Bangladesh Economic & Infrastructure Development - Updates & Discussions

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Bangladesh Ship breaking yards going green and efficient with increasing automation

The ship breaking industry of Bangladesh is on the way to change with afforestation, construction of reservoirs and use of modern technology. ship cutting capacity is increasing with increasing automation which saves time and costs. In recognition of which five yards have already received the recognition of the "International Green Shipyard" per Hong Kong convention and twenty more are in the pipeline. Entrepreneurs say they will convert all yards into green yards by 2025 to meet the demand of the growing steel industry. The ability to cut ships is increasing with the use of technology.

 

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Coffee and Cashew nut cultivation showing promise in large tracts of land in Sherpur and Madhupur Garh area in Tangail.

 

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CXB runway extended to 10,700 feet (longer than Dhaka Shahjalal)

 

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Electric Car manufacturing in Bangladesh, one of a few projects in the pipeline.

Maybe a mundane item - vegetable exports to the EU. But there is real money to be made, which is nothing to scoff at for a country that is one of the largest vegetable producer countries globally.

 

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Modern bicycle manufacturing for export in Bangladesh

Fair Electronics Narsingdi (Samsung Bangladesh)

 

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Bangladesh Economic zones to come under eco-friendly performance rating

 

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Emerald Oil, Minori Bangladesh, Jamuna Edible Oil partner to upturn rice bran oil production.​

Under the agreement, Emerald Oil will refine crude Rice-Bran oil at the Jamuna Edible Oil plant, and Minori will provide working capital and use the Jamuna Oil plant​

Publicly listed Emerald Oil Industries, along with Minori Bangladesh Ltd, has signed an agreement with Jamuna Edible Oil to increase the production of rice bran oil.

Under the agreement, Emerald Oil will refine crude oil at the Jamuna Edible Oil plant to produce oil. Half of the production will be exported to Japan.

Emerald Oil will be able to process 800 tonnes of rice husk per day. The expected daily oil production will be 160 tonnes. Minori will provide working capital and use the Jamuna Oil plant.

The tripartite agreement was completed at Hotel Regency in the capital on Sunday. Md Afzal Hossain, managing director of Emerald Oil, Miya Mamun, the young entrepreneur on behalf of Minori Bangladesh Ltd, and Lutfor Rahman, managing director of Jamuna Edible Oil, signed the agreement on behalf of their respective organisations.

Emerald Oil officials said the company's average annual revenue will increase by more than Tk900 crore.

Afzal Hossain, managing director of Emerald Oil, said, "Our production capacity will increase. We and Jamuna Edible Oil will be able to produce over 600 tonnes of rice bran oil per day. This will take our annual turnover to Tk1,000 crore. Emerald Oil is expected to make a profit of over Tk30 crore a year."

Minori Bangladesh Managing Director Mia Mamun said all three companies will be able to make a profit.

"As paddy husk is easily available in Rajshahi, we will collect it from the farmers there. This will reduce the presence of free-fatty acids in rice bran oil. As a result, oil exports to Japan will be easier," he added.

Managing Director of Jamuna Edible Oil Md Lutfar Rahman said they lack advanced technology. If they work with Japanese investors, they will get advanced technology. As a result, they can make more profits.

Among others, Emerald Oil Company Secretary Imran Hossain, Chief Accounts Officer Ashraful Islam, Fu-Wang Food Managing Director Md Rafiqul Hasan, Executive Director Sidratul Hasan and Company Secretary Sharif Al Mahmud were present on the occasion.

 

[Bilal9]

Draft masterplan for Bay Terminal finalised​

Govt decides CPA, PSA Singapore, DP World of UAE will construct it.

The proposed Bay Terminal is being set up on around six-kilometre-long stretch from the back of Chattogram Export Processing Zone to Rashmonighat.

The proposed Bay Terminal is being set up on around six-kilometre-long stretch from the back of Chattogram Export Processing Zone to Rashmonighat. Photo: Star/file

Construction of Bay Terminal, a mega expansion project of the Chattogram port, has undergone further progress, with an international consultant having finalised its draft masterplan.

