Bangladesh Becomes World’s No.2 Green Ship Recycling Hub
Bangladesh has emerged as the world’s second-largest hub for environmentally compliant ship recycling after 17 ship recycling yards received official authorization under the International Maritime Organization’s Hong Kong Convention framework, marking a significant transformation for the country’s maritime industry.
The recognition places Bangladesh just behind Turkey, which currently has 18 approved facilities, while countries such as Japan and Norway follow with seven compliant yards each. Notably, regional competitors India and Pakistan were absent from the latest IMO-approved list.
All 17 approved recycling facilities are located in Sitakunda, Chattogram, the country’s main shipbreaking cluster. The yards were certified after complying with stringent environmental and worker safety requirements introduced under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which officially came into force in June 2025.
The development marks a dramatic shift for Bangladesh, whose shipbreaking sector had long faced criticism from international environmental groups over pollution, hazardous waste handling and unsafe labor practices. Over the past few years, however, recycling yard owners have invested heavily in upgrading infrastructure, including impermeable flooring systems, hazardous waste treatment plants and modern worker safety mechanisms.
According to industry estimates, local operators have invested more than Tk2,000 crore in green modernization efforts over the last two years. The industry now claims to operate some of the most advanced environmentally compliant recycling facilities in South Asia.
Bangladesh remains one of the world’s largest destinations for end-of-life ships, dismantling between 150 and 200 vessels annually in normal market conditions. The sector supplies a major portion of raw material to the country’s steel industry and supports thousands of jobs directly and indirectly.
Despite the environmental progress, the industry has recently experienced a slowdown in vessel arrivals due to weaker global freight conditions, higher compliance costs and economic uncertainty. Industry data shows that ship imports for recycling fell sharply in 2025 compared to previous peak years.
Still, maritime analysts believe the IMO recognition could help Bangladesh attract more high-value vessels from international shipowners seeking compliant recycling destinations. Industry officials are optimistic that additional yards may soon gain certification, potentially allowing Bangladesh to claim the top global position in green ship recycling in the coming years.
Author: shipping inbox
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