The Current Status and Future of Shipbuilding Industry in Bangladesh

4838 Words May 3rd, 2013 20 Pages
Assignment 4
THE CURRENT STATUS AND FUTURE OF SHIPBUILDING INDUSTRY IN BANGLADESH

Prepared for:
Shawkat Kamal
Course instructor, Portfolio Management & Investment Analysis

Prepared by:
MD. FERDOUS KABIR
ID No.: 140
Batch: 46D
MBA Program
INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF DHAKA kabir_ferdous@yahoo.com April 1, 2013

INTRODUCTION:
Bangladesh is a maritime nation with 1,66,000 sq. km area of sea, abundance with living and non-living resources. There are more than 200 rivers all around the country, with a total length of about 22,155 km, which occupy about 11% of total area of the country. Here rivers and water transports play a vital role for economical and commercial activities in Bangladesh. Major
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On the other hand, as per recent statistics and world shipbuilding trend, the sea borne cargo growth was increasing 6-8% per year and demand of new shipbuilding was increasing at the rate of 3-4% per year. But the existing ship building industries are not in a position to handle this additional pressure. At the same time traditional ship building nations are burdened and as the rate of demand is increasing day by day, they have become selective in building new ships. They are not interested to build small ships of 25,000 DWT(Deadweight of Ship in Tons) or less. So the ship owners, who are interested to build small ships of less than 25,000 DWT had to look for alternative markets. This is the reason that is allowing other nations like Bangladesh, Vietnam, Indonesia, Pakistan and India to break through the ship building industry. It is expected that this increasing rate of ship building trend will continue another era, although recession has bit slowed down the scenario. Considering the world market and internal market, it is assumed that Bangladesh has a bright future to elevate herself as a shipbuilding nation in the world market and surely that factor should encourage more Bangladeshi entrepreneurs to come forward in this business.

HISTORY OF SHIPBUILDING IN BANGLADESH:
Bangladesh is traditionally a sea fairing nation and has a rich heritage of timber shipbuilding of many hundred

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