South Africa is looking to capitalise on the growing demand for ‘green’ ship recycling with the establishment of 34South, a proposed ship recycling facility supported by state-owned Industrial Development Corporation (IDC)
The facility, to be located along the west coast of South Africa in the Saldanha Bay Industrial Development Zone, is seeking to become the first ‘green’ and EU-compliant ship recycling facility in Africa. The country is eyeing an increasing demand for ship breaking facilities that comply with new regulations such as the EU Ship Recycling Regulation (EU SRR) which has entered into force.
At present, the Basel Ban Amendment prohibits hazardous waste exports, including end-of-life vessels from OECD countries to non-OECD and developing nations. The ban currently prohibits recycling facilities located in non-OECD countries from being included on the EU’s list of EU SRR-compliant ship recycling facilities.
The EU SRR incorporates parts of the Hong Kong Convention and includes additional safety and environmental requirements, specifically to reduce the negative impact of recycling ships flying the flag of EU member states. However, the European Commission has indicated that facilities in non-OECD countries can be included if those facilities demonstrate compliance to the EU standards.
IDC also expects demand for scrap metal to increase as stricter standards are set in place for the steel production industry. Scrap steel is used as a secondary raw material in the steelmaking industry with global scrap consumption pegged at roughly 686M tonnes.
South Africa is a significant scrap exporter with 525,000 tonnes exported in 2019 and a ship recycling facility is expected to serve as a key opportunity for the country’s scrap metal industry.
Riviera Maritime Media will hold a series of 45-minute webinars during Ship Recycling Webinar week commencing 2 February 2021. Sign up to attend here