Bangladesh Ministry Enforces Penalties on Shipbreaking Company After Fatal Chattogram Explosion

The Ministry of Industries in Bangladesh is taking strict action against a shipbreaking company in Chattogram following a fatal incident during the cutting of tanks on a retired tanker. The incident, which involved an explosion and fire on September 7, resulted in the injury of 12 workers, with one worker succumbing to his injuries. The company, SM Corporation, had its license suspended and was given a show cause order to explain why it should not be permanently closed. The Ministry of Industries conducted an investigation and found the company guilty of safety violations, leading to a fine of approximately $29,000 and a three-month suspension of its operating license.

In addition to the penalties imposed on the shipbreaker, the company was ordered to compensate the families of the deceased workers and cover the medical expenses of the injured individuals. The incident has drawn attention to safety standards in the shipbreaking industry in Bangladesh, especially as the country ratified the Hong Kong Convention with the IMO in 2023 to establish new safety and environmental standards by 2025. The ministry has made recommendations to improve safety practices, such as prohibiting simultaneous hot and cold work, ensuring proper ventilation, and hiring trained workers.

Despite efforts to improve safety standards, critics point out lax enforcement of regulations in the shipbreaking industry in Bangladesh. The NGO Shipbreaking Platform has raised concerns about the country’s safety records and high injury rates in scrapyards. Data from the Labour Resource and Support Center shows that accidents in scrapyards have resulted in numerous deaths and injuries over the years. The ministry is urging companies to strictly follow safety protocols, including the Ship Cutting Plan, and ensure proper firefighting and rescue arrangements in high-risk areas.

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