Danish shipping giant A.P. Moller – Maersk has signed a Memorandum of Understanding (MoU) with Bahrain’s Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce to evaluate and establish a ship recycling initiative in the Kingdom of Bahrain.
The signing ceremony was also attended by strategic partners taking part in the project, which included the Arab Shipbuilding and Repair Yard Company (ASRY), SULB Company, and APM Terminals Bahrain, the operator of Khalifa Bin Salman Port and a subsidiary of A.P. Moller – Maersk.
According to the MoU, both the Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce will provide regulatory support to ASRY, which, in turn, will be responsible for equipping the yard and docks with the necessary requirements for the ship recycling process.
Specifically, A.P. Moller – Maersk will serve as the technical and operational advisor, providing expertise on implementing sustainable practices and responsible standards in ship recycling.
Meanwhile, SULB will use the steel from the ship recycling process and further process and recycle it for the local and international markets.
The MoU, the first of its kind in the Kingdom of Bahrain, aims to develop a ship recycling and green steel ecosystem in Bahrain by establishing collaboration between the government and industry stakeholders and ensuring sustainability during the entire process.
Maersk noted that the MoU also exemplifies successful public-private partnerships in achieving the Sustainable Development Goals (SDGs) and Bahrain’s Economic Vision 2030.
On the occasion, Minister of Transportation and Telecommunications Mohammed bin Thamer Al Kaabi said that this initiative will contribute to economic growth by enhancing commercial activity from the sale of recycled material.
“Maersk has established a ship recycling programme governed by our own Responsible Ship Recycling Standards (RSRS) independent of geography. The standards comprise stringent interpretation of the guidelines laid out by the IMO through the Hong Kong Convention and exceed requirements on several parameters, including downstream waste management, standards on labour and human rights, anti-corruption, etc.,” Ahmed Hassan , Senior Vice President Head of Asset Strategy, A.P. Moller – Maersk said.
“We are hopeful that this MoU will provide the right platform to accelerate responsible ship recycling in the Kingdom, create a positive impact on the country’s economy and create jobs.”
Maersk has worked on the recycling of 22 vessels globally over the last eight years. Adopting safe and sustainable ship recycling practices will contribute to combating climate change in line with the International Maritime Organization’s strategy to reduce emissions from international shipping, the company concluded.
From 2023 to 2032, more than 15,000 ships with deadweight capacity of more than 600 million tonnes are expected to be recycled, more than twice the amount recycled in the previous ten years, BIMCO estimates. This is due to the ever-tighter limits on greenhouse gas emissions.