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Ship Breaking

A Background Paper

prepared for the ILO's Sectoral Activities Programme.

by Ataur Rahman and AZM Tabarak Ullah,

photos by Anis Hassanein

Dhaka, 1999

The history of ship breaking is as nearly old as ship building. As we know that a ship is relatively a large vessel capable of operating in the deep ocean. The term 'vessels' applies to vessels of over 5000 tons and that can navigate in open seas. In Bangladesh, ship breaking is popularly known as 'beaching'. Ship breaking started as a business in Bangladesh in 1972. Prior to that, 2/3 ships were scrapped during Pakistan period. It started automatically when a 20,000 D.W.T. vessel was driven ashore by the devastating tidalbore of 1965. That was the first ship scraped on the Chittagong Sea beach. At present ship-breaking is conducted by 20 Ship breaking Yards in an area of about 8 km2 starting from a point near 'Baro Awlia' under police station Sitakundu of Chittagong. All the yards are located on the beach of the bay of Bengal. There are 20 Shipbreaking yards at present in Kattoly-Kumira ship breaking areas. More than one company operate in a yard.

The number of shipbreaking enterprises is approximately seventy as shown in Annex-A - Shipbreaking, scraping and scrap handling are done simultaneously in the yards almost round the year. All the 70 companies are registered as commercial enterprises under the Companies Act, 1913. Only 8 (eight) shipbreaking yards are registered as Factories with the Department of Inspection for Factories and Establishment of the Government of Bangladesh. The over all conditions of all the ship breaking yards are almost the same. Ship breaking is done in open yards on the beach of the Bay of Bengal. They are not scientifically or technically organized and the management is also primitive. The Ship-breaking yards look like temporary arrangements to conduct some seasonal activities, though ship-breaking continues round the year. Workers are not protected by sheds and are required to work under open sky round the year in very difficult working conditions exposing themselves to various hazards.

Though the Ministry of Port and Shipping and Ministry of Industries are the two Ministries directly responsible for monitoring and supervising the ship-breaking enterprises, the following Government and non-government bodies are also involved in ship-breaking activities:

  1. Ministry of Ports and Shipping
  2. Ministry of Industries & Commerce
  3. Ministry of Labour and Employment
  4. Department of Customs
  5. Bangladesh Navy
  6. Inland Water Transport Authority
  7. Chittagong Port Authority
  8. Radio Communication and Wireless Control Authority of the Government of Bangladesh
  9. Shipping Masters Office
  10. Importers (Who import vessels for breaking)
  11. The Breaking Yard Owners and Breakers
  12. Survey Authority
  13. Survey companies
  14. Banks & financial Institutions
  15. Shipping Agents
  16. Steel Re-Rolling Mills Owners
  17. Traders

Initially, beaching permission was not necessary. The Breakers had to maintain only the import formalities and pay Customs duties and taxes. The number of ships imported for scraping during the period 1972-1982 was very limited. It was observed that the marine stores, life saving and fire fighting equipment of scraped vessels which were either obsolete, sub-standard or not in proper condition, were sold on the market and re-used in the ships in service, which may cause serious problems any time during voyage on deep sea. So, the Mercantile Marine Department issued circulars to all ship breakers restricting the sale and re-use of the above items . (Annex : B-I, B-II and B-IV )

In the Merchant Shipping Act 1884, procedures are laid down with regards to marine stores, cables, anchors and marine engine etc. Instructions are also laid down in the above Act with regards to breaking of vessels. But it was observed that ships are brought for breaking without maintaining such formalities, safety measures and legal provisions.

The life of a steel vessel is usually 20 years. Whatever conversion or modifications might have been carried out, it cannot be extended beyond 25 years. Steel used for building a vessel must sustain fatigue due to rolling and other reaction during voyage. The International Maritime Organization, therefore, has fixed 25 years as lifetime for a vessel. The ship owners find it profitable to declare a vessel unfit for service on the expiry of 20 years life span than repairing and modifying the vessel for further voyages. Starting from the second world war, steel body vessels are the main means of transport of goods internationally. Insurance coverage of cargo is a very important factor for the consignees. Insurance Companies hesitates to provide insurance coverage to Cargo booked on a ship of over 20 years of age. So, procuring cargo or business for the over aged vessels becomes difficult. At this state ships are declared, Aunfit and unserviceable@, and are sold for scraping. Parking of unserviceable vessels in harbour area is also costly and tedious.

The scraping work needs huge labour and capital; scrapping operations involve high risks and problems. So, the owners of the vessels prefer to sell out the unserviceable vessels to the countries where there is demand for scrapped steel and other items of old ships, where labour cost is relatively low and where there is less concern about hazards, toxicity and environmental pollution. Thus, ship owners who want to get rid of their unserviceable vessels contact the concerned business community of nations who look for cheaper steel and other items of the ships. These two parties transact a good business of selling and buying of unserviceable vessels at a point.

Unserviceable vessels are sold on the basis of lightweight Tonnage (LDT) of the vessel. A ship is measured mainly on the basis of its Dead Weight capacity. Dead weight of a ship is defined as 'weight of cargo plus fuel and consumable stores' while light weight of a vessel is the 'weight of the hull including, machinery and equipment'. The length, breath, depth, and displacement are also very important factors for buying and selling of an unserviceable ship. Present international rate for sell of vessel is US$120 per lightweight tonnage (LDT).

Generally 95% of a ship=s body is made of mild steel (M.S.), 2% of stainless steel and 3% of miscellaneous metals, such as brass, aluminium, copper, gun metal and other alloys which are important factors of ship breaking. Stores and other materials that may be available from a ship purchased for beaching are also considered very important. In fixing the price of a ship, consideration is given to the factor of whether it is a dead ship or a running one. Ships store ranges from foodstuff to clothing, from electrical to electronics, machinery of most type, life saving equipment, drugs, communication equipment etc.

