Ocean Economy

EMERGING CHALLENGES AT SEA AND ITS IMPACT ON
OCEAN ECONOMY: BANGLADESH PERSPECTIVE

INTRODUCTION
• Oceans have always played a pivotal role in the economic &
social fabric of nations
• Export value in ocean-
based industries at $2.5
trillion, according to
available data covering
2018 (UNCTAD, 2021).
• in 2020, Oceans provided
food, jobs & income for
almost 3 billion people.
Ocean-based estimated
trades & services were
worth at least $2.5
trillion/ year – about 3% of
global GDP (UNCTAD 2022). Biggest ocean-based industries in 2018
(UNCTADStat & World Travel & Tourism Council) 2
INTRODUCTION
• About 90% of global trades transportation i.e., goods are
transported by sea routes.
• The global coastal and maritime tourism market size was
estimated at USD 2.9 trillion in 2021 and is expected to
expand at a CAGR of 5.7% from 2022 to 2030.
• Fisheries and aquaculture support the livelihoods—directly or
indirectly—of around 10 percent of the world’s population.
• Out of 178 million tonnes of global aquatic animal
production in 2020, 63% was harvested in marine waters.
The estimated value of the total first sale of this global
production was $406 billion, making its marine portion worth
$255 billion. Of total algae production of 36 million tonnes
(wet), 97% was mostly from marine aquaculture.
3
INTRODUCTION
• For Bangladesh, a country with an extensive coastline along the Bay of
Bengal, the ocean economy holds immense potential for sustainable growth
and development.
• The country is a home to a thriving ocean economy encompassing various
sectors, including fisheries, shipping, aquaculture, tourism, and offshore
resources such as oil and gas, that can significantly contribute to the nation's
GDP and provide employment to millions.
• But economic activity in the ocean is also characterised by a complex variety
of risks and challenges overshadows the promise of ocean/ blue economy.
Foremost among them are those related to ocean health caused by over-
exploitation of resources, marine pollution, rising sea temperatures and
levels, loss of biodiversity, etc. Realising the full potential of the ocean
economy, therefore, will demand responsible, sustainable approaches to its
economic development.
4
AIM
To examine the emerging challenges faced by Bangladesh's ocean
economy, assess their impacts, and propose viable solutions 5
SEQUENCE
√ Understanding Ocean Economy
√ Global Ocean Economy Activities &

Challenges
√ Overview of Ocean/ Blue Economy in
Bangladesh
√ Ocean Economy Activities in Bangladesh
and Challenges
√ Global Trends & Uncertainties Influencing
Ocean Economy
√ Conclusion & Recommendations
6
UNDERSTANDING
OCEAN ECONOMY
7
Understanding Ocean Economy
• The term “ocean economy” characterizes the wide range of activities related to the
exploitation of maritime resources (such as food and energy) or using the ocean for
transportation and commercial purposes.
• The ocean economy encompasses ocean-based industries (such as shipping, fishing,
offshore wind, marine biotechnology), but also the natural assets and ecosystem
services that the ocean provides (fish, shipping lanes, CO2 absorption and the like).
• In Bangladesh, the ocean economy consists of the some broad and growing economic
sectors: living resources, minerals, energy, transport and trade, tourism and
recreation, carbon sequestration, and coastal protection.
• Ocean Economy collectively applies not only to ocean-based industry activities,
but also to the assets, goods, and services of marine ecosystems.
• The industries and ecosystem services do not develop in isolation, but rather interact
as a system.
8
• The new “ocean economy” is driven by a combination of population growth, rising incomes,
dwindling natural resources, responses to climate change and pioneering technologies.
• While traditional maritime industries continue to innovate at a brisk rate, it is the emerging
ocean industries that are attracting most of the attention, which include offshore renewable
energy; oil & gas exploitation in deep water & harsh environments; offshore aquaculture;
seabed mining; cruise tourism; maritime surveillance & marine biotechnology.
• Unsustainable use of the ocean and its resources threatens the very basis of welfare and
prosperity. The term “blue economy” thus emerged, mostly used when the sustainable use of
the oceans is emphasized. Realizing the full potential of the ocean economy demand
responsible, sustainable approaches to its economic development.
• Ocean economy includes three types of oceanic regions: Coastal Areas, extensively being
used for their adjacency and ease of access. EEZ, being exploited for energy and mineral
resources, as well as fishing. The High Seas are primarily used for navigation. The extraction
of resources on the High Seas is subject to international regulations, managed by the UN.
9
10
ACTIVITIES OF
OCEAN ECONOMY
AND CHALLENGES
11
Ocean Economy Activities and Challenges
12
Harvesting of Living Resources
• The most conventional use concerns fisheries, accounting for about 17% of the
world’s protein intake.
• In 2020, Capture Fisheries contributed 51% (90 million tonnes) and aquaculture 49%
(88 million tonnes).
• Of the total production, 63% (112 million tonnes) was harvested in marine waters
(70% from capture fisheries and 30% from aquaculture).
• A growing share of seafood comes from aquaculture since conventional fish sources
are challenged by overfishing, & rising demand of protein.
• With scientific advances, marine biotechnology enables a more extensive usage of
aquatic resources for the pharmaceutical and chemical industries.
13
e e m ph a sis to be
Mor
Marine
given on
ure/
Aquacult
re
Maricultu
Global Fish Production in 2020 (Source: FAO) 14

Regional Contribution To
World Capture Fisheries
& Aquaculture Production
(Source: FAO)
g i e s n e e d e d to
t ra t e
Effective s c o m p e t i t i on
t h e Legends
persist in l e e x p l oiting
aw h i
within Asi p p o rt unities
n g o
emergi
15
Extraction of Non-living Resources
• The use of the oceans to extract energy and mineral resources is relatively recent.
• Seabed mining, an emerging technology, enables the extraction of minerals from
nodules. The mineral rights are only available within an EEZ. The International
Seabed Authority manages mineral rights for the high seas, but no significant
commercial ventures have so far been realized.
• Oil and gas are extracted from offshore platforms, mostly on the continental shelf
within EEZs.
• The use of the oceans as a source of renewable energy is also beginning, particularly
in terms of offshore wind farms and tidal energy use.
• In many areas, the scarcity of freshwater supply has incited the construction of
desalination plants, which account for a growing share of the world’s freshwater
production.
16
Volume of minerals
required for selected
More effor energy technologies
ts for
prospectin
g highly worldwide as of 2020
demanding (Source: Statista)
minerals a
re
needed
17
Distribution of onshore
and offshore crude oil
production worldwide
(Source: Statista)
Roughly
constant
distributio
n
18
Offshore Oil and Gas Production by

