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World Maritime University Dissertations Dissertations

1986

Ship repair facilities in Bangladesh

A. F. Mohammadullah
World Maritime University

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 WORLD MARITIME UNIVERSITY
Malmoe, SWEDEN > *
! -■ '■

-V

SHIP REPAIR FACILITIES IN [BANGLADESH

by

A.F.Mohammadul1 ah
Bang!adesh

A paper submitted to the Faculty of the World Maritime University

in partial satisfaction of the requirements for the award of a

MASTER OF SCIENCE DEGREE

in
MARITIME SAFETY ADMINISTRATION (MARINE ENGINEERING).

The contents of this paper reflect my personal views and are not

necessarily endorsed by the UNIVERSITY.

Signature:

Date: 4 September, 1986

Supervised and assessed by:

Professor T. F. Balmer
World Maritime University
Malmoe, SWEDEN.

Co-assessed by:
Mr. J. Tope n *
Chief Surveyor, Load Line & Bulk Cargoes, Uk/DoT (Retd.)

Visiting Professor
 ABSTRACT

Because of the complex and extensive river network,

Bangladesh has a large inland shipping fleet in addition
to its ocean-going and fishing fleets. All three of these
fleets are important to the economy of the country and so
too is the ship repair industry that supports them.
Repair facilities for ocean-going ships represent a
recent development in the country's economy and still
need many improvements in order that they may meet the
needs of the national fleet and other ships calling at
Bangladesh ports. The repair facilities for inland ship­
ping including fishing fleet are much older but also need
great improvement to meet national requirements.

In order to assess the need for improvement of the ship

repair facilities, it is necessary first to assess the
present positions and current trends of Bangladesh
fleets. These preliminary assessments are made in this
paper; then the assessments of the repair facilities are
made, and suggestions for improvement offered, for each
of the repair yards. Finally, the problems facing the
industry are identified and suggestions are offered to
overcome them.

ii
 ACKNOWLEDGEMENT

To produce this paper I have solicited enormous help from

willing, pacient and dedicated persons. I am therefore,
indebted to all who in one. way or the other may have
helped me when it was most needed.

I espacially do wish to acknowledge with heartfelt grati­

tude and thanks the tremendous help and guidance' recieved
from Professor T. Balmer, my course professor, who read
my scripts so patiencely and suggested very valuable
amendments where necessary.

I wish to thank my elder brother, Mr. Md. Abdullah who

helped me to collect informations for this project and
whose affactionate care, guidance and encouragements are
of enormous value to me.

I also do wish to thank my wife, Babiy for her patience

and taking care of cur children Rajib, Titly and Fares
during our stay in Malmo and for her understanding and
support which made it passible for me to devote to my
studies.

My sincere thanks also go to Mr. Tareck Anis Ahmed,

Director General, Department of Shipping, Capt. S.Alam
Chowdhury, Chairman,BIWTC, Mr. Wares Ali, Managing Direc­
tor , Chittagong Dry Dock Limited and the managements of

iii
BSCj PCA, BIWTA, BSEC and other repair yards in the Pri­
vate Sector in Bangladesh for their understanding and
valuable support during my rese s I? Cj n w o I’’ k n

Also my special thanks to Prof. Aage Os and NORAD offi­

cials for their understanding and support to collect data
from the NORAE) Library,Oslo.

I also acknowledge with thanks the dedicated lectures and

knowledge imported to me during the course period by the
distinguished resident and visiting professors.

If 1 failed to mention in any person by name who may have

assisted me, is not by design but that I cannot accomoda­
te every name here.

Finally, I dedicate this paper to my late parents whose

souls may rest in eternal peace.

IV
 TABLE OF CONTENTS

Contents Page No.

ABSTRACT ii

»
ACKNOWLEDGEMENTS iii

LIST OF ABBREVIATIONS ix

1 - INTRODUCTION ‘ 1

2 - BANGLADESH MERCHANT NAVY 6

2.1. The Importance of Merchant Fleet 6

2.2. The Bangladesh Shipping Corporation 8

2.3. Ocean-Going ships in Private' Sector 16

3 - BANGLADESH INLAND SHIPPING 18

 3.1. The Importance of Inland Shipping 18

3.2. Bangladesh Inland Water Transport

Corporation 19

3.3. Inland Vessels in the Private Sector 23

4 - BANGLADESH FISHING FLEET 25

4.1. Importance of Fishing Industry 25

4.2. The Marine Fisheries 26

4.3. Off-Shore Trawler Fishing 27

4.4. Coastal Small-Scale Fishing 28

i*

4.5. Inland Open-Water Capture Fishing ' 29

5 - SERVICE-ORIENTED VESSELS FOR AGENCIES' 31

5.1. Chittagong Port Authority 31

5.2. Port of Chalna Authority 33

5.3. Other Administration/Agencies 35

vi
6 - IMPORTANCE OF REPAIR FACILITIES 37

6.1. Preliminery Remarks . 37

6.2. Economic Consideration 38

6.3. Social Consideration 39

6.4. Political Consideration 40

7 - EXISTING FACILITIES FOR OCEAN-GOING SHIPS 41

7.1. Chittagong Dry Dock Limited 41

7.2. BSC Marine Workshop 55

7.3. Facilities for Ocean-Going Ships

in Private Sector 62

8 - EXISTING FACILITIES FOR INLAND VESSELS 64

8.1. BIWTC Dockyards 64

8.2. Khulna Shipyard Limited 74

8.3. Dockyard and Engineering Works Ltd. 81

8.4. BIWTA Marine Workshop. 89

vii
 S.5. Facilities for inland Vessels in
Private Sector 91

9 - FINDINGS AND RECOMMENDATIONS 93

9.1. Preliminery Remarks 93

9.2. Common Problems to allEnterprises 94

9.3. Problems Faced by Enterprises in

Public Sector 96

9.3. Problems Faced by Enterprises in

Private Sector 99

BIBLIOGRAPHY • 100

viii
 LIST OF ABBREVIATIONS

AC , Alternating Current.
ADR , Annual Development Plan.
BADC , Bangladesh Agriculture Development Corporation.
BFDC , Bangladesh Fisheries Development Corporation.
BIDC , Bangladesh Industrial Development Corporation.
BIWTA , Bangladesh Inland Water Transport Authority.
BIWTC , Bangladesh Inland Water Transport Corporation.
BR , Bangladesh Railway.
BSC , Bangladesh Shipping Corporation.
BSEC , Bangladesh Steel & Engineering Corporation.
BWDB , Bangladesh Water Development Board.
CCDB , Cristian Commission for Development of Bangladesh
CDDL , Chittagong Dry Dock Limited.
cap , Cost and Freight.
CPA , Chittagong Port Authority.
DANIDA, Danish International Development Agency.
DC , Direct Current.
DEW , Dockyard and Engineering Works.
DWT , Dead Weight Tonnage.
EPIDC , East Pakistan Industrial Development Corporation.
FAO , -Food and Agriculture Organisation.
FFA , Fire Fighting Appliances.
GNP , Gross National Product.
ICE , Internal Combustion Engine.
IDA , International Development Aids.
IMO , International Maritime Organisation.
IWT , Inland Water Transport.
JICA , Japan Industrial Cooperation Agency.
KWH , Kilo Watt Hour.
LSA , Life Saving Appliances.
• ix
NORAD , Norwegian Agency for International Development.
PCA , Port of Chalna Authority.
PDB , Power Development Board.
PIDC , Pakistan Industrial Development Corporation.
SFYP , Second Five Year Plan.
SRS , Shipping Research Services A/S.
SWL , Safe Working Load.
TEU , Twenty Equivalent Unit.
TFYP , Third Five Year Plan.
UNDP , United Nations Development Programmes.
CHAPTER 1 INTRODUCTION

Bangladesh, a country of one hundred million people has

an area of 142,776 square kilometres. A total of about
24,000 km. of rivers, streams and canals criss-cross the
country. The three mighty rivers namely, the Ganges
(known as the Padma in Bangladesh), the Brahmaputra
(known as Jamuna in Bangladesh) and the Meghna with their
tributaries form one of the world's most compleK river
systems. This covers nearly 7% of the surface of Bangla­
desh with a highly irregular deltic coast line of 574 km.
The total navigable water-way of the country is about
8,430 km. This complex river network has a great influen­
ce on the economy as well as the mode of transportation
of the country. The road transportation of the country
has developed with much limitation due to this complex
river network and it is more expensive and time consuming
compared to water-ways transportation of the country.

The economy of Bangladesh is predominently agricultural

and its major exports are volumenous primary products
such as Jute, Jute-goods and Tea. The major imports of
the country are bulk commodities such as food grains,
cement,fertilizer,rock phosphate, coal, sulphur, iron
scraps, etc. This calls for a cheapest mode of transpor­
tation for movement of these commodities between the sea
ports and the collection/distrbution centres of tt^

country in the inland sector and between Bangladesh and

other countries of the world in the foreign trade sector
to survive in the competitive market. The water-borne
transportation is the only answer for Bangladesh. There-

•1
fore, the country should have an efficient and cost
effective merchant fleet and inland shipping.

The inland water-ways are presently served by a fleet of

4095 registered steamers, motor-launches, ferry-boats,
cargo coasters, barges,tugs and about 2.8 million country
boats. These country boats are being gradually replaced
by self-propelled boats.

A merchant fleet of 34 ships with a total capacity of

about 350,000 DWT carries only 18% of the combined volume
of imports and exports in its own bottoms. The fleet is
expected to be increased to raise the tonnage to about
600,000 DWT by the year 1990 so that it can carry at
least 40% of nation's sea-borne trades.

The fishing industry plays an important role in the

national economy. There are about one hundred deep-sea
trawlers and over three thousand mechanised boats are
engaged in the deep-sea and shallow-water fishing in the
Bay of Bengal.Today , fish is one of the major export com­
modities of the country in terms of foreign exchange ear­
nings.Fish is also the main source of animal protein
supply for the country. Presently it contributes about 5%
to GNP and meets about 80% of the country's animal pro­
tein requirements.

The efficiency and the effectiveness of the merchant

fleet, inland shipping fleet and the fishing fleet of the
country can be best ensured through the services of an
efficient but cheap and effective ship repair industry.In
Bangladesh, ship repair industry has developed as a sup­
porting industry of its shipping. The ship repair facili­
ties in Bangladesh for ocean-going vessels are a recent
development, mainly due to the fact that the nearby Cal­
cutta port was much bigger and with all the necessary
facilities for the repair and maintenance of ships inc­
luding docking facilities during the colonial rule in the
Indian sub-continent. Even after getting independence and
creation of Pakistan in 1947 the port of Chittagong
recieved importance as number two port of the country
after Karachi. That is why, the government of Pakistan
felt the necessity of establishing a dry dock and repair
yard in Chittagong as late as 1963. However, in the
inland sector some of the repair yards were established
as far back as in the year 1928 and the others were
established in forties and fifties.

Due to paucity of foreign exchange and to protect the

only drydock of the country i.e. Chittagong Dry Dock
Limited <CDDL) the government has imposed restrctions on
getting Bangladesh flag vessels, particularly the ones in
public sector, repaired and drydocked in foreign yards
except on emergency cases. The inland ships and the
fishing vessels are also not allowed to proceed abroad
for repair and dry-docking in foreign yards under normal
circumstances. Therefore, the inland water crafts and the
fishing vessels are totally dependent on the locally
available facilities both in public and private sectors
scattered all over the country. About 90% of the drydoc­
king and repair works of ocean-going ships of Bangladesh
are being attended by the Chittagong Dry Dock Limited and
Bangladesh shipping Corporation Marine Workshop (BSC
Marine Workshop) at Chittagong in the public sector and a
few small repair yards at Chittagong and Chalna/Khulna
area in private sector.

Under the circumstandes as stated above, it is pertinent

3
to have a clear picture of the whole situation of ship
repair activities in Bangladesh in one single document,
based on which future developmental course of action may
be considered by the government. With this end in view
the author has tried to make the assessment in this
paper.

The present position and an indication of future trend of

the Merchant Fleet, the Inland Shipping,the Fishing Fleet
and the Service-Oriented Vessels for Various Agencies
have been assessed in chapters 2,3,4 and 5 of this paper-
respectively. The chapter 6 contains the importance of
Ship repair Facilities in Bangladesh. The Existing Faci­
lities for Ocean-Going Ships and the Existing Facilities
for Inland Vessels (including fishing vessels) have been
assessed and recommendations made for physical modifica­
tions/ improvements/reorganisations as necessary in chap­
ters 7 and 8 respectively.The chapter 9 contains the
problems faced by the industry and recommended solutions
of these problems.

The ships & other water-craft and the repair facilities

under the control of Bangladesh Navy, Army, Police,
Customs and other Special Defence Agencies have not been
taken into account in this assessment. These are conside­
red to be outside the scope of this paper.

The word "lac" has been used in this paper for indicating
amount in various places. The word means "Hundred Thou­
sand". The currency of Bangladesh is known as "Taka". The
value of Taka in relation to U.S. dollars keeps on chang­
ing-. The present value is about " Taka, 30 = US$ 1". The­
refore, the rates of Taka in relation to U.S. dollar at
the material time has been used to calculate the equiva-

4
lent in U.S.dollars in brackets

5
CHAPTER BANGLADESH MERCHANT NAVY

2.1 The Importance of the Merchant Fleet

Bangladesh is a coastal state with the Bay of Bengal

forming her entire southern border, and its geographi­
cal situation has brought her into contact with the out­
side world by sea throughout the ages. Organised mariti­
me transport services with modern merchant ships, howe­
ver started in 1899 when the first ship called at Chit­
tagong port on commissioning its first jetty.

About 97% of import and 97.3% of export trade of the

country are sea-borne. The total volume of our external
trade for the year 1983-84 was 7.74 million tonnes. It is
expected that by the year 1990 the volume of total
foreign trade of Bangladesh will stand at about 10.5 mil­
lion tonnes.

After liberation of the country in Desember,1971, the

foreign ships were not willing to call at our ports
because of the channel condition, not suitable for safe
(i
navigation and the insurance companies increased their
premium on ships calling at Bangladesh ports. On the
other hand to meet the requirements of massive relief and
rehabilitation/reconstbuction works and economic activi­
ties in the war-ravaged country, shipping services were

of great urgency. On this background, the following

socio-economic considerations prompted Bangladesh to
build up its merchant fleet commensurate with the growth
of our external trade;-

6
1. For optimum perticipation in the massive relief
and eoonomic acivities in the war-torn country
which was the very basic need of the time.

2. To prevent drainage of foreign exchange in the

form of freight payment to the overseas shipping
companies.This generally constitutes abo.ut lOX of
the cost of the commodity.

3. To earn foreign exchange as freight through

cross-trading.

4. To reduce our dependence on foreign shipping

lines.Shipping being a strtegic industry,total
dependence on foreign shipping could be a great
disaster in time of national emergencies.

5. To create employment opportunity for the

country's available huge number of seamen whose
skill is well-known in the shipping world. Also
to create job opportunities for the people having
marine related vocations in ancilliary indus­
tries .

6. To render trade promotional services by opening

new shipping routes and offering concessional
freight especially for non-traditional commodi­
ties .

7. To enable, the country to maintain reasonable

freight rate through bargain at level term with
foreign shipping lines operating in our trade
routes.

7
 8. To ensure timely despatch of peroels to meet our
export target/international obligations and
import targets for maintaining steady supply in
the local market and smooth development activi­
ties.

