Shipbuilding shows signs of pick-up
February 7, 2010
Two local firms gear up to resume the construction of shipyards expecting foreign orders for vessels, as demand has showed signs of a pick-up with recovery from the global recession.
Khan Brothers Shipbuilding Ltd and Narayanganj Shilpbuilders Ltd stalled work to establish shipyards after the global financial crisis depressed global demand for new ships.
“We have already started construction. We had slowed work mainly to bypass fallout from the recession,” said Tofayel Kabir Khan, managing director of Khan Brothers Shipbuilding Ltd, a concern of Khan Brothers Group.
He also blamed the suspension of construction partly on difficulty in obtaining bank loans. The shipyard is being built on the bank of Meghna at Gazaria, Munshiganj, at an estimated cost of Tk 100 crore.
“The deadlock in receiving loans appears to be easing as some banks are coming out and extending loans to shipbuilding. Now we hope to get a loan to establish the shipyard by year-end.”
Khan Brothers, which plans to develop the shipyard on about 50 acres, began building shipyards to build vessels in early 2008, inspired by global demand for vessels at around 10,000 units by 2012.
Small and medium vessels account for about 55 percent of the projected 10,000 ships, insiders said.
According to shipyard operators, Bangladeshi shipyards can tap global demand with small and medium-sized ships, as traditional shipbuilding nations, such as China and Korea, focus on large ships.
With a long maritime history and a favourable geographical location, Bangladesh enjoys various advantages, such as cheap labour, a presence of nearly 100,000 skilled and semiskilled workers and industry-related educational and training institutes.
Two leading local shipmakers — Ananda Shipyard and Slipways Ltd and Western Marine Shipyard Ltd — have bagged orders to make over 40 small vessels of about $600 million, mainly from European buyers.
“We are going to be the third shipyard capable of making global standard vessels for foreign buyers by the end of the year,” said Khan.
Khan Brothers expects to develop its capacity to deliver four ships a year.
Ferdousar Rahman, senior general manager of Khan Brothers, said the shipyard would have the capacity to make vessels up to 15,000 DWT (dead weight tonnage).
“But we will be able to make ships between 3,000-10,000 DWT as well,” said Rahman, also a naval architect from BUET.
Shah Abdul Latif, managing director of Narayanganj Shipbuilders Ltd, said the company had been quiet during the financial crisis.
“It appears that fallout from the recession on the global shipbuilding market is easing. Now we can resume work,” he said. “We will seek bank loans soon to complete the project.”
The official of Narayanganj Shipbuilders, which plans to set up the shipyard off the Meghna River near Gazaria, Munishiganj, said the company is receiving queries from oversees.
“We are optimistic about beginning civil construction from next month.”
Sakhawat Hossain, managing director of Western Marine Shipyard Ltd, also said the company is on an expansion mode to take advantage of recovery in global demand for new ships.
“The market has started picking up. We expect a rise in orders for new vessels by the end of this year.”
Source: thedailystar.net
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