Govt moves to simplify procedures in ship building, recycling

The government has taken initiatives to simplify approval procedures and remove institutional bottlenecks to enhance the international competitiveness of Bangladesh’s shipbuilding and ship recycling industries.

Commerce and Industries Minister Khandakar Abdul Muktadir at a meeting on Tuesday stressed the need to simplify and expedite relevant procedures to create a business-friendly environment for foreign buyers, while Environment, Forest and Climate Change Minister Abdul Awal Mintoo directed the authorities to expedite the establishment of a Treatment, Storage and Disposal Facility (TSDF) for ship recycling waste.

He made the remarks at a meeting of a committee formed to review existing laws, rules and policies governing the ship recycling industry and make recommendations, held at the Ministry of Commerce’s conference room at the Secretariat yesterday.

Environment, Forest and Climate Change Minister Abdul Awal Mintu chaired the meeting, which was also attended by Shipping State Minister Rajib Ahsan.

The meeting discussed waste management, modernisation of ship recycling yards, compliance with environmental standards and measures to eliminate delays in obtaining approvals.

Particular emphasis was placed on enabling relevant clearances and file approvals to be processed from Chattogram.

Muktadir said Bangladesh must enhance its competitiveness with rival countries to secure shipbuilding orders from the international market.

He emphasised simplifying domestic procedures by taking the policies and standards followed by leading shipbuilding countries as benchmarks.

The minister said a special committee led by him is working to simplify rules and procedures, with the Bangladesh Investment Development Authority (BIDA) also involved in the initiative.

He stressed the need for effective and implementable policies, saying merely enacting laws would not be enough unless their proper implementation and compliance were ensured.

“Rules that cannot be implemented eventually lose their effectiveness,” he said, urging regulatory agencies to change their approach to regulation and implementation.

The minister also discussed financing difficulties and the problem of outstanding loans in the shipbuilding sector.

Mentioning limitations faced by banks, he said efforts should focus on overcoming the sector’s current difficulties rather than spending excessive time dealing with complications arising from old loans.

He said the government would hold discussions with relevant stakeholders and take coordinated measures to expand facilities for entrepreneurs and remove existing barriers.

Abdul Awal Mintoo said the absence of a TSDF is discouraging parties associated with European ships from doing business in Bangladesh, prompting them to choose alternative destinations.

As a result, the country is unable to fully realise the potential of the ship recycling industry, he said.

European ships contain various high-quality recyclable materials, the minister said, stressing the need to establish waste treatment, storage and disposal infrastructure to attract such vessels.

He directed the authorities to expedite the implementation of the TSDF to ensure environmental compliance and strengthen the sector’s international competitiveness.

Highlighting the demand for raw materials and scrap in the country’s housing and re-rolling industries, Mintoo said Bangladesh needs to strike a balance between compliance with international conventions and keeping industrial activities operational.

He urged all relevant stakeholders to work together to remove unnecessary procedural complications.
Industries Secretary Abdun Naser Khan presented the working paper at the meeting and said a working group on a one-stop service platform has begun work to facilitate ship recycling activities.

He said work is also underway to formulate guidelines for developing green ship recycling yards in line with the Hong Kong Convention and to decentralise the Department of Environment’s clearance process.

The meeting also discussed processing relevant file approvals from Chattogram to avoid delays of 45 to 60 days in obtaining clearances.

The participants stressed completing approvals at the local level to reduce processing time and facilitate the operation of the industry.

Khandakar Abdul Muktadir said Bangladesh would prioritise implementation of the Hong Kong Convention to transform the ship recycling sector into an environmentally friendly industry meeting international standards.

If there are gaps or ambiguities in implementation, he said, these could be addressed through a national certificate.

Emphasising the need to balance environmental protection with economic potential, the commerce and industries minister said environmental standards must be ensured without creating unnecessary procedural complications that could hamper the development of the promising sector.

He said the process of expediting the establishment of the TSDF is already underway.
Cabinet Secretary Nasimul Gani, Finance Secretary Dr Md Khayeruzzaman Majumder, Law and Parliamentary Affairs Secretary Liyakot Ali Molla and senior officials from relevant government agencies were present at the meeting.