The Ministry of Ports, Shipping and Inland Water Transport Authority and the Ministry of Industries and Commerce of the Government of the People=s Republic of Bangladesh, control the import and beaching of ships. The Department of Inspection for Factories & Establishmen of the Ministry of Labour and Employment, is responsible for according registration to the yards as factories (industries). The Department of Inspection is also responsible for ensuring occupational health & safety, safe-working conditions, working hours , leave with pay, holiday etc. of the shipbreaking enterprises. The Department of Labour is responsible for workers welfare, trade union rights and industrial relations etc.

In Shipbreaking Yards, employers employ two major categories of employees and workers. They are:

  1. regular employees and workers;
  2. casual workers supplied by the Labour Supply Contractors.

The regular employees and workers are paid monthly wages, including house rent allowance, medical allowance and conveyance allowance. This category is also paid an extra allowance for overtime work. This first category includes skilled workers like:

  1. Foremen/Supervisors
  2. Fitters (they are engaged to dismantle important parts, pipes, hardware, metal etc. of the vessel).
  3. Gas cutters (highly skilled)
  4. Crane operators
  5. Truck drivers
  6. Rhythmic callers/singers. (He goes on singing to synchronize steps of the group of casual workers while carrying heavy steel plates and pipes etc. from one place to another; their role is highly important).

The second category includes Semi skilled & unskilled workers like:

  1. Truck helpers
  2. Semi skilled gas cutters
  3. Semi skilled Fitters
  4. Lifters
  5. Loaders
  6. Wire pullers
  7. Cutter, loading & wire pulling helpers.

The second category of workers is mostly engaged through Labour Supply Contractors, and paid on a daily rate basis. Service records of all types of workers under the first category should be maintained by the employers, while records of the workers supplied by the Labour Supply Contractors are not maintained by the employers. Casual workers work under the contractors supervision. There are two types of security guards in Shipbreaking yards, such as those:

  1. Engaged on regular basis by the enterprise;
  2. Deployed by the Department of Ansar (Para-military forces), Government of Bangladesh on demand and on payment.

Shipbreaking is a regular production process but not in conformity of normal manufacturing processes. The number of workers engaged in the shipbreaking yards depends on the availability of work, size of the ship to be scraped and market value.

The number of skilled workers and security guards remain static while the number of semi- skilled and unskilled workers vary as per need. In twenty shipbreaking yards approximately 2000 regular workers (skilled-clerical-commercial and security personnel) are working on monthly wage basis; about 25,000 workers of semi and unskilled categories, work in the above-mentioned shipbreaking yards round the year, on a daily wage basis. Workers even migrate from one yard to another when a yard owner changes the labour contractors or the labour contractors change the yards. This normally happens when the demand for workers increases. Yard owners even allure skilled hands from other yards by offering better wages and service conditions. Mainly gas cutters are considered to be the most valuable workers in shipbreaking enterprises. The unskilled workers are divided into gangs of 25 including one supervisor, one singer/synchronizer and one on-looker.

When a ship is toed from the sea to the beaching ground, it is inspected, checked and made gas free. Then, fitters start opening the important parts and removable items from the vessel. These include furniture, beds, bunks, cabin materials, utensils, crockeries, removable electrical items, electronic appliances, sanitary wires, insulators, food items and cosmetics, glass wire, refrigerators and pipes and fittings, as these may be damaged during beaching operation of the vessel.

No sound technical system is used to recover valuable stores, spares, metals and other items from the ships. On arrival of ships at outer anchor of the Chittagong Port, agents of shipping companies book a toeing vessel from the Chittagong Port Authority for toeing the vessel to the shore. The Port officials before toeing the vessel verify the import documents, document on payment of duties/ taxes and certificates issued by the concerned Government authorities. One Deck Officer and one Certified Engineer, in addition to the Master of the vessel need to be present during beaching operation of a ship. Then Bangladesh Navy comes for inspection of the ships and prepares a complete inventory of communication equipment, radios, wireless sets, walkie-talkies, transceivers, engines etc.

As per law of the land, the walkie-talkies and wireless sets are subject to be handed over to the Wireless Board of the Government immediately after completion of beaching of the ships. Meanwhile, the Mercantile Marine Department conducts surveys to check the safety measures taken and also checks the marine stores and a list is prepared. The Mercantile Marine Department surveyors also verify all the documents of the vessels. First of all, valuable metal furniture, fixtures, electrical and electronic items, engines, boilers etc. are removed from the vessel. Then the ships if filled up with water up to deck level and later the water is discharged through the sea corks or through other means to clean the ships and make the vessels ready for scrapping. This cleaning process is not sufficient to make the vessel free from dangerous gases, fumes, chemicals and contaminants. The water so discharged, contain a mixture of hazardous chemicals and contaminants. Thus, sea-water is contaminated which causes harmful effects to sea lives and also pollutes the environment. Risks of the asbestosis, chemicals, hydrocarbons, toxic items and radiation remain there all the time.

During the second phase, cutters and their helpers start cutting the vessel into parts. The breaking operation is undertaken based on the structural design of the vessel. The larger parts are dragged to the dry part of the shore with the help of motorized pulley. A large number of workers are also engaged in this operation. Though the motor does the main job, workers need to help the pulley driver in dragging the part to the dry area of the shore.

Another group of cutters, helpers and workers start cutting the dragged parts of the ship into truckable parts as per order of the purchasers. Heavy equipment like boilers, motors, capstan stocking etc. are carried to stack yards by moving crane.

The unskilled workers carry metal plates, metal bars or pipes on their heads or shoulders, start walking in synchronized steps with the rhythm of the singers call up to a definite destination and then pile up metal plates in stacks yards or load them on trucks. The supervisors control the group of workers, the on-looker guides them and help them in pilling up the heavy metal plates in stack or loading on truck. Though these workers are called unskilled, it was observed that a considerable skill is required to perform these tasks.