A joint venture of South Korean firms Kunhwa Engineering and Consulting Company Ltd and Daeyoung Engineering Company Ltd finalised the draft incorporating inputs from stakeholders and handed it over to Chittagong Port Authority (CPA) on Tuesday.

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The CPA is preparing to send the draft to the shipping ministry within a day or two to seek approval.

The government has already selected two global giants in port operations -- PSA Singapore and DP World of the United Arab Emirates -- to construct and operate two of the three terminals of the project under public private partnership, said the CPA sources.

Inputs of these two firms have been incorporated in the draft, they said.

The size, layout of the three terminals and the road and rail connectivity points are described in the draft, they informed.

The proposed Bay Terminal will be set up on around 6-kilometre-long stretch from the back of Chattogram Export Processing Zone (CEPZ) to Rasmonighat on the Bay of Bengal.

The mega project comprising three terminals will be able to accommodate ships having a draft of up to 12 metres and with lengths of up to 260 metres and there will be no need to depend on the high tide to berth ships.

CPA Chairman Rear Admiral Mohammad Sohail confirmed The Daily Star that the international consultant finalised the draft on incorporating all inputs from different stakeholders, including financer World Bank, and submitted it to them.

World Bank expressed interest to provide a loan of around $350 million for the construction of a breakwater and dredging channel of a channel leading to the Bay Terminal.

Prior to finalising the draft, the CPA arranged meetings with different stakeholders, including the two investors -- DP World and PSA Singapore, for their inputs, said sources.

Several international port operators had expressed interest to implement the mega project and later operate the three terminals.
The CPA will build a multipurpose terminal while the foreign firms the other two, said the port chairman.

"…the government decision has been taken in this regard," said Sohail.

He informed that they would send the draft to the shipping ministry within a day or two for approval.

It will take some time for the approval to come about as the ministry will call a meeting to hear from the CPA regarding the draft, said the CPA chairman.

He hopes for construction on the ground to begin by this year.

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Earlier - two years ago.

Artist's impression of the Bay Terminal

By Bangladesh correspondent 30/06/2020

At the same time, RSGT and DP World are on the priority list for operating the under-construction Bay Container Terminal (a 12-metre draught facility near Chittagong port) which will raise Chittagong port’s container handling capacity significantly.

The Bangladesh government is keen to enhance goods capacity of the country’s prime seaport, which frequently faces acute congestion.

“We are in talks with these foreign companies. An agreement will be signed after the negotiation is completed,” a senior shipping ministry official said.

Bay Terminal will be built nearly 10 miles north of the estuary and will comprise one 1,500-metre multipurpose terminal, one 1,225-metre container terminal and two 830-metre container terminals. It will have 13 jetties and accommodate vessels of up to the 280 metres long. The construction cost is estimated at $2.5bn.

Currently, vessels with a 9.5-metre draught can dock at Chittagong during high tide – Bay Terminal’s location nearer the sea will allow vessels to be able to berth independent of tides.

Sources say the government’s Public-Private Partnership Authority is in talks with PSA Singapore on technical, financial, and legal issues. The Singaporean company may be involved in capital dredging, building a breakwater in the bay and constructing the container terminals, except the multipurpose facility.

Several other companies, from China, India, Korea, and the Middle East, have expressed interest in investing in Bay Terminal construction, but until now PSA Singapore and RSGT are in pole position, confirmed an official.

Meanwhile, the government has engaged the engineering corps of the Bangladesh Army for construction of the Patenga Container Terminal, a 600-metre long facility with a back-up area of 26 acres and three berths with 9.5 metres of depth alongside. The $235m terminal be able to handle 360,000 TEU (Twenty Foot Container Equivalent Units) a year.

Chittagong has a designed handling capacity of 1.7m TEU, but last year handled 3.1m TEU.

 

[Bilal9]

Chinese tech makes local manufacturers, exporters competitive: Stakeholders​

Bangladesh imported $19.2 billion worth of goods from China in FY23, which was 27.7% of the country’s total import​

An employee inspects a circuit board on the controller production line at a Gree factory, following the coronavirus disease (Covid-19) outbreak in Wuhan, Hubei province, China August 16, 2021. Photo :Reuters

Highlights:

• Shasha Denims MD says 98% of agro machineries in Bangladesh are Chinese
• 20 years ago a western spinning machine was $90,000, the Chinese one was $20,000
• BGMEA president says Bangladesh can acquire technology and knowledge from China
• AK Khan Group says Western companies dominate high-end technology segments while China excels in basic technology
• Apparel industry slowly started shifting towards European technology after 2010 because of Europe's energy efficiency

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Chinese technologies have become a blessing for Bangladesh's small and medium business entrepreneurs, making their products and services competitive across the world, according to experts and stakeholders.

