Bangladesh seeks Japanese investment to build green shipbreaking yards
Estimates suggest that a full transformation to green shipbreaking yards will require over Tk2,500 crore
Bangladesh has sought Japanese investment to transform its shipbreaking sector into a green, environmentally friendly recycling industry – addressing long-standing criticisms over labour insecurity, pollution, and informal operations.
At a seminar titled "The Ship Recycling Industry of Bangladesh in Collaboration with Japan" held today (28 July) at a city hotel, Md Obaidur Rahman, secretary of the Ministry of Industry, called on the Japan International Cooperation Agency (Jica) to support the development of green ship recycling yards.
"To convert small to large yards, an investment of Tk20 to Tk50 crore per yard will be required. Through this, we can quickly transform 50 yards into green yards," Rahman told reporters after the event organised by Jica in partnership with the Ministry of Industries.
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Estimates suggest that a full transformation to green shipbreaking yards will require over Tk2,500 crore.
"Finance is the main challenge here. We are in talks with the Bangladesh Bank and various financial institutions to arrange funding for green yard development," he added.
There are 156 registered ship recycling yards in Chattogram, but only 50 are currently active, according to the Bangladesh Ship Breakers and Recyclers Association.
Sector insiders report that 14 yards fully comply with international standards, while 20 more are undergoing upgrades.
The industry's annual turnover is estimated at around Tk12,750 crore, according to the Bangladesh Ship Recycling Board, which shared the data during the seminar.
The sector provides between 20,000 and 40,000 direct jobs and supports over 10 lakh indirect jobs.
ASM Shafiul Alam Talukder, director general of the Bangladesh Ship Recycling Board, urged the promotion of Japanese investment and collaboration on research and development for green yard technology.
He also stressed the need to digitalise ship approval, certification, and inspection processes.
A green shipyard is defined as a facility that recycles ships in line with international standards, ensuring environmental protection and worker safety.
Bangladesh's ratification of the Hong Kong Convention in 2023 has paved the way for sustainable transformation in the ship recycling sector.
Tomohide Ichiguchi, chief representative of the Jica Bangladesh Office, called on members of the Bangladesh Ship Breakers and Recyclers Association to take a more proactive role in the industry's transformation.
"We urge association members to step up, engage with regulators, attract investment, and invest in your workforce," he said at the seminar.
"This transformation will require effort, of course, but it will also open up major opportunities – including access to new financing options and enhanced global credibility," he added.
Ichiguchi reaffirmed Jica's strong commitment to supporting this transition through its commercial project framework.
