Bangladesh Economy

[UKBengali]

A little hope for BD shipbuilding industry.

Western Marine plans to export eight ships by 2025

After a pause of five years, shipbuilder Western Marine Shipyard Ltd is planning to export eight ships to a buyer of the United Arab Emirates (UAE) by next year.

www.thedailystar.net

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Western Marine plans to export eight ships by 2025​

A 69-metre-long landing craft named Rayan. It is one of eight vessels that shipbuilder Western Marine Shipyard Ltd is planning to export to a buyer of the UAE within the next year. Photo: Rajib Raihan
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A 69-metre-long landing craft named Rayan. It is one of eight vessels that shipbuilder Western Marine Shipyard Ltd is planning to export to a buyer of the UAE within the next year. Photo: Rajib Raihan
After a pause of five years, shipbuilder Western Marine Shipyard Ltd is planning to export eight ships to a buyer of the United Arab Emirates (UAE) by next year.


It was in January 2020 that the shipbuilder last exported two large bulk carriers to Indian Jindal Steel Works.

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It has faced a financial crunch since 2014 for a fall in the global market for shipbuilding and shipping business.

The situation had worsened for the company due to conflicts among its directors and a massive amount of debt accruing with banks and financial institutions following the Covid pandemic.


The shipbuilder is now hoping to make a comeback.

The company signed a deal worth $7.3 million in 2023 with the UAE-based buyer, Marwan Shipping Ltd, for the construction of four landing craft vessels, two tugboats and two oil tankers."

 

[LeonBlack08]

@LeonBlack08

Honestly, shipbreaking is not the industry we should aspire to be leaders of! Rather we should try for leading role in shipbuilding.

Nonetheless, it will be great if India could seize a large share of the shipbreaking business by having green ecofriendly and more importantly worker friendly shipbreaking units.

There is another thing, I wonder. I dont know why these shipbreaking locations are not developed as larger all purpose recycling units which could recycle solar waste, electronic waste etc.

Regards

I agree not the ideal business to be in. But it is an important source of cheap steel for growing economies. Probably one of the most dangerous type of work one can do to earn a livelihood. Unless you can replace the humans with robots, this is not a sector that should be pushed for growth. But that on the other hand defeats the purpose - as it is always the poorest in India and Bangladesh who take up these jobs risking their lives.

 

[Joe Shearer]

I agree not the ideal business to be in. But it is an important source of cheap steel for growing economies. Probably one of the most dangerous type of work one can do to earn a livelihood. Unless you can replace the humans with robots, this is not a sector that should be pushed for growth. But that on the other hand defeats the purpose - as it is always the poorest in India and Bangladesh who take up these jobs risking their lives.

We make this mistake every time. Every single, bloody time.

Ship-building instead of ship-breaking;
electronics chip manufacture, instead of assembly of electronic gadgetry;
fancy FMCG goods catering to the thin film of tax-paying gentry instead of food processing to save farm and orchard production values;
assembly of the best foreign car models, instead of a deep dive into public transport vehicles;
jet engines instead of stabilising and specialising in turbo-prop engine production;
aircraft carriers that are pygmy-sized and sub-optimal, instead of making wooden dhow-type/fishing vessel-type patrol vessels.

The list is almost infinite.

 

[Joe Shearer]

We make this mistake every time. Every single, bloody time.

Ship-building instead of ship-breaking;
electronics chip manufacture, instead of assembly of electronic gadgetry;
fancy FMCG goods catering to the thin film of tax-paying gentry instead of food processing to save farm and orchard production values;
assembly of the best foreign car models, instead of a deep dive into public transport vehicles;
jet engines instead of stabilising and specialising in turbo-prop engine production;
aircraft carriers that are pygmy-sized and sub-optimal, instead of making wooden dhow-type/fishing vessel-type patrol vessels.

The list is almost infinite.

Notice that this list applies very strongly to Bangladesh, and her economy. Everything mentioned above can be taken up very successfully and profitably. Also, only a government totally enmeshed in political manoeuvre would miss out on combining the hydel capacity of the CHT, with the largely under-employed Chakma work-force, and access to the sea to make an industrial power-house in the extreme east of the country.

 

[BananaRepublic]

We make this mistake every time. Every single, bloody time.

