Just as China has signalled its exit from the international ship scrapping scene, Bangadesh has stepped up to the plate, sealing its first ever deal to recycle a ship to Hong Kong Convention compliant rules.
When Beijing announced it would stop accepting overseas ships for recycling at the end of this year it left a big hole for owners looking at green options to dispose of their older vessels with just a handful of Indian and Turkish yards having suitable sites to meet the criteria set out in the Hong Kong Convention. Now however PHP, a shipbreaking yard in Bangladesh, has signed a landmark deal to recycle a Vale VLOC called Ore Vitoria. This is the first vessel sold to the yard since it received a Statement of Compliance with the Hong Kong Convention from RINA. The ship went for $440 per ldt, netting the owner $11.3m.
“Stakeholders within the industry will be watching this transaction closely, as concerns have been raised previously over the disposal of hazardous materials at the yard,” Clarkson noted in its most recent report.