Bangladesh Becomes World’s Second-Largest IMO-Compliant Ship Recycling Nation with 17 Approved Green Yards
Bangladesh has officially emerged as the world’s second-largest compliant ship recycling nation after 17 local shipbreaking yards were added to the International Maritime Organization (IMO) global list under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
The recognition marks a major turning point for Bangladesh’s maritime and ship recycling industry, transforming the country from one of the world’s most criticised shipbreaking destinations into a rapidly growing global hub for environmentally compliant and worker-safe ship recycling operations.
According to the latest IMO-approved list, Turkey currently ranks first with 18 authorised ship recycling facilities, while Bangladesh follows closely with 17 approved yards. Japan and Norway each have seven facilities, Denmark has five, Spain has two, while Germany and Belgium each have one authorised yard. Notably, no ship recycling facilities from India or Pakistan were included in the current IMO list.
Sitakunda Strengthens Position as Global Green Ship Recycling Hub
All 17 approved facilities are located in the Sitakunda industrial belt in Chattogram, Bangladesh’s main shipbreaking region. According to an IMO document published on 15 January 2026, the facilities received formal authorisation from the Bangladesh Ship Recycling Board, with approvals remaining valid until 29 October 2030.
The authorised facilities include PHP Ship Breaking & Recycling Industries Ltd, Kabir Steel Ltd, SN Corporation Units 1–3, KR Ship Recycling Yard, Arab Ship Breaking & Recycling Ltd, HM Shipping Lines Ltd, Ferdous Steel Ship Recycling Industries, NB Steel, MAK Corporation, KR Steel Ltd, Jamuna Ship Breakers, Janata Steel Limited, Taher & Company Ltd, Bob Recyclers, and Asadi Steel Enterprise.
Shafiul Alam Talukder, Director General of the Bangladesh Ship Recycling Board, said Bangladesh was among the first countries to submit convention-compliant ship recycling facilities to the IMO.
He stated that compliant yards were issued DASR certificates under the Hong Kong Convention before the list was formally submitted to the IMO in November last year.
Talukder added that Bangladesh currently operates around 30 green ship recycling yards, including four facilities functioning under conditional DASR approval.
“We will update the compliant yard list next June. Bangladesh has a strong chance of moving to the top position globally,” he said.
Yard Owners Invest Over Tk2,000 Crore in Green Upgrades
The Hong Kong Convention officially entered into force on 26 June 2025, introducing mandatory international standards for environmentally sound and safe ship recycling practices worldwide.
Industry stakeholders say Bangladesh’s inclusion in the IMO list reflects years of heavy investment in green ship recycling infrastructure, worker protection, hazardous waste management, and environmental monitoring systems.
Shipbreaking companies have modernised their operations through the installation of impermeable flooring systems, advanced waste treatment facilities, occupational safety equipment, and environmentally sustainable recycling technologies.
Zahirul Islam Rinku, former Vice-President of the Bangladesh Ship Breakers and Recyclers Association and Managing Director of PHP Ship Breaking & Recycling Industries, said local yard owners invested more than Tk2,000 crore over the past two years to upgrade facilities and comply with global environmental standards.
“Bangladesh now has some of the world’s most environmentally friendly ship recycling facilities and technologies,” he said.
He added that Bangladesh has remained a leading force in the global ship recycling market for more than a decade and expects its position to strengthen further as additional green recycling yards become operational this year.
Industry leaders are also calling for stronger government policy support to help operators remain competitive as environmental compliance costs continue rising globally.
Bangladesh Ship Recycling Industry Faces Decline in Vessel Imports
Despite major progress in environmental compliance and international recognition, Bangladesh’s ship recycling industry has witnessed a sharp decline in vessel imports over recent years.
Industry data show that only 84 ships, weighing approximately 716,155 tonnes, were imported for recycling in 2025, one of the sector’s weakest annual performances in nearly two decades.
Between the mid-2000s and late 2010s, Bangladesh regularly imported between 150 and 200 scrap vessels annually, with total yearly import volumes often exceeding 2 million tonnes.
The sector reached a historic peak in 2021 when 280 vessels were dismantled, generating nearly 2.73 million gross tonnes amid post-pandemic shipping disruptions and elevated freight rates.
However, imports later dropped to around 1.14 million tonnes in 2022 and fell further to just over 1 million tonnes in 2023 , the lowest annual volume in more than a decade. Ship imports again slipped below 1 million tonnes in 2024.
Industry experts attribute the slowdown to weaker global freight markets, economic uncertainty, and rising operational costs linked to green transformation and environmental compliance upgrades.
IMO Recognition Expected to Boost Bangladesh’s Global Maritime Standing
Maritime industry leaders believe the IMO recognition will significantly enhance Bangladesh’s reputation in the global ship recycling market while attracting higher-value vessels from international shipowners seeking environmentally compliant recycling destinations.
Read: IMO’s SENSREC Project Launches Three-Part Video Series Highlighting Women’s Role in Ship Recycling
Bangladesh’s ship recycling industry dismantles around 150 to 200 vessels annually during stronger market cycles and generates turnover worth up to Tk30,000 crore. The sector also supplies a major share of raw materials to the domestic steel industry while supporting thousands of direct and indirect maritime jobs across the country.
