Decision to stop shipwreck indefinitely

 Staff Reporter   |   Update: 2020-04-10 15:28:47

Decision to stop shipwreck indefinitely

The government has announced a 21 days general leave to prevent the spread of novel coronavirus disease Covid-19. At this time all kinds of commercial and industrial establishments are being closed except the much needed productive institutions. Even before the start of the general holidays, the recession takes a toll on the shipbuilding industry. As a protective measure, the imported vessels were kept in quarantine for 14 days. Again, the ministry has directed the closure of several ships.

The Bangladesh Ship Breaking and Re-Cycling Association has decided to shut down the ship indefinitely two weeks after the government announced a general holiday. The decision was made mainly because there was no need for protection and scrap in the workers. Yard owners have demanded Tk 375 crore incentive to cover the damage caused by the coroner.

According to Bangladesh Ship Breakers and Recyclers Association (BSBRA) data, there are currently sixty shipbreaking yards operating in Sitakund upazila of Chittagong. Scrub sales have come down to zero quota in the past few days due to the impact of the Corona virus. At this time, more than 14 lakh tonnes of scrap is sold in the yard, with a market value of around Tk 4,650 crore. The commercial banks of the country have financed 100 percent of the investment in this sector. And against the investment, the interest rate for the current month is about 35 million taka at 9 percent. Again the monthly salary allowance of 70 thousand workers and employees comes to Tk 35 crore. And the monthly expenditure on the establishment and other sectors of the yard is Tk 30 crore. That is, the average monthly cost of the yard is about Tk 80 crore.

Apart from this, the cost per ton is two thousand taka. That is, the total cost of the accumulated 14 lakh tonnes has been estimated at Tk 280 million. Traders at Shipbreaking Yard expressed concern over a loss of Tk 375 crore during the ongoing general holiday.

In a letter signed by President Abu Taher on behalf of the Association sent to the Ministry of Industries, the Corona Center requested the allotment of Tk. 375 million as incentive to the industry. Applicants were asked to confirm the 9 percent interest effective from April, and the interest paid for incentives to the interest rate of 5 percent.


According to sources in the National Board of Revenue, scrap ship merchants imported 233 old ships through the Chittagong Customs House in the outgoing city. The total cost of the imported vessels of the 62 companies was Tk 79 crore 39 lakh 16 thousand 767. Chittagong Customs House receives revenue of Tk.373 crore 50 lakh. Among these, SN Corporation, owned by Chittagong businessman and Eastern Bank chairman Shawkat Ali Chowdhury, was the largest importer of old ships. The company imported 21 ships to break it. The cost of these imports was Tk 1,266 crore 63 lakhs 32 thousand 886.

Traders in the sector said that in the sixth decade, the shipbuilding industry started in Sitakunda. At present, the ship-breaking industry is spread over an area of ​​20 km long. From this industry, scrap is supplied as raw material in the re-rolling mill of the country. The rods produce hundreds of steel mills and re-rolling mills from the scrap provided. Only 75% of the country's total steel demand is met by re-processing the old ship. From this sector, the government collects revenue from Tk 1,200-1,400 crore. About five lakh people have been employed in this sector. Although we have had a difficult condition due to the coronary virus for a few days Every day we have an average loss of fifty lakh to one crore rupees per yard. If this situation continues for months, we will have no choice but to go bankrupt.

In this regard, Kamal Ahmed, a member of Bangladesh Ship Breakers and Recyclers Association and owner of multiple shipyards, said earlier, the scrap cost per tonne was Rs. And the day before the closing was 39 thousand 400 taka. There have been many rates. However, the sale did not stop. In this business, I have invested Tk 500 crore. Lots of damage. Not only are we all yard owners in the same situation. What will happen, where to stop - nothing is understood. Meanwhile, the government has announced incentives. And if the policy is published, then you can understand the amount of incentive.

 She added that the association has been instructed to keep the ship cut off in our yards indefinitely, considering the country's normal situation, labor safety and other issues. Which has been in effect since Thursday.