Scenario
(Source: Offshore Energy Outlook, IEA, 2018)
Efficient u
se of oil &
Oil gas, while
preparing
future SDS fo r
Gas
NPC- New Policy Scenario
SDS- Sustainable Dev Scenario
19
Offshore Wind & Marine Power

Generation by Scenario
(Source: Offshore Energy Outlook, IEA, 2018)
Feasible st
udies on
suitable of
fshore
renewable
energy &
Wind preparedne
ss for SDS
Marine
NPC- New Policy Scenario
SDS- Sustainable Dev Scenario
20
Maritime Trade and Commerce
Trade and maritime shipping have been experiencing substantial growth including
expansion of port facilities.
Seaborne Trade Growth in Percentage Annual Change, Container shipping costs have returned to pre-COVID-19
2000-2024 (Source: UNCTAD) levels (Source: UNCTAD) 21
Scopes to expand ship

building
BD ratified UN ship
recycling accord
Careful transition to be
planned
22
• However, the maritime sector stands at a pivotal moment, facing the daunting
challenge of decarbonization while navigating economic and geopolitical headwinds.
• World fleet is ageing. As of early 2023, the average ship’s age was 22.2 years. With
over half now older than 15 years, many ships are either too old to retrofit or too
young to scrap.
• IMO adopted the 2023 IMO Strategy on Reduction of GHG Emissions from Ships
(MEPC 80). The strategy envisages, (i) to reach net-zero GHG emissions from
shipping by around 2050, with interim checkpoints of 20-30 percent by 2030 and 70-
80 percent by 2040; (ii) to make zero/ near-zero GHG energy, fuels, and technologies
5-10 percent of shipping’s energy mix by 2030; and (iii) to develop a marine GHG
fuel standard and a maritime GHG emissions pricing mechanism, by 2027.
23
24
• The heavy financial burden of moving the shipping sector towards cleaner energy
could disproportionately impact the most vulnerable nations. Estimates show that
decarbonizing the world’s fleet by 2050 could require $8 billion to $28 billion
annually. The infrastructure for 100% carbon-neutral fuels could need an even heftier
$28 billion to $90 billion each year. If achieved, full decarbonization could double
yearly fuel costs.
• These vulnerable nations on the front lines of climate change are heavily reliant on
maritime transport for trade and economic growth. They could face significant
economic setbacks from the increased costs. financial and technical support is
essential to ensure the maritime sector’s energy transition is just and equitable.
• In a turbulent global landscape marked by geopolitical events like the war in
Ukraine, the maritime industry showed remarkable resilience, adapting to new,
lengthier trade routes. Maritime trade volumes dipped 0.4% in 2022 but are on track
for a 2.4% rebound in 2023 and above 2% growth through 2028.
25
Forecast 2024
The war in Ukraine has
Estimated 2023 increased shipping distances
Average Distance Travelled in NM from 1999-2024 (Source: UNCTAD)