Most of the large shipbreaking yards provide accommodation to the workers. Generally, skilled workers, supervisors and office staff live in rented houses near the yards. A large percentage of them live with their families. At least 50% of the semi-skilled and unskilled workers live in the labour sheds built by the owners. The accommodation provided by the owners are not suitable and hygenic, but it is safer for the workers to be accommodated in protected areas within the yards and this is also advantageous for the employers. A statement showing the name of the shipbreaking enterprises with number of skilled, semi-skilled and unskilled workers is attached herewith as (Annex:C). The yards are located away from the city area, so workers get drinking water from the tubewells and as tubewells are sunk in each shipbreaking yard. Bangladesh Factory Act 1965 provides that there should be sufficient supply of pure drinking water in a factory employing more than 250 workers; according to the above Act the employer must ensure supply of pure drinking water.

Wages and pay of the employees of Shipbreaking Yards as well as their working hours and overtime are not in full conformity with the law of the land. The employees, such as clerks, supervisors, foremen, master cutters are paid monthly wages ranging from Taka 3000 to 5000 (US$60-100), inclusive house rent, medical allowance etc. Many of the skilled cutters, unskilled workers and general labourers are engaged on 'no work no pay' basis. They receive 70 to 80 Taka a day for every 8 hours of work. For overtime work, these workers receive extra wages on single rate basis, while the law prescribes double the rate of the normal wages for extra hours. Similarly, workers who work on weekly holidays are not entitled to any holiday pay or any benefits in lieu. Breaks for taking meals are allowed.

Since workers do not benefit from mandatory holidays as per law, they cannot expect any employer to provide any welfare facilities for them. The workers are not provided with proper washing facilities and canteen facilities in the yards, so workers are compelled to go to the nearby shops and tea stalls. Availability of messe or rest room is out of question.

The Bangladeshi Traders and ship breakers purchase dead/unserviceable vessels or ships in running conditions from different parties at different points and bring those to Bangladesh for beaching. The ship breakers purchase the vessels of their choice. Nationality of the owners of the vessels or the country of origin of the ships is not a factor of consideration but they take into account the following points during purchase of the ships:

  1. Light weight tonnage of the vessels (LDT).
  2. Cost of the voyage to the beaching site of the ship.
  3. Probable toeing cost in the case of dead vessel.
  4. General stores that may be available.
  5. Miscellaneous materials that may be available.
  6. Position of the re-useable marine stores.

From various sources, such as the Ship Breakers Association, shipbreaking enterprises and the Govt. agencies, it is gathered that generally the following three types of vessels are demolished in the Chittagong Ship Breaking Yards.

  1. General cargo vessels.
  2. Tankers.
  3. Bulk carriers.

Bangladesh breakers prefer to demolish the above types of vessels for reasons, such as availability of profitable items, safe and easy breaking operation and safe journey of the vessels to beaching site. The main sources for purchase of unserviceable vessels are the former USSR, Bulgaria, Romania, Greece, Italy, Turkey, Japan, Singapore, South Korea, etc. Toeing of a dead ship for scrapping is costly, so the Bangladeshi ship Breakers and their agents generally prefer to buy ships on voyage or ships stranded at a port near to Chittagong, i.e., .located at any port of India, Sri Lanka, Myanmar, Thailand or Singapore.

Hazards Involved

In Bangladesh, shipbreaking is carried out in an open space. As a matter of fact, provisions of the Factories Act and occupational safety measures with regard to doors, windows, stairs etc. of a factory premises are not taken into consideration. No young person or women are engaged in ship breaking yards. Limited amount of electricity is used for shipbreaking activities. Testing system of cranes, lifting machinery and motorized pulley is hardly done. The yards re-use ropes and chains recovered from the broken ships without testing and examining their strength. There is no marking system of loading capacity of the chains of cranes and other lifting machineries. Gas cutters and their helpers are cutting the steel plates almost round the clock without protection of eyes, so their eyes are always vulnerable to welding effects. They do not wear any uniform and never use handgloves and boots. The unskilled workers carry truckable pieces of iron sheets on their shoulders and they do not know the weight of the sheets they carry and the employers are also not aware of the legal limit of weights carried by workers. Usually, these workers carry weights far above the limit prescribed in the Factories Act and Factories Rules.

Ships are not properly cleaned before beaching. Generally, an eyewash test is carried out to certify that a ship is free from dangerous chemical and fumes. Workers enter into such areas without taking any precautionary measure or without wearing masks or aprons. Workers are not aware of hazards to which they are likely to be exposed. Consequently, workers suffer from suffocative injury and lung problems which causes temporary loss of working capacity. The hatches and pockets of vessel may contain explosive or inflammable gases. The cutters, if they understand from their experience, drill small holes in order to release gases or fumes. These types of crude attempts very often causes severe explosions. Shipbreaking is a hazardous occupation and entails life risk due to accident and fatal occupational diseases, as the employers do not provide any proper protective and precautionary gears. It is found that the beaches where shipbreaking is undertaken are full of chemicals and toxic substances, small pieces of pointed and sharp iron splinters pasted on the surface of the beach causing injuries; the workers usually work bare footed and without masks. Occupational health and safety is not important to the employers, they hardly maintain a First-aid Box. Most of the workers are illiterate, very poor and are not conscious about their health, safety and the dangerous effects of the poisonous chemicals. Accidents are not reported or recorded. If any worker is affected by occupational diseases, he is no more employed by any of the employers. The employers through adoption of various unfair practices usually conceal information when any worker dies due to occupational accidents. In most cases, families of the victims are not informed, as contractors do not use proper names and addresses of the workers and there is no monitoring or inspection by the Inspection Department and the Labour Department.

