Dockyard industry struggles with drop in work orders
The dockyard industry, particularly the small and medium-sized enterprises that rely heavily on the passenger ship sector, is facing its most challenging period in decades.
A significant downturn in the business of passenger carriers has led to a severe decline in work orders, causing widespread financial strain across the industry.
Masud Hossain Palash, general secretary of the Bangladesh Dockyard and Shipyard Owners Association, highlighted the grim reality facing the dockyard sector.
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"There are over a hundred small and medium-sized dockyards across the country, all experiencing a significant reduction in work orders. This has resulted in choked operations and minimal income," Palash said.
The primary reason for this downturn, according to Palash, is the financial difficulties faced by passenger launch owners.
"Passenger launch owners are not interested in repairing or conducting proper maintenance works due to a lack of income. They only perform the absolutely necessary repairs," he explained.
This decrease in demand has forced dockyards to lower their service charges in an effort to ease the burden on launch owners. However, this measure has not been enough to revive the struggling sector.
Launch owners are reluctant to carry out repairs unless absolutely necessary. Many launch owners have already scrapped their carriers, leading to even less work for the dockyards.
Badiuzzaman Badal, senior vice president of the Bangladesh Inland Waterways Passenger Carrier Association, acknowledged the issue, saying that launch owners are reluctant to carry out repairs unless absolutely necessary.
The passenger ship business has drastically declined, incurring losses over the past two to three years, leading owners to keep their launches idle to avoid further losses.
"Many launch owners have already scrapped their carriers, leading to even less work for the dockyards," Badal added.
Palash highlighted the broader impact of the downturn, saying, "Without a steady stream of work, many dockyards struggle to stay afloat. This situation not only affects the dockyard owners but also the workers and their families who depend on this industry for their livelihood."
He noted that establishing a small to medium-sized dockyard requires a significant investment, estimated at Tk10-30 crore.
The situation is worsened by the fact that dockyards specialising in passenger launches cannot shift their focus to freight ships, as the freight ship business is also experiencing reduced demand.
Badal explained, "Due to the poor business conditions, around 450 passenger and freight ships have been scrapped in the last few years."
Muhtasim Tazwar Hossain, a freight ship owner, cited internal industry issues as another factor contributing to the decline.
"There is a syndicate. Freight ship owners with political power or influence get more trips, while ordinary owners get very few, making it hard to meet operational costs," Hossain said. As a result, many owners are leaving the sector, selling or scrapping their vessels.
