[🇧🇩] Ship Recycling Industry in Bangladesh

[Bilal9]

Source : https://www.tbsnews.net/economy/bangladesh-again-tops-ship-recycling-despite-65-decline-708262

Bangladesh again tops in ship recycling despite 65% decline​

Infograph: TBS

Bangladesh maintains the position as the top ship recycling nation despite a 65% decrease in its shipbreaking activities, reports the United Nations Conference on Trade and Development (UNCTAD).



Accounting for over one-third of global ship recycling, the country saw a reduction from 8.02 million tonnes in the previous year to 2.8 million tonnes in the 12 months leading up to January 2023.

Stakeholders attributed this decline to several factors, including the ongoing dollar crisis, diminished demand due to the near-completion of mega projects, high scrap prices in the international markets and the Russia-Ukraine conflict.

Mohammad Taslim Uddin, managing director of KR Ship Recycling Yard, told The Business Standard that there was a surge in demand for steel products in local markets driven by government-led mega projects.

"As these projects near completion, the demand has dwindled, discouraging shipbreakers from importing additional vessels," said Taslim, adding that the Ukraine-Russia war had impacted ship imports, as Russian sources of scrap ships were unavailable.

Jahir Uddin Rinku, managing director of PHP Ship Recycling Yard and vice president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), expressed concerns about the challenges faced by shipbreakers.

He noted that the difficulty of obtaining US dollars due to exorbitant bank exchange rates hindered their ability to import ships for recycling. Also, the gradual rise in international scrap ship prices and the widening gap between local and international markets have contributed to the decline in ship dismantling activities in the past year.

UNCTAD data shows in the 12 months to January 2023, Bangladesh recycled 2.8 million tonnes of ships accounting for 37.2% of the world total, followed by India with 32% and Pakistan with 17%.

Of the total ships recycled by Bangladesh, 50.4% were oil tankers, 41% were bulk carriers, 2% were ferries and passenger ships, 1.9% were chemical tankers, and 1.1% were general cargo ships, said the report titled "Review of Maritime Transport 2023" published on Wednesday (27 September).


But from January 2021 to January 2022, Bangladesh recycled 8.02 million tonnes of ships accounting for 52.4% of the world total, of which nearly 57% were oil tankers, 25% were bulk carriers and 9% were liquefied gas carriers, reads the annual flagship report.

Some disruptions, including financial pressures, constrained recycling activities, mentioned the report.

However, this year, interest in ship recycling picked up as shipping market conditions softened and issues relating to letters of credit in Bangladesh eased.

Ship recycling is anticipated to get a bigger boost in 2023 as shipowners renew and upgrade their fleets to comply with new Greenhouse Gas (GHG) emission regulations of the International Maritime Organisation (IMO).

More containerships are expected to be recycled in anticipation of a surge in new builds and lower freight rates in the coming years.

At the same time, the ship recycling market is expected to become more volatile, influenced by the IMO's EEXI and CII regulations, which help assess the CO2 emissions intensity of ships.

Factors such as speed reduction and removal from service for ship retrofitting will play a role in shaping the market, said the report.

In 2022, worldwide 7.5 million gross tonnes, representing less than 0.5% of the total active fleet, were sent for recycling.

Despite more stringent environmental rules and rising steel costs, market conditions took precedence, with shipowners eyeing the peaks in freight rates. Demand for older tonnage increased the average value of older vessels.

Asia leading the shipping fleet

At the start of 2023, 18 of the 35 major ship-owning companies were in Asia. China is the second-largest ship-owning country after Greece, followed by Japan (3rd), Singapore (4th), Hong Kong, and China (5th).

When measured by value, ship owners in China have an 11.04% share of the world fleet, second to Greece with 11.8%. Japanese shipowners hold a 10.73% share.

Hong Kong is the world's fourth-largest flag state of registration in terms of deadweight tonnage (DWT), with 200.07 million deadweight tonnes in its fleet — an 8.8% share of the world fleet. This represented a 3.7% fall in deadweight tonnes between 2022 and 2023.

