Posted on February 11, 2025
Despite repeated notices from the Bangladesh Inland Water Transport Authority (BIWTA), shipbreakers in Chattogram continue to dismantle scrap ships and dredge sand without obtaining clearance, according to BIWTA officials.
This violation not only results in significant revenue loss for the government but also causes severe damage to coastal biodiversity.
Currently, Chattogram has 248 registered shipbreaking yards, according to the Department of Inspection for Factories and Establishments. However, only 30 to 40 of these yards are operational.
In 2020, the government declared the area stretching from the Feni Muhuri project to Rasmoni Ghat in Chattogram—where all these yards are located — as a river port. Since then, a dispute has been ongoing between shipbreakers and the BIWTA.
Previously, shipbreakers operated with permission from the Ministry of Industries. However, under the Port Rules of 1966, no one can use foreshore areas within a river port without paying revenue to the government.
Following these regulations, the BIWTA has repeatedly sent notices urging shipbreaking yard owners to obtain licenses. However, most shipbreakers continue to use the foreshore and dredge sand without paying the required fees.
Only a single shipbreaking yard authority took permission from BIWTA for dredging sand and breaking ships last December.
Currently, BIWTA collects Tk 144 per decimal of river port land used in Chattogram and Tk 0.46 per cubic foot of sand as revenue.
Shipbreakers typically extract sand from the area in front of their yards to facilitate ship anchoring and maintain navigability.
Md Kamruzzaman, deputy director of BIWTA Chattogram, told The Daily Star, “Despite repeated requests, shipbreakers are not seeking permission. As a result, the government is losing a substantial amount of revenue. We have verbally informed higher authorities for further action.”
Contacted, Nazmul Hasan, secretary of the Bangladesh Ship Breakers and Recycling Association (BSBRA), said, “We are currently operating with permission from 17 to 18 government agencies.
“We normally pay revenue to the Deputy Commissioner’s Office for using land on the seashore. If the government now requires us to obtain permission from BIWTA as well, we are willing to comply — once a complete guideline is provided.”
He added that shipbreakers dredge sand from beaching zones at their own expense to facilitate operations.
“If BIWTA takes over sand extraction, we fear the process will slow down. In that case, we want the option to manage sand extraction ourselves,” he said.
Regarding allegations that some shipbreakers are engaging in sand trading under the guise of dredging, Nazmul said, “Our business is ship dismantling, not sand trading. These allegations are false.”
So far, the Sitakunda upazila administration has fined three shipbreaking yards — OWW Shipbreaking Yard, SL Steel Shipbreaking Yard, and Mother Steel Limited — for illegally extracting sand from the channel.
