Mushir Ahmed

Leading shipbuilder Western Marine said it would build the country's largest shipyard cum dry-dock at a cost of US$ 100 million next year to make bigger vessels as the global shipping market shows signs of recovery.

The Chittagong-based company last year set up a Tk2.00 billion shipyard and slipways at Colagaon on the bank of the river Karnaphuli with orders from European companies to build 18 ships at a price of US$180 million.

Chief executive Sakhawat Hossain said the company has started talks with top ship makers in South Korea, Japan and Denmark to jointly build a new facility at Anwara to make and repair ships weighing up to 25000-30,000 dead weight tonnage (dwt).

"We have bought 54 acres of land to set up the new shipyard and dry-dock. We hope to clinch a deal with a foreign shipbuilder soon and start constructing the shipyard early next year," Hossain told the FE.

Hossain, a marine engineer, said the new project would cost around $100 million, making it the biggest in Bangladesh, and it would be able to build two big ships valued at around $100 million and 10 small vessels and repair 20 ships and tankers a year.

Bangladesh joined the global ocean-going shipbuilding industry in 2007 with the country's two shipbuilders, Western Marine and Ananda, signing deals to build some 50 small ships at a cost of $600 million.

Although the worst global recession in decades has cut four ships off Ananda's orderbook in recent months, Western Marine remained unscathed and is eyeing new orders as the world economy shows signs of recovery.

Both companies have said they have gained expertise to build smaller ships that weigh less than 10,000 dwt at the most competitive rates in the world thanks largely to abundance of cheap labours in the country.

Hossain said they have now planned to build larger ships, which ensure bigger profit margin with relatively same overhead cost and manpower.

"We are looking for foreign partners which have proven expertise to build bigger vessels. We want to bring the technology to Bangladesh so that we can gain strength as we build more ships here," he said.

The company also targetted a fast-growing market for ship-repairing as the country's lone dry-dock can only patch up vessels that ply in rivers and coastal waters.

"Bangladesh companies own more than 50 ocean going ships. Each year they spend millions of dollars to repair their vessels in dry-docks in Singapore and other regional ports," he said.

"Our target is to keep the foreign exchange at home," he said.

Western Marine, which is manned by foreign trained engineers and naval architects, has already created jobs for 1600 people in its Colagain shipyard and slipways.

The new facility at Anwara is close to the mouth of the Karnaphuli and it would generate jobs for at least 2500 skilled workers, Hossain said.