Bangladesh’s Ship Industry: Recycling Steel, Building Future, and Protecting Workers Sitakunda

The coast in Chattogram accounts for a significant proportion of the world's retired ocean liners. Thousands of workers use gas torches and hand tools to tear apart the massive hulls piece by piece. For decades, outsiders had seen these beaches as nothing more than the toxic cemeteries of old boats. But Bangladesh's coastline is also the engine room for a huge domestic supply chain that drives national growth. According to the UNDP Report 2025, Bangladesh's maritime industry, which includes both ship recycling and domestic shipbuilding, is at a critical crossroads. According to the World Bank Report 2026, it is a clear example of a circular economy in a developing country, born of sheer economic necessity. But, as it works to clean up its image, meet international environmental standards, and build more ships domestically, it faces a stark reality: that progress still depends heavily on vulnerable, low-wage workers.

The Circular Ecosystem: Turning Scrap into National Infrastructure.

Bangladesh did not adopt the circular economy because of political pressure or corporate slogans; it did so because the country lacks natural mineral resources. According to the World Bank Report 2025, without domestic iron ore, the economy turned to old ocean-going steelworks, which recover and reuse between 85 and 95 per cent of the ship's total weight. This circular flow passes through three main channels: steel without mines. According to the UNDP Report 2025, ship-by-ship scrap accounts for more than 60 per cent of Bangladesh's raw steel supply. The rolling mills melt and reshape the steel plate into rebar for roads, bridges and commercial buildings. According to the World Bank Report 2026, this process costs much less and produces much less carbon emissions than importing virgin iron ore. Secondary Equipment Markets: A ship functions like a floating town, and almost nothing inside gets thrown away. The markets and warehouses around Chattogram resell heavy diesel generators, industrial pumps, miles of copper wiring, navigational tools, and marine furniture. According to the UNDP Report 2025, local factories, riverboats, and small businesses buy this equipment at a fraction of the cost of new imports. Fueling Domestic Shipbuilding: Reclaimed steel and reconditioned machinery are delivered directly to domestic shipyards in Narayanganj and Chattogram. According to the World Bank Report 2026, builders use these inputs to construct coastal cargo vessels, river ferries, and tugboats, keeping capital inside the country.

 Future Prospects: Green Yards and High-Value Shipbuilding

Looking ahead, the sector is changing under pressure from international regulations and new market opportunities.

1. The Shift to "Green Yards"

According to IMO Report 2025, since Bangladesh ratified the Hong Kong Convention of the International Maritime Organisation (IMO), shipbreakers worldwide no longer accept the breaking up of ships in open sand. According to the World Bank Report 2026, compliance requires concrete blocks with impermeable drainage systems, heavy-lifting cranes, and appropriate equipment for asbestos, lead, and PCB management. According to the UNDP Report 2025, green yards that have secured certification can win contracts from the best European and Asian shipping companies and secure high-grade scrap.

1. Export-Grade Shipbuilding

 While recycling provides raw materials, local shipyards are still showing their ability to build complex, low-emission vessels for foreign buyers. According to the World Bank Report 2026, the combination of recycled steel and modern engineering enables Bangladeshi shipyards to offer small to medium-sized coastal vessels to European and Asian buyers at competitive prices.

The Human Cost: Labour Realities and Safety Concerns

Beyond the economic figures, the everyday reality of the estimated 200 000 workers associated with the sector remains difficult. According to the ILO Report 2025, although conditions in certified green yards are improving, most workers still work in hazardous, informal conditions:

Constant physical risks of flash fires, gas explosions, and falling steel injuries are experienced, and workers regularly inhale asbestos fibres, lead dust, and toxic paint fumes without adequate masks or respirators.

According to the UNDP Report 2025, they work with subcontractors daily, which means an occupational injury often leads to immediate job loss without medical compensation or a safety net. Lack of protective equipment: according to the ILO Report 2025, basic protective equipment, such as steel-toed shoes, heavy gloves, safety belts and proper eye protection, is often lacking or not enforced at the workplace.

A Way Forward: Balancing Circularity with Human Dignity.

If Bangladesh's maritime industry is to achieve true sustainability, fixing its environmental impact must go hand in hand with protecting its workers. According to the UNDP Report 2025, real progress requires regulatory authorities to inspect shipyards for safety as rigorously as they do for oil spills and toxic waste. According to the World Bank Report 2026, the switch from manual to automatic winches and magnetic cranes can drastically reduce the number of serious injuries. At the same time, according to IMO Report 2025, the establishment of shared, centralised waste treatment facilities around Chattogram will help the yards process hazardous materials safely and securely. According to the UNDP Report 2025, ultimately, the only way to build a circular maritime industry in Bangladesh is to transform informal beach labour into a trained and protected workforce, backed by form.

 

Ananta Chakraborty, Nalanda University, Rajgir, Bihar, India. Research fellow, SACIN

Towhid Ahmed Sakib, University of Dhaka, Research fellow, SACIN