THE ROLE OF MARITIME SHIPPING IN ENHANCING

BANGLADESH ECONOMIC GROWTH: CHALLENGES

& OPPORTUNITIES

By
ABDUL FATTAHU SAKIN
Cadet No : 2025
Reg No : 0201011800017
Supervisor
SUNANDA MAJUMADAR
Assistant professor
Dept of Port and Shipping Management
BANGLADESH MARITIME UNIVERSITY

BANGLADESH MARITIME UNIVERSITY

AUGUST 2025

A Thesis Submitted to the Bangladesh Maritime University, Bangladesh in

partial fulfillment of the requirement for the degree of Bachelor of Science in
Nautical Science
 SUPERVISOR’S APPROVAL

The Thesis titled “THE ROLE OF MARITIME SHIPPING IN

ENHANCING BANGLADESH ECONOMIC GROWTH:

CHALLENGES & OPPORTUNITIES” Submitted by ABDUL

FATTAHU SAKIN, Bearing Cadet No: 2025 &Registration No:

0201011800017 been accepted as satisfactory in partial fulfillment of the

requirement for the degree of Bachelor of Science in Nautical Science.

Approved By:

SUNANDA MAJUMADAR

Assistant professor

Dept of Port and Shipping Management

BANGLADESH MARITIME UNIVERSITY

 DECLARATION

It is hereby declared that,

1. I affirm that this thesis is the result of my own work, completed as
part of the B.Sc. (Hons.) in Nautical Science at Bangladesh
Maritime University.

2. No portion of this thesis includes content previously published or

authored by others, unless properly cited with full and accurate
references.

3. This work has not been submitted, in whole or in part, for any other
academic qualification at any university or institution.

4. All significant sources of assistance and guidance have been duly

acknowledged.

A thesis submitted by
Name : Abdul Fattahu Sakin
Cadet No : 2025
Reg No :0201011800017
Batch:39th
Department of Nautical Science
MARINE FISHERIES ACADEMY

2
 ABSTRACT
The seas and coastal zones are of great importance to the national economy for the
littoral states. With such importance, the concept of maritime shipping activities has
emerged recently. Maritime shipping is the lifeline of Bangladesh’s economy,
carrying over 90% of the nation’s international trade. With its strategic location along
the Bay of Bengal, Bangladesh’s economic growth is deeply connected to the
efficiency and development of its shipping sector. This study explores how maritime
transport supports trade, creates employment, and opens new opportunities through
the sustainable use of sea resources. It also examines key challenges, including
environmental risks, aging fleets, limited port facilities, and policy shortcomings. The
research highlights the vast potential of the blue economy, particularly in port
modernization, coastal shipping, and resource management. Findings emphasize that
strengthening maritime policies, upgrading infrastructure, and fostering cooperation
among stakeholders are essential for maximizing economic benefits while
safeguarding marine ecosystems. By combining growth with sustainability,
Bangladesh’s shipping industry can become a powerful driver of long-term
prosperity. At the same time, it identifies pressing challenges, including
environmental degradation, outdated shipping fleets, insufficient port capacity, and
policy and regulatory shortcomings. The research also explores the untapped
opportunities that lie within the Bay of Bengal, such as modernizing seaport
infrastructure, expanding coastal shipping networks, and promoting environmentally
responsible marine resource extraction.

Keyword: Maritime Transportation, Coastal Nation, Sustainable Development Goal

(SDG-14), Marine Eco, Shipping, Infrastructure.

3
 ACKNOWLEDGEMENT
The aim of this study is to examine the role of maritime shipping in enhancing
Bangladesh economic growth challenges & opportunities and to propose implacable
measures to improve our coastal prone area capability in order to contribute to
Shipping operational efficacy. As a researcher, I firmly believe that overcoming the
prospect and challenges of maritime shipping economic activities will certainly
provide requisite impetus to overall operational efficiency of the shipping industry to
cope up with future economical requirements. The research is a part of my B Sc
curriculum. When I was given the choice to select this topic as my research work, I
found it most interesting for me. My research questions and research hypothesis were
formulated together with my Supervising Officer Guide. The research was difficult to
correlate activities of maritime shipping in Bangladesh with attainment of coastal
nation prospects and challenges. However, extensive Shipping and Maritime related
study and investigation have allowed me to answer the questions that we identified. I
am grateful to my Academic instructors, Naval officers and Merchant Mariners who
have so generously participated in my survey and interview as well as teacher and
student of maritime university. My profound appreciation goes out to my supervising
officer Sunanda Majumdar Asst professor, Dept of port & shipping management for
all of his insightful counsel, inspiration, and direction. I particularly value the
unwavering support I received from the BMFA principal and other staff members
who I frequently spoke with Lt Cdr Nur Uddin Mohammad Khalid, (ND), PCGM, BN
It is worth mentioning that my research would not be a completed one without the
guidance of Dr Md Mazharul Islam Instructor of Nautical Science, Marine Fisheries
Academy, Fish Harbor, Chattogram. My sincere regards to my parents who always
remembered me in their prayers and for providing me with strength and love. Any
errors of fact, interpretation or judgment expressed in this Dissertation are entirely my
own and should not be attributed to the individuals mentioned above. Finally, I must
admit that this research is not a conclusive one and there are scopes for further
research.

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 TABLE OF CONTENT

DECLARATION ………………….….….....................................................................................................

ABSTRACT ………………………………................................................................................................

ACKNOWLEDGEMENT……………………..
………………………………………………………….IV

CHAPTER 1...............................................................................................................................................

INTRODUCTION...................................................................................................................................

1.1 Background and Rationale..............................................................................................................

1.2 Objective.........................................................................................................................................

1.3Significance of the Study.................................................................................................................

1.4 Scope of the Study...........................................................................................................................

1.5 Methodology of the study................................................................................................................

1.5.1 Types of Research....................................................................................................................

1.5.2 Methods of Data Collection......................................................................................................

1.5.3 Sampling Techniques................................................................................................................

1.5.4 Method of Data Presentation....................................................................................................

1.5.5 Targeted Population..................................................................................................................

1.6 Limitations of the study...................................................................................................................

CHAPTER 2...............................................................................................................................................

Review of Literature...............................................................................................................................

CHAPTER 3...............................................................................................................................................

Overview the Maritime Sector of Bangladesh......................................................................................

3.1 Overview of Blue Economy in Bangladesh....................................................................................

3.2 History Of Maritime Shipping Trade..............................................................................................

3.3 Importance Of Maritime Shipping Trade........................................................................................

5
 3.4 Shipping Services in Bangladesh....................................................................................................

3.4.1 Sea port Facilities.....................................................................................................................

3.4.2 Ship Building Industry :............................................................................................................

3.4.3 Ship Breaking Yard :................................................................................................................

3.4.4 Ship Husbandry Service :.........................................................................................................

3.4.5 Freight Forwarding Service :....................................................................................................

3.4.6 Custom Clearance Service :......................................................................................................

3.4.7 BGMEA (Bangladesh Garment Manufacture & Exporters Association) :..............................

3.4.8 BKMEA (Bangladesh Knitwear Manufacture & Exporters Association) :..............................

3.4.9 DOS (Department of Shipping) :..............................................................................................

3.4.10 BIWTA (Bangladesh Inland Water Transportation Authority):.............................................

3.4.11 WTC( Water Transport Cell ):................................................................................................

3.4.12 BOGSOA (Bangladesh Ocean Going Ship Owners Association):.........................................

3.4.13 FBCCI (Federation of Bangladesh Chambers of Commerce &Industries) :

...........................................................................................................................................................

3.4.14 Berth Terminal & Ship Handling Operation :........................................................................

3.4.15 Other Government Agencies :................................................................................................

3.5 Prospects and Challenges of Blue Economy in Bangladesh :............................................................

3.5 .1 Shipping :.................................................................................................................................

3.5.2 Coastal Shipping /Feeder Services :........................................................................................

3.5.3 Fisheries:...................................................................................................................................

3.5.4 Marine Aquatic Products :........................................................................................................

3.5.5 Marine Biotechnology..............................................................................................................

3.6 Resources & Energy of our Blue Economy :......................................................................................

3.6.1. Oil And Gas :...........................................................................................................................

3.6.2 Sea Salt Production :.................................................................................................................

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 3.6.3 Ocean Renewable Energy :.......................................................................................................

3.6.4 Blue Energy (Osmosis) and Biomass :.....................................................................................

3.6.5 Marine Minerals Mining :.........................................................................................................

3.7 Marine Tourism :.............................................................................................................................

3.7.1 Coastal Tourism :......................................................................................................................

3.7.2 Curies Tourism :.......................................................................................................................

3.8 Conclusion :.....................................................................................................................................

CHAPTER 4...............................................................................................................................................

Prospect & Challenges Maritime Shipping in Bangladesh.................................................................

4.1 Overview :.......................................................................................................................................

4.2 Present Scenario of Shipping in Bangladesh and Its Impact on Economic

Growth :.................................................................................................................................................

4.3 Main Challenges :...........................................................................................................................

CHAPTER 5...............................................................................................................................................

Analysis of Research Findings and Result............................................................................................

5.1 Overview:........................................................................................................................................

5.2 Discussion of Findings....................................................................................................................

CHAPTER 6...............................................................................................................................................

Conclusion & Recommendations...........................................................................................................

6.1 Conclusion:......................................................................................................................................

6.2Recommendation:.............................................................................................................................

REFERENCE..............................................................................................................................................

APPENDICES..............................................................................................................................................

Appendix 1 : Map of Bangladesh...........................................................................................................

Appendix 2: Karnaphully river and Sea Anchorage...........................................................................

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 LIST OF FIGURE

Figure 1 : Basic Illustration of Blue

Economy…………………………………………………...………..11

Figure 2: Maritime area of Bangladesh ………...

…………………………………………..…….………..13

Figure 3: Export In Shipbuilding Sector InBangladesh…………...………………….

…..………………..20

Figure 4: Number of Ship Breaking Status …………………………….

…………….....…………………22

Figure 5: Demolition Statistics by major vessel type and country of

demolition……………..……...........23

Figure 6 : VTMIS System diagram of Chattogram port Authority………………….

………………….....36

Figure 7: Cargo Container Handled in Chattogram port

…………………………………..……………...40

LIST OF TABLES

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Table 1: Sea port of Bangladesh………………………………..

……………………………..…………..16

Table 2: Ship yard Statistics of Bangladesh………………………...……….……….

………………..…..19

Table 3 : Berthing Facilities in Chattogram Port ……….……………………….

