The Ministry of Industries Fines SN Corporation Shipbreaking Yard Tk26 Lakh Following Fatal Explosion
In a tragic incident that shook the shipbreaking industry, the Ministry of Industries (MoI) has imposed a substantial fine of Tk26 lakh on SN Corporation Shipbreaking Yard following a devastating explosion that occurred on 7 September 2024. The explosion claimed the lives of six workers and left six others critically injured, highlighting once again the hazardous conditions often present in the industry. As a punitive measure, the ministry has also ordered the closure of the shipbreaking yard for three months.
Investigation and Penalties
The sanctions against SN Corporation come in response to an investigation conducted by a probe committee formed specifically to scrutinize the events leading to the explosion. Following an exhaustive review of the investigation report, Sanjoy Kumar Ghose, Deputy Secretary of the Ministry of Industries, issued an official letter on 18 September 2024 detailing the penalties and corrective actions. The ministry acted swiftly, holding SN Corporation accountable for multiple safety violations that contributed to the fatal accident.
In addition to the Tk26 lakh fine, the ministry has mandated that the families of the six deceased workers receive compensation totalling Tk7 lakh per family. This sum includes Tk5 lakh, as per Section 45.3 of the Ship Breaking and Recycling Rules, 2011, and an additional Tk2 lakh provided under the Labour Law provisions. Furthermore, the ministry has ordered that the six injured workers receive 12 months’ salary as compensation, with all their medical expenses related to the incident to be fully borne by SN Corporation.
The total fine imposed on SN Corporation breaks down as follows: Tk10 lakh was levied under Section 45.3 of the Ship Breaking and Recycling Rules for serious safety violations, Tk1 lakh under Section 46.3 for the yard’s failure to ensure safe working conditions, and another Tk10 lakh under Section 46.9 for operational misconduct. Additionally, the ministry imposed a Tk5 lakh fine under Section 46.11, which also included the order for a three-month suspension of all operations at the yard.
Safety Violations and the Tragic Incident
SN Corporation, owned by Shawkat Ali Chowdhury, who is also the chairman of the board of directors of Eastern Bank Ltd and Chairman of Finlay Properties Limited, is no stranger to the business world. However, this incident at the company’s shipbreaking yard has drawn significant attention to the ongoing safety concerns in the industry.
The explosion that occurred in early September is suspected to have been caused by unsafe working practices involving the handling of hazardous materials. Shipbreaking is known for being a dangerous sector, especially in Bangladesh, where thousands of workers are involved in dismantling old ships, often under perilous conditions. The ministry’s investigation found that key safety protocols were neglected at SN Corporation, leading to the explosion. The combination of hot work—such as cutting metal—and the presence of flammable substances in enclosed spaces is believed to have sparked the deadly blast.
The ministry’s report pointed out glaring lapses in safety practices, including the failure to ensure proper ventilation when working in confined areas like tanks, engine rooms, and pump rooms. Another serious concern was the absence of adequate measures to clear gases before issuing Hot Work permits, a critical procedure that could have averted the tragedy.
Corrective Measures and Recommendations
To prevent future accidents, the Ministry of Industries has outlined a set of 20 safety recommendations directed not only at SN Corporation but also aimed at strengthening safety protocols across the entire shipbreaking industry. Among the most significant recommendations is the strict prohibition of simultaneous hot and cold work in the same area, a key factor in preventing the type of explosion seen in this case.
The ministry also highlighted the need for shipyards to ensure proper ventilation before commencing work in high-risk areas, such as enclosed spaces where flammable gases may accumulate. One of the key failings in the SN Corporation incident was the lack of gas evacuation prior to cutting operations, which played a pivotal role in causing the explosion.
Further, the ministry urged all shipbreaking yards to follow the Ship Cutting Plan meticulously, a document that outlines the safest sequence for dismantling a ship. It also stressed the importance of recruiting trained and experienced workers who are capable of handling hazardous tasks, as well as providing proper firefighting and rescue equipment. The ministry underscored the need for adequate Personal Protective Equipment (PPE) for all workers, emphasizing that these basic safety measures are non-negotiable in such a high-risk industry.
Compensation for the Families of the Victims
As part of the punitive measures, SN Corporation has been ordered to provide financial compensation to the families of the deceased workers. Each family will receive Tk7 lakh, consisting of Tk5 lakh as compensation mandated by the Ship Breaking and Recycling Rules, 2011, and an additional Tk2 lakh under the Labour Law. For the six workers who were injured but survived, the company is required to pay 12 months’ salary and cover all their medical expenses, a decision aimed at helping the affected workers and their families rebuild their lives after this tragedy.
A Wake-Up Call for the Shipbreaking Industry
The explosion at SN Corporation is a stark reminder of the urgent need for improved safety measures in the shipbreaking industry, a sector that has been plagued by numerous accidents over the years. Despite repeated calls for reforms, many shipbreaking yards continue to operate with inadequate safety protocols, often putting profit above worker welfare.
The Ministry of Industries’ decisive actions against SN Corporation demonstrates the government’s commitment to addressing these systemic issues and ensuring accountability within the industry. By imposing steep fines, enforcing compensation for the victims, and mandating operational shutdowns, the ministry has sent a clear message that safety cannot be compromised.
In addition to holding SN Corporation accountable, the ministry has also urged other players in the shipbreaking industry to adhere strictly to the Ship Breaking and Recycling Rules of 2011 and to implement the 20-point safety recommendations aimed at preventing future tragedies.
The hope is that this unfortunate incident will lead to real change in an industry where human lives are too often treated as expendable. The Ministry of Industries has made it clear that it will not hesitate to take action against those who violate safety standards, and workers’ lives must not be put at risk in the pursuit of profit.
