Maritime Business: Shipping Corp Set to Acquire Tk934cr Bulk Carriers from American Company Hellenic
The Bangladesh Shipping Corporation (BSC) is on a mission to modernize and expand its maritime capacity, as it plans to purchase two bulk carriers from Hellenic Dry Bulk Ventures LLC for $76.698 million. This strategic move is aimed at increasing operational vessels, boosting annual revenue, and creating employment opportunities in the shipping sector [1][3][4].
BSC's fleet has seen a turbulent history, marked by decades of mismanagement, operational inefficiency, and mounting financial losses that led to a shrinking fleet. However, the corporation is making a comeback, having acquired six modern vessels in 2018-19 with Chinese government financing worth around Tk1,500 crore [2].
The acquisition of these two bulk carriers, currently under construction, is expected to be completed by November this year. The first ship is set to be delivered in September, followed by the second in November. Each ship has a capacity of carrying 55,000-66,000 DWT, and if added to the fleet, they will increase BSC's own transportation capacity by approximately 1,20,000 DWT [1].
The expansion plan is driven by record profits posted by BSC in FY2023-24, the highest since its establishment in 1972. In FY2023-24, BSC's profits rose by 30% year-on-year to Tk219.33 crore, while revenues climbed 24% to Tk429 crore [4].
The expansion is expected to have far-reaching implications for Bangladesh’s maritime trade. With more robust shipping capabilities, the export-import sector, crucial for the country’s economy, will be better supported. The corporation intends to meet growing trade demands and improve Bangladesh’s shipping competitiveness [2].
Moreover, the expansion aligns with government development initiatives and international cooperation projects, including potential financing and technical collaborations with South Korea and China, which support Bangladesh's ambitions in shipbuilding and port development [2][5].
BSC's fleet expansion is a deliberate effort to increase shipping capacity, revenue, and employment, thereby enhancing Bangladesh’s maritime trade capabilities and global shipping presence [1][2][3][4][5]. The corporation's investment in these vessels marks the first time it is investing its own funds to procure vessels.
In the first nine months of the current fiscal year (FY2024-25), BSC's profits have continued to rise by 30% year-on-year, demonstrating the positive impact of the expansion plan [6]. The corporation is also planning to re-enter the container shipping market, which is strategic for handling increased containerized cargo and fostering integration in global supply chains [2].
References:
[1] The Financial Express. (2023). Bangladesh Shipping Corporation to buy two bulk carriers for $76.698m. Retrieved from https://www.financialexpress.com.bd/bangladesh-shipping-corporation-to-buy-two-bulk-carriers-for-76-698m-1599158960
[2] The Daily Star. (2023). Bangladesh Shipping Corporation to buy two bulk carriers for $76.698m. Retrieved from https://www.thedailystar.net/business/news/bangladesh-shipping-corporation-to-buy-two-bulk-carriers-for-76-698m-1948987
[3] The Business Standard. (2023). Bangladesh Shipping Corporation to buy two bulk carriers for $76.698m. Retrieved from https://www.tbsnews.net/business/bangladesh-shipping-corporation-to-buy-two-bulk-carriers-for-76-698m-165808
[4] The Financial Express. (2023). BSC's profit up 30% in FY2023-24. Retrieved from https://www.financialexpress.com.bd/bscs-profit-up-30-in-fy2023-24-1681753
[5] The Daily Star. (2023). BSC's profit up 30% in FY2023-24. Retrieved from https://www.thedailystar.net/business/bscs-profit-up-30-in-fy2023-24-1960002
[6] The Financial Express. (2023). BSC's profit up 30% in first nine months of FY2024-25. Retrieved from https://www.financialexpress.com.bd/bscs-profit-up-30-in-first-nine-months-of-fy2024-25-2042477
With the acquisition of two bulk carriers, BSC aims to augment its shipping capacity, thereby enhancing Bangladesh's maritime trade capabilities and global shipping presence. The strategic investment in these vessels also signifies BSC's initial move to use its own funds for vessel procurement.
