Exports earnings from ships, boats and floating structures saw a steep decline of 87.5% to US$5.73m in the last fiscal year concluded on June 30 due to economic recession in the European countries.
The earnings fell about 98% short of the period’s target of $260m, according to Export Promotion Bureau (EPB) figures.
In the fiscal 2011-12, export earnings from the sector stood at $45.5m, registering about 14% growth as compared to the performance in the previous fiscal year.
As a new sector, exports of ships, boats and floating structures soared as high as 338% to over $40m in the fiscal year 2010-11.
“Exports earnings from ships, boats and floating structures went down due to economic recession the European Union countries,” said Md Sakhawat Hossain, general secretary of Shipbuilders Association.
Buyers of the EU delayed orders by one year as they are facing fund shortage due to economic slowdown, he said, adding “some of the buyers also cancelled orders.”
He, however, said the industry is seeking alternative market to boost the exports and already got orders from Africa. “We are not getting new orders from the buyers as they are not getting funds from the banks.”
Hossain, also Managing Director of Western Marine Shipyard Ltd, told the Dhaka Tribune that they were not taking up new project at this moment due to high bank interest rate.
“Demands for ships, boats and floating structures have been declined in the world market, especially in the EU, as the buyers facing liquidity shortage due to economic meltdown,” said Shubhashish Bose, Vice Chairman of Export Promotion Bureau.
The government has a plan of refinancing the sector by Tk2bn and taken initiatives to implement the proposal for the betterment of the sector, he added.
“We recommended introducing ‘Towing Tank’ through Bangladesh University of Engineering and Technology (BUET), which will work on improving the ‘speed factor’ of ships and the initiative is aimed at development of the shipbuilding sector,” he said.
Bose said the EPB has taken up steps to explore alternative market and the sector will boom when the EU economic crisis will over.