………….…………......28

LIST OF ABBREVIATIONS AND ACRONYMS

BD Bangladesh

BSC Bangladesh Shipping Corporation

BMFA Bangladesh Marine Fisheries Academy

BMU Bangladesh Maritime University

WMU World Maritime University

RMG Ready Made Garments

GDP Gross Domestic Product

MDG Millennium Development Guide

VAT Value Added Tax

WTO World Trade Organization

CPA Chattogram Port Authority

MPA Mongla Port Authority

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 IMO International Maritime Organization

DOS Department of Shipping

WTC Water Transport Cell

BIWTA Bangladesh Inland Water Transport Authority

BOGSOA Bangladesh Ocean Going Ship Owners Association

BKMEA Bangladesh Knitwear Manufacture & Exporters Association

TEU Twenty Foot Equivalent Units

UNCTAD United Nation Conference On Trade and Development

ISPS International Ship & Port Facility Security Code

ICD Inland Container Depot

EPZ Export Processing Zone

VTMIS Vessel Traffic Management Information System

WB World Bank

FBCCI Federation of Bangladesh Chambers of Commerce & Industries

IT Information Technology

ILO International Labor Organization

ICZM Integrated Coastal Zone Management

MCPA Marine and Coastal Protected Areas

UNCLOS United Nations Convention on the law of the Seas

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 WSSD World Summit On Sustainable Development

BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical And Economic

Cooperation

EEZ Exclusive Economic Zone

BSBA Bangladesh Ship Breaking Association

11
 Chapter 1

INTRODUCTION

1.1 Background and Rationale

Bangladesh, a nation bordering the Bay of Bengal, presents us with the possibility of
having maritime links with the rest of the globe. The ancient Bengali mariner
possessed extensive understanding of shipbuilding, communication, navigation, and
seafaring. According to a 2006 WTO assessment, "In Bangladesh, where over 90% of
internationally traded goods are transported by sea, effective maritime transport
services and auxiliary services such as port and cargo handling are crucial for creating
a cost-effective business environment."(WTO, 2006)Reflecting how vital maritime
services including port and cargo handling are for efficient trade If it weren't for ships
and the shipping sector, the worldwide economy that supports our global civilization
would not be able to continue. The sea provides the means of transport for 80% of
global trade which grew by 4% in 2011, to 8.7 billion tones((UNCTAD), 2020). This
comment highlights the importance of the shipping industry on international
commerce. Bangladesh has one of the highest population densities in the world. The
country has a vast 720 km long sea coastline in the south(Md Saidul Islam Arif,
2023). In order to develop her economy, Bangladesh needs to diversify her economy.
One of the possible avenues for diversifying the economy is her maritime sector. We
will find this new way to make money through the sea. Exports and imports now
connect about two-fifths of Bangladesh's economy to the global economy. Our GDP
has been growing quickly in the last few years because of these. Therefore we expect
that with the higher GDP growth, Bangladesh government will take a few short, mid
& long term projects to implement in future which will prepare to support vision 2021
and 2041 also. Sea borne trade is the economic lifeline of our country. “On average
30% of the Annual Revenue of Bangladesh comes from import duty and taxes and the
imported goods are handled through Chittagong Port”(Begum, 2008). The Financial
Express reported that “Chattogram port handles over 90 per cent of Bangladesh’s
import-export trade and 98 per cent of Bangladesh-bound containers”.(Express,

1
2025)In general, the performance of the shipping sector and the maritime trade have a
significant impact on Bangladesh's economy.

1.2 Objective
The general Objectives of the proposed study is to know the problem in shipping
perspective of blue economy as well as contributions of shipping in our country
economy growth, how to overcome it & it relates with economic growth, how will we
get the maximum advantages from the shipping trade in the era of economic
development.

To understand how maritime shipping helps Bangladesh’s economy grow,

especially through trade, earning foreign currency, and increasing GDP.

Find out the main problems in Bangladesh’s shipping sector, like weak
infrastructure, poor policies, and slow port operations.

To look at the chances Bangladesh has to improve its shipping sector by using the
Bay of Bengal, joining regional trade, and building better ports.

To see how the Blue Economy can support shipping and help Bangladesh grow in a
way that’s good for both the country and the environment.

To suggest useful plans and policies that can fix the problems and get the most
benefit from maritime shipping.

1.3Significance of the Study

Globalization, set off during the last century, brought about a tremendous rise in
exchange of goods across the country. Building the new shipyard, Ship breaking
industry with effective assistance done by the other shipping service like freight
forwarding service , custom clearance service BGMEA ,BKMEA,DOS BIWTC
Etc.The thesis will enlighten the importance of proper government policy and national
regulation to attain sustainable development through blue economy. It will also
suggest some methods to collect the proper data of marine resources and evaluate

2
their economic value. So, policy makers can also take some ideas from the paper to
ensure the proper utilization of maritime resources through policy guidelines. It would
assist different marine based industries such as ship building industries, ship breaking
industries, and tourism facilities to evaluate their value from a national perspective.
As the blue economy concerns all these industries and provides sustainable
development of these industries, the paper will provide some suggestions for them to
achieve their goal. As the paper emphasized that more research is required in all
sectors of maritime resources of Bangladesh and it is a must for the country,
Bangladesh Marine Fisheries Academy can use their expertise in this sector to put
efforts in these researches which will help both the country and the academy.

Furthermore, the study would be useful to investigators who would like to take on
future investigations into this and / or similar areas. Finally the research will offer
information to the general people and allow them to understand their role in
sustainable development of the nation.

1.4 Scope of the Study

The study's scope included the time, space, and content boundaries of the research,
along with logical reasons for these limits. The study chosen was the first to talk about
the blue economy idea and where it stands in our country right now. The study was
considered ideal as it is the best time for the country to utilize the concept analytical
investigation was chosen because it allowed the researcher challenges of the SDG
concept. The study is limited to exploring and analyzing the prospects and challenges
of the blue economy in Bangladesh. For this study, the attention is on describing the
present contribution of shipping to Bangladesh, their causes , current strategies to face
the problem ,overview of the blue economy in Bangladesh and R & D aspect as an
activity in the overall shipping sector of Bangladesh.

3
1.5 Methodology of the study
This research paper is accomplished by various document analysis. It involves the
gathering data, figures, pictorials etc from previous research papers of some authors &
articles on some journals about shipping industry of Bangladesh worldwide. This
research study was completed utilizing the secondary data gathering method. A
simple statistical strategy is that in all approaches such as observation, interviews via
graphs, maps, pictorials, equations, tables, etc

1.5.1 Types of Research

Type of Research:The study used applied research, leveraging an empirical approach
to determine factual information. For this study, the collected data comprised
quantitative metrics to enable an informed analysis.

This study employed analytical research methodology. The analytical investigation

was chosen because it allowed the researcher to express his ideas on the topic.

● Research Design: The study employed Analysis, Qualitative, and

Quantitative Research Design to facilitate the acquisition of data from

contemporary literature on the subject for informed analysis.

1.5.2 Methods of Data Collection

The information gathered through questionnaires, interviews, diaries or any other
sources imply very little until the time of analysis and assessment. In a small or even
smallish investigation, one should not be recommended to collect large quantities of
information with the hope that something will be discovered. It should be avoided due
to the aim of generating or obtaining good output on the data based on gathering a
large volume of information that is irrelevant to this research project (Bell, 2009).
Saunders, Lewis and Thornhill emphasize that in all approaches such as observation,
interviews and questionnaires etc. specific efforts are made to ensure that all data
collected is reliable and validating (Saunders, 2009), which are as follows: -

a) Data is collected routinely.

4
 b) Data is interpreted systemically.
c) Data is compiled accurately.
d) There is a clear purpose to find things out.

The case study of shipping's role in economic growth and preliminary information
gathered from a literature review based on the goals, objectives, and presentation of
the issues form the basis of this dissertation. The participants were then given
questionnaires to complete in order to gather the qualitative data.

Secondary Data: Secondary different sources such as,articles, internet& other

relevant published materials by searching for existing works on shipbuilding industry
of Bangladesh & worldwide.

Basically completed this thesis based on passed researches contribution of shipping

industry in Bangladesh perspective such as reports from shipbuilding association like
reports of shipbuilding companies and training intuitions, Naval Associations , Marine
Fisheries & Marine Academy , Classification Society ,Shipbuilding Companies
websites and some marine nautical and engineering reports from various universities .

1.5.3 Sampling Techniques

According to (Kumar, 2011) quantitative research involves randomization to prevent
bias on the selection of a sample and according to the authors, randomization is
chosen with the view that it reflects the study population. Such an undertaking is not
made in qualitative research to make a selection of a sample. You make a deliberate
way of picking up respondents rich with information and who will supply you with
the knowledge you desire. That is why a simple random sample was utilized to gather
information about the shipping people in order to identify the importance of the
shipping trade to the economic progress of Bangladesh.

When a simple random sample is chosen, each possible sample of the same size
stands equal probabilities of being chosen. Also, to ensure that sampling error is
minimal, the sample size was deliberately kept at a high level. The difference between
sample and population which is due to mere observations which are selected to
compose sample is what is referred to as sampling error.On the other hand, a few
experienced and information-rich seafarers currently working in the Chattogram port

5
were selected as a sample for the qualitative part of this dissertation. This time, the
sample size was kept open for the purpose of data saturation and to obtain proper
insight into the solution. Non-sampling errors can be the result of improperly chosen
sample observations or errors in data collection. increasing the number of incorrectly
chosen sample observations. This kind of error is not decreased by increasing the
sample size. Thus, efforts were made to collect data and observe samples carefully.
For this study, the analytical adoption sampling method was applied. Data collection,
the display of graphs and appropriate equations, and the demonstration of techniques
suitable for this study are all part of the methodology.

1.5.4Method of Data Presentation

The constraints by an exhaustive analysis of prior experimental , diagrams, pie charts,
and bar charts for clarification.

1.5.5 Targeted Population

This study mainly targeted shipping personnel of Bangladesh, especially experienced
seafarers currently working in the shipping services such as seaports , inland ports ,
shipyard , dockyard etc. From both the deck & engine department. Though the
concept of the contribution of shipping and its impact on blue economic growth on
Bangladesh is beneficial for peoples, this small population was selected because of
the time & resource limitations for this study.

1.6 Limitations of the study

The following limitations are identified during the research conducting process :

⮚ The location of the sample population was also a barrier due to the absence of

physical interaction. However, efforts were made to bypass these limits

through telephone discussions and the exchange of e-mail.

⮚ Time factor and budgetary constraints limit the extent of such study under

academic pursuit and without sponsorship.

⮚ Various obstacles were faced due to the poor research culture in the maritime

field in Bangladesh.
6
 ⮚ Due to lack of availability of information, centralizing the data was very

difficult.

Efforts are however made to overcome these limitations through discussion,

consultation ,telephone conversation and exchange of e-mails. I tried my best to
obtain the relevant facts and information that have been analyzed in the coming parts.
However, efforts were undertaken to address these constraints by an exhaustive
analysis of prior experimental studies. Furthermore, data gathered from secondary
sources was used to fill gaps due to the unavailability of practical facilities.

