Bangladesh to become carmaker

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

The plant will also manufacture cars to be branded locally.

If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.

Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed it as a good sign for Bangladesh amid a sluggish foreign investment flow.

Cimillae Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate the investment implementation.

Abdul Mannan, managing director of Cimillae Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The company has already acquired land at Bhairab in Narsingdi for the plant.

Mannan said the plant will require two years to be set up. As many as 15,000 jobs will be created to run the car manufacturing plant.

CCGI Chairman Lee Young Choung said his company has already decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has plans to invest in 30 sectors in future.

Presently Japanese reconditioned cars dominate the Bangladesh market. Around 20,000 used cars are imported each year, while the number is 2,000 for brand new cars.

Some brand new carmakers like Ford have already initiated move to enhance their presence in Bangladesh.

Japanese Toyota still leads the market in both used and brand new car segments.

S: The Daily Star

10 more TV stations from Bangladesh

The information ministry has given provisional approval to launch 10 more private TV stations, a top government official told bdnews24.com on Monday.

The government has started giving them no-objection letters for getting on air, added the official, who spoke on condition of anonymity.

The approvals are first since the coalition government headed by Awami League took office in Jan 6 this year.

Another decision has been made to launch a terrestrial channel to air the parliament sessions, the senior official added.

The channels are Ekattur Television of Mozammel Huq Babu, Bijoy TV of Chittagong mayor A B M Mohiuddin Chowdhury, GTV owned by Gazi Golam Ashriar, Channel 9 of Syeda Mahbuba Akhter, Somoyer Television of Ahmed Zubair, Independent Television of Beximco Group, Machhranga Television owned by Anjan Chowdhury, ATN News of Mahfuzur Rahman, Mohona TV of Kamal Ahmed Majumder and My TV of Nasir Uddin.

Eleven private channels are already in operating other than the two run by the government–BTV and BTV World.

S; BDnew24.com

PM wants no more delay in Ruppoor N-power plant work

The prime minister, Sheikh Hasina, on Monday asked the science and information and communication technology ministry to complete negotiations with the countries willing to set up the Ruppoor nuclear power plant in order to start work on the proposed project without delay.
She made the directive at a regular cabinet meeting, where the science and ICT ministry officials submitted a report of a Bangladesh delegation which had attended the 53rd general assembly of the International Atomic Energy Agency in Vienna in September 14-18.
Science and information technology secretary led the team to the IAEA assembly.
Sources present at the meeting said that Hasina had instructed the officials to complete negotiations with the countries interested in setting up the nuclear power plant.
A number of countries, including Russia, China, France and South Korea have expressed interest in recent times in installing the power plant, conceived nearly five decades ago.
The prime minister’s press secretary, Abul Kalam Azad said that the six-member Bangladesh delegation that had attended the general assembly of the IAEA, submitted its report to the cabinet.
In its report, the team said that Austria had offered to assist Bangladesh in construction of the Ruppur atomic power plant and that there was a chance for the scientists of the country to work in Austria.
‘Negotiation with Russia has made some progress and it has assured us of better management of the nuclear waste. But which country will be engaged in installation of the plant has not yet been finalised. The prime minister wants that work on the project starts immediately,’ said a minister present at the meeting.
The government hopes to get 1,100 megawatts of power from nuclear reactors by 2015 to meet the growing demands, though the work is yet to get desired pace.

http://www.newagebd.com/

Duty-free access of Bangladeshi products to US market discussed

US Ambassador to Bangladesh James F Moriarty yesterday lauded the able and prudent leadership of Prime Minister Sheikh Hasina at the recently concluded 64th United Nations General Assembly (UNGA) session.

The appreciation came when the US Ambassador called on Prime Minister Sheikh Hasina at the latter’s office.

Moriarty said that the Bangladeshi premier’s participation at the UNGA and her speech on various crucial issues like climate change, food security, world economic recession and terrorism were highly acclaimed by the world leaders.

“Sheikh Hasina’s visit to the USA to attend the recently concluded UNGA session was fruitful as she had very successful interactions with world leaders, including President Barack Obama on various crucial issues which the present world is confronting with,” said James Moriarty.

After the meeting, Prime Minister’s Press Secretary Abul Kalam Azad briefed newsmen.

During the meeting, they discussed various issues including duty and quota free access to Bangladeshi products to US market, US investment to Bangladesh, food security, anti-terrorism activities and reopening of Dhaka-New York Biman flight.

In reply, the prime minister told the US envoy that she had fruitful talks with US President Barack Obama, Michelle Obama, Secretary of State Hillary Clinton and UN Secretary General Ban Ki-Moon on the sidelines of the UNGA session.

During the talks, she said that she had invited the US president and his wife to visit Bangladesh and they gladly accepted the invitation.