In terms of vessel numbers, Hong Kong, China has a 2.4% share of the world fleet with a total of 2,537 vessels flying its flag.

Singapore takes fifth place in the leading flags of registration, followed by China in sixth place and Japan in tenth place. Other flags in the top 35 include Indonesia (12), the Republic of Korea (18), India (19), Vietnam (22), Malaysia (25).

Asian countries continue to lead in cargo handling performance. According to the Container Port Performance Index (CPPI), jointly produced by the World Bank and S&P Global Market Intelligence, 18 of the top 25 ports globally are in Asia, including 11 in Eastern Asia and four in Western Asia.

 

[Bilal9]

Meeting of IMO Secretary General with Industry Minister

Bangladesh working towards sustainable development of ship recycling industry: Industries Minister

Photo: Ministry of Industry

Industries Minister Nurul Majid Mahmud Humayun said that Bangladesh is working towards the sustainable development of the ship recycling industry by upholding and implementing the Hong Kong Convention.

IMO Secretary General Arsenio Antonio Dominguez Velasco said these things to reporters during a meeting with the minister at his office in Motijheel in the capital on Thursday (May 30).

The minister said that Bangladesh ratified the Hong Kong Convention on June 25 with the aim of reprocessing ships that have reached the end of their life in a safe and environmentally friendly manner. Accordingly, Bangladesh has to comply with the Convention by 26 June 2025 and ensure treatment storage and disposal facility (TSDF) in all yards.

Nurul Majid Mahmud Humayun said, to sustain this potential industry of Bangladesh, the necessary cooperation and advice from international maritime organizations and development partners should be implemented quickly. The Minister sought IMO's assistance in obtaining soft loans from development partners or international financial institutions for shipyard owners to comply with the Hong Kong Convention.

During the meeting, the IMO Secretary General said that the Hong Kong Convention introduced by the IMO is very important for the sustainable development of the ship recycling industry. He said that his visit was to see the steps taken by Bangladesh in this regard and to exchange experiences.

Mr. Dominguez noted that, he was happy to see that different ministries of Bangladesh are working together for the development of this industry.

During the meeting, the Additional Secretary of the Ministry of Industry (on routine duty of the Secretary) SM Alam, Ambassador of Bangladesh to the United Kingdom Sayeda Muna Tasnim, Director General of the Department of Shipping Commodore Mohammad Maqsood Alam and the Additional Secretary of the Ministry of Industry Dr. Shah Md. Helal Uddin and others were present.

The minister noted that Bangladesh has been recycling ships since 1980. Sitakunda upazila of Chittagong has more than hundred ship cycling yards. 50 of the said yards are operational. About 60 percent of the country's overall steel demand is met from the ship recycling industry. About 2 lakh people are directly and indirectly dependent on this sector.

 

[Saif]

Ship recycling in Bangladesh needs greater safety efforts

A recent tragedy in Bangladesh's ship recycling industry once again highlighted the persistent challenges related to worker safety.

www.thedailystar.net

Ship recycling in Bangladesh needs greater safety efforts

All stakeholders—government officials, yard owners, consultants, and safety agencies—must take immediate action to ensure a safe working environment for all workers in Bangladesh’s ship recycling industry. FILE PHOTO: STAR

A recent tragedy in Bangladesh's ship recycling industry has once again highlighted the persistent challenges related to worker safety, competent management, and effective regulatory enforcement. Twelve workers were injured in a flash fire or explosion at a ship recycling yard. Nine of the workers suffered serious burns, of them two succumbed to their injuries and seven others are in critical condition. This devastating accident has cast a shadow over the industry and saddened all stakeholders involved.

While there have been positive steps toward adopting greener and more sustainable practices, such as the establishment of five "green yards" complying with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, this incident underscores how much progress is still needed. Structural improvements alone are not enough to ensure safety in daily operations. What is missing is a consistent focus on basic safety techniques and practices, which are lacking in most of the yards.

