Shipping Corp embarks on fleet expansion with 21 new vessels

Infograph: TBS

In a move to cater to the escalating demands of the shipping industry, the Bangladesh Shipping Corporation, a state-owned entity overseeing the management of ocean-going vessels, has unveiled an ambitious plan to expand its fleet by adding 21 new ships.

The expansion starts with the acquisition of four new vessels from China under a G2G loan agreement, with an estimated cost of Tk2,500 crore.

The corporation has already signed a formal agreement with the China National Machinery Import and Export Corporation (CMC), a prominent Chinese international engineering contractor and subsidiary of the China General Technology Group.

The procurement of the remaining vessels will be phased in over time. The exact timeframe for the acquisition of these ships is yet to be determined, as it hinges on governmental decisions regarding the project.

Officials from the corporation emphasised the substantial investment required to acquire these new vessels. Several projects have been outlined to procure ships for fleet expansion, but the final investment figures are yet to be finalised.

In line with the expansion plans, the corporation intends to purchase two oil tankers specifically designed for transporting jet fuel and diesel. Recognising the absence of container-transporting vessels in its current fleet, the corporation has also decided to acquire 12 cellular vessels under two separate projects.

Furthermore, considering the impending introduction of feeder services among Bimstec member countries, including Sri Lanka, the corporation has resolved to procure an additional four cellular container ships.

The funding for these new vessels will primarily come from loans, with a portion of the financing sourced from the corporation's own resources.

Khalid Mahmud Chowdhury, state minister for shipping and chairman of the corporation, highlighted its recent fleet expansion, which saw the addition of six new ships in fiscal 2018-19, with an additional four ships currently in the pipeline.

"This expansion is an integral part of our strategic plan, made possible by an enhanced financial capacity that allows us to independently acquire ships. The corporation is poised to strengthen its fleet with a total of 21 ships across various categories," he added.

Speaking at the corporation's annual general meeting held at a Chattogram hotel on Thursday, the state minister emphasised that the growing fleet would be prioritised for transporting government-funded goods, both for imports and exports.

He underscored the corporation's pivotal role in serving national interests as a government entity. Transcending its commercial activities, the corporation operates on unprofitable routes to ensure essential services for the country, demonstrating its commitment to both economic and strategic objectives.

Currently, the Shipping Corporation operates a fleet of seven ships, including lighterage tanker ships dedicated to transporting oil for the Petroleum Corporation and five ships operating on a charter basis for carrying oil, chemicals, and other products.

Mohammad Ashraful Amin, deputy secretary and general manager of the Shipping Corporation, told The Business Standard, "With the existing seven ships, the Corporation's fleet will increase to 28 ships. Four new ships – two crude oil, and two mother bulk carrier – will be added very soon.

"At present, the Shipping Corporation's business has been growing, and making decent profit. But there is huge opportunity to expand business. So, the management has decided to procure more ships. When the procurements are done, the business and profitability will grow more."