Chapter 2

Review of Literature
This chapter presents findings from previous studies related to maritime shipping and
its impact on economic growth in Bangladesh. It highlights key insights from books,
journal articles, research reports, and other academic sources that focus on shipping
trade, port development, and the blue economy. Several studies emphasize the vital
role of maritime shipping in facilitating international trade and contributing to GDP
growth. For example, (Alam, 2013)explained how improvements in port infrastructure
can directly boost trade efficiency and national income. Similarly, a WTO report
(WTO, 2006) noted that effective maritime transport and port handling services are
essential for a cost-effective business environment. Other scholars have identified
difficulties in Bangladesh's maritime industry. These include poor port management,
limited investment, policy gaps, and outdated logistics systems (Rahman, 2017).The
inefficiencies in Chittagong and Mongla ports have been particularly noted as major
bottlenecks for smooth trade operations. Studies on the blue economy (Kabir,
2020)suggest that Bangladesh holds significant potential in marine resource
exploitation, which can complement shipping activities and drive sustainable
development. Strategic use of the Bay of Bengal and regional connectivity through
initiatives like BIMSTEC and BCIM also appear as opportunities in several research
papers. This chapter draws on these sources to understand how maritime shipping
currently functions in Bangladesh, what problems exist, and what improvements have
7
been proposed in past literature. Maritime shipping has long been recognized as the
backbone of international trade and global economic integration. According
(Stopford, 2009), the sector is often constrained by underdeveloped infrastructure.
The efficiency, cost-effectiveness, and capacity of maritime transport make it
indispensable for both advanced and developing countries. In particular, for countries
with long coastlines and strategic geographic positions like Bangladesh, maritime
shipping holds even greater importance in enabling trade connectivity and access to
international markets. The development of maritime economics has provided a
structured lens through which the impact of shipping on national and regional
economies can be studied. Other scholars have identified difficulties in Bangladesh's
maritime industry(Ricardo, 1817), when applied to maritime trade, suggesting that
countries can maximize economic benefits by specializing in sectors where they have
cost advantages and accessing other goods via maritime imports. Furthermore, the
port economics model developed by (Goss, 1990)emphasizes that efficient ports not
only facilitate trade but also act as catalysts for industrial and service sector growth
around coastal areas. Numerous studies underscore the correlation between efficient
maritime transport systems and economic growth. (Limão, 2001)found that poor
transport infrastructure, including maritime infrastructure, significantly increases
trade costs, especially for landlocked and low-income countries. Similarly,
((UNCTAD), 2020)notes that improvements in port efficiency and shipping
connectivity directly contribute to higher trade volumes, increased foreign investment,
and stronger GDP growth. The role of maritime transport has also been highlighted in
the context of global supply chains, where shipping is a critical enabler of just-in-time
manufacturing and global distribution networks. For many developing nations,
especially those in Asia and Africa, maritime shipping presents a unique opportunity
to leapfrog into the global economy. However, the sector is often constrained by
underdeveloped infrastructure, inefficient port operations, and outdated regulatory
frameworks. A study by (Wang, 2007) emphasized that investments in port
automation and logistics can dramatically enhance a country’s competitiveness.
Similarly, research by (Clark, Dollar, & Micco, 2004) shows that port efficiency is
more influential on trade than reducing tariffs, especially in developing countries.

8
The efficiency, cost-effectiveness, and capacity of maritime transport make it
indispensable for both advanced and developing countries, and has long relied on
maritime shipping for the bulk of its international trade. Studies by (Rahman M. M.,
2012)highlight that over 90% of Bangladesh’s import and export activities are
conducted via maritime routes, primarily through the Port of Chattogram. However,
despite this heavy reliance, several research works, such as those by (Islam,
2015)have identified serious inefficiencies, including port congestion, inadequate
handling equipment, and delays in customs clearance. The concept of the "Blue
Economy," as promoted by the Bangladesh government in recent years, has also
received scholarly attention. (Ahmed, 2018) argues that proper utilization of
Bangladesh's maritime resources could significantly boost GDP and create
employment, especially in coastal and underdeveloped regions. Moreover, the
growing importance of the Belt and Road Initiative (BRI) and its maritime
component, the 21st Century Maritime Silk Road, has also prompted studies
exploring how Bangladesh can leverage its ports for regional trade connectivity
(Chowdhury, 2020)

Chapter 3

Overview the Maritime Sector Of Bangladesh

3.1 Overview of Blue Economy in Bangladesh

The Blue Economy is a concept that suggests a better observation of our blue or ocean
resources. The concept of the Commonwealth Blue Charter is based on the premise
which has highlighted The efficiency, cost-effectiveness, and capacity of maritime
transport make it indispensable for both advanced and developing countries. In
essence, it pays attention to the values of the Commonwealth such as equity and
participation of the people in the end-use of the coastal and marine resources in
decision making. It is environmentally friendly in supporting all the Sustainable
Development Goals (SDGs) of the UN, which include SDG 14: "Life below water"
(Nations et al., 2018). It recognizes that it will require aggressive, concerted effort to
manage, defend and conserve our seas in a sustainable manner to the benefit of the
current generation, and also to the future generation. The blue economy is yet to be

9
developed as a development plan because it envisages including the economic
development and models of companies based on oceans in the spheres of social
inclusiveness and environmental sustainability to any nation. Bangladesh in this case
shall not be an exception. Since the nation possesses a great deal of aquatic resources,
and the third neighbor of the country is the Bay of Bengal, Bangladesh can reach a
stage when the concept of the blue economy can be used to address most of the acute
matters. The blue economy was initially projected to various countries in the Blue
Economy Contact Paper that was launched at the 2020 summit of the UN, a
sustainable development conference that took place at Rio de Janeiro (Nations U.,
2012). This concept was developed by Gunter Pauli in his book titled The Blue
Economy: 10 Tears, 100 Innovations, and 100 Million Jobs though it was popularized
when he gave the speech at the UN conference in 1994. This paper suggested the new
development paradigm to the developing nations possessing marine based resources
and identified how different new ideas can be incorporated into the concept of the
green economy such as low carbon, resource efficiency and social inclusion. The idea
of the blue economy can be applied to various meanings, according to one of the
studies published in 2015, entitled The Blue Economy: Growth, Opportunity and a
Sustainable Ocean Economy, released by the Intelligence Unit. Like the ocean
economy, as reported, besides the established longstanding ocean industries, the
ocean economy will also be characterized by new and emerging offshore renewable
energy, deep-sea mining, and marine biotechnology businesses. The blue economy is
not always simply meant to be the ocean economy as an economic growth. It has been
in the business- as- usual model where the most of the industrialized nations have
accepted the growth in its ocean economy to be the impact of this exploitation of the
very same maritime and marine resources which deals with commercial fishing,
shipping, the mining, oil, gas and mineral industries, without necessarily considering
the effects of its actions on the productivity or long-term sustainability of the very
resources. The large ocean resources versus small land area give an excellent chance
to the small island states to play a part in the economic development and eradicate
such issues as poverty, hunger, unemployment, etc. They are also the greatest losers
as far as the degrading marine resources are involved. Like the concept of the Green
Economy, the blue economy is meant to improve social justice and human well-being
and reduce ecological threats and scarcity to the maximum. It provides a generalized
10
measure in which the states with the coasts may not be able to use their ocean wealth,
and can start sharing the proceeds of the ocean wealth with everyone. All the
interested groups within the society or industry must be captured and involved to
realise the full potential of the blue economy. In his research article, Manikarachchi
(2014) attempted to find out the potential of the blue economy of South Asia by
giving the heading of his article as The efficiency, cost-effectiveness, and capacity of
maritime transport make it indispensable for both advanced and developing countries.
The author had been made aware of the current economic policies in the area,
majority of which is grounded on the green revolution.

In addition to market opportunities, the blue economy helps vulnerable states lessen
the frequently life-threatening consequences of climate change by protecting and
developing more intangible "blue" resources like coastal resilience, carbon
sequestration, and traditional lifestyles.

FIG 1 : Basic Illustration of Blue Economy ; (Source- Mia, Md. (2020). Prospects
of the Blue Economy for Bangladesh.)

(Nations T. C., 2018) Secretary-General Patricia Scotland: "The Blue Charter will
assist nations in creating an integrated approach to building the blue economy, one
that takes into account the value of often overlooked sectors like artisanal fishing and
11
the contributions of women and young people.Although these papers did not focus on
Bangladesh separately but we can find out the possibilities and challenges of blue
economy for the country through these researches. The blue economy has vast
opportunities. But research to use this concept to develop the country is very rare.
And also statistical data about the maritime resources of Bangladesh is very rare. Blue
economy can ensure the eradication of poverty in Bangladesh. For that research is
needed to ensure the sustainability of the maritime resources which will be used.
Therefore this study has intended to focus on filling the gap of using the blue
economy concept in Bangladesh to eradicate the poverty problem and on the possible
ways to face the challenges which will come with the opportunities.

3.2 History Of Maritime Shipping Trade

Marine shipping history dates back thousands of years, driven by humanity's desire to
discover what lay beyond the seas. Today, maritime commerce remains vital, just as
it has been throughout history, although the nations benefiting from these trade routes
have changed over time.

3rd Century BCE – 2ND Century CE-Early trade routes established

Around 5000 years ago, the Arabian Sea—bordered by what is now India to the east
and Pakistan to the north—emerged as one of the earliest major maritime trade
corridors for coastal vessels. Ships of that era typically hugged the shoreline, avoiding
deep-sea navigation. Overland travel posed significant risks due to harsh desert
conditions and frequent attacks on caravans, making sea routes equally perilous yet
more practical. In the early stages of oceanic navigation, sailors relied heavily on the
mariner’s astrolabe to chart their course using celestial bodies, as the magnetic
compass had not yet been invented—it would only appear in China during the 11th
century (Sobel, 1995). During this time, Roman merchants operated vast fleets, with
their most capable vessels able to traverse the Mediterranean in roughly a month.
Economically, transporting bulk goods like grain or building materials by sea was far
more efficient, costing as little as one-sixth compared to land-based logistics
(Stopford, 2009).

7th-13th Century CE – The Arab Age of Discovery

12
In this era, the Arab Empire started to build trade routes across Asia, Africa, and
Europe. Due to the limited accessibility of rivers in the Empire's Islamic territories,
maritime travel was crucial. These superior Arab vessels, called Qaribs, could sail
across oceans instead of hugging the coast, thanks to a better grasp of celestial
navigation, which greatly reduced the time needed for cargo delivery. (Hourani, 1995)

15th-19th Century CE –Age of Discovery

Centuries later, Europe entered the Age of Discovery, as advancements in navigation

and shipbuilding from north-western Europe enabled more expeditions across the

Fig 2 : Maritime Area of Bangladesh ; Source - Saha, Kawshik & Alam, Afsana.
(2018). Planning for Blue Economy: Prospects of Maritime Spatial Planning in
Bangladesh. AIUB Journal of Science and Engineering (AJSE). 17. 59-66.
10.53799/ajse.v17i2.10.

Atlantic to the Americas. Consequently, many of these items were shipped to Asia
for trade. During the early 1600s, various European countries, including England,

13
France, Denmark, and Portugal, set up East India companies. The Dutch East India
Company was the most successful and is regarded as the first truly global company
(Subrahmanyam, 1993). By the mid-19th century, even though the East India
companies had achieved remarkable success, they had all been dissolved, with many
struggling with insolvency.

19th-21th Century – Modern Maritime Shipping

The Suez Canal opened in 1869, making it possible to transport goods between
Europe and Asia without the need to sail around Africa. After 45 years, the Panama
Canal was completed, linking Opened in 1869, the Suez Canal allowed ships to
transport goods between Europe and Asia without the long journey of sailing around
Africa. After 45 years of construction, the Panama Canal was finished, connecting
the Atlantic and Pacific Oceans and allowing ships to traverse between the two.
These artificial canals transformed the trading potential of many nations while
simultaneously hindering trade for others. As an example, the Panama Canal enabled
the West Coast of America and the nations around the Pacific Ocean to enhance their
trade (McCullough, 1977). With nearly 15,000 vessels passing through the canal in
2008, compared to just 1,000 when it first opened, it's clear that maritime traffic is
becoming increasingly important in the 21st century.

3.3 Importance of Maritime Shipping Trade

International shipping accounts for 90% of global trade activities. Shipping plays a
vital role in the worldwide economy. We can't envision international trade, the bulk
transport of raw materials, or the import and export of affordable food and
manufactured goods without shipping. The flourishing seaborne trade is offering
customers worldwide competitive freight rates. With improved shipping efficiencies
and the onset of economic liberalization, the industry appears set for ongoing growth.