A number of fatal incidents occurred in the past due to explosions and fall of heavy metal plates from the upper part of the ships. As ships are not properly inspected prior to beaching, inflammable substance or gas pockets still remain there. As a result, during cutting operation of the ships, fire breaks out accompanied by explosions. Minor fire incidents happen off and on and workers control the fire by spraying water and sand. Two major accidents were reported in 1998 in which a supervisory staff was killed due to sudden fall of a heavy steel sheet from the upper deck of a vessel and in another incident, a gas cutter died due to an explosion. (A list of accident is enclosed herewith as (Annex: E).

The Ministry of Labour and Employment and its subordinate officers are responsible for the enforcement of labour laws and ensure welfare of the workers. The Department of Inspection is responsible for ensuring the implementation of the Provisions of the Factories Act 1965 and the rules made thereunder. The Department of Labour is responsible for the implementation of the provisions of the Labour Law relating to labour welfare, trade unionism and Industrial relations. While the other aspect such as OSH, working conditions are the subjects of the Inspection Department. The level of enforcement of the Factories Act and Labour Laws in the above enterprises is not at all satisfactory. During the last three years, Inspectors of the Inspection Department conducted only 16 inspection visits, which were as follows:

Inspection Visits undertaken by the Inspection Department

Sl.No.

Name of the Enterprises

Date of Inspection

Court case, if any

Remarks

1
Z N Enterprise, Jahanabad
6.2.1995
---
---
2 Sigma Ship Breakers Ltd., Jahanabad
6.2.1995
--- ---
3 Kabir Steel Ltd., Jahanabad
6.2.1995
--- ---
4 Ambia Ship Breakers Pvt.,
Jahanabad
6.2.1995
--- ---
5

Brothers Associates, Madambibirhat

6.2.1995
--- ---
6

Bismillah Ship Breaking, Bhatiary

6.2.1995
--- ---
7 S S Steel Ltd.
29.5.1996
472/96
---
8
Seasons Steel Ltd., Jahanabad
20.5.1996
478/96
---
9
Ocean Steel, Jahanabad
20.5.1996
477/96
---
10 Padma Ship Breaking Ltd. 20.5.1996
481/96
---
11 Karnaphuly Shipbreakers, Jahanabad 20.5.1996
482/96
---
12 M.R. Enterpsise 20.5.1996
479/96
---
13

East Wind Shipping Ltd., Madambibirhat

20.5.1996
471/96
---
14 Paragon Steel Ltd., Bhatiary 20.5.1996
475/96
---
15 Moon Steel, Bhatiary 20.5.1996
473/96
---
16 S. Trading Corporation 20.5.1996
474/96
---

The labour inspectors detected the following major violations of the Factories Act in shipbreaking Enterprises during their visits:

-No proper fire fighting equipment are maintained, if there is a fire extinguisher, no one knows how to operate it in cases of emergency.

-Safety belts are not provided. There is no safe stair ladder for climbing up and getting down from a vessel.

-As per law, adult workers are allowed to carry a maximum weight of 65 pounds, whereas in the shipbreaking yards, workers are required to carry a load of even double the weight of the legal standard.

-Safety glass for protection of eyes, keds for protection of legs and gloves for protection of hands are either not provided or the workers do not use these.

-No weekly holiday with pay is granted to the workers.

-Approval of working hours from the Inspection Department is a legal requirement, but Employers do not apply the law. Workers have to work beyond eight hours without overtime allowance as per law.

-No records of workers are maintained. No token or card is given to the workers.

-Workers on regular pay are entitled to enjoy paid casual leave, earned leave, sick leave and holidays as per law but nothing is provided to the workers supplied by the contractors.

-There are no rest rooms, proper toilets, supply of drinking water and arrangements to take meals at the work place.

Inspectors reported the above violations of the Provisions of the Factories Act to the concerned management in writing with suggestion for remedies but they did not pay any attention to it. As a result, the inspectors had to institute criminal cases in the courts. Courts penalized management but violations did not stop. (Labour relations are very week, and trade unions are absent in the shipbreaking yards).

Labour contractors who supply daily rated casual workers and paid on 'no work no pay' basis are not entitled to form trade unions. The main hurdle is the employers who are against the trade unions or associations of any kind. They threaten workers of cancelling the contract of the contractors and closing down the yards. Most of the workers are illiterate and non-local which is another drawback. Labour supply contractors also frequently change yards and change workers. Fake name and addresses are used for enrollment of the workers to protect the interests of the management. The shipbreaking enterprises and the scrap users are well organized under the:

23.'Bangladesh Ship Breakers Association'

'Bangladesh Scrap Buyers Association'

The above Associations work like Syndicates and are very strong and influential. They even threaten the Government Authorities on different issues. They do not pay taxes due to the Government and do not enforce the laws concerning employment, safety, public health, toxicity, environmental pollution and hazards.

No trade unions and collective bargaining agents exist in the Ship-Breaking Yards. There are disputes but they are never reported or brought to the attention of the Labour Department. Most of the ship-breaking yards pay workers wages through their contractors, this very often causes displeasure among the workers and there were number of disputes regarding non-payment of wages or payment of wages less than the wages agreed upon to the individual workers by the labour supply contractors. There is rivalry between loader and the casual workers which sometimes leads to agitation and work stoppage by the casual workers. In such cases, the management as the principal employers settle disputes in order to keep their work uninterrupted. The Yard Managements also handle a large number of disputes which arises due to non-

payment or less than the agreed wages. The Syndicate of Employers and of the ship yards control everything in such a way that the inspecting officers of different Government Agencies cannot interfere in their activities. Upto now, no stoppage of work due to industrial unrest was referred to the conciliation authorities. The Managements handle the disputes in their own way. Sometimes, workers and the labour supply contractors are rejected together by the shipbreaking enterprises. The same labour supply contractor with the same workers is again engaged by another management.

The employers are united and their Association is very strong. In the past, some killings had happened in the shipbreaking yards for challenging the Syndicate on various issues but no one was able to prove the killings.

