The Government of the Kingdom of Bahrain will support the Arab Shipbuilding and Repair Company (ASRY) in its efforts to develop an environmentally friendly ship recycling program. The yard will take its first steps towards commencing operations in 2023, and the government is now partnering with AP Moller-Maersk to explore full development of capacity to meet expected future demand.
As the first of its kind for the Kingdom of Bahrain, the Government will partner with Maersk, ASRY APM Terminals and SULB to assess and establish a ship recycling programme. By establishing a collaboration with the private sector, the Government aims to promote a sustainable green economy in recycling ship steel for domestic and international markets.
ASRY was tasked with the recycling project for the aging Wan Hai container ship and began its efforts in 2023. The company, the designated shipyard in partnership with Dutch start-up Elegant Exit Company (EEC), plans to purchase the decommissioned vessel and operate it until its recycling deadline. The process called for dismantling the decommissioned vessel and reusing the materials.
Maersk highlights that it expects demand for recycling capacity to surge by 2028. The company says it has already recycled 22 ships worldwide in the past eight years. Moreover, the company has experience working with ASRY, having recently completed the overhaul and repair of Maersk Line Limited vessels at the yard. The US-registered 20-year-old Maersk Durban (33,750 dwt) was due to be overhauled at the Bahrain shipyard in 2024.
Bahrain’s Ministry of Transport and Communications and Ministry of Commerce and Industry will provide regulatory support to ASRY in its efforts to develop green recycling operations. The shipyard will use this support to equip its shipyards and docks with the necessary capabilities to advance ship recycling. Maersk will support the company as a technical and operational advisor, leveraging its experience in sustainable practices and ship recycling.
The initiative calls for ships to be stripped and detoxified as part of the recycling effort. Materials would be separated for reuse. Bahrain-based investment firm Faurus and steel company SULB, owned by Yamato Kogyo, are also part of the project. The steel company plans to utilize steel from recycled ships as part of its sustainability efforts for domestic and international markets.
Demand for ship recycling is growing as shipowners struggle with tightening regulations and seek to improve the industry’s image. The EU has set tougher requirements for recycling and is beginning to prosecute shipyards that illegally export ships to non-EU registered facilities for dismantling. Across Asia, efforts are underway to improve shipyard operations to meet green standards, with countries from Egypt to Brazil announcing plans for new green recycling shipyards.
