Shipping Corp set to repay Tk203cr to govt, seven ships in procurement pipeline 

Riding on record revenue and profit, the Bangladesh Shipping Corporation (BSC) is preparing to repay Tk203 crore, including Tk187 crore in ships procurement loans and Tk19.87 crore in dividends for the 2024-25 fiscal year.

TBS Highlights

Earlier, the state-owned ocean-going vessel management authority paid Tk475.25 crore to the government in November last year under a subsidiary loan agreement.

Commodore Mahmudul Malek, managing director of the Shipping Corporation, told The Business Standard, "It is only possible as a growing business with revenue and profitability and fleet expansion." 

The shipping corporation procured six ships from China funded by the government on the G to G basis in 2016 with the cost of Tk1,457.67 crore.

The corporation will have to repay a total of Tk2,425 crore to the government, comprising Tk1,457.67 crore in principal and Tk967.34 crore in interest calculated at a 5% rate over 13 years.

The loan will be repaid over 13 years in 26 instalments.

With the eight year grace period of loans paying the whole amount within 21 years, in October last year, the shipping corporation signed a subsidiary loan agreement with the finance division of the ministry finance amid the business expansion and swelling profit.

"Now, the corporation is able to repay the loans to the government. We will hand over the check of Tk203 crore to the government tomorrow [14 January]," said Mahmudul Malek. 

Seven new ships on process 

At present, the corporation owns five ships, bought in 2018 and 2019, operating business worldwide.

Mahmudul Malek said, another new seven ships are on pipeline to join in the fleet of the corporation making the total ships 12 on the fleet. 

To expand its fleet, the corporation bought two ships at its own costs –  one had already joined and one scheduled to join its fleet by January. 

Besides the fleet expansion, the corporation set to acquire another three ships – two ships by government funding and one its own funding.

Mahmudul Malek said, "However, there are plans to acquire another four ships from China on the G-to-G basis. After finalising the agreement, the new ships will be built for the corporation. 

In the last year, the corporation made a historic high revenue and profit in its 54 years journey. 

It made a Tk800 crore revenue and net profit of Tk306.56 crore, and it had paid a 25% cash dividend for its shareholders.