International Journal For Multidisciplinary Research

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Status Of Local Ship Recycling Industry Of Bangladesh In Contest Of Global And Way Forward

Author(s) Dr. Khandakar Akhter Hossain
Country Bangladesh
Abstract The ship recycling industry refers to the dismantling and recycling of End-of-Life (EOL) vessels and is widely recognized as a crucial and sustainable global practice. Each year, thousands of obsolete ships are recycled, making ship recycling an environmentally significant and economically viable industry. In Bangladesh, ship recycling has evolved from informal, beaching-based operations into a globally important sector. Currently, the country accounts for over 45% of global ship recycling tonnage, making it among the top ship recycling companies in the world hubs alongside India and Pakistan. What began when stranded ships are dismantled grown into a profitable industry, contributing significantly to the national economy. The industry provides employment to tens of a large number of semi-skilled laborers, particularly in poverty-prone coastal areas. It also supplies essential raw materials—such as scrap steel—to local industries. However, the sector faces challenges in terms of coastal zone management, including environmental degradation, weak law enforcement, and occupational health and safety concerns. While fully green ship recycling—aligned with stringent European standards—remains expensive, a more viable and environmentally responsible model is possible by upgrading existing beaching methods commonly used in South Asia. Despite its limitations, Bangladesh’s ship recycling industry has made notable socio-economic contributions. This research utilizes a mixed-methods approach, incorporating secondary data analysis of gross tonnage (GT) records from 2014 to 2024, alongside more than 500 structured interviews with key stakeholders—including workers, yard owners, engineers, regulatory authorities, NGOs, and international experts. Additionally, the study employs ARIMA-based scenario forecasting to project future industry trends up to 2050. Findings highlight significant shortcomings in adherence to the Hong Kong Convention (HKC), with only approximately 40% of operational ship recycling yards currently certified. Deficiencies were also noted in areas such as workplace safety, environmental protection measures, and institutional oversight. A comparative analysis reveals that India has successfully modernized around 120 HKC-compliant yards, supported by substantial governmental and donor investments, while Pakistan is actively upgrading its Gadani facilities through a large-scale financial initiative. Forecasting under ARIMA modeling presents three scenarios: a “business-as-usual” trajectory maintaining roughly 2.7 million GT annually through 2050; an optimistic scenario reaching around 5 million GT with green yard expansion; and a pessimistic outlook dropping below 2 million GT if reform efforts falter. Overall, this analytical study offers a comprehensive assessment of Bangladesh’s ship recycling sector in comparison with global industry practices.
Keywords Ship recycling, compliance, beaching, ARIMA, HKC, Ship recycling policy
Field Engineering
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-07-07
DOI https://doi.org/10.36948/ijfmr.2026.v08i04.82923
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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