Bahrain has emerged as another country looking to bolster its position as a regional centre for ship recycling.
A memorandum of understanding (MoU) is in place with Danish shipping and logistics group Maersk to evaluate and establish a ship recycling initiative in the kingdom, together with partners Arab Shipbuilding and Repair Yard Company (ASRY), SULB Company, and APM Terminals Bahrain, the operator of Khalifa Bin Salman Port.
The deal will see Bahrain’s transport and telecommunications ministry and the ministry of industry and commerce provide regulatory support to ASRY for equipping the yard and docks for the ship recycling process.
Maersk, which claims 22 recycling projects over the last eight years without a single incident, will serve as the technical and operational advisor, while SULB will utilise the recycled steel and further process and recycle it for the local and international markets.
Ahmed Hassan, senior vice president and head of asset strategy at Maersk said the company hopes that the first-of-its-kind MoU in the kingdom would provide the right platform to accelerate responsible ship recycling, create a positive impact on the country’s economy and create jobs.
Other countries such as Egypt and Brazil had also recently moved to enter the sector which is anticipated to see a rapid increase in demand by 2028.
Egypt’s transport ministry inked a memorandum of understanding with El Wehda Industrial Company to develop a shipbreaking yard at Damietta Port, while Brazil has a memorandum of understanding with Modern American Recycling Services to explore the establishment a ship recycling and decommissioning yard in Porto Central.
Energy News Beat