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In the early years of the last decade, Prime Minister Sheikh Hasina had promised to set up shipbuilding and recycling industries in Barguna and Patuakhli to develop the southern districts. More than 10 years have passed since, but the projects have seen little progress with complete realisation remaining a far cry.
The Ministry of Industries, tasked with the projects’ implementation, said it is close to finishing the projects’ feasibility studies and formulating development project proposals (DPPs) with construction works yet to begin.
Steps taken but implementation years away
One of the projects, a shipbuilding and recycling industry in Barguna, was first announced in 2011 by the prime minister. Initially, the announcement included setting up a drydock near the Payra Sea Port in Patuakhali. The Bangladesh Steel & Engineering Corporation (BSEC) under the Ministry of Industries was tasked with project’s implementation.
According to ministry sources, 105.50 acres of land has been selected for a ship recycling industry in Barguna’s Chhota Nishanbaria of Taltali Upazila. Acquisition process for the land has begun with no specific deadline.
A feasibility study titled for the ‘Environment Friendly Ship Recycling Industry at Taltali Upazila in Barguna District’ with an estimated cost of Tk 4.98 crore began in October 2018. The study project, scheduled to originally end in December 2020, has so far seen only 58.35 per cent financial and 65 per cent technical progress at the expense of Tk 2. 90 crore.
Zentech Engineering, a Korean consultancy company appointed by BSEC for the project, has submitted a final report of the feasibility study, which was sent to the Bangladesh University of Engineering and Technology (BUET) in March for review. The university sent back a revised terms of reference (ToR) to BSEC on 28 June. The corporation has now requested BUET to provide financial proposals for formulating the feasibility study and preparing a DPP as per the revised ToR.
BSEC Additional Chief Engineer (Steel & Shipbuilding Division) Abdul Malek Morol said the feasibility study of the Barguna project is almost at the final stage. Now, a DPP will be prepared for setting up the industry.
Meanwhile, Prime Minister Hasina first announced to set up a shipbuilding industry in Patuakhali’s Rangabali upazila to create employment opportunities in the district while addressing a public rally in 2012.
However, following recommendations from the Bangladesh Navy, the Payra Sea Port area was selected for the project with BSEC once again tasked to implement it. The Payra Port Authority gave a no-objection letter for the project in January 2019.
The Ministry of Industries had selected 105.05 acres of land to set up the shipbuilding and repair industry. However, a shipping ministry committee, following an inspection of the proposed site, recommended no objection to 100 acres of land. Process of acquiring the land is ongoing.
The Gentium-Damen Consortium Group, a joint venture of Dutch based Damen Group and Australia based Gentium Solutions, was appointed in 2020 to conduct a feasibility study for setting up an international standard shipbuilding factory in the port area. The study report was later evaluated by a committee formed by the Ministry of Industries.
BSEC Additional Chief Engineer Abdul Malek said the shipbuilding industry near Payra Port will be set up with the investment of two foreign companies. Its feasibility study has been completed. Now, the DPP will be formulated.
Visiting the project area last September, Zakia Sultana, secretary of the Ministry of Industry, said once the shipbuilding factory is built, it will play a major role in the country’s economy and provide employment to the local people.
The project is expected to see completion before 2033, she said.
She also said if a repairing yard is built here, ships from different countries including Europe can be repaired alongside local ones as the region does not have enough repairing yards.
According to sources, Gentium Solutions and Dutch company Damen Shipyards Group last year offered to invest $1.58 billion in the project. If realised, it will be the highest foreign direct investment in Bangladesh.
People familiar with the matter said if the investment is made, it will be possible to supply world-class ships to various companies. Above all, it will play a role in developing a reliable and competitive supply chain in Bangladesh to build ships capable of competing in the global market.
At present, 15 shipyards of the country are making an average of 250 ships every year. In addition to exports, the shipping sector is saving at least 300 million dollars by meeting local demand.