9. To foster national ship building industries.

10. To create technical skill and know-how in mariti­

me industry and also to carry our national flag
all over the world.
11. Last but not the least, shipping is in line with
our greater national objective of self relience
in all sphare of our national economy.

2.2 The Bangladesh Shipping Corporation CBSC)

Following the liberation of Bangladesh in 1971, her ports

were unfit for navigation and the country had no ocean—
going ship of its own. Dependent upon sea-borne trade,
the nation could not ignore the necessity of establishing
its own merchant fleet for a very long time. So, hurried­
ly the Presidential Order No.10 of 1972 was issued and
the BBC came into being on the Sth of February, 1972 i.e.
within two months of liberation of the country. The
establishment of BSC, having no ship of its own and with
the added handicap of the national ports till then unfit
for operation might have strained credulity at that time.
But its birth was, in fact the birth of a solemn promise
which the nation made to itself to build up as soon as
possible its own merchant fleet capable of contributing
to its economic reconstruction by providing safe and
efficient shipping services on international routes and

8
carrying out all forms of activities connected with or
ancilliary to shipping.

The primary objective of BSC was to meet an optimum level

of national shipping requirements through ensuring the
following

1. A balanced ship-acquisition programme with a

ultimate goal of being able to carry the cargo as
per provision of UNCTAD i.e. 40:40!20;in its own
bottoms.

2. Maximum efficiency in the management, operation

and maintenance of ships, with ultimate economic
advantages.

3. Creation, development,protection and preservation

of national maritime skills.

A. Avoidance of disasters and consequent loss of

lives and damage to properties, marine resources
and heavy expenditure of clearing pollution
through maintaining the highest practical stan­
dard on board ships.

5. Provision of overall impetus to maritime develop­

ment .

6. Projection of the image of Bangladesh in every

sphere of activities in the maritime world.

As mentioned earlier, BSC did not have any ship of its

own at its inception but it had all the Bangladeshi expe­
rienced officers and staff working for erstwhile National

9
Shipping Corporation of Pakistan. C’ue to the inevitable
constrains dictated by the meagre foreign exchange
resources of the country BSC could not launch an exten­
sive/ expensive acquisition programme immediately. To
make the best of everything under the circumstances, BSC
started off merely as an agent of foreign shipping lines
in Bangladesh ports.The immediate task of clearing up all
the backlog of export cargo by shipping them in foreign
vessels was also undertaken successfully by BSC. By
April,1972 BSC had submitted a comprehensive project
report to the government of Bangladesh for acquiring a
total of 43 ships including 3 oil tankers during the next
10 years i.e. 1972-1982. The paucity of foreign exchange
required even for the down payment to be made for purcha­
sing second hanmd vessels continued to plaugue the ambi­
tious plan of the corporation. However, the 10th. of
June,1972 is the red letter day in the history of BSC
when it acquired its first ocean-going ship, m.v."Banglar
Doot".In 1972 BSC acquired a total of 4 vessels followed
by further 4 and 5 vessels in 1973 and 1974 respectively,
bringing the total tonnage to 1,09,042 DWT. The year
1976-77, however, stands out as remarkable year when BSC
added 8 more ships including 3 oil tankers to its fleet
raising the total tonnage to 294,459 DWT and a fleet of
21 ships. By the year 1979-80 BSC added another 5 ships
to its fleet bringing the number of vessels to 26 and
raising its carrying capacity to 366,500 DWT.

During the Second Five Year Plan <1981-82 to 1984-85),the

target was set up to procure 17 vessels for expansion,
modernisation and rehabilitation of the fleet and dispo­
sal of 12 old and uneconomical ships from the existing
fleet. This would have raised the fleet to 31 ships
having capacity to carry about 27% of our foreign trade

10
by own bottoms.The expansion programme did not progress
as per target due to country's resource constrains and
non-availability of sufficient foreign aids/assistances
for procurement of ocean-going ships. However, during
this period the corporation has added 4 new ships to the
fleet and disposed off 9 old and uneconomical ships inc­
luding the mainhaul tanker <93,000 dwt.). This reduced
the fleet to 21 ships with a carrying capacity of
264,438 DWT.

Like any other organisation in a newly independent coun­

try BSC also had to confront formidable problems during
her early years of existance. The Sth. of February,1972,
when BSC formally started functioning ,it had no source
of support except the encouragement of an infant govern­
ment of a war devasted new-born nation and a few determi­
ned people at the helm of its affairs. The corporation
was called upon to participate in national efforts
towards attaining self sufficiency in various spheres of
economic activities. BSC did‘not inherit a single ocean—
going vessel from Pakistan. No foreign exchange was avai­
lable to purchase ships. Yet, this challanging circum­
stances perhaps only invigorated the management of BSC to
push ahead determindedly with the objective of making the
organisation a dedicated one for furtheing the national
interest.

BSC made its debut with the agency responsibility of

foreign shipping lines as stated earlier and started
regular sailing from the 10th. of June,1972 with its
first owned ocean-going ship on BD—India—UK—Continent
(the then India/Bangladesh/Pakistan Conference) route.In
February,1973 BSC became -a member of the UK-Continent
conference lines. Under the membership terms,BSC was per­

il
mitted to carry 45% of its cargo to the UK and 39% to the
North Continental ports. Although BSC did not have ade­
quate tonnage oapacity to carry her full share until
recently, the above entitlements for a new conferance
member only spoke of the high confidence that the BSC had
earned. Besides the regular liner service it also started
arranging regular sailings on our major routes for
imports to Bangladesh by chartering ships or through
foreign shipping lines.

Bangladesh imports a lot of bulk cargoes like food grain,

cement, fertilizer, rockphosephate, coal, sulpher,iron
scraps’ etc. from various countries of the world. In the
initial days there was no centralised agency in Bangla­
desh to arrange transportation of these bulk commodities.
As a result, each agency used to arrange transportation
of their cargoes either by themselves or by going into
C&F contract. In C&F contract for obvious reason we used
to end up paying more. The individual agency was not
well-equipped to deal with the intricacies of chartering
by itself. As a result we were not getting best bargain
in chartering too. Realising the situation the government
constituated a chartering committee in Apri1,1973.The
committee is headed by the Managing Director of BSC and
responsible to arrange transportation of bulk commodities
by chartering ships through international tender.All
government agencies are required to import the bulk com­
modities through this chartering committee. Since then
the chartering committee has been arranging most of the
transportation of bulk commodities. BSC chartering
department is successfully carrying out this chartering
activities for the chartering committee.

12
BSC is also responsible to arrange food grain lighterage
from the outer anchorage to the inner harbour when the
mother vessel can not enter the port due to draft res­
triction or if the ship is too long to enter the port.BSC
also owns about 75 grain conveyor machines for ship to
ship transfer of grains.
*

At present BSC is'operating regular liner services to the

following routes

1. Bangladesh/UK-Continent Service,

2. Bangladesh/Far-East/Japan Service.

3. Bangladesh/US-East Coast Service,

4. Bangladesh/Colombo/Pakistan/West Asia Gulf Servi­

ces ,

5. Bangladesh/Singapore container feeder service for

Autralia and New Zealand.

Apart from the above regular services, BSC arranges pro­

motional sailings to West Africa, Meditrenean ports and
to various other ports of the world as and when required.

Bangladesh imports about 1.2 million tonnes of crude oil

every year from West Asia Gulf ports to feed the only
national refinery at Chittagong. Until the begining of
1977 Bangladesh used to depend entirely on foreign flag
tankers for transportation of its crude oil when BSC took
over.This stopped outflow of foreign exchange in the tune
of about US$ 12 to 14 million annually.

13
BSC also has established its own marine workshop for car­
rying out repair and maintenance of its fleet. However,
the workshop will be dealt with in chapter 7 of this
paper seperately.

Although BSC had a target of lifting 27% of total volume

of trade during the Second Five Year PlanCSFYP) its
actual performance in respect of cargo lifting at the
closing year of SFYP was far below of the target. In the
context of the low edge of actual performance, the target
has been cautiously modified to 24% for the Third Five
Year Plan C1985-86 to ■1990-91) period. Based on the esti­
mated volume of cargo <10.5 million) by 1990, BSC has
since proposed for inclution in the TFYP a programme for
procurement of as many as 25 ships of different types and
sizes to suit the present and future trade requirements
details of which may be seen at table -1 on page 15.

Besides this expansion plan, it is also in the thought of

BSC management to acquire 3 to 4 shallow draft <10'-06"-
maximum) small size container vessels with about 120-200
TEUs, to transport certain containers directly from the
mainhaul ship at outer anchorage to inland ports. This
will reduce the port stay of mainhaul container ships
which will help to minimise the port congestions.

14
Naoe of Project I Type of ships Size g'e/f PnaSsid
j SI J X 2 2
On-going schemes.
1 .Acquisition of (a) Multipu2?pose
11 Ocean-giong Dry Cargo 12,600 2 2 -
Siy Cargo ships. Vessels.
(Replacement (h) -do- 16,600 9 36
Programme) .
2. Acquisition of
Lighterage Oil Tanker 13»000 2 2 -
Tankers.
3» Acquisition of gil Tanker 125,000 1 - 1
main Tanker.
(Replacement
Programme). ------- -------- --------
14 7 7

New schemes.
4. Acquisition of General-cum-
General-cum- Refrigerated
Refrigerated Cargo Vessel
Cargo Vessel.
5. Acquisition of a^ Multipurpose.« .
9 Multipurpose Dry Cargo *
/fully Contain Vessels.
nerised Vessels.h) -do- 16,600 8 62

6. Acquisition of ©il Tanker 125,000 1 1 —

Main Tanker
(Replacement
Programme).
11 9 2
25 16 9

Table 1. BSCs Acquisition Programme for TPYP period.

2.3 Ocean-going Ships in Private Sector

The private investment in Bangladesh is very shy and it

is more so in the case of shipping due to oil crisis and
prolonged world-wide recession in shipping. From 1977 the
ship-owning is no more nationalised in Bangladesh. Since
then, it is the policy of the government to encourage
private investment in shipping in order to grow private
shipping side by side with the national line.^In persuan—
ce of above poli^sy the ^government f loatecKshares of BSC
in the^ share market^ Private ship-owning is gradually
coming up despite the set back suffered by shipping due
to unprecedented recession all over the world and an
obvious fear prevailing in the mind of private investors
due to political 'instability prevailing in the country.
(^In late seventies 7 some foreign investors invested in
shipping in join't venture with local investors. Unfortu­
nately, in the early eighties these foreign investors
withdrew their money from Bangladesh^,! At present there
are six private ship owners, have started operating from
Bangladesh. The total carrying capacity in this sector is
about 80,ODD E’WT. It is hoped that a sizable merchant
fleet under private sector will come up soon which will
take care of country's sea-borne transportation require­
ments simulteneously with the national line. This will
surely, enhance commercial capability of all the shipping
lines in Bangladesh.

The future of shipping in the private sector is quite

promising in Bangladesh. The manning is one of the chea­
pest in the world. The Bangladesh Flag Protection Ordi­
nance stipulates certain criteria for two-way sea-borne
trade and BBC's inability of carrying full share of our
natio);ial trade are a few of the advantages which will

16
encourage the private enterpreneours to invest in ship­
ping. However, a rapid growth of this capital intensive
industry cannot be expected without state assistance.^ In
many countries,including India, State assistances are
extended for the expansion of shipping. In India, govern­
ment has established Shipping Development Fund where from
soft term loan is given to interested party for purcha­
sing ships. A similar step, if taken bythe government of
Bangladesh, will surely expedite the growth of shipping
in private sector as well.

The role of private shipping in protecting national inte­

rest is very important. This will act as a competitor of
the national line and BBC will be compelled to improve
its commercial performances. The trade is expected to
recieve a better service from the shipping lines under
competition for cmmercial gain.

17
CHAPTER 3- BANGLADESH INLAND SHIPPING.

3.1 Importance of Inland Shipping.

A total of about 24,000 killometres of rivers, streams

and canals criss-cross Bangladesh. This nearly covered 7%
of the country's 142,776 square kilometers of surface
with a highly irregular deltic coast lines of 574 ’kilo­
metres. The 3 mighty rivers i.e. the Ganges (known as
Padma in Bangladesh), the Brahmaputra (known as the Jamu-
na in Bangladesh) and the Meghna with their tributaries
form one of the world's most complex river systems. This
has a great influence on the economy as well as on the
mode of transportation of the country. Taking the advan­
tage of these rivers and canals, a large number of mar­
kets and commercial townships have grown up on the bank
of these rivers. Due to this complex river system the
road transportation is expensive and time consuming. Bulk
of the import and export mercandises are, therefore, car­
ried through water-ways. Moreover, water-ways are the
only means of communication to and from the off-shore
islands with the main land. The southern districts of the
country are also solely dependent on the water-ways
transportation system. The major road transportation
system is also connected by ferries across the mighty
rivers. The inland shipping is the most important mode of
transportation for commodities, passengers as well as
vehicles. Therefore, it is the life-line of our economy.
Today there are about 2000 registered cargo vessels for
inland and coastal transportation. This fleet operates
largely in the arterial routes of about 53D0 kilometres
and 39 major inland harbours and the off-shore islands.

18
3.2Bangladesh Inland Water Transport CorporationCBIWTC)

At the time of the liberation war in 1971, East Pakistan

Shipping Corporation and Pakistan River Steamer Services
(former IG & RSN Co.) in the public sector and many of
the inland and coastal shipping companies in private sec­
tor used to operate in the inland water-ways. About 60%
of these inland crafts were damaged during the liberation
war by under-water mines planted by the freedom fighters.
Just after liberation most of the non-Bengali owners left
the country and their vessels were declared as abandoned
property. The inland transpotation system came to almost
stand still due to the non-availability of operational
crafts and the water-ways being unsafe for navigation. In
this background the BIWTC was formed under the Presiden­
tial Order No. 28 in 1972 with the assets of earstwhile
East Pakistan Shipping Corporation, Pakistan River Stea­
mer Services and 8 other units of abandoned shipping com­
panies .

The organisation was established with the following

objectives;-

1. To recommission all the damaged water crafts and

to recommission all the repair yards belonging to
these units.

2. To restore the riverine and coastal transporta­

tion networks including the ferry services for
transporting the vehicles and passengers travel­
ling by roads and highways.

3. To restore the transportation links between the

19
 mainland and the off-shore islands

4. To ensure hermonised system in the arterial

freight and passenger transportation and to pro­
vide safest and quickest movement of passengers
and cargoes.

5. To keep freight level to the minimum and prevent

’ private operators from speculation.

It is the only Public Sector corporation in the inland

water ways of Bangladesh. It started functioning with 611
vessel of various types. The BIWTC had to face very hard
days initially with old ,damaged and delapidated vessels
inherited at the time of its formation.Immediately after
the formation the corporation started repair/recommissio-
ning the damaged vessels. It also started acquiring new
vessels from abroad as well as within the country to
rehabilitate the fleet in phases. A good number of old
and uneconomical vessels were sold out. As many as 234
new vessels have been acquired and 284 old and uneconomi­
cal vessels were sold out till December,1985. During the
period another 27 vessels were returned to original Bang­
ladeshi owners. Present strength of BIWTC is a mixed
fleet of 534 vessels with a static capacity of 1,26,730
tonnes of cargo, 11,842 passengers and 202 vehicles.The
main area of activities of the corporation covers a wide
range of inland cargo tr.anspotation, extensive network of
passenger services and vehicular ferry services. The cor­
poration also owns as many as 4 repair yards (these will
be dealt with in chapter 8) for carrying'out the repair
and maintenance of its fleet.
Although the corporation is a * commercial organisation,a
major portion of its activities are for rendering public

20
utility services on socio-economic considerations. With a
fleet of 29 passenger ships the corporation is maintai­
ning 11 different passenger services. Out of the 11 pas­
senger services 9 are covering the off-shore islands
only. The commitment of the government for providing safe
communication in the inland water-ways is being materia­
lised by BIWTC through its operation of these utility
services. Maintenance of Aricha—Nagarbari, Aricha—Doula—
dia and Sirajgang-Bhuapur ferry service is one of the
most important field of activities of the corporation.
Through these ferry services a connection has been estab­
lished between the northern and the southern parts of the
country with the rest of Bangladesh for movement of vehi­
cular traffic. Another ferry service between Firingibazar
and Char-Pathergata (chittagong) has been started recent­
ly to facilitate the movement of both vehicular as well
as passenger traffic.

