Bangladesh to purchase four ships from China

The government is going to purchase four ships from China on a G-to-G basis in a bid to enhance the country’s fleet.

The four ships consist of two crude oil mother tankers with a capacity of 114,000 DWT (deadweight tonnage), while the capacity of the two mother bulk carriers is 80,000 DWT each.

The proposed purchase will be implemented by the Bangladesh Shipping Corporation (BSC) under the initiative of the Ministry of Shipping. The estimated budget is held at Tk 2715.72 crore. Out of the total amount, some Tk 2486.30 crore will be provided by the Chinese government as loan assistance while the rest of the money, which is Tk 229.42 crore, will be funded by the government to ensure purchase by 2025.

Member (secretary) of the Physical Infrastructure Department of the Planning Commission, Mohammad Emdad Ullah Mian said, “If the two ships are bought, they can transport crude oil according to their schedule and while in leisure, there will be opportunities to earn foreign currency by renting those out as international shipping liners.”

According to the BSC, procurement of vessels from selected institutions of the Chinese government has been recommended by the Cabinet Committee on Economic Affairs (CCEA). The commercial contract for the purchase proposal has already been finalised. Once the DPP is approved, the final loan agreement and the subsequent commercial contract will be signed.

The operation and maintenance of these ships will create employment for about 140 marine officers because at least 35 crew members will need to be hired annually. Besides, the country will benefit financially in both direct and indirect processes for the operation and maintenance of the ships.

Moreover, Tk 35.61 crore was initially proposed as the buyer’s supervisor fee for the project. But after an objection made by the Planning Commission, the fee was fixed at Tk 15.00 crore instead.

Besides, Tk 50.74 crore for physical contingency and Tk 77.62 crore for price contingency have been set aside.

Managing Director of BSC, Commodore Md Ziaul Haque said, “In view of the government’s Vision 2041, the amount of oil import is continuously increasing to meet the growing needs of the country. In this context, this mother vessel is being purchased for the future import of crude and refined oil at low cost and in short delays set according to the convenient schedule for the country.

“If these mother vessels are purchased, it will be possible to transfer crude oil and refined products from tankers to onshore depots through a direct pipeline from the Bay of Bengal,” he said.