Ferdous Steel Ship Recycling Industries was cutting the scrap vessel, MT Rasi, without a valid environmental clearance at its Sitakunda yard in Chattogram, where nine workers died from toxic gas inhalation inside the vessel on August 14.
According to the Department of Environment (DoE), its Chattogram district office issued the clearance on August 13, 2025. The clearance, which contained 31 conditions, was valid until August 12, 2026. The incident occurred two days after the clearance expired.
Ashraf Uddin, assistant director of the DoE’s Chattogram district office, said shipbreaking yards are usually given a one-year environmental clearance, as most vessels are dismantled within that period. But around 30 percent of MT Rasi was still left to be cut.
“Under the rules, yards are required to apply for renewal one month before the expiry of the clearance. Ferdous Steel, a “green shipyard” certified under the Hong Kong Convention, however, did not apply for renewal.”
Contacted, Md Yousuf Ali, manager of Ferdous Steel, said, “This is the first time we have taken so long because the vessel was very large. We did not notice that the clearance had expired. Otherwise, we would have renewed it,” he said. “Now that the matter has come to our attention, we will apply for renewal.”
DoE official Ashraf said they would recommend cancelling the environmental clearance issued to the yard for its operations.
The Department of Inspection for Factories and Establishments filed a case against the yard in July over safety violations.
In addition, documents submitted for permission to dismantle MT Rasi, a former LNG carrier, had four ballast tanks. One had already been cut, while part of a second tank was being cut when hydrogen sulphide gas was released, killing nine workers.
Documents said that the ballast water was changed after the ship arrived in Chattogram port on July 5, 2025.
SM Sakhawat Hossain, assistant inspector of the Chattogram office of the Department of Explosives, inspected the vessel. He confirmed that an excessive level of hydrogen sulphide gas was detected inside the vessel. “The main cause of the deaths was the gas.”
The Hong Kong Convention became mandatory in Bangladesh on June 26, 2025, requiring ships to be recycled at yards certified to meet international safety and environmental standards, commonly known as “green shipyards”.
Meanwhile, an 11-member committee, led by AKM Benjamin Riazi, additional secretary of industries ministry, yesterday began its field investigation.
Riazi told reporters during the visit that they were examining what caused the incident, whether there had been any negligence, and whether there were any shortcomings in the safety measures.
Bangladesh Ship Recycling Board, which oversees ship recycling activities, has already suspended operations at Ferdous Steel.
ASM Shafiul Alam Talukder, director general of the BSRB, told The Daily Star that the process of providing compensation to the families of the deceased had begun.
“The investigation committee will submit its report within this week. Further action will be taken based on the report.”
