For nine consecutive days, shipbreaking yards across Bangladesh have remained shut, as owners continue their protest against a government circular mandating an environmental certificate for incoming vessels. This sustained halt in operations highlights a crucial dialogue needed between industry stakeholders and regulatory bodies to navigate the path toward more sustainable and compliant industrial practices in the nationโs vital shipbreaking sector. The core of the dispute revolves around a government requirement for ship breakers to secure a certificate from sellers confirming that old ships do not contain any toxic materials.As stated by industry representatives, like a top consultant from the Bangladesh Ship Breakers Association, obtaining this certificate from exporters is difficult because many parties are involved.and international jurisdictions. This regulatory hurdle has prompted the industry to suspend operations, signaling a demand for a re-evaluation of the mandate or a more practical implementation approach. Despite the prolonged shutdown, the local steel market has shown resilience, with prices for rods remaining stable. This stability is largely attributed to a significant existing stock of scrap materials at re-rolling mills and a currently subdued demand for steel, indicating that the immediate impact on the broader construction sector has been mitigated for now. Annually, the shipbreaking industry is a major supplier, providing around 2.0 million tonnes of scrap to Bangladesh’s re-rolling mills, which collectively produce about 2.5 million tonnes of steel. Currently, approximately 100 old ships are awaiting dismantling at the yards, underscoring the industry’s substantial capacity and its foundational role in the country’s steel supply chain. The ongoing suspension, driven by the industry’s resolve to continue their protest until the circular is withdrawn, underscores the need for a collaborative resolution. The aim of the government’s circular is likely to improve environmental safety and promote responsible ship recycling. However, it is also important to consider the real challenges that the industry faces in meeting these requirements. Finding a common ground that balances environmental protection with the operational realities and economic viability of this crucial sector is essential for Bangladesh’s industrial future. A transparent and pragmatic dialogue could lead to solutions that uphold environmental standards while supporting the industryโs capacity to contribute to the nationโs economy.