(Organisation, 2015), In 2016, when the Secretary-General of the IMO announced

the theme for International Shipping Day, he said, "Shipping: indispensable to the
world," "Currently, the international shipping industry manages about 90% of
global trade." The import and export of goods on the scale necessary to sustain
modern life would be impossible without shipping. The continuous rise in seaborne
trade is providing advantages for consumers worldwide through competitive freight
14
rates. However, the truth is that most individuals don't realize just how vital
shipping is to their daily lives."

In this manner, shipping has shaped the evolution of our daily lives, even if we don't
always realise it. Here are four reasons why shipping is the preferred delivery
method to help clarify:

1. It’s Less Expensive:One of the most economical methods of transporting goods

over long distances is through the shipping industry, which offers the most
affordable freight rates.
2. It’s The Ideal Way to Move Huge Amount of Cargo: Compared to trucks or
aero planes, vessels are designed to carry much larger volumes of raw
materials and cargo. Furthermore, shipping makes it easier to move hazardous
materials, gases, and liquids. There are specific rules for this topic in order to
protect the cargo, the crew, and the ship.
3. It’s Safe:According to a report from Aliens, the percentage of losses brought on
by incidents during shipping by sea has fallen to its lowest point in ten years.
4. It’s Environmentally-Friendly::The maritime sector is less harmful to the
environment than the vehicle transport sector. The shipping industry is
responsible for only 12% of the total pollution caused by human economic
activity.(Seas-at-Risk, 2023)
5. It’s Business- Friendly: In comparison with other industries, the shipping
industry is more business-friendly than others. Today, over 90% of trade is
carried out by the maritime industry(Kaluza, 2010)

3.4 Shipping Services in Bangladesh

3.4.1 Sea port Facilities:

ChattogramPort:

Chattogram Port is the main harbor of Bangladesh. It is the primary method for
nations to engage in trade with one another. In 2020 and 2021, Chattogram Port
managed approximately 134.1 million metric tons of cargo, comprising 3.34 million
TEUs of containerized freight; this accounts for about 92% of Bangladesh's total
maritime trade (Iqbal, 2021). To keep pace with national GDP growth, container

15
traffic at Chattogram Port in recent years (2020–2021) has grown by 16–17% (Iqbal,
2021). Chattogram Port plays a vital role in boosting the national economy. To tackle
the challenges posed by globalization and the opening up of the world economy and
trade, Chattogram Port has embarked on several ambitious projects aimed at boosting
its capacity, enhancing efficiency and service quality, and building suitable facilities
to transform it into a world-class regional port.

Port Name Location Type

Port of Chattogram Chattogram Large Sea Port (Major Port)

Port of Mongla Mongla, Khulna Large Sea Port (Major Port)

Port of Payra Patuakhali, Barisal Large Sea Port (Major Port)

Matarbari Port Matarbaru, Cox-bazar Deep Sea port

Table 1 : Sea Ports of Bangladesh

MonglaPort :
Mongla Port: Mongla is Bangladesh's second busiest port. Located in the
southwestern region of the country, in Bagerhat District, it is situated 62 km north of
the Bay of Bengal coastline. Mongla is among the many significant ports in
Bangladesh. Khulna, the region's industrial hub, is located 48 kilometers from
Mongla. Due to increased activity, several international shipping lines are opting for
Mongla over Chattogram, Bangladesh's main port. The Mongla Export Processing
Zone (Mongla EPZ) is located at the port as well. During 2020–21, Mongla Port was
used by 1,236 ships (Sangstha, 2021). Mongla is connected to the world's major ports,
especially those located in Asia. Hundreds of ships arrive at the port each year, with
16
most having passed through Singapore, Hong Kong, and Colombo. Moreover,
Mongla is linked to most of Bangladesh's inland ports, especially Dhaka and
Narayanganj. Mongla has a coastal shipping agreement with India and also a direct
shipping link with the port of Kolkata in the nearby Indian state of West Bengal.
Additionally, a maritime shipping agreement has been established with Thailand.
PayraPort :
In southern Bangladesh, there is a small seaport called the Port of Payra. In 2013, a
legislative act established it. In 2016, the port was formally opened. It is situated close
to the Bay of Bengal on the Ramnabad Channel. The port was established in response
to requests for a seaport in the Barisal Division, which is located along the coast.
According to Bangladeshi officials, a deep water port has been suggested for the
region, which would serve both southern Bangladesh and nearby countries like Nepal
and Bhutan. By 2019, Payra hopes to have a jetty-side business.

3.4.2 Ship Building Industry:

The shipbuilding industry in Bangladesh is emerging and has significant potential.
The shipbuilding history of Bangladesh dates back to the early modern era. With the
recent success of exporting locally built ships, the shipbuilding industry is looking
very promising. In Bangladesh, the shipbuilding industry has recently emerged as a
vital component of the economy and industrial landscape.

The other emerging concept which is getting more popular is the situation referred to
as the Blue Economy which proposes enhanced monitoring of our blue or ocean
resources. The assumption of the concept of the Commonwealth Blue Charter which
focuses on the notion that there are positive relations between the ocean and the
climate change and the wellbeing of the Commonwealth citizens is the assumption.
Simply put, it focuses on the norms of the Commonwealth including equity and
people participation in end consumption of coastal and marine resources in the
decision making process. It guarantees the adherence to all the Sustainable
Development Goals (SDGs) of the UN such as SDG 14: Life below water (Nations et
al., 2018). And, in the best interest of not only the future generation, but the present
one as well, it knows that this will demand a bold concerted action to ensure that our
seas are placed under sustainable management, protection and preservation. As of
now, the blue economy remains a fledgling development project due to its potential
17
conceptualisation of introducing oceanic concerted economic growth and business
paradigms on the social inclusiveness and environmental sustainability of any nation.
Bangladesh will not be one of the exceptions in this regard. Marine resource supply is
great in Bangladesh, and the third neighbor is the bay of Bengal; therefore, the
country will implement the idea of a blue economy to a level where a variety of
burning issues can be reestablished. The blue economy was first estimated as having
been projected to the various nations in the report called Blue Economy Contact Paper
that was first unveiled in the 2012 Rio +20 UN conference on sustainable
development in Rio de Janeiro (Nations U., 2012). It was developed by Gunter Pauli
in his 2010 book of the same title as The Blue Economy: 10 Tears, 100 Innovations,
and 100 Million Jobs where it was mentioned but it gained a global following when it
was presented at the UN conference in 1994. The article has proposed the new
development paradigm to the developing countries with a marine resource and how
the various new ideas can be integrated into the concept of green economy like; low
carbon, resource efficiency and social inclusion. The blue economy as such a notion
could arguably be viewed in a matter of ways and that is what one of the research that
came out in 2015, entitled The Blue Economy: Growth, Opportunity and a
Sustainable Ocean Economy by the Intelligence Unit, confirms. The ocean economy
will also take a back seat to an expanding and emerging offshore renewable energy,
deep seabed mining as well as marine biotechnology enterprises (as it is stated in
report) besides the already established ocean industries. The blue economy is not
limited to only the ocean economy as the possible meaning of the economic growth. It
has also been noted that the business- as- usual model has seen the upsurge in ocean
economy in most of the industrialized nations as the effect of the over-exploitation of
the same maritime and sea resources, which comprise commercial fishing, shipping
and the mining, oil, gas and mineral sectors without making much concern of learning
how their actions can affect the productivity or long-term sustainability of the same
resource. The abundance of ocean resources compared to the size of the land area is
advantageous to the small island countries and can provide it with a great opportunity
to also contribute to the international economic growth and eradicate such challenges
as poverty, food insecurity, and unemployment. The industry of shipbuilding employs
an estimated two million employees not to mention those that are directly employed
or the offices.
18
 1. Desh Shipbuilding and Engineering
2. Meghna Shipbuilders & Engineering
3. Khan Brothers Shipbuilding and Dockyard
4. Andanas Shipyard and Slipways Ltd
5. High Speed Shipbuilding and Engineering Company
Number of Company Year of Location of the Type of Shipbuilding
Establish Shipbuilding Factory Company Capacity
ment

Western Marine Shipyard 2000 Chattogram Private International

Ltd Quality Ships

Khulna Shipyard Ltd 1957 Khulna Public Naval Ships

Desh Shipbuilding and 2008 Chattogram Private Average Sized

Engineering Ships

Meghna Shipbuilders & 2008 Dhaka Private Average Sized

Engineering Ships

Khan Brothers 2007 Meghnaghat, Private Average Sized

Shipbuilding and Dockyard Narayanganj Ships

Andanas Shipyard and 1983 Buriganga ,Dhaka Private International

Slipways Ltd Quality Ships

High Speed Shipbuilding 1960 Chattogram Joint Venture International

and Engineering Company with Japan Quality Ships

Karnafully Shipbuilders 1994 Karnafuli River Private Average Sized

Limited Bank,Chattogram Ships

FMC Dockyard 2007 Boalkhali, Chattogram Private Average Sized

Ships

19
Western Fisheries Shipyard 2010 Karnafuli, Chattogram Joint Venture International
Ltd with Western Quality Ships
Marine Shipyard
Ltd

Dockyard and Engineering 1922 Sonakanda,Narayanganj Public Naval Ships

Works

6. Karnafully Shipbuilders Limited

7. FMC Dockyard
8. Western Fisheries Shipyard Ltd
9. Dockyard and Engineering Works
10. Western Marine Shipyard Ltd
11. Khulna Shipyard Ltd

Following its recent success in exporting oceangoing ships, Bangladesh has generated
$200 million in foreign exchange earnings since 2007

♣ 4  Passengers boats to Mozambique

♣ 1  2900 DWT Ice-class Multipurpose vessels to stellar shipping, Denmark

♣ 1 1 Floating Reception Vessel to LAMOR Corp. AB, Finland

♣ 2  Passenger Carriers to Karachi port Trust, Pakistan

♣ 1  RORO ferry to Hundested RoervigFaergfart, Denmark

♣ 1  Passenger Ferry to TEMESA, Tanzania

♣ 1  3800 DWT ice-class Multi purpose vessels to Ecuadorian Navy Company,

Ecuador.

♣ 1  Car Ferry for Uganda National Roads Authority, Uganda

20
♣ 1  Intl SOLAS Passenger Ship for New Zealand Ministry of Foreign Affairs

& Trade.

♣ 8  5200 DWT Ice-class multipurpose vessels to Groan Shipping, Germany

Table2: Ship Yard Statistics of Bangladesh [Source: Shipbuilding Company

websites of Bangladesh]

Currently, the following export projectors are in progress and are set to be
delivered within the next year.

▪ 10  8100 DWT Mini bulk carrier for JSW, India

▪ 1  Offshore patrol Vessel for Dept of Fisheries, Kenya

▪ 1 15 m Tug For Gambia Groundnut Crop, Gambia

▪ 10 self- propelled barges for Gambia

▪ 1  Landing Craft for UAE based owners.

