This document discusses the potential for shipbuilding industries in Bangladesh. It begins with an introduction to shipbuilding engineering and provides a history of shipbuilding in Bangladesh. It then discusses the potentials, including the low-cost workforce, higher education opportunities, and lower effective costs compared to other countries. Prospects are also promising, as countries like Denmark, Germany and Japan have already placed orders. With government support, shipbuilding could become a major export industry. However, weaknesses like lack of capital and technology also exist and must be overcome.

1. Rahsedul Islam Sagor
ID: 14307002
Program: BSME
Dated: 29-09-14
T h e Way o f P r o s p e r i t y i n S h i p b u i l d i n g
I n d u s t r i e s… …

2. Content
1.Introduction of Shipbuilding Engineering
2.History of Shipbuilding in Bangladesh
3. Potentials of Shipbuilding in Bangladesh
4.Prospects of Shipbuilding in Bangladesh
5.Conclusion

3. 1.Introduction of Shipbuilding Engineering
 Shipbuilding Engineering also
known as Naval engineering is an
engineering discipline dealing with
the design, construction, maintenance
and operation of marine vessels and
structures.
Image 1.0-Shipbuilding
Model

4. 2.History of Shipbuilding of Bangladesh
 The history of indigenous shipbuilding in
Bangladesh goes back a long way. It began
with wooden-bodied passenger vessels having
two decks and gradually improved to steel-
body construction of multi-deck passenger
carriers in the eighties as the passenger
transportation in reverine route peaked.


 In then East Pakistan, selection of site for
Khulna Shipyard was made in 1954. A German
firm was responsible for the establishment of
the shipyard. It took three years to build the
shipyard. Work started in the shipyard in the
month of November, 1957. A British
consultancy firm was made responsible for
running the shipyard. Since 1967, the shipyard
was being run by the local engineers and staff.
Engineering equipment, pumps for irrigation,
cargo vessels for fertilizer and seed, oil tankers
and rail crossing barges were built in this
shipyard. Then it became vibrant again. The
Bangladesh Navy took over the management
of the shipyard in October, 1999.
Image-2.1

5.  Western Marine Shipyard
 Ananda Shipyard and Shipways
 Khulna Shipyard
 Western Fishers Shipyard
 DESH Shipbuilding & Engineering
Ltd.
 Dockyard and Engineering Works
Ltd, Narayanganj.
 FMC Dockyard Limited
 Khan Brothers Shipbuilding
 Three Angle Marine Limited
 Ocean Shipbuilders Limited
 Highspeed Shipbuilding
 Meghna Shipbuilders &
Dockyard Ltd
 Bashundhara Steel &
Engineering Ltd
 Dhaka Dockyard &
Engineering Works –
Dhaka, Bangladesh
 Hossain DockYard And
Engineering Works
 SouthMarine DockYard
And ShipBuilders
 Narayangonj
Engineering &
Shipbuilding Ltd
 TaraTari Shipyard
*List of Bangladeshi
Shipbuilder’s Industry
Figure-2.2

6. 3.Potentials of Shipbuilding in Bangladesh
Workforce
Bangladesh has comparatively a lower cost of
human inputs and can offer the best combination
of
cost, quality and productivity with its fast growing
young workforce. (table-1)
Table-1: Comparison of labour costs
Bangladesh 0.5
India 1.o
China 3.0
Singapore 6.0
Japan 12.0
France 13.0
Norway 14.0
Finland 15.0
Image-3.1: Working hour

7. Table-2: Comparison of Productibity
Productibity
A comparison of productibity
(table-2)shows that while China may be
well ahead of India in total
shipbuilding, its
productibity is almost same as India.
Productibity of Bangladesh workforce is
expected is very similer to that of india.
Image3.2
Countr
y
Completion
MDWT
Employess Productitbity
DWT
person/year
Japan 23.2 80,000 290
Korea 23.0 17,800 320
China 8.8 1,58000 56
India 0.6 12000 50
Banglad
esh
- - 40

8. Lower effective cost
{Table-3) speaks of the strength of Bangladesh to
grow as a shipbuilding nation in terms of
effective cost workforce.
Country Weighted labour
rate
Weighted
productibity
Weighted
average output
cost
Bangladesh 0.5 1.0 0.50
India 1.5 1.2 1.25
China 1.6 1.4 1.07
Korea 6.0 3.0 2.00
Singapore 4.0 2.0 2.00
Image3.3
Table-3: Cost of effectiveness