A short description of the commercial performances of the

corporation during the last 3 years i.e. 1982-S3, 1983—84
and 1984-85 as shown in table 2 at page 22 indicates the
overall improvement in general and a tremendous improve­
ment in the ferry sector in particular. Introduction of
night ferry services for carrying passenger coaches has
opened a new era in the histof'y of road transport system
in Bangladesh.

21
 I
Financial j Vehicles J Cargoes j Passengers j Earnings in J
Years ' in number ’ in tons { in number } million Takaj
II II
II II
{ 1982 - 1985 } 227,000 ! 1,247,000 } 2,809,000 } 286.00 J
I I II II
II II

’ 1983 - 1984 5 289,000 { 1,057,000 J 4,501,000 J 301.80 j

I I
ro
ro 326,000 J 1,317,000 J 4,820,000 ! 357.10 I
} 1984 - 1985

Table 2 Performance of BIWTC during three financial years

Ab a part of the expansion/modernisation programme during
the last 3 years, a total of 16 dump barges and 3 self—
propelled barges have been acquired at a cost of taka
70.00 million <05$ 2.8 million). Three passenger stea­
mers, namely, Mahsud, Ostrich and Lepcha have been diese—
lised at a cost of taka 110.00 million <05$ 4.4 million).
To cope with the increased trend of vehicular traffic at
Aricha and 5irajgang sectors 2 more Ro Ro ferries have
been acquired from Denmark at a total cost of taka 126.40
million <05$ 5.00 million). Arrangements are also being
made for acquisition of 2 more ferries from local yards
for further augmentation of the ferry services. Moderni­
sation and improvement of the repair yards and acquisi­
tion of 2 more Ro Ro ferries as part of on-going project
included in the Third Five Year Plan <1985-1990). Further
acquisition of 2 more Ro Ro ferries and rehabilitation of
Floating Dock as new projects have been included in the
Third Five Year Plan.

3.3. Inland Vessels in Private 5ector.

The inland shipping is’dominated by vessels in Private

5ector. The private owners own about 96% of the passenger
carriers in number carrying 88% of the total passengers
and 69% of the cargo carriers in number carrying about
67% of the cargo.

It is very difficult to get the accurate list of the

machanised vessels in private ownership. The theoretical
source for obtaining statistics of privately owned ves­
sels is the office of the Engineer and 5hip Surveyor and
the Registrar of Inland Shipping. But the records main­
tained by this office do not reflect the accurate and
upto date position. BIWTA, although the reulatory body
for private IWT vessels operation, is itself dependent
on the registrar of Inland Shipping as a primary source.
Thus its Statistics are no better than the Registrar of
Inland Shipping's. To have an idea of the fleet size in
the private sector the adjusted estimate of Inland Water
Transport fleet from upgraded Bangladesh Transport Survey
study of January, 1978 is quoted below:

Type of vessels No. of vessels Capacity

Dry cargo vessel 43 31,000 DWT

Coastal tankers 23 2’2,000 DWT
Bay crossing dump barge 63 36,000 DWT
Inland dump barge 760 210,000 DWT
Self-propelled barge 220 28,000 DWT
Passenger carriers 640 86,000 •pass.

However,’ the latest figures obtained through the good

office of the C)irector General, Department of Shipping are
as under:

Passenger & Cargo vessels - 3816 Nos.

Dump Barges — 1204 f f
Oil Tankers — 14 » 9

Tugs 133 9 9

24
CHAPTER 4 BANGLADESH FISHING FLEET.

4.1 Importance of Fishing Industry.

Fish is an indispensable component of the daily diet of

almost every person in Bangladesh. It is one of the most
important staple foods and ranks second only to rice'.
Fish eating is a part of Bangladeshi culture and herita­
ge. It is the most important and cheapest source of ani­
mal protein in the daily food. Thus it suppliments pro­
tein defficiencies and boosts up food production.

The export potentiality of fish cannot be ignored. In the

course of last few years frozen food C mainly shrimps and
other fishes ) added a new dimension in the country's
export earnings. Starting from almost nothing a few years
ago, export earnings from fish has gone up to taka
1550 million <LIS$ 62.00 million) during the financial
year 1983-84. Now fish ranks third in the list of our
exports, after jute (including jute goods) and leather
and covers almost 8% of the total foreign exchange ear­
ning of the counrty. Thus the fishing industry contribu­
tes about 5% to GNP and meets about 80% of the country's
‘ animal protein requirement. About 6% of the population
depends directly or indirectly on the fishing industry
for their livelihood.

25
4.2. The Marine Fisheries.

The marine fisheries exploration is a recent development

in Bangladesh. It has been mainly encouraged by the dis­
covery of valuable prawn resources in the Bay of Bengal.
Several surveys were conducted in the recent years under
the auspices of the directorate of marine fisheries with
the assistance of foreign countries and national/interna­
tional Agencies such as Bangladesh Fisheries Development
Corporation CBFDC), Food and Agriculture Organisation
CFAO) and Unitd Nations Development Programmes (UNDP)
with the following three main objectives:

1. To assess the fish resource, their present stock

and future potential in the Bay of Bengal.

2. To present data on the fish resources for plan­

ning , designing abd execution of fishing develop­
ment progammes.

3. To develop an efficient statistical system for

fisheries data acquisition and to monitor the
resources.

Based on these surveys, analysis and interpretation of

actual catch statistics of the commercial landing from
trawlers during 1979-1982, Dr.J.W.Penn, an expert on
Fish Stock assessment, made the latest estimate in 1982
as under;-

26
Verieties Standing stock Annual harvestable stock

Demersal fish 2-2.5 lacs tonnes 1—1.25 lacs tonnes

Palagic fish i . (50 2 ■ 00 f ) ) 0.30-0.60 lac tonnes
shrimp 0. OA 0 ■ 06> f ) 0.02-0.03 ,, ,,

For harvesting abouve resources the following fishing

efforts were employed during the year 1982-83.

1. Deep Sea trawlers: (a) Fish trawler - 25

<b) Shrimp ,, - 21
2. Mechanised boatsCgill fiencircled net) - 3,000

3. Sail boats (set bag,long line, etc.) - 9,000

The total, production of fish and shrimp from the Bay of

Bengal during the year 1982-83 was estimated at 1,57,000
tonnes abd 2,300 tonnes respectively.

4.3 Off-shore Trawler Fishing.

During 1977-1982 the government issued permit to 57 traw­

ler base deep-sea fishing units in the private sector.
These units were to operate 183 trawlers, two factory
vessels and one mother vessel. But in March, 1983,the
government cancelled the permission of 14 units compri­
sing 28 trawlers, out of the 57 units mentioned above. As
against above permission the actual trawlers operated
upto June,1983 was 46 <Private-41 and BFDC-5). After
June,1983 there was a dramatic increase in the number of
trawlers operating in Bangladesh water, it was about 100
by 1984. In fact the total number of permits issued upto
January,1985 would allow the public to build up a deep—

27
sea trawler fleet of 250 in the near future.However,
based on a recommendation in September, 1984 by the FAO
consultant the government decided to place a temporary
embargo on the importation of any further trawlers than
the 100 already exiting in the country. A decision regar­
ding the remaining sanctioned 150 trawlers has been defe-
red till completion of the further investigation into the
impact of the present fleet on the fish and prawn stock.
It is the expert opinion that the shrimp trawlers could
be sufficient at the present figure and more fish traw­
lers can be employed in future.

4.4 Coastal Small-Scale Fishing.

About 95% of overall marine fish landing comes from

small-scale artisanal coastal fishing. The total catch
from this sector is estimated at 100.000 tonnes annually.
The coastal fishing is carried out by Ci) Small Mechani­
sed Boats <9-14 m. in length and engine capacity of 15-45
horse power) and Cii) Traditional Sail Boats.

Marine fishing with mechanised boats started in Bangla­

desh as late as 1957-58, when the marine fisheries
department for the first time took up mechanisation of
fishing boats and constructed 22 fishing and fish carrier
boats in collaboration with the FAO. Since then, mechani­
sation programme of fishing boats were taken up through
co-operative sector and BFDC. Initially, the BFDC and the
co-operative distributed 250 and 1000 engines respective­
ly. Boats are constructed by private parties. After libe­
ration of the country the mechanisation of fishing boats
has been further accelerated. The BFDC distributed about
1000 engines either fitted to boats or seperately on cash

28
payment/hire-purchase basis, through the assistance of
the [lanish International .Development Agency CDANIDA).
Some Ferrocement boats were made by the co—operative.So­
cial organisations such as Ceritus, CCDB < Chritian Com­
mission for Development of Bangladesh), etc. distributed
more than 100 boats. The increase in mechanisation since
1976-77 are as under:

Years No. of boats

1976-77 1030
1979-80 .1400
1982-83 2643

These boats are registered with the Mercantile Marine

Department, Ministry of Shipping, Government of Bangla­
desh. A large number of boats are also known, to operate
without registration. However, it is estimated that about
2,800 to 3,000 mechanised boats are engaged in the coa­
stal small-scale fishing in Bangladesh.

4.5 Inland Open-Water Capture Fishing.

The primary source of fish is the open-water capture

fishing in the rivers,estuaries, flood plain and natural
depressions. The open-water capture fishery of the coun­
try consists of about 830,000 hectares of rivers and
canals,272,000 hectares of natural depressions known as
"haors" and "beels" and 2.8 million hectares of flood
plain. Fish production from these resources has been
roughly estimated to be 460,660 tonnes in 1979-80 which
was nearly 80% of the total production from inland sour­
ces
So far, no mechanised boats have been employed in this
sector of fishing. Future possibility, however, cannot be
over-ruled.

30
CHAPTER 5- SERVICE-ORIENTED VESSELS FOR VARIOUS AGENCIES

5.1 Chittagong Port Authority CCPA)

The port of Chittagong is situated on the West bank of

the river KarnafLilly at a distanoe of about 9 nautical
miles from the shore line of the Bay of Bengal. It is the
main port of the country. About 90% of country's import
and 45% of export’ are handled through this port. The
foreign trade of the landlocked country Nepal is also
handled by this port sometime under mutual agreement.
During the year 1983-84 the port handled a total of 858
ships including 44 oil tankers. During the same period
the figures of import and export commodities handled were
5,681,067 and 393,057 matric tons respectively. A total
of 14,830 TEU containers handled by the port during the
year 1983-84.It is expected that this figure will exceed
20,000 by the year 1985-86. CPA's multipurpose berth pro­
ject is scheduled to be completed in 1085-86, would enab­
le the port to handle 40,000 containers per year which
will build up to a total throughput of 90,000 containers
by 1987-1990.

As on 30th. June,1984 the PCA had mixed fleet of 29 ves­

sels of the following description:

Type No. Maximum BHP

Dredger 2 - —

Tug boats 5 • 2 X 1200

Pilot vessels -7 2 X 600
Patrol boats 2 2 X 1000
Buoy Laying vessel 1 2 X 600
2 7.1 X 400
Water boats

31
 Mooring launch 5 200
Service • boats 750
Survey boats S 600

Vessels to be procured under on-going project;

Mooring launches 2 nos.
Work boats 2 nos.
Water boat 1 no. 500 tonnes
Suction hopper
trailer dredger 1 no. 250 cubic meter.

To ensure smooth operation and to improve operational

efficiency of the port the procurement of the following
18 vessels/crafts has been included in the Annual C)eve-
lopment Programme of 1984-85.
Harbour tugs - 3 nos.
Sea-going tug - 1 ,,
Service boat - i, ».
Pilot boats - 2 ,,
Buoy-laying vessel - 1 ,,
Petrol boats - 2 ,,
Sea-going survey ship - ’ 1 ,,
Survey boats - 2 ,,
Water barges — 2 ,,
Deck loading dump barge - 4 ,,

CPA also has got a self-propelled floating crane of 112

tonnes lifting capacity. CPA has got its own marine
workshop and a slip-way (under construction) to take care
of the normal maintenance of its own fleet and docking of
the smaller crafts only.

32
5.2 Port of Chalna Authority <PCA)

The Chalna port is situated on the bank of the Pussur

river at Mongla, 32 miles down stream from Khulna and 60
miles up stream from pilot station at Hiron Point. It
occupies a strategic position in the topography of Bang­
ladesh. The entire western part consisting of the most of
the districts of Bangladesh is its hinterland. The mighty
,rivers, the Brahmaputra, the Padma and the Meghna have
devided the country into two distinct communication
systems. This has increased even more the importance of
this port in meeting the impart and export need of the
western part of the country. In addition to the direct
hinterland about 85% of jute cargo CNo.l export) of the
eastern part of the country flow through this port due to
the cheaper and safer inland water communication with
this port. The port handles about 25% of the total sea—
borne import cargo of the country (excluding POL) and 65%
of the export cargo.

The port is administered from its head office in Khulna

having no direct road connection and the pilot station
being at a distance of *60 miles from the port, it is
necessary that PCA should have an efficient fleet of
water crafts to ensure most effective port operation. The
present strength of the fleet of PCA comprises of power­
ful tugs,buoy tender vessel,pilot launches, mooring
boats, survey vessels, work boats and water barges.

As on 3Dth. June,1984 the port authority had a mixed

fleet of 27 vessels of the following description:

33
 type no. max. BHP

Tug boats 5 2,000

Fire fighting tug 1 1,822
Pilot launches 4 760
Despatch launches 4 700
type no. max. BHP
Survey launch 1 648
Inspection launch 1 640
Mooring boats 3 275
Works boats 4 250
Buoy tender vessels •7 750 X
Water crafts 740

Besides above the port also maintains a fleet of 10 water

barges.

There is an on-going project for replacement/modernisa-

tion of the fleet titled "Procurement of Harbour-Crafts."
The modified and up-dated estimated cost of the project
is taka 2384.30 lacs <LIS$ 9.54 million) with a foreign
exchange component of taka 1,468.87 lacs <LJS$ 5.88 m.).

The PCA owns a workshop and a small slipway. The workshop

is too smal'l to undertake the entire day to day mainte­
nance work of its fleet. The slipway has a lifting capa­
city of 50 tons only. Although PCA is trying to utilise
the services of the Khulna Shipyard, Dockyard & Engineer­
ing Works,Narayanganj and BIWTA Floating Dock and work­
shop at Barisal for docking, repair and maintenance work
of its fleet,it is strictly limited because of the capa­
city, congestions and/or lack of required facilities in
these yards. To improve this situation the port stuthority
has prepared a preliminary proposal to establish a
sophisticated Marine Workshop over an area of 27,000 sq.

34
metres at its permanent site, Mongla at a cost of taka
1108.ID lacs CUS$ 4.25 million).

