Bangladesh needs a comprehensive shipbuilding policy with a clear implementation plan along with improved infrastructure, dedicated space, easy access to finance and bank guarantee facilities to unleash the potentials of the emerging industry, experts and shipbuilders said.
Terming such the absence of an effective government policy as the main hindrance to the US$ 40 million industry, they said the government should immediately look into it to make Bangladesh one of the world's best places for shipbuilding.
They said the industry could indeed become the country's third largest foreign currency earner in less than 10 years if the government provides necessary support relating to bank guarantee, access through green channels and declaring export-oriented shipyards as export processing zones.
"The sector cannot be developed according to our expectation without a comprehensive policy. The government should immediately take measures to make the policy considering the prospects of the industry," Chairman of Bangladesh Tariff Commission (BTC) Dr Mojibur Rahman said at a seminar.
Business Initiative Leading Development (BUILD) organised the seminar titled 'Unlocking the Investment Potential of the Shipbuilding Industry' at a city hotel to identify its key constraints and discuss a framework for eradication of those hurdles.
"The world shipping market is going down and those who will make ships will be looking at less costly markets like Bangladesh. So we need to have a policy soon to grab the opportunity," the BTC chairman said.
He however added that it is a matter of optimism that the Ministry of Industries has recently taken an initiative towards the issue.
Chairman of Ananda Group Dr Abdullahel Bari said lack of access to bank finance has seriously been hurting the shipbuilders. "The high bank interest rate should be brought down to single digit and the banks must finance 70 per cent of the required money," he said.
Ananda Group is one of the country's leading ship making companies which attained the capacity to manufacture quality ships of 10,000 DWT (Dead Weight Tonnage) and the firm is expanding its facilities to upgrade them up to 50,000 DWT.
"We're proud that Bangladesh can build diversified types of both inland and sea going vessels," President of Dhaka Chamber of Commerce and Industry (DCCI) Asif Ibrahim said.
He said shipbuilding nations like China and South Korea have already got orders for this year (2012). They are unable to get new orders. So, this situation gives Bangladesh a chance to secure a share in the ship exporting business.
He said Bangladeshi shipbuilders have drawn attention of the world and recently got orders worth $ 120 million for supplying ships to European and Southeast Asian owners.
"We are overwhelmed to know that orders amounting to more than Tk 14 billion are expected over the next two years. We need to be prepared for this," he added.
They also hailed the proposed budget for the coming fiscal year (FY 2012-2013), saying that it has included the industry in the priority list and announced some incentives, which is a clear testimony that the government is very much willing to see success of the sector.
Global buyers are now looking forward to Bangladesh's shipbuilding potential instead of India, China and Vietnam especially for her low labour cost and maintaining the delivery schedule, industry insiders said.
Bangladesh is now receiving orders for ocean-going vessels and ferries from as many as 20 countries - mainly Denmark, the Netherlands, Germany and the Middle-East.
Bangladesh Export Promotion Bureau (EPB) data showed the industry exported nearly $ 46.23 million worth of ships in the first ten months of the current fiscal (FY 2011-12) while the total export volume was $ 40 million in the last fiscal (FY 2010-11).
The country's nine big shipbuilders have received shipment orders for 40 small and large vessels worth $ 600 million with a December 31, 2013 deadline, according to the Association of Export-Oriented Shipbuilding Industries of Bangladesh (AESIB).