shiphlllhlin,' i,
1)aewoo
Korea
Shipbnilding
X X X
,
I X X

Hanjin He~\'y
Korea
lndustries I I I, X
I X X

llyul1(l"l i
Korca Henv',' X I X X X X X
Inuuslries I I,
J-lyundai
Korea S"mho X X X X X
SI,'pyard

Korea
Korea
II X
SIlL;]"",-,1
, ,,
Kore"
Saln"!ll~
11"",",. X I X I X X X
I
,,
Illdu'iric" I
Spp
Korea
Shiphl!lhllng I I
X
I
STX I
Korea
Sh iP""11dLIIS I, X X X
I X

S""c:d""c: . I
Kor~"
ShIp bl1l1dLl,,' I,
I
X X
I X

PhIlippines
llaLl.llLl
X Ix
I. X
I
Philippines
PI, Llip,}lm';
T~L1I1Ci",il: I I
II X
,C"i>ll I, I ,-
I 0",'\\ (>()_ I
I
Romanm i\1,mgakL X X
ShipbulldlLl:' I
Spain Cl\' ,kll\'orle I X
Chin.l
Taiwan
Shil'hHi!diL1g I I X

Turkey Scc~CI"{iCllli i i X
Uklaine l.~lIi\"Ship",rd I ,
,
X I
I'e\\p0rl >";c'ws
USA X
Sh'Fhuil(linS
Vietnam Dun; Q,IlYJr,1 X X I
Shipyards and Firms hot~ En1i~t~dllnd Nut Enlisted in DOS CapablHo
Design Inland and Coastal Ships

SINo Kamc of thc

Sh ifl,'unl ,i firm,
~I Addrcss, ,-ill> (,(JrnrnllJ,ic"tion \Jc~n_\ I, Positions

I Wcslcm t>-Iarine Koi~l'"a()n_ Pali:", Chillag();,g HE Fe EnJisletl

ShLpyard Lttl [Juiiulng. \ill ,\gr,l!;>ad Ci.-\, Chillagong :nDOS
(W'\lS) Tei:"SS- 31.25130%-;,
, Fax: -'-33-31.72024H,
I c-mail: WIlls'i"bbl<; l'CI
I, Web \\W \\' \\'m, cnm bd
---- -- ---- :ii(1
2 United N~\<li ROOl;l-22_ :\111 ~llr' __ r Markel (2" nO(),-), Enlisted
Archilect I, Shallo.L~. I)h"b ill DOS
, Tel ;ss-rc -9(,(,20)7, 01 g 19-494330
Fax: '-SS- 02-')(,(,29G'J
,I
,
_._---
--- .--_.-- c-le",,1
" -11 "rch:te~ts'i'i'hv,mail.cClm
-------1
3 MiS Asiulic '\Lmne I b\oll'tll V Le\\ (4" 11oor). 50 I)JT EXlelll101l Enlisted
Ltd ____ Rna", j\'a \':I I'olton. Dhoka ill DOS
----
4 MiS Bcnglc '\Iari[\~ 28il/o. T, )ye;,~,~e C.reuia,- l{m{L, B!\' T"wer Enlisted
E"gl[ltenng ,! , n"Of 1, MillljhellJ/A. I)haka
\"'" in DOS
Sen'lce'S. ,
- - ---
, ----
S /viiS !\Iar",c House , I2/.-\. I{ K -~,l7;;:;oi;R~:,d(2",0 nonr), Tlkmoly Enlisted
:_Stll2..'!I~~-c- 1)"",'1
_._----- ill DOS
G ~j/SGJ\~IS, SU. Pm"", L1',,1I,m I_ant'. DI,,,!-a 1O~llsled
Manne Lonsull,nll 1 in DOS
7 Khllln;, Sh,;,),,,,,1 I_"h,,;,,,h,,, .-". KhlllllJ. Eillisted
Tel " %-l)~I-n304-17, nons. in DOS
Ud
Fa~_ ,.S~- 1)+1-~2()--lll--\
"-111"'1. ,'0....!.,ucl,ji' k< \'I, ,,_com
Wd" w\\
_.- -----------, \\-.---- !",b'LCl)1l1
S I\-I/S ThLTe Aagk ::'S,(-I , ,,:-;;nllCC Clrcl~l~r Road (I" noor). Nol
I\-laLlIlCCU1.",il'LLll IlilcL!-.1 Enhsled
hI. +SS- 0t713-075S2t inOOS
c-m.,II: ai.slwllel(li)ghlail COn;
9 OrnJl~ Ship Dcslgn S)e,1 Gr.1Ild Ccl1t1'~. 10" 11001'.PIOI-S9, Road- NOI
Ud 28, SeTlor -7. tJlt"rd lv10ele\ Town. Dhaka, €1l1"led
Tel ' f S-( l2 oS>'ISS>'. S ') I 890S in DOS
F,n: ,'-S~- ()2.Sn2()~')
~-Ln,,,I: al1"1:1\ o(ii),,,-n,,le ~oln_ bel
\\"cu, \\\\ \\_Q:l1"tc_cnm bd
, -----
10 Amll"b Sh,[',-,ml &: , \logh'1:\, I)h"b, [0:1 Ci,y HeaLI,67 Na)a 1\01
Slipway Ltd i Pailo];. 01 ",b. "Ilh,led
,I Tel ' SS-\ j2-9352031-3.
-----
Leo:: --SS- 02-S3 t 26S1.
;nOOS

