Govt to develop action plan to tackle shipbreaking industry challenges

The government will develop a coordinated action plan to address longstanding challenges in Bangladesh's shipbreaking industry, Senior Shipping Secretary Mohammad Yousuf said during a field visit to shipbreaking yards in Chattogram today (2 August).

The secretary led a high-level team that inspected both a non-compliant yard and a certified green yard to assess industry problems and formulate a plan involving other relevant ministries.

He cited the lack of inter-ministerial coordination among the Ministries of Industry, Environment, Commerce, and the National Board of Revenue as a major obstacle. The formation of a dedicated task force to resolve these issues is reportedly underway.

Poor road connectivity between shipbreaking yards and the national highway was identified as a key infrastructural challenge, along with siltation in the Sandwip Channel, which requires capital dredging.

Addressing the sector's contribution to port revenues, the secretary suggested that the Chattogram Port Authority should undertake and finance both projects, estimating a Tk20-30 crore budget to improve road access.

As the shipbreaking industry's current "Red" classification under the Environmental Rules-2023 continues to hinder access to green financing, the government is considering reclassifying it to "Orange-B" to promote eco-friendly development and financial inclusion.

Yousuf underscored the economic significance of the sector, which employs over 20 lakh people and makes Bangladesh a global leader in ship recycling. He reaffirmed the government's commitment to sustaining this position.

The team also held a view exchange meeting 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.