5.3 Other Administration/Agencies .

Besides the CPA and the PCA a few more administrations/A-

gencies have service-oriented water-craft. These are the
Bangladesh Inland Water Transport Authority CBIWTA),
Bangladesh Water Development Board CBWDB), Bangladesh
Railway CBR),Bangladesh Navy, Police/Army, etc. Among
these Bangladesh Navy, P'olice/Army are beyound the scope
of this paper and the others are as under:

BIWTA is an autonomous body under the ministry of ship­

ping and its primary responsibility is overseeing inland
ports and water-ways. It carries out river conservancy
and river training. River dredging is also undertaken by
it upto a limited extant. Inland Hydrography is also car­
ried out by BIWTA. It regulates the operation of inland
vessels in the private sector.

BIWTA carries out its dredging activities with a small

fleet of 8 modern dredgers. In addition to these dredgers
it also operates 20 survey/inspection vessels,two salvage
tugs,two Buoy laying vessels,ID tugs,one turning vessel
and 3D other service boats.

BWDB is mainly engaged to control the river courses, the

errosion by rivers and maitenance of the coastal embark-
ments. It owns and operates the main dredging fleet of
the country. The fleet consists of 24 modern dredgers.

Bangladesh Railway owns and operates rail-road ferries

35
for transporting the passengers and cargoes acoss the
rivers from the incoming train to the outgoing 'train,
waiting on the otherside of the river. It has a fleet of
four ferries.

36
CHAPTER 6 IMPORTANCE OF SHIP REPAIR FACILITIES

6.1 Preliminery Remarks

The importance of ship repair facilities in Bangladesh is

inseperable from the importance of its shipping. Due to
its complex network of rivers the road transportations
have developed with much limitation and the water-ways
constitute the most important routes for substantial por­
tion of its inland transport system. The water-way is the
most important mode of transportation of commodities,
passengers and vehicles.At present there are more than
4,000 registered .vessels engaged for inland and coastal
transportation .

The economy of Bangladesh is predominently agricultural.

The major exports are volumenous low-freighted raw mate­
rials (mostly jute & jute goods and tea) which normally
do not attract foreign .-shipping lines.This leaves the job
to be done by the national liners to keep the trade ali­
ve. Furthermore, for expanding new trades, especially the
non-traditional items, foreign liners hesitate to trans­
fer their tonnage to these new trades from thier well-
established trades expecting greater risks. This compels
the national liner alone to take care of it. These new
trades also needs encouragement by offering low freight
rates which in the long run may bring profitable gain. A
national shipping fleet with high repair and maintenance
costs will be a burden on national economy and will-be
detrimental to national trade expansion. Therefore, the
ship repair facilities commensurate to national shipping
are essential to ensure an efficient shipping fleet. The

37
importance of these facilities will be considered in this
chapter from the following view points.

6.2 Economic Consideration.

The importance of ship repair facilities from economic

point of view may be evaluted by considering the direct
and the indirect benefits derived from it.

There are various direct economic benefits which can be

derived from this industry. It contributes to the GNP of
the country, earns foreign exchange by carrying out
repair and maintenance works including drydocking of
foreign flag ships.lt minimises the outflow of foreign
exchange by carrying out repair/maintenance works inclu­
ding drydocking of own flag ships. Employment opportunity
is enhanced and helps in diversifying industry. It also
reduces the dependence on foreign yards.

The indirect benefits from this industry also cannot be

ignored. The availability of proper repair facilities
ensures an efficient shipping fleet at a minimum mainte­
nance cost. An efficient and economic repair and mainte­
nance will keep the operating cost of vessel to a mini­
mum. Lower operating cost of vessel will ensure lower per
ton transportation charge.

An efficient.and well-maintained shipping fleet through

efficient maintenance will prevent the drainage of
foreign exchange in the form of freight payment to the
foreign shipping lines and will earn foreign exchange by
transporting goods of other nations.lt will help in pro­
moting national trade by operating on new routes and

38
offering concessional freight rates. Our ships will be
able to make timely despatch of percels to meet overseas
obligations and national needs.It will create a better
bargaining position with competitors in securing competa-
tive freight rate for the country.

6.3 Social Consideration.

Ship repairing is a labour intensive industry. It creates

employment opportunity both directly and indirectly. The
supporting industries are the source of indirect employ­
ment opportunity. More employment opportunity helps to
improve the living standard. In 1974unemployment was
estimated at around 40% out of a total work-force of 20.5
million. The rate of industrialisation is much less than
the rate of population growth C3.4% as estimated in
1983). This has aggravated the unemployment situation
even further. Under this circumstances it is needless to
over-emphasise the importance of creation of employment
opportunity for the country.

Proper repair and maintenance of the inland crafts will

reduce the accidents/casualties (one of the highest in
the world) and thereby, minimise the loss of lives and
properties and will ensure an improved transportation
system. The improved transportation system only, can make
the lives and properties safer in the inland water-ways.
Efficient repair and mainteinance will make life at sea
much easier and ensure safer sea and cleaner ocean.

39
6.A Political Consideration.

A non-alligned developing country like Bangladesh will

feel the danger of economic dependence on foreign ship­
ping services, specially at times of wars or world crisis
as felt by many countries in the past. During the first
and second world wars, every country without a merchant
fleet of its own felt crippled as they were deprived of
sea trade routes. Most of the non-maritime countries were
convinced that a substantial merchant fleet was essential
to their future security. That is why shipping is a stra­
tegic industry. Therefore, the dependence on foreign
yards for its repair and maintenance could be catastropic
at the time of national/international crisis such as war.

40
CHAPTER 7- EXISTING FACILITIES FOR OCEAN-GOING SHIPS

7.1 Chittagong Dry-Dock Limited (CDDL).

The Chittagong Dry-Dock Limited is the only yard in the

country with docking facilities for ocean-going vessels.
It was initiated as a project for ship repair and started
by the then East Pakistan Industrial Development Corpora­
tion (EPIDC5 in the year 1963. Under an agreement signed
by EPIDC with two Yugoslavian firms M/S.IVAN MILUTINOVIC-
PIM and M/S. BRODOIMPEKS for design, construction,supply
and installation of plant and machinery,the work started.
Due to the outbreak of the liberation war the project was
frozen by the government of Pakistan in 1971. In 1973,
the government of Bangladesh revised and revalidated the
main agreement with the Yugoslavian firms. In the revised
scheme, a "New Building" dock was also incorporated to
facilitate the construction of ocean-going ships < upto
16,500 dwt.), in Bangladesh. The project progressed slowly
on the repair dock only and the idea of construction of
"New Building" dock was deferred due to non-availability
of foreign currency in 1979. At this stage it was,decided
to complete and commission the repair dock including the
ancilliary workshop facilities for ship repair only. By
early 1981 the construction of the graving dock including
erection/installation of dock machineries only were comp­
leted. Installation of dock and quay side cranes were in
progress,civil engineering construction of the workshop
was in progress (scheduled to be completed by June,1982)
when the repair dock was commissioned in May, 1981.
Finally, the civil engineering construction of the work­
shop and installation of workshop machineries were comp-

41
leted in June,1985.

The main functions of the yard are firstly, to repair

ocean-going vessels including drydocking upto a maximum
size of 16,500 DWT, secondly, to manufacture steel struc­
tures like trusses of building, power transmission
towers,pressure vessels, tubular piles,railway wagons,
etc. and lastly,ship-breaking to meet the requirements of
scrap for Chittagong Steel Mill Ltd. and others.

The project was undertaken with the following main objec­

tives:

1. To create dierct employment opportunity for 990

persons which include both administrative and
productive (engineers. Naval architects, techni­
cal staff/workers) personnel.

2. To cater drydocking and repair services to the

national flag vessels for saving foreign exchange
and to foreign flag vessels to earn foreign
exchange.

3. With this added facility to increase shipping

activities in the port.

A. By procuring its raw materials from local sources

it will help the expansion of market for the
allied industries.

5. It will help to grow supporting industries and

thus indirectly create further employment scope.

6. By scrapping ships it will reduce the dependence

42 .
 of the naional steel mill on imported raw
mateials. This will also save valuable foreign
exchange.

The Chittagong Dry Dock Limited is situated on the South

bank of the river’Karnafully, East Potenga, about three
miles up the river from Bay of Bengal.

For design, construction, supply and installation of

plant and machineries Bangladesh has recieved co-opera­
tion and assistances from Japan, Yugoslavia and IMO/UNDP.
Both Japan and Yugoslavia extended all out co-operation,
both by funding the foreign exchange component and exten­
ding technical know-how.The financial help was extended
by Yugoslavian Credit C USS 20.7 million -) and Japanese
Credit C US$ 15.00 million approximately ) while the
technical know-how was provided through a Japanese firm
JICA (Japan Industrial Co-operation Agency) and the
Yugoslavian firm M/s. Ivan Milotinovic-Pim. IMO/UNDP
extended necessary financial help in organising training
for technical personnel abroad under one of its Technical
Development Programme projects in Bangladesh.

The physical facilities of the project mainly comprise

of the following three components!

1. The graving dock for dry docking of vessels.

2. The outfit quay for afloat repair of vessels.

3. The workshop complex as back up facilities for

dry docking and afloat repair of vessels in the
outfit quay.

43
The overall dimension of the graving dock is 183 metres
in length, 27.5 metres in breadth and 13 metres in
depth.The maximum size of the ship that can be docked is
174 metres in length, 24.5 metres in breadth. The maximum
DWT of ship is 16,800 tonnes. The maximum allowable draft
for docking is 8.4 metres.

The dry dock is equipped with hydraulically operated bil­

ge support and the safe execution of docking by remote
control operation is performed with the aid of electro-
megnetic signalling system for both keel and bilge sup­
ports. The yard has the provision of variable power supp­
ly in both AC and DC C 440V, 380V, 220V and llOV ) inclu­
ding emergency AC supply.The maximum capacity of dock
side crane is 40 tons SWL (Safe Working Load).All other
normal facilities including high pressure water jet
(7,500 psi) for hull cleaning , airless spray painting
arrangement for ship's hull, etc. are available. The
dewatering of the dock is carried out by three powerful
pumps of 600 tons/hour capacity each. Other ancilliary
pumps such as pump-house drainage pump, dock drainage
pumps, fire pumps are of sufficient capacity and numbers.

The length of the outfit quay for afloat repair is 342 m

where two ships can be accommodated at a time. The ships
at the quay are well served with two heavy duty cranes of
50 tons and 15 tons SWL capacity. The quay is also cove­
red under the "Temporary power Supply" and "Fresh and Sea
Water Supply" net works of the yard.

The workshop complex comprises of two buildings. The lar­

ger building is of 120m.X60m. and equipped with 10 over­
head travelling cranes with lifting capacities ranging
from 3.2 tons to 25 tons. The size of the other building

44
is 60m.X36m. and has a crane coverage with four overhead
travelling cranes with lifting capacity ranging from 3.2
tons to 12.5 tons.

The workshop complex has a considerable number of machi­

neries, equipments and tools for steel fabrication, wel­
dings , various types of metal and wood works as well as
ancilliary machines and equipments to back up the repair
and dry docking of the vessels both in the dry dock and
at the outfit quay. For cutting steel, lever shears,
guillatine shears, hydraulic shears, miscelleneous cut­
ters & saws,semi-auto cutters & saws are used. For wel­
ding and gas cutting purposes besides general type of
welding sets the yard uses TIG welding sets, auto-submer­
ged welding sets,semi-auto gas cutting sets and gravity
welding auto sets, etc.

Among other things the following items are included in

the package of machine tools: Universal lathes ( centre
height upto 910 mm. and centre distance upto 11,000 mm.).
Vertical turning lathes. Universal Milling machines (Feed
LCV 750mm X 270mm X 400mm), Ultrasonic cracks detector,
X-Ray equipments, etc.

The main power supply requirement is met from PDB (Power

C)evelopment Board) sources through three transformer sta­
tions of the yard having the following capacity:

TS-1 Transformer 630 KVA X 3 nos

TS-2 Transformer 630 KVA X 3 nos

and 250 KVA X 2 nos

TS-3 Transformer 630 KVA X 3 nos

45
The yard has got two standby diesel engine driven alter­
nators having the capacity of 225 KVA each.

The present man-power of the yard is as under!

1. Administrative personnel : 225

2. Technical personnel ! 183

Total ! 408

The yard will have the following man-power when it will

be fully commissioned and attain full output capacity:

1. Administrative personnel ! 240

2. Technical personnel :750

Total : 990

At present the technical officers include University

Naval Architects, one Marine Engineer, Mechanical and
Civil Engineers from Engineering University. Most of them
are fresh graduates without any practical experience.A-
bout 50% of the 55 engineers presently employed in the
yard have undergone training in various ship building/-
repairing yards in Europe and Japan for a duration of 3
months to 9 months in each case. It is obvious from above
that the technical workers are much fewer than- actual
requirements. The yard is facing acute shortage of skil­
led and semi-skilled workers both for indoor as well as
outdoor works.

Since inauguration of the yard in May,1981 till January,

1985 the CDDL undertook the repair and dry docking of 50
ships of various sizes upto the maximum capacity of the
dock. In the absance of proper workshop facilities of its
own and acute shortage of technical man-power both in
supervisory as well as workers categories CDDL carried
out the repairs on these vessels in close co-operation
with BSC Marine Workshop, Dockyard and Engineering Works
Limited < DEW ),Narayangang, a sister organisation of
CDDL and utilising the available resources of various
small workshops in Chittagong.

It is noted from the record of the repair services rende­

red by CDDL to the above mentioned SO ships, the follo­
wing nature of works were undertaken by the yard sofar:

1. Normal dry docking works including hull cleaning

& painting,attending sea valves & gratings,un­
shipping rudder, simple maintenance work on rud­
der, withdrawal of tailshaft & propeller and
maintenance works on bo'th tailshaft and propeller
including cracks detection,measurement of wear—
down and renewal of lignum vitae of stern tubes,
etc.

2. Repair and renewal works of damaged / dented /

corroded hull plates, deck platings, plain bulk­
head,bilge keel,etc. of small magnitude. Per day
steel work out put of the yard is still very low.

3. Normal overhauling and maintenance work of wind­

lass, capstain,mooring winches, cargo winches,
derricks,various types of pumps, various engine
components except the ones requiring precision
works and adjustments. Attending anchor and
anchor chains including chain lockers for survey.

From-above it is apperant that CDDL is progressing very

slowly. This slow progress is detrimental to the very

47
objective of this project. The important aspect in this
connection is that for successful operation of this tyype
of industry, lots of allied industries are required as
back up facilities. In the developing countries like
Singapore, South Korea, etc. the ship building and ship
repairing industries are gradually booming under conti­
nued assistance and technical collaboration from develo­
ped countries and simulteneous creation of allied indus­
trial facilities. Contrary to this fact, the Chittagong
Dry Dock is just in the take-off stage and it is not pos­
sible to derive much utility out of the machineries,and
workshop facilities for meeting the repair requirements
or to expand the present repair activities unless the
necessary technical know-how is acquired / made available
and the skills of its floor level technicians are deve­
loped. In this direction CDDL has undertaken a project
financed by IMO / UNDP to employ 9 foremam level techni­
cians from abroad with two-fold objectives, firstly to
reorganise and run the day to day repair/dry docking
works of the yard and secondly, to train up Bangladeshi
floor level technicians with them. The Bangladeshi
technicians so trained are expected to take over the res­
ponsibility from the foremen appointed from abroad.