21
Figure 3: Export In Shipbuilding Sector in Bangladesh; (Source –
NBRhttps://nbr.gov.bd/)

The industry is currently working on $250 million projects abroad. In order to meet
the growing demand for ships worldwide, the largest shipyards are hoping to secure
more orders from overseas in the near future. It should be noted that China, South
Korea, and Japan are not interested in producing smaller ships; instead, they are
constructing extremely large, specialized, and high-tech ships. This small- and
medium-sized ship industry is valued at about $200 billion worldwide. Bangladesh
stands to gain $2 billion if it can secure a 1% share of this market.The shipbuilding
industry in Bangladesh is flourishing, and things are getting better every day.
However, in order to attract orders for new ships, the nation's infrastructure must be
updated. This business requires a significant amount of capital investment because of
the nature of the heavy-tech engineering activities. At the same time, shipowner prices
must be extremely competitive to attract shipowners to place orders in Bangladeshi
yards and compete on a global scale with countries like China, Korea, and India,
where capital investments are encouraged by the government.Even though the nation
has a few renowned shipyards, it is getting increasingly difficult to maintain
competitiveness while bearing the weight of large capital investments because of the
22
global financial crisis and the unusually high interest rate. Therefore, a long-term
loan facility with a single-digit rate and a minimum 12-year delay should be made
available to support this enormous industry. Following widespread mass employment,
export diversification, backward connections, and many other factors, this would
guarantee the industry's growth, which would benefit the economy. To advance the
industry and create larger oceangoing vessels, more money is also required for
research and development.

3.4.3 Ship Breaking Yard:

Ship breaking was considered a highly mechanical process that was limited to
industrialized nations, particularly the United States, the United Kingdom, Germany,
and Italy, until the 1960s.The ship's owner took their vessel to Indian scrap yards in
the early 1980s in order to make as much money as possible. Bangladesh, Pakistan,
and China. Additionally, workers are going hungry in Vietnam and the Philippines
due to inadequate safety, health, and pay standards. Currently, South Asia,
particularly Bangladesh, India, and Pakistan, is the global center for the ship breaking
and recycling industry. Seventy to eighty percent of the global oceangoing vessel
recycling market is accounted for by these three nations. Only about 5% of global
tonnage is scrapped outside of these five countries, as China and Turkey control the
majority of the remaining market. Over 30% of the world's recycling capacity is
controlled by China and India, compared to 25% by Bangladesh, 9% by Pakistan, and
2% by Turkey. These capacity numbers are derived from IMO studies conducted over
the past decade. By 2023, despite an overall decline, Bangladesh still led with 2.8
million tonnes recycled, representing 37.2% of the global (Yousuf, 2023)

23
 Fig 4 :– Number of Ship Breaking Status (Abdullah et al., 2023)

Bangladesh's ship breaking operations are concentrated in Sitakunda (Bhatiary to

Barwalia), which is located on the Bay of Bengal, just north of Chittagong city. It is
extremely relevant to Bangladesh's poverty, both macro- and micro-economically.
For yard owners, investors, and money lenders, ship breaking is therefore a profitable
business that can be completed in a few weeks. It is estimated that Bangladesh's ship
breaking sector generates about $1.5 billion in revenue each year.

Fig 5: Ship Demolition Statistics by major vessel type and country of demolition

24
3.4.4 Ship Husbandry Service:
Ship husbandry includes all aspects of hull, rigging, and equipment maintenance,
cleaning, and general upkeep. Additionally, it can be used to describe maintenance
tasks that the Technical Department does not specifically handle.. Marine hive
Agency, Ayar shipping, Ever cheer shipping lines, Unicorn shipping, etc provide
Professional husbandry services for vessel ports of call to Chattogram and Mongla

ports in Bangladesh.

3.4.5 Freight Forwarding Service :

Free forwarding refers to the coordination and transport of goods via air, sea, rail, or
road by one or more carriers. Freight forwarding principles are based on the efficient
and economical transfer of goods while ensuring they are kept in good condition
throughout the journey. Freight forwarding companies in Bangladesh:

1. SBL trading house

2. All trans cargo service limited
3. Team freight shipping limited
4. Freight connection
5. FIT logistic limited
6. Aero ship Bangladesh
7. Fraser freight forwarders
8. Novo cargo service limited
9. EAS limited (Empire Air & Sea Ltd)
10. Madina maritime limited
11. Freight management limited
12. Arfan freight solution
13. S.G logistics private limited
14. Concord express(BD) limited
15. Circle Marine Ltd
16. GTS logistics International Ltd

25
3.4.6 Custom Clearance Service :
Working in customs clearance involves producing and submitting the paperwork
needed to enable export or import into the nation, representing customers during
customs inspection, calculating and paying duties, and allowing the customer to take
possession of the goods once the paperwork and goods have been cleared.

The following companies are delivering customs clearing service in Bangladesh :

1. Hazi Traders
2. SBL Trading House
3. Shohel B.M. Enterprise Ltd.
4. M/S omar& Brothers
5. M/S Tahera & Sons
6. M/S Abutaleb & Sons
7. Protha Enterprise
8. HS Enterprise
9. Nico Enterprise
10. Islam Trading House
11. Khair Brothers
12. Luna syndicate etc

3.4.7 BGMEA (Bangladesh Garment Manufacture & Exporters

Association) :
BGMEA is a national trade organization of Bangladeshi clothing manufacturers with
its headquarters in Dhaka. The activities of BGMEA are very much important for our
socioeconomic development.

❖ Trade facilitation and promotion

❖ Human resource development

❖ Monitors workplace safety and compliance

❖ Healthcare for the worker

26
 ❖ Generates technically proficient resources for the clothing manufacturing

facility.

3.4.8 BKMEA (Bangladesh Knitwear Manufacture & Exporters

Association) :
The Bangladeshi garment manufacturers' national trade association, the BGMEA, is
based in Dhaka. It is one of the main organizations assisting the government and the
Labor Organization in creating policy guidelines for the ready-made clothing industry
in Bangladesh. It is practically impossible to grow this industry sustainably, despite
some criticism regarding the members' dedication to improving the labor and
environmental conditions within this company. without the substantial contributions
and vital work of these organizations.

3.4.9DOS (Department of Shipping) :

The Ministry of Shipping oversees the Department of Shipping, a government
regulatory body in Bangladesh. It is in charge of creating and enforcing maritime
regulations as well as maritime safety.

3.4.10 BIWTA(Bangladesh Inland Water Transportation Authority):

The Bangladesh Inland Water Transport Authority, or BIWTA for short, is the
government agency in charge of overseeing and expanding the nation's inland water
transportation network. It is in charge of river and other internal waterway navigation,
infrastructure, and operations.

3.4.11 WTC(Water Transport Cell):

The majority of imported good roughly 90%are transported by waterways to various
parts of the nation, which is incredibly cost-effective because it is only a quarter of
what other modes of transportation cost. Because there was a lack of discipline in this
industry, the cost-rates (fear) of water transportation used to vary greatly. For
example, in the event of a vessel shortage, the fare on the Dhaka-Chattogram route
would skyrocket to taka 500–700 per ton; when vessels were available, the fare would
drop to taka 140–15. It would be difficult to maintain constant market prices for
goods and items as a result. Customers at the end of the supply chain would suffer as
a result. In light of all of this, a committee was established to oversee water

27
transportation in an effort to establish operational regulations and establish reasonable
transportation cost rates. It began working methodically and then proceeded to
construct the water transport cell (WTC). For those who are curious about water
transportation, at the moment, WTC functions as a one-stop service.

3.4.12BOGSOA (Bangladesh Ocean Going Ship Owners Association) :

An organization for owners of oceangoing ships is called BOGSOA. It was
established in 1989, and its headquarters are in Dhaka, Bangladesh.

BOGSOA’s vision & mission:

⮚ Presently, BOGSOA is a major burden for ship owners, primarily to raise the

bar for all ship owner businesses.

⮚ BOGSOA's primary mission is to enhance flag vessels for all foreign going

ships in Bangladesh.

⮚ It is also trying to interact with other notable international Ships owner

associations.

⮚ To make the association an effective one for the ship's owners and to advise

top-quality solutions for each customer and sustainable and profitable growth.

⮚ To participate in all IMO and ILO meetings as a member of Bangladesh.

⮚ To take up the Bangladeshi crew's visa problems issues directly with the
Ministry of Foreign Affairs.

3.4.13 FBCCI (Federation of Bangladesh Chambers of Commerce

&Industries) :
Bangladesh's top business association is the Federation of Bangladesh Chambers of
Commerce and Industries. It is protecting the nation's private sector's interests by
acting in a consultative and advisory capacity. The goals and duties of the FBCCI
board :

28
● To promote and encourage industry, trade, commerce, and investment.

Bangladesh's communication, human resources, tourism, and

agriculture industries.

● To organise and advance the interests of its establishing units, which

include trade, industry, and chambers of commerce.

● To participate effectively in the consultation process and engage with

the government, ministerial consultative committees, and other inter-

ministerial authorities and agencies to promote, stimulate, and
safeguard the interests of the private sector.

● To help the Chamber of Commerce, Industry, and Association

organize trade and industry exhibitions across Bangladesh.

● To collect and distribute data, including statistics, to support trade and

industry.

● To aim for the spread of commercial and technical economic

information to enhance the nation's commercial, technological,

industrial, and scientific education.

● To conduct research and study in order to advance trade and industry

● The FBCCI works to establish solid bilateral relations between and

among the various nations in the world. It assists in finding suitable

partners and promoting joint ventures and other forms of foreign direct
investment (FDI) in Bangladesh.

● It keeps close ties with other trade and industrial organizations, such as
the appropriate Economic Organization, and overseas national
chambers of commerce.

29
 ● FBCCI represents the private sector in various permanent government
communities and autonomous bodies.

● FBCCI also represents the private sector in a variety of communities

and task teams on particular issues that are periodically established by

the government.

3.4.14Berth Terminal & Ship Handling Operation:

Terminal facilities are very much needed for the development of Bangladesh. Incident
reports the following back facilities are provided for different nature and sizes of the
ship.
a) Berthing Facilities in Chattogram port :
Total Berths Quantity Length(m) Draft
Fertilizers Jetties 3 N/A N/A
Conventional Berths 6 190 8.5-9.2

Container Berth 11 190 8.5-9.2

Dolphin Oil Jetties (For POL) 3 N/A N/A

Grain Silo Jetty 1 N/A N/A

Cement/Clinker jetty 1 N/A N/A

Ammonia Jetty 1 N/A N/A

Dry Dock Jetties (repair) 2 N/A N/A

River Mooring Berths 5 N/A N/A

Jetty Berths (For POL) 1 _ _

Concrete Berth For Grain 1 _ _

loading
Pontoon Berth (For POL) 3 _ _

Pontoon Berths (For Cement) 1 _ _

Single Point Mooring 14 _ _

Source:http://www.cpa.gov.bd/

30
 Table 3 : Berthing Facilities in Chattogram Port

a) Berthing & Mooring Facilities in Chattogram port :

α Berth Owned & operated by MPA – 06 no’s

α Private jetty – 07 no’s

α Mooring facilities – 7 no’s

α Anchorage facilities – 15 no’s

α Draft: 7.50-8.50 m

3.4.15 Other Government Agencies :

In Bangladesh, there are some other governments and private agencies which are,
directly and indirectly, connected to the shipping business such as Bangladesh
Manpower Recruitment agency, Reliance Shipping Agency, Haq and Sons Agency,
express delivery and shipping, and Courier service like FedEx, etc.

