Western Marine Shipyard Set for Major Export Comeback in 2025

For five years, Western Marine Shipyard has not made any important exports, but now it is gearing up for an impressive comeback. This shipbuilder, based in Chittagong, plans to send eight ships to the United Arab Emirates by 2025. This action shows that the shipbuilding sector in Bangladesh is making a strong comeback. In 2023, a contract worth $7.3 million was obtained by the company from Marwan Shipping Ltd in the UAE to build two oil tankers, two tugboats, and four landing craft. This represents the first major export contract for Western Marine since January 2020, when they last exported two large bulk carriers to India. Western Marine Managing Director Captain Sohail Hasan announced that the first vessel, a 69-meter-long landing craft named Rayan, has already been completed. Two high-powered tugboats called Khalid and Ghaya are scheduled for export by April, with the remaining five vessels to be delivered throughout 2025. What makes this deal especially valuable for Bangladesh is the payment structure. The UAE company is providing all the raw materials needed to build the ships, while Western Marine receives payment only for the construction work. This means the entire $7.3 million stays in Bangladesh as foreign currency earnings, since no money needs to be spent on importing materials. The return of this UAE buyer is particularly meaningful for Western Marine. The company previously built a similar landing craft for the same client in 2017. Captain Hasan sees this repeat business as proof that international buyers are satisfied with the quality of ships built in Bangladesh. Western Marine’s journey back to success hasn’t been easy. The company faced serious financial difficulties starting in 2014 when the global shipbuilding market experienced a major downturn. Several European buyers canceled orders worth millions of dollars, leaving the shipyard with half-finished vessels and mounting debts. The most significant setback came from a German company that canceled orders for four ships out of a 12-vessel contract worth €94 million. These cancellations led Western Marine to accumulate debts totaling over 2,100 crore taka with banks and financial institutions. However, the company didn’t give up. Instead, they focused on smaller projects, building fishing vessels and utility boats for government agencies and private buyers worth around 500 crore taka. During the difficult years from 2013 to 2023, Western Marine managed to survive by exporting smaller support ships to African countries, India, and other markets. The company has been working hard to restructure its debts and has already paid off 952 crore taka. They’ve negotiated grace periods with most financial institutions and are continuing discussions with others to regularize their remaining loans. Western Marine’s recovery story shows the resilience of Bangladesh’s shipbuilding sector. With proper support and favorable market conditions, Bangladeshi shipbuilders can compete successfully in international markets while creating valuable employment opportunities at home.