Commerce Minister Khandakar Abdul Muktadir on Tuesday said the government will fast-track the establishment of a Treatment, Storage and Disposal Facility (TSDF) and simplify approval procedures for the shipbuilding and recycling industry to create a working environment that suits foreign buyers.
“The government has taken initiatives to simplify the approval process and remove institutional complications to boost the international competitiveness of the shipbuilding and recycling industry,” he said.
The minister made the remarks at a meeting of the committee formed to review existing laws, rules and policies on the ship recycling industry and make recommendations, held at the Ministry of Commerce.
The meeting discussed waste management, yard modernisation, compliance with environmental standards and ways to reduce delays in obtaining necessary approvals.
Participants also stressed completing clearances and file approvals in Chattogram to avoid delays in Dhaka.
Muktadir said Bangladesh must compete with rival countries in terms of capacity and efficiency to attract ship orders and expand its share of the international market.
He stressed simplifying domestic procedures by taking the policies and practices of leading shipbuilding nations as benchmarks.
A special committee, led by the minister, is working to simplify rules and procedures.
Stressing the need for effective and implementable policies, Muktadir said enacting laws alone is not enough and that proper enforcement and compliance must be ensured.
“Rules that cannot be implemented eventually lose their relevance,” he said, urging regulatory agencies to change their approach to their work.
The minister said Bangladesh will prioritise implementation of the Hong Kong Convention to make the ship recycling sector more environment-friendly and bring it up to international standards.
Calling for a balance between environmental protection and economic potential, he said environmental standards must be ensured, but the sector’s growth should not be hindered by unnecessary complications.
Muktadir said the process of establishing the TSDF is already underway and will be expedited.
On financing and stuck loans in the shipbuilding industry, he said stakeholders should not dwell on the complications of old loans but focus on overcoming the current crisis and moving the sector forward.
The minister also called for quick meetings with all concerned parties and coordinated steps to expand facilities for entrepreneurs and remove existing barriers.
Environment, Forest and Climate Change Minister Abdul Awal Mintoo said parties linked to European ships are hesitant to work in Bangladesh and are choosing alternative destinations because of the absence of a TSDF, preventing the industry from fully tapping its potential.
European ships carry various types of recyclable materials, he said, stressing the need to build the necessary waste treatment, storage and disposal infrastructure to attract them.
Mintoo advised all concerned to work together to remove unnecessary procedural complications.
Industries Secretary Abdun Naser Khan presented the working paper at the meeting.
He said a working group on a one-stop service platform has started work to speed up ship recycling operations.
Work is also underway to draft guidelines for building green yards in line with the Hong Kong Convention and decentralise the Department of Environment’s clearance process.
The meeting also discussed completing file approvals in Chattogram to avoid the 45- to 60-day delay in obtaining clearances. Participants stressed cutting the processing time by completing approvals locally and streamlining industry operations.