Ship exports resume after a two-year hiatus

Ship Exports Resume in Bangladesh After Two Years

Ship exports from Bangladesh are set to resume after a two-year pause, with Chattogram-based Western Marine Shipyard preparing to deliver a vessel named Rayan to the UAE in the first week of January. This marks a significant revival for the nation’s ship export sector.

The delivery of the landing craft vessel Rayan has rekindled hope in an industry that had almost been forgotten. Western Marine Shipyard officials stated they plan to export seven more vessels to the same buyer in phases.

According to the National Board of Revenue (NBR), Western Marine Shipyard last exported ships on 29 January 2020, delivering two vessels to India, each valued at USD 11 million. The company now returns to exports after a five-year hiatus, during which it focused on manufacturing ships for local clients.

A Sector Rebounds After Global Challenges

Western Marine Shipyard’s managing director, Captain Sohail Hasan, told Prothom Alo that the prolonged stagnation in ship exports is finally ending. He noted that the global recession, which had heavily impacted the shipbuilding industry, is easing, creating opportunities for new work orders.

The shipbuilding export industry in Bangladesh began in 2006 when Dhaka-based Ananda Shipyard and Slipways delivered a ship to Denmark—the country’s first export in this sector. Western Marine Shipyard entered the export market in 2010, exporting its first seafaring vessel to Germany. Together, these two companies are the only Bangladeshi players in the ship export industry.

However, the sector has faced significant setbacks over the years. The 2011 global recession, compounded by the COVID-19 pandemic and the Russia-Ukraine war, led to canceled orders and heavy financial losses for local entrepreneurs. Both Ananda Shipyard and Western Marine Shipyard struggled with irregular loan payments during this period.

Signs of Recovery

Despite these challenges, the sector is showing signs of recovery, bolstered by government policy support. For example, Ananda Shipyard faced the cancellation of 10 orders during the recession, even when five of those ships were near completion. While two of these ships were sold to alternative buyers two years ago, the company now has potential buyers for the remaining three.

Tariqul Islam, executive director of Ananda Shipyard, shared that representatives from a Turkish buying group recently visited their facility. If financing is secured, the company plans to complete and export the unfinished ships.

Achievements in the Sector

Since 2006, Bangladesh has exported 45 ships and vessels, including 19 seafaring ships, ferries, and other marine crafts. The total export revenue from this sector has reached USD 15 billion, according to the NBR and industry insiders.

As Bangladesh’s shipbuilding sector regains momentum, industry leaders remain optimistic about the future, anticipating new orders and sustained growth in the years ahead.