Western Marine sails aheadTwo more tugboats exported to UAE

Chattogram-based shipbuilder Western Marine Shipyard Limited (WMShL), known for constructing world-class vessels including warships and patrol craft, has exported two more high-powered, modern tugboats to a buyer in the United Arab Emirates (UAE).

The buyer, Marwan Shipping Limited, first imported a vessel from WMShL in 2017 and placed a new order in 2023 for eight more vessels worth $8.5 million. These include four landing craft, two tugboats, and two oil tankers.

Of these, the 69-metre-long landing craft “Rayan” was delivered in January this year. The two tugboats are due for delivery within this month, while the remaining five vessels will be delivered by year-end, according to company officials.

To date, approximately 50 vessels have been exported from Bangladesh, with WMShL alone contributing 36 of them to 11 countries, generating around $140 million in export revenue.

The shipyard has so far constructed around 150 vessels, including tugboats, passenger vessels, fishing boats, multipurpose vessels, cargo ships, and Ro-Ro ferries, for a range of clients including the Chattogram Port Authority.

In addition to the remaining five vessels for Marwan Shipping, WMShL is currently building a total of 16 vessels. These include two landing craft for the Bangladesh Army, seven cargo vessels for Evergreen Company, and two passenger vessels – “MV Rupsha” and “MV Shugandha” – for the Bangladesh Inland Water Transport Corporation (BIWTC).

Industry insiders noted that, due to the scrapping of a large number of vessels globally, prospects in the shipbuilding sector have significantly increased. However, despite the global market for locally produced vessels being valued at $200 billion, Bangladesh’s share remains negligible. They stressed the need for financial and policy support to help the sector earn more foreign exchange.

It is noteworthy that Bangladesh resumed vessel exports after a five-year hiatus with the delivery of the landing craft “Rayan” in January this year. The industry had faced major challenges due to a global order shortfall, the COVID-19 pandemic, and the Russia-Ukraine war.

The two high-powered tugboats – “Khalid” and “Ghaya” – with bollard-pull capacities of 65 tonnes and 80 tonnes respectively, were built under classifications by the American Bureau of Shipping and Bureau Veritas.

WMShL Managing Director (MD) Captain Sohail Hasan stated that global demand for shipbuilding is on the rise, with countries like Japan, China, Korea, Vietnam, the Philippines, Indonesia, and India striving to capitalise on the opportunities.

“We entered the industry 20 years ago. Although we are progressing, we are still lagging behind other competitors,” he remarked.

Sohail emphasised the need for supportive policies and financial incentives, along with adopting strategies that have proven successful in both developed and neighbouring countries.

“We were given a promising shipbuilding development policy a few years ago, but it has not been implemented. A special shipbuilding fund of Tk2,000 crore was allocated, with assurances that it would be increased, but unfortunately, no one has been able to access even a single taka from it due to overly complex terms and conditions,” he alleged.

“It is not viable to be profitable without building at least seven or eight vessels per year. There is also a lack of ‘country confidence’ among potential buyers. However, I recently met with the Commerce Adviser, who has been supportive,” added the MD.

WMShL Holds Press Conference to Mark Delivery

At a press conference held at Chattogram Boat Club on Thursday, WMShL highlighted its recent achievements.

The event was attended by Lt General (retd) Abdul Hafiz, special assistant to the chief adviser on defence and national solidarity development, as the chief guest.

Humaid Mohammad Abdullah Darwish Al Tamimi, chargé d’affaires at the UAE Embassy, was present as the special guest.

Ahmed A Marzuki, managing director of Marwan Shipping, also attended the event.

Speaking to journalists, Lt Gen Hafiz said Bangladesh would need to earn $2 billion to capture just 1% of the $200 billion global shipbuilding market.

“But we have only managed to earn about $200 million from exporting some 50 vessels over the past 17 years,” he said.

“To flourish, the industry requires both private and foreign investment, and the government must create an investment-friendly environment with the right policies,” he added.

“The interim government is only in place for a short time, but I believe policy improvements are underway. The sector still needs more support, which the government will seek to provide,” said Hafiz.

Founded in 2000, WMShL made its first export in 2010. The shipyard currently employs around 2,000 workers.