International conference on shipbreaking industry kicks off in Ctg
A two-day international conference on the shipbreaking industry has kicked off in Chattogram aimed at making the industry more environmentally friendly and sustainable.
The event began on Wednesday morning in the Radisson BLU Bay View Mohana Ballroom.
The conference, titled "International Conference on Business and Investment Opportunity for Ship Recycling Industry in Bangladesh," featured five different roundtable sessions on five topics on its first day.
The event was organised jointly by the Ministry of Industries, International Maritime Organization (IMO), Norwegian Embassy, and Bangladesh Ship Breakers and Recyclers Association (BSBRA).
Keep updated, follow The Business Standard's Google news channel
At the conference, a call was made for effective steps to reduce risks in the industry while making the shipbreaking yards greener.
Speaking at the event, Zakia Sultana, senior secretary of the Ministry of Industries, said the shipbreaking industry is a potential sector for Bangladesh and urged development partners to finance the industry as it can turn into an environmentally friendly and risk-free sector.
Norwegian Ambassador to Bangladesh, Espen Rikter‐Svendsen noted, "There is a positive change in the shipbreaking industry of Bangladesh. Norway is fully supporting the development of this industry. Government support is needed. We are providing training. Norwegian shipowners are interested in recycling their ships in Bangladesh."
Zahirul Islam Rinku, vice president of BSBRA and managing director of PHP Shipbreaking and Recycling Industries, highlighted that the shipbreaking industry generates an annual income of about $770 million, with the government earning around $110 million in revenue.
He mentioned that the industry directly employs 20,000 to 40,000 people, and indirectly provides jobs for about one million people, playing a significant role in the country's sustainable development.
He urged for soft loans with low interest rates from the central bank and commercial banks for turning the non-compliant yards into green yards.
Speakers at the roundtable session also discussed the Bangladesh government's ratification of the Hong Kong Convention in June 2023, as per the provisions of the Ship Recycling Act-2018.
The convention will come into force in the last week of June 2025.
During this period, ship recycling yards need to be upgraded to compliant (green) yards as per the convention. Otherwise, it is uncertain if any ships from Europe and developed countries will be sent to Bangladesh for recycling.
The Ministry of Industry has approved the Ship Recycling Facility Plan (SRFP) for 108 yards to upgrade them to compliant standards.
Implementing SRFP requires significant investment: around Tk30 crore to Tk50 crore for small yards, Tk40 crore to Tk70 crore for medium-sized yards, and Tk80 crore to Tk110 crore for large yards.
So far, four yards in Bangladesh—PHP Ship Breaking and Recycling Industries, Kabir Steel, SN Corporation (Unit-2), and KR Ship Recycling Yard—have been upgraded to compliant (green) yards.
Due to financial constraints, other yard owners find it challenging to upgrade to green yards. The conference highlighted the need for the government, IMO, and other development partners to provide easy-term loans to solve this issue.
UN Resident Coordinator Gwyn Lewis, IMO official John Alonso, and other experts participated in the roundtable sessions. They included Shafiqul Islam Aziz, consultant engineer of the shipbreaking industry, BIMCO head of Marine Environment Aaron Serensen, Additional Secretary of the Ministry of Industry Shah Md. Helal Uddin, Takeshi Naruse from ClassNK's Green Certification Department, Pratap Chandra Biswas, joint secretary of the Ministry of Industry, Jasim
Uddin Badal, national project manager of IMO, and Morshed Ahmed, senior advisor of the Norwegian Embassy.
