Ship recycling countries are looking for stronger investment as demand in the sector is expected to increase significantly in the coming years.

During Maritime Week in Hong Kong, China, which took place from 17-23 November, IMO´s SENSREC project brought together members of the global banking and investment community to discuss the opportunity to contribute to the modernisation and sustainability of the sector.

The event, entitled ‘From Waste to Wealth’, held on 22 November, underlined the need for heavy investment to ensure that ship recycling yards meet international standards for operational safety, environmental protection and the welfare of workers.

These requirements are set out in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention), which will enter into force in June 2025. 

However, in some developing countries only a limited number of yards have so far obtained the relevant certification under the Convention. Investments are therefore crucial to improve the infrastructural and technical capacity of the sector and to meet the growing global demand.

The event highlighted the link between ship recycling and maritime decarbonisation, while showcasing success stories in developing countries.

The Permanent Secretary for Transport and Logistics of the Hong Kong Special Administrative Region, Ms Mabel Chan, announced that Hong Kong will soon launch an economic incentive programme for ship owners to increase ship efficiency and reduce greenhouse gas emissions.

As international shipping strives to decarbonise by 2050 or thereabouts, demand for newer, greener and more efficient fleets around the world will force the recycling of older vessels.

Bangladesh´s Under Secretary of the Ministry of Industry, Ms Sahela Akter, reiterated her country´s commitment to a more sustainable sector, adding that her government has modernised legislation to ensure that ship recycling yards comply with the Hong Kong Convention.

He said Bangladesh has shown that it is possible to transform its industry in 10 years, from an industry criticised for poor environmental performance and numerous accidents, to having some of the best shipyards in the world.

The event was part of the work of the SENSREC Project to support developing countries in implementing the Hong Kong Convention. Launched in 2015 and initially focused on Bangladesh, the SENSREC project has recently extended its support to Pakistan.

News and image obtained:"Organizacion Marítima Internacional"

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