According to the Hong Kong International Convention 2009, all shipbreaking yards must be converted into green yards by June 2025. While there are 156 shipbreaking yards in Sitakunda, Chattogram, only 54 are operational. Of these, only four are green yards.
Converting the remaining yards to green ones in less than a year is a daunting task. Amid this situation, there seems to be a relaxation in the rules and regulations of the Hong Kong Convention.
In addition to the United Nations, the Embassy of Bangladesh in Norway is also monitoring the country's efforts to meet the deadline for converting shipbreaking yards to green yards.
Norwegian Ambassador to Bangladesh Espen Rikter-Svendsen told Amader Shomoy on Thursday, "Bangladesh is obligated to comply with the Hong Kong Convention and has 356 days left to do so.
"However, this time is not enough for infrastructure development. On the other hand, the given deadline is also fast approaching. But we have to think about everything in the light of reality. Bangladesh will get some concessions from that thought," he added.
He further expressed that Bangladesh is currently leading the ship recycling industry and has a bright future ahead.
The Norwegian envoy praised PHP Shipyard for its leading role in establishing green yards in Bangladesh. He noted that the company has worked hard to create green yards and that the benefits of its efforts are now being enjoyed across the country.
Bangladesh produces 60 per cent of its total demand for steel rods from raw materials obtained through ship recycling. The remaining demand is met by importing billets from abroad and manufacturing rods. Entrepreneurs have expressed concerns that if concessions are not given in setting up green yards, the supply of this raw material may decrease, increasing the current prices.
Bangladesh Ship Breakers and Recyclers Association (BSBRA) Vice President and Managing Director at PHP Ship Breaking and Recycling Industries Ltd Mohammed Zahirul Islam told The Business Post, "The current market price of steel rods in Bangladesh averages Tk 1 lakh per tonne."
He warned that due to the obligations of the Hong Kong Convention, if fewer ships arrive in Bangladesh, then the price of rods could potentially rise to Tk 2 lakh, which will create market instability, saying, "We have discussed with foreign banks about providing low-interest loans with terms of five to seven years, as upgrading a yard typically costs around Tk 100 crore."
Yesterday, on the second day of the two-day international conference titled “International Conference on Business and Investment Opportunity for Ship Recycling Industry in Bangladesh,” officials from various international organisations, including the United Nations, Norwegian Embassy, International Maritime Organization (IMO) and JICA visited the PHP Shipyard in Sitakunda, Chattogram.
PHP Shipyard is the first green shipyard in Bangladesh built following the Hong Kong Convention 2009. After visiting the yard on Wednesday afternoon, Norwegian envoy Espen Rikter-Svendsen and UN Resident Coordinator in Bangladesh Gwyn Lewis addressed the event.
The first day of the conference, featuring five sessions, was concluded at Hotel Radisson Blu Chattogram Bay View the day before.
Gwyn Lewis told Amader Shomoy that Bangladesh's private banks should invest in the development of the yard's infrastructure and will receive a share of the profits, as is the rule. "IMO is providing continuous technical assistance to the development of the yards and is working towards improving the living standards and ensuring the safety of the workers," she added.
