Future of Ship-Breaking Industry in Bangladesh

Topics: Ship breaking, Chittagong, Bangladesh Pages: 11 (2480 words) Published: October 22, 2010

Course Title: Sessional of Business Research Methodology
Course Code: BA - 406

Submitted to:
Feroz Ahmed

Submitted by:
Rezwan Mahmood
ID # 060329

Business Administration Discipline
Khulna University, Khulna

Date of Submission: September 26, 2010

September 26, 2010
Feroz Ahmed
Business Administration Discipline
Khulna University, Khulna

Dear Sir,
Here is the report proposal on “Future of Ship-breaking Industry in Bangladesh”. It is a great opportunity for me to work on this area because I am really interested in this topic. I will try my level best to gather what I believe to provide the most complete information in this report.

I believe that the knowledge and experience I will gather during the survey period and by analyzing the information will immensely help in my professional life.

I will concentrate my effort to the best possible extent to make this report with the most professional and realistic feature.

Sincerely yours,

Rezwan Mahmood
ID# 060329
Bangladesh is a small and densely populated country with an area of about 147,370 square kilometers. It has a long coastal belt of about 710 km which is enriched with natural resources specially fish and other aquatic species of different varieties and has been the focal point of different economic activities. Most of these seashore areas are situated in Chittagong. Sitakund is a seashore area situated a few kilometers north of Chittagong where most of the ship-breaking yards are concentrated. Ship-breaking industry has not been developed in a day. In Bangladesh the ship-breaking industry was born out of a severe cyclone in 1960, which killed thousands of people and a Greek ship “M D Alpine” was driven ashore by the devastating tidal storm and could not be refloated and was confined to Fauzdarhat sea shore of Sitakunda Upazilla. The ship remained there for a long time. In 1964 Chittagong Steel House bought the vessel and scrapped it. It took years to scrap the vessel, but the work gave birth to the industry in Bangladesh. During the liberation War in 1971, a Pakistani ship “Al Abbas” was damaged by bombing. Later on this was salvaged by a Soviet salvation team from Chittagong port and bought to the Fauzdarhat seashore. In 1974, the Karnafully Metal Works Ltd. bought this as scrap which is considered as introduction of commercial ship-breaking in Bangladesh. Now, there are about 20 ship-breaking yards in Sitakund where thousand and hundreds of labors are working. Ship-breaking is a potential industry for Bangladesh.

Ship-breaking activities hold potential as it creates economic opportunities for thousands of labors and contribute to the economic growth of regions in need of private sector investment. Practically 100% of the ship is recycled. In this perspective, ship-breaking can be claimed to be a sound sustainable industrial activity. Ship-breaking plays an important role in the national economy for a number of reasons, such as:

• The scrapping of ships provides the country’s main source of steel and in doing so saves substantial amount of money in foreign exchange by reducing the need to import steel materials. Bangladesh needs 8 million tons of building materials per year, of which iron is a major component. The iron from recycled ships supplies iron materials in the country. This does mean however, that the owners have more power and control over the amount of steel that is sold and the price it is sold at. (Ronning, 2000)

• In some ways it can be considered a “green industry”. Almost everything on the ship and the ship itself is recycled, reused and resold. The scrapping of ships supplies raw materials to steel mills, steel plate re-manufacturing, asbestos re-manufacturing as well as providing furniture, paint, electrical equipment and lubricants, oil to the number of...
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