FMC dockyard operates without NOC in Ctg

FMC Dockyard Limited, a shipbuilding and ship-repairing company based in Chattogram, has been operating its activity at the eastern bank of the Karnaphuli River for the past 11 months without renewing the No Objection Certificate (NOC) from the Department of Shipping. 

Captain Gias Uddin, principal officer of Mercantile Marine Office (MMO) under the shipping department, said few ship-building companies including FMC dockyard have been operating their activities without NOC.

“We are aware of the matter and directed the companies to renew their NOCs, but they ignored the direction which is completely against the law,” he said.

The MMO is unable to take any steps against the companies as there is no provision of legal action under existing laws in this regard, he added.

“We have sent a letter to the authority over the matter. Besides, we also cannot operate mobile courts due to a lack of magistrates. We have to bring magistrates from Dhaka for such types of drives,” he explained.

The shipyard owned by the FMC Group constructs various types of vessels including multi-purpose cargo vessels, passengers’ vessels, and boats, oil tankers, pontoons, barges, fishing trawlers, dredgers, tug boats, container vessels etc.

FMC Dockyard Limited was established in 2006 as a shipbuilding company on 65 acres of land with modern technology and heavy machinery that provided employment for a large number of marine professionals.

Sources from the shipping department said shipbuilding is an emerging industry in the country. Currently, a total of 13 shipyards have government approval, and getting NOC from the shipping department is mandatory for all these companies. But, FMC Dockyards Limited and Khan Brothers’ Shipbuilders’ Limited are yet to renew the NOCs.

On the other hand, Western Merin Shipyard Limited, Aman Shipyard Limited, Toggi Shipping & Logistics Limited, Sea Resort Shipyard Limited, Radiant Shipyard Limited, Ananda Shipyard and Slipways Limited, Meghna Shipbuilders & Dockyard Limited, MS Bhai Bhai Merin Ship Builders, Chattogram Fisheries Harbour limited, Bay-Tech Ship Builders and Delta Shipyard Limited have NOC.

Shipping department officials said that operating a shipyard and dockyard without NOC will be considered illegal. But some companies are getting benefits as there is no legal provision of a fine in this regard. The government is working to issue a fresh circular after amending the law where several issues including keeping the provision of fines, will be taken into consideration, they said.

Meanwhile, bank officials and employees of the FMC Dockyard said that the shipping industry is facing an acute crisis due to the Russia-Ukraine war just after the global pandemic of Covid-19. Currently, the dockyard does not get adequate work and is suffering from a shortage of capital.

Moreover, data from the National Bank Limited showed that the company has approximately Tk 1,500 crore in debt at present while it had Tk 1,476 crore, Tk1,217 crore, Tk1,030 crore in debt in 2021, 2020, and 2019, respectively.

The debt of the company hiked every year but its business failed to expand any further, bank officials said.

Another venture of the FMC Group, FMC Plant and Chemical Industries Limited, has been already shut down and the owner is also trying to sell the shipyard company as well due to huge amounts of loans, the company insiders said.

The owner is also not conscious and careful about the shipyard business in the country, they alleged.

The Business Post tried to contact FMC Dockyard’s Managing Director Yasin Chowdhury over cell phone over the matter but he did not receive the phone calls.