For the first time, Shipping Corp to buy two vessels using Tk900cr of its own funds

Infograph: TBS

In a strategic move to grow its presence in the shipping sector and boost government revenue income, Bangladesh Shipping Corporation (BSC) will, for the first time, purchase two new ocean-going vessels entirely with its own funds, investing approximately Tk900 crore.

With the purchase of two new ships expected by August or September this year, the state-owned ocean-going vessel company's fleet will grow to seven vessels. Officials say efforts to procure four more ships with government assistance are currently underway.

To procure the two vessels, BSC floated an international tender on 4 June, seeking expressions of interest from potential bidders, with submissions due by 16 July. The selected bidders must deliver the vessels within six months of the tender award.

BSC Managing Director Commodore Mahmudul Malek told TBS, "We have assessed various financing options and concluded that investing in ships is more viable than keeping funds in fixed deposits. We expect over a dozen international bidders to participate."

"We hope that the new bulk carriers will join our fleet by September this year," he added.

Officials said the decision to procure the two ships was made last October at the corporation's annual board of directors meeting, driven by growing demand in the global shipping industry and the aim to expand its footprint.

The two bulk carriers, each with a capacity of 55,000 to 66,000 tonnes and an estimated combined cost of Tk850 to Tk950 crore, will be procured from China. These vessels are built using equipment from Japan and European countries.

This fleet expansion comes nearly six years after the last one in 2018 and 2019, when six ships were acquired with foreign assistance under a government-to-government (G2G) agreement from China, with a total investment of around Tk1,500 crore.

Established in 1972, just months after the country's independence, Bangladesh Shipping Corporation achieved record revenue and profit in the 2023-24 fiscal year since its inception, operating its existing five ocean-going vessels amid significant hikes in chartering fares in the shipping industry.

Why purchase new vessels

BSC's fleet expansion plan aims to enhance government revenue through higher profits and support foreign currency earnings.

The project also intends to meet the country's commercial shipping demands, improve BSC's profitability, strengthen national food security, and develop maritime infrastructure in line with the "Blue Economy." 

It will further aid the government in generating significant revenue from port charges, registration, repairs, insurance, taxes, and other fees associated with ship operations.

The plan to acquire two modern bulk carrier ships will raise BSC's cargo capacity by 1.2 million tonnes annually and increase annual profits by about Tk190 crore, contributing substantial tax and dividend revenue to the government.

Overall, the state-owned corporation aims to grow its fleet capacity by over 50%, secure at least $10 million annually in foreign exchange savings and earnings, and establish a maritime logistics hub with ship repair and maintenance facilities near the port.

A journey from collapse to comeback

Established on 5 February 1972, BSC launched commercial operations just four months later with the MV Banglar Doot.

Over time, its fleet expanded to 44 ships, with 25 operating simultaneously at its peak. However, years of mismanagement and financial losses brought the corporation to the brink of bankruptcy.

By 2018, after selling off aged and unfit vessels, the fleet was reduced to just two ships. Later that year and in 2019, six new vessels were acquired with Chinese government financing worth Tk1,843 crore, raising the fleet to eight.

However, that growth faced setbacks. The MV Banglar Samriddhi was abandoned after a Russian rocket attack at Ukraine's Olvia port in March 2022, reducing the fleet to seven. Then, in October 2023, two ageing oil tankers — MT Banglar Sourav and MT Banglar Jyoti — were severely damaged in fires and subsequently scrapped for Tk 55 crore, cutting the fleet back to five ships.

Now, with the upcoming procurement of two new bulk carriers, BSC aims to rebound and expand its fleet to seven ships by the end of this year.

Officials said the move is not only a strategic investment but also a symbolic shift in BSC's operational approach — highlighting self-reliance, financial planning, and an intent to reestablish Bangladesh's presence in the global maritime trade.