Despite high aims, ship exports lag behind
Business Report :
Bangladesh’s ambitious goal of transforming its shipbuilding sector into a $4 billion export industry by 2026 is facing scepticism from experts, who warn the target may be overly optimistic.
The Shipbuilding Industry Development Policy 2021 aims to position the country as a major global player in ship exports.
However, Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI), described the target as “unrealistic” and suggested a more attainable milestone of $1 billion in exports over the next three to five years.
Capturing just 1 percent of the $115 billion global market for small and medium-sized vessels, he said, could bring Bangladesh to that level.
Zaidi Sattar said that Bangladesh is less competitive in the large shipbuilding market. This global market is dominated by China, Korea, and Japan.
“If Bangladesh can capture 1 percent of the small and medium ship market by 2027, the sector will generate $1 billion.
Currently, Bangladesh has an annual construction capacity of about 20 ships. Zaidi also said, “80 percent of the world’s trade is carried out by sea.”
Sattar made the remarks at a seminar on “Shipbuilding Industry and Ship Exports: Pushing the Frontiers of Export Diversification”, hosted by the International Business Forum of Bangladesh (IBFB) at the InterContinental Dhaka.
He stressed that with stronger financing and consistent policies, shipbuilding could become the country’s next frontier for export growth.
Despite its potential, the sector faces significant challenges, including limited long-term financing, high costs due to weak local supply chains, and restricted access to advanced design and engineering technologies.
Global shocks such as the Covid-19 pandemic have also slowed growth. While the 2021 policy promised cash incentives, tax breaks, and low-interest loans, implementation has been uneven.
Signs of recovery, however, are emerging. After exports fell to just $0.2 million in 2021-22, the industry is beginning to rebound. Since 2008, Bangladesh has exported over 50 ships worth $143 million.
Recent orders include a $47 million green vessel deal by Karnafuly Ship Builders from the Netherlands, ship deliveries to Turkey and the UK by Ananda Shipyard, and an eight-vessel contract with the UAE by Western Marine.
The current export order book stands at $100 million, with an additional $200 million in the pipeline. Sattar noted that achieving $100 million in annual exports could potentially double sector employment to 100,000 jobs.
He also highlighted the sector’s shift towards greener ships, including methanol-fuelled vessels, to meet international standards.
Industries Adviser Adilur Rahman Khan said Bangladesh has already gained recognition for meeting global standards and emphasised the need for stronger policy implementation.
Anisuzzaman Chowdhury, special assistant to the Chief Adviser, urged investors to harness domestic capacity, warning that remittances alone cannot sustain economic growth. “No economy gains dynamism from remittances alone,” he said.