Despite the industry's critical role in providing raw materials, employment, and revenue, the working conditions in many ship recycling yards remain hazardous. Issues such as oil spills, inadequate safety measures, and insufficient worker training pose significant risks. A lack of competent management and oversight further exacerbates these problems. The tragic loss of 142 workers over the past decade reflects a persistent culture of neglect, even though accident rates have decreased in recent years.

Since being officially declared an "industry" in 2011, the shipbreaking sector has made significant economic contributions, importing 2-2.5 million tons of scrap steel annually, according to a presentation by the Ministry of Industries. However, many yards—especially those not compliant with the Hong Kong Convention—continue to use unsafe methods. The enactment of the Bangladesh Ship Recycling Act in 2018 and the ratification of the Hong Kong Convention in 2023 represent progress, but the recent tragedy demonstrates that legislation alone is not enough. Without rigorous enforcement and accountability, safety will remain elusive.

As Bangladesh handles the majority of end-of-life vessels in South Asia, the global shipping industry is closely watching its ability to responsibly manage the global volume of ship recycling. To claim the title of a safe and environmentally sound recycler, Bangladesh must address several critical issues including developing yards that meet all regulatory requirements, implementing effective downstream waste management solutions and ensuring that workers are well-trained and proactive about health, safety, and environmental issues. Besides, ships should maintain an inventory of hazardous materials to manage their disposal safely during recycling. Proper documentation of compliance activities must also be maintained for audits and inspections. Finally, all stakeholders must act transparently and be held accountable for their responsibilities.

At the same time, the role of international shipping companies in ensuring responsible ship recycling must be scrutinised. Bangladesh cannot become a dumping ground for hazardous waste. Global stakeholders must share responsibility for ensuring safer, more environmentally sound practices. Bangladesh's efforts to align with the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal and formulate hazardous waste management rules are steps in the right direction. The potential support from Japan for establishing Treatment Storage Disposal Facilities (TSDF) further demonstrates commitment. However, these initiatives alone will not be enough to guarantee safety in all ship recycling yards.

While the industry faces financial challenges, particularly due to declining ship imports and economic uncertainty, safety and environmental regulations must remain a priority. This recent tragedy should serve as a wake-up call for the entire industry. Without a thorough investigation and the implementation of corrective measures, the cycle of accidents will continue, claiming more lives and perpetuating a culture of impunity. All stakeholders—government officials, yard owners, consultants, and safety agencies—must take immediate action to ensure a safe working environment for all workers in Bangladesh's ship recycling industry.

Muhammed Ali Shahin is a human rights activist working with Young Power in Social Action (YPSA).​

 

[Saif]

Ensure fair wage for shipbreaking workers

Why is the wage board for shipbreaking workers not implemented yet?

www.thedailystar.net

Ensure fair wage for shipbreaking workers
Why is the wage board for these workers not implemented yet?

VISUAL: STAR

It is frustrating to see shipbreaking workers breaking their backs day after day, yet being consistently denied a living wage. According to a report in this daily, owners of shipbreaking yards have been ignoring the wage board for workers for six years, paying a fraction of the salary they are owed. In the current economic situation where inflated prices of essentials have exacerbated the cost-of-living crisis, denying them the minimum wage is totally unacceptable.

The wage board for shipbreaking workers was announced in 2018, with a four-grade wage structure ranging from Tk 16,000 to Tk 31,750. However, none of the yard owners have abided by this structure ever since. Under the current payment system, a ship cutter gets a monthly wage of Tk 12,000-13,000, while an assistant cutter gets Tk 9,000-10,000. These amounts can barely pay for house rent, utilities, and basic food; workers cannot afford basic medication, education for their children, and even proper nutrition.

Yard owners have reportedly been hiring workers on contract to avoid the wage board, which is in direct violation of the Labour Act. Curiously, none of these owners have faced any legal repercussions in all these years. They don't even pay heed to warnings by the Department of Inspection for Factories and Establishments (DIFE) to implement the wage board. How is it that the owners can get away scot-free with such flagrant violations while the workers are forced to survive on meagre income without any help whatsoever?