Ship-building instead of ship-breaking;
electronics chip manufacture, instead of assembly of electronic gadgetry;
fancy FMCG goods catering to the thin film of tax-paying gentry instead of food processing to save farm and orchard production values;
assembly of the best foreign car models, instead of a deep dive into public transport vehicles;
jet engines instead of stabilising and specialising in turbo-prop engine production;
aircraft carriers that are pygmy-sized and sub-optimal, instead of making wooden dhow-type/fishing vessel-type patrol vessels.

The list is almost infinite.

Bro, not a fan of food processing!

It’s not too late for South Asia to not get into this game.

Given the poverty - South Asia cannot absorb the health cost of processed food.

If you want to eat a mango - slice it up the old fashioned way. Don’t turn it into juice.

Aloo bortha instead of Potato Chips.

Then add the environmental cost of packaging!

You know my local farm shop sells stuff the old fashioned way

We take jars and fill them up.


Etc etc

 

[Joe Shearer]

Bro, not a fan of food processing!

It’s not too late for South Asia to not get into this game.

Given the poverty - South Asia cannot absorb the health cost of processed food.

If you want to eat a mango - slice it up the old fashioned way. Don’t turn it into juice.

Aloo bortha instead of Potato Chips.

Then add the environmental cost of packaging!

You know my local farm shop sells stuff the old fashioned way

We take jars and fill them up.


Etc etc

That was to take care of the enormous surplus generated with every crop everywhere, that then is unsold and rots away.

Not all mango is profitably sold, not so that the orchard-owner makes money on them, and is usually sold at throw-away prices. Converting that surplus into juice would perhaps get some value back, even if a third-party does the conversion.

So, too, with potatoes.

Your point about the environmental cost is a very good one, and India is sinking in a sea of plastic thanks to the blatant disregard of rules and regulations that is prevalent - notice the careful abstention from naming the guilty. It can be mitigated; this is not the place, but organic packaging, at not much more cost, and at drastically reduced environmental impact, is possible.

All said and done, given your strong objections, and the failure of others to come forth for or against, let us skip this one example.

 

[BananaRepublic]

That was to take care of the enormous surplus generated with every crop everywhere, that then is unsold and rots away.

Not all mango is profitably sold, not so that the orchard-owner makes money on them, and is usually sold at throw-away prices. Converting that surplus into juice would perhaps get some value back, even if a third-party does the conversion.

So, too, with potatoes.

Your point about the environmental cost is a very good one, and India is sinking in a sea of plastic thanks to the blatant disregard of rules and regulations that is prevalent - notice the careful abstention from naming the guilty. It can be mitigated; this is not the place, but organic packaging, at not much more cost, and at drastically reduced environmental impact, is possible.

All said and done, given your strong objections, and the failure of others to come forth for or against, let us skip this one example.

I think freezing is a better idea. No preservatives but packaging is still an issue.

And seeing how food is transported in India and BD - amateurish way - I would say sort out the transportation.

Also, sort out the wholesaling - most farmers harvest before lining up a buyer.

In Europe and America - stuff is sold weeks before harvest.

I am sorry but I cannot support the food processing industry.

 

[Joe Shearer]

I think freezing is a better idea. No preservatives but packaging is still an issue.

And seeing how food is transported in India and BD - amateurish way - I would say sort out the transportation.

Also, sort out the wholesaling - most farmers harvest before lining up a buyer.

In Europe and America - stuff is sold weeks before harvest.

Agree to all points made, BUT do bear in mind that a cold chair for preservation has been tried (for pharmaceuticals and medical supplies) and been found to be not always successful.

The reason for not being always successful lies in our national habit of carelessness in maintenance and operation. Our biggest enemy is jugaad, that happens when a normal procedure breaks down due to neglect, or a fairly simple vehicle is pushed beyond its natural capacity.

Wholesaling is a very difficult subject. It deserves a full post by itself, but also an expertise that I do not have in full. Let us agree to your essential point.

 

[BananaRepublic]

Agree to all points made, BUT do bear in mind that a cold chair for preservation has been tried (for pharmaceuticals and medical supplies) and been found to be not always successful.

The reason for not being always successful lies in our national habit of carelessness in maintenance and operation. Our biggest enemy is jugaad, that happens when a normal procedure breaks down due to neglect, or a fairly simple vehicle is pushed beyond its natural capacity.

Wholesaling is a very difficult subject. It deserves a full post by itself, but also an expertise that I do not have in full. Let us agree to your essential point.

I didn’t say it was going to be easy lol

Jugaad is a south Asian problem lol

 

[SoulSpokesman]

@Joe Shearer

Dada,

notice the careful abstention from naming the guilty.

