Bangladesh Targets 100+ Green-Certified Ship Recycling Yards: Muktadir

UNB, Dhaka — The government has set a target to raise the number of green-certified ship recycling yards in the country to at least three digits (100+), Industries and Commerce Minister Khandakar Abdul Muktadir said on 31 August 2026 — noting that around 31 such yards currently exist while several more are undergoing green certification.

Muktadir made the remarks as chief guest at a workshop jointly organised by the Ministry of Industries and the International Maritime Organization (IMO) at a hotel in the capital's Karwan Bazar. The workshop was held to discuss a feasibility study report on setting up a Treatment, Storage and Disposal Facility (TSDF) centre under the "Bangladesh Safe and Environment-Friendly Ship Recycling Project."

🚢 Bangladesh's Position in Global Ship Recycling

Muktadir said Bangladesh remains one of the world's leading countries in ship recycling, having once surpassed even India in tonnage terms. "Although the country has slipped somewhat in recent times, it still holds a significant position in the global ship recycling industry."

• 🚢 Current green-certified yards: ~31 yards
• 🚢 Target: 100+ green-certified yards
• 🚢 Yards awaiting certification: several more in process
• 🚢 Historical position: previously surpassed India in tonnage terms

🏛 Sector's Economic Significance

Calling the sector vital to the national economy, the minister said:

• 💰 Employment: provides jobs for a large number of people
• 🧱 Steel raw material: scrap from ships serves as key raw material source for Bangladesh's steel industry
• 💰 Foreign exchange: ship recycling generates significant FX through scrap steel exports and import substitution
• 👥 Rural industrial employment: Sitakunda shipbreaking cluster employs tens of thousands

The minister stressed that the sector's growth must be ensured in a responsible and environment-friendly manner, adding that the government's goal is to make the industry more modern, safe, and sustainable through compliance with international conventions and environmental standards.

🔍 The 100+ Green Yard Target

To take the number of green-certified yards to a hundred-plus, the minister emphasised:

• 💰 Technical support for yards seeking certification
• 💰 Financial support for compliance upgrades
• ⚖️ Effective enforcement of environmental compliance requirements
• 🏛 International convention compliance — particularly Hong Kong Convention

The 100+ target represents a more than three-fold expansion of Bangladesh's current green-certified ship recycling capacity — positioning the country to capture a larger share of global end-of-life vessel traffic as the international shipping industry increasingly demands HKC-compliant recycling destinations.

⚠️ Hazardous Waste Management Challenge

Describing hazardous waste management as one of the biggest challenges in ship recycling, Muktadir said large ships generate various hazardous materials and waste during dismantling, which, if not properly managed, pose risks to:

• 🌏 Environment — soil contamination, water pollution
• 👥 Public health — worker and community exposure
• 🧱 Marine ecosystem — coastal and Bay of Bengal impacts

He said the proposed Treatment, Storage and Disposal Facility (TSDF) would play a key role in safely and scientifically:

• 🔍 Collecting hazardous waste from ship recycling
• 📦 Storing hazardous materials safely
• 🧱 Treating hazardous waste before disposal
• 🛋️ Disposing of treated waste in environmentally safe manner

🏛 TSDF Facility Scope

The proposed TSDF is expected to handle a major share of hazardous waste from the ship recycling industry, while also creating scope for managing hazardous waste from other industrial sources, including:

• 📱 E-waste — growing volume from electronic imports
• 🏛 Industrial hazardous waste — from manufacturing sectors
• 🧴 Chemical industry waste — from chemical processing
• 🚢 Ship recycling waste — asbestos, heavy metals, oils

The minister expressed hope that the facility would help align the sector with international environmental standards and enhance Bangladesh's competitiveness in the global market.

📊 Strategic Context: Maersk Investment

The 100+ green-certified yard target comes at a strategically important moment for Bangladesh's ship recycling sector — just days after AP Moller-Maersk expressed direct investment interest in Bangladesh's shipbuilding and ship recycling sectors:

• 🚢 Maersk investment interest: discussed with Commerce Minister Muktadir on 30 August 2026
• 🚢 HKC compliance: Maersk requires compliant recycling capacity for its end-of-life vessels
• 🚢 Bangladesh ship recycling position: among top 3 global destinations (with India, Pakistan)
• 🚢 Hong Kong Convention: entered into force in June 2025, requiring compliance upgrades

The Maersk investment interest, combined with the 100+ green yard target and the proposed TSDF facility, represents a coordinated strategic push to position Bangladesh as the leading global destination for HKC-compliant ship recycling — capturing both the commercial ship recycling market and the growing demand from international shipping companies for compliant recycling capacity.

🏛 Coordinated Industry Transformation

The minister said a coordinated effort involving the government, yard owners, relevant institutions, and international partners could transform the ship recycling sector into a safer, more modern, and sustainable industry. The key stakeholders include:

• 🏛 Ministry of Industries — lead ministry for ship recycling
• 🏛 Ministry of Commerce — Muktadir heads both ministries
• 🌏 International Maritime Organization (IMO) — international convention oversight
• 🏢 Yard owners — ship recycling facility operators
• 🏛 Department of Environment — environmental compliance enforcement
• 🏛 Bangladesh Ship Recycling Board — sector regulator

🌏 Strategic Implications

The 100+ green yard target carries several strategic implications:

• ✅ HKC compliance expansion: 3x growth in certified yards positions Bangladesh as global leader
• ✅ Maersk investment alignment: green capacity supports Danish shipping giant's investment interest
• ✅ Steel industry supply: scrap steel from ship recycling supports domestic steel production
• ✅ Employment expansion: 100+ yards would significantly expand sector employment
• ✅ TSDF facility: addresses hazardous waste management gap
• ✅ International standards alignment: HKC, EU Ship Recycling Regulation compliance
• ✅ Export market access: green certification enables access to EU-compliant recycling market
• ⚠️ Investment requirement: 70+ new green yards need significant capital investment
• ⚠️ Timeline uncertainty: no specific timeline for 100+ target achievement

The 100+ green-certified ship recycling yard target represents a strategically ambitious expansion plan for Bangladesh's ship recycling sector — positioning the country to capture a larger share of the global ship recycling market as international shipping companies increasingly demand HKC-compliant recycling destinations. Combined with the Maersk investment interest and the proposed TSDF facility, Bangladesh has a coordinated opportunity to transform its ship recycling sector into a modern, safe, and sustainable industry that supports both the domestic steel industry and the broader export economy through the LDC graduation transition period beginning November 2026.