The role of Khulna Shipyard on development of

Bangladesh

OVERVIEW OF KHULNA SHIP YARD

Khulna Shipyard (KSY) has been developed into a leading operating enterprise in
the field of repair of ships and new shipbuilding's. You know that from the ancient
days, sea has been extensively used for exploiting resources, transportation of
goods for the economic development and civilization. During those days, sea
going ships were the main source of transportation and ship building capacity was
a great advantage for the nations. Bangladesh as a maritime nation has a bright
history of shipbuilding. Many of the foreign nations came to this land to build/buy
sea-going ships. However, due to many reasons she could not maintain that
standard of building sea/ocean going ships. However, once again, in 60’s many of
the ship building industries started to build many vessels of different sizes. Thus,
KSY started her journey in 1957.

Bangladesh is a maritime nation with 40,000 sq nautical miles sea area, which is
enriched with fishery and mineral resources. Moreover, the country is covered by
24,000 km long network of many rivers, canals and water bodies, which occupy
about 11% of her total area. Thus, shipbuilding and ship-repair industries are
expected to play a key role in national economic and industrial activities in
Bangladesh. Thereby, it can also solve unemployment problem to a great extent.

After the partition in 1947, considering a potential shipbuilding market in this

zone, Khulna Shipyard was established with the assistance of a German firm in
1957. Until 1965, German and British companies jointly operated the yard. In
1965, EPIDC took over the management of the yard and ran up to the Liberation
War, 1971. Soon after the liberation, the Shipyard was placed under BSEC on 26
Mar 1972. The yard was running on marginal profit until the year 1983-84. After
that, it started to incur losses. Govt. declared KSY as a sick industry in 1990 has
and decided to privatize. On 03 Oct 1999, the yard was handed over to
Bangladesh Navy.

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Organ gram of the organization

Major

Divisions

The major divisions under which different shops and sections carry out the works
are Design and Planning, Shipbuilding, Engineering and Electrical divisions.

a. Design & Planning Division. Even in the present computer age,

ship design is a complicated and highly technical process. It involves skilled and
experienced ship designer, lot of calculation, hundreds of drawings, thousands of
men-hour is needed to design and construct a ship. Experienced naval architects
and engineers need to work hard before we undertake any new construction or
repair work.

b. Shipbuilding Division. KSY can construct ships up to 700 tons

lightweight. Major shops under this division are Platter shop, Carpentry shop and
civil section.

(1) Platter Shop. Possesses various kinds of machinery and facilities. In

lofting section, full size layouts drawing of the ship and body plan are made.
Platter shop undertakes different welding and cutting techniques to construct and
repair of ship's hull, structure and fittings including fabrication of machinery
spares.

(2) Carpentry Shop. All types of wood works, furniture making, paneling,
pattern making for machinery spares are the responsibility of Carpentry shop.

(3) Civil Section. Not only do the civil works onboard ships, it also carries
out the repair and construction work of all building structures of the yard.

DGM Shipbuilding controls all activities of shipbuilding division under the guidance
of GM (Production).

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c. Engineering Div. It comprises machine shop (outdoor), machine shop
(indoor), foundry shop, docking and maintenance section.

(1) The outdoor section carries out repair and installation of main engines,
generator engines, propulsion system, rudder and steering system including their
manufacturer.

(2) Indoor section is responsible for the fabrication and repair of spares. This
shop carries out repairing of propeller shaft, rudder stalk, bush, pump, capstan
and other accessories.

(3) Foundry shop. Casting of critical machinery spares are done by the
Foundry shop.

(4) The docking section looks after the docking and undocking of ships. The
yard has a slipway having a capacity of docking and undocking of 700 tons
lightweight vessel. We have 8 in number 100m length berths which can
accommodate about 16 to 20 medium size ships.

d. Electrical Division. It comprises electrical shop, electronic shop, air-

conditioning and refrigerating shop. These are primarily responsible for repair,
maintenance, testing and installation of electrical and electronic equipment.
These shops also looks after the maintenance and new installation of the yard
and as well as accommodations and buildings of the KSY.

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Yard facilities :

Total Area: 68.97 acres, with 549 miters River front.

Slipway: A Slipway of 84 miters length.

Side Tracks: Eight side tracks, each of 99 miters.

Crane: 1 x Eight ton capacity and 2 x Five ton capacity berth crane.

Jetty Crane : 1 x thirty ton capacity

Workshop Crane: Shops are equipped with overhead crane of various

capacities ranging from 5 to 30 tons.

Design & Planning: Managed by experienced Naval Architects &

Engineers.

Platter Shop: 36 different kinds of machinery.

Machine Shop: 63 different kinds of machinery.