3.5 Prospects and Challenges of Blue Economy in Bangladesh

The blue economy approaches focused on the concepts, principles, and benchmarks of
the blue economy, which were essential for eliminating poverty, securing nutrition
and food, adapting to and reducing climate change impacts, and creating sustainable
and resilient livelihoods. The blue economy boosts the value of oceanic resources
and services and creates jobs in remote regions, making it essential to carefully
balance conservation with the development of marine and coastal ecosystems.
Safeguard the health of marine ecosystems and promote a flourishing marine
economy. In the blue economy, prioritising people's well-being and livelihoods is
essential; thus, interactions among nations and stakeholders should adhere to
principles like equitable mutual benefit, mutual trust and respect, and benefit sharing,
among others, to ensure that all ocean-related businesses create positive and lasting
outcomes for everyone involved. Without a doubt, Bangladesh is among the most
developed nations. Transitioning to a blue reduction requires important and
systematic fluctuations to their strategy and regulatory management, governance, and
frameworks, along with identifying various maritime economic roles.

31
3.5.1 Shipping

It is the most environmentally friendly mode of transporting high populations of

people and goods as opposed to any other mode of transport when considering energy
efficiency. It is the backbone of international trade considering that nearly 90 percent
of the international trade is carried over international shipping. The global system of
rules on the design and operation of ships is determined by the International Maritime
Organization (IMO) which ratifies 52 treaties. More than 90 percent of foreign freight
in Bangladesh transit through the sea (Development. 2022), and the emergence of
globalization has elevated the importance of such flow, which is recently in
Bangladesh. Given an export and import system worth about USD 167 billion (2020-
21), we have with us some 305 hundred and 3500 foreign vessels who visit our ports
per year (Bank, 2022). Within 10 years, importers, exporters and consumers had been
spending 95 billion freeing goods in and out of Bangladesh in shipping companies,
airlines and freight operators, which is by far much more than the near value of
Bangladesh imports and exports. Since imports and exports have been growing on
average at a rate of 15.79%. and 15.43, respectively, it is obvious that the fleet of 90
registered merchant vessels the country has is insufficient to handle a part of the
growth (Academy, 2023). The projected freight would be above 435 billion in the
next decade. To retain amounts of USD 400 billion in the country.

3.5.2 Coastal Shipping /Feeder Services:

Coastal shipping, characterized by the use of medium-sized vessels for domestic and
regional freight transport, has great potential. Predictions indicate that there will be a
5–6% annual growth rate over the next ten years. Ports in India, Sri Lanka,
Singapore, Malaysia, Thailand, and Myanmar have the potential to become vital
feeder hubs, facilitating economical and timely transshipments through regional
gateways such as Singapore, Colombo, and Kallang, which would also aid in job
creation (Rahman S. &., 2023).

3.5.3 Fisheries:
In our EEZ, we have a population of approximately 475 fish species but on land there
are only 250. The fishing activities of the coast include about 200 industrial steel
boats and an estimated 57,000 artisanal wooden boats consisting of both mechanized

32
and non-mechanized, that go out to a depth of 60 kilometers and 40 meters water
(respectively). This has significantly limited our scope of catching the pelagic fishing
shoals in our coastline on the surface level. The most important species is Hilsashad
(Tenualosilisha), whose annual catch amounts to 340,000 MT, which provides generic
jobs and income to 2.5 million people, which is estimated to be approximately US 1.3
billion annually (Rahman M. A., 2018). Currently, hilsa is found in Bangladesh
(5060percent), Myanmar (2025percent), India (15 to 20percent), and the remaining 10
percent in other countries (Hossain, 2014). The harvest produced by BOB in the
2020-2021 period amounted to 96,568 metric tons of tiger shrimp (Fisheries, 2022)).
After this, they are likely to be sold in the United States, Europe, and Japan markets.
In the recent decade, giant mud crabs (Scylla serrata) and estuarine eels (Muraenesox)
have been exported to East Asian countries. In Shathkira, the crab fattening of
marginal farmers generates less than two out of five of the export of live crabs
(Bureau, 2023).

3.5.4 Marine Aquatic Products

Marine-based aquaculture includes the farming of oceanic species primarily intended

for human consumption, along with their initial processing. This sector is divided into
three main branches: shellfish cultivation in marine environments (such as oysters and
mussels), finfish farming in saltwater settings, and freshwater finfish production
involving species like eel, trout, and carp. In contrast, the development of aquatic
plant and algae farming remains relatively limited..

3.5.5 Marine Biotechnology

This is aimed at enhancing the biodiversity of a given earth compartment to sustain

the whole blue economy. Now with the latest advancements of gene sequencing
technologies on living things, we are only beginning to realize the potential of
organisms other than fish and shellfish to play a role in the blue economy, simply due
to the fact that there is much that remains uncharted and not well understood about the
underworld.

3.6 Resources & Energy of our Blue Economy

3.6.1. Oil and Gas

33
The real potential of offshore wells and the chance of creation opportunities in
Bangladesh has not been evaluated. To date, Bangladesh cannot locate approximately
26 trillion cubic feet (Tcf) of gas with only one-tenth in the offshore. Dismissing the
19 exploration wells that were drilled in the Bay of Bengal, only 2, Sangu and
Kutubdia, contained minor amounts of gas. As the 0.8 TcF Sangu deposits have been
depleted, 0.04 TcF Kutubdia deposits remain to be tapped. In addition, the Hatia (1.0
Tcf) and the Magnama (3.5 Tcf) wells have not yielded any commercially viable
hydrocarbon yet. Certain blocks in Bangladesh are believed to consist of the same
geological formation and they can harbor gas and oil as they are very close to the
known gas fields in Myanmar.

3.6.2 Sea Salt Production:

For many years, sea salt has been produced traditionally along Bangladesh's Cox's
Bazar coast. Farmers can apply roughly 20 tons of salt per hectare of produce during
an extended dry season. The yearly Salt output in the Coxes Bazaar coastline region
of Bangladeshi's 22 metric ton Where the Samut Sakhon of Thailand produced 43
metric ton (Hossain M. S., 2006).

3.6.3 Ocean Renewable Energy

Marine Coastal regions with suitable geographic and environmental conditions hold
significant potential for harnessing marine-based renewable energy sources, including
offshore wind, wave action, tidal fluctuations, and ocean currents, all of which
contribute to low-carbon energy generation. In Bangladesh, a 2 MW wind turbine has
been installed in the coastal area of Kutubdia; however, it remains non-operational at
present. Among the various ocean thermal energy conversion (OTEC) technologies,
tidal energy—encompassing both tidal range and tidal stream—is currently the most
advanced. Its viability is influenced by the thermal gradient between the warmer
surface waters and the cooler layers beneath, which drives the energy conversion
process.

3.6.4 Blue Energy (Osmosis) and Biomass

The salinity gradients between fresh and saltwater serve as the foundation for osmotic
energy. From the pre-industrial level, nutrient loads from the continent to the ocean
and the coastal zone have increased by almost twofold. Mostly from untreated or
34
inadequately treated sewage and agricultural runoff. It is more difficult for marine life
to survive when oxygen levels are low. live.

3.6.5 Marine Minerals Mining

Marine mineral deposits can be divided into three categories:

i. Metal-rich sulfide layers

ii. Deep-sea manganese crust formations
iii. Nodular clusters of iron and manganese
iv. Rare earth compounds with traces of yttrium

This was anticipated by 2020. The ocean's depths can provide 5% of the world's
valuable minerals, including cobalt, copper, zinc, and rare earth elements. In the next
decade, the global annual turnover from marine mineral mining could grow from zero
to €5 billion, and it may reach €10 billion by 2030 (Consulting, 2024).

3.7 Marine Tourism:

3.7.1 Coastal Tourism:

Seaside tourism is the largest market segment globally, making up 5% of the world’s
GDP and 6–7% of all employment. In 150 countries, it ranks among the top five
export earners, and in 60, it holds the top spot. For half of the least developed nations
(LDC), it is the main source of foreign exchange (WTTC, 2024).Coastal tourism
comprises –

1. Beach related recreation and tourism

2. tourism activities in the close to the sea and

3. nautical watercraft, encompassing yachting and marines.

Sustainable tourism may create new jobs and minimize property and tourism is human
resource intensive.

3.7.2 Curies Tourism

People visiting the coastline islands and tourist destinations on small cruise ships are
essential to the tourism industry. The sector's capacity to develop sustainable business

35
plans, make port infrastructure investments, and manage various security issues is
largely responsible for this growth. There will be a greater need for a customized
experience as the population ages and the number of educated people increases.

3.8Conclusion
Overall effective and innovative shipping facilities lead to the economic development
of the countries. The shipping industry's measurable or high-quality performance aids
in the advancement of the country. So with the development of poor facilities,
development of the shipbuilding industry, ship breaking yard, inland container depot,
and other shipping services, we can achieve our sustainable development goal
(SDGs) by 2030. Therefore, we can say that directly or indirectly. Shipping services
have been fulfilling to all sectors of the economy for developing a national economy
where the transport of a country serves as the lifeline.

Chapter 4

Prospect & Challenges Maritime Shipping in Bangladesh

4.1 Overview :
In this chapter, the author will try to find out the real scenario of shipping in
Bangladesh and how it impacts on our economic growth. The general constraint of
shipping and the main challenge of shipping are highlighted here.

4.2 Present Scenario of Shipping in Bangladesh and Its Impact on

Economic Growth :
In Bangladesh, shipping businesses have gone through quite a few numbers of his
structural translations. But now the Bangladeshi government, Chittagong Port
Authority, and other shipping services working in the field of shipping business work
a lot to overcome the problem facing the shipping business. So in light of the
statistics, the present scenario of the shipping business in Bangladesh is described
below.

a) Turnaround time of vessels: Bangladeshi seaports used to take roughly two

and a half days for foreign ships and five days for domestic ships.But recently
Bangladesh government took a decision to keep the port open for 24 hours.
36
 Because of this turnaround, the time of vessels for Bangladesh port is reduced
rapidly. Nowadays Bangladeshi ports are providing dwell time facilities.
b) VTMIS (Vessel Traffic Management information system):The main
intention of VTMIS system is to enhance maritime safety and security of the
Chittagong port authority area(7 NM of arc towards the sea from Potenga
point lighthouse and up to Shah Amanat bridge). But the VTMIS can monitor
the shipping not only of the CPA area but also outside the CPA area up to
24NM towards sea via RADAR, AIS and VHF system.

Figure 6 : VTMIS System diagram of Chattogram port Authority

VTMIS's system has 02 no’s control station each having 04 consoles, server
station etc.
1. Bandar Bhaban control station
2. Potenga point control station

It collects information front 4 no’s RADAR (range: 20NM/36KM) station which have
–

⮚ Total 09 no s Day/Night camera (Range: 5 km). 10 no’s camera (Range -16

km) installation in progress.

37
 ⮚ Automatic identification system(AIS)-Range:20/360km

⮚ Wireless VHF communication system(Range: 20/360km)

⮚ Microwave link.

b) jetties & mooring facilities:

General Cargo and Container Handling Facilities:

● CPA operates six berths dedicated to general cargo operations, facilitating the
movement of diverse non-containerized goods.

● Eleven specialized berths are allocated for containerized cargo, supporting

efficient loading, unloading, and storage of shipping containers.

Dedicated Bulk Cargo Terminals:

● Petroleum Handling: Three Dolphin oil jetties are designated for the transfer
of petroleum, oil, and lubricants (POL).

● Agricultural Commodities: A single jetty serves the grain silo terminal,

streamlining bulk grain import and export.

● Construction Materials: One berth is reserved for cement clinker, enabling

direct handling of raw cement inputs.

Fertilizer and Chemicals:

● One jetty facilitates Triple Super Phosphate (TSP) cargo.