It is a standard practice in various ship repair yards in

both developing and developed countries that for specia­
lised items such as turbo-chargers, fuel pumps, governors
hydraulic hatch covers handling equipments, electronic
equipments used on board,etc. are overhauled / serviced
either by the maker's service engineers or by makers'
authorised service stations who are readily available on
short notice. But in Bangladesh these services are not
readily available either due to the lack of suitable
infrastructure of these industrial facilities within the

48
country or due to the lengthy official procedure of
bringing the technicians from abroad. It is just impos­
sible to get somebody from abroad on short notice under
the present official procedure. Presently CC)DL is trying
to reach agreement with nearest servicing agencies of
various manufacturers for renowned main propulsion engi­
nes and auxiliary engines,turbo-chargers,LSA and FFA
equipments, governors, hydraulic hatch cover,1 ife-rafts,
navigational' equipments, etc. for obtaining their specia­
lized services on case to case basis as and when requi­
red. CDDL has also requested concrened Government Depart­
ment to formulate special procedure for CDDL urgently so
that these services can be made available from abroad on
short notice.

In addition to foregoing,some more facilities which will

be mentioned in the following paragraphes have to be made
available as soon as possible to optimise the output of
CDDL.

There should be arrange^ients for carrying out of Des­

tructive and Non-Destructive Tests and issuing certifi­
cates , testing and certifying the cargo gears,standared
metallocking methods of repairing damaged engine compo­
nents , testing & refilling with certification of carbon
dioxide bottles and testing of carbon dioxide system on
board.

At present the compressed air requirements of the yard

are, met from portable diesel compressors. This is quite
expensive and at times hinders the progress of work due
to limitation of supply. The entire yard including the
outfit quay should be brought under a centrally installed
compressed air supply sys-tem.

49
The present fire fighting arrangement in the yard is far
from satisfactory. Presently the yard has only portable
fire fighting appliances of its own and requisitions the
services of the local fire brigade located in Chittagong
city area at a distance of more than 10 km. from the
site. This is quite expensive for the ship owner and the
arrangement itself cannot be termed as healthy. CDE)L must
have its own fire-fighting and safety depertment with
trained personnel and necessary equipments to combate
various type of ship board fire as well as fire in the
yard premises.

The frequent power failure in PDB's supply.system causes

loss of man-hours and delays the works in the yard. This
reduces output of CDDL side-and causes financial loss to
the ship owners by delaying the vessel in the dock. It
will be expedient to emphasise on PC)B to ensure uninter­
rupted power supply to ensure optimum out put of the
yard. In case it cannot be ensured from PDB then CE)DL
must go for its own bigger power plant to meet the requi­
rements. This will obviously involve huge capital expen-
dituire. Therefore, CE»E’L should try to avoid it by thru­
sting upon PDB to ensure adequate and uninterrupted power
supply. If need be, higher government instruments may be
made involved in it for the sake of greater national
interest.

Until such time as allied industries grow within the

country CDDL in its own interest should ensure the smooth
supply of the essential ship repairing materials such as
'Ship Building Quality' steel, lignum vitae wood, white
metal, chemicals / gases, etc. by importing same from
abroad.

50
The yard should have sufficient essential working tools
and accessories such as scaffoldings for stagings,pneuma­
tic tools, blowers, etc. suitable and very essential for
working on board tankers. The yard also should recruit
more technical workers and arrange a training programme
for them without further delay.

The project was initially appoved by the government in

1964 with estimated total cost of taka 646.34 lacs
<US$13.47 million) with a foreign currency component of
taka 337.67 lacs <US$ 7.00 million). The scheme was ini­
tially revised in 1975 and finally revised in 1981 with a
new estimated cost of taka 11840.87 lacs (1)5$ 59.20 mil­
lion) including a foreign currency component of taka
5011.56 lacs <US$ 25.10 million).

The project was under construction up to 1983—84 and the

financial year 1984-85 has been taken as trial production
year. The total income of this year was taka 449.01 lacs
CUS$ 1.8 million). The total expenditure has been estima­
ted at taka 1408.40 lacs <US$ 5.60 million) out of which
the direct expense was only taka 332.77 lacs CLJS$ 1.34
million) and the remaining was the overhead (fixed expen­
diture) expenses. Out of this fixed expenditure the "In­
terest on Loan" constitute taka 923.65 lacs (LJS$ 3.72
million) and the depreciation is taka 143.00 lacs (US$
0.58 mil lion).

From above it may be obseved that the project has gone

into operation with a huge amount of debts.These debts
will continue to increase every year by adding the inte­
rest on loan to it. Under the present fianacial position
the project cannot be made economically viable at this
stage of technological development in the country as a

51
whole. But from the national point of view its vital
importance cannot be denied. Therefore, for its survival,
the following suggestions may deserve fevourable conside­
ration of the government.

Firstly, the total cost of the project should be to be

reduced by reimbursing the amount of interest charged on
Debentures,and the interest on funds released during pre
and post liberation periods amounting to taka 2489 lacs
CUS$ 16.59 million). The total liability on account of
Debentures of taka 1263 lacs <US$ 4.21 million) including
the interest thereon, may be paid by the government and
converted into Equity. As per the present projection the
project is unable to repay its debt—service liabilities
on account of long term foreign loan within its 10 years
of operation. Therefore, this may be taken care of by the
government and be treated as interest free loan till the
financial position of the yard is improved.

Secondly, the interest rate on 5th. and 7th. Yen Credit

may be reduced from relending rate of 10% to the actual
protocol rate of interest at 1.87% per annum for the 5th.
and 1.25% per annum for the 7th. Yen Credit respectively.

Thirdly,The ship repairing materials should be allowed to

be imported free of custom duty and sale tax as it was
till 1982.

Finally, the salary and other benefits payable to the

employees may be improved by keeping this organisation
outside the perview of the National Pay Commission as has
been done in the case of the National Shipping Line and
Air Line. Full commercial autonomy should be allowed to
the Management of the yard for taking prompt decisions on

52
the face of commercial needs. The management should also-
be empowered to enter into direct agreement with other
shipyard / organisation for technical and industrial col­
laboration on renumeration and commission basis. Promo­
tional / Marketing activities should be enhanched.
The construction of a "New Building" dock is in the futu­
re programme of the project. The date of commencement of
work on this dock has been deferred by the government due
to non-availability of funds, especially the foreign
exchange component of it. A committee for making asse—
sment and recommendations for improvement and expansion
of existing .ship repair facilities in Chittagong port was
constituted by the government on the 10th. of December,
198A of which the author was a member. A recommendation
of this committee was that CDDL should take necessary
steps for construction of a second bigger dry dock to
facilitate the docking and repair of larger vessels which
are expected to call at the port of Chittagong on comple­
tion of its project titled "Construction of Multi-purpose
Berths" and deepening the channel in 1986. The recommen­
dation is under consideration of the government and a
decision in this respect is expected soon. However, under
the future development programme the yard is to carry out
the following:

The yard to develop sufficient technical know-how and

recruit required technical workers to undertake all kind
of,precision repair works generally expected to be done
by the yard such as hydraulic system, eletronic equip­
ments, servicing of turbo-chagers,governors,fuel pumps,
fuel injectors,etc.

The yard will procure one in-situ crankshaft grinding

machine and universal wood working machine, as well as a

53
combined circular wood working machine to undertake pre­
cision wood work including sizing of lignum vitae wood.
CDCiL is to extend its repair facilities through mobile
squads to the ships at outer anchorage too.

54
t
7.2 B.S.C.Marine Workshop

The government alloted to B.S.C. the abandoned marine

workshop namely M/S. Eastern Marine Engineering Works
Ltd., Chittagong vide Ministry of Ports, Shipping & IWT's
letter No. 2<24)/73-SH—1/592 dated 25.8.1974. As per pro­
visional inventory of assets and liabilities of the
workshop made at that time it was observed that the net
assets were valued at taka 5.00 lacs <L)S$ 0.038 million)
approximately. Keeping in view the requirements of B.S.C.
with the expansion of the fleet .over the time, it was
decided by the authority to Cindertake a project for ove­
rall renovation/modernisation of the existing kutcha
construction through * planned construction of a workshop
complex with provision for administrative office accommo­
dation and other ancilliary facilities.The available land
in the site was not sufficient to accommodate the entire
project as envisaged. The Chittagong Port Authority was,
therefore,approached for extending lease of an additional
land of 20,000 sft. from CPA market adjacent to the work­
shop site to set up the full fladged Marine Workshop with
modern facilities. The CPA agreed to lease out the same.
On the basis of this the Project-Proforma <PP) of the
project titled-'BSC Marine Workshop, Chittagong' was
revised on 26.8.78 and got the approval of the Honourable
Minister for Planning on 13.10.1980 at an estimated total
cost of taka 269.38 lacs <US$ 1.68 million) with a
foreign exchange component of taka 131.77 lacs <US$ 0.82
million). The project was scheduled for completion during
1979-80,but it was not completed by the envisaged target
of the 30th. June,1980. This was due to the fact that CPA
could not give the possession of the land to BSC within
the stipulated time. By this time the project was consi­
dered to have implimented upto 87% incurring a total of

55
taka 222.47 lacs CUS$ 1.30 million) including the foreign
exchange component of taka 135.51 lacs <US$ 0.85
million). As per decision taken in the review meeting
held in the Administrative Ministry on 25.2.1980 the pro­
ject was closed at this implimented stage which was ter­
med as Phase-I and rest of thp project (termed as
Phase-II) was taken up during the Second Five Year Plan
CSFYP) under a seperate Project-Proforma. Finally, the
additional land was taken over from CPA on 17.10.1983 but
the PP is still awaiting the approval of the Ministry of
Planning.As soon as the approval is accorded BSC will be
able to accommodate/reorganise a few shops with all
modern facilities under this project which could not be
accommodated in the available space under Phase-I.

The main functions of the workshop are as under:

1. To undertake the repair and maintenance works on

board BSC vessels.

2. To undertake a limited amount of repair works on

foreign flag ships on request as per its fixed
tarif f.

3. To repair the grain conveyor machines owned by

BSC.

4. Repairing and servicing the cars . and trucks in

the fleet of vehicles of BSC and repairing and
servicing the office appliances such as air coo­
lers, water coolers, etc.

The project was undertaken with the folloing main objec­

tives. Firstly, to cater for uninterrupted repair and

56
maintenance services tc the BSC ships which in turn will
increase the turn-round cf the fleet. This will alsc keep
the operating cost of the BSC fleet to a practical mini­
mum by rendering economic and efficient services. Second­
ly, It will save the valuable foreign exchange which
would have been otherwise incurred abroad due to lack of
facilities in the country. Also to generate additional
revenue through repairing other vessels. Thirdly, to
create employment opportunity and to facilitate "on the
job training" for the workers, technicians and jounior
engineers. Finally, to develop management experience
among senior engineers and administrators.

The workshop is located at Saltgola, Chittagong,on the

northern bank of Moheskhal, 300m. from the bank of the
river KarnafLilly and on the eastern side of the Chitta-
gong-Potenga highway. Both road and water-ways connection
with the port area made the location most suited for
attending ships in port.

During renovation/modernisation of the workshop under

phase-I development programme one expert from Norway was
engaged under NORAD assistance.The expert assisted BSC
Management in reorganising the workshop including the
planning of the workshop lay-out.The expert was attached
to the project for a period of three years.The other aids
recieved from the government of Japan under "Yen
Credif'in funding' the foreign exchange component of the
project for procurement of machineries and installing/-
commissioning these machineries by Japanese technicians.
Thes technicians also trained up local technicians for
smooth operation and mainrenance of these machines.

The workshop comprises an area of approximately 110,ODD

57
square feet including the additional land acquired from
CPA for implimentation of Phase-II development plan.The
following are the brief description of the facilities
available in the workshop.

The Machine shop is located in the newly constructed main

building covering the major area of the ground floor. The
shop is very wel1—equipped. Besides normal lathes,dril­
ling, milling,shaping machines,etc. the shop has a
crank-shaft grinding machine, horizontal and vertical
boring machines. The shop does meet the requirements of
BSC fleet. The crank-shaft grinding machine is utilised
by undertaking outside jobs also. The shop does not have
a fixed overhead crane coverage.However, a mobile crane
of 3 ton capacity and a forklift with rotating jib crane
having a capacity of 1.5 ton serve the machine shop as
and when required.

The Bench Fitting shop is also located in the main buil­

ding beside the machine shop. The shop is equipped with
the working benches fitted with necessary tools and has
sufficient hand tools. Dismantling, overhauling and
assembling of various types of valves, pumps, gears,stuf­
fing boxes,etc.are carried out in the shop.

The Electrical shop is temporarily housed in the old

kutcha constructed shed. The shop is equipped with neces­
sary equipments to undertake overhauling, maintenance
works and rewinding/ baking and drying of various sizes
of electrical motors,generators and alternators normally
used on board ships.The shop so far handled rewinding job
of alternator upto 800 KW capacity.The shop meets the
requirements of BSC fleet.The shop is expected to be
reorganised and housed in the new premises on the newly

58
acquired land under Phase-II expansion plan.

The Foundry shop is equipped with a furnace of crucible

type. The shop is capable of casting upto 0.5 ton at a
time. It normally carries out casting of both ferrous and
non-ferrous metal. Generally, valves, pumps body, impel­
lers, rings,etc. are casted in the shop. The shop is
located in the old shed.

The carpentry shop is moderately equipped. At present the

shop is houesd in a temporary old shed inherited on the
newly acquired land.The shop does all the carpentry jobs
required for BSC fleet including making office furniture
both for the office as well as ships.

The Refrigeration and Air Conditioning shop is equipped

and mainly engaged for repair and maintenance works of
ship board refrigeration and air conditioning plants. It
also undertakes the repair and maintenance works of the
domestic refrigerators and water & air coolers used in
various establishments of BSC.The shop is located tempo­
rarily beside the carpentry shop.

The Blacksmith shop is modestly equipped and has among

others one smith-heart, one power hammer and one heat
treatment furnace.The shop is small but dedicatedly mee­
ting the needs of the fleet.The shop is located in the
temporary shed.

The out-fitting department is located in the open shed in

front of the main building where the machine shop is
located.The department includes the thin plate shop, pipe
shop, welding shop and steel shop. The thin plate shop is
equipped for doing normal thin plate/out fitting works

59
such as fabricating/repairing different covers, hatches,
air ducts, small tanks,ladders,lockers,etc. The pipe shop
is equipped to outfit/repair various types of piping
system such as fresh water and salt water system,sanitary
system, lubricating and hydraulic system, fuel oil and
cargo oil system,etc.

The welding shop is well-equipped for manual welding and

automatic & manual gas cutting operations.The welders
working in this shop are also engaged in the thin plate
shop, steel shop and on board ships for repair work. Wel­
ding shop is one of the busiest shops. The steel shop is
mainly engaged for renewal of hull plates and deck pla­
tes. A certain amount of pre-fabrication is also done in
the shop.

The central store of the workshop is located in the old

shed beside the present electrical shop.The store stocks
various materials and tools used for day to day repair
and maitenance works carried out on board ship.Stores are
arranged on "Bin-Card" system and the replanisahment is
made at a predetermined low level of stock.

The automobile shop is modestly equipped and engaged in

normal repair and maintenance works of automobile fleet
of BSC.

The Outdoor Operation Department,is engaged as the name

implies for carrying out repair and maitenance works on
board ships.The workers are detailed in groups headed by
one foreman for every ship to be attended in port/repair
berth.They also work on board ships, under going dry doc­
king in CDDL.

60
The workshop has got two motor boats of its own for
transporting men and materials to the ships at river moo­
rings and anchorage. A fleet of trucks transport the men
and materials to the ships at berths as well as at CDDL.

