Govt moves to ease shipbuilding, recycling approvals

The government has moved to simplify approval procedures and remove institutional bottlenecks to boost the competitiveness of Bangladesh’s shipbuilding and ship recycling industries.

Commerce and Industries Minister Khandakar Abdul Muktadir called for simpler procedures to attract foreign buyers, while Environment Minister Abdul Awal Mintoo urged faster establishment of a Treatment, Storage and Disposal Facility (TSDF) for ship recycling.

The directives came at a meeting of a committee reviewing laws, rules and policies governing the ship recycling industry, according to a press release.

The meeting was held at the commerce ministry, with Abdul Awal Mintoo in the chair. State Minister for Shipping Md Razib Ahsan also attended.

The meeting discussed modernising ship recycling yards, improving waste management and environmental compliance, and reducing delays in regulatory clearances.

Particular emphasis was placed on processing approvals and clearances at the local level in Chattogram to reduce delays of 45 to 60 days.

Muktadir said Bangladesh needs to benchmark its procedures against those of leading shipbuilding countries to secure more international orders and strengthen its global competitiveness.

He said a committee led by him, with the involvement of Invest Bangladesh, is working to simplify rules and procedures.

“Rules that cannot be implemented eventually lose their effectiveness,” he said, stressing the need for practical and enforceable policies.

The minister also highlighted financing constraints and outstanding loans in the shipbuilding sector, calling for coordinated measures to address existing difficulties and facilitate new investment.

Mintoo said the absence of a TSDF is discouraging European shipowners from sending vessels to Bangladesh, prompting some to opt for alternative destinations.

He stressed that proper waste treatment, storage and disposal infrastructure is essential to attract European vessels and meet international environmental requirements.

Industries Secretary Abdun Naser Khan said a working group has started developing a one-stop service platform for ship recycling activities.

Guidelines are also being prepared for green ship recycling yards in line with the Hong Kong Convention, while steps are underway to decentralise the Department of Environment’s clearance process.

Participants supported completing approvals at the local level in Chattogram to shorten processing times and improve operational efficiency.

Muktadir said Bangladesh would prioritise implementation of the Hong Kong Convention to develop an environmentally sound ship recycling industry that meets international standards.

He said the government is also working to accelerate the TSDF project while ensuring that environmental requirements do not create unnecessary barriers to the sector’s growth.