New Middle East ship recycling venture offers early-bird shares

The company has revealed its plans to build four new drydocks – 350 to 500 metres long – with eight quays where heavy duty cranes, magnets, and other machinery will support the recycling of end-of-life assets. The facilities could enable the dismantling of assets and the recycling of materials with a two-week timeframe, the company said.  

The process, which is based on circularity and the conversion of demolition waste into raw materials that can be traded to accredited customers, will be based on strict environmental rules. The facility will comply with international shipping regulations including the IMO’s Hong Kong Convention (HKC), the EU Ship Recycling Regulation (EU SRR), and BIMCO Recyclecon.

In a statement, Wreckdock explained its business model. Responsible recycling processes can protect the environment from pollution arising from oil, gasoline, and other chemical and ecologically harmful materials, it said. In so doing, it can limit risks to the environment and stop what it called the ‘unresponsible dismantling and recycling of end-of-life vessels on beaches in Asia”.

All incoming vessels will be assigned a recycling project plan in which experts will draw up requirements taking into account the Inventory of Hazardous Materials. All materials will be collected, processed, and recycled before being sold on to buyers in international markets. Wreckdock also operates in the global trade and supply of steel products, financial buying and selling operations, and international trade in ferrous and non-ferrous metals and oil, according to its statement.

Related:ASRY to break up ship for green recycler EEC

The development comes at a key moment for the global ship recycling business. Many older ships that fail to meet acceptable IMO carbon intensity requirements may prove viable for retrofits. But recycling facilities for many owners are currently limited to yards that have been validated by the HKC and the EU SRR.

Many recycling facilities on the Indian subcontinent have not yet been approved under HKC requirements, and none has so far been certificated by EU regulators. Many owners’ options, therefore, are limited to Turkish breakers in Aliaga or small, high-cost facilities in other regions where there are often weak or non-existent markets for recycled materials, particularly steel.  

The Wreckdock venture is the second new recycling project to be announced in Gulf waters in a matter of weeks. Netherlands-based ship recycling firm, Elegant Exit Company, recently announced a tie-up with Bahraini ship repair yard, ASRY. The new venture is in the process of recycling its first ship at ASRY, the 1,088 teu container ship, Wan Hai 165, built in 1998.

Related:Recycling sector beset by regulatory and capacity challenges