The workshop is manned by 10 officers, 42 office staff

and 125 technical workers in its permanent employment.
About 300 casual technical workers are also employed as
and when required depending on the number of ships to be
attended in port.

As regard to the development programme it has been men­

tioned earlied that BSC has got the possession of the
additional 20,000 square feet of land from the adjacent
CPA market place on 17.10.83. The project proforma titled
"BSC Marine Workshop, Phase-II" is already under submis­
sion to the government for approval. BSC will reorganise
the air conditioning and refrigeration shop,carpentry
shop, electrical shop, bonded warehouse and canteen,mason
shop/locksmith shop and the battery shop in the additio­
nal land and the land where these shops are presently
located. Once these shops are reorganised and equipped
with additional equipments as envisaged in the PP the
workshop will be capable of meeting the needs of BSC
fleet and earn additional revenue by rendering services
to other ships upto a limited capacity.

61
7.3 Facilities for Ocean-Going Ships in Private Sector

No large scale marine workshops have so far been estab­

lished in private sector for catering repair/dry docking
of ocean-going ships in Bangladesh. About 20 small scale
workshops have come up in private sector which are enga­
ged in repair and maintenance works on board ocean-going
vessels. These workshops are scattered in Chittagong,
Khulna and Mongla/Chalna area. Among these comparatibly
large ones ares
- M/s. Mariners' enterprise (Pte) Ltd.
- M/s. H. Akbar Ali $ Co.
- M/s. Ship Repair (Bangladesh) ltd.
- M/s. A. a J. Main & Co.
- M/s. Nou-Prokousal Karkhana
- M/s. Marine Traders
- M/s. Turner Grahams & Co.
- M/s. Kazi Electric Service
- M/s. Bina Electric Service
- M/s. Al-Katim Electric Service

The above workshops are located in Chittagong.

- M/s. Nau Karigar

- M/s. Moslem Engineering
- M/s. Sagar Engineering
- M/s. Bright Engineering

The above workshops are located in Khulna/Mongla area.

Out of all these workshops only two i.e. M/s. Mariners'

Enterprise (Pte) ltd. in Chittagong and M/s. Sagar Engi­
neering in Khulna are managed by qualified Marine Engi­
neers. The others are managed by uncertificated sea-going

62
engineers or just diesel mechanics having experience on
board ships.

With the very limited facilities available these work­

shops can undertake limited plate renewal works, casting
of bearings of small sizes and machining of small
parts,electrical repairs including overhauling and rewin­
ding of medium size electrical motors and alternators.
Overhauling and maintenance works of ship board machine­
ries including main engine components,pumps,valves,etc.
Renewal/repair of ferrous and non-ferrous pipes and
trouble-shooting of air-conditioning and refrigeration
system are undertaken.

63
CHAPTER S - EXISTING FACILITIES FOR INLAND VESSELS

8.1 BIWTC Dockyards

The dockyards and the workshops presently owned by BIWTC

were inherited from its predecessor organisations. These
are being used in principle, to meet the requirements of
the BIWTC fleet. The following are the dockyards and
workshops under the control of BIWTC:

1. Dockyard No.l
2. Dockyard No.2
3. Dockyard No.3 .
4. Dockyard No.4
5. Khulna Base workshop
6.. Chittagong base workshop

The Dockyard No.l and the Khulna Base workshop were

established by M/s.Indian General Navigation Co. Ltd. and
River Steam Navigation Co.CIGN & RSN) in the year 1928.
Dockyards Nos.2,3 and 4 were established by private
owners during forties and fifties. Only the Chittagong
Base Workshop was established by BIWTC itself. These
yards were established mainly to cater for repair facili­
ties to the craft owned by the parent organisations which
were mostly driven by Steam Reciprocating Engines using
coal as the source of energy.All such vessels either been
dieselised or replaced by diesel engine driven vessels.
But the existing ill-equipped age old dockyards and
workshops have not been modernised or moulded to meet the
requirements for repair and maintenance of diesel driven
vessels.Therefore, great difficulties are being encounte-

64
red in carrying out proper and expeditious repair of ves­
sels. This causes the under utilisation of the fleet to
start with,and ultimately declaring the vessels to be
beyond economical repair.

All the dockyards are located in Narayangang on the

eastern bank of the river Sitalakhya.

The existing facilities of these yards are considered

here seperately.

Dockyard No.l

The yard comprises of a total area of about 400,000

sq.ft, with a water-front of 106D feet.

A floating dock built in the year 1945 attached to this

dockyard is moored one and a half mile away from the yard
due to water depth limitation around/at dockyard site.
The floating dock has the following particulars:

Length (B.P.) - 196'—D3''

Platform projection - 46'—08"
Breadth - 61'-00"
Primer - 50'-06"
Depth 5'-07"
Capacity - 750 tons

A multiple carriage slipway about 355 feet long and 245

feet wide, was under construction. The construction was
halted in early seventies and the slipway has never been
completed and put into full operation. However, through
manual hauling or "Monsoon Docking" repair work is being
carried out on this slipway. A vessel weighing 200. to 250

65
tons, supported on 4 carriage, is the heaviest load so
far placed on this slipway. At present the slipway is
equipped with only 4 carriages although it is supposed to
have 8 carriages when completed.The slipway is yet to be
brought under crane coverage. The angle of inclination of
the slipway is 1:9 and the designed low water docking
draft is about 4 feet.

Besides the floating dock and the multiple carriage slip­

way the yard has the other shops to back up the repair
facilities as stated hereunder:

The machine shop is housed in.three buildings and equip­

ped with various types of machines such as lathes, dril­
ling machine,mi 11ing, crankpin grinding, tool grinding,
boring machine and planners.But these are old out dated
and in diplorable condition. Under a renewal programme a
good number of machines were imported in the year 1976
against IDA (International Development Aids) credit out
of which only two lathes, one milling and one gellutin
machines have been installed. One vertical and one hori­
zontal boring machines have been partially installed but
not commissioned.Further installation of the machines
have been postpond till reorganisation is finally planned
under the modernisation scheme.

The carpentry shop is located in a very congested space.

It has got wood sawing, wood planning and wood turning
machines.These machines are very old and poorly maintai­
ned . , ,

The plater shop is located in a very inconvenient place

having no machineries/equipments except one old multipur­
pose shearing machine and a local made roller machine

66
(both belt driven). The plate shop should be as close as
possible to the slipway. The fitting shop contains no
machines/equipments except a few tables.

Very old transformers are being used in the welding shop

for arc welding and the gas sets are also very old. All
transformers but one are AC operated while the emergency
power supply is DC. This reduces the welding capacity
during main power failure which quite frequently occures.
There is no proper storing arrangement available for
electrodes. The shop is housed in a low tin shed.

The moulding shop is equipped with three furnaces of

which two run on coke while the third one burns oil.None
of these can be fully utilised due to scarcity of hard
coke and proper crucibles.

The electrical shop is also housed in a congested place

and the imported testing machines could not be installed
due to lack of space. Rewinding of motors and dynamoes
are being carried out manually.The coppersmithery shop is
very small and inadequate for the requirements.

There is no designated place for the Internal Combustion

Engine shop and Equipment Repair/Servicing shop in the
present arrangements of the yard.These are very important
shops in view of present day nature of propulsion system
in practice.

General services such as compressed air supply, fire

line, emergency electric supply/transformer stations,
general lightings and communication systems are available
but not adequate.

67
The yard is manned by 27 officers, 36 office staff and
331 operative staff.

Dockyard No.2

The yard comprises an area of 1,100.000 square feet and

has a water front of approximately 860 feet including the
slipway. Berthing facilities are inadequate ,but this yard
at present serves as the major repair and docking yard
for BIWTC fleet with its slipway which is the only
mechanised one among the BIWTC yards. The slipway has the
following particulerss

Length - 290'-00"
breadth - 190'-00"
Lifting capacity - 1000 tons.
Nos.of carriages - 8
Electrcally operated.
Low water draft for ships to be docked in dry season
is about 5 feet.

The yard has the fallowing main shops to back up the

repair activities carried out here:

The machine shop is located in a building where a number

of other activities are also accommodated. The physical
condition of the building itself is good,however it lacks
crane facilities. The machine park includes lathes, dril­
ling machines, grinding machine and cold saw. Tools and
machines for tool manufacturing are inadequate.

There is no separate Internal Combustion Engine shop for

carrying out repair and maitenance of diesel engines. The

68
work is being carried out in one corner of the machine
shop.There is a acute shortage of proper instruments,spe­
cial tools and benches for working in the I.C.E. shop.
Even the fuel pumps and fuel injectors are overhauled in
open space in this shop.

The Fitting shop and the Carpentry shop are also accommo­
dated in the Machine shop.There is no machine/equipments
in the fitting shop except some working benches. Housing
the carpentry shop here creates lots of problems through
fouling the machines by saw-dust.

The Blacksmithery shop is sufficiently equipped including

a forging hammer to meet the requirements.The electrical
shop is seperately located but hradly there is any usefu-
1 equipment in this shop. Rewinding of motors and dyna—
moes are done manually. The welding shop contains suffi­
cient number of electric welding sets, diesel transfor­
mers and gas sets for cutting and burning. The equipments
are not properly maintained.

There is much to be desired from the general services

such as supply of compressed air, water/fire lines,li­
ghting system, internal communication system,etc.

The yard is manned by 15 officers, 44 general office

staff and 165 operative staff.

Clockyard No.3

The dockyard comprises of an area of approximately

144,000 square feet with a water front of about 340 feet.
It has two slipways. The particulers of the slipways are
as under:

Particulers Na.l No.2

Length 346' 343'

Breadth 30' 24'
Lifting capacity 300 tons 100 tons
Low water draft 7' 7'
Slipway winch Manual Manual

A plant for Fibre-glass boat production is located within

the premises of this yard. At present it carries out
repair works on the fibre-glass boats. The spare capacity
of the plant is utilised by manufacturing fibre-glass
chairs for local market.

Among other facilities the machine shop is located in a

building with limited space available for the purpose.
The machine bank contains limited amount of normal equip­
ments such as lathes, drilling and milling machines,sha­
per machine,etc. These machines are old and badly main—
tained ones.There is a shortage of working tools also in
this shop. The shop does not have a fixed crane coverage.

The repair shop/fitting shop is also housed in the same

building as the machine shop with very limited space for
it. The shop is equipped with working benches but there
is a shotage of working tools.Optimisation of output is
greatly,hampered due to the absence of modern and updated
working tools.

The welding shop and the electrical shop do exist in the

yard.These hardly got any equipment which can be taken
into account. Most of the equipments are in a very bad
shape. These shops need immediate attention.

70
The steel working hall does not have fixed crane covera­
ge.The steel stockyard is located closeby, but transpor­
ting facilities are of primitive class.The shop does not
have any modern steel working equipment such as press/ed-
ge preperation machine etc.

The dockyard is manned by 9 officers, 36 general staff

and 150 operative staff.

Dockyard No.4

This is the smallest of all the 4 yards owned by the

BIWTC. There are two slipways in this yard and the parti-
CLilers of these slipways are as stated below:

Length 150'-00" each.

Breadth 9'-06" each.
Slipway trolliesCwith wire) 2 nos.
Winch with motor 2 nos.

The dockyard has got shops having a skeliton number of

machineries and equipments. This yard is employed to car­
ry out the running and maintenance works of 16 ferry
boats,4 inland passenger vessels, 3 Sea trucks, 2 harbour
duty launches, one tug boat and 8 motor boats of BIWTC
fleet. The annual power consumption of the yard is about
40,000 KWH'.

The yard is manned with 6 officers, 27 office staff and

73 operative staff.

A field survey in Bangladesh was carried out by a Norwe­

gian Consulting firm, M/s. Shipping Research Services

71
<SRS) ,Norway to suplintent the "Feasibility Study on coo­
peration between Bangladesh and Norway in the field of
Inland Water and Bay-Crossing Transport" in 1976. The
consulting firm in its report stongly recommended the
need of modernisation of the BIWTC dockyards through
improvement/ upgrading the facilities. Accordingly a Pro­
ject Proforma for the modernisation of the yards at a
cost of taka 727.50 lacs <US$ 4.85 million) was included
in the Annual Development Plan <ADP) of 1976-77 and car­
ried over to the subsequent ADPs. The project envisaged
two major components vis.

1. Modernisation and Improvement of Dockyards

2. Consultancy/Expart services for Dockyard Manage­
ments .

No assistance was available for component Cl) above.

However, IDA assistance for an amount of US$ 0.625 mil­
lion was made available for component C2) and the work
was carried out by a consulting firm, namely M/s.Louis
Berger International, USA. The report submitted by the
firm is available with the Ministry of Shipping.

To meet the requirements of the statutory bodies and the

classification societies BIWTC at present requires to
dock and carry out repair of about 14 ships per month.The
existing facilities in the BIWTC dockyards allow only 3
dockings in average per month. As a result the vessels
are often operated without proper maintenance. This leads
to a state where vessels are finally declared as beyond
economically repairable and declassed. The poor state of
maintenance of the fleet, specially the under water hull
will increase the operating cost and decrease the effi­
ciency of the fleet, particularly in terms of operational

72
time.

It has,therefore, become very essential to carry out pro­

per rehabi1itationm and modernisation of the dockyards to
make these yards capable of meeting the present day
requirement of BIWTC. Realising the situation finally it
was decided in a review meeting chaired by the Secretary,
Ministry of Ports,Shipping & IWT on 7.10.84 that a tho­
rough study should be carried out by the technical per­
sonnel of BIWTC to re-assess the extent of modernisation
of the dockyards required on the face of the changed ope­
rational environment and the optimum size of the BIWTC
fleet.

Accordingly, a survey/study has been carried out and a

report has been prepared in two parts by the technical
personnel of BIWTC. The two parts of the report cover the
following points;

Part I contains:

1. Existing faclities
2. The repair works carried out during last two
years.
3. Cost of repaires and estimated cost for the same
repair works had it been done by out side yards.

Part II contains;

1. The modernisation and improvement proposal.

2. The estimated cost for the proposed improvement.
3. The benefit expected out of the improvement.

The report is under submission to the government and

73
awaiting project approval including the arrangement for
financing the project.

S.2 Khulna Shipyard Limited

The idea of building a modern shipyard at this South

Western part of the country was concieved in early fif­
ties when there was no organised facilities available
either for new building or repairing of various types of
river crafts in this part of the country. Under the
directive of the government the then Pakistan Industrial
Development Corporation (FIDO engaged M/s. Stulcken
Sobin, Hamburg, a consultancy firm to carry out a feasi­
bility survey for establishing the yard. Based on the
report of the consultant the construction of the shipyard
started in 1954. The shipyard went on operation on the
27th of November,1957 through inauguration of its slip­
way. However,the project was finally completed in
June,1967 at a cost of taka 433.13 lacs <US$ 9.12 million
approximately).

In the initial days, the yard had to face a lot of diffi­

culties specially due to the lack of technical know-how.
At the • begining the yard started its operation with the
help of the consultant whose contract expired at the end
of 1957. There after another consultant was engaged who
worked till March,1967.Since then the yard is managed by
local technical personnel.

The shipyard is located on the Western bank of the river

Rupsa at Qazi Bacha in the South end of Khulna town.

The shipyard was established under the industrialisation

74
programme of the country and has the following objecti­
ves :

1. To design and construct various types of river

crafts suitable for the river condition of the
country and updated requirements.