She said during the meeting with President Obama and leaders of UN Peace Keeping Contributing Countries in New York, matters of Bangladesh’s representation in UN peace keeping building and policy making levels as well as appointment of Bangladeshi officials at senior posts of the mission were discussed.

Besides, the Prime Minister sought US cooperation in fulfilling needs and problems of expatriate Bangladeshis in the USA.

Referring to Bangladesh’s existing political situation, the prime minister said the opposition should join the parliament session to speak for the people to fulfill their needs and problems.

“The opposition should join the current session of the Jatiya Sangsad to strengthen the parliamentary democratic system in Bangladesh and speak for their own people,” she added.

During the meeting, the prime minister expressed her satisfaction over the joining of Patrick Kennedy, son of former senator Edward Kennedy, in the Congressional Bangladesh Caucus in the US House of Representative saying that her family had relations with Kennedy’s family.

About bilateral relations, they said that excellent bilateral relations is existing between Bangladesh and the USA and expressed the hope that the relations would be further expedited in the days to come.

Principal Secretary to the Prime Minister MA Karim and Prime Minister’s Press Secretary Abul Kalam Azad were present on the occasion.

S: http://www.thedailystar.net

Govt to assist Bangladesh ship builders assured

Shipping minister Shajahan Khan yesterday said that the government was ready to give full logistic support to shipbuilders to ensure that the industry flourished considering its export potential.

The government had already taken some initiatives to help the shipbuilding sector, he said while addressing a seminar as chief guest on the ‘National Shipbuilding Conference’ held at the Pan Pacific, Sonargaon Hotel yesterday.

The event is organised by the Bangladesh Foreign Trade Institute (BFTI), a non-profit research and training institution built on the concept of public-private partnership.

It is one of the four components of the Bangladesh Trade Support Programme (BTSP).

The conference marks the end of the BTSP, which has been funded by the European Union over the past four years to the order of 7.8 million Euros, and has been implemented by the Ministry of Commerce of Bangladesh.

The shipping minister was happy that the shipbuilders had already exported some quality ships to a foreign country.

“Thousands of locally built ships ply its inland waters. The country has a history of supplying ocean-faring vessels to European countries. It is also a great opportunity for us,” the minister added.

The appearance of clear signs that the world economy was on the road to recovery will provide challenging opportunities for the Bangladesh shipbuilding industry to make its mark, but the key to achieving success lies in preparing today,” he said.

Professor M A Taslim, CEO, BFTI, welcomed the guests. Stefan Frowein, Head of the European Commission delegates to Bangladesh and Einar Hebogaard Jensen, Danish Ambassador to Bangladesh, were present as special guests at the conference.

The Danish Ambassador said that he was satisfied with the achievement so far and was hopeful that “Made in Bangladesh” would become a trusted name and would be regarded as a serous alternative to the ship-building industry in neighbouring countries like India, Vietnam and China.

Professor Khabirul Haque Chowdhury head, Department of Naval Architecture & Marine Engineering of BUET, presented his keynote research paper on “Transformation in Research and Technological Development and Innovation in Shipbuilding Industry and the Implications for Shipbuilding competitiveness.”

He said that the ship building in Bangladesh had evolved from traditional methods into a modern industry capable of competing successfully in the international markets.

“If it is to convert the recent world downturn into an opportunity, it must begin now to ensure that it develops the most accommodating and enabling environment, where there is sufficient skilled labour, compliance with international class standards, easy access to affordable raw materials, efficient import and export processing mechanisms, investment in infrastructure, research training and technological development and appropriate financial incentives. Networks, clusters, suppliers, trade organisations, financing institutions, civil society, the government and public and private sector bodies must work together to achieve a common goal,” he added.

Dr. Abdullahel Bari, Chairman, Ananda Group, and Sakhawat Hossain Managing Director of Western Marine Shipyard Ltd., the top shipbuilding organisations of Bangladesh, presented their papers.

General Manager of Bangladesh Bank Razee Hasan presented his note on growth and future plan and financial policy for the shipbuilding industry from a bank’s perceptive.

K M Mahmood-ur-Rahman, president of the Bangladesh Shipbuilders Association asked for support from government and FDI investment.

S: http://www.theindependent-bd.com/

Bangladesh Shipbuilding industry ‘can be 3rd largest export earner in 10 years’

The country’s shipbuilding industry could become the third largest foreign exchange earner in less than ten years if the government provides support services of issues relating to bank guarantees, access through green channels and declaring export-oriented shipyards as export processing zones (EPZs).

This was revealed in a study on shipbuilding industry in Bangladesh: current position and prospects for future growth conducted by the Bangladesh Foreign Trade Institute (BFTI), a non-profit research institution.

