The Economics of Shipbreaking
Chattogram and Gadani
How Bangladesh's Chattogram yards became the world's largest by tonnage in some years, supplying much of the country's steel, and Pakistan's Gadani yards.
Bangladesh and Pakistan are big shipbreaking hubs.
Chattogram
- Bangladesh’s yards at Sitakunda near Chattogram have often been the world’s largest by tonnage.
- Shipbreaking supplies a large share of Bangladesh’s steel.
Safety
Bangladesh yards have faced criticism for accidents and child labour in the past.
Gadani
Gadani in Pakistan is another major site; a 2016 fire killed dozens of workers.
Competition
India, Bangladesh and Pakistan compete for ships based on prices and currency.
Upgrades
Bangladesh’s ratification of the Hong Kong Convention in 2023 pushes yard upgrades.
The steel source
Much of the steel in new buildings in Dhaka comes from ships broken at Chattogram.
Thinking India is the only shipbreaker
Bangladesh and Pakistan are major too.
Key takeaways
- Chattogram is often the largest by tonnage.
- It supplies much Bangladeshi steel.
- Gadani had a deadly 2016 fire.
- Countries compete for ships.
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