International shipbreaking conference concludes with call for development finance

The two-day international conference on the shipbreaking industry concluded in the port city on Thursday afternoon with an urgent call for long-term loans with low interest rates to transform non-compliant yards into green yards.

On the second day of the conference, the international delegation led by Espen Rikter-Svendsen, Ambassador of Norway, included Gwyn Lewis, UN Resident Coordinator, John Alonso, Technical Cooperation and Implementation Division, International Maritime Organization (IMO), Maiki Ueda, Country Officer, South Asia Department, Japan International Cooperation Agency (JICA), Aron Sørensen, Head of Marine Environment, BIMCO, Kerry Breen, Senior Director, Brummer & Partners, and representatives from green certification authority ClassNK. They visited two green yards, two yards awaiting green certification, and a hospital run by shipbreakers in Sitakunda Upazila of Chattogram.

The day's programme began with a visit to PHP Ship Breaking and Recycling Industry, the first green yard in the industry. 

Later, the delegation visited the healthcare facility run by the Bangladesh Shipbreakers and Recyclers Association at Bhatiary, two under-construction green yards named Ferdous Steel and Arav Shipbreaking and Recycling Limited, and Kabir Ship Recycling Facilities, the second yard to receive green certification.

After visiting the yards, the delegation members expressed their satisfaction with the industry's development over the last five years. They hoped that the industry would be able to maintain its leading global position if it continued to improve working conditions and environmental compliance according to the Hong Kong Convention.

Speaking to The Business Standard during the visit, Aron Frank Sorensen, Head of Marine Environment of BIMCO, said, "We are here to explore the condition of ship recycling facilities in Bangladesh. It has been great to see the development that the industry has made in the last 7-8 years. The yards here have adopted modern technologies and improved health, safety, and environmental compliance."

He hoped that shipowners from around the globe would likely prefer Bangladesh for safe recycling.

Kerry Breen, Senior Director of Brummer & Partners, a Swiss finance company, said that the industry has huge potential. 

"We are here to explore investment opportunities in this industry. Going back home, I will report the opportunities offered by the industry to our investors."

Protap Chandra Biswas, Joint Secretary of the Ministry of Industries, who accompanied the delegation, told The Business Standard, "We organised the conference to showcase the industry's development to the world. We are doing our best to help industry owners develop their facilities to international standards."

Zahirul Islam, Vice-President of BSBRA and Managing Director of PHP Ship Breaking and Recycling Industry, said that the industry currently has four green yards. Ten to twelve more yards are undergoing green transformation and are expected to receive certification before June 2025.

"With these 15-16 green yards, we will not be able to hold the leading position in the global industry. We must upgrade the rest of the yards to utilise our potential. However, most entrepreneurs do not have sufficient funds to transform their yards into green yards. For this, they need long-term loans with low interest rates to develop their yards," he added.
"We have urged the central bank, commercial banks, and foreign financial institutions to provide us with soft loans so the industry can grow further and contribute to the country's economy," Zahirul said.

Earlier on Wednesday morning, the conference kicked off at the Mohana Ballroom of the Radisson BLU Bay View. The conference, titled "International Conference on Business and Investment Opportunity for Ship Recycling Industry in Bangladesh," featured five different roundtable sessions on five topics on its first day.

The Ministry of Industries, International Maritime Organization (IMO), Norwegian Embassy, and Bangladesh Ship Breakers and Recyclers Association (BSBRA) jointly organised the programme.