...PROSPECT OF SHIP BUILDING INDUSTRIES IN BANGLADESH Md. Mahfujul Amin 10364075 Managerial Communication BUS 502 Spring 2011 BRAC UNIVERSITY Prospect of ship building industries in Bangladesh Abstract: Bangladesh has a thousand year old history in shipbuilding. There are more than 200 shipyards in the country, which are mainly engaged in building and repairing low quality inland vessels. Two shipwards have succeeded in making international classed vessels- and many more will come. It is about 15% cheaper to produce a ship in Bangladesh than anywhere else and the industry is expected to grow significantly. Introduction: Bangladesh is enjoying a boom in ship building. Driven by rising demand and a global supply shortage, existing players in the market have been able to capitalize on a global backlog in orders and sharp rises in prices. While investment in existing shipyards provides significant investment opportunities, investment in new yards may less compelling given two to three year lead times, a forecast fall in demand from 2011 and global dominance from China. However, leveraging its low cost base, adopting new technologies, coupled with government incentives and a strategic focus on areas...
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...International Conference on Marine Technology 11-12 December 2010, BUET, Dhaka, Bangladesh STUDY ON SOME COMPETITIVE PARAMETERS FOR SHIPBUILDING INDUSTRY IN BANGLADESH N. M. Golam Zakaria, M.M. Rahaman and Kh. Akhter Hossain Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology, Dhaka, Bangladesh gzakaria@name.buet.ac.bd ABSTRACT Despite Bangladesh has glorious history & heritage as a shipbuilding nation since ancient time, shipbuilding has been in focus only from the last couple of years. The optimism about this industry arose from the success attained by a number of local entrepreneurs who brought the name and fame to Bangladesh as a country with great potentials in shipbuilding by building and handing over some ocean-going vessels to overseas buyers. Since then, the shipbuilding in Bangladesh did not have to look back and now new opportunities are knocking at the door to flourish this industry further. However, due to global nature of this industry, an assessment of suitability to modern shipbuilding in terms of global standard is of prime importance. This paper focuses on studying some crucial competitive factors like labour skill, labour availability, labour man-hour, labour cost & productivity for local shipbuilding which are the inherent part for expansion of this industry. The analysis also focuses on the existing access to the resources like materials, knowledge and capital for shipbuilding. Comparison of these parameters...
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...Bangladesh Shipbuilding industry now a promising sector November 15, 2007 The shipbuilding industry in Bangladesh is now becoming a promising sector as it has signed several contracts with Danish investors to build multipurpose vessels. On at least two instances, Danish shipping interests recently have placed substantial orders with Bangladeshi shipyards. Ananda Shipyard in Meghna Ghat and CS and Partnere A/S, a Danish ship consortium, have signed a agreement to build a ship, said a press release. The first ship – a 2,900 DWT multi-purpose vessel currently under construction at Ananda Shipyard and will be delivered in early 2008 – is the first of a series of up to 14 ships ordered by the Danish investors.The second order landed by a Bangladeshi shipyard was when Western Marine in Chittagong signed a contract to build up to 5 multipurpose vessels (4,100 DWT) to be delivered to a Danish ship consortium. ‘The two orders have positioned these shipyards as serious players in the international shipbuilding industry in strong competition with Chinese and Vietnamese shipbuilders, said Danish Ambassador to Bangladesh Einar Hebogard Jensen. ‘In order to live up to the highest international standards to design ship and to obtain international accreditation from bureaus such as “Germanisher Lloyd” and “Norske Veritas” it will be important for the shipyards to be able to import various fittings and components necessary for the ships to reach an international standard,’ Einar commented...
