Shipbreaking Goes Green: A Transformation in Bangladesh’s Industry
Bangladesh’s shipbreaking industry, long criticized for its dangerous and environmentally damaging practices, is undergoing a significant shift toward “green” operations. Driven by the country’s ratification of the Hong Kong International Convention (HKC), yards are adopting safer and cleaner standards, with 14 out of 153 registered facilities already securing green certifications.
What is Green Certification?
Green certification is a formal recognition that a shipbreaking yard dismantles ships in a way that minimizes harm to both workers and the environment. This includes:
- Safe waste management: Proper handling of hazardous materials like asbestos and oil sludge.
- Environmental protection: Impermeable flooring to prevent soil contamination and oil-water separators to treat runoff.
- Worker safety: Provision of personal protective equipment, safety training, on-site medical care, and continuous monitoring.
- Infrastructure: Vessels are dismantled in controlled, land-based zones rather than on beaches.
The HKC, adopted by the International Maritime Organization (IMO), is the most prominent international standard. Additionally, certifications like ISO 30000 and compliance with EU Ship Recycling Regulations also validate a yard’s green status.
A visual of a shipbreaking yard in CTG adopted from Business Standard
Evolution of the Industry
For decades, the industry, centered in Sitakunda, Chattogram, was known for its hazardous conditions. While it supplied over 60% of the country’s steel and employed tens of thousands, it was highly damaging to the environment. Reforms gained momentum in 2018 with the Bangladesh Ship Recycling Act, which aimed to align the industry with the HKC. Since then, 14 yards have achieved certification, and another 20 are in the process of being upgraded.
The Bangladesh Ship Recycling Board (BSRB) now oversees the industry, monitoring performance and enforcing regulations. Notable examples of green-certified yards include PHP Ship Breaking and Recycling Industries, Kabir Ship Recycling Facilities, and KR Ship Recycling Limited.
Challenges and Future Outlook
While certified yards have largely maintained excellent safety and environmental records, the transition is costly, with upgrades potentially exceeding Tk30 to Tk40 crore per yard. Despite this, the investment has a substantial payoff. Certified yards can command higher prices for vessels, attract international clients, and contribute to the protection of coastal ecosystems.
Globally, Bangladesh is still catching up to countries like Turkey, which meets both HKC and EU standards, and India, which has over 100 certified yards. However, with continued investment, policy support, and commitment from the industry, Bangladesh’s momentum is clear. Green certification, once a financial burden, is now a mark of sustainability and a gateway to global business.