26
Coastal and Marine Tourism
• A total of 183 countries have coastlines and marine environments, with associated
domestic and international tourism. In 2017, approximately 50% of all international
tourists travelled to coastal areas.
• Before the global pandemic, tourism was one of the fastest growing sectors.
• The World Travel and Tourism Council (WTTC) estimated that in 2019 the total
economic contribution of global travel and tourism (including its direct, indirect and
induced impacts) was US$9.2 trillion, or 10.4 percent of global GDP, and accounted
for approximately 330 million, or 1 in 10, jobs worldwide.
• The Organisation for Economic Co-operation and Development (OECD) estimated
the ocean economy value added in 2010 at 2.5 percent of global GDP (equal to $1.3
trillion) and over 30 million direct and full-time jobs. Before the pandemic, the
expectation was that the ocean-based economic output would double by 2030,
reaching $3 trillion.
27
• The global pandemic brought tourism to a standstill, highlighting the economic
dependency of many coastal states, and making the flaws of the traditional model for
coastal and marine tourism visible.
• As a result of global travel bans and health and safety restrictions, the global tourism
industry has suffered losses of nearly $4.5 trillion, with an estimated 62 million jobs
being lost. The Pacific suffered an 84 percent drop in tourist arrivals in 2020
compared to 2019, making it the worst-affected region in the world. The cruise
industry lost 99.5 percent of its revenue.
• The coastal and marine tourism sector is highly dependent on the health of the local
marine environment. Coastal areas include some of the most biodiverse and fragile
ecosystems on Earth, such as mangroves and coral reefs. These areas, and therefore
the tourism sector itself, are highly vulnerable to climate change, pollution and
hazardous waste spills, nutrient and sediment inputs, transfer of exotic species and
algae blooms.
28
• Coastal and marine tourism relies on environmentally fragile systems that are
disproportionately vulnerable to a changing climate. Coastal and marine tourism
relies on infrastructure located on or near the coastline, where it is exposed to storm
surges from cyclones, flooding driven by sea level rise, and coastal erosion.
• A major concern pertaining to the economic impacts of tourism is leakage, which
refers to the tourist revenues that leave the destination either due to foreign
ownership or to pay for products or services outside of the destination, reducing the
benefits to local economies.
• The additional use and demand on local resources can contribute to food insecurity,
community displacement, dilution of culture and the degradation of cultural sites.
• However, the vulnerability of the coastal and marine tourism sector also provides the
opportunity for change now. The challenge is to recover while advancing
sustainability rather than returning to the traditional approach that allowed for
uncontrolled growth with little consideration of the impacts on local communities
and ecosystems. 29
• As the world begins to recover and reopen, destinations will have the opportunity to
use this moment to invest in a more sustainable model of coastal and marine tourism
that focuses on regeneration and resilience.
• The Ocean Panel’s 2030 Goal articulates the need for coastal and marine tourism to
be sustainable, resilient, address climate change, reduce pollution, support
ecosystem regeneration and biodiversity conservation and invest in local jobs and
communities.
• Sustainable tourism is defined as ‘tourism that takes full account of its current and
future economic, social and environmental impacts, addressing the needs of
visitors, the industry, the environment and host communities’.
30
OVERVIEW OF
OCEAN/ BLUE
ECONOMY IN
BANGLADESH
31
Overview of Ocean/ Blue Economy in Bangladesh
• Between 2012 & 2014, disputes over
INDIA
maritime boundary with Myanmar and
India were settled for Bangladesh,
resulting in the expansion of its territorial
waters of more than 30% with 118,813
km2 of sea area.
• A wide range of new economic
opportunities opened for jobs & growth
around marine fisheries, marine
aquaculture, tourism, exploitation of
natural resources, trade and energy.
• Yet for long-term development of the
country, marine resources must be
managed in a sustainable way.
32
• The objective of the blue economy initiative is to promote smart, sustainable and
inclusive growth and employment opportunities in Bangladesh's maritime economic
activities in the short, medium and long-term time frames.
• The Blue economy initiative specifically aims to promote synergies and foster
framework conditions that support specific maritime economic activities and their value
chains.
• To realize the necessary international cooperation and support to elevate the Blue
Economy to the international sustainable development agenda 17, Bangladesh amongst
the coastal countries has targeted the process.
• Bangladesh’s 7th five-year plan (2016-20) identified twelve initiatives, such as fisheries,
renewable energy, human resources, transportation, tourism, and climate change, to
maintain a robust and sustainable blue economy.
33
• Additionally, the "Blue Economy Cell" was established by the Ministry of Foreign
Affairs (MoFA) in 2017 to coordinate Blue Economy projects among sectoral ministries.
• The MoFA has identified 26 potential sectors, including fisheries, maritime trade and
shipping, energy, tourism, coastal protection, maritime safety, and surveillance, for the
expansion of Bangladesh's blue economy.
• According to a World Bank report, the gross value added to Bangladesh in 2014-15 from
ocean economy was US$ 6,192.98 million which was around 3.33 per cent of the
Bangladesh economy Again, ecosystem services from the coastal and marine ecosystem
creates livelihoods and income of millions of people living in the coastal region of
Bangladesh (Islam and Shamsuddoha,2018).
• Considering the importance of Blue Economy, the government of Bangladesh has
recently emphasized on enhancing Blue Growth and achieving sustainable development
goals (SDGs)
34
OCEAN ECONOMY
ACTIVITIES AND
CHALLENGES IN
BANGLADESH
35
Ocean Economy Activities in Bangladesh & Challenges
• Bangladesh is actively pursuing different maritime policies to strike the right
balance between economic growth and environmental conservation.
• The government's "Vision 2041" strategic plans emphasize the development of the
maritime sector, promoting sustainable shipping practices, coastal zone
management, and marine biodiversity conservation.
• Efforts are underway to enhance maritime infrastructure, including port facilities,
to accommodate larger vessels and promote regional connectivity.
• Bangladesh's realization of its maritime identity is reflected in its commitment to
harnessing the potential of maritime resources according to UN SDG Goal 14
while addressing the environmental challenges that accompany such development.
• Bangladesh is poised to unlock new economic opportunities, enhance regional
connectivity, and contribute to sustainable development to ensure a prosperous and
resilient future as a vibrant maritime nation.
36
Maritime Component of Vision 2041
• Develop a sound policy framework for harnessing the potential of the blue economy.
• Establishing a Monitoring, Surveillance & Control regime for the artisanal fishing
fleets.
• Institutional coordination between the Dept. of Fisheries & the Mercantile Marine Dept.
• Some high-priority time-bound activities like starting the restoration process for marine
& coastal ecosystems, i.e. Chakaria Sundarban & establishing sustainable management
by 2020; achieving a science-based management plan for sustainable marine fisheries
through assessment of marine fish stock & determining Maximum Sustainable Yield by
intensive field investigation by 2020; and by 2025, emphasis will be placed on tapping
the potential from sea-weeds that plays a major role in marine ecosystems and has
multipurpose uses such as human food, medicine, manure & fertilizer and industrial
materials. 37
Sl BANGLADESH’S KEY MARITIME POLICIES

1. Bangladesh Marcent Shipping Ordinance, 1983
2. Bangladesh Ship Recycling Act, 2018
3. Bangladesh Delta Plan 2100, 2018
4. Bangladesh Maritime Zones Act, 2019
5. Bangladesh Marcent Shipping Act, 2020
6. Marine Fisheries Act, 2020
7. Bangladesh Indo-Pacific Outlook 2023
38
Ocean Economy Activities in Bangladesh
Extraction of
non-living
resources M
of s a
g rce & rit i
n
ti ou Co me
s
e es m Tr
v m a
ar g R er de
H in ce
v
Li Ocean
Economy
Activities in
Bangladesh
39
Harvesting of Living Resources - Fisheries
• Out of 1,18,813 sq. km of marine water, marine fishing ground covers 14600 sq.
km & 7,367 sq km of Marine Protected Area.
Area Distribution of Marine Waters

Marine Protected Areas in Sq. KM
14
60
0; 7367;
12 6% Marine Water
% Areas
Marine Fishing
Ground
96846; Marine Protected
82% Areas
40
• Coastal and marine waters are home to a wide variety of fish species, making it one of
the largest fish-producing nations in the world.
• Bangladesh ranked 3rd in inland open water capture production, 5th in world
aquaculture production, 4th in Tilapia production, and 1st in Hilsha production.
• A total of 12% of the total population lives on fishery-related direct and indirect
activities.
Hilsha
Aquaculture
Tilapia
41
• About 60% of animal protein consumption comes from fish. The fisheries sector accounts
for 3.50% of the national GDP & almost one-fourth (25.72%) of the agricultural GDP.
• Total fish production: 4.759 million MT/Yr Volume in Million MT
• Inland capture production: 1.301 million MT/Yr Shrimp/ Prawn Production 0.261
• Inland culture production: 2.639 million MT/Yr Hilsha Production 0.567
Marine Capture Production 0.706

