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Ship breaking industry booming
The ship breaking industry is booming this year after a two-year dry spell. Talking to the Independent, Hefazatur Rahman, president of Bangladesh Ship Breakers Association (BSBA) said the ship breaking industry is flourishing due to the present government’s policy announcement. Hefazatur Rahman said, “We are honouring the directives of the High Court regarding the scrap of ships.”
According to BSBA president, the total iron demand of the country is 40 lakh tonnes. He also disclosed that nearly 100 L/Cs will be opened for import of ships during the next five months of the year that will add more than 10 lakh tonnes of iron. BSBA president claimed that they would be able to meet nearly 75 per cent of the internal demand of iron during the current year.
Currently the country has 80 operating shipyards which is an all time high in the ship breaking industry. The industry has been operating since 1971 and has played a vital role in the construction sector of the country.
Most of the local demand for iron rod, an important construction component is met by the scrapped iron from this industry. Bangladeshi Ship breaking industry's supply of scrap iron to the steel mills alone substitutes im¬port of about 30 tonnes of billets and other raw materials.
The total savings amounts to millions of dollars. With no domestic metal ore mining, and lit¬tle raw material sources for industrialisation, the country is hungry for scrap.
Different types of industries dependent on the raw materials of the scrapped iron were set up in the country like re-rolling mills, welding workshops and furniture shops etc. The furniture, electrical goods and other articles available in the ship are also in great demand.
BSBA President said a total of 125 shipyards have been constructed over 20 miles along the Sitakunda coast from Fouzderhat to Sitakunda area and have helped establish more than 429 Re-rolling mills and 12 Steel Mills in the country.
A total of four types of old vessels are scrapped in the shipyards of Sitakunda namely Turbine Tanker (TT), Motor Vessel (MV), Steam Vessel (SV) and Fishing trawler (FT).
The ship breaking industry is fetching Tk 1,000 crores of much needed revenue income for the country annually.
It should be noted that over one lakh workers are directly engaged while over 10 lakh are indirectly dependent on this industry.
At present, the country's 125 breaking yards spend around US $400m import¬ing scrap vessels , 20 mile long Fauzdarhat ship-breaking yard is the second largest facility in the world in terms of number of vessels scrapped and the leading breaking yard for large ves¬sels, handling more than half of ships dismantled annu¬ally.
[ Business ] 2012-07-21