Why are ships recycled in developing
countries?
14. There are
two main reasons why most ships are dismantled in Asia rather
than in the west. First, it is much cheaper to do so.[20]
Indeed, in Asia, the value of the scrap is such that dismantling
yards pay to take the ships, whereas yards in developed counties
require payment to do so. [21]
The Maritime and Coastal Agency told us that:
the ships imported for recycling in England (specifically
the MARAD vessels) are special cases where the owners have decided
on more stringent conditions for the recycling of their vessels
whilst not capitalising fully on the scrap value … there
is a financial disincentive for ships to be recycled in Western
Europe as the steel in the vessel is worth $10 a ton to the owner
in North West Europe, and has peaked at $390-410 a ton in India
and Bangladesh.[22]
15. The second
reason, which may in part arise from the first, is that there
are few facilities in OECD counties that can handle the largest
ships.[23] In particular,
the evidence we received indicates that there are no facilities
in England and Wales which have both the capacity to dismantle
large ships and the licence to do so.[24]
Able UK has experience in dismantling oil rigs, and its Hartlepool
yard may be the closest to having the facilities and expertise.
However, even if Able UK were to receive all the necessary permits
to allow it to dismantle the US vessels, there is still doubt
over whether it could take the largest tankers.[25]
16. Greenpeace was of the view that "there are
currently no facilities in the UK that would meet all legal requirements
and satisfactory health, safety and environmental standards"
although there are some sites where such facilities could be developed.[26]
And Defra told us that:
there appears to be a gap in UK expertise in the
dismantling of large vessels once they reach the end of their
life. As far as the Government is aware, there are currently no
facilities in England and Wales with the capacity and expertise
to dismantle large defunct ships safely.[27]
17. The Maritime
and Coastguard Agency pointed out that the lack of facilities
in the United Kingdom and other developed counties presented difficulties
for ship owners who wished to dismantle their defunct vessels
responsibly:
the lack of ship-recycling facilities that can handle
hazardous wastes or ship-decontamination facilities in OECD countries
is a major problem for shipping and can cause significant delay
for owners who wish to recycle in the developed world, resulting
in significant associated financial costs (port dues, maintenance
and crewing costs).[28]
18. The
lack of suitable dismantling facilities in developed countries
is a significant barrier to responsible ship dismantling. At present,
even if a ship owner based in the United Kingdom wished, or was
required, to dismantle a ship here, appropriate facilities for
larger vessels do not exist. Given the economic advantages of
dismantling facilities in Asia, and the difficulties faced by
companies such as Able UK, there is little incentive for companies
here to develop ship dismantling facilities.
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