Uncared for, Shipping Corp fleet dwindles to almost nothing
Initially boasting 44 ships, the BSC’s numbers dwindled to just two by 2018. While six new vessels were added in 2019, the fleet has remained static for the past five years
Despite rapid growth in Bangladesh's private shipping sector, the state-owned Bangladesh Shipping Corporation (BSC) has seen a steady decline in its fleet capacity over the years mainly in the absence of proper maintenance.
Initially boasting 44 ships, the BSC's numbers dwindled to just two by 2018. While six new vessels were added in 2019, the fleet has remained static for the past five years.
In 2022, the vessel Banglar Samriddhi was abandoned following a rocket attack at the Port of Olvia in Ukraine.
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Recently, on 30 September, the lighter vessel MT Banglar Jyoti was severely damaged in an explosion and fire at Chattogram port, resulting in three fatalities.
Concerns were raised over whether this 37-year-old ship could be reintegrated into the fleet. Another vessel, MT Banglar Shourabh, also aged 37, has raised safety questions regarding oil transportation following the Banglar Jyoti incident.
Industry insiders say the private sector in Bangladesh's shipping industry has advanced considerably.
Since 2018, the number of Bangladeshi ocean-going vessels has surged by 79. Before 2018, there were only 23 Bangladeshi-flagged vessels.
The enactment of the Bangladesh Flag Vessels (Protection of Interest) Act, 2019, has spurred private investment, resulting in the number of ocean-going vessels surpassing 100 by 2024.
Captain Sabbir Mahmud, principal officer at the Chattogram Mercantile Marine Office, said that 102 registered Bangladeshi-flagged ocean-going vessels are currently active, with two more awaiting registration.
Stakeholders in the shipping industry estimate that the market for transporting Bangladeshi import and export goods by sea is valued at nearly $500 million, with the majority benefiting foreign ship owners.
At the annual general meetings of the Shipping Corporation, officials from the Ministry of Shipping routinely announce plans to purchase new ships. In the past two meetings, plans were revealed to add 20 more vessels, including bulk containers and container carriers, by 2030.
With various mega-projects underway around the ports, such as the Matarbari Deep-Sea Port and the Bay Terminal, stakeholders assert that the Corporation must expand its fleet swiftly to enhance foreign currency earnings and create job opportunities in the sector.
Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, said, "Private investment in Bangladesh's global shipping industry has increased in recent years, but the Shipping Corporation has not made similar progress. We hope the Corporation implements its plans for purchasing new ships on time."
Shipping Corporation stops using the two ageing ships for oil transport
The Bangladesh Petroleum Corporation (BPC) has classified the damaged MT Banglar Jyoti and MT Banglar Shourabh as risky vessels.
A seven-member investigation committee, led by Md Sharif Hasnat, managing director of Eastern Refinery Ltd, reported that both ships, built in 1987, have reached the end of their operational lifespan.
In response, the Bangladesh Shipping Corporation has decided to stop using the 37-year-old MT Banglar Jyoti and MT Banglar Shourabh for oil transport, deeming them unsafe. Until new ships are purchased, BSC will rely on chartered vessels for transporting BPC's crude oil.
Bangladesh Shipping Corporation Managing Director Commodore Mahmudul Malek told TBS, "Bureaucratic complications and political instability are the main reasons hindering the recovery of the industry's poor situation.
"The discontinuation of oil transport using MT Banglar Jyoti and MT Banglar Shourabh is under active consideration. While Shipping Corporations acquires new vessels, we will use chartered ships for crude oil transport," he said.
Due to the lack of alternative vessels in the country, these ageing ships had previously been kept operational through diligent maintenance, he added.
The investigation committee recommended that BSC urgently establish a Single Point Mooring system with a double pipeline to handle crude oil unloading. It also advised forming a technical committee to assess the suitability of the remaining lighter vessels.
BPC faces potential delays and costs
The Bangladesh Petroleum Corporation's oil unloading operations are currently at risk due to a shortage of vessels.
According to the corporation, mother vessels carrying imported crude oil anchor in the Kutubdia Outer Anchorage area, where each vessel holds at least 100,000 tonnes of oil but cannot access Chattogram port due to shallow depths.
Lighter vessels, such as MT Banglar Jyoti and MT Banglar Shourabh, transport oil from Kutubdia to the Dolphin Oil Jetty of Eastern Refinery.
Currently, oil unloading operations are being carried out using MT Banglar Shourabh, resulting in potential delays. The BPC faces an estimated daily cost of over $20,000 in additional hire charges for the vessel.
Speaking to TBS, Kabir Mahmud, director (Marketing) of the BPC, said, "We are conducting oil unloading with one lighter vessel. It is uncertain whether the damaged vessel can be repaired. If it is not operational, we will discuss chartering another vessel with the BSC."
