Another local shipbuilder signs deal with int'l buyer

Another Bangladesh shipbuilding company signed a memorandum of understanding yesterday with a Dutch firm to supply eight sea-going ships worth US$87 million.
Highspeed Shipbuilding & Engineering Co Ltd signed the MoU with Hollander Scholtens (HS), Groningen to start construction of the ships from December this year.
Highspeed, specialised in building small riverine cargo and passenger vessels, will be the third company to build ships for foreign buyers.
Earlier, Ananda Shipyard and Western Marine Shipyard Ltd, entered the global shipbuilding market with US$350 million orders from Denmark, Germany and Mozambique.
“Our cost of production is highly competitive compared to other foreign shipyards. So, foreign buyers are now placing orders in Bangladesh shipyards,” KM Mahmood Ur Rahman, managing director of the company, said while signing agreement with representatives of Hollander Scholtens.
European shipbuilding companies are all booked with orders till 2010, while the Asian shipbuilders in Korea, Japan, China, Singapore, Malaysia and Vietnam have adequate export orders.
This vacuum has created great opportunity for the country's booming shipbuilding industry to grab a chunk of $300 billion worth global export market.
Bangladesh has a competitive edge over its Asian rivals because its cheap and naturally expert workforce.
Highspeed Shipbuilding and Engineering expects it could complete building 9,000 tonnes capacity ships by April 2012.
The company will now have to upgrade its infrastructure and add modern facilities to its facility at Fatullah, Narayanganj in the next nine months before starting the shipbuilding.
The managing director expects the company will invest around Tk 1 billion for expanding its facility.