2nd-gen leaders are reshaping shipbreaking in Bangladesh

Bangladesh's shipbreaking industry is experiencing a significant green transformation, driven by the innovation and commitment of its second-generation entrepreneurs. These young leaders are stepping into the shoes of their predecessors, who began the shipbreaking business in the 1980s and are working to modernise operations while adopting global standards to promote sustainable growth. 

By focusing on "green yards" and obtaining international certifications, this new wave of entrepreneurs is not only improving business practices but also reshaping the industry's global reputation.

Since its inception, the shipbreaking industry in Sitakunda has been vital to Bangladesh's economy, providing steel and raw materials for the domestic market. Thousands of end-of-life ships have been dismantled and recycled in this area using locally developed methods. 

However, for decades, the industry faced criticism over environmental pollution, poor working conditions, and safety concerns, attracting the attention of international stakeholders and human rights organisations. Change began in earnest around 2015 when the second generation of entrepreneurs assumed leadership.

These young innovators have injected fresh energy and ideas into the industry, particularly in response to global concerns about the environmental and social impacts of shipbreaking. Recognizing the need for change, they began to explore modern technologies, safer practices and environmentally friendly methods. 

One standout example of this transformation is PHP Shipbreaking and Recycling Industries, the first green-certified shipbreaking yard in Bangladesh. Zahirul Islam, the managing director of PHP, shared his journey with The Business Standard. His father, Sufi Mizanur Rahman, launched the shipbreaking business in 1982 — the same year Islam was born. 

After studying in Australia, he joined the family business in 2008, right as the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) was gaining traction globally.

Islam's early experiences at international shipbreaking conferences left a lasting impression on him. "At a seminar on the Hong Kong Convention in Thailand in 2009, I faced intense criticism from global shipping companies and NGOs regarding the poor conditions in our industry. It made me realise that we were doing something wrong," he recalled. 

Similar encounters at a conference in Dubai in 2010 further solidified his belief that change was essential. Motivated by these experiences, he returned to Bangladesh determined to overhaul his family's shipbreaking yard. 

With his father's support, he began implementing HKC guidelines. However, finding the right consultants for guidance proved challenging and the transformation process was slow. After finalising the yard's redesign in 2012, construction began in 2013. By 10 October 2017, PHP had received its green certificate, marking a significant milestone for both the company and the entire industry.

PHP's success inspired other young entrepreneurs to follow suit. "After we got certified, many reached out to learn about the process. Everyone was eager to improve their own yards," Islam noted. His leadership in adopting environmentally responsible practices has set a high standard for others in the sector.

Indeed, second-generation entrepreneurs are leading the charge toward a greener future. Among them are Taslim Uddin, managing director of KR Ship Recycling; Shahriar Jahan Rahat, deputy managing director of Kabir Ship Recycling Facilities; and Zaran Ali Chowdhury, director of SN Corporation. Each has embraced modern practices in their family businesses to secure green certifications for their yards.

According to the Bangladesh Ship Breakers and Recyclers Association (BSBRA), 20 shipbreaking yards are currently undergoing transformation, all spearheaded by second-generation entrepreneurs. This collective effort showcases a broader trend within the industry: a strong commitment to sustainability and global competitiveness from the younger generation.

AKM Saifullah Sayed, managing director of Mother Steel Ltd and Master Steel and Oxygen Ltd, shared this vision with The Business Standard, "When I joined my father's shipbreaking business, it was in dire condition. To ensure sustainability, we initiated a transformation. We have already developed three yards following HKC guidelines—one has received a green certificate, while the other two await certification." His dedication exemplifies the industry-wide shift towards long-term sustainability under second-generation leadership.

Despite the challenges of overhauling an industry with deeply rooted practices, these young entrepreneurs are committed to maintaining Bangladesh's leadership in the global shipbreaking market. "Shipbreaking is our core business, providing livelihoods for many. Despite the challenges, we have led the global market for the past nine years. We are committed to developing the industry to retain our top position," Sayed added.

The achievements of these second-generation leaders are further validated by the efforts of industry figures like Nizamul Alam, son of former Chattogram City Corporation Mayor M Monjur Alam, who oversees three family-run shipbreaking yards, all of which are working towards green certifications. 

Nurul Afsar, managing director of Baraka Steel and son of Sirajud Dowla, highlighted the significant investments made by these young leaders, "We have taken risks to invest heavily in developing our yards because we want to change our image. We don't want to be viewed as polluters or as harming workers."

As Bangladesh's shipbreaking industry evolves, it is evident that the second generation of entrepreneurs is guiding the sector towards a more sustainable, responsible and globally respected future. Their efforts not only promise to preserve the industry's economic importance but also align it with the environmental and safety standards expected by the international community.