Page 111: of Maritime Reporter Magazine (November 2015)

Ship Recycling Leaders 5 countries = 97% of ship recycling

Just ? ve countries, Bangladesh, India, Pakistan, an industry driven by the economics of steel mak- in Turkey is restricted to a single beach in Aliaga,

China and Turkey, perform 97% of the world’s ship ing. Chinese imports of scrap steel have declined 60 km north of Izmir, where there are 22 recycling recycling. Bangladesh, India and Pakistan alone ac- steeply and in this period the Chinese ship recycling yards, each with about 50 meters’ frontage to the count for 70% of global business. The reason for industry has been surviving thanks to the govern- beach. Turkey’s capacity represents around 4 per- this? It is due to the economics of steel production. ment’s policy to renew the Chinese ? eet through cent to 5 percent of the world’s recycling capacity.

Nikos Mikelis of GMS explains: substantial ‘scrap and build’ subsidies offered to Pakistan produces little new steel, and most of this “The primary locations where ships are recycled Chinese shipowners. China does not allow beaching is by using iron ore. Nevertheless Pakistan’s ship are places where ferrous scrap is needed to be im- of ships and most yards are located on rivers with recycling industry has been growing fast in recent ported for making steel. Of course it is uneconomic ships most often moored alongside a pier.” years, providing steel to the rerolling market, while for a small or damaged ship to sail thousands of “Turkey is characterized by little usage of iron ore enjoying the bene? t of second-hand markets for ma- miles to reach the main ship recycling centers, and in its steel-making and by high demand for scrap chinery, equipment, spare parts, etc. for this reason ship recycling facilities also exist steel. It has been, and it continues to be, the world’s Bangladesh currently does not produce new steel. in many countries which have no need for ferrous largest importer of scrap steel. In Turkey there is no Its ship recycling industry provides scrap steel for scrap. Ship recycling in such cases can be seen as a rerolling of scrap steel, nor a vibrant second-hand the rerolling market which is very active due to the service for disposing end-of-life ships, rather than market in equipment and machinery. Ship recycling urbanization of this very densely populated country.

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MR #11 (106-113).indd 111 11/2/2015 4:09:20 PM