Ananda Shipyard exports largest ship by Bangladesh, signalling industry revival

Infograph: TBS

Ananda Shipyard and Slipways Ltd on Tuesday made history by handing over a 6,100 deadweight tonnage (dwt) oceangoing high-speed, multi-purpose container vessel to its UK buyer, Enzian Shipping Company Ltd, making it the largest ship exported by Bangladesh.

The moment was a watershed for Ananda Shipyard, making the vessel the second ship it has exported in two years following a 10-year slump beginning in 2010.

The 364 feet long, 54 feet wide and 27 feet deep ship has a 4,130 horsepower engine and can reach speeds of up to 12.5 nautical miles/hour.

At the beginning of 2020, coinciding with the Covid-19 pandemic, Ananda exported a 5,500 dwt ship. Three more ships are now awaiting export. 

Officials of Ananda Shipyard said Bangladesh's ship industry has begun to regain its footing in the global market since 2018.  

The global financial crisis of 2008 had left the once-burgeoning industry in ruin. 

Some European buyers even cancelled export orders, leaving shipbuilders staring at massive losses.

In this regard, Abdullahel Bari, chairman, Ananda Shipyard, said the firm exported a ship in 2009 and another in 2010. A German company then ordered 10 ships from them. The global crisis, however, meant the order was cancelled, leaving the company with a loss of Tk600 crore. 

On top of that, the high interest rate of bank loans has also had the sector in severe financial strains since 2010. 

But like a phoenix, the industry has begun to climb to its previous position.

Ananda Shipyard officials said an increase in demand for environmentally-friendly ships in the crucial European market has breathed new life into the industry and new orders have begun to trickle in.

Other entrepreneurs are also now eyeing the market, with fresh investments planned in the shipbuilding industry owing to its favourable environment.

The Chattogram-based shipbuilding company FMC Dockyard Ltd has also received a new work order from the Sudanese government to build ASD tugboats, with the export value of the state-of-the-art vessels set at $13 million.

Not all, however, have been as lucky. 

Western Marine Shipyard, the second biggest player in the market, has exported 33 ships to 12 countries, including the Netherlands, Denmark, Kenya, Finland, Germany, the United Arab Emirates, and India since 2008.

The company had a turnover of around Tk2,000 crore, including Tk1,400 crore in foreign currencies.

But the shipbuilder faced some obstacles – internal conflicts among directors, mismanagement, high-interest loans in the short term, and investment in long-term projects.

Despite having enormous prospects, Western Marine is now on the verge of closure owing to a lack of working capital.

Meanwhile, with the latest feather on Ananda Shipyard's cap, Bari said, "We exported the first ship from Bangladesh in 2008 with the state-of-the-art container ship 'Stella Maris' to Denmark. After that, 11 ships were exported to different countries in just two years. Now the export market is opening up again."

He said Ananda Shipyard has been building ships of an international standard at Meghnaghat in Sonargaon for more than 30 years. 

The annual production capacity of the yard is about 30 thousand tonnes. 

"We have built and supplied 356 watercraft to domestic and foreign buyers. We have the ability to do better in the export market," he said.

Bari, who is also president of the Association of Export Oriented Shipbuilding Industry of Bangladesh, said the shipbuilding industry provides TK15,000 crore to the country annually, with the figure expected to hit the Tk100,000 crore mark by 2041. 

Speaking at the handover ceremony as chief guest, State Minister for Shipping Khalid Mahmud Chowdhury said shipbuilding is a potential export sector for the country. 

"We have expertise in state-of-the-art shipbuilding. We expect this industry to earn from exports close to that of the readymade garment industry in the future."

He said despite scoring a victory in maritime disputes, Bangladesh was still unable to utilise its sea resources. 

"We are far behind in this regard. It is necessary to advance this potential sector. The government is taking various steps for it. Meanwhile, the capacity of all ports, including Chattogram, Matarbari, Mongla and Payra, is being increased."

Industry insiders said Bangladesh's shipbuilding industry is becoming an upcoming player in the global market for small and medium sea vessels. While the industry mainly caters to the domestic market, exports have been growing satisfactorily over the last decade.

In Bangladesh, almost 90% of fuels, 70% of cargo, and 35% of passengers are moved by waterways, bringing about a huge domestic demand for vessels.

Owing to steady economic and trade developments, and activated infrastructure projects, the number of locally registered vessels has increased with an average annual growth rate of 5.39%.

While the domestic market is growing at a rate of 10 to 15%, the export market has been growing at a rate of 5 to 6%.

Bangladeshi companies have exported ro-ro vessels, multipurpose container vessels, tug boats, landing craft, bulk carriers, patrol vessels, catamaran water taxis, ferries and passenger vessels to various countries in Europe, Africa and Asia.

According to the Bangladesh Investment Development Authority (BIDA), there are currently more than 100 shipbuilders and over 120 registered shipyards of varying sizes, located mostly on the river banks.

Entrepreneurs say there are about 300 large and small shipyards in the country. Of these, 10 make exportable vessels. About three lakh people are involved in the sector. 

The annual building capacity for export orders is estimated at more or less 20 vessels currently. Vessels built locally for domestic use include MPV, container, bulker, tanker, dredger, tug as well as passenger's ferry, and range from 1,000 to 20,000 dwt in size.