Moreover, on the ground, their safety often gets zero preference amid insufficient supply of protective gear and proper tools as well as poor access to emergency medical care. As a result, accidents that could otherwise be avoided often turn fatal. On top of that, the workers don't even get paid properly. This cycle of abuse must stop. Workers in shipbreaking yards, RMG factories, and other industries have been exploited for too long; it's high time their welfare was made a top priority by a government that emerged out of the sacrifices of ordinary people including workers. The government must ensure full implementation of the wage board without delay. And necessary adjustments must be made to the wage structure taking the current inflation into consideration, so that workers get a decent wage and can live a life of dignity.​

 

[Saif]

Bangladesh still top shipbreaking destination

Bangladesh remained the global shipping industry’s first choice for scrapping vessels in 2024, even though the overall import fell to a six-year low amid dollar constraints and subdued demand due to economic woes.

www.thedailystar.net

Bangladesh still top shipbreaking destination
Yet imports fall to 6-year low

Bangladesh remained the global shipping industry's first choice for scrapping vessels in 2024, even though the overall import fell to a six-year low amid dollar constraints and subdued demand due to economic woes.

Shipbreaking yards in the densely populated South Asian country imported 130 ships for scrapping last year, according to an annual list on ship dismantling published by NGO Shipbreaking Platform earlier this week.

The figure was 23.5 percent lower than that last year.

The platform said 409 ships were dismantled globally in 2024, of which 255 ended up in South Asian yards.

To be specific, 80 percent of the vessels were scrapped last year under substandard conditions on the beaches of Bangladesh, India, and Pakistan.

"Bangladesh remains the shipping industry's first choice for scrapping, despite the grave consequences for workers, local communities, and fragile coastal ecosystems," the NGO Shipbreaking Platform said in a press release.

Nine workers lost their lives dismantling ships in South Asia in 2024, with another 45 workers injured due to unsafe working practices, it added.

Of those, Bangladesh saw one of last year's worst accidents.

While dismantling an oil tanker, a massive explosion claimed the lives of six workers and left six others critically injured at SN Corporation, a yard on the beach of Chattogram, the platform said.

Bangladesh's shipbreaking yards, situated in the southeastern coastal division of Chattogram, imported 280 vessels for dismantling in 2021, the highest in the past six years. Imports have fluctuated since then.

"Local market conditions have not been good this year. This is because of problems with imports due to the dollar crisis and a decline in our sales," said Md Abu Taher, president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA).

Meanwhile, the total weight of the imported scrap vessels dipped by around 52 percent, according to data from the Bangladesh Ship Breakers and Recyclers Association.

"Our main buyers are steel re-rolling mills. They are registering a downturn in business as public construction has declined," he added.

"So, our sales have dropped. We are incurring huge losses. But our establishment costs have not declined, even though business has," Taher added.

He said the prospect of a recovery in business looks grim. "Who will buy scrap from us to make steel rods unless the construction sector is revived?" he questioned.

Bangladesh has 150 shipbreaking yards, and around 30 are currently in operation. Seven yards have so far received clearance as "green" yards, while 15 are preparing to become "green" yards, according to Taher.​

 

[Bilal9]

German investors explore ship-breaking industry in Chattogram​

The investors were particularly impressed by the green initiatives and infrastructure in place.​

German investors at PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram on 8 April. Photo: Courtesy

German investors at PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram on 8 April. Photo: Courtesy

A delegation of 11 German investors, led by Ambassador Achim Tröster, visited the PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram this afternoon (8 April) to explore business opportunities in Bangladesh's ship-recycling industry.

The visitors toured various sections of the facility and expressed keen interest in the technological advancements and environmental practices being implemented at the yard, said Zahirul Islam, managing director of PHP Ship-Breaking and Recycling Industry.

He said the investors were particularly impressed by the green initiatives and infrastructure in place.

"The delegation is here in Bangladesh to participate in the Investment Summit scheduled for Wednesday at the Hotel InterContinental in Dhaka. As part of their tour, they visited our yard to gain insights into the country's ship-breaking capabilities," said Zahirul.

He added that the German investors showed enthusiasm about the potential for collaboration, indicating they would consider sending German vessels to Bangladeshi green yards for recycling in the future. "If we can attract European ships for recycling, it would be a significant boost for our industry," he noted.

