Ship breaking industry continues to grapple with headwinds

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Special Correspondent :

The ship breaking industry in Bangladesh continues to grapple with numerous challenges, as the country is yet to fully meet the requirements set by the International Maritime Organisation (IMO). Despite the IMO’s approval of the Safe and Environmentally Sound Ship Recycling (SENSREC) project in Bangladesh, significant gaps remain.

Under SENSREC Phase-3, technical assistance aims to enhance the capacity of government organizations, enact legislation for implementing the Hong Kong Convention, and establish a Treatment, Storage, and Disposal Facility for managing hazardous waste generated by the ship recycling industry.

Norway’s commitment of approximately US$1.5 million (14 million Norwegian Kroner) towards improved ship recycling in Bangladesh marks a significant step forward. However, challenges persist as the industry struggles to adhere to international standards.

The ship breaking industry is a significant employer in Bangladesh, directly engaging around 50,000 people and indirectly involving another 100,000 individuals. Despite its economic importance, workers in ship breaking yards often operate without adequate safety measures, leading to frequent accidents and fatalities.

Since 2009, there have been 447 reported worker deaths in ship-breaking yards, with many others suffering from chronic health conditions such as asbestosis. This alarming trend underscores the urgent need for improved safety regulations and enforcement within the industry.

Bangladesh has become a major destination for end-of-life vessels, with 170 out of 446 ships scrapped worldwide ending up on Chattogram beaches last year alone. Chinese, Thai, and Hong Kong-based shipping companies are among the primary contributors to this trend, highlighting the global nature of the issue.

A two-day workshop on ‘SENSREC Phase III’ was inaugurated in the city, jointly organized by the Ministry of Industry and the International Maritime Organisation (IMO), aiming to raise awareness about sustainable ship recycling practices in Bangladesh.

Zakia Sultana, Senior Secretary of the Ministry of Industry, said, “The crucial role of the ‘SENSREC Phase III’ project in promoting sustainability within the ship recycling sector is vital”. She highlighted the project’s efforts to enhance Bangladesh’s implementation and compliance with the Hong Kong Convention through capacity building and stakeholder engagement.

Sultana emphasized the collaboration between the Ministry of Industry and the Bangladesh Shipbreakers and Recyclers Association in mobilizing stakeholders to ensure the sustainability of the ship recycling industry. She underscored the importance of establishing a Treatment Storage and Disposal Facility (TSDF) at Sitakunda Yards in Chittagong and sought technical cooperation and legal capacity building support from SENSREC Phase III for its establishment.

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Furthermore, she stressed the paramount importance of ensuring the safety of human life and the environment during the implementation of the Hong Kong Convention in ship breaking activities.

Abdus Sobhan, President of Poribesh o Jalbaiu Paribartan Andolan (PORIJA), said, “The significance of the ship breaking industry for Bangladesh’s steel sector is vital.” While acknowledging its role in providing raw materials, Sobhan urged importers to refrain from bringing chemical-carrying ships into the country.

Sobhan also highlighted existing loopholes in safety measures within the ship breaking industry and said, “There is reluctance among authorities to monitor the sector adequately and there is a need for strict adherence to safety protocols by both owners and workers in ship breaking yards to prevent accidents and ensure the well-being of workers and environmental sustainability.”

According to multiple reports, the ship breaking industry in Bangladesh is estimated worth an annual turnover of around 1.5 billion dollars in an average in 2019.

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%.

Bangladesh has become a party to the The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the Hong Kong Convention) Bangladesh is one of the world’s largest ship recycling countries by capacity.
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 27 September last year.
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.
According to the United Nations Conference on Trade and Development (UNCTAD), Bangladesh maintains the position as the top ship recycling nation despite a 65% decrease in its shipbreaking activities.

Accounting for over one-third of global ship recycling, the country saw a reduction from 8.02 million tonnes in 2022, while 2.8 million tonnes in the 12 months leading up to January 2023.

However, IMO’s SENSREC Project has been enhancing safe and environmentally sound ship recycling in Bangladesh with specific legal-policy support. Its targeted capacity building and involvement of key stakeholders has been instrumental in catalyzing the accession process by Bangladesh. The Project has been funded by Norway in three phases, to the tune of approximately US$4 million since 2015.

The SENSREC project has worked with key implementing partners, the Ministry of Industries, and the Bangladesh Ship Breakers and Recyclers Association (BSBRA), to cultivate a strong sense of ownership in greening ship recycling in Bangladesh. Through close collaboration on project activities, the project has also engaged on the ground in Bangladesh with workers, yard owners, and stakeholders, to develop a comprehensive understanding of the challenges and opportunities within the industry.

During phase II of SENSREC, an institutional and legal roadmap towards ratification was established, and 900 shipyard workers, skilled professionals and other key stakeholders were trained. The remaining activities under Phase II focus on gender awareness in the ship recycling industry, including the holding of a workshop in June 2023 in Chittagong to discuss recommended actions on the economic participation of women in the ship recycling industry.