Turning the tide: Bangladesh shipbreaking sheds hazardous past for green future
All operating yards must adhere to IMO protocols under the Hong Kong International Convention
Once synonymous with perilous working conditions, severe pollution, and tragic accidents, Bangladesh's shipbreaking industry has achieved a monumental transformation, officially becoming the nation's first fully green industrial sector.
As of yesterday (26 June), only yards certified as environmentally compliant are permitted to operate – a pivotal moment hailed by industry leaders as the culmination of sustained reforms and unwavering policy support.
This radical overhaul, nearly a decade in the making, gained significant momentum after Bangladesh ratified the Hong Kong International Convention (HKC) for the safe and environmentally sound recycling of ships in 2023. Under these new mandates, all operating yards must now dismantle vessels in smaller sections, transporting them safely by crane or barge to secure secondary cutting zones. This replaces the outdated and hazardous practice of open-beach dismantling.
Worker safety has also seen a dramatic improvement. Comprehensive protective gear, including uniforms, steel-toe boots, gloves, helmets, goggles, and masks, is now mandatory for all workers. Visitors are also strictly barred from entering without appropriate safety equipment.
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"We have become the first fully green industry in the country. No non-green yard will be allowed to import ships. That is a significant leap," stated Zahirul Islam Rinku, acting president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA). He acknowledged that this transition might temporarily reduce the number of operating yards and impact jobs but expressed confidence that all transitioning yards would achieve certification by year-end.
A decade of transformation
Since ratifying the HKC, the number of compliant yards has soared to 13, with an additional 15 currently undergoing the rigorous transformation process. All operating yards are now mandated to follow International Maritime Organization (IMO) protocols under the HKC, which impose stringent standards for environmental safety and responsible dismantling.
These upgraded practices have already garnered national recognition. The Ministry of Labour and Employment recently awarded the "Green Factory Award 2025" to PHP Ship-Breaking and Recycling Industry and KR Ship Recycling Yard, underscoring their commitment to sustainable operations.
Economic engine turns green
Located along a 20-kilometre coastal strip in Sitakunda, Chattogram, Bangladesh's shipbreaking yards dismantle 150 to 200 ships annually. This industry is a vital economic contributor, pumping an estimated $10 billion into the national economy, according to the BSBRA. Valued at around Tk30,000 crore, the sector generates Tk1,200-1,500 crore in annual government revenue. Over the past three years, more than Tk2,000 crore has been invested to bring facilities in line with HKC standards.
The industry supplies a substantial 40%-50% of the raw materials for the country's Tk50,000 crore steel sector and is the primary source of inputs for the re-rolling industry. Furthermore, the Tk10,000 crore shipbuilding sector relies on it for nearly 90% of its components. Beyond steel, recovered industrial equipment, appliances, and furniture contribute an estimated Tk10,000 crore to the economy, with exports of antique and marine items bringing in over Tk1,000 crore in foreign earnings annually.
From grim past to greener future
The industry's formal operations began in the 1980s. Archival footage reveals a stark reality: workers dismantling colossal ships without protective gear, manually lifting heavy steel plates, and operating in undeniably unsafe conditions. A report by the Bangladesh Institute of Labour Studies (BILS), published in December 2024, documented 129 worker fatalities and over 200 injuries in the sector between 2015 and 2024, averaging nearly 13 deaths per year. The archaic "beaching" method of dismantling, which involved dropping ship sections directly into the sea, led to extensive marine pollution. Between 2008 and 2019, approximately 30 fish species vanished from the Sandwip Channel.
The winds of change began to blow in 2015 when PHP Ship-Breaking and Recycling Industry adopted international safety and environmental standards. By 2017, it became the first Bangladeshi yard to earn green certification, having invested Tk55 crore (about $6.6 million) to upgrade its facilities. Crucially, since then, PHP has reported no deaths or serious accidents. To date, 12 additional yards have achieved green certification, including prominent names like Kabir Ship Recycling Facilities, KR Ship Recycling Yard, Arab Ship Recycling Yard, HM Shipping, MAK Corporation, Ferdous Steel, NB Steel, King Steel, KR Steel, and three units of SN Corporation.
Shafiul Alam Talukder, director general of the Ship Recycling Board, confirmed, "There were seven green yards earlier. We've recently approved six more." He added that yards that have completed development and are working to comply with the HKC will receive provisional import permission, while those still lacking infrastructure will be barred from importing or dismantling ships.
Safer, cleaner, and more efficient
The momentum significantly accelerated in 2021 with increased pressure from the Ministry of Industries to comply with HKC standards. The introduction of heavy equipment, comprehensive safety gear, and structured worker training has yielded substantial improvements. From 2015 to 2019, the sector recorded 89 worker deaths, averaging 17.8 per year. However, between 2020 and 2024, the total dropped to 40, averaging 8 per year. Fatalities decreased steadily from 10 in 2020 to 7 each in 2022, 2023, and 2024. Remarkably, only one death occurred in the first half of 2024, and no fatalities have been reported so far in 2025.
Mohammad Taslim Uddin, managing director of KR Ship Recycling Yard, shared his vision: "By going fully green, we want to secure environmental credibility and become a global hub for ethical ship recycling. We want to set an example for the international community, which once heavily criticised us. What began in controversy is now a powerful example of how regulation, investment, and innovation can reinvent an industry."
Ongoing concerns and the path forward
Despite the remarkable progress, challenges persist. A deadly explosion at SN Corporation – a certified green yard – killed six workers on 7 September 2024. A Ministry of Industries investigation traced the blast to the pump house of a dismantled tanker, finding the yard responsible. It was fined Tk26 lakh and ordered to halt operations for three months. This incident underscored concerns about safety enforcement, even within certified facilities.
Fazlul Kabir Mintu, coordinator of BILS and member secretary of Ship-breaking Workers Trade Union Forum, said, "In the first six months of this year, a total of 16 accidents have been reported in the industry where an electrician was electrocuted in a non-green yard and 17 workers sustained injuries. Many yards are yet to fully implement the minimum wage too."
He warned that effective implementation of the HKC may be jeopardised unless sustainable development in Bangladesh's shipbreaking industry is ensured, particularly with regard to labor rights and environmental safety.
Mohammad Ali Shahin, coordinator of the non-governmental organisation Young Power in Social Action and an expert on the shipbreaking sector, noted that Bangladesh had been slow to adopt green practices, even as global efforts were already underway. "Now the global market is opening up. The next two decades could be highly prosperous. Falling behind at this stage would be a serious loss," he cautioned. He emphasised that sustained investment from yard owners and a strong, consistent policy push from the government will be crucial to keeping the industry on its green trajectory.