2. To extend repair and maintenance facilities inc­

luding docking to inland and coastal vessels.

3. To create employment opportunity.

'4. To meet the requirement of shallow draft vessels

of the country and to save foreign exchange which
otherwise would have been spent in procuring same
vessels.

The yard covers an area of 6S.97 acres of land. The main

river side frontage of the yard is about 1,800 feet of
which the slipway end covers about 300 feet. A repair
basin has been excavated at its southern end with 950
feet steel piled frontage with minimum water depth of 15'
at low tide to be maintained by dredging.

The slipway can side launch or retrieve vessels upto 275

feet in length and 750 tons in weight.The designed car­
riage load of the slipway is 2.5 tons/foot. It is also
learnt that the slipway carriage at times was subjected
to 4.5 to 5 tons running foot local loads from vessels
been docked.This overloading caused some heavy deforma­
tions to the slipway carriage. Such practice of overloa­
ding the carriages should be abandoned and the slipway
should be used within its designed capaccity i.e. 2.5tons

75
per foot evenly distributed load along the 275 feet
length unless necessary precautions are taken. It is
understood that when the yard was designed this somewhat
low capacity was taken into account and provision of a
dry dock for heavier vessels were foreseen. The construc­
tion of the dry dock, however, was not materialised due
to heavy sedimentation,very bad subsoil conditions and
doubtful economic viability under the prevailing circum­
stances.

The wide-spread layout of the yard which is an advantage

for future development makes the lines of communication
within the yard rather long. The transportation of men
and materials is consequently time consuming. The basic
idea of the general layout is to utilise the slipway and
the side tracks for building and repairing of river
crafts and barges, also to utilise the proposed dry dock
for repairing of tugs and coastal vessels.

The steel workshop is located at the head of the slipway

indicating that the northern part of the side tracks were
considered for new building activities. While the repair
works to be concentrated on the southern side tracks,with
the shotest line of communication to the machine shop,—
carpentry shop and the main store.

The Machine shop is located in the southern part of the

machine shop building. The machine shop building has
three bays which give adequate space for the activities
taking place within the shop. The second bay has a .10 ton
overhead crane coverage.The equipments available in the
shop are capable of meeting the requirements of the type
of works such as machining the propeller and propeller
shafts & 1inings,rudder shafts, rudder 1inings,couplings,

76
stuffing boxes, brackets for propeller shafts and all
other normal machining jobs connected with ship building,
ship repairing and industrial works.

The Foundry shop has modern equipments.lt is • presently

doing industrial production such as casting centrifugal
pumps for Bangladesh Agriculture Development Corporation
in addition to the works of the shipyard itself.

The primary functions of the out-fitting & engineering

department are to install, complete and test all the main
and auxiliary machinery, other connected systems to ensu­
re that the finished vessels comply with the given speci­
fications . This means the department is mainly engaged in
New Building projects. However in Khulna Shipyard this
department is also engaged in ship repair works and the
following shops are organised under this Department:

- Pipe shop
- Electrical shop
- Engine repair shop
- Thin-plate. shop
- Fuel pump testing shop
- Carpenter shop

All these shops but the carpenter shop are located in the
same building on the side of the machine shop. The car­
penter shop is located in another building nearby.This
shops are reasonably well-equipped with various types of
equipments. However,the general tools for these shops
are placed in different areas which should be located in
a central tools store.There is much to desire as to the
maintenance of the machines/equipments in these shops.
Some of these equipments need replacement which should be

77
carried out at the earliest.

The steel stockyard is located in the axis of the plate

shop on its southern side. Steel materials are being
transported to the steel workshop by the overhead crane
of the steel shop. The total area of the steel stockyard
with crane coverage is about 1,800 square metres. There
is a proposal under consideration to increase this crane
coverage by another 1,200 square metres.

The steel workshop (Platers' shop) is located in between

the slipway head and the steel stockyard.The existing
machines, tools and equipments for steel forming are in
good condition and sufficient for present need except for
a frame bender which should be procured under development
project.

The present method of steel cutting/edge preperation is

by manual gas cutters and shears. A suitable optically
controlled gas cutter will definitely improve the situa­
tion. The shop has a 5 ton overhead crane coverage.

The existing l*lold-loft/office is located adjecent to the

steel cutting area. Neither the size ( 8m X 23m ) nor the
quality of the present mold-loft floor meets the basic
requirements of the trade.For improvement of steel works'
quality and output, it is essential that the accuracy is
greatly improved.

The Building berth/Section assembly hall comprises of

four side tracks on each side of the slipway and being
used for construction of new ships. Two M.A.N. cranes of
5/3 ton capacity and one 8/5 ton capacity serve the side
tracks. Trolley tracks are provided on each end of the

78
steel workshop for the transportation of the pre-fabrica­
ted materials to the side tracks. A proposal for building
a section assembly hall of 2Am x 60m with 2 x 15 ton
overhead crane coverage,covering the upper north side
track is under consideration.

The welding shop is equipped with sufficient number of

equipments to meet the yard's requirements. But many of
the equipments are very old and need replacement.The dra­
wing shop of the yard is headed by a Naval Architect and
is equipped with all necessary tools and equipments.

The electric power supply is arranged from Power Develop­

ment Board source. Frequent power failure C on an average
one hour per working day of 8 hours ) is a major problem
for the yard.To invest in installing a new power genera­
tion plant capable of meeting the total power need is too
expensive for the yard to undertake. Therefore, PDB to be
approached to solve/correct this problem. The yard is
covered under the centralised compressed air supply
system which needs to be maintained regularly. The oxygen
and acetyline gases for cutting and welding operations
are supplied in cy1inders.The transport roads of the yard
need maintenance and repair to be carried out.

The man-power of the yard comprises of 43 technical offi­

cers, 80 non-technical officers, 287 administrative
staff,598 skilled workers and 156 semi-skilled workers.

At present the yard is engaged mainly on New Building for

various agencies and private owners,conversion works
mainly on BIWTC vessels, repair and maitenance works inc­
luding dry docking of ships mostly of private owners and
government agencies, industrial works such as casting

79
centrifugal pumps for BADC, power transmission towers,
suger mills' rollers,etc.

The management of the yard wants to expand its facilities

to balance its capacity with the capacity of the slipway
and the market needs. Accordingly, a plan was drawn by
the yard management which was latter on reviewed by the
consulting firm SRS engaged by NORAD under the Norwegian
aide programme.SRS reviewed the plan with the yard mana­
gement in 1977.The main features of the expansion plan
are briefly as under:

1. To increase the slipway capacity by adding some

extra tracks between the existing ones to raise
its capacity from 2.5 tons/ft. to 5 tons/ft.

2. A new assembly hall to be built with a 30 ton

overhead crane coverage.

3. Extension of the crane tracks south of the pla­

ters' shop to the south quay at the out-fitting
channel.

A. An out fitting crane to be installed on the south

side out fitting basin.

5. The carpenter shop should be relocated in the

present store and the store to be shifted to the
present carpenter shop where more space is avai­
lable. The present store does not have crane cove­
rage. The new store to have a crane coverage at
least on the central bay to handle the heavy
items/goods to be stored.

80
 6. Machine tools and equipments in the yard to be
recorded, repaired and detailed analysis of the
future needs to be carried out before additional
equipments are purchased. Machines to be relo­
cated in the main bay which is covered by a 10
ton overhead crane.A tool shop for maintaining
and producing tools should be developed in the
same building.

The plan is under submission to the authoriy but no pro­

gress has been made so far for according approval and
implimenting the plan.

S.3 Dockyard and Engineering Works Limited (DEW)

This is one of the two shipyards under the Bangladesh

Steel and Engineering Corporation engaged in New Building
and repair works of inland water crafts.This is the best
equipped and one of the largest shipyard in the Dhaka—Na-
rayanganj area of this industry.The yard was established
in 1926 and was placed under PIDC in 1954 and subsequent­
ly under EPIDC/BIDC/BSEC .

The yard was reorganised under the Bangladesh Steel and

Engineering Corporation with the following objectives:

1. To attain self sufficiency in design and cons­

truction of inland crafts including bay-crossing
vessels. To build vessels for various government
agencies such as port authorities, Bangladesh
Railway, Water Development Board, Bangladesh
Navy, Custom, Pl ice,etc.

81
 2. To carry out repair and maintenance works inclu­
ding docking on inland water crafts. To carry out
industrial works such as casting pumps for BADC,-
Power transmission towers,etc.

3. To create employment opportunity. To prevent

out-flow of foreign exchange through building
vessels for the national need.

The yard is located on the east bank of the river Shita—

lakhya in Narayanganj.

The yard comprises of an area of approximately 750.000

square feet with a water front of about 715 feet inclu­
ding the Narayanganj Drydock. The yard has a multiple
carriage slipway for vessels up to 280 ft. in length and
780 tons in weight i.e. 60 tons per carriage having a
total of 13 carriages.The slipway is served by a 5 ton
jib crane (down graded to 4 ton) travelling on longitudi­
nal tracks at the head of the slipway. The crane can be
turned 360 degrees. The capacity of the crane is still
considered to be sufficient for the repair works. Howe­
ver, it is not considered to be sufficient for new buil­
ding activities as the building hall is covered with a
crane of 20 ton lifting capacity. If the slipway crane is
replaced by a 20 ton crane then the new building can be
organised in blocks of upto 20 tons which will definitely
improve the production. Berthing facilities are limited
during dry season due to low water depth (about 1 foot)
in the water basin.

The Narayanganj Dockyard is physically an intigral part

of this yard.The dock is designed as a conventional piles
graving dock with clear inside dimentions of 70'x303' and

82
a caisson gate. The total designed bearing capacity is
1,400 tons.The drydock has been assumed 35% to be comple­
ted when the construction works has been stopped due to
non-availability of finance and a questionable economic
viability of the drydock under the prevailing circumstan­
ces. A considerable amount of materials and equipments
are procured and stored in the yard for a very long time.
Their persent quality and sufficiency in quantity for
completion of the works are in much doubt.

Besides above the physical facilities of the yard inclu­

des the machine shop equipped with sufficient number and
sizes of machines. The machine park covers the normal
need of the yard. The machines are very badly
maitained.lt is stated that due to non-availability of
minute spares expensive machines are laying idle.The
machine shop is coverd by one 20 ton overhead crane and
one 3 ton crane. The lay out of the shop is somewhat
ill-planned in relation to the cranes.To achieve optimum
output the layout should be modified and all heavy tools
machines should be relocated under the coverage of the 2D
ton crane and the light machinery under the 3 ton crane.
The shop is located mainly in building no.2. There are
some old machines located in another place in building
no.7. Jobs like machining of preopeller, propeller-shafts
and 1inings,rudder shafts & 1inings,couplings,stuffing
boxes,brackets for propeller shafts, etc. are carried out
in addition to the day to day machining needs of the yard
including industrial jobs such as pumps, suger mill rol­
lers and bushings,etc.

The main functions of the Outfitting and Engineering

Department are to install, complete and test all the .main
and auxiliary machinery including all connected systems

83
to ensure that the finished/repaired vessels fully comply
with the specificatione.This is mainly important for new
building projects. However, in this yard the department
is also responsible for the ship repair works of similar
nature.The department is located in building no.7 and
include the following shops:

- Thin plate shop

- Pipe shop
- Electrical shop
- Engine repair shop

The thin plate shop is eqipped for doing normal thin-pla-

te/outfitting work such as making/repairing fuel tanks,
water tanks,ladders,lockers,etc. and also air ducts.The
workers <riveters/platers and gas cutters/welders) are
also employed in the steel shop in their -free time in
this shop. At present the shop has no equipment for thin
plate processing and is mostly equipped with hand tools.
Some equipments such as one nibling machine and one spot
welding machine will improve the quality of output in
this shop.

The pipe shop is located with other outfitting shops such

as thin plate shop and mechanical repair shop in the same
building.The shop is engaged to outfit/repair the sanita­
ry system, fresh and salt water systems, lubrication oil
system,fuel and cargo oil system, etc.The shop is mode­
stly equipped both with pipe processing machines and hand
tools.

The electrical shop is located in building no.4, where

also the yard's transformers,switch board and emergency
generators are located.The shop is generally engaged for

84
maitenance and installation works on yard's equipments,e-
lectrical repair works on board ships,installation jobs
on new building projects,running and maintenance of the
power station,etc. The shop is modestly equipped and has
among others battery charging device, drying chamber,
testing device for generators, different measuring equip­
ments and secial hand tools.

The engine repair shop is also located in building no.7

and organised togather with the maintenance activity,
directly under the technical manager.The main activities
of the shop includes the repair of internal combustion
engines,both on board vessels and in the shop, repair of
pumps, winches, hydraulic motorsetc.This is also respon­
sible for installation of engines, motors and other
equipments in the engine room of new building
vessels,installation and repair of propeller,rudder and
rudder arrangements,etc.The shop has among others one
valve grinding machine of 100mm diameter,fuel pump
testing equipment,valve seat grinding machine and diffe­
rent types of hand tools and measurying- devices.

The foundry shop is located in building no.5 on an area

of ABO sq.metres.Tbe neighbouring warehouse accommodates
the store room for patterns. The shop is equipped with
one coal-fired cupula furnace, one coal-fired tilting
furnace,one manual crane covering the ferrous bed and a
core heating chamber.At present the yearly output of the
shop is about 12 tons of non-ferrous and 207 tons of fer­
rous metal.

The blacksmith shop is located in building no.l on an

area of about 250 sq.metres.The shop has two smith
hearts, one pneumatic hammer, heat treatment furnaces and

85
centrifugal casting machine. The shop meets the require­
ments of the yard in blacksmith works, white metal
casting and heat treatment jobs. .

The Maintenance and Tools Department consists of the mai-

tenance & tools planning section and maintenance Stools
storage section.There is much to desire from this depart­
ment.The department needs total reorganisation for- its
useful existance.

The power supply requirement is met from PDB source. One

of the major problems presently faced by DEW is the daily
power failure.In 1977 a total of'263 hours of power loss
<176 hours during production hour) from 397 failures was
recorded. This is almost 10% of the annual production
hours for one year. At present the situation is even wor­
se.Yard's emergency generators are capable of supplying
power to the yard's lighting system only. To invest in
installing "own power" generating plants for total power
supply will be too expensive for DEW. Therefore, PDB
should be approached to improve their power supply situa­
tion and ensure an uninterrupted power supply to the
yard.The lighting of the individual shop and work ing
areas leaves much to be desired. Oxygen and acetyline gas
supplies are being arranged in cylinders to consumption
areas. Compressed air is supplied from portable diesel
driven copressors. This at times hampers the output due
to its limitation. The present system should be replced
by a centralised fixed installed compressed air network.

The man-power of the yard includes 64 technical officers,

36 non-technical officers, 277 administrative staff,395
skilled workers and 260 semi-skilled workers.

86
The yard is presently engaged in both new building as
well as repair and maitenance works.Industrial works such
as steel structure, suger mill rollers,etc. are also
manufactured in the yard.In the new building sector the
yard is mainly engaged building ships for BIWTC, BIWTA,
Bangladesh Navy, Police, Army, BFDC, Bangladesh Railway
and some private owners. In the repair sector, private
owned ships and the vessels of various agencies keep the
yard employed.

