The government is taking coordinated measures to provide policy and infrastructural support to the shipbuilding and ship recycling sectors to increase exports and tap growing demand in international markets, Commerce Minister Khandakar Abdul Muktadir said Thursday.

He said the government is prioritising the two sectors to expand Bangladesh’s export potential while efforts are underway to enhance domestic capacity and resolve bank guarantee-related complications faced by private shipyards.

The minister made the remarks as the chief guest at an exchange meeting with senior officials of Chattogram Drydock Limited (CDDL) and relevant stakeholders at the CDDL conference room.

Muktadir said several thousand old ships are expected to come under recycling globally over the next five to seven years, creating a major opportunity for Bangladesh.

The government is increasing the number of environmentally friendly green shipyards to tap the market, he said, adding that several green yards have already been approved while some others are awaiting approval.

Bangladesh has the potential to earn several billion US dollars in foreign currency annually from the sector in the future, the minister said.

He stressed the need to follow international standards and strengthen design capabilities to expand ship exports.

To enter European and North American markets, Bangladesh must ensure international compliance, he said, adding that plans are underway to establish a modern design and skills development centre in partnership with countries such as Norway and the Netherlands.

The minister identified bank guarantees as a major obstacle for private shipyards in implementing export orders.

To address the issue, the government is taking steps to introduce a “hybrid model” involving private companies and dockyards under the Bangladesh Navy, he said.

Under the proposed model, private companies would be able to complete shipbuilding projects using bank guarantee facilities under government supervision, he added.

Muktadir also said a high-level committee comprising the ministries of shipping; environment, forest and climate change; and commerce would work in coordination to develop the two sectors.

During the meeting, officials highlighted the potential of Chattogram Drydock to build large vessels. They stressed the need for modern cranes, fabrication shops, design facilities and additional construction docks to utilise the facility’s full potential.