Ship Recycling Board finally operational after 7 years, promises faster services for industry

After lying dormant for seven years, the Ship Recycling Board has finally begun limited operations, raising hopes for faster and more efficient services in the country's shipbreaking industry in the coming days.

Established under the Ship Recycling Act 2018, the board was tasked with regulating, developing, and overseeing the sector. However, bureaucratic delays kept it inactive for years.

Shipyard owners often faced wait times exceeding two months for a cutting permit, incurring additional bank interest of up to Tk2-3 crore per vessel, according to industry sources.

Once fully operational, the board will offer a one-stop service for nearly 29 permits and licences, including import clearances and cutting permissions, all managed from Chattogram. 

This centralisation is expected to eliminate the need for yard owners to shuttle between Dhaka and Chattogram for approvals, cutting both time and costs.

"We hope the board will be fully functional within two months," said its Director General ASM Shafiul Alam Talukder, who was appointed on 24 March. 

"Only three of the 11 staff positions have been filled so far," he told The Business Standard. "Recruitment is underway, and we're currently operating from Dhaka while looking for an office in Chattogram." 

In a bid to revitalise the board, the government appointed Talukder as Director General alongside a director and a deputy director on 24 March. 

Later, on 10 April, the industries ministry directed shipyard owners to route all matters related to NOCs, inspections, beaching, and cutting permissions through the board.

Board visits recycling yards

To kick off its activities, board officials today visited Chattogram, inspected seven ship recycling yards, and held meetings with representatives from various government organisations linked to the sector.

In terms of regulatory compliance, Talukder noted that seven ship recycling yards currently hold "green certification", while another 15 are in the process of obtaining it. 

"We've issued guidelines to ensure compliance with the Hong Kong Convention," he said, adding that ship import applications would remain suspended for two months while the board organises its operations.

Meanwhile, the ministry has also halted issuing ship import clearances, transferring that authority solely to the newly-activated board.

A shipyard owner, speaking on condition of anonymity, expressed concern over the sudden halt. "We've been preparing our yards for green certification, but now we can't import ships and it's causing losses."

Shipbreakers welcome move

The Bangladesh Ship Breakers and Recyclers Association (BSBRA) has welcomed the board's activation. 

"We've long demanded that the board become active to make doing business easier," said BSBRA Acting President Zahirul Islam Rinku. 

"With the launch of a one-stop service, we expect significant cost reductions and time savings," he told TBS.

He noted that from 26 June onwards, non-compliant yards without green certification would no longer be allowed to operate – a move likely to reduce the number of active yards but also present new challenges for the industry.

Commercial shipbreaking began in Bangladesh in the 1980s. In 2011, the government formally recognized the sector as an industry and introduced regulatory guidelines. 

The Ship Recycling Act was enacted in 2018, and in 2023, Bangladesh signed the Hong Kong International Convention, committing to phase out non-green yard operations by 25 June 2025. PHP Ship Breaking and Recycling Industry was the first to obtain international green certification.

Currently, around 30 active shipbreaking yards along the Sitakunda coast dismantle more than 150 ships annually, processing over one million tonnes of material. 

The industry, valued at approximately Tk30,000 crore, contributes Tk1,200–1,500 crore in government revenues each year, according to BSBRA.