“The government should not dwell over these decisions too long as India and Indonesia are increasing their own ocean-faring vessel capacities,” the study, which is likely to be presented at the country’s first-ever BFTI national shipbuilding conference to be held on September 29.

The study said the ship building industry in India had grown from Rs 10.17 billion in 2002 to Rs 36.57 billion in 2007 as a result of government support over those five years, with sales increasing to Rs 52.83 billion in 2008.

The report said: “This confirms that government can play a crucial role in setting up an enabling environment for the Bangladeshi shipbuilding industry.”

However, the study said bank guarantee constitutes a very significant portion of the total project cost saying the local shipbuilders are paying approximately 7.6 per cent of the total contract value for obtaining bank guarantees.

“If the government could provide bank guarantee through the Bank Bangladesh, this cost could be reduced significantly,” the report added.

The government has already granted the industry a partial green channel status. In terms of the current provisions no customs duties are payable on imports of raw materials and components for use in shipbuilding.

The study said: “Granting full green channel status to export-oriented shipbuilders will not place any additional burden to the government, but will save the industry 0.9 per cent of the contract value.”

The report advocated that the shipbuilding yards be declared export processing zones saying: “This would imply that all sales made to such shipyards will be deemed to be export sales.”

Technology plays a major role in the industry and the industry is required to purchase basic drawings at an estimated cost of US$ 200,000, according to the study.

“Considering the importance of this technology, the government may consider subsidising the acquisition of technology, for instance, by undertaking to pay a certain percentage of the cost of acquiring such technology,” the study added.

Currently ship builders have to import virtually all materials required, which constitutes nearly 65 per cent.

If a contract for a shipbuilding is worth $28 million, material imports constitutes around $ 18.2 million.

S: The Financial Express

20 Danish shipbuilders to explore joint venture in Bangladesh

A delegation of more then 20 Danish companies will visit Bangladesh next month to explore possibilities for setting up joint-ventures in shipbuilding.

“The aim of the visit, which takes place from November 8 to 13, is to set-up joint ventures in shipbuilding between Danish and Bangladeshi companies, said Morten Siem Lynge, Business-to-Business coordinator of Danish Embassy in Dhaka Thursday.

The visit is taking place at a time when the country’s ocean-going shipbuilding industry has been hit by global recession as orders worth hundreds of millions of dollars have either been cancelled or put on hold.

“At the moment, more than 20 Danish companies have shown their interests to visit Bangladesh and look for local partners,” Morten told the FE in an interview.

“It is true that buyers are now taking less, cancelling orders or putting them on hold due to global recession. But things will change when the recession is over and Bangladesh has to be ready for that.”

He said ships have to be built in recession times, and Bangladesh can actually benefit from this.

“Bangladesh has done exceptionally well amid recession. It is still building new ships and the number of orders will certainly go up once the global economy recovers.”

Experts said the country has become a new destination for companies seeking to build small ocean-going vessels as traditional shipbuilding nations such as South Korea and China now focus on building large ships.

Even Vietnam, which is relatively new in shipbuilding, is no longer interested to build small ships weighing 4,000-25,000 tonnes, Morten said.

Denmark, which has long tradition in shipbuilding, is now less active in this area due to high production cost. However, a very large number of high quality component and service suppliers for shipbuilders are still very active in Denmark, Mr Morten said.

He said low labour cost, which is one of the cheapest in the world, has also made Bangladesh a new destination for companies seeking construction of small ocean-going vessels.

Danish companies are interested to build ships here because it is at least 15 per cent cheaper compared with other countries, he said adding Bangladesh is the cheapest place in the world for building new ships.

He said 55 per cent of the world’s ships below 20,000 dead weight tonne (DWT) are at least 20 years old and they have to be replaced sooner or later.

Morten said Bangladesh imports 90 per cent of the components needed to build ships. But the local companies can cut cost further and secure a more timely delivery of components if they manufacture components locally through joint venture with overseas companies.

“Many Danish companies, which manufacture components, are willing to go for joint venture in Bangladesh,” Morten said.

The shipbuilding sector, which is hailed as the next industry leader after garments with potentials to earn billions of dollars, will create jobs for thousands and help grow many other allied industries, he added.

Local shipbuilders have termed the upcoming visit of the Danish manufacturers as a positive news for the country’s nascent industry.

“This visit will broaden our business prospect,” said Sakhawat Hossain, managing director of Western Marine Shipyard, the country’s one of the largest shipbuilders.

He told the FE: “I think we have overcome the crisis, as it is evident from the interest shown by the global shipbuilders.”

“The demand for small sea-vessels has also increased due to the economic crisis, and we are ready to take this opportunity,” he added.

S: The Financial Express