• Marine capture production: 0.706 million MT/Yr
Inland Culture Production 2.639
• Hilsha production: 0.567 million MT/Yr
Inland Capture Production 1.301
• Shrimp/prawn production: 0.261 million MT/Yr 0 0.5 1 1.5 2 2.5 3
42
• Bangladesh earned $422.28 million from frozen and live fish exports in FY23 against
$532.94 million in FY22. On the other hand, export earnings from frozen shrimp, which
is the key item of the sector, were $300.26 million in FY23 and $407.25 million in
FY22.
• Currently shrimp farming is mostly done in the traditional way, so production is only
300-400 kg per hectare, which is the lowest in the world. If shrimp farming is done
scientifically, the production will be 3-4 tonnes per hectare, which has not been possible
to expand so far. The machinery required to produce such products needs a lot of
investment.
• Unlike leading exporters China and Vietnam, Bangladesh is still unable to produce
higher value-added frozen shrimp products, which are in great demand abroad.
• If higher value-added products could be exported, it was possible to earn five times
more from this sector than now. 43
• Some 70% of frozen fish units make products through an individual quick-freezing
process while 30% prepare value-added or ready-to-cook items. But now the demand
for ready-to-eat fish is increasing among buyers.
• The inland fishery stocks of Bangladesh are already fully exploited. In contrast, the
marine fisheries sector is underdeveloped.
• Only 15.05% of the country's fish production is derived from marine fisheries, despite
having huge potential.
• A total of 8 million tons of fish can be caught in the Bay of Bengal each year, however,
Bangladesh only catches 90,000 tons.
• A lack of deep-sea fishing capabilities is a major factor in underproduction.
44
• Almost all the country's sea-going fishers use
traditional equipment.
Artisanal Fishing
• Limited fishing capability beyond 50m depth, &
the trawlers primarily operate within 100m 40 m
depth at a maximum distance of 90 nm from T

100 rawl
ing 80m
the coast. m
Gr
ou
2 00m nd
• Lack of technological & infrastructural capacity 1 000m
to optimize its maritime resources. Inactive Fishing Zone
• The marine fisheries sector is underexploited as

opposed to inland fisheries.
• Extracting long-term sustainable economic
incentives requires massive domestic and
foreign investments in Bangladesh’s blue
economy and maritime sectors. 45
Harvesting of Living Resources - Seaweed
• According to the ‘Global Seaweed New and Emerging Markets Report 2023’ of
World Bank Group, the most promising short-term markets for seaweed (beyond
conventional market applications) are biostimulants, animal feed, pet foods, and
methane-reducing additives, while Nutritional supplements, known as
nutraceuticals, alternative proteins, bioplastics, and fabrics offer medium-term
opportunities and in long-term opportunities are offered by pharmaceuticals and
construction.
• The report concluded that the seaweed sector
has clear growth potential beyond its current
markets and can help shape a world free of
poverty on a livable planet.
• Enhanced seaweed production and improved
value chains can contribute to meeting at least
nine of the 17 U.N. SDGs.
46
• Fishers in Bangladesh are becoming increasingly interested in seaweeds farming by
using local materials in a simple and low-cost manner. It does not need to be fed any
artificial food or fertilization. Since it grows rapidly, the cultivated seaweeds can be
harvested for sale in 2-3 weeks.
• Around 200 species of seaweeds can be found
along the coasts of the Bay of Bengal in
Bangladesh. Ten of these have been identified as
commercially important. Grow in the coastal
areas of Cox's Bazar: the edible green genus
Caulerpa, Ulva, Enteromorpha, the red genus
Hypnea, Gracilaria, Gelidium, and the brown
genus Sargassum. The ideal season for seaweeds
farming in Bangladesh's marine waters is from
mid-October to mid-April.
47
• The USAID funded ECOFISH II activity of WorldFish Bangladesh, in collaboration
with Chattogram Veterinary and Animal Sciences University (CVASU) and Falcon
International Limited.
• ECOFISH II has provided training and necessary farming materials to the
beneficiaries of Cox's Bazar Sadar, Ukhiya, Teknaf, Moheshkhali, and Ramu
Upazilas. The red seaweed (Gracilaria) and green seaweed (Enteromorpha and Ulva)
have been considered for seaweeds farming.
• In 2021, the project provided training in seaweeds farming techniques, harvesting,
processing, and marketing. At the end of December, 9,350 kg (wet weight) of
seaweeds were harvested.
• The global market value of seaweeds could exceed $85 billion by 2026. Although
around 80% of the seaweeds is produced globally in Asia, Bangladesh annually
produces just over 600 tons of natural and aquaculture sources at present.
48
Global Seaweed Production 1990-2020 in Tons Wet Weight (Source: FAO, 2022)
49
• Research conducted by Chattogram University & Food & Agriculture Organization
(FAO) estimated the annual seaweeds utilization in the human food, feed, manure,
cosmetics, and pharmaceutical industries in Bangladesh at 47,775 kg, 11,700 kg,
13,650 kg, and 24,375 kg, respectively.
• The research said that these could potentially contribute Tk 55.87 million to the blue
economy of Bangladesh soon.
• There is a need to popularize seaweeds food, consider seaweeds as a potential
economic crop in the blue economy initiative, including its widespread use in the
pharmaceutical, food, animal feed, and fertilizer industries, and increase its exports
to overseas markets. For instance, currently, Bangladeshi pharmaceuticals
companies import agar-agar from other countries, which costs them a fortune, while
it can be produced locally from seaweed.
• Investors needs to be made aware of the high business potentials of seaweed
production.
50
Harvesting of Living Resources – Marine Biotechnology
• Marine biotechnology is a field that explores the vast oceans to discover and
develop innovative pharmaceutical drugs, chemical products, enzymes, and
industrial processes. It plays a crucial role in advancing biomaterials, healthcare
diagnostics, fisheries and aquaculture, seafood safety, bioremediation, and
tackling biofouling issues.
• In Bangladesh, the potential for marine biotechnology applications is
exceptionally promising compared to other countries.
• The abundant living resources, particularly marine organisms, offer a rich source
of new materials and products, especially for the healthcare sector (such as
antibiotics, anti-cancer agents, bioactive compounds, and pharmaceutical drugs)
and nutritionally balanced food (including marine fish, shrimps, crabs, mollusks,
seaweed, etc.).
51
Harvesting of Living Resources – Marine Biotechnology
The global marine

