BSC plans to re-enter container shipping after over a decade

Highlights: 

• BSC is negotiating with a Korean shipbuilder for up to six container vessels
• The project is worth $330.32m, with vessels holding 2,500-2,800 TEUs
• Vessels will operate between Chattogram and regional/international ports
• BSC will be the 2nd Bangladeshi company in container shipping, after HR Lines Limited
• A feasibility study is funded by South Korea's Economic Development Cooperation Fund
• The Export-Import Bank of Korea will finance 90% of the project
• BSC plans to expand its fleet by 16 vessels by 2030

The Bangladesh Shipping Corporation (BSC), the state-run shipowner, is set to re-enter the container shipping sector after more than a decade. 

The company is currently in discussions with a South Korean shipbuilder to order up to six vessels, with an estimated cost of $330.32 million (approximately Tk3,836 crore).

The vessels will have a capacity of 2,500-2,800 twenty-foot equivalent units (TEUs), with a draught of around 9.8m. These ships will primarily operate between Chattogram and other transshipment ports, with potential routes to regional destinations like Singapore, Malaysia's Port Klang, and Tanjung Pelepas, as well as on international charter routes. 

Upon adding these vessels, BSC will become the second Bangladeshi company to enter the container shipping market in recent years, following HR Lines Limited.

BSC has signed a concept paper with South Korea's Economic Development Cooperation Fund to conduct a feasibility study for the project. The Export-Import Bank of Korea will finance 90% of the project, while the Bangladesh government will provide the remaining funds.

Daesun Shipbuilding & Engineering and HD Hyundai Heavy Industries are linked to the project. According to the proposal, the six vessels are expected to generate an annual income of Tk2,261.15 crore, with operating costs estimated at Tk1,215.11 crore.

"This project is part of a broader shipbuilding plan that includes acquiring 16 more vessels by 2030, such as bulk carriers and other types of ships," BSC Managing Director Commodore Mahmudul Malek told The Business Standard. "We are in discussions with China and South Korea regarding the procurement of these vessels."

"If everything goes as planned, six vessels will be ready for delivery in 2027 and 2028," he added.

Captain Jamal Hosen Talukder, general manager (operation) of BSC, said, "We have already received approval from the Planning Commission to purchase the vessels. The feasibility study is due now."

"The last container carrier vessel we had was MV Banglar Shikha, which was sold as scrap in 2015. Once these vessels are added to our fleet, we will have a container carrier after over a decade," he added.

Meanwhile, BSC reported a 41.88% increase in its half-yearly profit, fuelled by rising freight rates in the international shipping sector. 

According to the corporation's unaudited financial statements, its revenue grew by 31% to Tk297 crore as of December 2024. Its net profit for the first half of the 2024-25 fiscal year surged to Tk142.62 crore, up from Tk100.46 crore in the same period the previous year.

Established in 1972, BSC recorded a profit of Tk249 crore in the 2023-24 fiscal year, the highest in its 52-year history. The corporation once operated a fleet of 44 vessels, but due to mismanagement and poor planning, the fleet has shrunk to just five vessels. 

Recently, BSC sold two fire-damaged ships, Banglar Jyoti and Banglar Shourabh, for Tk46 crore after 37 years of service, generating a combined revenue of Tk1,536 crore.