Old Ships Are Powering Growth but Challenges Remain

Ships that reach the end of their working lives still contain enormous economic value. Steel, machinery, and reusable components can be recovered and returned to industrial supply chains, reducing demand for newly produced raw materials. Yet the process of dismantling aging vessels has long raised concerns about worker safety, environmental contamination, and regulatory oversight. As global rules governing ship recycling become stricter, Bangladesh faces a defining moment in determining whether it can preserve its leadership in the industry while meeting international expectations for sustainability.

Dr. Khandakar Akhter Hossain, Vice Chancellor of from Bangladesh Maritime University conducted a comprehensive assessment of Bangladesh’s ship recycling sector, examining its readiness for international compliance, its competitive position against neighboring countries, and the reforms needed to secure its future. Dr. Hossain’s work was published in the peer-reviewed journal Sustainability. Drawing on extensive stakeholder interviews, industry records, policy reviews, and forecasting analyses, the study provides one of the most detailed evaluations of the sector’s current status and future prospects. Dr. Hossain work with this industry since last two decade.

Dr. Hossain’s findings show that ship recycling remains one of Bangladesh’s most significant industrial activities. The sector contributes billions of dollars to the national economy and supports hundreds of thousands of jobs. Bangladesh has become a dominant global player, handling nearly half of the world’s recycled ship tonnage. The industry also supplies most of the raw materials used by the country’s steel sector, helping support major infrastructure projects and reducing dependence on imported resources.

Despite these economic benefits, Dr. Hossain’s study identified major challenges. Only about half of the country’s recycling yards have achieved, or are in the process of achieving, certification under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Workplace accident rates remain noticeably higher than those seen elsewhere in the region, while environmental monitoring continues to reveal contamination concerns linked to heavy metals and other hazardous materials. According his study, these issues are closely tied to uneven modernization efforts and the continued use of traditional beaching methods for dismantling vessels. However, safe standard has improve significantly recently after action taken by govt authorities.

When discussing the importance of ship recycling, Dr. Hossain emphasized that “Ship recycling is a critical component of the global maritime economy, promoting environmental sustainability, circular resource recovery, and emission reduction by dismantling end-of-life (EOL) vessels to reclaim valuable materials such as steel, machinery, and equipment.” This perspective highlights why the industry remains strategically important not only for Bangladesh but also for global efforts to increase resource efficiency.

Dr. Hossain’s research also compares Bangladesh with regional competitors. India has already modernized a large number of ship recycling yards to meet international standards, while Pakistan is investing heavily in upgrades to strengthen its own position. These developments are creating new competitive pressures. The study suggests that failure to accelerate modernization could redirect future business toward countries that are perceived as safer and more environmentally compliant. Industry need govt. support both financially and guidance of good governance.

At the same time, the research documents evidence of progress. Regulatory reforms introduced in recent years have encouraged improvements in waste management, worker training, and environmental oversight. Several facilities have already obtained “green” certification, and monitoring data indicate reductions in pollution indicators in coastal areas. Dr. Hossain’s study notes signs of ecological recovery, including improved water quality and the gradual return of local biodiversity near certain recycling zones.

Looking ahead, the analysis used forecasting methods to explore different futures for the industry over the coming decades. Under a baseline scenario, recycling activity remains relatively stable. Under an optimistic scenario driven by modernization and green reforms, annual recycling volumes could increase substantially. A less favorable outcome, however, could see activity decline if compliance efforts stall and regional competitors continue advancing.

Dr. Hossain summarized the industry’s broader significance: “The ship recycling industry of Bangladesh stands at a critical crossroads, where maintaining global leadership depends on coordinated modernization, compliance with international standards, and strategic investment.” His study argues that stronger regulatory enforcement, investment in modern infrastructure, improved worker protections, and expanded environmental monitoring will be essential to achieving that goal.

Ultimately, Dr. Hossain’s research portrays an industry with substantial strengths but also urgent reform needs. Bangladesh possesses favorable geography, extensive experience, and a large workforce. Whether those advantages translate into long-term leadership will depend on how quickly the sector can complete its transition toward safer, greener, and internationally recognized recycling practices. The study concludes that sustainable growth is achievable, but only through a coordinated commitment to modernization, environmental stewardship, and global compliance.

Journal Reference

Hossain, Khandakar Akhter. “Bangladesh’s Ship Recycling Industry in the Global South: Readiness, Regional Competition, and Reform Imperatives.” Sustainability, 2025; 17:10998. DOI: https://doi.org/10.3390/su172410998

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