Bangladesh’s Ship-Breaking Industry Faces Challenges Amid Push for Green Standards
For the past nine years, Bangladesh has led the global ship-breaking industry, a key player in the recycling of decommissioned ships. However, the industry now faces significant challenges as it struggles to meet new international environmental and safety standards, following the country’s ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in 2023. The industry must comply with these standards by June 2025—a task that is proving to be both difficult and costly.
The ship-breaking yards, primarily located in Chattogram, have long been an economic lifeline for Bangladesh. By dismantling aging ships, these yards supply the nation with large amounts of scrap metal, which is essential for the country’s steel industry. Moreover, the industry employs thousands of workers, many of whom come from rural areas. However, this success has come at a high price, with serious concerns about environmental pollution and worker safety plaguing the industry for years.
The Push for Green Certification
The ratification of the Hong Kong Convention marked a turning point for the industry. Under the convention, ship-breaking yards are required to meet stringent environmental and safety regulations. This includes the safe removal of hazardous materials, such as asbestos and heavy metals, and ensuring that workers are protected from the dangers of handling these substances.
Transforming the ship-breaking industry into a green and sustainable sector has been a monumental challenge. Despite the importance of this transformation, progress has been slow. Over the past seven years, only four ship-breaking yards in Bangladesh have received green certifications from international bodies, which signifies compliance with these rigorous standards. These certified yards are seen as the future of the industry, providing a model for how ship recycling can be done safely and sustainably.
However, even these certified yards are struggling to maintain operations in line with the Hong Kong Convention. The scarcity of skilled workers and technical experts is a major hurdle. Without professionals who are trained in the latest environmentally-friendly ship recycling methods, even certified yards are at risk of falling short of the required standards.
A Tragic Wake-Up Call
The urgency of the industry’s challenges became painfully clear after a tragic incident at SN Corporation, one of the green-certified shipyards, on September 7. A devastating explosion critically injured 12 workers, three of whom later died. Five others remain in critical condition at Dhaka Medical College’s Burn Unit.
The explosion raised alarm bells throughout the industry, as it highlighted the ongoing safety issues, even at yards that are considered to be compliant with international standards. The incident has intensified calls for better training and safety measures for workers, many of whom perform hazardous tasks with little formal training or protective equipment.
According to Dr. Shah Mohammad Helal Uddin, the additional secretary of the Ministry of Industries who is leading the investigation into the incident, there are still significant technical and managerial gaps at certified yards. “The industry must develop expertise and a skilled workforce to ensure that the yards are 100% safe for both the environment and the workers,” he stated. The tragic accident at SN Corporation underscores the fact that having green certification alone is not enough; the yards must be able to implement and sustain these high standards in practice.
Struggles in Developing Green Yards
Entrepreneurs in the ship-breaking industry have invested heavily in developing green-certified yards, but they are now grappling with financial difficulties. The costs associated with upgrading infrastructure, importing heavy machinery, and ensuring compliance with international regulations are proving to be overwhelming for many.
One such entrepreneur is Nur Uddin Rubel, the chairman of Arav Ship Recycling Industry, which has made significant strides towards meeting green certification standards. “We have made significant progress over the last two years, with nearly 80% of the required infrastructure in place to meet green certification standards,” Rubel explained. However, his company is still facing significant challenges, particularly when it comes to hiring the skilled professionals needed to manage the yard in accordance with international protocols.
Rubel noted that his company had recently imported a 200-tonne capacity crane, but they have yet to find an experienced operator capable of handling such heavy equipment. “This is not a long-term solution. We need full-time skilled professionals, but they are not available at the moment,” he lamented.
Similarly, Zahirul Islam Rinku, managing director of PHP Ship Recycling Industry and vice president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), described the challenges his company faced in converting its yard to a green-certified facility. “We developed our yard with local expertise, but converting it into a green yard was a difficult process. We sent our staff to Europe and India for training in environmentally friendly ship recycling methods,” Rinku said. Despite these efforts, the shortage of trained professionals remains a significant obstacle.
The Shortage of Skilled Workers
The shortage of skilled professionals is not limited to operators of heavy machinery. Experts trained in environmentally friendly ship recycling methods, as well as internationally certified marine engineers, are in short supply. Without these specialists, the shipyards cannot ensure full compliance with the Hong Kong Convention.
The government has taken some steps to address this issue, including the establishment of a training center for ship-breaking workers in northern Bangladesh. However, industry leaders have criticized the location of the center, noting that it is too far from the shipyards, which are concentrated in Chattogram. “It’s not practical for us to send workers to such a distant location for training. The training center should be closer to the yards,” said Rinku.
The lack of proximity is just one problem. According to Muhammad Ali Shahin, a senior official at Young Power in Social Action, a non-governmental organization that works with the ship-breaking industry on labor rights and safety, the consultants who are currently working with the shipyards are overburdened. “They can provide plans, but they cannot always be present during the implementation phase due to their workload,” he explained. Without sufficient hands-on oversight, the implementation of green standards remains inconsistent.
Shahin also emphasized the need for better safety training for workers. “There is a serious need for motivational education and safety training for workers who perform hazardous tasks in the yards,” he said. The lack of formal safety training has long been a problem in the industry, contributing to the high rate of accidents and injuries among workers.
Financial Struggles
In addition to the shortage of skilled workers, financial struggles are compounding the difficulties faced by ship-breaking yard owners. The cost of upgrading infrastructure to meet green certification standards is steep, and many yard owners are finding it difficult to secure the necessary funding. Even those who have managed to obtain financing are struggling to make ends meet.
Many yard owners have had to rely on external consultants to help guide them through the process of obtaining and maintaining green certification. However, as Rubel pointed out, this is not a sustainable solution. The industry needs full-time experts who can ensure that yards are operating in line with international standards on a day-to-day basis.
Looking Ahead: The Need for Government Support
Industry leaders are calling for more support from the government to help the ship-breaking sector meet the upcoming 2025 deadline for full compliance with the Hong Kong Convention. One suggestion has been for the government to establish a training institute for ship-breaking workers in Chattogram, where most of the yards are located. Such a facility would make it easier for workers to receive the training they need without having to travel long distances.
Dr. Helal Uddin suggested that if the BSBRA submits a formal proposal, the government could take the initiative to set up such a facility. “The industry must develop expertise and a skilled workforce to ensure that the yards are 100% safe for both the environment and the workers,” he said.
As the 2025 deadline approaches, the pressure on Bangladesh’s ship-breaking industry to transform itself into a green and sustainable sector is growing. The tragic accident at SN Corporation has served as a stark reminder that there is still much work to be done. The road ahead is fraught with challenges, but with the right support and investment, the industry has the potential to continue leading the global market while ensuring a safer and more environmentally friendly future.