ZS .•
 - - -------_.-
I, al1a~llh~~bd
III~Il,net
\I'W>' ~L1anda~I'OliJl.,.gil
11 HjghSr~cJ lie, KOLlcla,N r;rayangollj , Not
Sbipbmldll1.'; & 1ol1jhed OA. O;,ah, enlisted
Enginccl'in& Co 8~-02-71 02790, 956ii34~, m DOS
'-SS.02-9 5()63~ 3.
1 b.i,~h.;pcedii hi rcls~hk corn
__!~Ye~~_
-," .":: \', h 13_b_~j1
c~ d - ~ rmllu!)m
12 Dh"k" J)()r;k.>u,-d ,~ ,'2. I..\I"1'll111 S\'CCl, IVan, Dhab Kal
Lnginfcl'il;g \\"or ks I d: .'.~S.u2.71 iW7J. cnlisted
Ltd 1'.;\: '.88-U2-7! 1[)17.+, m DOS
C-JOLal 1 ]1,Ii"" ,11l"!,uliol'kvnrd COm
i
.._--
WeI, .\\ \\ \''- db'""lock
.- - . _ .
vmd.com
13 Knmupll\lii I 9-+-+ '..\. '.b,li1IL'Sh,,'.. CIliua.[!ong Not
Shipyard (I','!) L tel "Id' '.8S-31-(,1 ()%9. 2852315 enli,ted
I'n.'- .i-SS-'-I-() j 051 0, in DOS
c-11'" II: k;lW:1f111y1~l'caco:lllci-C I~,com
II ~h ~~
~:~,kNhL<:;Qtr!,
14 K araY,lLl!"lr.J '\ol<~ ~:'nl.Il:>l1rlcr. ""r"y:mgallj, Sk,IJrk Not
Enginecn:lg '" 1'0inl t9'T, tlon!'), Room.'),'II, 24/13ijoy Nagar enlisted
Shipbull:hng I,cd I () 1<1 J. l)h,I~"', in DOS
(;".JTSU. 'J d, 188.0:-935490:' . 9FHIG,
Fa~:-'.SS-02 -9332 5G'l. ,
__
"-llLcl il: .Sahili;".~-CLlLcllCh(l.L Cn"
lYe'l,. \I \I ,\ "he,"cii, .('on1
---------- -------- -------_.- ;-.:Gt
15 ChiltlgQJ..;,,12L,
Qock Ud ((J2'pi_01, Ie;, 'S8-031-25ilj ,
loa;; l)alc'Il~". 1 h"u~oL1g;
,U. 25(11 i :
G-n,,, " cnlisted

------ -------
" dL\ ,kC'k.hl~,- "ma,! com
Viejo \','~'::~ ",:dl.-~o, Com
')'-'":1 k,lIhl.i. ;--;'Il',IyaL1.[!:Il~:
inDOS

16 DOcky"rd ."-
EnginL'~-'-lL1" \\'p' -k, T,." '~I}.2- -'(,{,Ill2i'. I ?\ol
enlLsted
UJ (DI:\\'), ra., .S8-02 -".'(",il i 2-; I ill DOS
~-Lll,1II: d ['1\Ildi-"]t",, :ellOOc('m

-
\I'('b: \\"\\ \I .dc'\"bd.Cl';ll
I