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.
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A portion of ship breaking yard in Bangladesh
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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.
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Delivery point of Ship Breaking Yard
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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.
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Workers are working in Yard
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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.
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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.
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Using Excavator to store scrap cut pieces in the yard
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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.
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ETP plants required by EA
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