FE Report

Bangladesh will be a major player in global shipbuilding industry as it can make quality ocean-going ships at the most competitive price, a German business leader said Sunday.

"International buyers are increasingly placing orders to build ships in Bangladesh," said Peter Clasen, head of a German delegation visiting the country, at a meeting at Meghnaghat in Narayanganj.

"The reasons are simple: Bangladeshi companies can build ships at a cheaper rate than other nations and can also maintain high quality," Clasen told a gathering at Ananda Shipbuilders and Slipways, the country's pioneering vessel maker.

Mr. Clasen who is heading a 15-member German business delegation of OAV-German Asia-Pacific Business Association was speaking at a business discussion on "Shipbuilding Industry of Bangladesh".

The team also comprises major shipbuilders of the Europe's largest economy and is expected to hold talks with local shipbuilders and visit their shipyards during its four-day tour.

Mr. Clasen said high number of participants from the shipping companies and shipbuilding industry in the delegation illustrates the existing interest of the German firms in Bangladesh's emerging sector.

He said German companies operate with long-term perspective including transfer of technology and know-how and involvement of local partners in value addition.

"Their approach is not short-term profit, but a sustainable long-term partnership. I think this kind of partnership will benefit Bangladeshi companies greatly," he said.

"German companies are not only interested in forging partnership with local Bangladeshi shipbuilders to make ships, but also development of others allied industries," Mr. Clasen added.

Shipping Minister Shajahan Khan said Bangladesh has demonstrated its ability in building quality ships of international standard at a short span of time.

"The shipbuilding sector would be the flagship of the country's economy like ready-made garments within years," Khan said.

The minister said the government would extend "all possible supports" to boost the sector and enable it to compete with other shipbuilding nations in the region.

"Bangladesh will very soon play a leading role in the global shipbuilding market. We are ready to lend all our support to foster its growth," he said.

Mr. Shajahan admitted that Bangladesh lacks shortcomings in terms of technological excellence and research. "But I hope these hurdles would be overcome with the transfer of appropriate technologies from western nations."

The shipping ministry has been playing an advocacy role in reducing the cost of financing of the sector as the ongoing global economic crisis has adversely affected the country's shipbuilders, the minister added.

Abdullahel Bari, chairman of Ananda Shipyard, said the government should give 30 per cent incentive for the next five years to help the local entrepreneurs fight with their regional competitors.

The bank interest rate should also be lowered, he said.

Mr. Bari told the gathering his company has already handed over seven ocean-going ships to the clients from Denmark and Mozambique and is now preparing to hand over another new vessel to a Danish buyer.

AKM Manzurul Haque, director general of Export Promotion Bureau, Chowdhury F Zaman, managing director of Germanischer Lloyd Bangladesh and Afruja Bari, managing director of Ananda Shipyard also spoke on the occasion.