Bahrain Partners with Maersk to Expand ASRY’s Fledgling Recycling Efforts

 

The Government of the Kingdom of Bahrain is going to support the Arab Shipbuilding and Repair Yard Company (ASRY) in its efforts to develop a green ship recycling program. The yard took its first steps to launch the business in 2023 and now the government is forming a partnership with A.P. Moller – Maersk to explore fully developing the capability to meet the anticipated future demand.

In a first-of-its-kind Memorandum of Understanding for the Kingdom of Bahrain, the government will partner with Maersk, ASRY APM Terminals, and SULB Company to evaluate and establish a ship recycling initiative. By establishing the collaboration with the private industry the government looks to encourage a sustainable green economy that would recycle the steel from the ships for the domestic and international markets.

ASRY launched its efforts in 2023 when it was assigned a project to recycle an obsolete Wan Hai containership. The company was the designated yard working in partnership with a Dutch startup Elegant Exit Company (EEC) that plans to buy late-career vessels and operate them till they are due for recycling. The process called for a green dismantling and reuse of the material from the retired ships.

Maersk highlights the anticipated rapid increase in demand by 2028 for recycling capabilities. The shipping company says it has already recycled 22 vessels globally over the last eight years. Further, they have experience working with ASRY, including having the yard recently complete an overhaul and repair for a Maersk Line, Limited vessel. The 20-year-old Maersk Durban (33,750 dwt) registered in the United States was overhauled at the Bahrain shipyard in 2024.

Bahrain’s Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce will provide regulatory support to ASRY in the effort to develop the green recycling operation. The yard will use the support o equip its yard and docks with the capabilities for the ship recycling progress. Maersk will serve as the technical and operational advisor and provide support from its experience in sustainable practices and ship recycling.

The concept calls for stripping vessels and cleaning them of toxins as part of the recycling effort. Materials are separated for reuse. The SULB a steel company owned by Bahrain-based investment company Foulath and Yamato Kogyo is also joining the project. The steel company will utilize the steel from the recycled vessels in a sustainable effort for the domestic and international markets.

Ship recycling is growing in demand as shipowners struggle with increasing regulations and look to enhance the image of the industry. The EU has established strict requirements on recycling and efforts have begun to prosecute shipyards that illegally export ships for breaking to facilities that are not registered with the EU. Across Asia, there are efforts to improve the operations of their yards to achieve green standards while countries ranging from Egypt to Brazil have announced plans for new green recycling shipyards.