Bangladesh does not have iron, as such, has to depend on the scrapped iron to feed the rolling mills and steel factories. Other items of the ship such as engines, generators, boilers, electrical items, furniture, plumbing items, refrigerators, air-conditioners, etc. have a good market in Bangladesh. The main users of scrapped irons are the local streel re-rolling mills producing

MS rods, MS bars, angles and steel sheets for domestic market. The engines and generators are used by the garment manufacturing factories, boilers are used mainly in rice mills, garments washing plants, knitting plants and other industries. There is a great demand for the wooden planks/bars and furniture which are sold on the markets located in Chittagong and Dhaka.

Workers= rights in the ship-breaking industries should be established and Government should take immediate steps to streamline the shipbreaking industries. The shipbreaking yards are at present beyond control of any Government authority.

 

Annex - A

List of Ship-breaking Enterprises
  1. M/s. R. M. Shipbreaking
    Industries Ltd, Sitakunda
    Chittagong
  2. R. M. Shipscrappers Ltd
    Industries Ltd., Sitakunda
    Chittagong
  3. R. M. Engineering Works Ltd
    Industries Ltd., Sitakunda
    Chittagong
  4. Ambia Shipbreaking
    Bhatiary, Chittagong
  5. Ocean Steel Ltd
    Bhatiary, Chittagong
  6. Z. N. Enterprise, Sitalpur
    Sitakunda, Chittagong
  7. Namreen Enterprise, Lalbagh
    Sitakunda, Chittagong
  8. Bangladesh Shipbreaking
    Sitakunda, Chittagong
  9. Taher & Company Ltd., Sitalpur
    Sitakunda, Chittagong
  10. Golden Iron Works Ltd.,
    Sitakunda, Chittagong
  11. Kabir Steel Ltd., Bhatiary
    Sitakunda, Chittagong
  12. Khaza Ajmir Steel Ltd
    Sitakunda, Chittagong
  13. Kabir Oxygen Ltd
    Chittagong
  14. Pafific Steel Industries
    Bhatiary, Sitakunda, Chittagong
  15. Janata Steel Industries
    Bhatiary, Sitakunda, Chittagong
  16. Kabir Shipbreaking Ltd.,
    Bhatiary, Sitakunda, Chittagong
  17. Brother Associates
    Bhatiary, Sitakunda, Chittagong
  18. Aajmain Ispat Association
    Bhatiary, Sitakunda, Chittagong
  19. N. Z. Shipbreaking Industries
    Bhatiary, Sitakunda, Chittagong
  20. General Iron & Steel Co., Ctg. Ltd
    Bhatiary, Sitakunda, Chittagong
  21. Rahamania Transport & Trading Ltd
    Bhatiary, Sitakunda, Chittagong
  22. Super Steel Ltd., Sitalpur
    Sitakunda, Chittagong
  23. K. Z. Enterprise Sitalpur
    Sitakunda, Chittagong
  24. Habib Steel Ltd., Madambibir Hat
    Chittagong
  25. Karnafully Shipbreaking Industries Ltd
    Sitakunda, Chittagong
  26. Shah Amanat Shipbreakers, Madambibir Hat
    Chittagong
  27. Diamond Steel Products Co. (PVT) Ltd
    Chittagong
  28. Rahmim Steel Co (Pvt.) Ltd
    Bhatiary, Chittagong
  29. S. Trading Corporation
    Madembibir Hat, Sitakunda
    Chittagong
  30. Sime Steel
    Madambibir Hat, Sitakunda
    Chittagong
  31. Fahad Steel Industry
    Madambibir Hat, Sitakunda
    Chittagong
  32. Ahmed Mustaba Steel Industry
    Madambibir Hat, Sitakunda
    Chittagong
  33. Jiri Mustaba Steel Industry
    Madambibir Hat, Sitakunda
    Chittagong
  34. Rahman Shipbreakers Ltd
    Bhatiary, Chittagong
  35. M. M. Shipbreakers
    Bhatiary, Chittagong
  36. Mannan Steel Ltd
    Bhatiary, Chittagong
  37. East Quine Shipping Ltd
    Madambibir Hat, Sitakunda
    Chittagong
  38. H. Steel Sitalpur
    Sitakunda, Chittagong
  39. Royal Steel Ltd, Sitalpur
    Sitakunda, Chittagong
  40. Crystel Shipping Co. Ltd Sitalpur
    Sitakunda, Chittagong
  41. Bismillah Shipbreaking Industries Ltd
    Sitalpur, Sitakunda, Chittagong
  42. J. L. Enterprise,
    Bhatiary, Chittagong
  43. Golden Shipbreaking Industries
    Bhatiary, Chittagong
  44. Diamond Shipbreaking Industries
    Bhatiary, Chittagong
  45. Paninesula Traders Ltd
    Bhatiary, Chittagong
  46. Arafin Enterprise
    Bhatiary, Chittagong
  47. Evergreen Shipbreaking Industries Ltd
    Bhatiary, Chittagong
  48. Aziz Steel Corporation Ltd
    Bhatiary, Chittagong
  49. Seasons Steel Ltd
    Bhatiary, Chittagong
  50. Majid Steel Corporation Ltd
    Bhatiary, Chittagong
  51. Allaher Den Traders
    Bhatiary, Chittagong
  52. M. Rahaman Steel Ltd
    Bhatiary, Chittagong
  53. Ratanpur Steel Ltd
    Bhatiary, Chittagong
  54. Moon Steel Ltd
    Bhatiary, Chittagong
  55. S.Y.S. Steel Ltd
    Bhatiary, Chittagong
  56. Padma Shipbreaking Ltd
    Bhatiary, Chittagong
  57. Shahin Enterprise
    Bhatiary, Chittagong
  58. Pragaoan Steel Ltd
    Bhatiary, Chittagong
  59. Capital Shipbreakers
    Bhatiary, Chittagong
  60. Hassan Enterprise
    Bhatiary, Chittagong
  61. K.S.M. Steel Re-rolling Mills Ltd
    Bhatiary, Chittagong
  62. Shaiful Islam & Brothers
    Bhatiary, Chittagong
  63. Mubarok Re-rolling Mills Ltd
    Bhatiary, Chittagong
  64. Khelil Steel
    Bhatiary, Chittagong
  65. Amenat Shah Shipbreaking Industry
    Bhatiary, Chittagong
  66. Haramine Shipbreakers
    Bhatiary, Chittagong
  67. Syedpur Steels Ltd
    Bhatiary, Chittagong
  68. N. R. Enterprise
    Bhatiary, Chittagong

