Shipping Industry

Shipping Industry

Shipping Industry

Bangladesh is known mostly as a ship-breaking nation, with dozens of ageing container vessels heading towards its southern coast for scrap. Ship-breaking activities in Bangladesh are concentrated in Sitakund, just north of Chittagong city on the Bay of Bengal. It is of paramount importance to the macro and micro economies of poverty stricken Bangladesh. Ship-breaking activities present both challenges and opportunities for the coastal zone management. Meeting the increasing demand for raw materials such as steel needs to be balanced with the negative impact this activity is having on our coastal environment and the conditions of the workers. In recent years, Bangladesh has emerged as a ship-building country. Ship-building yards in Bangladesh are now exporting small and medium-sized ships for the highly competitive European market. Bangladesh has distinct advantage in ship-building because the labour is cheap and the country possesses a very efficient and educated pool of engineers and technicians for ship-building. The Government of Bangladesh is playing a very proactive role for promotion of ship-building. The Government has declared ship-building as a thrust sector. This implies that all necessary support for growth of this sector is extended by the government and necessary policy support is in place. Import for building shipyards for ships for foreign buyers are free from import duty. The Government has allowed Green Channel for all imports required for building ships on foreign orders. This means all imports directly go to the yard from the port and the customer inspection is carried out in the yard. All materials and machinery required for building ships on foreign orders are exempted from import duty.