The present annual steel working capacity of the yard is

2,000 tons. It is desired to raise the annual capacity to
5,000 tons. Accordingly, SRS was engaged by NORAD under
Norwegian aid programme who drew a development programme.
SRS in their survey observed," Although DEW yard is basi­
cally equipped with all the necessary production equip-
ments/machinery for new building works, major changes to
working methods and improvements/extensions to the
ship building hall are necessary to achieve higher pro­
ductivity . "

Based on this observation SRS drew a plan for physical

improvements/developments connected to ship building
activities which will also take into account facility
improvements/balancing for repair and industrial works
carried out by DEW. The main features of the • plan are
briefly as under:

The manning level of different work areas to be adjusted

to suit the productivity goals for various work stations
and steel throughputs through extensive training/upgra-
ding programme. *

The crane service to be improved/upgraded, transport

87
roads to be metalised to allow movements of heavier
trucks/forklifts and the crawler cranes presently used by-
DEW.

The outfitting department to be reorganised and the fol­

lowing shops to be brought under the depatrment:

- Thin plate works

- Pipe works
- Electrical installation and repair work
- Carpentry works
- Rigging,painting and sail making work
- Docking
- Engine and mechanical fitters

The settlements problem of the slipway to be investiga­

ted and rectified. The new 20 ton crane to be installed
to match with the ship- building hall crane capacity.Ber­
thing facilities/outfitting quay to be improved.

Ship-building hall to be extended, machine shop to be

reorganised to give a batter coverage of crane facili­
ties .

Diesel repair shop to be reorganised incorporating the

following activities;

- Dismentling station
- Degreasing station
- Assembly station
- Light fixed machinery for repair activities
- fools storage for the repair activities

Feasibility, study to be carried out for completing the

88
construction of the Narayanganj Cirydock.
The organisation and the management tools to be improved
allowing more autonomy to the yard management. The main­
tenance & tools department to be reorganised. Uninterrup­
ted power supply to be ensured.All the major shops to be
brought under the compressed air network.

The report is under consideration of the authority.

8.4 BIWTA Marine Workshop

BIWTA Marine Workshop was established in 1958 to carry

out repair and maintenance work including docking and
survey work of its own fleet and also to cater for the
needs of other owners on a limited scale, especially in
the field od docking vessels.

The Workshop is located at Barisal on the bank of river

the Meghna.

The yard is manned by 15 officers, 89 administrative

staff, 69 skilled, 123 semi-skilled and 41 unskilled
workers.

The yard comprises of an area of 101,200 sq. feet out of

which an area of 3,200 sq. f-eet accommadates the office
premises. The yard has a floating dock of 190 feet in
length and a maximum lifting capacity of 800 tons. The
dock remains very busy round the year for docking BIWTA's
own vessels as well as the vessels of other owners both
in public and private sectors. The yard has also got a
slipway with a lifting capacity of 100 tons normally used
for docking and under-water repair of light survey ves-

89
seis of BIWTA itself and as building yard for barges.

The yard comprises of various shops. The machine shop has

various types of machines such as lathes,radial and ver­
tical drilling machines,universal milling, crankshaft
grinding machine Cnon-operational), cylinder boring and
holding machine, plate bending machine and various other
essential equipments. A good number of these machines are
non-operational. Most of these machines are very old and
in a very poor state of condition. These machines need to
be replaced as soon as possible.

The carpentry shop is moderately equipped and has among

other things one universal wood-working machine, one
electric bend saw, one surface planer, one bend saw set­
ting and fitting machine and one wood-working lathe.

The welding shop, electric shop,blacksmith shop,moulding

shop,painting shop and ICE shop are very poorly equipped.
These shops need immediate attention and updating.

The yard is very old but the lack of proper maitenance

has made it even worse. A development programme should
be undertaken to replace these equipments at least in
phases. The maintenance department should be reorganised
and the non-operational equipments should be replaced/
recommissioned to enhance the output of the yard.

90
8.5 Facilities far Inland Vessels in Private Sector

There is no large size repair yard in the private 'sector

for inland water-craft in Bangladesh. The private sector
yards are scattered in Chittagong, Dhaka, Narayanganj,
Khulna and Barisal area. There are about 50 yards in the
private sector with permanent site. The major ones are as
mentioned below:

- Atlas Engineering and Shipbuilding.

- Alam Nagar Dockyard.
- Bangla Dockyard and Engineering Works.
- Bangladesh Naojan Karkhana.
- Delta Dockyard and Engineering Works.
- Dhaka Dockyard and Engineering Works.
- High Speed Shipbuilding & Heavy Engineering Co.
Ltd.
- Kumudini welfare Trust.
- National Shipbuilders and Dockyards.
- The Begum Dockyard and Engineering Works.

Most of these yards are mainly engaged in new building

activities of steel and wooden body water-craft. They are
usually building craft for private owners but some of
them also build vessels for public sector agencies and
for some international organisation like FAO. Ship repai­
ring in most cases are their family business, i.e. these
yrads undertake repair works of the vessels owned by the
parent organisation or their sister organisations. M/s.
High Speed Shipbuilding & Heavy Engineering Co. Ltd. is
the only enterprise which has a joint venture agreement
with Mitsui Engineering & Shipbuilding Co. of Japan and
are undertaking shipbuilding contracts on regular basis.
The yard is well-equipped with modern machinery, mainly

91
for shipbuilding activities but repair activities are
also undertaken by the yard presently on limited scale.
None of these repair yards are capable of docking vessels
over 500 tons.

There are many temporary river bank facilities with no

fixed establishments engaged in new-building activities
all over the country, specially around the river ports.
These are also engaged in ship repairing activities and
doing good jobs in extending emergency repair facilities
to the water-craft.

92
CHAPTER' 9 - FINDINGS AND RECOMMENDATIONS

9.1 Preliminary Remarks

The present ship repair facilities for ocean-going ves­

sels are not commensurate to the requirements, especially
in the port of Chalna. At Chittagong when the expansion/-
development programmes of existing facilities are carried
out the yards in Chittagong will be able to meet the
requirements of the industry. In Chalna port new facili­
ties must be developed to meet the requirements. Under
the present circumstances this can be best done firstly,
by extending the available repair facilities of Khulna
Shipyard for repairing ocean-going ship in Chalna port.
Secondly, by establishing the planned workshop of the PCA
at Chalna port as soon as possible. Finally, private
investors also should be encouraged and welcome to estab—
lish marine worksops in Chalna port.

Regarding the repair facilities for inland vessels the

following may be quoted from the updated 'Bangladesh
Transport Survey' study on Inland Water ' Transport which
will focus on the situation quite clearly,

" The inland water transport sector does not appear

to warrent major investment expenditure at this pre­
sent time."

"There i.s scope for expenditure to improve mainte­

nance and repair facilities, but there is also a
continuing need for trainning and technical assi­
stance to improve performance in this area."

93
Although the above quotations emphasise on training and
technical assistance for improvement of the performance
at present the industry is faced by other problems too.
These problems are not only detrimental to the progress
of the industry but reduce efficiency and overall produc­
tivity of the existing enterprises. Some of these prob­
lems are common to most of the enterprises in the indus­
try and some of them are only common to the enterprises
in the public sector while some others are common to the
enterprises in the private sector. Here it is intended to
look into these problems and make recommendations to sol­
ve these problems.

9.2 Common Promlems to all Enterprises

The most serious problem faced by'the industry today is

the shortage of expertise. Most of these yards are either
extremely short of or without any technically qualified
person. In the absence of any technical expert no techni­
cal innovation can be achieved and the industry has to
continue with the obsolate primitive methods of working
with extremely low output and poor workmanship. The
situation with the skilled man-power is equally grave.
Many of the skilled workers leave the country for jobs
elsewhere due to the low wages in the country. Moreover,
there is no systematic organised training scheme for pro-
ducing/upgrading skilled workers in the industry. As a
result the number of these workers is reducing day by day
and the available skilled workers are often over worked
leading to early saturation of their working capability.

To overcome the above mentioned problems the technically

qualified peosonnel may be appointed in the enterprises
and they may be sent abroad time to time for higher spe-

9A
cialised training. Organised refresher courses to be
introduced for the available technical workers on a regu­
lar basis. In this connection, advantage should be taken
of the training programme offered by Bangladesh Institute
of Marine Technology, Narayanganj for in service training
of shipyard workers. However, such training should be
supplimented by overseas training of key personnel of the
yard. If the causes of outflow of technical workers are
looked into and reasonable remedial measures are taken
the rate of out-flow of workers is bound to reduce. In
house scheme such as "trade Apprentice Training Scheme"
should be‘intrduced in the major yards which will ensure
smooth supply of technical workers in the industry.

Another acute problem faced by the industry is the lack

of supporting industries. The output and the efficiency
of the industry depend upon the availability of the back
up facilities. Timely supply of the required materials
and/or services will ensure the higher production rate
with desierd workmanship.

The ship repairing industry existed in the country from

the begining of the century but the supporting industries
did not grow here as it was easily available from other
part of the British India under the British Rule. Eiuring
the period, when Bangladesh was part of Pakistan, this
sector hardly recieved any priority from the government.
Now in Bangladesh the situation has not changed much due
to lack of encouragement from the government and initia­
tive from the private investors. Furthermore, due to the
absence of simple and attractive investment policy the
country failed to attract the foreign investors though it
has a great advantage of having one of the cheapest
labour force in the world.

95
The essential supporting industries should be identified.
Government should formulate a favourable policy encoura­
ging the private investors to come forward for setting up
these enterprises. The less attractive but essential ones
should be set up in public sector. The private investors
can be best encouraged by extending financial support in
the form of soft-term loan, tax holiday, preferential
tariff, etc. The enterpreneurs with professional back­
ground and or having previous experience in the field
should be given preference. The lengthy and complicated
procedures of obtaining government permission for setting
up industry should be simplied^ A .simple and steady
favourable investment policy is expected to creat confi­
dence among foreign enterpreurs to invest in Bangladesh.

9.3. Problems Faced by Enterprises in Public Sector

The most serious problem encountered by the enterprises

in the public sector today is the "Run-down State" of the
enterprises. Most of the yards except the CDDL are more
than thirty years old. At least three of the four yards
belonging to BIWTC are more than fifty years old. Most of
these yards had the repair facilitities for vessels powe­
red by steam reciprocating engines. Today, the steam eng­
ines are either scrapped or replaced by diesel engines.
The yards are not up-dated/modernised keeping pace with
the changes of propelling system of the vessels and
technological development in the field. Aothough the
management of various yards are desperately trying to
solve this problem by undertaking modernization /develop­
ment programs in phases but there is not much achivement
in this direction due to financial constrains and the
slow beouracratic procedures of the government.
Another acute probelm is the poor maintenance of the

96
machineries/equipments of the yards. There is much to be
desired in this field. The poor organizational set up in
these yards are also the cause of this poor maintenance
state of the yards.

The modernization/development programs in phases should

be pursued. Proper and timely utilization of available
assistance from friendly developed countries will ease
the financial constrains in modernizing the yards. The
administrative set up of the yards should be reorganized
to have a strong and effective maintainance department in
every yard. The maintainance department is to adopt a
strict planned maintainance system with necessary facili­
ties available including a minimum level of essential
spares in stock.

Another problem faced by the yard is the lack of autono­

my. In the case of BSEC yards the functions of financial,
marketing, estimating and production planning are perfor­
med by the staff under the director of the shipbuilding
in Corporate Management in Dhaka. The yards managements
report directly to the director of the shipbuilding of
BSEC. In the case of BIWTC yards the similar functions
are performed by the stuff under the chief engineer in
the Corporate Management. The yards' management reports
to the chief engineer of BIWTC.

This clearly indicates that there is a lack of definitive

direction of the responsibility and information flow bet­
ween the yards management and the BSEC/BIWTC Corporate
Managements. According to "Bangladesh Transport Survey"
the above mentioned functions are a grey area and fall
somewhat between Corporate Managements and yards manage­
ments. Strict control on financial matters imposed by

97
government is another problem faced by the yards manage­
ments. In this system of control, the yards managements
cannot exercise their judgement and take decision on
financial matters on their own to meet the commercial
needs. Every case has to be referred to the Ministry of
Finance through the controlling ministry for its appro­
val. This is a lengthy and time consuming procedure and
detrimental to commercial achievement. The management
should be allowed maximum autonomy in this respect.

Frequent change in the Board of Management of the yard is

another problem to be sorted out. Generally, in these
yards the top level management is constituated by
appointing directors for a limited period C usually a
term of three years ) only. In practice it is too short a
time for someone to master the "tricks of the trade"
which help him to make'correct and effective decisions.
Psychologically also they are not very much motivated to
look after the interests of the organisation wholehear­
tedly. Also there is a lack of accountability of the per­
formances of the directors in many cases. This hampers
the growth of commercial attitudes of the people working
in the organisation.

A permanent "Board of Management" with full autonomy to

run the organisation on pure commercial basis should be
installed. The Board of Management is to be responsible
for making the enterprise economically viable. The per­
formance should be the parameter for their survival in
service. Finally they are to account for their performan­
ces to the public for whom they are working.

9S
9.4 Problems Faced by the Enterprises in Private Sector

In general, private investment is very shy in Bangladesh

and it is very much so in the ship repairing industry.
Moreover, the enterprises in private sector are facing
lots of problems and the most acute one is the absence of
healthy economic climate conducive to investment. Due to
the uncertain industrial policy prevailing in the country
the private investors are always hesitant to invest in
setting up an industry. Absence of strict labour policy
and poor "Law and Order" situation prevailing in the
country cause lots of labour unrest. Frequent labour
unrest at times forces the owners to close down the
enterprise.

An improved "Law and Order" situation with strict labour

policy will help to control the labour unrest.Steady
investment policy will create healthy economic climate
conducive to business. This will bring back the confiden­
ce in the private enterpreneurs both at home and abroad.
There is hardly any fair and healthy competition among
the business community. A healthy compitative atmosphere
helps to grow innovative ideas without which it is not
possible to attain industrial progress.

The End

99
 BIBLIOGRAPHY

Annual Reports of Bangladesh Shipping Corporation.

Statistical Year Book of Bangladesh, 19S3-8A.

The Year Book of CPA, 1983-84.

The Year Book of PCA, 1983-84.

Brochure on inaugural ceremony of CDDL.

Reoprt of the committee formed by the Government to look

into the problems facing the CDC)L.

Report of the committee for improvement and expansion of

existing repair faciliries at Chittagong of Group'B' of
the Task Force for Development of Maritime Sector.

The Report of field survey in Bangladesh to suppliment

the "Feasibility Study on cooperation between Bangladesh
and Norway in the field of Inland Water and Bay-crossing
Transport" by Shipping Research Services A/S.

The Report,"Modernisation and Improvement of Repair Yards

of BIWTC," by Technical Department of BIWTC.

The Proposal of BSC,"Fleet Expansion/Ship Acquisition

Programme for TFYP period",to the Government.

Review of the Exploratory Surveys undertaken to assess

the Marine Fisheries Resources of Bangladesh and the pre­
sent status of Exploitation." by Md. Shahidullah.

100
Souvenir on "National Seminer,S5" on Fisheries
Development in Bangladesh.

The Small-Scale Marine Fisheries Development in Bangla­

desh and Its Present Status, by Md. Shahidullsh.

Marine Fisheries Bulletin No. 2, a publication on the

Research/Survey of Marine Fisheries.

Souvenirs on Anniversary Celibrations of BSC.

Articles on Ship Repairing in reputed Technical Journals.

Brochure of Highspeed Shipbuilding & Heavy Engineering

Co.Ltd.

Project Proforma of BSC Marine Workshop.

Various informations and data obtained from Managements

of BIWTC, BIWTA, BBC, CDDL, DEW Ltd., Khulna Shipyard
Ltd., PCA and other workshops of Private Sector through
questionnaires.

101