Bangladesh Eases Ship Breaking Rules

Environmental groups are upset by the recent decision by Bangladesh's government easing restrictions on ship-breaking, saying tens of thousands of people could be exposed to toxic waste.

However, an industry association praised the move saying it will benefit the country's economy.

Following a High Court directive, the commerce ministry incorporated a condition in its Import Policy Order 2009-2012, which said an exporter of a vessel had to submit a pre-cleaning certificate from the country of origin stating the ship was cleaned before exportation.

Recently, the Bangladeshi government amended the law allowing the world's largest ship-breaking industry to no longer require the documentation from the selling nations' environmental authorities certifying vessels were free of toxic substances.

Many ship owners were reluctant to go by the policy since pre-cleaning of toxic substances involves huge cost and reduces profits. And, Bangladesh's ship-breaking sector was hit hard by the tougher environmental regulations, which were imposed in January requiring shipowners to provide certification that their ships were toxin-free before being sent to Bangladesh to be dismantled.

Many ship-breakers companies were closed waiting on the new policy of toxin-free certification. The new rules had a direct impact on domestic prices of iron, which skyrocketed nearly 20 percent, due to its dependent on the steel from recycled vessels.

Up to 1,000 ships are broken down each year, mostly in Bangladesh, India, and Pakistan and to a lesser degree China and Turkey, according to industry estimates.

Many ships are not broken up in the West, because of being filled with dangerous materials such as asbestos. About 20,000 workers are employed in 50 ship-breaking facilities in the Chittagong district. In the last two years, 38 workers died and 49 became maimed while working in shipyards.