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...Ship Building Industry of Bangladesh The history of indigenous shipbuilding in Bangladesh goes back a long way. It is one of the early industries developed in Bengal based on its old business of building boats and sea vessels. Bangladesh has a strong background in building ships since ancient times. Many countries of Asia and Europe regularly bought ships built in Chittagong. Bangladesh has a strong background in building ships since ancient times. It is quite natural in that Bangladesh has more than 200 rivers with a total length of about 22,155km plus a long coast line on the Bay of Bengal. It is little known today that Bangladesh was the center of building ocean-going vessels in Asia between the 15th and 17th century. In the early 19th century, the shipyards of Chittagong built many commercial ships of up to 1,000 tons and also British navy vessels that participated in the battle of Trafalgar in 1805. Due to this historic prosperous background and also a natural geographical advantage, there are presently more than 200 shipbuilding and ship-repair yards in Bangladesh. | Ship Building Industry in Bangladesh | Prospect of Shipbuilding Industry in Bangladesh: The history of indigenous shipbuilding in Bangladesh goes back a long way. It began with wooden-bodied passenger vessels having two decks and gradually improved to steel-body construction of multi-deck passenger carriers in the eighties as the passenger transportation in reverine route...
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...Assignment 4 THE CURRENT STATUS AND FUTURE OF SHIPBUILDING INDUSTRY IN BANGLADESH Prepared for: Shawkat Kamal Course instructor, Portfolio Management & Investment Analysis Prepared by: MD. FERDOUS KABIR ID No.: 140 Batch: 46D MBA Program INSTITUTE OF BUSINESS ADMINISTRATION UNIVERSITY OF DHAKA kabir_ferdous@yahoo.com April 1, 2013 INTRODUCTION: Bangladesh is a maritime nation with 1,66,000 sq. km area of sea, abundance with living and non-living resources. There are more than 200 rivers all around the country, with a total length of about 22,155 km, which occupy about 11% of total area of the country. Here rivers and water transports play a vital role for economical and commercial activities in Bangladesh. Major export and import of Bangladesh (about 85%) is also traveled by sea. At present more than 5,000 inland/coastal ships have been plying all over the country, which carry more than 90% of total oil product, 70% of cargo and 35% of passengers. More than 1,00,000 skilled workers and 150,000 semi-skilled workers are employed in this labor-intensive industry. All inland ships are constructed and repaired in local shipyards. Bangladesh harbours the second largest ship breaking industries in the world. They are the prime source of raw material including plate, frame, stiffener, longitudinal, pipe, old engine/generator, and even auxiliary machinery, for most of the local private shipbuilding yards. Those are used as raw material in manufacturing and repairing...
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... The giant ship building nations such as Korea, Japan, China, and Vietnam have been booked with large orders for the next ten years. Some countries have already announced that they will not go for building ships less than 25,000 DWT (Dead Weight Tonnage). This opens up an opportunity for Bangladesh. If Bangladesh could nurture this opportunity with a helping hand from the government, as well as from other quarters, it could be the second largest export earning industry after ready-made garments within less than 10 years. But the shipbuilding industry of Bangladesh currently faces several problems such as high rate of bank guarantee, lack of working capital with low interest rate, lack of availability of land on river banks to build shipyards, etc., which should be solved on a priority basis to get results early from this industry. Bangladesh is a land of rivers and shipbuilding is synonymous with Bangladesh. Thousands of locallybuilt ships ply its inland waters. Almost 90 percent of petroleum and food products and 20 percent of passengers move through the waterways which has created the opportunity to build and use these water vessels here. Historically Bangladesh has a ship building infrastructure. Shipbuilding in Bangladesh is not new but the rise of export-oriented shipbuilding industry is. With the first export order for building ocean going vessel secured by Ananda Shipyards and Slipways Ltd. and the keel-laying of first export order ship on 22nd February...
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...Prospects of shipbuilding industry in Bangladesh by Dr NM Golam Zakaria The rich history of shipbuilding in Bangladesh dates back to a long ago. Due to congenial geographical location of this part of sub-continent, people living here used to craft wooden boat for commuting and transporting goods. They also nurtured their heritage of craftsmanship in boat building over many centuries and transferred this artistic skill to subsequent generations across different cluster of population. Historical records say that Chittagong port was the best centre of building ocean-going vessels in the middle of the 15th century. Even in the 17th century, the entire fleet of ships of the Sultan of Turkey was built at Chittagong. Also in 1805, the British Navy built ships at Chittagong for the famous battle of Trafalgar. However, with the passage of time, the glory of shipbuilding in this region began to fade. Shipbuilding revived again when a number of local entrepreneurs of Bangladesh brought name and fame for the country by developing potential in shipbuilding by handing over some ocean-going vessels to overseas buyers from Denmark, Finland and Mozambique. Bangladeshi shipbuilders have also handed over few ice-class vessels to a German company and more vessels are going to be delivered by the next few years. Thus shipbuilding in Bangladesh is marching forward in a way to securing a firm position in the world market and at the same time, the country...