 

[Saif]

German investors explore ship-breaking industry in Chattogram​

View attachment 16563

The investors were particularly impressed by the green initiatives and infrastructure in place.​

German investors at PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram on 8 April. Photo: Courtesy

German investors at PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram on 8 April. Photo: Courtesy

A delegation of 11 German investors, led by Ambassador Achim Tröster, visited the PHP Ship-Breaking and Recycling Yard in Sitakunda of Chattogram this afternoon (8 April) to explore business opportunities in Bangladesh's ship-recycling industry.

The visitors toured various sections of the facility and expressed keen interest in the technological advancements and environmental practices being implemented at the yard, said Zahirul Islam, managing director of PHP Ship-Breaking and Recycling Industry.

He said the investors were particularly impressed by the green initiatives and infrastructure in place.

"The delegation is here in Bangladesh to participate in the Investment Summit scheduled for Wednesday at the Hotel InterContinental in Dhaka. As part of their tour, they visited our yard to gain insights into the country's ship-breaking capabilities," said Zahirul.

He added that the German investors showed enthusiasm about the potential for collaboration, indicating they would consider sending German vessels to Bangladeshi green yards for recycling in the future. "If we can attract European ships for recycling, it would be a significant boost for our industry," he noted.

We are one of the largest ship breaking industries in the world. The German investors can provide technology and money to make our ship breaking industry greener. Profit in this sector in guaranteed.

 

[Bilal9]

We are one of the largest ship breaking industries in the world. The German investors can provide technology and money to make our ship breaking industry greener. Profit in this sector in guaranteed.

Agreed. Most of the terms for green ship recycling is agreed on the Hong Kong Convention. Ship recyclers from Alang in India and Gadani in Pakistan were certified last year, but some from Bangladesh may also have already certified (PHP Bangladesh in particular). PHP followed Green ship recycling far earlier than most other recycling companies in South Asia. You can see from the matrices below that cost of ship recycling in Bangladesh per ton is lower than India, but higher than Pakistan.

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships

www.imo.org

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Hong Kong Convention Demystified: A Practical Guide to Green Ship Recycling​

August 21, 2024

Navigating the complexities of ship recycling has become increasingly crucial for ship owners as environmental regulations tighten across the globe. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, known simply as the Hong Kong Convention, sets the international standard for recycling ships in a manner that protects both human health and the environment. As this convention gains traction worldwide, ship owners must understand its requirements and how to comply effectively. This guide provides practical insights and resources, including certified recycling facilities, cost-benefit analyses, and compliance strategies, ensuring that your ship recycling process is both compliant and efficient.

** Please fact check data as there may be inaccuracies and these figures can change over time. Please send comments / suggestions to editor @ shipuniverse.com **

Understanding the global landscape of ship recycling is essential for making informed decisions. This table provides a snapshot of the leading ship recycling countries, highlighting their compliance with the Hong Kong Convention and the availability of certified facilities. It offers valuable insights for ship owners looking to responsibly recycle their vessels.

Country	Status of Hong Kong Convention Ratification	Number of Certified Recycling Yards	Key Environmental and Safety Regulations	Average Cost of Recycling (USD)
India	Ratified	92	Compliance with Supreme Court guidelines; Occupational Safety Standards	$300-$400/ton
Bangladesh	In Progress	20	National Policy for Shipbreaking; Environmental Impact Assessments	$250-$350/ton
Pakistan	Not Ratified	10	Minimal regulatory oversight; Some adherence to ILO guidelines	$200-$300/ton
Turkey	Ratified	22	Strict adherence to EU and IMO standards; Environmental management systems in place	$350-$450/ton
China	Ratified	100+	Comprehensive national regulations; Advanced waste treatment facilities	$400-$500/ton

Complying with the Hong Kong Convention involves adhering to several key requirements designed to ensure safe and environmentally sound ship recycling. This table outlines some of these critical requirements, including the necessary steps for compliance, estimated costs, and potential challenges that ship owners might face.