Thanks to Chinese technology advancements Bangladesh has developed a strong manufacturing base in readymade garments, textiles, dyeing, printing, packaging, accessories, food and agro-processing, motorcycles, automobiles, mobile phones, electrical and electronics.

In some cases, large industries also depend on Chinese machinery as Western technology is priced much higher, they said.
Besides, many businesses in the service sector – telecommunications, hospitality, healthcare, wholesale and retail – are also growing with the help of Chinese technology.

According to data from the central bank, Bangladesh imported $19.2 billion worth of goods from China in the last fiscal, which was 27.7% of the country's total import cost.

Bangladesh mostly imports capital machinery and parts, raw materials – cotton, fabrics, man-made filaments, staple fibre, plastics and articles, iron and steel, pharmaceuticals and chemicals from China.

Fazlee Shamim Ehsan, CEO of Fatullah Apparel, said once their industry was fully dependent on Chinese technology. "Otherwise we couldn't have developed our industry at this level."

"About 20 years ago a western spinning machine was about $90,000, while the same machine in China was priced at $20,000," he added.

He mentioned that a large volume of garment machinery is still imported from China.

Faruque Hassan, president of BGMEA, said China is far advanced in man-made fibre industry. "If the government provides policy support, Bangladesh can acquire technology and knowledge from China."

Joint ventures could be the best option to transfer technology, he added.

Chinese technology has strong presence in Bangladesh's construction sector as well, with China's construction machinery giant Sany Group alone accounting for 30% of market share supplying equipment to major projects like Padma Bridge, Dhaka Elevated Expressway, Dhaka airport's third terminal and Rooppur Nuclear Power Plant along with renewable energy plants.

China Harbour Engineering Co. Ltd. (CHEC) has been providing industrial chain solutions to roughly 20 projects so far including ports, roads, rails and environmental protection.

And Huawei has been a leading partner of Bangladesh's journey towards digitalization.

Al Mamun Mridha, general secretary of Bangladesh China Chamber of Commerce and Industry, said Chinese companies have been instrumental in transforming Bangladesh.

"In the coming years, we aspire to further strengthen our ties, explore new avenues of cooperation, and continue to work towards mutual prosperity," he said.

"The Belt and Road Initiative has been a beacon of hope, and together we will continue to illuminate the path toward high-quality development and a brighter future for both our nations," Mridha added.

China leading basic tech

Abul Kashem Khan, a director at AK Khan Group, one of the oldest conglomerates in Bangladesh, said everyone has benefited from Chinese technology as it is a cost effective option against western alternatives. "The cost of doing business will be much higher without Chinese tech."

Those aiming to start small or medium-sized businesses with limited investment find China a suitable option, he said, adding that it is essential to scrutinise Chinese companies' backgrounds before procuring products and technology.

Western companies today dominate sophisticated machinery and high-end technology segments while Chinese companies excel in basic technology, he noted.

For example, China has made excellent progress in telecommunications technology. There are no smartphones without Chinese technology, all big mobile phone makers rely on China.

Rezwanul Hoque, CEO of Ismartu Technology BD, one of the leading mobile phone manufacturers in Bangladesh, said the industry has been growing in Bangladesh based on Chinese technology and capital machinery.

This sector has the potential to be next to RMG in the export market as it has gained knowledge, skilled manpower and experience to produce quality mobile phones.

Shanat Datta, chief financial officer of Runner Automobiles, said, "Our motorcycle industry started its journey through Chinese technology, capital machinery and raw materials."

His company now also imports technology from Japan, Korea and India.

"Our electrical, electronic and home appliance manufacturing sectors are mainly dependent on China for technology, capital machinery and raw materials," said Kamruzzaman Kamal, director marketing of Pran-RFL Group.

