Govt cuts approval hurdles to boost shipbuilding, recycling

The government is moving to cut red tape, fast-track approvals and dismantle institutional bottlenecks holding back Bangladesh’s shipbuilding and ship recycling industries, as it seeks to win more international orders, attract investment and make the sectors globally competitive.

At a high-level meeting on Tuesday, the government also moved to decentralise environmental clearances, establish a long-awaited waste treatment facility and introduce one-stop services to slash lengthy approval delays that can keep ship recycling projects waiting for 45 to 60 days.

The meeting, held at the Commerce Ministry at the Secretariat, reviewed existing laws, rules and policies governing ship recycling and identified measures to modernise yards, strengthen environmental compliance and remove procedural obstacles.

Industries Secretary Abdun Naser Khan presented a working paper outlining proposed reforms. He said a working group has already begun work on a one-stop service platform to facilitate ship recycling activities.

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

Muktadir said Bangladesh must benchmark its rules and standards against those of leading shipbuilding countries if it is to compete successfully for international orders.

A special committee headed by him, with the Bangladesh Investment Development Authority (BIDA) involved, is already working to simplify the sector’s rules and procedures, he said.

“Rules that cannot be implemented eventually lose their effectiveness,” Muktadir said, calling for a fundamental change in the approach to regulation and implementation.

He stressed that simply enacting new laws would not be enough unless they were practical, enforceable and properly implemented.

The government is also looking at financing constraints confronting shipbuilders, including the burden of outstanding loans. Muktadir said efforts should focus on resolving the sector’s current difficulties rather than becoming bogged down in complications stemming from legacy loans.

He said the government would consult stakeholders and take coordinated measures to expand facilities for entrepreneurs and remove barriers to investment and business expansion.

Mintoo said the absence of a TSDF is discouraging European shipowners from sending vessels to Bangladesh, forcing them to consider alternative destinations.

“This is preventing Bangladesh from fully exploiting the enormous potential of ship recycling,” he said, stressing the urgency of developing proper infrastructure for the treatment, storage and disposal of hazardous waste generated by the industry.

European vessels contain significant quantities of high-quality recyclable materials, Mintoo said, adding that Bangladesh must develop the necessary waste-management infrastructure to attract more such ships while maintaining international environmental standards.

He directed the authorities to speed up the TSDF project to strengthen environmental compliance and enhance Bangladesh’s credibility in the international ship recycling market.

At the same time, Mintoo stressed the need to balance environmental safeguards with the economic importance of ship recycling, particularly its role in supplying raw materials and scrap to the country’s construction and re-rolling industries.

He urged agencies concerned to work together to eliminate unnecessary procedural complications without compromising environmental protection.

Work is also under way to formulate guidelines for developing green ship recycling yards in line with the Hong Kong Convention, while efforts are being made to decentralise the Department of Environment’s clearance process.

The meeting gave particular attention to processing approvals in Chattogram, where most ship recycling activities are concentrated. Officials said shifting relevant file processing and clearances to the local level could significantly reduce delays of 45 to 60 days.

Participants stressed that approvals should be completed as close to the industry as possible to cut processing time, reduce bureaucratic hurdles and improve the operating environment.

Muktadir said Bangladesh would prioritise implementation of the Hong Kong Convention to transform ship recycling into a safer, greener industry capable of meeting international standards.

Where gaps or ambiguities arise in implementation, the government could address them through a national certificate, he said.

The minister underscored the need to strike a careful balance between environmental protection and the sector’s substantial economic potential, saying international standards must be enforced without creating unnecessary regulatory barriers that undermine the industry.

He said the process of expediting establishment of the TSDF was already under way.

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 attended the meeting.