Exporting ships from Bangladesh to India has become an important industry in recent years. The Bangladeshi shipbuilding industry is increasingly competitive in the international market, especially in the export of small and medium-sized ships.
1. Cost-Effectiveness
- Low Production Costs: Bangladesh enjoys a competitive labor and production cost advantage. The skilled workforce is available at lower costs than in other shipbuilding countries, reducing the overall expenses of cargo ship construction. For India, purchasing ships from Bangladesh is often more economical than building them domestically or importing from other expensive shipbuilding nations.
2. Geographical Proximity
- Reduced Transportation Costs: As neighboring countries, Bangladesh and India have minimal shipping distances, which lowers transportation and delivery costs. This proximity facilitates quick deliveries and logistical coordination.
3. High-Quality Standards
- Internationally Recognized Standards: The shipbuilding industry in Bangladesh, especially companies like Western Marine Shipyard and Ananda Shipyard, constructs ships according to international standards. These ships are durable, environmentally friendly, and equipped with modern technology.
- Class Certification: Many shipyards in Bangladesh are certified by international maritime organizations such as Lloyd’s Register and Bureau Veritas, ensuring the quality and safety of the ships.
4. Growing Demand for Cargo Ships in India
- Increase in Coastal Shipping: India has initiated the Sagarmala project to enhance coastal shipping routes, which aims to improve maritime logistics and reduce road traffic. To meet the demand for coastal cargo transportation, small and medium-sized ships are required, which Bangladesh can supply efficiently.
- Expansion of Inland Waterways: India is expanding its inland waterways, where small ships made in Bangladesh are suitable for navigation.
5. Lack of Domestic Production Capacity
- Focus on Larger Vessels by Indian Shipyards: Indian shipyards often focus on larger vessels such as tankers, warships, or offshore rigs, leading to a shortage in the production of small cargo ships. By importing ships from Bangladesh, Indian companies can meet their demand without putting pressure on domestic shipyards.
6. Environmental and Design Advantages
- Environmentally Friendly Ships: Bangladesh has adapted to global demand for environmentally friendly shipbuilding. Indian companies are seeking ships that comply with international environmental standards, and Bangladeshi manufacturers are delivering ships that meet these requirements.
- Custom Design Advantages: Shipyards in Bangladesh design customized ships to meet specific operational needs, which is attractive to Indian buyers who require tailored solutions for coastal and inland shipping.
7. Favorable Trade Relations
- Bilateral Trade Relations: There are strong trade relations between India and Bangladesh, with both governments working to enhance cooperation in various sectors, including shipbuilding. The smooth trade processes and existing agreements facilitate Indian companies’ importation of ships from Bangladesh.
Recent Import Examples:
- Cargo Ship Export from Western Marine Shipyard (2020)
- In 2020, Western Marine Shipyard exported a 1,500-ton cargo ship to India, primarily for internal transport along India’s rivers, particularly in West Bengal. The ship is designed for efficient navigation in shallow waters and is built to international standards, certified by Bureau Veritas. Indian buyers have appreciated the quality and durability of the ship.
- Barge and Cargo Ship Export from Ananda Shipyard (2019)
- In 2019, Ananda Shipyard and Slipways Limited exported several barges and cargo ships to India, primarily used for bulk cargo transportation. These ships were suitable for transporting coal and other bulk products along India’s eastern coast. Indian buyers were satisfied with receiving high-quality ships at a lower cost compared to domestic shipyards.
- Oil Tanker and Cargo Ship Export from Western Marine (2021)
- In 2021, Western Marine Shipyard exported a 3,000-ton oil tanker and cargo ship to India, specifically designed for transporting refined oil along the western coast of India. The cargo ship was intended for general product transportation. This contract was significant as it included both specialized and general cargo ships, showcasing the flexibility and capability of Bangladeshi shipyards to meet various demands.
- Shallow Draft Cargo Ship Export to India’s Inland Waterways (2022)
- In 2022, Bangladesh exported shallow draft cargo ships to India, specifically designed for navigation in India’s inland waterways. These ships were suitable for operating in the Ganges and Brahmaputra rivers, provided rapidly and cost-effectively by Bangladeshi shipyards. They were equipped with fuel-efficient engines, reducing operational costs for ships navigating Indian rivers.
- Small Coastal Cargo Ships for Indian Coastal Shipping (2023)
- In 2023, Ananda Shipyard exported small coastal cargo ships to India’s eastern coast, intended for use in India’s Sagarmala project. These ships were designed to facilitate the transportation of goods between coastal cities, helping to reduce reliance on road and rail transport. The ships were built with modern navigation systems and fuel-efficient technology, contributing to the goal of reducing carbon emissions in India’s transport sector.
- Hybrid Passenger and Cargo Ship Export (2020)
- In 2020, a hybrid passenger and cargo ship was exported to an operator in India from Western Marine Shipyard. The ship was designed for transporting both passengers and cargo in the Sundarbans Delta area and was capable of handling challenging tidal conditions. The ship was specifically designed for safe loading/unloading for both passengers and cargo and was equipped with technology compliant with environmental regulations in the sensitive Sundarbans area.
- Export Under Bangladesh-India Inland Waterway Agreement (2017)
- In 2017, Bangladesh exported several small cargo ships under the Bangladesh-India Inland Waterway Protocol Agreement. Under this agreement, both countries can use each other’s rivers for transporting goods. These ships were used for transporting goods in the Padma, Meghna, and Jamuna rivers, improving regional connectivity and reducing transportation costs for commodities such as cement, fertilizers, and food grains. The ships were appropriately designed for shallow rivers and were compliant with the maritime laws of both countries, strengthening the commercial relationship between Bangladesh and India and establishing Bangladeshi shipyards as strategic partners in India’s inland waterway transport sector.
Conclusion
Reasons for importing ships from Bangladesh include cost-effectiveness, geographical proximity, high-quality standards, and the ability to meet specific coastal and inland shipping demands. This relationship is mutually beneficial for both countries and is expected to grow with the expansion of maritime trade and transport networks.