Annex - B1

 

GOVERNMENT OF THE PEOPLE'S

REPUBLIC OF BANGLADESH

MERCANTILE MARINE DEPARTMENT

 

No. M. 12/7 Dated, Chittagong, the July 1982

 

CIRCULAR

To

All Shipping Cos/Agents

 

It has been observed that the Marine Stores including Life Saving & Fire Fighting Appliances from Scrapped Vessels are finding its way to vessels in service. These equipments either obsolete, sub-standard or unserviceable use of which on board ships is an offence under the law. Merchant Shipping Act 1894 Section 538 to 543 dealing with Marine Stores Dealers laid down certain procedures with regard to Marine Stores including Cables, Anchors etc. and Section 129(C) of Instruction to Registrar of ships deals with vessels broken up. It is further observed that ships laying in hazardous condition at the beach fro breaking up may sometime pose danger to navivation.

In view of the above, it has been decided that benceforth no ships shall be permitted to beach for breaking up without obtaining prior permission from this Department similarly no person or Firm shall break up a ship or deal with Marine Stores without obtaining proper licence from Mercantile Marine Department and observe formalities as laid down in the Merchant Shipping Act, Offenders will be prosecuted as per law.

 

Sd/- Principal Officer

Mercantile Marine Department

Chittagong

Phones; 504140/501902

 

Annex-B2

 

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH

MERCANTILE MARINE DEPARTMENT

No. M.12/8/ Dated, Chittagong, the 9th March 1983

 

C I R C U L A R

 

In order to streamline the requirements for issuance of Beaching permission for a Vessel intended to be scrapped so that no permission regarding ownership, etc. exists and to ensure safety of navigation, the following procedure will have to be followed for obtaining beaching permission for breaking up of a Vessel:-

  1. The application for beaching, permission will have to be made by a licenced Shipping Agent appointed by the Owner/Buyer of the Vessel.
  2. Following documents are to be submitted alongwith the application:
    1. Copy of Memorandum of Agreement.
    2. Copy of Delection Certificate.
    3. Copy of all Safety Certificates.
    4. Copy of Custom Entry (Inward)
    5. Copy of permission letter from Director General of Industry
    6. Copy of permission letter from the C C I & E
  3. The beaching ground is to be clearly and accurately shown on BIWTA Chart No. BD HATIA 82 100 01 and Certified by a Surveyor approved by this Department
  4. Memo and No. of Certificate of competency of the Master of the Vessel under whose commend the beaching would be performed.
  5. List of the Officers and Crew who will be on board during the beaching operation.
  6. One Certificated official and Certificated Engineer beside the master to be provided at the time of beaching.

Principal Officer

Mercantile Marine Department

Chittagong

Copy to:

  1. The Director General, Department of Shipping, Commissioner's Bldg. Segunbagicha, Dhaka
  2. The Sub-Zonal Martial Law Administrator, CPA. Rest House, Chittagong
  3. The Chairman, Chittagong Port Authority, Chittagong
  4. The Collector of Customs, Custom House, Chittagong
  5. The Deputy Commissioner, Chittagong
  6. The Chairman, Steamers Agents Group, Chittagong

Principal Officer

Mercantile Marine Department

Chittagong

 

Annex - B3

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH

MERCANTILE MARINE DEPARTMENT

No. M 12/9 Dated, Chittagong, the 24th Oct. 1985

REQUIREMENTS FOR ENLISTMENT OF DISMENTLING/

CUTTING CONTRACTOR FOR SCRAP VESSEL

The following requirements are to be fulfilled for enlistment to this Department as Discentling/Cutting Contractors for Scrap Vessels.

  1. The Contractors should have atleast 3 (three) persons at the Supervisory capacity who should have minimum 2 (two) years experience in ship cutting. One of the supervisors out of the three should have Diploma in Mechanical/Electrical Metallurgical Engineering from a recognised Polytechnics.
  2. The Supervisors must possess a certificate of attendance of a short training course conducted by the Fire Brigade.
  3. The Contracing firm should possess the following minimum equipments:-
    1. Helmets, Hand Gloves, Goggles, Gumboots for each of their workers.
    2. Approved type of Fire Extinguishers.
    3. Sand Boxes, First Aid Outfit, Fire Buckets etc.
    4. Robertson's Stretcher
    5. Breathing apparatus
    6. Firemen's out fit.
    7. Explosion Meter
    8. A portable fire pump with hoses and combined Jet/Spray Nozzles.
    9. Safety belt
    10. Two Portable Blower
    11. Two Safety Lamps.
  4. An inspection report of the Contractors' Yard will be required, which will be done by the Mercantile Marine Department's Surveyor.

After being satisfied with the above, the Department may consider to enrol the Firm for Cutting of Scrap Vessels.

Sd/- Capt. M. Zakaria

Principal Officer

Mercantile Marine Department

Chittagong

To:

  1. M/s. Unimarine Shipping Line, Ctg.
  2. M/s. Khalil & Sons Ltd. Ctg.
  3. Karnafully Engg. Works, Steel House, Ctg.
  4. M/s. Karnafuli Metal Works Ltd., Ctg.
  5. M/s Saleh Zarina Ltd. Ctg.
  6. M/s Ocean Trade Ltd., Ctg.
  7. M/s. Amity Ship Cutter, Halishahar, Ctg.
  8. .................................

