Chittagong discouraging shipbuilding

Chittagong Port Authority (CPA) has said it would allow shipbuilding yards in the upstream of the Karnaphuli river. But shipbuilders say CPA’s policy would ‘stunt’ the growth of the emerging industry.

CPA chairman RU Ahmed said the Authority has drafted a policy to pave the way for establishing ship building yards in the Karnaphuli’s upstream after they received applications from some top Chittagong conglomerates. “The policy is now with the shipping ministry. We will permit companies to set up shipbuilding yards and slipways once the ministry gives its final approval,” Ahmed said.

The chairman said the port would not approve any applications seeking to set up yards in the downstream where the port, which handles 90% of the country’s foreign trade, is located. “There are key government installations like port, power plants, fertiliser factories near the port. We won’t allow any shipbuilding yards here due to concern over security, siltation and navigability,” he said.

But as the shipping ministry is giving final touches to the policy, a leading shipbuilder who took part in some of the meetings came down hard on the proposed government move. “I’ve seen the policy prepared by the CPA and all I can say is that it won’t make anyone interested to build shipyards in Karnaphuli’s upstream,” he said.

He accused the CPA of deliberately “stunting” the growth of the fledgling industry as he notes establishing yards and slipways in the upstream “won’t be feasible or be used for making big and medium sized ships. Some 10-12 companies have applied to build shipbuilding yards in the opposite side of the port. They are ready to spend $500 million to fast-track the growth of the industry,” he said.

“We will never become a big player in shipbuilding if we cannot utilise the large area in the Karnaphuli’s downstream, the best possible site to build ship in Bangladesh.

Nearly a dozen top companies including some of Chittagong-based conglomerates have since joined the fray, buying land along the banks of the rivers Meghna and the Karnaphuli to build shipyard facilities.

Experts said Bangladesh with its huge pool of cheap welders, a history in launch-making and a network of rivers are perfectly placed to emerge as a top shipbuilders, after South Korea, Japan, China and Vietnam. CF Zaman, the Bangladesh head of GL, says the downstream banks of the Karnaphuli is the best place for shipbuilding with deep draught and the vicinity to the port.