Ananda Shipyard resumes exports with 5,500-DWT vessel for Turkey

Highlights:

• Ananda Shipyard resumes exports after 2022
• The latest one, Wes Wire, is the most sophisticated
• It delivers 5,500-DWT vessel to Turkey
• Wes Wire is 341 ft long, 55 ft wide and 25 ft deep
• The export earnings were around Tk70 crore
• Since 2008, Ananda Shipyard exports 17 vessels
• Export destinations include Germany, UK, Denmark

Ananda Shipyard & Slipways Ltd has resumed its vessel exports by delivering a 5,500-deadweight-tonne (DWT) modern multipurpose vessel, Wes Wire, to Turkey, marking another milestone for Bangladesh's growing shipbuilding industry.

The vessel was formally handed over to Turkish firm NOPAC Shipping & Trading Ltd yesterday at the shipyard's Meghna Ghat facility in Sonargaon, Narayanganj. Adilur Rahman Khan, adviser to the industries ministry, attended as chief guest, alongside Bilal Belyurt, commercial counsellor at the Turkish Embassy in Dhaka.

While Ananda Shipyard did not officially disclose the export value, sources familiar with the deal told TBS that the earnings were approximately Tk70 crore.

Built to international standards, Wes Wire is equipped with advanced design and technology, according to company officials. Measuring 341 feet in length, 55 feet in breadth and 25 feet in depth, the vessel is powered by a 2,735-horsepower engine, enabling it to carry 5,500 tonnes of cargo at a speed of 12 knots. It is designed to transport a wide range of goods, including steel coils, coal, fertilisers, food grains and hazardous materials.

Earlier, in September 2022, the company exported a 6,100-DWT vessel to the UK-based Engian Shipping Company Ltd, which was one of the largest vessels exported from Bangladesh at the time.

Speaking at the handover, Adilur Rahman Khan said Bangladesh's shipbuilding law would be modernised to meet contemporary needs. "After the garment sector, shipbuilding is the most important industry. The shipbuilding industry will advance, and diversity must be brought into this sector."

Ananda Shipyard officials said the company has delivered more than 350 vessels to domestic and international clients since Bangladesh first entered the global market in 2008, when Ananda Shipyard exported the container ship Stella Maris to Denmark. Since then, 17 vessels have been supplied to Germany, Norway, Mozambique, the UK and several other countries.

Spread over 9,00,000 square feet, Ananda Shipyard has the capacity to build eight vessels of up to 10,000 DWT at a time, along with dredgers and technologically advanced vessels. With round-the-clock operations, the shipyard has set an important benchmark in Bangladesh's shipbuilding sector, officials said.

Ananda Shipyard & Slipways Ltd Chairman Abdullahhel Bari said, "After 2022, we resumed vessel exports, and the ship now going to Turkey is the largest and most technologically advanced we have sent there so far.

Sonargaon has a tradition of shipbuilding, and Ananda Shipyard has upheld that legacy. Once without guardianship, this important manufacturing sector has progressed with the cooperation of relevant ministries.

However, challenges remain in securing long-term and low-interest financing. As per international practice, about 85% of a vessel's financing comes through bank guarantees, but the remaining 15% – equivalent to Tk25-30 crore ($2.5-3 million) – must be arranged from our own funds.

Banks are often reluctant to provide this portion, causing working capital to remain tied up during production and leading to delays. With proper government support, a strong and competitive shipbuilding industry can be built, which will accelerate the country's development."

Earlier, in July this year, Western Marine Shipyard, based in Chattogram, announced the export of two tugboats to the United Arab Emirates. The 80-tonne bollard pull ASD tug "Gaya" and the 65-tonne bollard pull AHT tug "Khalid" earned the company $1.6 million in export revenue.

Shipbuilding in Bangladesh

Bangladesh has now gained recognition as an emerging shipbuilding nation in the world. Skilled manpower, use of modern technology, and adherence to international standards have accelerated the sector's growth.

Currently, the country has more than 30 large shipyards, several of which directly export vessels to international markets. Within Asia's shipbuilding industry, after China, South Korea and Japan, Bangladesh is gradually making its presence felt. The country is earning an increasing reputation in building medium-sized cargo vessels, container ships, tankers and dredgers.

Although the primary focus remains on meeting domestic demand, exports have grown significantly over the past decade. At present, about 90% of fuel, 70% of cargo and 35% of passenger transport in Bangladesh is carried out through waterways. To meet this vast demand, around 300 shipyards of different sizes have been established, but only 10 of them build export-quality vessels, employing nearly 3,00,000 workers.

According to the Bangladesh Investment Development Authority (Bida), there are currently over 100 shipbuilding companies and more than 120 registered shipyards, while entrepreneurs estimate around 300 active shipyards in the country.

The domestic ship market is growing at 10-15% annually, whereas exports are increasing at a comparatively slower pace of 5-6% per year. The country's local shipbuilding industry is valued at about $1 billion annually.

With its current capacity, Bangladesh can export around 20 vessels per year. In the international market, the country has strong potential in the segment of small vessels up to 12,000 DWT, such as multipurpose vessels, cargo feeders and passenger ferries for regional services.

In this segment, labour costs play a crucial role and Bangladesh holds a clear advantage with 20-30% lower labour costs compared to other countries.