Govt aims to restore Bangladesh’s top position in global ship recycling: Industries minister

Industries Minister Khandakar Abdul Muktadir today (6 July) said the government is working to restore Bangladesh’s position as the world’s leading ship recycling nation by promoting environmentally compliant yards and addressing industry challenges.

Speaking to journalists after visiting the PHP Ship Breaking and Recycling Yard in Sitakunda, Chattogram, the minister said the sector has undergone a significant transformation, overcoming longstanding concerns over environmental and labour standards.

“There was a time when ship recycling was viewed negatively due to environmental concerns, labour exploitation and poor working conditions. Today’s reality is completely different,” he said.

He added, “The scientific methods, high compliance standards and environmental practices we have seen here are a matter of national pride.”

Muktadir said the government aims to bring all ship recycling yards under green certification and ensure they comply with international environmental and safety standards.

He noted that Bangladesh recycled nearly 45% of the world’s end-of-life ships two years ago, making it the global leader before slipping to second place.

“We temporarily lost our top position. Inshallah, we will regain the number one position,” he said.

Responding to questions about ship recyclers’ complaints over extortion, business disruptions and law and order, Muktadir said the visit was aimed at hearing the industry’s concerns firsthand.

“If there are business-related or policy-related problems, we want to resolve them quickly,” he said.

“I did not hear any complaints about law and order directly from the industry representatives during the meeting. However, if such issues exist, we will inform the relevant ministries and agencies. The government will certainly take necessary action,” he added.

The minister also acknowledged that gas shortages remain a major challenge for industries, saying Bangladesh faces a supply deficit of around 1,600 million cubic feet per day (MMCFD), limiting the government’s ability to boost supply in the short term.

“The government is evaluating several emergency programmes and conducting feasibility studies to increase gas supply as quickly as possible,” he said.

Moktadir added that the government is also reviewing policy issues related to international ship recycling conventions, including Bangladesh’s previous position on the Basel Convention and the Hong Kong International Convention.

“We are working on these issues,” he said, without elaborating.

Industry seeks policy reforms

BSBRA former vice-president Zahirul Islam Rinku said the minister visited the yards at the association’s request to witness the industry’s progress firsthand.

“International NGOs and media often highlight only the negative aspects of Bangladesh’s ship recycling industry. We wanted the minister to see the current situation for himself,” he said.

Rinku said one of the sector’s main concerns was its classification as a “red category” industry by the Department of Environment.

“When our yards lacked proper environmental facilities, we were classified as an orange category industry. Ironically, after investing heavily to develop some of the world’s best green recycling yards, we were moved to the red category over the past two years,” he said.

According to Rinku, Bangladesh was the world’s largest ship recycling nation from 2010 to 2025 before recently being overtaken by India. He urged the government to review the classification, arguing that it had weakened the industry’s international competitiveness and restricted access to financing.

The association also called for updating the Ship Breaking and Recycling Rules, 2011, saying the regulations no longer reflect the sector’s technological advances and evolving safety standards.

Rinku said the red-category classification has also barred compliant yards from accessing Bangladesh Bank’s green financing scheme.

“Industries classified under the red category cannot access green financing. If our classification is revised, compliant yards will be able to secure long-term green loans for further investment,” he said.

According to Rinku, the minister responded positively and assured industry leaders that the issue would be reviewed.