Leaders of Bangladesh’s shipbreaking and recycling industry have urged the government to extend the enforcement deadline of the Hong Kong International Convention (HKC) by five years until 2030, allowing local yards more time to transition to environmentally compliant operations.

At a roundtable titled ‘Challenges and Possibilities of Ship Recycling in Bangladesh,’ organised by the Bangladesh Ship Breakers and Recyclers Association (BSBRA) on Wednesday in Dhaka, industry leaders also called for long-term financial support, citing the need for an average investment of $5–10 million per yard to meet HKC standards.

They further demanded a reclassification of the industry from ‘red’ to ‘orange,’ arguing that the current classification delays cutting permissions from the environment ministry by two to three months, hindering operations.

Former commerce minister Amir Khasru Mahmud Chowdhury, Norway ambassador to Dhaka Hakon Arald Gulbrandsen and Deputy head of Mission of Dutch Embassy in Dhaka Thijs Woudstra, among others, spoke there.

As the chief guest, Amir Khasru stressed that the government should facilitate the growth of industries, particularly shipbreaking and recycling, rather than merely regulating them.

He urged Bangladesh to set a target of dismantling 30 per cent of the expected 15,000 ships by 2030 and called for better government support to seize this opportunity.

He highlighted the challenges industries face when growing, citing the garment sector as an example, and criticised excessive regulation, which he said hinders business.

He advocated for deregulation, allowing trade bodies to be self-regulated with the government acting as a watchdog.

Additionally, he emphasised the need for government support, including technical and financial assistance, while ensuring climate change mitigation and adaptation measures.

Norwegian Ambassador Håkon Arald Gulbrandsen highlighted the challenges facing Bangladesh’s shipbreaking industry, including environmental hazards, safety concerns, and regulatory compliance.

He stressed that shipbreaking releases hazardous substances, posing ecological risks, while inadequate waste management and unsafe working conditions further complicate the situation.

He noted that many yards rely on low-skilled labour, increasing accident risks and that Bangladesh has yet to fully comply with the Hong Kong International Convention (HKC).

The industry also struggles with a lack of government support, inconsistent policies, and weak enforcement of regulations.

Comparing Bangladesh to India and Turkey, which have adopted safer and greener methods, he suggested that mechanisation and improved waste management could enhance efficiency.

He emphasised that while the sector has significant economic potential, it must adopt sustainable practices, enforce regulations, and invest in modernisation to establish itself as a global leader in eco-friendly ship recycling.

Hubert Blom, Programme Manager for Green Growth and Climate Change at the EU Delegation to Bangladesh, said Bangladesh’s shipbreaking and maritime sector is extremely important to the European Union.

Describing the local shipbreaking industry as an “important sector for Bangladesh,” he said that to remain competitive, the industry must comply with the Hong Kong Convention.

‘The challenge remains how to stay in the market and realise its potential, which undoubtedly exists,’ he noted.

BSBRA Acting President Zahirul Islam highlighted Bangladesh’s ratification of the Hong Kong Convention (HKC) in June 2023, with enforcement set for 26 June this year.

He urged the government to extend the deadline to 2030, as only seven yards have received green certification, with 15 more in progress.

Despite being the top shipbreaking nation over the past decade, the industry faces challenges such as a lack of green financing, high US dollar exchange rates, and rising bank interest rates.

He noted that compliance with HKC requires an investment of $5–10 million per yard, yet banks are reluctant to finance it.

He also criticised the industry’s ‘red’ classification, which delays cutting permissions by two to three months.

With active shipyards declining from 200 to 40, he called for government support, stressing the industry’s vital role in supplying raw materials to steel, re-rolling mills, and the construction sector.

Mohammad Ali Shahin, Coordinator of YPSA, said they had been advocating for HKC compliance since 2009, and some entrepreneurs have finally recognised its importance.

Speaking at the event, labour leader Nazim Uddin noted that Bangladesh is competing with major players such as China, Pakistan, and India, and stressed the need for necessary measures to sustain the industry.

He also proposed trade representation on the board responsible for monitoring the ship recycling industry.