Requirement	Description	Compliance Steps	Estimated Cost	Potential Challenges
Inventory of Hazardous Materials (IHM)	Ships must maintain an inventory of all hazardous materials onboard.	Survey and document all materials; Update inventory regularly.	$10,000-$30,000	Costly and time-consuming for older ships.
Certified Recycling Facilities	Ships must be recycled at facilities certified to handle hazardous materials safely.	Select a certified yard; Ensure proper documentation and certification.	Varies by location and yard capacity.	Limited availability of certified facilities.
Ship Recycling Plan (SRP)	Develop a plan that outlines how the ship will be dismantled and recycled.	Work with a certified recycling yard to create a compliant SRP.	$5,000-$15,000	Requires close collaboration with the recycling yard.
Safe Working Conditions	Ensure the health and safety of workers involved in the recycling process.	Implement safety protocols; Provide training and PPE.	$5,000-$20,000	Enforcing compliance in countries with weaker regulations.

An Inventory of Hazardous Materials (IHM) is a mandatory component of compliance with the Hong Kong Convention. This table identifies the most common hazardous materials found on ships, their typical locations, associated risks, and safe disposal methods, helping ship owners prepare for recycling in a responsible manner.

Material	Location on Ship	Potential Hazards	Safe Disposal Methods	Regulatory Requirements
Asbestos	Engine room, insulation, piping	Carcinogenic; respiratory issues	Sealed removal and disposal at certified hazardous waste facility	Strict regulation under international conventions; requires IHM documentation
Polychlorinated Biphenyls (PCBs)	Electrical equipment, cables, transformers	Carcinogenic; toxic to environment	Incineration at high temperatures in licensed facilities	Banned or restricted use in most countries; must be identified in IHM
Heavy Metals (e.g., lead, mercury)	Batteries, paints, ballast water tanks	Neurotoxic; environmental contamination	Recycling or disposal at hazardous waste facilities	Strict disposal requirements under MARPOL and other conventions
Ozone-Depleting Substances	Refrigeration systems, fire extinguishing systems	Contributes to ozone layer depletion	Recovery and destruction in certified facilities	Subject to phasing out under international agreements; must be recorded in IHM
Hydrocarbons	Fuel tanks, bilge water, lubricants	Fire hazard; environmental pollution	Recycling or disposal through certified waste management companies	Controlled under MARPOL Annex I; needs careful handling and disposal

Choosing the right ship recycling facility is crucial for compliance with the Hong Kong Convention. This table lists certified ship recycling facilities across major recycling countries, providing details on their certification status, capacity, and services offered, enabling ship owners to make informed decisions about where to recycle their vessels.

Facility Name	Location	Certification Status	Capacity (DWT)	Key Services Offered
Leela Ship Recycling	Alang, India	Certified under Hong Kong Convention	1,000,000 DWT	Complete recycling, hazardous material management
Gadani Shipbreaking Yard	Gadani, Pakistan	Not Certified	500,000 DWT	Scrapping, basic waste management
Smedegaarden	Esbjerg, Denmark	Certified under EU Ship Recycling Regulation	200,000 DWT	Decommissioning, green recycling, hazardous waste handling
Aliaga Ship Recycling	Aliaga, Turkey	Certified under Hong Kong Convention	800,000 DWT	Comprehensive recycling, environmental management
China National Ship Recycling Co.	Shanghai, China	Certified under Hong Kong Convention	2,000,000 DWT	Complete recycling, hazardous material management

Investing in compliance with the Hong Kong Convention can have significant long-term benefits for ship owners. This table provides a cost-benefit analysis of the key factors involved in compliance, illustrating how initial costs can lead to savings and advantages over time, both financially and environmentally.