biotechnology market
size was reached at
USD 5.9 billion in
2022 and it is
projected to hit
around USD 11.7
billion by 2032 and
anticipated to
increase at a CAGR of
7.09% during the
forecast period from
2023 to 2032.
52
Extraction of Non-Living Resources – Oil and Gas
• Within the maritime domain of Bangladesh, there can be several rich oil and gas
reserves as India and Myanmar sites, which must be explored and exploited.
• If the country continues to extract natural gas from its functional gas fields at the
current rate, the resources will run out by 2041.
• Bangladesh is yet to assess the complete potential of its offshore oil and gas
prospects. Some 26 Tcf gas reserve has to this point been found in Bangladesh, of
which only about 1 Tcf is found within the offshore areas (MoFA, 2020).
• India and Myanmar have both extensively explored blocks adjacent to Bangladesh.
• The country has 26 offshore PSC blocks, out of which two (blocks 4 & 9) have
been awarded for exploration to ONGC Videsh & Oil India Ltd.
53
Extraction of Oil and Gas
• Gas hydrates, require advanced technology that
Bangladesh lacks & could require at least 10-15
more years to extract.
• Bangladesh Petroleum Exploration &
Production Company Limited (BAPEX) is the
only approved company in Bangladesh to
conduct oil and gas exploration &
exploitation. However, a comprehensive plan
is critical to conduct multicline survey in the
Bay to spot potential oil and gas fields, and
their reserves.
• Public-Private Partnerships are to be
encouraged and allowed to share data and data,
monitoring, and best practices, moreover as
monitoring and assessment protocols and 54
Extraction of Non-Living Resources – Metals and Minerals
• There is also much discussion around future demand – and possible shortages – of
metals and minerals that are critical to modern economies, and especially to key
high-technology products such as ICT hardware, electric vehicles and renewable
energy facilities.
• Key technologies affected include, amongst others, nuclear energy, solar energy,
wind energy, carbon capture storage & electricity grids. It is estimated that
thousands of underwater sulphide systems exist, and that even if only half of them
are geographically viable, annual seafloor production would represent several
billion tons of copper alone.
• Deposits of rare earth elements are also to be found under or on the seabed, as are
methane hydrate deposits. The exploitation and mining of minerals, apart from
sand and gravel, from the ocean has just started.
55
• According to the EU Commission (2012), 5% of the world's minerals, including
cobalt, copper and zinc could come from the ocean floors by 2020. This might rise
to 10% by 2030.
• Besides oil and gas, potential natural resources are yet to be explored within the
maritime boundaries of BoB. But there might also be promising potentials of
deposits of marine minerals from deep sea mining at the seabed areas to explore
the weather belonging to the categories like polymetallic sulphides,
ferromanganese crusts, ferromanganese nodules and rate earth elements e.g.,
Yttrium etc.
• They vary in composition, shape and site. If these resources are managed
correctly, this natural capital can be converted into jobs, infrastructure, public
service improvements and growth within the domestic private sector.
56
• The whole coastal belt has been explored with the invention of 17 deposits of
probably valuable minerals like zircon, rutile, ilmenite, leucoxene, kyanite, garnet,
magnetite and monazite etc.
• For accelerating the mineral mining opportunities under blue economy, it is very
important to update the potential evaluation initially that was conducted in 1994,
followed by further exploration even to the onshore, offshore and deep-sea
minerals mining.
57
Maritime Trade & Commerce – Port & Shipping
INDI
• With its only opening to south, A
to the Bay of Bengal, Chattogram Port Annual Cargo Handling (in MT)
Mongla Port Annual Cargo Handling (in MT)
Bangladesh’s seaports are
crucial, & currently over 90% of INDI
INDI A
its international trades are A
seaborne.
• Bangladesh’s burgeoning economy Number of
is reflected in the 130,118,768 Vessels
Handled
tons of cargo, 33,55,358 TEUs of
MYANMA
containers, & 5,131 ships handled
R
in 2022 by its major seaports.
58
59
• The country currently has a limited
number of modern merchant ships,
with only 91 registered vessels in
2022.
• The full potential of cargo fleets,
Number of The number Investment Number of Tax Carrying
represented by its flag-bearing vessels, oceangoing declined to on the rise oceangoing exempted on capacity is
remains largely untapped. ships was 80 a 35 in 2015 post-NBR vessels rose income until around 3
decade ago exemption of to 91 by 2030 million Tons
• To address this, local shipping VAT in 2018 2022
companies must step forward &

