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Created: 13 May 2026

The Shipbreaking Industry: Economy, Human Responsibility, and the Search for an Environmentally Friendly Future

By Delwar Jahid

During a visit to Bangladesh’s first Hong Kong Convention-compliant green shipyard, PHP Ship Breaking and Recycling Industries, located in Sitakunda, Chattogram, German Ambassador to Bangladesh Dr. Rüdiger Lotz described the country’s shipbreaking industry as a highly promising sector. In his observation, despite various global challenges, the industry continues to make significant contributions to Bangladesh’s economy, employment generation, and industrial development. At the same time, he emphasized the importance of worker safety, environmental protection, and compliance with international standards.

The German Ambassador’s remarks not only indicate economic potential; they also raise profound humanitarian and ethical questions before us. In my childhood, the autobiographical works and literature of Russian writer Maxim Gorky deeply moved me. Gorky’s writings portrayed the struggles, suffering, deprivation, and dreams of working-class people with remarkable humanity, a reality that remains equally relevant today. He believed that the true power of literature emerges from real human life. Therefore, giving voice to neglected and hardworking people is not merely a literary duty but also a social responsibility. The lives, risks, struggles, and dreams of workers in Bangladesh’s shipbreaking industry are also part of this broader human reality.

The shipbreaking industry, or ship recycling industry, is an important sector of the global maritime economy. By dismantling old and obsolete ships and recovering steel, machinery, and recyclable materials, the industry supports construction and manufacturing sectors worldwide. Although the practice of reusing damaged ships dates back to ancient times, modern industrial shipbreaking began in the late nineteenth century with the rise of steel-based shipbuilding industries. During the first half of the twentieth century, industrialized countries such as the United States, the United Kingdom, Germany, and Japan led the sector. After the Second World War, vast numbers of military and commercial ships were dismantled to collect steel needed for reconstruction and industrialization.

Later, during the 1960s and 1970s, due to high labor costs, strict environmental regulations, and the availability of cheap labor in developing countries, the shipbreaking industry gradually shifted from the Western world to Asia. Taiwan and South Korea initially emerged as important centers, followed later by Bangladesh, India, and Pakistan, which became major hubs of the industry. Long coastlines, low operating costs, and domestic demand for scrap steel helped these countries establish strong positions in the global ship recycling sector.

In Bangladesh, the industry began in the 1960s with the dismantling of a Greek ship in Sitakunda, Chattogram. Today, the sector supplies a significant portion of the country’s steel demand and provides employment to thousands of people. India’s Alang and Pakistan’s Gadani shipyards are also globally recognized. However, alongside its economic importance, the industry has long been criticized for environmental pollution, hazardous waste, and unsafe working conditions. Asbestos, heavy metals, and toxic chemicals present in old ships create severe risks for workers and coastal ecosystems.

In this context, the International Maritime Organization adopted the Hong Kong Convention in 2009, aiming to ensure safe and environmentally sound ship recycling. At present, South Asian countries, including Bangladesh, are working to implement international standards, adopt modern technologies, establish green shipyards, and ensure worker welfare. Mohammad Zahirul Islam, Managing Director of PHP Ship Breaking and Recycling Industries, stated that the company has already invested more than 14 million US dollars in developing modern safety systems and environmentally friendly infrastructure. This demonstrates that the industry is gradually moving toward sustainable development and humanitarian responsibility.

Globally, the increasing number of aging ships, growing demand for recycling, and technological modernization are expected to further brighten the future prospects of the shipbreaking industry. The use of automated technologies, artificial intelligence, robotics, and environmentally controlled dry-dock systems could make the industry safer and more efficient. However, alongside economic growth and industrialization, equal importance must be given to workers’ lives, health, fair wages, and environmental protection. Because the true success of any industry lies not merely in profit, but in ensuring human dignity and safety.