Bangladesh’s private shipbuilder, “Ananda Shipyard,” is set to export a state-of-the-art, 5,500 deadweight ton (DWT) multipurpose vessel named “Wes Wire” to Turkey. The ship will be officially handed over today (September 7) to Turkey’s renowned company “NOPAC Shipping & Trading Limited.”
Industry insiders see this as a positive sign for ship exports. According to them, since Bangladesh began exporting ships in 2008, this marks a potential return to regular exports after challenges posed by the COVID-19 pandemic and other setbacks. Moreover, “Wes Wire” is the largest and most technologically advanced vessel ever exported from Bangladesh, symbolizing the country’s growing capacity in the shipbuilding sector for exports. This, they believe, will encourage more countries to source ships from Bangladesh.
The handover ceremony is expected to be attended by Brigadier General (Retd.) Dr. M Sakhawat Hussain, Adviser to the Ministry of Shipping and the Ministry of Labor and Employment. Adviser Adilur Rahman Khan from the Ministry of Industries and the Ministry of Housing & Public Works, along with Turkey’s Ambassador to Bangladesh, Ramiz Sen, are also scheduled to attend.
According to Ananda Shipyard, the country’s “largest” ship exporter, “Wes Wire” has been built with advanced design and technology of international standards. The ship measures 341 feet in length, 55 feet in width, and 25 feet in depth. It is powered by a 2,735-horsepower engine and can carry 5,500 tons of cargo at a speed of 12 knots per hour. It is suitable for transporting various types of goods, including steel coils, coal, fertilizers, food grains, and chemicals.
Earlier, in September 2022, the company exported a 6,100 DWT vessel to UK-based Enzian Shipping Company Limited, which at the time was among the largest ships ever exported from Bangladesh.
Industry insiders say that if the country’s shipbuilding industry becomes self-sufficient, it will be possible to earn $2 billion annually by catching fish in deep seas and exporting them. In addition, establishing chemical plants in deep seas could supply raw materials for pharmaceutical factories from aquatic plants and seaweeds. As a result, the country’s pharmaceutical industry would rely less on imports for raw materials, saving foreign currency.
Officials at Ananda Shipyard said the company has played a pioneering role in Bangladesh’s shipbuilding industry. To date, they have delivered more than 350 vessels to both domestic and international clients. In 2008, Ananda Shipyard made its debut as an exporter of ocean-going vessels by exporting the container ship “Stella Maris” to Denmark. Since then, ships have been exported to Germany, Norway, Mozambique, the United Kingdom, and other countries.
The company’s technical director, Dr. Nazma Nowroz, said that after the ship’s construction, all machinery tests and trials were completed. With the sea trial finished, the handover ceremony was organized to deliver the vessel to the buyer. She said, “Providing various facilities to the shipbuilding industry is not only a demand of the time but also essential for Bangladesh’s participation in multiple export sectors. The shipbuilding industry is the most important sector of the blue economy, and without its development, the blue economy cannot grow properly.”
Ananda Shipyard, which spans 900,000 square feet, has the capacity to build eight ships of up to 10,000 tons simultaneously, along with dredgers and technologically advanced vessels. Continuous operations have set a significant benchmark in Bangladesh’s shipbuilding sector, officials said.
Abdullahel Bari, Chairman of Ananda Shipyard & Slipways Limited, said, “After 2022, we have been exporting ships. The vessel going to Turkey is the largest and most technologically advanced among those exported so far.”
He added, “Under international practice, about 85 percent of a ship’s financing comes through bank guarantees. However, the remaining 15 percent, or BDT 250-300 million, came from our own funds. Arranging such a large amount is difficult because banks are often reluctant to provide it. As a result, working capital gets stuck during production, causing delays.”
He further said, “Despite the immense potential of the country’s shipbuilding sector, the lack of long-term financing at low interest rates is holding back the industry from progressing at the desired pace.”
Shipbuilding in Bangladesh: Considering the sector’s potential, Ananda Shipyard exported the modern container vessel “Stella Maris” to Denmark in 2008. This export earned Bangladesh recognition as an emerging shipbuilding nation. Over the past one and a half decades, the company has built more than 356 vessels of various types. Skilled manpower, the use of modern technology, and adherence to international standards have accelerated the sector’s growth. These include cargo ships, passenger vessels, multipurpose ice-class vessels, landing crafts, offshore patrol vessels, tugboats, fishing trawlers, bulk carriers, and container carriers. So far, various companies from the country have exported 50 vessels to Denmark, Germany, Norway, Mozambique, the UK, and other countries.
Currently, there are more than 30 large shipyards in the country, several of which directly export to the international market. In Asia’s shipbuilding industry, Bangladesh is slowly making its presence felt along with China, South Korea, and Japan. It is gaining a reputation for building medium-sized cargo ships, container vessels, tankers, and dredgers. While the primary focus has remained on meeting domestic demand, exports have grown significantly over the past decade. At present, about 90 percent of fuel, 70 percent of cargo, and 35 percent of passenger transport in Bangladesh take place via waterways. To meet this massive demand, nearly 300 shipyards of various sizes have been established.
According to the Bangladesh Investment Development Authority (BIDA), there are now more than 100 shipbuilding companies and over 120 registered shipyards in the country. Entrepreneurs operate nearly 300 active shipyards. The domestic shipbuilding market is growing at an annual rate of 10-15 percent, while exports are rising at a comparatively slower pace of 5-6 percent per year. The annual value of the local shipbuilding industry is around $1 billion. With its current capacity, Bangladesh can export about 20 vessels a year.