Bangladesh Imposes Heavy Fine, Shuts Shipbreaking Yard After Deadly Explosion Kills 6 & Injures 6 Others

Bangladesh’s Ministry of Industries has suspended SN Corporation Shipbreaking Yard’s license and imposed fines of Tk 35 lakh after a tragic explosion on September 7, 2024, that killed six workers and injured six others.

The incident occurred at a yard in Sitakunda, Chattogram, while workers were dismantling an oil tanker.

The authorities acted immediately after an investigation into the explosion, which occurred as workers were cutting into the engine room of the Swarajya, a 32,900-dwt former tanker.

According to some reports, the explosion occurred while attempting to open a fuel tank, while others say it happened in a pump room.

All 12 workers involved in the explosion suffered severe burns. One worker died on the same day while being rushed to a specialized hospital, and the number increased to six as others succumbed to their injuries over the next few days. Six workers remain hospitalized.

On September 18, the Ministry of Industries announced the penalties, which included a three-month suspension of SN Corporation operations. A show-cause order was issued, requiring the company to explain within three days why it should not be permanently shut down.

Authorities fined the shipbreaker under various sections of the Shipbreaking and Recycling Rules, 2011, including Tk 10 lakh under Section 45.3, Tk 1 lakh under Section 46.3, Tk 10 lakh under Section 46.9, and Tk 5 lakh under Section 46.11.

The Ministry also ordered SN Corporation to pay Tk 7 lakh to the families of each dead worker, with Tk 5 lakh under Section 45.3 and Tk 2 lakh added to comply with labour laws.

The yard must also cover all medical expenses for the injured workers and pay each of them 12 months’ wages as compensation.

The investigation report included 20 safety recommendations intended to prevent similar incidents in the future.

These measures require stricter enforcement of safety rules, including restricting simultaneous hot and cold operations, guaranteeing sufficient ventilation, and mandating that gases be evacuated before cutting into tanks or engine rooms.

The ministry also urged shipbreakers to hire trained workers and use personal safety equipment.

The NGO Shipbreaking Platform points out inadequate safety regulations and enforcement in Bangladesh’s shipbreaking yards. According to the Labor Resource and Support Center, 124 workers have died in scrapyard accidents in the past nine years.

According to the Dhaka Tribune, 12 accidents were reported in 2024 before the recent accident, with one person killed and several injured. Despite efforts to improve conditions, Bangladesh remains under observation as a global ship recycling hub.

The country signed the Hong Kong Convention in 2023, which would impose new safety and environmental standards starting in 2025.

However, critics remain concerned about the slow pace of reform and the frequent use of outside contractors, which may allow companies to avoid restrictions.

Reference: The Daily Star

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Source: Maritime Shipping News