The corporation secures initial approval from the Planning Commission

BSC Secures Initial Approval for $330 Million Vessel Acquisition Project

• The Bangladesh Shipping Corporation (BSC) has received preliminary approval from the Planning Commission (PC) for its $330.32 million project to procure six container vessels from South Korea.
• Each vessel will have a capacity of 2,500 to 3,000 TEUs, as per BSC's disclosure in a stock exchange filing on Sunday.
• A concept paper for the project has been signed with Korea's Economic Development Cooperation Fund (EDCF), which is currently conducting a feasibility study.
• The final implementation of the project depends on EDCF's approval, according to the disclosure.
• Following the announcement, BSC's stock price rose 1.85%, reaching Tk 87.90 on the Dhaka Stock Exchange on Sunday.

Future Expansion Plans

• As part of a broader initiative, BSC is also pursuing another project to acquire six more vessels with capacities of 2,800 to 3,000 TEUs, aimed at transforming the country's maritime trade sector.
• Currently, BSC operates oil and bulk cargo vessels but does not own any container ships. This acquisition will mark a significant milestone in its maritime cargo transport operations.
• The majority of the funding for this project will come from foreign loans provided by South Korea's EXIM Bank, with the remainder financed by the Bangladesh government.
• According to a company official, if all progresses as planned, these six new vessels will join BSC's fleet within the next three years.
• This expansion aligns with the government's vision to make BSC a self-reliant shipping entity and strengthen Bangladesh’s presence in global maritime trade.

BSC's Growth and Operational Overview

• Established in 1972 with just two ships, BSC was listed on the stock market in 1977.
• Until 2018, it owned only two vessels, after which six more ships were added—three in 2018 and three in 2019.
• One vessel, Banglar Samriddhi, was damaged during the Russia-Ukraine war in 2022, leading to an insurance claim payout of $22.48 million in March 2023.
• In September and October 2023, two older lighter ships, Banglar Jyoti and Banglar Shourabh, were damaged in separate fires. BSC has decided to sell these fire-damaged oil tankers for Tk 505.6 million.
• At present, BSC's fleet consists of five ships.

Policy Support and Government Mandates

• In February 2023, the Shipping Ministry issued a Bangladesh Flag Vessel (Protection of Interests) rule, mandating that BSC handle waterway shipments of all state imports, including fertilizer, crude oil, food items, and motor vehicles.
• The Bangladesh Flag Vessels (Protection) (Amendment) Act requires government agencies like the Bangladesh Petroleum Corporation and Bangladesh Chemical Industries Corporation to prioritize BSC for import shipments.
• BSC's fleet transports export commodities such as garments and imports including grain and crude oil.

Financial Performance

• In July-December 2024, BSC's profit surged 44% year-on-year to Tk 1.44 billion, while gross operating revenue increased 31% to Tk 2.97 billion.
• The corporation has experienced consistent annual profit growth, achieving a record profit of nearly Tk 2.50 billion in FY24.
• Based on this strong financial performance, BSC declared a 25% cash dividend for FY24, maintaining the same dividend level as in FY23.
• The rise in international freight charges, the Russia-Ukraine war, and the strong dollar value have contributed to BSC's robust revenue growth.

This expansion is expected to enhance Bangladesh’s maritime trade capabilities and position BSC as a key player in global shipping.