Foundry Shop: Different types of Furnace.

Carpentry Shop: Facilities for wood works, painting and sail & rigging.

Dredger Section : 2 x Dredger

Power Station : 2 x Generator (437 KW & 256 KW)

yard Design & Planning Department

Our objective is to contribute to the business success of our customers in their

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maritime operations through the effective use of our well designed and reliably
built ship and craft. Design and Planning Department of KSY plays the vital role
in achieving the above objectives through their effective design and planning
works. Our Design Department has both manual and AUTO CAD design
facilities. Design and Planning Department is continuously monitoring the latest
development in the engineering field and improving day by day. The
department is responsible for providing drawing & documentation for new
project and modification works. Quality assurance measures are also ensured by
design & planning department. Major functions /activities of this department are
listed below:

To prepare estimate.

To prepare offer.

To participate in the tender.

To co-ordinate/ maintain liaison with the customers.

To prepare ships and mechanical related drawings.

To prepare work done certificate.

To prepare contract agreement.

To prepare technical specification for new built vessel as well as to

prepare comparative statement.

Correspondence with the local agents and foreign principals to procure

machinery/ equipments for vessels.

To prepare monthly return showing the present state of new building/

repair/renovated job in hand.

Preparation of the minute of monthly production meeting.

THE ROLE OF KSY ON THE DEVELOPMENT OF

BANGLADESH

CAPABILITIES AND ACHIEVEMENTS

Capabilities

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KSY is capable of:

a. Building and repair ships up to 275 ft length and 700 tons lightweight.

b. Building and repair of industrial machinery, spares and bridge structure.

c. Production capacity of this yard is 4000 tons steel equivalent per year.

Achievements

With those capabilities, starting from 1957 till today KSY built 644 new ships,
renovated 10 ships & repaired over 1900 vessels. KSY, while under BSEC,
completed 15 New Building of ships for last consecutive 8 yrs before taking over
by BN. KSY, while under BN, completed 30 New Building of ships for consecutive
9 yrs after taking over by BN.

ON GOING AND FUTURE WORKS

Ongoing works

a. New Building Projects are shown on the screen:

(1) 2 X Fire Fighting Boats for Bangladesh Fire Brigade (FSCD).

(2) 1 X K-type ferry for BIWTC.

(3) LCVP Type C for Bangladesh Army.

(4) Pontoon for Khulna City Corporation.

b. Repair & Renovation Works (Job in hand):

Vessel Name Owner

CGS Pabna BCG

BNS SHAHID MAKHDUM BN

BNS Shah Poran BN

MV Trishna MPA

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 M T SIBSA MPA

M V JHARNA CPA

c. Manufacturing Work (Job in hand):

Owner Job

Carew & Company (BD) Ltd. Slates & Baskets

North Bengal Sugar Mill Ltd. Mild steel plate shearing

d. Expected Job: We expect many jobs and few of them are:

Vessel Name No. of Vessel Owner

Patrol Craft 5 Bangladesh Navy

Dredger (New) 5 BWDB

Dredger (Renovation) 5 BWDB

Ramu-Shangu (Cargo) 1 BIWTC

M V Oparajita 1 Mongla Custom House

(Motor Launch)

M L BANO RANI 1 B F O Bagerhat

B N Pontoon Mongla,K-005 1 Bangladesh Navy

B N T SEBAK 1 Bangladesh Navy

BNS SURMA 1 BN

KANDARI- Ι Ι 1 CPA

BANO KANNAYA 1 Forest

Support Pontoon 2 FSCD

Support Pontoon - BDR

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ROMEL enlargement 1 RIO Shipping

COMCHIT Pontoon 1 BN

COMKHUL Pontoon 1 BN

SHER-E-BANGLA (sister ship of 1 BIWTC

SONARGAON)

DFO Fuel Storage Tank 40 BanglaCat

Iron Roller 4 Noapara Jute Mills Ltd.

Pontoon K-003 1 BN

LCVP-12 1 BN

LCT-101 1 BN

LCVP-013 1 BN

BNS Madhumati 1 BN

BNS Shah Amanat 1 BN

BNS Imam Gazzali 1 BN

BNS TISTA 1 BN

d. It has also some manufacturing jobs from Sugar Mills, Dhaka City
Corp and Chittagong City Corp and Khulna City Corp.

POTENTIAL CUSTOMERS

Potential customers

Our potential customers:

a. Bangladesh Navy

b. Bangladesh Coast Guard

c. Water Development Board

d. Chittagong Port Authority

e. Mongla Port Authority

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 f. Bangladesh Railway

g. Semi Govt. organizations

h. Private ship owners

j. Sugar mills

k. Power Development Board

l. Roads and Highways

m. Dhaka City Corporation

n. Khulna City Corporation

p. Chittagong City Corp.