9. Higher level Skills
There are quite a many engineering universities
under Public and Private sector producing graduates
of various disciplines, such as, engineering, industrial
production, metallurgy, management, finance &
marketing. Bangladesh University of Engineering &
Technology (BUET), one of them, has been producing
Naval Architect and Marine Engineers since 1974.
Chittagong Marine Academy has been producing
entrant marine engineers and captains. Quite a few
universities and institutions are producing graduates
in the field of management, finance and marketing.
Indeed Bangladesh has a prestigious position
worldwide for its young white colour workforce.
As a developing country we have more potentials such as
Quality, Expatriates,Geophysical
condition,Infrastructutus,Training Institute,Linkage
industries,Forward linkage Industries,Backwards
linkage industries,Statutory quality control etc.
Image-3.4

10. 5.Prospects of Shipbuilding in Bangladesh
Shipbuilding is a
promising industry for Bangladesh. Already a few
countries have made contracts with Bangladesh
and they are placing orders on a regular basis.
Denmark, Germany, Japan have already given
orders to us and they are highly interested to
merge with this sector. Denmark embassy in
Bangladesh made a study on this sector and they said
that shipbuilding in Bangladesh is 15 % cheaper
than china! This is only possible because of the
availability of cheap labour here, and existence of
friendly environment and relax government
regulatory requirements. Definitely, all these will
make Bangladesh a prime ship builder’s country in
near futute.
Figure-5.1;Growth pattern of export
shipbuilders
0
10
20
30
40
50
60
2011 2013 2015 2017 2019 2021
Nu
mb
er
of
uni
t
shi
pya
rds
Expect growth of export
shipbuilding industries

11.  Repair Earning:
Ship recycling is defined as the activity of
complete or partially dismantling of a ship at ship
breaking yard in order to recover component and
materials
for reprocessing and reusing
27%
32%
9%
21%
11%
Bangladesh
India
Pakistan
China
Others
Data-5.2: Ship Recycling in year 2011
Image-5.2: Ship Repair

12.  Among 200 shipyards in Bangladesh there are
four companies who can make ship
maintaining international standards. Already
they did it successfully. There are a few more
companies who are preparing themselves to
make them internationally fitted. The study
put other shipyard companies in C and D
categories which means that the country has
the potential to develop backward linkage
potential industries which include ship out-
fittings, safety accessories, marine lighting,
maritime signs, symbol and posters, switch
gear, furniture, marine cables, anchor and
chain, electrical and electronic items, and
shipbuilding steel plates.
The country’s shipbuilding industry could
become the third largest foreign exchange
earner in less than ten years if everything goes
fine and the government supports and
provides with the necessary bank guaranty,
access through green channels, and declares
export-oriented shipyards as export processing
zone. The shipyards operator association
thinks that they can raise at least three percent
GDP (Fig-5.3,5.4)within the next six years if
the government ensures an encouraging
environment.
0
5
2001
2002
2003
2004
2005
2007
2008
IMF outlook 2007
Figure-5.3:GDP
Growth(percent change)
-2
-1
0
1
2
3
IMF lookout 2008
Figure-5.4:
GDP Growth(percent
change)

13. 6.Conclusion
 Weakness to overcome
*Scarcity of capital
*High manufacturing cost
*Backward in technology
*Inadequate electricity supply
* Diplomatic deficiency and poor marketing
network
* Inadequate manage pool for expanding
shipbuilding
* Lack of basic design abilities
* Procrastination in material mobilisation
* Lack of comprehensive skill development in
various shipbuilding trades
* No policy body for advising the government
on shipbuilding
* Lack of subsidy support are some of the
industry which must be over come through
proper steps
 Plan for overcoming those
Weakness:
 They have to get more orders from clients
abroad through global competition.
 In order to sustain competition the ship
manufacturers need a skilled worked force.
 Deep draft basins with acsses to the sea.
 Need reasonable infracture.
 Long term government policy support.
 Allied forward and backward linkage
industries.
 To design high quality ships we need to
establish minimum a towing tank.
 Necessity of existance of industry related
educational and training institutes