Shipping corp to expand its fleet with 6 new container ships
16 more ships to join by 2030
- Total cost of the project Tk3,836.83cr
- 92% cost will be financed through external debt
- The 6 new ships to transport 6 lakh TEUs annually
As part of expanding its container ship fleet, Bangladesh Shipping Corporation (BSC) has initiated the process of purchasing six modern container ships from South Korea in the next two to three years.
With these six container ships, BSC plans to add 16 additional ships to its fleet by 2030, a move expected to bring a revolutionary change to the country's maritime trade sector, according to shipping experts.
According to the corporation, while BSC has operated oil and bulk cargo vessels, it currently has no container ships in its fleet. The addition of six new container vessels will mark a significant development for the state-run institution in maritime cargo transport.
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Commodore Mahmudul Malek, managing director of BSC, told The Business Standard, "Six container ships are being procured at a cost of Tk3,800 crore from two shipyards in Korea. South Korea's EXIM Bank will provide a Tk3,500 crore loan for the project, while the remaining Tk300 crore will be funded by the Bangladesh government."
He added, "If everything goes as planned, these vessels are expected to join BSC's fleet by 2027 or 2028. The new ships will have a capacity of 2,500 to 2,800 TEUs (twenty-foot equivalent units) with a draft of approximately 9.8 meters.
"If everything goes as planned, these vessels are expected to join BSC's fleet by 2027 or 2028. The new ships will have a capacity of 2,500 to 2,800 TEUs with a draft of approximately 9.8 metres"
"These six new container ships will operate between Chattogram Port and transshipment ports. According to the plan, the ships will run on routes to Singapore, Malaysia's Port Klang, and Tanjung Pelepas. Also, they may also be used for chartering on international routes."
The shipping corporation expects these vessels to transport around 6 lakh TEUs of containerised cargo annually, saving significant foreign currency.
Revenue and operating costs
According to the project proposal, the estimated annual income from these six vessels is Tk2,261.15 crore, while the annual operating cost will be Tk1,215.11 crore.
The total cost of the project, including bank charges, vessel registration, buyer's surveyor's fees, tax, VAT, and logistics, is estimated at Tk3,836.83 crore ($358.58 million), with about 92% of the cost being financed through external debt.
The BSC managing director also said, "In addition to the six container ships, BSC plans to acquire 16 more vessels by 2030, including bulk carriers and other types of ships. Discussions are ongoing with China and Korea regarding the procurement of these vessels."
For the fiscal year 2023-24, the corporation reported a record profit of Tk250 crore, its highest in 53 years.
Industry insiders say BSC's efforts will expand the scope of the country's maritime trade and strengthen Bangladesh's position in the global shipping market.
Speaking to The Business Standard, Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, said, "The plan to add new ships to BSC's fleet is promising. However, it is crucial to ensure that the plan is implemented quickly and effectively. The addition of new vessels will help earn foreign currency for Bangladesh, which will benefit the country's economy."
Fleet history and current situation
"Before 2018, BSC's fleet only included two lighter ships used for transporting oil from Chattogram Port's outer anchorage to Eastern Refinery's jetty. However, after the addition of six new oil tankers and bulk carriers in 2018 and 2019, the fleet grew to eight ships," Syed Mohammad Arif added.
When the Russia-Ukraine war began, BSC's vessel "Banglar Samriddhi" was destroyed in a missile attack at the Ukrainian Port of Olvia, resulting in the death of a crew member.
Recently, two older lighter ships in BSC's fleet were damaged by a fire and sold for scrap. As of now, BSC's fleet consists of just five ships, increasing the need for new acquisitions.
BSC introduced container feeder services on the Chattogram-Singapore route in 1993 with three ships named Banglar Rabi, Banglar Moni, and Banglar Shikha. Now, Bangladesh has 103 ocean-going vessels in operation, both government and private.