Cost Factor	Estimated Cost Range (USD)	Benefit	Long-Term Savings
Inventory of Hazardous Materials (IHM)	$10,000 - $30,000	Ensures compliance, reduces environmental and health risks	Avoids fines, reduces potential liability costs
Using Certified Recycling Facilities	$300 - $500 per ton	Complies with international standards, supports worker safety	Potentially higher scrap value, lower insurance premiums
Ship Recycling Plan (SRP)	$5,000 - $15,000	Structured and compliant recycling process	Minimizes risks of non-compliance, avoids delays in decommissioning
Training and Safety Protocols	$5,000 - $20,000	Improves worker safety, reduces accident risks	Lowers long-term insurance and liability costs
Environmental Management Systems	$15,000 - $50,000	Reduces environmental impact, enhances corporate reputation	Potentially lowers environmental taxes and improves brand value

Navigating the green ship recycling process requires careful planning and execution. This table offers a step-by-step guide to recycling a ship in accordance with the Hong Kong Convention, detailing the key actions, timelines, and resources needed at each stage, ensuring a smooth and compliant recycling process.

Step	Description	Key Actions	Timeframe	Resources Needed
1. Inventory of Hazardous Materials (IHM)	Document and assess hazardous materials on board	Conduct a survey, prepare IHM documentation	1-2 months	Certified hazardous material surveyor, documentation tools
2. Selection of Recycling Facility	Choose a certified yard that complies with the Hong Kong Convention	Evaluate facilities, verify certification, negotiate contracts	1-2 months	Facility certifications, legal and negotiation team
3. Develop Ship Recycling Plan (SRP)	Create a detailed plan for safe and compliant recycling	Collaborate with recycling yard, draft SRP	2-4 weeks	Environmental consultant, legal team
4. Decontamination and Preparation	Remove hazardous materials and prepare ship for recycling	Decontaminate, remove oils, prepare structure	2-3 months	Specialized cleaning teams, decontamination equipment
5. Recycling and Dismantling	Execute the recycling process according to the SRP	Monitor operations, ensure compliance with SRP	3-6 months	On-site supervisors, compliance auditors

 

[Saif]

Stuck in red, shipbreaking slow to turn green

Transitioning from dangerous and polluting shipbreaking yards to green ship recycling facilities remains a priority, particularly as key deadlines loom, but the sluggish pace of progress continues to delay the shift in Bangladesh.

www.thedailystar.net

Stuck in red, shipbreaking slow to turn green

Photos: Rajib Raihan

Transitioning from dangerous and polluting shipbreaking yards to green ship recycling facilities remains a priority, particularly as key deadlines loom, but the sluggish pace of progress continues to delay the shift in Bangladesh.

This lack of impetus is not only causing environmental harm but also creating serious business challenges, especially as Bangladesh must shift to green ship recycling by June 2025 in accordance with the Hong Kong Convention or run the risk of others refusing to send vessels to the country.

Bangladesh began the green transition in 2017, when PHP Ship Recycling Yard became the first entity in the country to receive international green certification.

Yet, only seven shipbreaking yards in the country have received similar certification as of March this year, according to the Bangladesh Ship Breakers and Recyclers Association (BSBRA).

To put things in perspective, the country has 248 shipbreaking yards, as per data from the Department of Inspection for Factories and Establishments. However, only 30 to 35 of these shipbreaking yards are operational due to various reasons, according to the BSBRA.

Taslim Uddin, owner of KR Ship Recycling, a green yard, told The Daily Star that the slow transition is due mainly to a lack of financial incentives.

For example, he mentioned that converting a small yard into a green shipyard currently requires an investment of Tk 30 to Tk 40 crore.

"In return, it may take at least 10 to 12 years or more to recover this amount through profits, which reflects the slow return and uncertainty on investment in this sector," he said.

Moreover, he added, due to the long time needed to break even and low profitability thereafter, financial institutions are often reluctant to provide loans to businesses in the shipbreaking industry.

Besides, uncertainty over the business continuity due to sudden government actions is another major factor hindering progress, he said.

After the deadline in June this year, recycling facilities located in countries that do not adhere to the HKC will be unable to receive ships for recycling.

This would jeopardise the people that are employed in the sector, totalling around 8,000 to 9,000 direct employees, according to the BSBRA and those indirectly dependent on it.

Labour rights activists say that yard owners have little incentive to convert their facilities into green shipyards as traditional methods are faster, cheaper, and require significantly less investment.