● CUFL and KAFCO each operate a dedicated jetty for chemical and urea
fertilizer respectively.

● An additional berth is assigned for ammonia handling, ensuring safe transfer

of volatile chemical cargo.

38
Maintenance and Vessel Servicing:

● Two dry dock jetties are available for ship repair and technical servicing,
supporting maritime maintenance operations.

Anchorage and Mooring Provisions:

● Five river mooring points provide anchorage for vessels awaiting berth
availability or conducting short-term operations.

Facilities for Inland and Coastal Vessels:

● One jetty is designated for POL cargo handled by inland coasters.

● A concrete berth is available for grain handling in domestic operations.

● Three pontoon berths accommodate POL cargo for smaller vessels.

● One pontoon berth is assigned for cement handling.

● Fourteen single-point moorings offer flexible berthing options for coastal and
inland traffic.

d. Infrastructure development in CTG Port: With the development of

infrastructure in Chittagong port, it has handled 79.9 million tons of import & export
cargo including 2.7 million TEUs containers in 2017. It has maintained an annual
growth rate of container traffic of about 13-15% since the last 5 years. Besides, CTG
port is also prepared to serve the landlocked areas of neighboring countries Nepal,
Bhutan and India’s north eastern states.

e. Advancement of cargo handling in port:Cargo handling of Chittagong port is

also steadily advancing with double digit growth rate for the last 8-9 years. Last 2017,
the growth rate was 16%.From the overview:2017-l 8 of CTG port we can clearly see
that the cargo handling of Chittagong port is advancing in a systematic way & day by

39
day the growth rate is increasing rapidly which makes Bangladesh economically
developed.

f. Development plan taken by the government & CPA: Bangladesh government

has formulated a few short, mid and long term projects to implement in future which
will prepare us to support vision 2021 and 2041.

⮚ Recently completed projects:

❖ Strategic master plan for Chittagong port

❖ CTG port trade facilitation project

❖ Installation of vessel traffic management information

system(VTMlS)

❖ The acquisition of one high-power tug (4500 BUP)

❖ The purchase's completion of one seagoing water supply vessel,

❖ The acquisition of 51 no’s container & cargo handling equipment.

❖ Installation of surface water treatment plan.

⮚ On-going projects:

● Acquisition of equipment for the new mooring container terminal (NC

1)
● Relocation and reconstruction of the services jetty near the dock
offices to the upstream side of jetty no. 1
● Procurement of one high-power tugboat (3200 BHP)

● Building the Patenga container terminal  Building an overflow yard

at the new mooring colony
⮚ Future projects:

40
 ❖ Construction of Karnafully container terminal (KCT)

❖ Acquisition of a nailing suction hopper dredger

❖ Construction of a floating crane

❖ Procurement of two no's cutter dredger

❖ Procurement of vessels & crafts

g. Statistics of major import & export goods:

a) Import goods: The range of imported goods encompasses essential foodstuffs,
agricultural grains, construction materials such as cement and clinker, refined sugar,
chemical fertilizers, assorted general merchandise, ferrous products, raw cotton,
industrial chemicals, coal, consumable oils, and petroleum-based commodities etc.

b) Export goods: Ready-made garments, knitwear, fertilizer, jute & jute

products, hides & skins, frozen goods etc.

h. Development of shipbuilding & ship breaking industry :The industry of

shipbuilding and ship breaking contributes significantly to industrial development,
employment growth, foreign exchange inflow, and national defence. There is
currently a mandate for 50,000 tons of brass steel in Bangladesh, and 350 rerolling
mills use ship scraps as their raw material.Growth rates have consistently remained in
the double digits; the port posted 10.13% growth in 2017, 8.88% in 2018, and 13.19%
in 2021where it also handled 3.214 million TEUsand116.61 million tonnes of cargo.
(News, 2021). Every year, the government will collect 1000, 00, 00,000 taka in
income after the vessel contravention manufacturing finished import duty, plot tax
and other taxes.

i. Development of Container handling capacity:In Chattogram port, the yearly

growing rate of vessel traffic is about 13 to 15% in the last five years. To meet the
demand for container traffic, the container handling capacity increased rapidly in
recent years and in recent years. Chattogram port has improved its ranking by 27

41
Steps, achieving 71st position in the world's top container ports in Lloyd's list. The
development of the container handling capacity ofChattogram port in the last five
years is figured out below.

Figure 7 :Cargo Container Handled in Ctg

port(Source:CPAhttp://www.cpa.gov.bd/)

j. Vessel handled in seaport: The vessel handling capacity in Chittagong port has
been growing rapidly over the last 5 years to meet the excessive demand. The
development the vessel handled capacity in Chittagong port in last 5 years is figured
out below:

4.3Main Challenges:
Main challenges for the shipping business in Bangladesh are illustrated below

i. Inadequate berthing facilities: with the existing seaport facilities Bangladesh

can provide the jetty facilities to only a few number vessels. In Chattogram
port jetties are designed to berth only 150m vessels but with the growing
demand now CTG port declares that 190m ships can also use their jetty &
Chittagong port only can provide 16/17 mother vessel berth facilities on their
21 jetties. So it is a big challenge for Bangladesh to increase their seaport
berthing facilities.
42
 ii. Low Channel depth: Due to the restrictions of draught & length for
maneuvering in the port area larger & deeper vessels cannot enter into the
port. So increasing the channel depth is one of the vital factors to meet the
demand of our economic growth.
iii. Operational inefficiency in port: Turnaround time, a key metric for
operational efficiency, is a crucial indicator of port development. In order to
satisfy the vessel's current demand, turnaround time must be kept to a
minimum.
iv. Lack of efficient cargo handling equipment: Though we are increasing our
cargo handling equipment, it is not sufficient for loading & discharging of
vessels. Improving the cargo handling equipment is very much needed for
reducing the turnaround time.
v. Transportation system between Dhaka & Chittagong :One of the main
obstacles to effective port management in Bangladesh is the transportation
infrastructure. Inadequate maintenance has been done on the Dhaka-
Chittagong highway and railway before expanding to the rest of the nation.
Exporters who depend on imported goods or capital machinery must pay extra
due to transit delays. Another major obstacle to the growth of Mongla Port is
the area's inadequate transportation system, which includes its hinterland. The
Mongla port and its hinterland are not connected by rail. Although it exists,
communication via waterways is slower than that via roads and railroads.
vi. Digitalization of port: Bangladeshi ports lack modern ICT-based operations.
The implementation of the ICT will reduce corruption & operational
efficiency.
vii. Infrastructure problem in sea port: International mobility of products has
become multiple times higher than ever before. If existing development of
traffic continues in ports, it will be hardly possible to serve the future demand
with present infrastructure. So it is a good time to upgrade the infrastructure
with worldwide demand.
viii. Healthy logistics support: For developing the shipping industry, healthy
logistics support is one of the main factors. With the growing demand we
expect that all our shipping services, stakeholders will work together.

43
 ix. Providing healthy tug: A highly powerful tug arc needed to take the vessel
alongside on the jetty.
x. Long term policy & strategy plan: We don’t have any national strategic plan
to develop the shipping industry. So innovating a good strategic plan for
developing the shipping industry is very much needed to meet the growing
demand.
xi. Deep seaport facility: To construct a deep sea port is the upcoming main
challenge for Bangladesh. The government has targeted to construct their deep
sea port facilities in Payra, Matarbari &Sonadia.
xii. Political stability: Political stability is now one of the concerning issues for
Bangladesh. To reduce corruption & other technical problems political
stability is very much needed.
xiii. Fully utilize the maritime law: The enforcement of the maritime law is not
fully utilized in Bangladesh. Therefore accidents are occurring randomly.
xiv. Insufficient capacity of national merchant fleet: At present,only three ships
are currently owned by Bangladesh Shipping Corporation (BSC), which is
currently in the process of acquiring eight more. Furthermore, there are
currently 54 oceangoing trade vessels possessed by the secluded sector in
Bangladesh. With this small number of vessels, it is therefore very difficult to
satisfy stakeholder demand.
xv. Banking & insurance system:The foundation of the shipping industry is the
banking and insurance sectors, which offer traders both financial support and
protection from possible calamities.
xvi. Trade network: Bangladeshi ports have a very small trading network.
Bangladeshi ports handle a negligible portion of global trade.
xvii. Cross-border policy: Cross-border policy between Bangladesh, India and
China are one of the challenging factors for maintaining the growth of
shipping. The government has to pave a way to maintain the look-east policy
of India &china’s one country one road & Silk Road policy.

44
 Chapter 5

Analysis of Research Findings and Result

5.1 Overview:
This chapter aims to examine the five questions shipping experts answered about the
shipping industry in Bangladesh. The intricate web of global economic changes is
deeply interconnected, with shipping acting as one of the key forces behind this
complex arrangement and interaction that ultimately takes place (Roe, 2004).

All nations, particularly traditional maritime countries, have a natural inclination to

view shipping through their own national lens and to search for potential advantages.
(Brownrigg, 1997). To achieve maximum advantage, we need to develop our shipping
business by whatever methods.

5.2Discussion of Findings:

This chapter discusses the findings derived from data analysis & harmonizes it with
the literature reviewed. For findings the solution authors tried to gather data from
different primary sources & tried to treasure out the opinions of harbor operators,
investors and other shipping personnel working in the shipping services. Moreover, it
will address all the research questions in line of the answers to meet the purposes of
this education.

❖ Constraints to Efficient Port Performance in Bangladesh:

Although ports in Bangladesh are often perceived as autonomous entities, their

operational efficiency is affected by a range of administrative, infrastructural, and
managerial limitations. These constraints are outlined below:
1. Port autonomy: Though it is believed that ports are autonomous organizations, the
authority can’t exercise its power in the area of finance, administration &
development. Even for recruiting the manpower ports need to acquire approval from
the government.

45
2. Lengthy project approval & implementation procedure: It takes on an average
3years to approve a project. During the implementation of the project, every stage of
work (recruitment of manpower, tender evaluation, issue of letter of intent etc)
needs to be approved by the ministry. For this it takes significant time to implement a
project.

3. Human resource development:Humanoidreservegrowth in the strictest sense of

the word does not exist. Seniority is the major prerequisite for advancement.

4. Training: Training is a potent means of production of human resources. In this

field training is not considered as crucial as should be. Most of the time, investing in
training is regarded as unproductive.

5. Long chain of command: A long chain of command system not only hampers the
time it also hampers effective communication. To become a choice on a matter, a file
has to move at least 7/8 desks twice.

6. Poor utilization of working hours: Many working hours are lost due to many
internal & external factors such as political & trade union strikes, many private &
public holidays, bad weather etc.

7. Large gang size of labor: Despite labor saving technology, large gang size of
labor remained as before. Because of this large gang size, labor productivity has
fallen.

8. Draught and length restrictions: Larger and deeper vessels are unable to enter the
port and must wait a considerable amount of time at the outer anchorage where the
cargo is lighter due to the limitations on draught and length for port maneuvering.

9. Inadequate inland distribution facility: In Bangladesh no inland river transport

facilities & no proper highway has been developed to handle the container.

10. Container handling from different areas, a complex operation: To overcome

this, the port authority had to construct a new container yard at a different
location where space is available.

46
11. Storage capacity: The storage capacity of containers has increased but still it is
insufficient for the rapid growing numbers of containers.

