Bangladesh and Japan join forces to transform ship recycling industry

Bangladesh has embarked on a transformative journey to overhaul its ship recycling industry, backed by strategic cooperation with Japan.

This renewed partnership was spotlighted at a high-level seminar held today (30 July) at the Radisson Blu Hotel in Chattogram, jointly organised by the Japan International Cooperation Agency (JICA) and the Ministry of Industries of the Government of Bangladesh.

The seminar, titled "Advancing Rustamatie Ship Recycling in Bangladesh," brought together senior government officials, global industry representatives, and key stakeholders to discuss sustainable practices and the path to full compliance with international standards—particularly the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).

Delivering the keynote presentation, "Strategic Policy Shift and Operational Reform in Ship Recycling," ASM Shafiul Alam Talukder, Director General of the Bangladesh Ship Recycling Board (BSRB), outlined a new regulatory direction driven by environmental responsibility, safety, and international cooperation.

"Effective from 26 June, Bangladesh has stopped issuing No Objection Certificates [NOCs] to any ship recycling facilities that are not compliant with HKC standards," Talukder said. "Out of 153 operational yards, only 13 currently meet HKC requirements. This gap is not just a challenge — but a chance to redefine our global standing in the industry."

He highlighted how the BSRB has evolved from a licensing body into a strategic regulator. A newly established Compliance Monitoring Cell is now enforcing real-time oversight, third-party certification via Japan's ClassNK, and mandatory adherence to the Inventory of Hazardous Materials (IHM).

Japan's role in this transformation has been pivotal. With JICA's technical and policy support, Bangladesh is conducting infrastructure audits, modernising yard layouts, and aligning operational practices with international standards. In addition, amendments to the Ship Recycling Act 2018 and the Ship Recycling Rules 2011 are under active review to institutionalise these reforms.

Looking ahead, Talukder announced two landmark initiatives set to launch in 2026 in collaboration with Japanese partners: a Carbon & Compliance Dashboard to introduce data-driven governance, and a National Training Institute focused on capacity building and environmental best practices. A carbon trading pilot project is also in the pipeline.

"Our target is to achieve 60 or more HKC-compliant yards by 2030," he said, underlining the importance of continued bilateral cooperation.

The seminar also featured remarks from distinguished experts, including Professor Zakaria from BUET, Yasufumi Onishi, Director of the International Affairs Office at Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and Hiroshi Ochi, General Manager of the Green Certification Department at Nippon Kaiji Kyokai (ClassNK).

Other speakers included Md. Sajedur Rahman, Joint Secretary at the Ministry of Industries; Obyida Asadi, Director of Progressive Ship Recycling; and Hossainul Arefin, director of Janata Steel Ltd High officials from the Japanese shipping lines, K-Line, MOL, NYK-Line and NS United were also present at the seminar.

Participants emphasised that responsible ship recycling is no longer optional—it is essential for sustainability, international competitiveness, and worker safety. While the industry faces challenges such as high capital investment and inflation-driven scrap price volatility, the speakers called for enhanced financial support, loan flexibility, and international funding to help yards upgrade.

The collaborative push between Bangladesh and Japan is setting a precedent for emerging economies aiming to meet global compliance. As one of the top players in global ship dismantling, handling 34.6% of the world's tonnage, Bangladesh's success could reshape the international ship recycling landscape.

"Bangladesh is no longer following the tide," said Talukder. "With Japan as our partner, we are steering the course toward a cleaner, safer, and more competitive future."