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...Identifying and Analysing Underlying Problems of Shipbuilding Industries in Bangladesh 147 IDENTIFYING AND ANALYSING UNDERLYING PROBLEMS OF SHIPBUILDING INDUSTRIES IN BANGLADESH K. Shahriar Iqbal*, N. M. Golam Zakaria and Kh. Akhter Hossain Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology, Dhaka-100, Bangladesh *Corresponding email: iqbal.shahriar@gmail.com Abstract: Shipbuilding is considered to be a thrust sector in the economy of Bangladesh. But various problems are there to obstruct the development of this sector. This paper is aimed to identify the underlying problems and then analyze the nature of the problems to make it helpful overcoming the obstacles. A brief history and prospect of the shipbuilding industries in Bangladesh in the perspective of global scenario is also discussed. Key Words: Problem identification, shipbuilding industry, Shipyards. INTRODUCTION Bangladesh is a maritime nation with 1,66,000 sq. km area of sea, abundance with living and nonliving resources1. There are more than 200 rivers all around the country, with a total length of about 22,155 km, which occupy about 11% of total area of the country. Here rivers and water transports play a vital role for economical and commercial activities in Bangladesh. Major export and import of Bangladesh (about 85%) is also traveled by sea2. At present more than 5,000 inland/coastal ships have been plying all over the country, which carry more than...
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...The shipbuilding industry was very important to support fishing, exploration and commercial activities during the years of early European settlement to the United States, a time referred to as the colonization of the United States or “Colonial America”. The British were depleting their wood sources along the waterways on Europe’s west coast. Shipbuilding in Colonial America was mutually advantageous to both the colonists and the British. The many attributes that the wood in Colonial America could provide were desirable to the British. Another benefit of buildings ships in North America was that they were cheaper than those built in British yards. Finally, Building ships in North America also gave the colonists another useful trade item. These are the main reasons why shipbuilding...
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...Shipbuilding in Ancient China Ships are one of the oldest and most important means of transportation along seacoasts, across the oceans, and inland waters. For hundreds of years, people have sailed the seas to explore, to settle, to trade and sometimes to conquer. Historians and archaeologists do not know when the very first individual ship was built. However, it is known that the ancient Egyptians were able to create watercraft with hulls using wooden planks and sails as early as 3000 BC. Egyptians used "sailing ships" to transport people and goods on the Nile. These ships were generally made out of reed and also used oars. Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders are person (s) or group of people whose job or business is the design and construction of ships. Shipbuilding and ship repairs, both commercial and military, are referred to as "naval engineering". The construction of boats is a similar activity called boat building. China boasts a shipbuilding history as long as that of mankind. Spanning a time period of thousands of years, Chinese ships have evolved from rafts and canoes to wheel ships and today's steel vessels. The various ship models, structures, and propellers have vividly reflected the humankind's technological development and creativity, which is true with the famous ships in ancient China, such as the Lou Chuan (castle ships) of the Han Dynasty(206BC-220AD)...
