Roundtable discussion held on ‘Challenges and Prospects of Ship Recycling Industry in Bangladesh’
“Bangladesh has been leading the global ship recycling sector for nine consecutive years. The industry, which is based on a 20-kilometer stretch of Sitakunda coast in Chittagong district, has attracted investments of over Tk 10,000 crore and an annual turnover of around $2.46 billion (around Tk 30,000 crore). The sector, a mainstay of Bangladesh’s economy, generates revenue of Tk 1,200 to 1,400 crore. While the industry has made significant progress in complying with national and international legal standards, it is currently facing the lowest level of scrap ship imports in a decade. In this context, immediate government support and policy support are crucial to prevent the sector from collapsing.”
These concerns were discussed at a roundtable meeting held on Wednesday, March 4, 2025. The Bangladesh Ship Breakers and Recyclers Association (BSBRA) organized the event titled ‘Challenges and Prospects of the Ship Recycling Industry in Bangladesh’ at the Conference Hall of Hotel Sheraton.
Former Commerce Minister Amir Khosru Mahmud Chowdhury was present as the chief guest at the event. Special speakers included AB Party General Secretary Mr. Asaduzzaman Fuad and Norwegian Ambassador to Bangladesh Håkon Arald Gulbrandsen. Other prominent participants included Deputy Ambassador of the Netherlands Mr. Thijs Oodstra; EU Delegation Program Manager Mr. Hubert Blom; JAICA Ship Recycling Advisor Mr. Okamoto Akira. The meeting was attended by high-ranking officials of the Ministry of Industries, BSBRA EC members, media representatives and esteemed representatives of other relevant government and non-government organizations.
Acting President of BSBRA Mohammad Zahirul Islam delivered the keynote presentation highlighting the challenges of green ship yards and the industry. He also made recommendations to address these issues. The meeting concluded with the closing remarks of Mr. Shawkat Ali Chowdhury, Advisor to the Advisory Council of BSBRA.
Mr. Amir Khosru Mahmud Chowdhury, Former Minister of Commerce said, “The ship recycling industry is a classic example of circular economy. It plays a vital role in economic growth, industrial development and employment generation in Bangladesh. Despite the progress made towards operating a safe and environmentally green ship recycling industry in compliance with national and international regulations, policy support and global cooperation are needed to maintain the leadership of this industry and generate maximum revenue.
Mr. Asaduzzaman Fuad, General Secretary, AB Party said, “This sector has made significant progress, yet these developments remain largely unknown globally. Misinformation and negative reporting can damage the prospects of any industry. Ensuring fact-based reporting and constructive dialogue with stakeholders is essential. The government must engage with a positive mindset to allay concerns and strengthen the competitiveness of this sector with neighboring countries. Norwegian Ambassador to Bangladesh Håkan Arald Gulbrandsen said, “Norway supports Bangladesh’s ship recycling industry and its transition to international standards. Since 2015, the Norwegian government has funded the SENSREC project in collaboration with the International Maritime Organization (IMO) to assist Bangladesh in implementing the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. The commitment of the relevant authorities to enhance safety and maintain environmental standards in this industry is encouraging.”
“The industry once had about 160 shipbreaking yards, but over 120 have closed in the last five years, leaving only 20-25 operational. Despite the adversities, the sector remains a major supplier of raw materials for Bangladesh’s steel industry, accounting for 50-60% of the steel used in construction and infrastructure projects. Recycled materials from these old ships also contribute significantly to the local industry. Seven ship recycling yards have now been certified as green yards, with ten more in the process of obtaining certification,” said BSBRA Acting President Mohammad Zahirul Islam Rinku. Green Shipyards are those yards that have achieved international certification for operating ship recycling operations in compliance with the Hong Kong Convention on Ship Recycling, an international law. “Mr. Shawkat Ali Chowdhury, Advisor, BSBRA, said, “The industry is taking proactive steps towards zero accidents by modernizing its infrastructure, implementing improved safety training and adhering to global best practices. The industry is making significant improvements in safety protocols, hazardous waste management and emergency response systems that comply with the Hong Kong Convention.”
AM Nazim Uddin, President of Bangladesh Sramik Dal, Chittagong:
“The closure of ship recycling yards is causing hardship to the workers in the industry. Many workers have lost their jobs and are facing financial hardship due to fewer ships in the yards.” Liaquat Ali Chowdhury, Senior Vice President, BSBRA said, “The decline in ship imports and regulatory complexities in the last 18 months have significantly affected the industry. Urgent government intervention is needed to address these issues and ensure the sustainability of this important sector.”
The speakers also said that the ship recycling industry in Bangladesh is facing serious challenges due to global economic factors including the dollar crisis, which has sharply reduced the import of ships. In addition, long delays in obtaining shipbreaking permits have forced the closure of many yards (ship recycling factories), leaving thousands of skilled workers unemployed. Thousands of businessmen involved in the industry are also facing hardship. With timely policy support and collaborative efforts from national and international partners, the ship recycling industry in Bangladesh can overcome the current challenges and achieve global leadership in sustainable ship recycling.
The meeting was also attended by Kamal Uddin Ahmed, Liaquat Ali Chowdhury, Md. Lokman, Naeem Sha Imran, Hossainul Arefin, Mr. Khondaker Md. Ikhtiar Uddin.
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