Progress 2020: Responsible ship recycling
Over four years after we landed our first vessel at the ShreeRam yard (Plot 78), taking our declaration of wanting to change the ship recycling industry from words to action, the
10-km stretch of beach with recycling yards in Alang is a different world. We are proud of the progress made in Alang and are expanding our ambition to focus on creating opportunities for responsible ship recycling globally.
In the next few years, globally a big wave of post-panamax vessels, (whose category name is derived from the fact that they are too large to pass through the Panama Canal), will near their end of life.
Very few yards included in the EU List are capable of handling post-panamax vessels, and even fewer wish to accept these, with repairs/ conversions either being their core business or offshore/military vessel recycling their priority due to higher margins. Thus, there is today a lack of capacity for responsible recycling of mainstream, commercial, post-panamax vessels, regardless of which flag they sail under and where the responsible recycling facilities are located.
With proven results from Alang, documented by audit reports and an impact study conducted in 2020, we are confident that opportunities to remedy this situation can emerge from India and other non-OECD countries. Thus, Maersk's ambition for our work with responsible ship recycling has changed from radically transforming the industry beginning in Alang to focusing on creating opportunities globally. Read about our 2020 performance and activities on page 32-33 in the 2020 Sustainability Report.