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...Identifying and Analysing Underlying Problems of Shipbuilding Industries in Bangladesh Journal of Mechanical Engineering, Vol. ME 41, No. 2, December 2010 Transaction of the Mech. Eng. Div., The Institution of Engineers, Bangladesh 147 IDENTIFYING AND ANALYSING UNDERLYING PROBLEMS OF SHIPBUILDING INDUSTRIES IN BANGLADESH K. Shahriar Iqbal*, N. M. Golam Zakaria and Kh. Akhter Hossain Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology, Dhaka-100, Bangladesh *Corresponding email: iqbal.shahriar@gmail.com Abstract: Shipbuilding is considered to be a thrust sector in the economy of Bangladesh. But various problems are there to obstruct the development of this sector. This paper is aimed to identify the underlying problems and then analyze the nature of the problems to make it helpful overcoming the obstacles. A brief history and prospect of the shipbuilding industries in Bangladesh in the perspective of global scenario is also discussed. Key Words: Problem identification, shipbuilding industry, Shipyards. INTRODUCTION Bangladesh is a maritime nation with 1,66,000 sq. km area of sea, abundance with living and nonliving resources1. There are more than 200 rivers all around the country, with a total length of about 22,155 km, which occupy about 11% of total area of the country. Here rivers and water transports play a vital role for economical and commercial activities in Bangladesh. Major export and import...
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...Economic The shipbuilding and repair services industry faces impacts from global economic development, changes in economic growth patterns and expectations of increasing and/or decreasing growth in the future (Kakatkar, 2009, pg9). The industry’s main driving force is economic growth because sea is the main source of exportation and importation of goods and services across countries and continents (Nam Sung et al., 2009, pg2). Global shipping freight rates rose in 2013 to their highest level in more than 18 months. The measure, known as the Baltic Dry Index, is seen as a key indicator of global economic growth. The index tracks how much it costs for ships to carry dry-bulk commodities such as iron ore and coal. In reference to shipbuilding being a cyclical industry, Bloomberg Businessweek says “When the global economy is booming and trade is healthy, shippers scramble to meet demand with more and bigger ships. But the time it takes to build them is just long enough, in many cases, for booms to end and global trade to sputter. As more and more new vessels come online, the glut exacerbates the collapse in shipping prices, the industry scales back, companies go out of business, and the process begins again…” (NPR.org, 2013). An image of a feedback loop depicts how economic conditions influence the demand for ships. As can be seen from the loop, if the world economy improves, then the desired shipping capacity increases as there is more economic activity across the global such...
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................................................................................................................................................ 3 Introduction to NNC Business Activity .......................................................................................................... 4 Backward and Forward Market .................................................................................................................... 8 The freight market .................................................................................................................................... 8 The sale and purchase market .................................................................................................................. 9 The New Building market.......................................................................................................................... 9 The demolition market ............................................................................................................................. 9 Supply and demand Functions in the shipping market .............................................................................. 10 The Demand Functions: .......................................................................................................................... 10 The Supply Functions .............................................................................................................................. 11 Freight Supply and Demand...
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...integral, if sometimes less publicly visible, part of the global economy. The marine transportation system is a network of specialized vessels, the ports they visit, and transportation infrastructure from factories to terminals to distribution centers to markets. Maritime transportation is a necessary complement to and occasional substitute for other modes of freight transportation. For many commodities and trade routes, there is no direct substitute for waterborne commerce. The Important of Maritime Transport in the Global Economy Transport is the most important link in economic relations. It is involved in creating of products and delivering it to consumers, provides the link between production and consumption, between different industries, between countries and regions. It affects the development of the economy as a consumer of metal, energy, timber, rubber and other products. More than...
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... Strategies RCC strategy is to increase the awareness and market penetration of their brands globally. Step 2 Vision We intend protect the health, safety and security of our guests and employees and protect the environment in which our vessels and organization operate. Mission Focus on cost efficiency, manage our operating expenditures and ensure adequate cash and liquidity, with the overall goal of maximizing our returns on invested capital and long-term shareholder value. Step 3 Opportunities * Construction of new mega-ships creating publicity * European Market * Increase in online booking by customers * Increase in social media popularity * Six primary cruise line brands * Asia’s large population market * Moderate growth in the U.S. economy Threats * Cruise ships are heavily regulated * Different countries have different laws and regulations * Environmental impacts of large ships * MARPOL laws and regulations * Rising fuel costs * Slow recovering world financial crisis * More efficient competitors Step 4 Critical success factor | RCC, Ltd. | Carnival | Norwegian Cruise | | Weight | Rating | Score | Rating |...
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