Delivery of Goods by Water - The IHK advocates for ship dismantling facilities in northern regions.
Germany's northern region is poised to take on a significant role in the ship recycling industry, thanks to its existing maritime infrastructure, says Klaus-Jürgen Strupp, president of the Rostock Chamber of Commerce and Industry. He stressed, "Ship recycling could be a massive advantage for Northern Germany and its shipyards." However, the major drawback is that none of the approximately 30 EU shipbreaking facilities are currently based in Germany. This is primarily due to the high barriers to entry for establishing ship recycling yards in the country.
For instance, in nearby nations such as Denmark, Belgium, and the Netherlands, permits are issued more swiftly, Strupp mentioned. The German Shipping Association states that approximately 90% of the ships retired annually are recycled in Southeast Asia, particularly in Pakistan, Bangladesh, and India. Thousands of positions in shipyards and ancillary services sectors are reliant on the ship recycling business in these countries.
Olsen, the head of innovation, environment, transport, and maritime economy at the Rostock Chamber of Commerce, referred to the EU Ship Recycling Resolution (EU-SRR), which stipulates that ships under the EU flag can only be recycled at EU-approved shipyards. The EU Commission periodically updates a list of authorized recycling yards. Nevertheless, the number of certified shipbreaking facilities and their capacity is insufficient to process all ships registered under the EU flag.
Moreover, the implementation of the Hong Kong Agreement in 2025 will intensify the demand for certified shipbreaking yards. This will boost the competitive edge of shipbreaking facilities within the EU. The Hong Kong Agreement necessitates stringent certification for shipbreaking yards, centered around occupational safety and environmental conservation, by independent classification societies.
As per VDR data, steel derived from ships is a highly sought-after raw material. Recycling yards in Bangladesh addressed about 80% of the nation's steel raw material needs. IHK expert Olsen further noted that high proportions of steel scrap are needed for "green" steel with low CO2 emissions.