Fazlul Kabir Mintu, a long-time labour rights activist working in the shipbreaking sector, told The Daily Star, "The cost of dismantling ships in green yards is significantly higher than in traditional ones."

Since profit margins would shrink as a result, many yard owners are hesitant about the transition, he added.

Mohammed Zahirul Islam, president of the BSBRA, told The Daily Star, "The Ministry of Environment has listed our sector as high-risk, placing it on the red list. As a result, we are not eligible for green financing facilities from the Bangladesh Bank.

"Banks only provide short-term loans for purchasing ships, but they are not willing to finance the development of shipbreaking yards. This lack of financial support makes it difficult for shipbreakers to invest in green infrastructure," he added.

Bangladesh urgently needs to transition to green shipbreaking to address the serious environmental and economic challenges caused by traditional methods, which involve beaching large ships and manually breaking them apart without proper safety or environmental controls.

As a result, the surrounding environment -- land, air, and sea -- is subjected to intense pollution.

A 2010 World Bank study identified the presence of hazardous materials such as lead, chromium, cadmium, mercury, asbestos, and heavy metals in the soil of the Sitakunda coastal belt, an area known for shipbreaking.

The study estimated that from 2010 to 2030, a total of 79,000 tonnes of asbestos, 240,000 tonnes of PCB, 1,978,000 tonnes of organic liquid waste, 775 tonnes of inorganic waste, and 210,000 tonnes of ozone-depleting substances would be deposited into the soil and water of the area.

Prabal Barua, a researcher who has worked on the environmental impact of shipbreaking for years, told The Daily Star, "Waste from shipbreaking yards often seeps into the Bay of Bengal, contaminating marine ecosystems and affecting biodiversity."

Soil and groundwater contamination are particularly alarming, he added. Moreover, the air quality in surrounding regions is deteriorating due to the burning of cables, oil residues, and insulation materials, releasing carcinogenic substances.

Barua added, "Marine life is under threat as oil spills and paint residues disrupt breeding cycles in the Bay of Bengal, affecting fishing communities by reducing production."

Another major concern is that workers in traditional shipbreaking yards face some of the most dangerous working conditions in the world. Most of these labourers -- often poor and unskilled -- work without basic protective equipment such as helmets, gloves, or boots.

The dismantling process, which involves cutting through thick steel with gas torches, often occurs on unstable, oily surfaces, exposing workers to explosions. Falls from great heights and the inhalation of toxic fumes are other daily hazards.

According to the NGO Shipbreaking Platform, at least 231 workers died and over 300 were seriously injured at shipbreaking yards between 2009 and 2023.

In addition to fatal accidents, workers are regularly exposed to asbestos, lead, and toxic fumes, leading to chronic illnesses such as respiratory diseases, skin conditions, and cancer.

This stands in stark contrast with green shipbreaking facilities, which emphasise worker safety by promoting proper equipment and regulated work environments, drastically reducing accidents and long-term health risks.

"In green yards, wearing safety gear while working is mandatory, ensuring better protection for the workers," Mohammed Ali, who has been working at a green yard for nine months, told The Daily Star.

Abul Kalam, another employee of a green yard, said, "Compared to traditional yards, wages in green shipbreaking facilities are not only higher but are also paid on a regular basis, providing financial stability.

Chan Meah, another worker at a green yard, told this newspaper, "We receive annual festival bonuses, a benefit often absent at traditional yards. These improvements make green yards a safer and more rewarding place to work."

When asked what action would be taken if foreign companies stop supplying ships to traditional Bangladeshi yards after June 2025 under the Hong Kong Convention, BSBRA President Zahirul Islam said, "Some yards are in the process of transitioning to green practices. We have requested the Ministry of Industry to take measures to allow foreign companies to supply ships to both green yards and those in the process of implementing green practices.

"Otherwise, this industry will face significant challenges and may come to a standstill."

Bangladesh remained the global shipping industry's first choice for scrapping vessels in 2024, with NGO Shipbreaking Platform stating that of the 409 ships dismantled globally in 2024, 130 were taken apart in Bangladesh.​