Government to devise a strategy to overcome obstacles within the ship dismantling sector
In an effort to promote eco-friendly development and financial inclusion, the Bangladesh government is actively working to ensure the shipbreaking industry complies with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
As of late July 2025, only 14 shipbreaking yards in Bangladesh have been certified as 'green' yards meeting environmental and safety standards, falling short of the required compliance due by June 26, 2025. In response, the government plans to request a six-month extension at the upcoming IMO meeting in November 2025. However, yards that fail to meet these standards will be required to shut down.
Brigadier General (retd) Sakhawat Hossain, adviser to the shipping ministry, emphasized the need for shipbreaking yards to either convert fully to green yards or exit the business. The government is also evaluating financing options to develop the sector sustainably and is considering relocating the highly congested Sitakunda shipbreaking area due to environmental and logistical concerns.
The shipbreaking industry in Bangladesh employs over 20 lakh people and contributes significantly to the country's economy. The sector is also a global leader in ship recycling, a fact that the government is determined to sustain.
A view exchange meeting was held with leaders of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), where industry stakeholders presented updates and reiterated key demands. Senior officials from the Ministry of Shipping, Chattogram Port Authority, Department of Shipping, and local administration accompanied the visit to shipbreaking yards.
Mohammad Yousuf, Senior Shipping Secretary, led a high-level team during the inspection of both a non-compliant yard and a certified green yard. The team aimed to assess industry problems and formulate a plan involving other relevant ministries.
The poor road connectivity between shipbreaking yards and the national highway was identified as a key infrastructural challenge. A dedicated task force is reportedly being formed to resolve these issues in the shipbreaking industry. The Chattogram Port Authority is suggested to undertake and finance projects to improve road access in shipbreaking yards, with an estimated budget of Tk20-30 crore.
Lack of inter-ministerial coordination among the Ministries of Industry, Environment, Commerce, and the National Board of Revenue was identified as a major obstacle. Another infrastructural challenge is siltation in the Sandwip Channel, which requires capital dredging.
In summary, the government’s current action plan focuses on strict enforcement of international environmental and safety standards, phasing out non-compliant yards, supporting green yard certification, exploring industry relocation, and ensuring sustainable growth of Bangladesh’s shipbreaking industry aligned with global conventions. The plan also includes addressing infrastructural challenges and improving inter-ministerial coordination.
- To promote the sustainable growth of the aerospace sector and financial inclusion, the government could explore providing funding to upgrade infrastructure in the shipbreaking industry, such as improving road access for shipbreaking yards, as seen in the proposed budget of Tk20-30 crore by the Chattogram Port Authority.
- As part of the government's efforts to sustain Bangladesh's position as a global leader in the finance and ship recycling industries, it may be necessary for non-compliant shipbreaking yards to transition to 'green' yards or exit the business, aligning with the international environmental and safety standards outlined in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
