Relics, spare parts and metals earn ship-breaking $100M yearly | The Business Standard

Oct 30, 2024

In Sitakunda's Madambibir Hat, shops are showcasing a fascinating collection of relics that seem to whisk visitors into a bygone era. Gramophones, telescopes, wooden-handled telephones, clocks, ship wheels, pocket watches, vintage electric lamps and ship compasses—these items, salvaged from scrap ships at nearby ship-breaking yards, are more than just decor. They hold a charm that makes it tough for visitors to leave with only one in hand.

Crafted from materials like copper, brass, and bronze, these treasures have price tags ranging from Tk5,000 to over Tk1 lakh, depending on their size and historical value. Surprisingly, it's not the locals who are snapping them up. Instead, international buyers—primarily from the USA, UK, Germany, the Netherlands and Dubai are the biggest customers, with many of these items shipped abroad as prized collectables.

But vintage items aren't the only exports from Sitakunda's thriving ship-breaking industry. Spare parts from dismantled ships, along with valuable metal scraps like copper, stainless steel and aluminium also make their way to international markets.

According to the Bangladesh Export Promotion Bureau (BEPB), the industry made significant contributions in the 2020-21 fiscal year. Machinery parts, including propellers and blades from ships, earned $12.54 million in exports.

Stainless steel scrap brought in $33.85 million, while copper waste generated $53.77 million and aluminum scrap added another $3.45 million. Altogether, the sector contributed $103.6 million to Bangladesh's economy, showcasing the diverse potential of this unique industry.

During the 2021-22 fiscal year, export earnings saw a rise. Exports from machinery parts increased to $14.57 million, stainless steel scrap exports surged to $61.87 million, copper scrap exports reached $66.69 million and aluminum scrap brought in $3.83 million. As a result, total earnings climbed to $146.95 million.

However, exports dipped in the 2022-23 fiscal year due to a significant drop in ship imports. Machinery parts exports fell to $11.44 million, stainless steel scrap to $28.80 million and copper scrap to $45.7 million.

On the other hand, aluminum scrap saw an increase, generating $10.8 million, though total export earnings dropped to $96.7 million.

The downturn continued in the 2023-24 fiscal year as the ship-breaking industry faced difficulties with low ship imports. During the July-May period, total exports amounted to only $88.1 million.

Exports of machinery parts were valued at $12.37 million, while copper scrap and stainless steel scrap earned $47.33 million and $28.54 million, respectively.

Mohammad Jafar, a local businessman and owner of Jahanara Marine, pioneered the exporting of vintage marine equipment sourced from ship scrap. He reminisced about the early days of the industry, saying, "In the 1990s, the ship-breaking industry dismantled ships from the 1960s and 1970s, where we found gramophones, telescopes, telegraphs, wooden telephones and vintage showpieces made of copper, all of which attracted people."

"In 2004, a tourist from the USA bought several items from my shop and asked me to ship them through Chattogram Port. That was when I realized the potential for exporting these items. After returning to the USA, he kept in touch and continued to buy vintage pieces and marine equipment," Jafar added.

In 2008, Jafar launched a website, posting pictures of his products, which brought in numerous foreign buyers. Today, he exports items worth $400,000 to $500,000 annually. Inspired by his success, several local businessmen joined the trade and now at least 10 shops in the Bhatiary area showcase vintage pieces, with four directly exporting goods worth over four to five million dollars.

Helal Uddin, owner of Sea Marine, shared that they used to export marine items, including vintage pieces, worth over $1 million annually before Covid-19. However, the drop in ship imports has significantly impacted exports in recent years.

Nazim Uddin of Tulatali Marine, who specializes in exporting generator parts and ship spare parts, noted that advancements in technology have affected the demand for machinery exports over the last two to three years. "We used to export goods worth two to three million dollars annually, but with fewer ships arriving at the yards, our export volume has fallen below two million dollars," he explained.

Nur Uddin Rubel, who transitioned from a non-ferrous metal exporter to a ship-breaker, said his company exports scrap metals worth $30-35 million annually. "The total export market of metals and goods recovered from ship-breaking yards exceeds $100 million annually," he added.

He also pointed out that, beyond meeting domestic demand for steel and metal products, the ship-breaking industry has long been contributing significantly to export earnings.

shipbreaking / Chattogram