increase their fleet size & capacity.
• Relevant ministries & departments
need to undertake effective planning
& actions to enhance marine trade,
shipping, and transportation. Such
measures willfor
opportunities notthe
only create jobbut also bolster foreign exchange earnings.
population
60
• To relieve the pressures at the Chattogram and Mongla
seaports, the Bangladesh government built the Payra Port.
• Inaugurated in 2016, the port now has a 10.5-metre draft.
• The first terminal of the Payra port is under construction.
• By December 2022, Payra Port has handled around 1600
domestic/international vessels, generating a revenue of
around Tk. 865 crore (US$ 79.9 million).
• Plans are underway to create a bulk-cargo handling
terminal for coal, a container terminal, and oil and LNG
terminals.
• The port will also have road and waterway links with
Dhaka. The Payra Port will be vital for connectivity with
India’s Northeast, Bhutan and Nepal. 61
• The Matarbari Port is a deep-sea port in the
Matarbari area, Cox’s Bazar District.
• Financed by the JICA, its implementation is yet
to be realized.
• Given the low draft & congestion at Chattogram
Port, the Matarbari Port is deemed necessary.
• Efforts will thus have to be made to transition the
project to renewable energy sources.
• The Matarbari Port is envisioned to have a draft
of 18 metres for deep-draft vessels and is
expected to compete with Sri Lanka’s Colombo
Port, the region’s current transshipment hub.
62
• Once the Matarbari Port becomes operational, it is predicted to serve hundreds of millions in
Bangladesh and its surrounding regions and could potentially contribute to 2-3% of our
country's GDP, which are promising numbers, considering the Tk17,777.20 crore being
invested into the project.
• In the last 2 years, the cargo ships that have arrived at the Matarbari port have already earned
us Tk6.84 crore. The 1,031-acre Matarbari sea port will be used as a transshipment port, and
container ships with a capacity of 8,200 TEU can be anchored to it, saving the country both
time and money moving forward.
• Until the Payra and Matarbari ports are fully operational, Bangladesh will continue to rely
on the Chattogram and Mongla seaports, which will remain critical for domestic and
regional trade. However, some government-led measures are also underway.
63
• In the 8th Five-year Plan, the government has placed adequate importance on the cross-
border trade and regional connectivity with the neighbouring countries through development
of intermodal transport network. Moreover, the maritime and blue economy have been
recognized as thrust sectors.
• To facilitate the ease of doing business, One Stop Service has been developed by all ports
and associated sectors while bringing them under the National Single Window.
• All the ports have adopted completely 24/7 port operation including transaction, customs
procedure, appraisal, banking, channel navigation and jetty head operation.
• The Government has planned to establish 100 SEZs out of which 10 have already been
developed including 4 in PPP mode and the remaining 6 by private companies.
• Significant initiatives in national multiple lane highways & dual gauge railway throughout
the country, massive river dredging, & upgradation of inland riverine infrastructures are
underway. 64
• Several Inland Container Depots (ICD) and Inland Container Terminals (ICT)
have been built to facilitate evacuation and distribution of export/import cargo to
the hinterland.
• While Bangabandhu Bridge over River Jamuna and Padma Bridge connects the
country’s north and south respectively, the tunnel under the river Karnaphuli will
ensure an excellent connection along Dhaka-Chittagong-Cox’s Bazar Economic
corridor.
• While the old Chittagong Port is inside the Karnaphuli river having draft and
length restriction, a new green field terminal called Bay Terminal is being planned
with a length of 6.15 kilometers outside the Karnaphuli river facing the Bay of
Bengal which will have several container and multipurpose terminals.
65
Effects of IMO Strategy on Reduction of GHG Emission on Bangladesh’s Shipping
Sector
• Given the lifetime of ships of 20-25 years, ships recently put into service or being ordered
now ought to plan for being able to run on zero or near-zero GHG fuels in the not-so-distant
future. Otherwise, they risk ending up as stranded assets.
• In this policy context, environmental, economic, and financial reasons also rule out a major
role for liquefied natural gas (LNG) in shipping’s decarbonization.
• The measurable impacts on Bangladesh should be assessed as per the procedure prescribed
in the strategy, and the outcome be taken into consideration before adopting the strategy.
• In this connection, the capacity-building and technical support as promised in the strategy
for the developing countries should be availed effectively. Besides availing the technical
assistance including R&D and fundings, participation in appropriate cooperation initiatives
of the global and regional port and shipping community should be actively considered.
66
Maritime Trade & Commerce – Tourism
• As per the Economic Impact report by WTTC, the total contribution of travel and tourism
of Bangladesh was USD 9,419.3 million in 2019 which comprised 2.7% of the total GDP.
• The current blue economy of Bangladesh focuses mainly on tourism and recreation
(25%), followed by marine capture fisheries and aquaculture (22%), transportation
(22%), offshore gas and oil extraction (19%), ship and boat building/breaking (9%), and
minerals (3%).
• The contributions of tourism and recreation to the national GDP amounted to over US$10
billion in 2016, and they created more than 2 million direct and indirect jobs. This sector
of Bangladesh bases its activity on domestic travel and tourism, which account for 98%
of the total.
• According to the recent report on Voluntary National Reviews (VNRs) of Bangladesh
2020, the tourism industry currently supports 1.3 million direct employees, while 2.4
million jobs are indirect, which clearly indicates that the sector has significantly
recovered from the Covid 19 impacts. 67
• Coastal tourism in Bangladesh mostly takes place on the world’s longest (120 km)
unbroken and natural sea beach, Cox’s Bazar, which is one of the most popular tourist
destinations in Bangladesh.
• Gradually, the sub-sector has flourished due to the development of many other sea
beaches, like Patenga; Himchari, Inani, and its adjacent areas, representing a marine
drive; Kuakata; St. Martin; Char Kukri-Mukri; and several beaches at the Sundarbans,
like Jamtala, Kochikhali, Dublar Char, Trikona Char, Bangobondhu Char,
Mandarbaria, and so on.
• Nowadays, coastal tourism is one of the most popular forms of tourism in Bangladesh,
but maritime tourism still isn’t. The government and the tourism-based private sector
are taking various initiatives to develop and promote maritime tourism in Bangladesh.
68
• Challenges for Bangladesh’s Coastal and Marine Tourism (CMT) include among others:
√ Lack of a dedicated CMT policy leading to coordination gap among the concerned
ministries regarding the implementation of the existing institutional instruments and
governance mechanisms, low level of stakeholder’s participation in planning &
implementing these instruments, absence of economic support, like cash incentives, tax
holidays, etc.
√ Anthropogenic pressure on the local environment and ecosystems, such as greater use of
water, other resources, and energy, increased waste generation, and accumulated emissions
from various sources, like air, road, and sea transport, particularly in peak seasons,
compounded by rapid growth of the unplanned and uncontrolled domestic tourism
industry.
√ Climate Change threats to CMT primarily comes from rising sea level.
√ Lack of international popularity as a tourist destination deprives the potential of CMT in
foreign revenue earning.
√ Other challenges include lack of trained & competent manpower, the knowledge gap,69
