Bangladesh Suspends Scrapper and Orders Compensation After Fatal Incident
The Ministry of Industries is imposing a series of stiff penalties on a shipbreaker in Chattogram, Bangladesh after a fatal incident while workers were cutting the tanks on a retired tanker. The move comes as Bangladesh is attempting to improve its safety record as the IMO’s new regulations are set to take effect and scrutiny remains high on the industry.
An explosion and fire happened on September 7 as a team was said to be cutting into the engine spaces aboard a former tanker that had been mostly dismantled. Some reports said they were attempting to open one of the fuel tanks while others said the explosion occurred in a pump room.
A total of 12 workers were injured with most of them suffering severe burns. One succumbed to his injuries that day as he was being transferred to a specialized hospital. Reports indicate the death toll has risen to six with the other six workers remaining in hospitals.
The authorities immediately suspended the license of the SM Corporation and issued a show cause order giving the company three days to give a reason why it should not be permanently closed. Work on the tanker, the Swarajya (32,900 dwt) was also ordered suspended.
The Ministry of Industries reports it completed an investigation into the incident citing the company with numerous violations. They included safety violations, failing to ensure safe working conditions, and operational misconduct. The breaker is being fined approximately $29,000 and its operating license was suspended for three months.
In addition, the shipbreaker has been ordered to compensate each of the families of the deceased providing approximately $5,900 per family. The company was also ordered to pay all the medical expenses of the six individuals still in the hospital. Each person will also receive one year’s wages.
Bangladesh in 2023 ratified the Hong Kong Convention with the IMO that seeks to set new safety and environmental standards when it goes into force in 2025. Despite an overall downsizing in the industry, the country remains one of the most active recycling operations for retired ships.
Bangladesh established standards for the industry in 2011 and after this latest incident conducted a review of the practices. The ministry included a 20-point recommendation in its report designed to improve safety. They called for prohibiting simultaneous hot and cold work, ensuring proper ventilation when cutting into tanks, engine rooms, and pump rooms, and ensuring that gases are evacuated before issuing a hot work permit. They also called for the hiring of trained and experienced workers and providing personal protective equipment.
The ministry is urging the companies to strictly follow the Ship Cutting Plan and ensure proper firefighting and rescue arrangements are in place when working in high-risk areas.
Critics however say that there is lax enforcement of the regulations. They also contend the yards use outside contractors to avoid some of the regulations. The NGO Shipbreaking Platform frequently cites Bangladesh for its lax safety records and high injury rates.
Citing data from the Labour Resource and Support Center, the Dhaka Tribune said that 124 people have died of accidents in the past nine years at the scrapyards. The newspaper reported that in the first six months of 2024, there have been 12 accidents at the yards resulting in 12 injuries and one death, before this most recent incident.
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