DHAKA, Jan 14, 2020 (BSS) – Bangladesh Steel and Engineering Corporation (BSEC) today inked a Memorandum of Understanding (MoU) with the Gentium-Damen Consortium Group, a joint venture of Dutch-based Damen Group and Australia-based Gentium Solutions, to construct a new world class shipyard at Char Nissanbaria and Madhyopara Mouza near the Payra port in Patuakhali district.
Industries Minister Nurul Majid Mahmud Humayun attended the MoU signing ceremony function as the chief guest at the Industries Ministry conference room in the city with Industries Secretary Abdul Halim in the chair.
Secretary of the BSEC Engineer Md Abul Khayer Sardar and Area Director for Asia Pacific of the Dutch Conglomerates Damen Group Roland Briene and Co-Chairman of the Gentium Solutions Group (Australia) Ikthedar Hassan Murad signed the MoU on behalf of their respective sides.
Speaking at the function, Nurul Majid Mahmud Humayun said the growing shipbuilding industry of the country has a huge potential as demand from both the domestic and the international market is increasing faster than ever before.
“Export earnings from the thriving shipbuilding industry of Bangladesh have been growing day by day. Bangladesh exported ships and other floating structures to Denmark, Germany, Ecuador, Finland, Tanzania, New Zealand, Gambia, Dubai, Uganda, Kenya, India, Pakistan, Mozambique and the Maldives,” he added.
The minister said Business Wire, a global economic data analysis agency, has estimated that around US$650.83 billion will be spent across the world for procurement of new ships by the year 2026 and the focus will be on building environment-friendly ships.
Meanwhile, he said, the markets for small ocean-faring vessels would grow to $400 billion annually.
Industry experts are optimistic that Bangladesh could achieve at least 1 percent of the shipbuilding market share, worth $4 billion annually, he added.
Humayun hoped that the venture will strengthen the capacity of Bangladesh to produce more sophisticated ships in the coming years.
He said the construction and operation of the proposed Shipbuilding Facility will assist in addressing the current problems associated with the capacity of the Bangladesh shipping industry to construct and supply enough vessels to meet current and future market requirements in order to achieve our Vision 2041 and Delta Plan 2100.
Abdul Halim said Bangladesh is a riverine country and around 230 rivers are currently flowing across the country and 6,000 kilometres are accessible for movement of modern mechanized vessels during the monsoon season and out of this, some 3,800 kilometres are navigable around the year.
So, there is a huge demand for big and small ships and vessel in the country, he added.
He believed that this event will create facilities to introduce and transfer of cutting-edge industry knowledge and expertise to Bangladesh and provide strong employment for the region.