Sd/- Illigible

2.11.85

 

Annex - B4

Copy

GOVERNMENT OF THE PEOPLES REPUBLIC OF BANGLADESH

MERCANTILE MARINE DEPARTMENT

CHITTAGONG

No. M. 12/8 Dated, Chittagong the 29th May 1983

CIRCULAR

In supersession of Circular No. M. 12/8 dated 9.3.83 the following will be the procedure to be following before issuance of beaching permission by the Principal Officer, Mercantile Marine Department:-

  1. The application for beaching permission will have to be made by a Licenced Shipping Agent appointed by the Owner/buyer of the vessel.
  2. The vessel is to be inspected by Mercantile Marine Department Surveyor in respect of Safety Equipment and Radio/Wireless equipment:-
    1. All safety equipment found in order will be listed and stamped by the Surveyor and those found not suitable for use are to be marked by a cut-in stamp or the equipment are to be destroyed.
    2. A complete list of all Radio, Wireless equipment including VHF, Walkie Talkie Transceivers is to be prepared. The Wireless equipment are to be dismentled (without damage) before beaching and are to be handed over to the Wireless Board (other than the Walkie Talkie sets which may be used during the beaching operational). After the beaching the Walkie Talkie sets are also to be handed over to the wireless Board.
  3. Following documents are to be submitted alongwith the application:-
    1. Copy of Memorandum of Agreement
    2. Copy of Deletion Certificate or in lieu an undertaking of Tk. 1/- (One) Lac for submission of the Deletion Certificate within one month.
    3. Copy of all Safety Certificates
    4. Copy of Custom entry (Inward)
    5. Copy of permission letter from Director General of Industry
    6. Copy of permission letter from the C C I & E
  4. The beaching ground is to be clearly and accurately shown on BIWTA Chart Np. BD.HATIA 82 100 01 and certified by a Surveyor approved by this Department.
  5. Name and No. of Certificate of competency of the Master of the Vessel under whose command the beaching would be performed.
  6. List of the Officers and Crew who will be on board during the beaching operation.
  7. Tk. 1000/- (Taka One thousand) only to be deposited in cash to this Department as fees for beaching permission to each vessel.

Sd/- CAPT. S.M.A. ISLAM

Principal Officer

Mercantile Marine Department

Chittagong

cc:

  1. The Sub-Zonal Martial Law Administrator, CPA Rest, House, Chittagong
  2. The Director General, Department of Shipping, Dhaka
  3. The Director General, Department of Industries, Dhaka
  4. The Controller of Imports & Exports, Chittagong
  5. The Secretary, Wireless Board, T&T Bldg. Shere Bangla Nagar, Dhaka
  6. The Chairman, Chittagong Port Authority, Chittagong
  7. The Collector of Customs, Custom House, Chittagong
  8. The Deputy Commissioner, Court Building, Chittagong
  9. The Chairman, Steamers Agents Group, Chittagong

Sd/- Capt. S.M.A. Islam

Principal Officer

Mercantile Marine Department

Chittagong

Annex - C

Statement on the Shipbreakers Enterprises

showing manpower employed and wagespaid to the workers

 

 

Sl.No.

Name & Address of Shipbreaking Industry

Lincence/

Reg. No.

Number of workers

Total

Average daily wages

Remarks

Skilled

Unskilled

Regular

Casual

Regular

Casual

Skilled

Unskilled

1.

M/s. R.M.Shipbreaking Industries Ltd., Sitakunda, Chittagong

 

 

 

 

80

 

 

600

680

120

80

 

The enterprises at Sl.1-3 are located in the same premises

2.

R.M. Shipscrappers Ltd. Sitakunda, Chittagong

 

 

 

 

60

 

 

720

780

120

80

3.

R.M.Engineering Works Ltd.,. Sitakunda, Chittagong

 

 

 

 

50

 

 

400

450

120

80

4.

Ambia Shipbreakers Ltd., Bhatiary, Chittagong

 

 

 

 

100

 

 

600

700

125

80

The enterprises at Sl. 4-5 are located in the same premises

5.

Ocean Steel Ltd., Bhatiary, Chittagong

 

 

 

 

50

 

 

260

310

125

80

6.

Z.N. Enterprises, Sitalpur,Sitakunda, Chittagong

2681/Ctg.

 

 

100

 

 

600

700

125

80

The enterprises at Sl. No. 6-8 are located in the same premises

7.

Namroon Enterprise, Lalbagh, Sitakunda

Chittagong

 

 

 

 

70

 

 

560

630

125

80

8.

Bangladesh Shipbreaking, Lalbagh, Sitakunda, Chittagong

 

 

 

 

80

 

 

599

580

120

80

9.

Taher & Company Ltd., Sitalpur, Sitakunda, Chittagong

2005/Ctg.

 

 

100

 

 

700

800

125

80

The enterprises at Sl. No. 9-10 are located in the same premises

10.

Golden Iron works Ltd., Sitalpur, Sitakunda, Chittagong

 

 

 

 

60

 

 

700

760

125

80

11.

Kabir Steel Ltd., Bhatiary, Sitakunda, Chittagong

2006/Ctg.

 

 

100

 

 

520

620

125

80

The Enterprises at Sl.No.11-16 are located in the same premises

12.

Haje Ajmir Steel Ltd., Bhatiary, Sitakunda, Chittagong

 

 

 

 

40

 

 

360

400

125

80

13.

Zabir Oxygen Ltd., Bhatiary, Sitakukda, Chittagong

 

 

 

 

40

 

 

60

100

150

100

 

14.

Pacific Steel Industries

Bhatiary, Sitakunda, Chittagong

 

 

 

 

60

 

 

250

310

125

100

 

The enterprises at Sl.1-3 are located in the same premises

15.

Janata Steel Industries, Bhatiary, Sitakunda, Chittagong

 

 

 

 

50

 

 

250

300

125

80

16.

Kabir Shipbreaking Ltd., Bhatiary, Sitakunda, Chittagong

 

 

 

 

80

 

 

340

420

125

80

17.

