Govt urged for immediate support to ship recycling industry

Stakeholders in the country's shipbreaking industry have urged the government to provide assistance on an urgent basis to ensure the industry's sustainability.

After witnessing the lowest imports of scrap ships last year, the shipbreaking industry is currently facing its worst-ever period owing to several reasons, including the dollar crisis, they said.

"Due to the ongoing economic and dollar crises, we are not able to import ships and run our business. If the government does not come forward with immediate assistance, it is not possible to sustain the industry," said the President of the Bangladesh Ship Breakers and Recyclers Association, Abu Taher, during a roundtable at Hotel Agrabad in Chattogram on Thursday.

The roundtable, "The Challenges of Green Yard in Bangladesh," was organised by the non-government development organisation YPSA, in collaboration with the shipbreakers' association.

The Business Standard was the media partner of the event.

"If the government does not come forward with immediate assistance, it is not possible to sustain the industry"

Abu Taher, president of the Bangladesh Ship Breakers and Recyclers Association

Addressing as the chief guest, Abu Taher said the number of shipbreaking yards in the country has declined to 120 from 160 over the last five years. At present, only 20-25 yards are in operation. 

"We have made many changes to the cutting system [at yards] and achieved commendable development in the last 30 years. Meanwhile, we have a big challenge to transform all the yards into green yards by 2025," he added.

In his speech, former vice president of the association, Master Abul Kashem said, "The industry provides Tk1,000-1,500 crore revenue to the government. But, in return, the industry got nothing. If the government does not come forward with financial stimulus and policy support in this crisis period, the industry will collapse."

Vice President Mohammad Zahirul Islam said it requires an investment of Tk50-100 crore to transform a traditional yard into a green yard. Many ship breakers cannot afford to invest such a big amount.

"If the government arranges long-term loans with low interest, they can transform the yards into green yards within the timeframe set by the Hong Kong Convention, and survive," he said.

Addressing the event, Chattogram Bureau Chief of The Business Standard, Shamsuddin Illius stressed the responsibility and accountability of industry owners in sharing information about the latest developments. 

"The sector has seen tremendous development in recent years. But, the world is not aware of the development as the owners do not share proper information, which often leads to the publication of negative reports with misinformation," he said.

Mohammad Ali Shahin, coordinator of the YPSA, delivered the keynote presentation at the event.