Bangladesh’s shipyards invest Tk2,000cr for a greener industry

On Saturday, around 11am, Mohammad Yousuf was busy supervising workers at the under-construction Ferdous Steel Ship Recycling yard in Sitakunda, Chattogram. Yousuf, overseeing the 600,000-square-foot ship-breaking yard, was hard at work to ensure everything was done carefully and on time.

After halting operations for over a year and a half, the yard is now investing more than Tk2 crore to complete upgrades by December 2024. The push comes as Bangladesh aims to meet the standards of the Hong Kong Convention (HKC) by 2025.

The deadline feels tight. "Not only are we incurring losses by stopping operations, but we also have to become an environmentally responsible yard," Yousuf shared. The full cost of bringing the yard up to HKC compliance will exceed Tk200 crore.

"We are committed to sustainable ship recycling that protects the environment and ensures worker safety. We want to eliminate accidents and prevent any further loss of life," Yousuf added.

Asaduzzaman, another official, noted, "We are transforming this yard into one of the largest and safest ship-breaking facilities in South Asia. The goal is to complete all engineering work by December 2024 and start the certification process by January 2025."

"Getting green certification is not easy. We've invested more than Tk150 crore in equipment and infrastructure upgrades. But one of the biggest challenges is training workers to meet the compliance requirements — we simply don't have enough skilled manpower in the industry."

Nizamul Alam, Managing Director, HM Shipping Lines

Ferdous Steel is not alone in this mission to go green. According to the Bangladesh Ship Breakers and Recyclers Association (BSBRA), about 20 other yards have invested nearly Tk2,000 crore to meet HKC standards. Many of these yards have paused operations to focus on upgrading their facilities.

The pressure to reform the industry is not new either. Since 2020, at least 47 workers have lost their lives in shipyard accidents, raising serious concerns among NGOs and civil society about worker safety and environmental hazards.

In response to these concerns, Bangladesh ratified the Hong Kong Convention in 2023, setting a 2025 deadline for compliance. So far, four yards have been awarded the prestigious Class NK certification for environmentally-friendly ship dismantling.

The shift toward sustainability has drastically reduced the number of active yards from 120 to just 25. 

One standout is PHP Ship Breaking and Recycling Industries, which achieved green certification back in 2017. PHP has maintained a zero-death record ever since.

Zahirul Islam Rinku, managing director of PHP and a key leader in the BSBRA, is now actively encouraging other yards to follow suit. His message is clear: going green is not just good for business — it is essential for the industry's future.

Arav Ship Recycling Industry, located in the Sonaichhari area, has undergone a remarkable transformation over the past two years. This 170,000-square-foot facility, which greets visitors with a landscaped entrance, now has the capacity to recycle 150,000 tonnes of ships annually.

The yard has added key features to ensure safe operations, including a water treatment plant, waste management storage, dormitories with indoor playgrounds for workers, and fire extinguishing units. To further boost efficiency, the company imported two crawler cranes, each with a 200-tonne lifting capacity, at a cost of Tk13 crore. Having already secured ISO certification, the yard is now preparing to complete the Hong Kong Convention (HKC) certification process in the coming months.

Nur Uddin Rubel, chairman of Arav Ship Recycling, reflected on the journey, "We started ship-breaking in 2014 with conventional methods that were unsafe for workers and harmful to the environment. While we made profits and contributed to the local economy, we also faced criticism. In response, we invested over Tk100 crore to turn our yard into a green facility that meets HKC standards."

Meanwhile, HM Shipping Lines, one of the industry's oldest players known for dismantling large vessels, is working to upgrade three conventional yards to green-certified ones. Managing Director Nizamul Alam explained, "Getting green certification is not easy. We've invested more than Tk150 crore in equipment and infrastructure upgrades. But one of the biggest challenges is training workers to meet the compliance requirements — we simply don't have enough skilled manpower in the industry."

As the June 2025 deadline for HKC compliance draws near, ship-breaking yards across Bangladesh are racing to make the necessary upgrades. While the transformation requires major investments and operational changes, it's essential for the country to maintain its leadership in the global ship-breaking industry.

However, the high cost of compliance could force smaller yards out of the market, potentially shrinking the industry. 

Despite these challenges, the shift toward green ship recycling will create a safer, more sustainable future for workers and the environment. Yards that succeed in obtaining HKC certification will set new standards for environmentally friendly operations in South Asia — paving the way for a better and safer industry.