Text size:

  • Small
  • Normal
  • Large
India and Bangladesh are the leading ship-scrapping nations. Anuruddha Lokuhapuarachchi / Reuters
India and Bangladesh are the leading ship-scrapping nations. Anuruddha Lokuhapuarachchi / Reuters

Firm seeks for UAE to be ship recycler

An Abu Dhabi-based marine contracting company has drawn up plans to make the UAE the world's next ship recycling hub.

An Abu Dhabi-based marine contracting company has drawn up plans to make the UAE the world's next ship recycling hub.

Khamis Al Rumaithy (Kare) is looking for a deepwater site in which to construct a facility initially capable of scrapping ships of up to 12,000 tonnes, with scope to expand the operation to include the largest tankers, bulk carriers and container ships.

According to Bob Hawke, Kare's managing director, establishing a ship recycling facility in the region is not only a major commercial opportunity for the UAE, but would cement its ecological credentials and secure the country a seat at the top table in any future global marine environment talks.

"This opportunity has developed out of the region's own demand for steel," said Mr Hawke. "There are smelters in the UAE, Oman, Saudi Arabia and Bahrain. They already consume a massive amount of scrap steel and are looking to expand their capacity. So it makes sense to have a supply of that scrap steel on your doorstep."

India and Bangladesh are the leading ship-scrapping nations. However, nearly all their work, mainly at Alang in the state of Gujarat in western India and Chittagong in Bangladesh, are carried out on beaches, and the pollution arising from the ship-breaking process has caused massive ecological damage.

The other major ship-breaking nations are Turkey and China, where the processes are carried out under strict environmental controls.

"Much of Europe's ships going for recycling are handled in Turkey. In the Far East, the ships tend to go to China," Mr Hawke added. "We are in between, a natural destination for all the tonnage coming out of the Middle East and Africa."

Any project in the UAE would have to be "fully compliant" with all the pending environmental regulations and guidelines being drawn up by the European Union and the United Nations International Maritime Organization, Mr Hawke said, and that would give it a major advantage over the existing Indian and Bangladeshi ship-breakers, who are already falling foul of environmental protection measures.

Crisil Ratings, a subsidiary of Standard & Poor's, says the size of the ship-scrapping market is about to become huge. It estimated last month that more than 55 million tonnes of the 180 million gross tonnage of global shipping capacity existing today is more than 20 years old and will be scrapped in the next two years.



Back to the top

More articles

Editor's Picks

 Cityscape Abu Dhabi 2014 will run until April 24, 2014. Fatima Al Marzooqi / The National.

In pictures: Cityscape Abu Dhabi 2014 opens
at Adnec

Key developments and master plans are being unveiled at this year’s property exhibition in the capital.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Designed by London-based Thomas Heatherwick, founder of Heatherwick studio, the park will feature an outdoor cinema, an organic garden, picnic areas and cafes and restaurants. Photo courtesy Salama bint Hamdan Al Nahyan Foundation

Futuristic Abu Dhabi park to be built in the desert shade

Spread over 125,000 square metres, Al Fayah Park, on Airport Road, will be covered by a sand-coloured canopy, 20 metres high, with the appearance of cracked desert land from above.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National