• Bangladesh is among the top 25 countries in the world for tourism growth. Estimations
have indicated that the overall tourism sector will grow at an annual rate of 6.1% from
2017 to 2027.
• The projected future global growth of CMT, would also apply to Bangladesh, where the
growth of investment in the tourism sector is likely to be 9.3% per year from up to 2027.
• Different forms of tourism may have potential in the context of the coastal environment
of Bangladesh like eco-tourism and sustainable tourism, which would require competent
human resource development and good management.
• The Bangladesh Tourism Board (BTB) has finalised the much-awaited tourism master
plan with the goal of attracting 5.57 million foreign tourists annually by 2041 and
fostering the creation of 21.94 million jobs within the sector.
70
Coastal & Marine Tourism
• The newly formulated plan has sought
$1.08 billion public and private
investment to develop 10 tourism
clusters. The feasibility study of five of
these projects are currently in progress,
according to the BTB.
• Besides, the government will also invest
$105.5 million to develop infrastructural
facilities like roads, electricity and
security.
• The private investors will mainly invest
in constructing star hotels, resorts,
amusement parks and other luxury
facilities.
71
GLOBAL TRENDS
AND UNCERTAINTIES
72
Global Trends and Uncertainties
• A wide range of global trends and macro-factors are set to influence
the longer-term development of the ocean economy.
• Their combined effect is expected to cut both ways.
• While on the one hand many of them hold out the promise of
expanding economic, social and health-related opportunities through
ocean use, on the other hand, they point to a further increase in the
pressures already weighing on the ocean’s health.
73
World Population & Urbanization
• The most important trends and drivers are most likely to be related to the structure
and settlement patterns of the world’s population attributable to
√ population growth (8.5 billion by 2030);
√ demographic distributions (Africa will account for more than half of the global
population growth by 2050, followed by Asia) including a significant increase in
urban populations;
√ global economy such as growth or recession for that matter;
√ international trade;
√ the effects of climate change, pandemics, etc.;
√ the influence of technological advances and innovation/ 4IR;
√ the impact of governance and geopolitical factors such as changing world order.
74
World Population & Urbanization
• World population growth, urbanization and intensifying coastal settlement are all
placing mounting strain on the ocean’s health and state of its natural resources.
• Growing ocean pollution through sewage, fertilizer run-off, disposal of plastic
waste, increased exploitation of marine resources, etc. all weigh heavily on the
ocean environment, with little prospect of a reversal of such trends.
• Those very same population factors are also at the heart of growth in the ocean
economy, as they constitute an important driver of maritime activities.
• Expanding populations will need to be fed, raising demand for fish, mollusks and
other marine foods; as consumers they will stimulate sea-borne freight and
passenger traffic, shipbuilding and marine equipment manufacturing, as well as
exploration for offshore oil and gas reserves. Ageing populations will continue to
motivate the medical and pharmaceutical communities of the world to accelerate
marine biotechnological research into new drugs and treatment. Bangladesh needs to
carefully chart its course to capitalize on these opportunities, while minimizing the
negative impacts. 75
Climate-Ocean Interaction
• The Intergovernmental Panel on Climate Change (IPCC) indicates not only that
there are intense physical climate-ocean interactions, but that the impact of these
interactions might well have serious implications for human and economic
development over the next century.
• Sea-level rise, ocean warming, extreme weather conditions and other phenomena are
still little understood by the scientific community, and their economic implications
hard to assess.
• The consequences are being, and will continue to be, felt by fishing & aquaculture
operations, the offshore oil & gas industry, vulnerable low-lying coastal
communities, shipping companies, coastal & marine tourism, & marine bio-
prospecting for medical and industrial purposes.
76
Climate-Ocean Interaction
• An indirect effect of climate change on all marine industries emanates from the
responses (e.g., emission targets, regulations, standards, incentives) to rising GHG
emissions, biodiversity loss & so on.
• Some, such as shipping, offshore oil and gas platforms and seabed mining, are very
likely to see their operations continue to be the object of tighter regulation, tougher
safety rules and closer monitoring of their activities.
• Others, such as offshore wind farms and ocean renewable energy devices, are likely
to receive more stimulus for further research and investment.
• Accordingly, Bangladesh needs to put more emphasis on offshore renewable energy
sector, while gradually reducing dependencies on "carbon-intensive energy sources".
77
Slower Economic Growth, Geographical Shifts & Rise of the Middle Class
• According to the 2014 OECD work on projections to 2060, potential real growth in
individual OECD and G20 economies is set to slow through to 2060, while the
emerging market economies are set to put in a more sustained performance. The
result will be a major shift in the centre of economic gravity away from OECD
countries towards emerging economies, and especially those in Asia.
• However, over time, economic growth in the emerging economies will slow too, as
the influence of less favourable demographics & a slowing productivity commence.
Population ageing will lead to a shrinking potential labour force, only partially
compensated by AI and technology intensive industries.
• A range of economic factors – singly or in combination – could act to slow or even
jeopardize the future growth trajectory which include, fiscal pressures from
unfavourable demographics & intensified spending pressures due to pensions,
health, education and infrastructure investment; plummeting pace of multifactor
productivity (MFP); rising cost of economic growth due to climate change, etc. 78
Slower Economic Growth, Geographical Shifts & Rise of the Middle Class
• Global freight trade could grow between 330% and 380% by 2050, the impetus of
which, to the shipping business and ports will be considerable.
• Port volumes are expected to almost quadruple by mid-century with a gradual shift
in trade patterns eastwards. Then again, deterioration in the public expenditures,
productivity and climate change damage could act to slow global income growth.
• As the middle classes emerge as powerful drivers in the emerging economies and
some developing countries, important consequences for consumption patterns can be
expected, e.g., higher demand for marine tourism and especially cruise tourism; big
shifts in dietary habits towards higher quality fish and other marine products.
• Bangladesh needs to carefully consider the possible changes in the shipping sector
(e.g., shipping lines, shipbuilding, port infrastructures, etc.) to adopt with the future
changes in markets, routes, types of cargo and types of vessels. Besides, rising
opportunities in marine and coastal tourism should also be exploited. Through
maintaining its healthy demography, it should focus more on technology-oriented
HRD so as to exploit the unfavourable demography of the bigger economies.
79
Dominance of Fossil and a Changing Energy Landscape
• The COP 26 conference adopted the Glasgow Climate Pact where nations have been
called upon to phase down unabated coal power and inefficient subsidies for fossil
fuels. However, reducing energy consumption from fossil fuel sources will likely
prove extremely challenging because a significant reorientation of the world’s
