Economist
citing IHS consultancy, said that today the country accounts for around a
fifth, at its height in 2008 Bangladesh’s shipbreaking industry accounted for
half of all ships scrapped in the world.
In
these years Bangladeshi ship breakers found themselves at the forefront of
criticism as NGOs and pressure groups exposed some of the worst practices
causing environmental and human harm. These included high health risks due to
injuries, noxious fumes and the handling of asbestos. Critics said that one way
in which Bangladesh competes on cost is that poor workers are unlikely to file
claims for accidents or bad health. Another advantage is the use of child
labor.
In
2009 the Bangladesh Environmental Lawyers Association, a public advocacy group,
convinced the Supreme Court to ban all ship recycling not meeting certain
environmental standards. The court’s decision meant that by 2010 the
shipbreaking industry had come to a halt. Zahirul Islam of PHP, a local
manufacturer with a big ship breaking division said that for 14 months the
company was unable to import a single vessel for breaking.
Knock
on effects hurt the wider economy. A World Bank study estimated that ship
breaking employed over 200,000 in Bangladesh. Many of the jobs were
subsequently lost. And domestic steel prices rose sharply. Half of all
Bangladesh’s steel comes from breaking ships.
Under
pressure from the ship breakers, Mr Sheikh Hasina PM of Bangladesh’s has since
relaxed the regulations. Mr Hefzatur Rahman president of the Bangladesh Ship
Breakers Association believes this has saved the industry. From just a score of
vessels scrapped in the main part of Chittagong two years ago, about 150 were
broken up in 2011.
Greens
are not happy and want the ban re imposed. Delphine Reuter of the Shipbreaking
Platform, an NGO in Brussels, describes ship recycling as close to slavery. It
and BELA are leading the call for more regulation. That bothers international
shipping firms and ship brokers, which argue that Bangladeshi ship breakers
have cleaned up their act.
Source:
Steel Guru. 27 October 2012
http://www.steelguru.com/indian_news/Update_on_ship_breaking_sector_woes_in_Bangladesh/289253.html
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