You can go ahead and name the guilty. We are all friends.

On a broader front, the private sector invests in FMCGs because it is profitable to do so. If it was equally profitable to invest in food storage and processing, they would do it there too. And it is inaccurate to say that there is no investment in food storage and processing.

Regards

 

[UKBengali]

This shows the ongoing success that BD is having in slowly diversifying away from garments.

That means last calendar year garments account for only 78% of all goods exports when it used to be 85% just a decade ago.

When you take into account service exports then RMG accounts for less than 70% of all exports.

@BananaRepublic @SoulSpokesman

undefined | The Financial Express

thefinancialexpress.com.bd

RMG exports reach $38.48 billion in 2024​

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Bangladesh's readymade garment (RMG) exports hit an impressive $38.48 billion in 2024, showcasing the sector's ongoing success.

The European Union remained the largest market, accounting for 50.34% of total RMG exports, valued at $19.37 billion.

The United States followed with $7.2 billion (18.72%), while the United Kingdom contributed $4.3 billion (11.25%), Mohiuddin Rubel, former director of BGMEA, shared the data.

Germany, Spain, and France were key markets within the EU, importing $4.83 billion, $3.42 billion, and $2.14 billion worth of RMG products, respectively.

Canada also played a notable role, with exports totalling $1.24 billion and a 3.23% market share.

Beyond traditional markets, Bangladesh is making notable strides in non-traditional regions.

Exports to countries like Japan, Australia, India, Turkey, and Russia amounted to $6.33 billion, or 16.46% of total RMG exports. Japan was the top destination among these markets, with $1.12 billion in exports, followed by Australia at $831 million, India at $606 million, Turkey at $426 million, and Russia at $343 million.

This expansion into non-traditional markets is helping to diversify Bangladesh's export base and strengthen the resilience of its RMG industry on the global stage.

 

[SoulSpokesman]

@UKBengali

UKB dada,

Good to hear.

Regards

 

[UKBengali]

@UKBengali

UKB dada,

Good to hear.

Regards

Other sectors like pharma, IT and electronics are growing much faster than garments.

You are not seeing rapid change so far as garments are still such a massive part of the export basket.

In 2030, expect garment exports to be less than 50% of all exports from BD as the share of garments is falling exponentially.

Hasina/AL efforts to diversfiy exports did start to work.

 

[BananaRepublic]

This shows the ongoing success that BD is having in slowly diversifying away from garments.

That means last calendar year garments account for only 78% of all goods exports when it used to be 85% just a decade ago.

When you take into account service exports then RMG accounts for less than 70% of all exports.

@BananaRepublic @SoulSpokesman

undefined | The Financial Express

thefinancialexpress.com.bd

RMG exports reach $38.48 billion in 2024​

​

​

Bangladesh's readymade garment (RMG) exports hit an impressive $38.48 billion in 2024, showcasing the sector's ongoing success.

The European Union remained the largest market, accounting for 50.34% of total RMG exports, valued at $19.37 billion.

The United States followed with $7.2 billion (18.72%), while the United Kingdom contributed $4.3 billion (11.25%), Mohiuddin Rubel, former director of BGMEA, shared the data.

Germany, Spain, and France were key markets within the EU, importing $4.83 billion, $3.42 billion, and $2.14 billion worth of RMG products, respectively.

Canada also played a notable role, with exports totalling $1.24 billion and a 3.23% market share.

Beyond traditional markets, Bangladesh is making notable strides in non-traditional regions.

Exports to countries like Japan, Australia, India, Turkey, and Russia amounted to $6.33 billion, or 16.46% of total RMG exports. Japan was the top destination among these markets, with $1.12 billion in exports, followed by Australia at $831 million, India at $606 million, Turkey at $426 million, and Russia at $343 million.

This expansion into non-traditional markets is helping to diversify Bangladesh's export base and strengthen the resilience of its RMG industry on the global stage.

Yep! And absolute value of garments keeps going up!

Hope IG isn’t going to meddle with “under invoicing” - the Google and Amazon way of evading tax.

Any heavy handed behaviour will drive foreign investment away.

Under Hasina a lot of Pak and Indians moved their production to BD.

We don’t want them going back.

 

[SoulSpokesman]

@BananaRepublic

Kola bhai,

Under Hasina a lot of Pak and Indians moved their production to BD. We don’t want them going back.

But we do want them back. IND part that is, OK with ex Pak part of the garment business stays with you

Regards