Analysis of Local Shipbuilding to Evaluate Sustainable Option

Abstract

Generally traditional shipbuilding is a low-tech, rudimentary and personnel-reliant industry which plays a key role for enhancing forward and backward economic linkages. Shipbuilding is a strategic keystone for many developing countries striving to replicate the economic trajectories of the present dominating industrial leaders like Japan, South Korea, and China. Historically, this sector has suffered from weak global regulations and often faced problems of systemic over-investment for the technological diversity and vast supply chain networks. Regardless of these difficulties, shipbuilding is still a lucrative avenue as it creates significant employment opportunities and thereby contributes substantially to national economic growth. Bangladesh is struggling to maintain sustained progress and global competitiveness despite having a rich maritime heritage and inherent shipbuilding expertise. The country significantly lags behind the leading market players in terms of workforce productivity, technological integration and a coordinated policy framework, although the labor costs are comparatively lower than those in other countries. Nevertheless, the market analysis reflects that, due to the strategic position, Bangladesh can capture the niche markets targeting small- and medium-sized vessels (1,000–20,000 DWT), which are currently underserved globally. In the near future, the global shipbuilding industry is expected to reach approximately USD 500 billion within 2035, and Bangladesh has the potential to contribute up to 2 to 5% of this market by improving workforce productivity, integrating advanced technologies and enhancing safety standards, which would ultimately contribute to national economic growth. This research study will investigate the prospects and challenges of domestic shipbuilding by examining the shipbuilding history, technological advancement, projected global market dynamics, future growth trajectory, and environmental sustainability.