Bangladesh to recycle first ship to HK rules

Bangladesh to recycle first ship to HK rules

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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