energy system will take time, and also because fossil fuel reserves are enormous.
• There are 1.65 trillion barrels of proven oil reserves in the world as of 2016. The
world has about 47 years of oil left (at current consumption rate). Proven world
natural gas reserves are in the order of 52 years of production at current levels. And
coal reserves exceed those of oil and gas combined.
• As of 2023, global offshore wind power capacity is 64.3 GW and by 2050 a growth
of a further order of magnitude has been projected (Anson). And while ocean power
(wave, tidal, thermal conversion, salinity gradient technology) is not yet mature or
operating at commercial scale, its longer-term potential is considerable.
80
Offshore Wind Energy Capacity Worldwide from 2009 to 2022 (Source: Statista 2023)
81
(Source: IEA)
82
• Growth in offshore wind capacity, is dependent upon driving down costs across all
elements of the supply chain to become cost-effective vis-à-vis alternative energy
sources.
• Similarly, for both offshore wind and ocean energy technologies, access to finance, a
stable regulatory environment and government support are key conditions for future
large-scale development.
• Depending on future development costs as well as future hydrocarbon prices and
other investment conditions, offshore is projected to continue to provide for
approximately 30% of the global hydrocarbons production.
• Consistent high oil and gas prices are an essential ingredient for the continuing
progress of offshore wind and ocean renewables, as well as for the development of
aquaculture-based algal biofuels.
83
• On the side of users, energy prices are a key determinant in the cost structure of
shipping companies’ operations as well as in their projections of future demand for
their services. services.
• Similarly, oil prices are an important component of the costs borne by commercial
fishing and marine travel and tourism.
• Bangladesh needs to conduct more feasibility studies to determine the most suitable
offshore renewable energy sources for the country.
• Besides, necessary measures should be taken by the government to encourage proper
research, education, training, and investments in this sector.
84
Technological Developments/ 4IR
• New ICT technologies are at the forefront of developments underpinning advances
in science, and revolutionising production and the delivery of services.
• Machine-to-machine communication, highly sophisticated sensors, data analytics
and artificial intelligence are set to bring about quite transformative changes in both
products and processes.
• Improvements in the use and management of energy and natural resources, creation
of new markets and new value chains, changes in global trade patterns and shifts in
international competitiveness, will all flow from progress in ICT.
• Those, in turn, are set to be driven increasingly by convergence in various
information and communication technologies – the Internet of Things – and by
convergence with other emerging technologies such as nano- and biotechnology.
85
Technological Developments/ 4IR
• Big data, data analytics, cloud computing and machine-learning algorithms are
leading to new levels of artificial intelligence and thence to smart applications,
autonomous machines and systems.
• The robots of the future are expected to be flexible, self-learning and intelligent,
with applications in science, space research, mining, health and pharmaceuticals,
and of course in manufacturing.
• Advances in one technology may amplify developments & outcomes of other
technologies, leading to disruptive changes. Such disruptive changes not only bring
benefits, but they also constitute serious challenges to established ways of doing
things, to competitive positions, trade patterns, business models and especially to
labour markets, where changes to working conditions, job losses & job
displacements may result. Every sector of the ocean economy would be affected by
these advances.
• With the aim of gradually bridging the widening gaps with these technological
advancements, countries like Bangladesh should invest in advanced-technology-
oriented human resource development, besides modernizing her industrial base. 86
Geopolitical Developments: A Multipolar World in Flux
• The growing importance of emerging & developing countries; the shift in centre of
economic gravity towards the east and Asia & the concomitant decline in the relative
economic weight of North America and Europe; the internationalisation of supply
chains and networks convey a shift in the global distribution & balance of power, a
clearly visible drift to a multipolar world led by the BRICS members states.
• The flipside to this multipolar structure of economic power is the challenges it poses
to governance and international co-operation more generally. International
institutions such as the UN, the IMF and the World Bank struggle to cope with this
diffusion, indeed fragmentation, of power at all levels, and the growing numbers of
parties with divergent views which need to be consulted and nudged to agreement.
• The recent economic and financial crisis, the Russo-Ukraine war, Russia-NATO
tension, US-China strategic competition, are signaling far-reaching consequences,
while highlighting the extraordinary interdependencies of the world economy and
the vulnerability of economic and social systems to deeply disruptive events.
Possible new financial and economic crises figure prominently on many experts’ list
of the main global risks of the next decades. 87
• Among the most serious geopolitical risks to the future ocean environment are
international tensions and conflicts, both inter and intra-state.
• International tensions often result in environmental priorities being severely
neglected.
• Then there is the threat of the fragmentation of power and the growing difficulty of
forging international consensus on global and regional issues key to the ocean
environment and ocean industries. Whether this involves climate change & GHG
emission levels or the governance of the high seas and area beyond national
jurisdiction (ABNJ), the protection of marine biodiversity or international
conventions on maritime safety, the path to international agreement appears
increasingly complex and painstaking.
• The Global Ocean Commission (GOC, 2014) concluded that ocean governance is
plagued by a patchwork of sectorally focused agencies and institutions hampered by
weak compliance and lack of enforcement.
88
• Bangladesh government’s newly published Indo-Pacific outlook s a timely effort
that envisions a free, open, peaceful, secure, and inclusive Indo-Pacific for the
shared prosperity of all.
• Besides, Bangladesh’s has also signed the 'High Sea' treaty related to the Marine
Biodiversity of Areas Beyond National Jurisdiction (BBNJ) to protect the world's
oceans and reverse the damage done to fragile marine environment by overfishing
and other human activities.
• These steps are indeed prudent and praiseworthy, especially in a potentially
volatile geopolitical scenario where the need for international cooperation and
solidarity is being felt direly.
89
THANK YOU
90

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EMERGING CHALLENGES AT SEA AND ITS IMPACT ON

OCEAN ECONOMY: BANGLADESH PERSPECTIVE

√ Global Ocean Economy Activities &

Global Fish Production in 2020 (Source: FAO) 14

Offshore Oil and Gas Production by

NPC- New Policy Scenario

SDS- Sustainable Dev Scenario

Offshore Wind & Marine Power

NPC- New Policy Scenario

SDS- Sustainable Dev Scenario

Scopes to expand ship

Average Distance Travelled in NM from 1999-2024 (Source: UNCTAD)

Sl BANGLADESH’S KEY MARITIME POLICIES

Area Distribution of Marine Waters

• Inland culture production: 2.639 million MT/Yr Hilsha Production 0.567

Marine Capture Production 0.706

depth at a maximum distance of 90 nm from T

• The marine fisheries sector is underexploited as

The global marine

companies must step forward &

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