12. Truck management: The turnaround time of the truck for loading & unloading is
around 5-6 hours. So picking up a cargo there is always a competition between the
drivers which creates congestion.

13. Inadequate power supply: Because of the inadequate power supply sometimes
port operations are stopped for a while.

❖ Obstacles to the Growth of Inland and International Seaports :

The growth of inland and international seaports in Bangladesh is vital for trade
expansion, yet progress is hindered by a combination of physical, managerial, and
policy-related barriers:

i. Unavailability of government land property & unaware of settlement

procedure.

ii. An ineffective center of attention for the maritime sector.

iii. Not to identify efficient future cargo growth.

iv. Incoming and outgoing traffic at the port uses small channels and insufficient
draft.

v. A lack of cargo handling equipment and infrastructure facilities. Lack of a

modern automated facility for handling containers and for damaged bulk
ships.

vi. Recognizing labor unrest and addressing its root causes through wage
payments and modern equipment handling skills.

vii. The economy's ongoing weakness.

viii. Government policies, rules, and the Port Authority's autonomy limitations
Seaport and inland port development is hampered by political unrest,
divergent political views, and politically biased, unethical trade unions.

47
 ix. Port Regulatory activities across different government agencies, autonomous
organizations, and connected stakeholders; the automation of port operations;
the lack of experts and qualified labor in port management; and the
unfavorable attitude and advantage-seeking mindset of port consumers.

x. Activities of sea pirates in outer anchorages and port security issues.

xi. Multi step facility distribution method from the port.

xii. Trade union situation in Bangladesh.

xiii. Corruption in the customs department and inadequate port management.

xiv. Reaction and service delays.

xv. Ineffective risk management.

xvi. Limited embarkation points, berth and container yards& lack of infrastructure.

xvii. Long delay for loading and unloading.

xviii. Shortage of funds for improving infrastructure at port.

xix. Insufficient expertise to demonstrate Bangladesh's negotiating power.

xx. Knowledge of the benefits of privatizing ports.

❖ Challenges in Bangladesh’s Shipbuilding and Ship breaking Industry

Bangladesh has strong potential in shipbuilding and ship breaking due to its large
workforce and strategic coastal location. However, several challenges hold back
growth and competitiveness in these sectors:

1. A lack of funding.
2. Expensive financing.
3. Technological backwardness.
4. Insufficient power source.
5. Ineffective diplomacy.
6. Insufficient pool of managers to expand shipbuilding and shipbreaking
enterprises.
7. A lack of fundamental design skills.
48
 8. .A longer lead time for material mobilization.
9. Many traders lack broad skill development.
10. The absence of a policy organization to direct government shipbuilding.
11. Assistance and subsidies in different nations that build and break ship No
12. long term policy & strategy plan for developing the shipbuilding &
ship breaking yards.
13. .Not following international conventions like MLC, MARPOL etc.
14. Absence of MFN (most favored nation) policy.
15. .Lack of skillful& well-known personnel.

❖ Meeting the Increasing Request for Nautical Access

General, local, and global trade growth has significantly increased the demand for
maritime access. Addressing this requires coordinated policy, infrastructure, and
operational reforms, including:

1. Selecting a workable plan for the deep seaport's strategic location. In order to
meet the growing demand, deep sea port infrastructure will be developed and
begin serving this region. creation of a free business area.

2. Aiming for viable valuing and top-notch port facilities.

3. Aiming for modest valuing and top-notch port facilities.

4. Planning the current neighborhood's growth to foster trust in the area.

5. To increase the speed of cargo handling, an automated container handling

system was introduced.

6. A feasibility study of modernizing and expanding the port using equipment

and human resources.

7. Professional and skilled labor participation in port operations activities,

independent of political enforcement.

8. Present inlet journey container ships with smaller drafts and fewer containers
all the way to Dhaka's river port.

9. An expansion of land ports and inland river ports.

49
 10. A long-term plan and policy for port facilities and operations.

11. Building new inland container depots in different regions and establishing
inland container handling riverine ports while improving the current
infrastructure of riverine ports in different districts.

12. Multimodal facilities ensure satisfactory service performance and upgrade

them.

13. Professional and skilled labor participation in port operations activities,

independent of political enforcement.

14. Chittagong Port's expansion and the use of its empty space.

15. . The port's trade union and political issues must be addressed.

16. Creating a long-term plan for port management.

17. Allow the port to meet the needs of the port user. Verify the authorized costing
plan.

18. Make sure that the port and outer channel are highly secure, and make use of
the maritime law.

19. Keep the channel depth within the allotted time.

❖ Key Development Factors for a Successful Shipping Industry

For Bangladesh’s shipping industry to succeed, strategic development is required in

infrastructure, governance, and operational management:

a) Establishing transshipment locations in a suitable geographic area.

b) Infrastructure development that guarantees affordable prices, easy access, and

well-constructed embarkation facilities.

c) Establish a welcoming environment for business that is accessible and

flexible.

d) Organizing, managing, and carrying out the arrival and departure of vessels.

50
 e) Proper management and maintenance staff, along with adequate space and
functional equipment. a capable management system and a strong
management authority that will exercise its own shortcomings. Bay of Bengal
and its vast Exclusive Economic Zone (EEZ) provide important opportunities
to use maritime transport as a means of promoting sustainable economic
growth.

f) A decrease in systemic corruption. For port operations, particularly shipments,

to run smoothly, all administrations should be free from corruption.

g) Utilizing suitable IT-based documents and training importers and exporters on

the use of IT. Thanks to skilled professionals and advanced technology,
quality service regarding timely performance and speed, safety, and a robust
security system has been achieved.

h) Pre-shipment inspection system and modern cargo inspection, monitoring, and

control with respect to quantity and quality.

i) Unclaimed and un cleared cargo is disposed of at port after a short waiting

period.

j) The nation's political stability.

k) Fast cargo service and removal from the yard and vessel. Particular attention is
paid to the turnaround time and port stay of vessels. Construction of a deep sea
port on an early basis.

l) Early growth of a deep-sea port.

Chapter 6

Conclusion & Recommendations

6.1 Conclusion:

In Bangladesh, maritime shipping is crucial for the economy, managing almost 90%
of international trade and directly supporting vital export industries like ready-made
garments, knitwear, and frozen foods. This research validates that shipping plays a
51
dual role: it facilitates trade and acts as a strategic driver for GDP growth, job
creation, and foreign exchange earnings. Bangladesh's strategic position along the
Bay of Bengal and its vast Exclusive Economic Zone (EEZ) provide important
opportunities to use maritime transport as a means of promoting sustainable economic
growth.

The study emphasizes that the shipping industry does much more than just move
cargo. By ensuring efficient port operations, we can lower trade costs, enhance
competitiveness, and draw investment; the blue economy provides pathways for
diversification through coastal shipping, shipbuilding, fisheries, marine tourism, and
renewable ocean energy. By updating these sectors, we can unlock significant
economic value, generate employment, and aid national development objectives,
including SDG 14 (“Life Below Water”). However, these opportunities remain
underutilized due to persistent structural challenges. Chronic congestion at
Chattogram Port, insufficient deep-sea facilities, reliance on an aging merchant fleet,
and fragmented governance have limited sectoral efficiency. Additionally, gaps in
maritime policy, inadequate technological adoption, and limited skilled manpower
hinder the sector’s ability to meet future demand. Without targeted reforms,
Bangladesh risks losing competitive advantage to regional ports that are rapidly
modernizing.

The findings indicate that strategic policy interventions are essential. First,
infrastructure expansion, particularly the completion of Matarbari Deep Sea Port and
upgrades to Mongla and Payra ports will be critical for handling projected cargo
growth. Second, regulatory reform and the establishment of a unified national
maritime authority could streamline decision-making, improve coordination among
stakeholders, and ensure consistent policy implementation. Third, investment in
maritime education and training should be prioritized to produce skilled seafarers,
port managers, and logistics experts, strengthening the human capital base of the
industry. Equally important is the adoption of sustainable practices. Integrating
environmental safeguards into shipping operations, investing in cleaner vessel
technologies, and enhancing marine resource management will help balance economic
gains with ecological preservation. This aligns with global trends toward greener

52
maritime transport and reinforces Bangladesh’s commitment to sustainable
development.

In conclusion, the maritime shipping sector is both a cornerstone of Bangladesh’s

present economy and a key to its future prosperity. By addressing infrastructure
deficits, modernizing fleets, reforming governance, and investing in human capital,
Bangladesh can transform its maritime sector into a globally competitive hub. The
synergy between shipping and the blue economy offers a pathway not only to
increased trade and revenue but also to inclusive and environmentally responsible
growth. With vision, investment, and coordinated action, maritime shipping can serve
as the engine driving Bangladesh toward its long-term economic and developmental
aspirations.

6.2 Recommendation:
Centered on the investigation conducted for showcasing the economic growth of
Bangladesh for strengthening sea trade infrastructure in Bangladesh, the following
strategic actions are recommended to enhance Bangladesh’s maritime trade capacity
and economic growth:

1. Formulate National and Foreign Port Policies – Establish a National Port

Policy for domestic development and a Foreign Port/Transit Policy for
regional use of Bangladeshi ports.
2. Develop a National Port Master Plan – Commission an independent
international study including tariff review, infrastructure expansion, and
adoption of the ‘landlord’ port model.
3. Modernize Port Governance – Restructure the port board and management
to ensure clear accountability, autonomy in decision-making, and focus on
navigational safety, health, security, and environmental standards.
4. Upgrade Port Infrastructure – Ensure adequate berths, storage, handling
equipment, and dredging capacity to accommodate larger vessels.
5. Enhance Hinterland Connectivity – Develop integrated rail, road, and inland
waterways to ensure seamless cargo movement, prioritizing rail for bulk and
heavy loads.

53
6. Digitize and Simplify Port Operations – Implement a fully computerized
customs and documentation system to reduce cargo dwell time.
7. Improve Customs Efficiency – Review regulations, streamline clearance
processes, and reform auction house procedures.
8. Promote Private Sector Participation – Allow private investment in cargo
handling facilities under performance-based contracts, with the port authority
focusing on regulation and supervision.
9. Strengthen Port Security – Fully implement the ISPS Code and upgrade
surveillance, access control, and emergency response systems.
10. Establish Inland Container Depots (ICDs) – Build strategically located
ICDs with adequate ground strength, storage capacity, and modern handling
equipment.
11. Enhance Human Capital – Introduce merit-based promotions, modern
training programmes, and employee incentives such as performance bonuses
and allowances.
12. Legislate Labour and Productivity Reforms – Adjust gang sizes, reduce
excessive holidays, and align labour deployment with operational needs.
13. Ensure Political Stability in Maritime Affairs – Prevent political
interference in port operations and safeguard supply chain continuity.
14. Stimulate Regional Trade Hubs – Authorize off-dock facilities in major
cities to encourage decentralization and industrial growth.
15. Support Shipbuilding and Ship Recycling – Address land scarcity, power
deficits, and infrastructure gaps to develop these sectors.
16. Enhance Stakeholder Coordination – Hold regular government–industry
meetings involving port authorities, transport agencies, shipping lines, and
stevedoring companies to identify and resolve bottlenecks.
17. Grant Port Authority Autonomy – Allow independence in procurement,
tariff setting, labor negotiations, and operational planning to operate as profit
centers.

54
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 Appendices

Appendix 1: Map of Bangladesh (Wikimedia)

59
Appendix 2: Karnaphully river and Sea Anchorage(Ali et al.,
2020)

60