Friday, July 17, 2020

Ship Breaking Industry prospect in Bangladesh

Bangladesh's ship-breaking industry was the world’s largest until 2009 when various legal campaigns by environmental groups almost shut down the sector. In 2010, due to court restrictions, only 107 vessels were dismantled. However, last year, courts lifted the ban on the import of ships until government ministries formulate detailed guidelines for the ship-breaking sector. The industry has seen businesses pick up the pace again with 150 ships dismantled in 2011. A total of 260 scrap ships weighing 2.86 million tons were imported at a cost of about $1.35 billion in 2012, which is the highest in the last five years when the industry saw many ups and downs due to legal complexities. Bangladesh’s unique geography is also another reason why the aging ship is taken to the beaches there. The industry is worth around $1.0 billion and nearly 130,000 workers' involvement. The strong prospect of this industry will facilitate more steel production in our country.

 A portion of ship breaking yard in Bangladesh

As per providing information for 82 countries those are involving ship recycling business, with some admittedly achieving very small tonnages. Five of the 82 countries have recycled consistently on an average of 97% to 98% percent of total tonnage recycled in the world.

 

In 2019, 664 no’s scrap vessels were dismantled whole over the world in where 89.61% of total scrapped ships were dismantled in the top five (5) mentioned Countries such as Bangladesh, India, Pakistan, China, Turkey. This was reported during the last financial year 2018, 2017, and 2016, the respectively total number of 745, 835 ships, 862 ships were dismantled in the world. It was found that South Asian Countries i.e. Bangladesh, India and Pakistan are the highest scrap ship dumping zone in the World. Since there were approximately 70% of the total world dismantled ships were dismantled in the above mentioned three South Asian Countries.


Delivery point of Ship Breaking Yard

By considering the number of vessels; Bangladesh is the largest ship dismantled industry in the World in 2019, which was the second-largest ship dismantled the country in the last couple of years 2018, 2017, 2016 and 2015. But according to gross tonnage Bangladesh is the largest ship scrapped Country in the World.

 

Bangladesh dismantled approximately 7.61 million GT weighted scrap vessels in 2019 which was 7.94 Mil. GT weighted scrap vessel in 2018. Bangladesh dumped scrap approximately 57.35% of total dumping scrap in the world in 2019 which was 42.03% of total dumping scrap ships in 2018. On average Bangladesh gradually dismantled 7.69 Mil. GT scrapped within the 20.14 Mil. GT average scrapped in the World.


Workers are working in Yard

But based on gross tonnage; Bangladesh dismantled the highest amount gross tonnage of vessels scrapped during the last three years. Where, Bangladesh scraped about 57.35% in 2019, 42.03% in 2018, 31.74% in 2017, 34.80% in 2016 and 33.17% in 2015 where India scrapped the second-highest ship breaking approximately 27.58% in 2019, 26.05% in 2018, 28.90% in 2017, 29.94% in 2016 and 22.19% in 2015. Three South Asian Countries Bangladesh, India, and Pakistan cut near about 70%-75% of total weighted scrapped ships during the last five financial years. Bangladesh consistently continues stable growth, strong business, and industrial performance in the world. It provides a comparatively better contribution to the world during the last couple of years.

Scrap Vessel is an undercutting process 

In the last 13 months; Bangladesh procured 234 scraped vessels weighed about 7.84 Mil. GT. In the above months, Bangladeshi ship-breaking industrialist procured more scrap ships in January and May of 2019. During these two months, Bangladesh procured about 2.47 Mil. GT weighted scrapped which was approximately 32% of total imported scrapped.

 

The main sources for the purchase of unserviceable vessels are the former USSR, Bulgaria, Romania, Greece, Italy, Turkey, Japan, Singapore, South Korea, etc. Toeing of a dead ship for scrapping is costly, so the Bangladeshi ship Breakers and their agents generally prefer to buy ships on voyage or ships stranded at a port near to Chittagong, i.e., located at any port of India, Sri Lanka, Myanmar, Thailand, and Singapore. 


Using Excavator to store scrap cut pieces in the yard 


The Bangladeshi Traders and shipbreakers purchase dead/unserviceable vessels or ships in running conditions from different parties at different points and bring those to Bangladesh for beaching. The shipbreakers purchase the vessels of their choice. Nationality of the owners of the vessels or the country of origin of the ships is not a factor of consideration but they consider the following points during purchase of the ships: Shipbreaking business turned lucrative at that time as the cost of scrap steel was lower than that of new steel. But within two years more big players came in the industry to diversify their business which depressed (and may further depress) the industry profitability. The current duty structure for scrap steel is BDT 1000/MT. Duty and VAT are also charged respectively @ 25%-11% and @ 15% on different items.  Changes in duty structure may affect profitability. The testing system of cranes, lifting machinery, and motorized pulley is hardly done. The yards re-use ropes and chains recovered from the broken ships without testing and examining their strength. There is no marking system of the loading capacity of the chains of cranes and other lifting machinery. Gas cutters and their helpers are cutting the steel plates almost round the clock without the protection of eyes. So, their eyes are always vulnerable to welding effects. The unskilled workers carry truck able pieces of iron sheets on their shoulders, they do not know the weight of the sheets they carry, and the employers are not aware of the legal limit of weights carried by workers. Usually, these workers carry weights far above the limit prescribed in the Factories Act and Factories Rules. Because health risks are involved in the process, it is trying to give its workers proper training regarding first aid and safe work and arrange safety equipment for them.


ETP plants required by EA


No comments:

Post a Comment

Apple MacBook Pro 14 M4 Review: Performance, Features, and Price Comparison

  Introduction The Apple MacBook Pro 14 (M4) is designed to cater to professionals and content creators, offering powerful features and...