Ship breaking industry of Bangladesh

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Welcome Shipbreaking Industry In Bangladesh: Challenges & Prospects 11/29/2015prepared by group 3

Group 3Priyanka Hui Chowdhury 120316Arna Banarjee120324Sumona Hossain120336Niaz Bhuian12035411/29/2015prepared by group 3

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Ship Breaking IndustryHistory Ship Breaking Industry in BangladeshChallengesProspectsRecommendations

11/29/2015prepared by group 3

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Shipbreaking IndustryKnown as ship recycling.

Is the process of dismantling an obsolete vessels structure

Conducted on a pier, dry dock or dismantling yard.

Involves removing all the gear and equipment from the ships to cutting down and recycling the ships infrastructure.

Established for the utility and the limited source of iron mine,


History of shipbreaking in BangladeshStarted its operations in the 1960s

Chittagong steel house brought and scrapped the Greek vessel Md. Alpain.

In 1974, Karnafully Metal Works Ltd, introduced commercial shipbreaking in Bangladesh.

The Industry flourished during the 1980s.11/29/2015prepared by group 3

Shipbreaking industry of BangladeshActivites concentrated in Sitakund (Bhatiary to Barwalia).

Over 1,500,000 metric tons of iron produced by scrapping 20 ships in the 19 functional ship yards.

70 companies registered as ship breakers in Chittagong. organized under the Bangladesh Ship Breakers Association, (BSBA).

Government declared firmly established industry.11/29/2015prepared by group 3

Challenges of Shipbreaking industry Environmental IssuesThreat to the terrestrial and marine environmentPersistent Organic PollutantsExposure to asbestos fibersHeavy metals exposure Oil pollutionAffect physiochemical properties of seawaterImpact on biodiversity11/29/2015prepared by group 3

Challenges of Shipbreaking industry International competitorsIndia (Alang of Vabhnagar, in the state of Gujarat)Pakistan (Gadani, Balochistan in Karachi)Turkey(Aliaga,north of Izmir Turkey)China United States United kindom

Backward linkage of steel industryMore than 60% of the steel used in Bangladesh originated from the ship breaking yards in ChittagongRecycling of steel for producing iron rods for construction hold by local business & politiciansPrice change melting scrap steel affected the ship demolition market Global recession in steel industry


Challenges of Shipbreaking industry Labor union & safetyNo formal contract between the employer and the employeeNo job security & employment relationship No entitlement to overtime, sick or annual leaveNo right to join or form a trade unionUnequipped & risky work systemNo safety precautionsUnhealthy work environmentLess than minimum wages Child & adult labor exploitations Government & RegulationsLabor Law Act 2006 has provisions on working conditions, health and safety, hours, leave and compensation for the industrys workersLack of enforcement & compliance of the lawLack Of political supportShortage & improper usage of govt.s resources


Prospects of Shipbreaking industry Production of steel The scrapping of ships are the countrys main source of steel Saves substantial amount of money in foreign exchange Reducing the need to import steel materialsGreen industry In some ways it can be considered a green industry. Almost everything on the ship and the ship itself is recycled, reused and resold.


Prospects of Shipbreaking industry Revenue A potential source of Government as a source of revenue. Generates large amounts of revenue for various government authorities through the payment of taxes. Every year the government collects almost 9000 million taka in revenue from the ship breaking industry through import duty, yards tax, and other taxes


Prospects of Shipbreaking industry Employment It is an industry that employs more than 50,000 people directly while another 0.1 million people are involved indirectly. It provides employment for some of the poorest people from the north of Bangladesh who would otherwise have no employment.

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Prospects of Shipbreaking industry Geographical position: The geographical position of the coastal areas is also important for establishment. It makes an ideal shipbreaking location for high tidal range with15-degree slope and mud free coasts that prevent grounding. These characterizes make it extremely easy for a ship, irrespective of any size, to beach on the coast11/29/2015prepared by group 3

Prospects of Shipbreaking industry Scope of Importing unclean ship:One vital reason of establishment of shipbreaking industries is that there are prevalent scope of importing unclean ship from abroad in spite of having the rule of having NOC(No objection Certificate) from Department of Environment.11/29/2015prepared by group 3

Prospects of Shipbreaking industry Demand of Iron:As the use of steel in the construction industries of Bangladesh is increasing, the importance of shipbreaking industries is also increasing as the sole source of supply of iron in the country. It helps the country from importing the steel from the abroad and thus saves the country by saving substantial amount of money in foreign exchange.11/29/2015prepared by group 3

RecommendationsGovernment should formulate and implement a national policy and principles for safe and sustainable shipbreaking A gas free certificate must be obtained before any ship is brokenA systematic and periodic inspection of the whole yard should be done before a certificate of compliance is issued by the Department of Environment (DoE) Fire stations and hospitals should be setup near to the yards, for the welfare of the workers and avoiding severe loss by any accident11/29/2015prepared by group 3

Recommendations Ship breakers or owners should provide PPE (personal protective equipment) in general and appropriate PPE in specialized cases for workers and labors.Both owner and contractors have to take the responsibility in providing compensation, treatment and security for the labors.IMO, ILO & Basel convention guidelines should be mandatory.The ship breaking activities should be carried out in a planned and hygienic way11/29/2015prepared by group 3


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Ship breaking industry of Bangladesh

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