Maersk has signed a Memorandum of Understanding (MoU) in Egypt to strengthen cooperation in sustainable ship recycling in line with international standards.
The project is the first of its kind in the country. It pivots on the forthcoming construction of a modern ship demolition and recycling plant in Damietta. The project, which began a year ago with a public-private agreement between the Egyptian Ministry of Infrastructure & Transport and the industrial company El Wehda, envisages the construction of a 155,000m2 facility to the west of the Egyptian port.
The new plant will be able to dismantle vessels up to 230m long and aims to produce approximately 1.5 million tonnes of scrap metal over a five-year period, i.e. 66% of the quantity required by the global market for iron production. Currently, Egypt produces about eight million tonnes of iron per year, i.e. half the authorized 16 million tonne capacity. This is partly due to the absence of scrap in the domestic market. Approximately three million tonnes are imported annually, but this figure is expected to decrease as the ship recycling yard becomes operational.
The agreement with Maersk was signed by the Holding Company for Maritime and Land Transport, a company directly controlled by the Egyptian Ministry of Infrastructure & Transport and formally engaged with another party, Industrial Development Group, in setting up a company specializing in shipbreaking and refitting.
Translation by Giles Foster