Brother Associates, Bhatiary, Sitakunda, Chittagong

 

 

 

 

60

 

 

500

560

125

80

The enterprises at Sl. 17-19 are located in the same premises

18.

Ajmain Ispat Associated, Bhatiary, Sitakunda, Chittagong

 

 

 

 

40

 

 

400

440

125

80

19.

A.B. Shipbreaking Industries, Bhatiary, Sitakunda, Chittagong

 

 

 

 

50

 

 

550

600

125

90

20.

General Iron & Steel Co. Ctg. Ltd

Bhatiary, Chittagong

 

 

 

 

60

 

 

550

610

125

80

The enterprises at Sl. No. 20-21 are located in the same premises

21.

Rahamania Transport & Trading Ltd.,

Bhatiary, Chittagong

 

 

 

 

40

 

 

380

420

140

80

22.

Super Steel Ltd., Sitalpur, Sitakunda, Chittagong

 

 

 

 

60

 

 

600

660

125

80

The enterprises at Sl. 22-23 are located in the same premises

23.

K. Z. Enterprises, Sitalpur, Sitakunda, Chittagong

 

 

 

 

60

 

 

560

620

120

80

24.

Habib Steel Ltd., Madambibir Hat, Sitakunda, Chittagong

 

 

 

 

80

 

 

600

680

125

80

The enterprises at Sl. 24-26 are located in the same premises.

25.

Karnaphuly Shipbreaking Industries Ltd, Sitalpur, Sitakunda, Chittagong

 

 

 

 

60

 

 

360

420

125

80

26.

Shah Amanat Shipbreakers, Sitalpur, Sitakunda, Chittagong

 

 

 

 

80

 

 

320

400

125

80

 

 

 

1

2

3

4

5

6

7

8

9

10

11

27.

Dimond Steel Products Co. (Pvt.) Ltd. Bhatiary, Chittagong

2003/Ctg.

 

 

60

 

 

540

600

120

80

The enterprises at Sl. 27-28 are located in the same premises

28.

Rahim Steel Co. (pvt.) Ltd., Bhatiary, Chittagong

 

 

 

 

60

 

 

400

460

120

80

29.

St. Trading Corporation, Madambibir Hat, Sitakunda, Chittagong

 

 

 

 

80

 

 

540

620

125

80

The enterprises at Sl. 29-30 are located in the same premises

30.

Sima Steel, Madambibir Hat, Sitakunda, Chittagong

 

 

 

 

100

 

 

518

618

125

80

31.

Fahad Steel Industry, Madambibir Hat, Sitakunda, Chittagong

 

 

 

 

80

 

 

600

680

125

80

The enterprises at Sl. 31-32 are located in the same premises

32.

Ahmed Mustaba Steel Indusry, Madambibir Hat, Sitakunda, Chittagong

 

 

 

 

60

 

 

520

580

125

80

33.

Jiri Subadar Steel Re-rolling Mills

Bhatiary, Chittagong

 

 

 

 

80

 

 

560

640

120

80

 

 

34.

Rahman Shipbreakers Ltd., Bhatiary, Chittagong

 

 

 

 

100

 

 

680

780

120

80

The enterprises at S. 34-35 are located in the same premises

35.

M. M. Shipbreakers, Bhatiary, Chittagong

 

 

 

 

40

 

 

500

540

120

80

36.

Mannan Steel Ltd., Bhatiary, Sitakunda, Chittagong

 

 

 

 

100

 

 

700

800

120

80

 

 

 

 

20268

 

 

Annex - D

 
Sl.No.

Name of Vessel

Country of origin

Year of building

LDT.
M.T./L.T.

1.

M.V. IOLOOS

JAPAN

1976

10.292 M.T.

2.

M.V. ANURADHA

JAPAN

1972

7553 M.T.

3.

M.T. SUNNETTA

JAPAN

1973

16,603 M.T.

4.

M.V. MOUNTAIN

UK

1973

27,253 M.T.

5.

M.V. HOKKMDO STAM

JAPAN

1973

26,143 M.T.

6.

M.V. FENG KING

JAPAN

1974

18,040 M.T.

7.

M.T. KOS

SWEDEN

1977

4,422 M.T.

8.

M.V. TORIO

RUSSIA

1973

11,411 M.T.

9.

MV. LIBANUS

UK

1973

5,625 M.T.

10.

MT. BAY-ONE

FRANCE

1976

15,722 M.T.

11.

M.V. SHADOWPANCE

YOGOSLAVIA

1975

27,545 M.T.

12.

M.V. KORRIGAN

GERMANY

1973

21,160 M.T.

13.

M.T. TRANSHERA

SWEDEN

1976

1,28,244 M.T.

14.

M.V. GEMBIRA

GERMANY

1972

1,632 MT.

15.

M.V. DALENEUOS TOCHNY

RUSIA

1960

2,600 M.T.

16.

M.T. LASINO

GERMANY

1973

15,778 L.T.

17.

M.V. ALAN

BULGERIA

1976

4,337 L.T.

18.

M.V. NET JLANS

W.GERMANY

1972

4,823 M.T.

19.

M.V. SUN LANS CHENG

DO

1970

4,774 L.T.

20.

M.V. HAI MAO

GERMANY

1972

5,850 MT.

21.

M.T. SUTOON

UKRINE

1972

32,673 M.T.

22.

T. T KUBAN

DO

1976

30,000 M.T.

23.

M.T. ALANDIA PEARL

JAPAN

1974

14,993 L.T.

 

List to be updated.

Annex - E

Statement of Accidents in Twenty Ship-Breaking Yards

 
Year

Minor Accidents

Major Accidents

Fatal accidents

1996

147

21

2

1997

201

10

5

1998

203

11

0

Total

551

42

7

[ List of papers ]

Updated by FQ/AS. It was modified and approved by JT. Last updated: April 2000