Catching up with European tech

Shams Mahmud, managing director of Shasha Denims, said, "After 2010, utility prices went up and the apparel industry slowly started shifting towards European technology because of their energy efficiency."

However, Shams said today's agro sector still uses about 98% Chinese machineries.

Besides, Fatullah Apparel CEO Eshan stated, "China can adopt western technology after one or two years of innovation. Initially they develop it for their own market and after 5-6 years they develop it for international markets."

Furthermore, a number of western manufacturers now produce their machines in China to make them competitive for the global market, Ehsan added.

 

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Bangladesh imports continue to shrink heavily​

Source: Xinhua
Editor: huaxia
2023-09-25 18:46:45

DHAKA, Sept. 25 (Xinhua) -- Bangladesh's imports fell heavily in the first two months of the 2023-24 fiscal year through next June, the latest official figures showed.

Quoting the Bangladesh Bank (BB) data, an official who didn't like to be named said imports plunged 22.25 percent to nearly 12 billion U.S. dollars in July-August period on tightened import policy as part of austerity measures to curb the steady decline of foreign exchange reserves.

The central bank official said the settlement of letters of credit (LCs), generally known as actual imports, stood at 11,769.33 million dollars in the July-August period compared to 15,138.32 million dollars a year earlier.

Overall import orders also fell by 18.14 percent in the July-August period, showed the BB data.

The overall import orders, officially known as fresh opening of import letters of credit (LCs), decreased to 10,520.71 million dollars in July-August against 12,851.87 million dollars a year earlier, data showed.

According to the official, the central bank since the last fiscal year has taken various measures to discourage imports in a bid to boost the country's shrinking forex reserves, which eroded to 29.23 billion dollars at the end of the last month.

Amid shrinking forex reserves-depressed imports, Bangladesh's trade deficit in the last fiscal year dipped by 48.41 percent to 17.16 billion dollars year-on-year.

The latest data showed that the country's import payment was 69.50 billion dollars, down 15.76 percent, from July 2022 to June 2023, while earnings from exports stood at 52.34 billion dollars, up 6.28 percent, during the same period

 

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Remittance inflow dips 3yr low in Sept

Remittance inflow, a major source of USD earnings for Bangladesh, dropped to a three and a half year low this September, at a time when the country remains lase

businesspostbd.com

Unless Bangladesh taka goes down to at least 125 taka to a dollar, remittances will not increase.

 

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Singapore to elevate consulate in Bangladesh capital to high commission​

Source: Xinhua
Editor: huaxia
2023-09-22 00:44:30

DHAKA, Sept. 21 (Xinhua) -- Singapore will elevate its consulate in the Bangladeshi capital of Dhaka to a high commission from Oct. 1, reflecting the enhanced economic and people-to-people relations between the two countries, United News of Bangladesh reported on Thursday.

The upgrade was shared by Singapore's foreign minister Vivian Balakrishnan to Bangladesh's foreign minister AK Abdul Momen on Sept. 20 during a bilateral meeting on the sidelines of the 78th United Nations General Assembly in New York.

Momen had earlier requested the Singaporean foreign minister to set up a full-fledged mission in Dhaka that would benefit both countries while calling for more investment from Singapore in Bangladesh's special economic zones.

 

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Bangladesh’s Mostafiz Uddin in Vogue Business 2023 innovators list​

Prothom Alo English Desk
Published: 11 Sep 2023, 09: 51

Mostafiz Uddin

Bangladesh Apparel Exchange’s founder and chief executive officer Mostafiz Uddin has been recognized in the Vogue Business 2023 Innovators List as 'Sustainability Thought Leaders'.

“This year’s sustainability innovators are founders, activists, organisers and designers all working toward a common goal: to bring fashion’s footprint within the realm of planetary boundaries, minimising waste and spent resources. These are the people fighting the uphill battle and proposing new solutions for a better industry,” said Vogue Business.

The Vogue Business Innovators List 2023 highlights the trailblazers and organizations steering the fashion industry towards a promising future, grounded in sustainability and inclusivity.

 

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Uranium fuel reaches Rooppur Nuclear Power Project.

 

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Mirsarai Export Processing Zone investments have exceeded $18 Billion, local and Chinese companies get priority