The Economics of Shipbreaking
Green Ship Recycling
How ship owners, banks and cargo firms increasingly demand responsible recycling, how some Alang yards upgraded with impermeable floors and cranes, and the costs involved.
Demand for green recycling is growing.
Pressure
- Big shipping companies commit to responsible recycling.
- Banks under the Poseidon Principles consider responsible recycling.
- NGOs like the NGO Shipbreaking Platform name and shame.
Upgrades at Alang
Many yards added impermeable floors, cranes and waste handling.
Japan’s support
Japan helped fund upgrades at Alang.
Costs
Upgrades cost money, but certified yards can attract premium clients.
Future
A wave of old ships from the 2000s boom will need recycling.
The upgraded yard
A yard installs concrete floors and cranes so pieces are cut on hard ground, not sand.
Thinking green recycling is impossible in South Asia
Many yards have upgraded.
Key takeaways
- Owners and banks push for green recycling.
- Alang yards upgraded.
- Japan helped fund upgrades.
- A wave of ships will need recycling.
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