ADOPTION OF FEW POLICIES TO INCREASE EFFICIENCY

After taking over, Bangladesh Navy adapted few policies to rescue this yard from
loss and make it a profitable enterprise.

a. CBA activities have been stopped totally. Instead a welfare

committee has been formed to look after the welfare of the workers.

b. Purchase process has been geared up to reduce procurement time.

c. Quality control Cell has been established.

d. Morale of the workers has been raised by ensuring timely payment,

Promotion/Up gradation and providing various incentives and other
facilities.

e. Moreover production cost has been reduced by:

(1) Employing casual workers on daily basis.

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 (2) Minimizing production time by close supervision.

(3) Using subcontractors for petty jobs as outsourcing.

(4) Minimizing overhead cost.

(5) Ensuring effective material management.

(6) Reducing idle man-hour.

(7) Procuring raw material at minimum possible price.

f. In addition, we have created trust among our customers through:

(1) Ensuring quality of work.

(2) Timely delivery of Job.

(3) Providing after sale service and

(4) Offering reasonable rate for repair and new building works.

ANALYSIS AND FINDINGS

FINANCIAL CONDITION

Here is comparative analysis of financial state of KSY during the period before and
after taking over by BN. As you can see in the screen, while under BSEC for 42
years, KSY gained profit for 18 years and incurred loss for 24 years. You can also
see that KSY had undergone losses for consecutive 15 years from 1984 to 1999.
For this reason, government decided to hand over the responsibility of KSY to BN.
The yard has started to make profit from the fiscal year 1999 – 2000 after taking
over by Bangladesh Navy.

YEAR PRODUCTION SALES PROFIT/LOSS (TK. CRORE)

1998-1999 12.23 6.08 7.22 (LOSS)

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1999-2000 6.26 14.53 0.13 (PROFIT)

2000-2001 9.03 12.32 7.73 (PROFIT)

2001-2002 13.93 14.36 8.28 (PROFIT)

2002-2003 31.09 47.02 13.95 (PROFIT)

2003-2004 7.35 11.39 4.09 (PROFIT)

2004-2005 10.81 13.53 11.03 (PROFIT)

2005-2006 8.00 10.13 3.91 (PROFIT)

2006-2007 10.60 15.22 6.75 (PROFIT)

2007-2008 12.88 18.81 6.29 (PROFIT)

2008-2009 11.57 5.30 1.64 (PROFIT)

UPTO MAR 09

FUTURE PLAN

We have some limitations like age old machinery, retirement of experienced

engineers & workers, competition with private dockyards etc. To overcome the
limitations:

a. Continue phase wise modernization of yard facilities and induce

modern technology.

b. Introduce formal training system. Meanwhile, in-house informal

training is being imparted.

c. Reduce further overhead cost by employing number of casual

workers and ensuring proper management of work force.

d. Explore potential domestic and international market.

e. To achieve the ability to construct medium size War Ship.

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MACHINERY / EQUIPMENT UNDER PROCUREMENT

KSY is procuring some machinery & equipments to enhance the capabilities of the
yard. These are:

Hydraulic Press Bending Machine Purchased and reached at KSY on 13-10-

2009.

Mobile Crane Machine Purchase order has been placed.

Customer Barrack Work is in progress.

CNC Cutting Machine Procurement is in progress.

Auto Shot Blast and Painting Machine Spec preparation under progress.

Shipbuilding Fabrication Shed Construction Consultancy is in progress.

Shed for CNC Cutting Machine and Auto Shot Blast Machine.

Ship Design Software Committee formed and preparation for tender

specification is in progress.

Arrangement of appropriate storage for’ Materials Package of Patrol Craft ‘,

etc.

Conclusion

These are the ideas about facilities available in Khulna Shipyard Ltd. I have also
mentioned the prospect of shipbuilding industry in Bangladesh. BN is trying to run
it commercially by appointing naval officers at higher echelon of management.
The naval authority has restored discipline in all spheres and reduced production
cost quite remarkably and managed to make it a profitable organization. We now
emphasize more on quality product in competitive price and timely delivery of
jobs. Despite all limitations, we are putting our effort to run the yard at its
optimum capacities. At the same time we have plan to modernize the shipyard in
phases to meet the future challenges. The nation has entrusted Navy to run KSY
efficiently. We are working very hard to fulfill that task. We look forward to see a
modern shipyard in future with the co-operation of all concerned.

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 Bibliography

1. Different Internship report of NUB Library.

2. Www. Khulnashipyardltd.bd.com.

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