Vessel Recycling Facility
This week, the Ministry of Transport’s Holding Co. dedicated to Maritime and Land Transport (HCMLT) signed a Memorandum of Understanding (MoU) with the El Wehda Industrial Company to develop a shipbreaking yard based in Damietta Port.
Kamel El-Wazir, the Egyptian Transport Minister, mentioned the collaboration is part of a presidential directive for boosting public-private associations in the transport sector.
Promoting Local Industry
It’s aimed at boosting the development of the local iron and steel sector, which currently depends on scrap metal (imported).This can be replaced with vessel recycling materials that are locally sourced.
The shipbreaking facility is expected to produce 1.5 million tons of scrap over five years, covering 66% of the local market’s scrap metal needs for iron production.
Egypt currently produces about eight million tons of iron annually, against a licensed capacity of 16 million tons, partly due to the shortage of local scrap metal. Nearly three million tons of scrap are imported annually, but this is likely to decrease with the operation of the new recycling yard.
Facility Specifications
The facility will cover an area of 155,000 sq meters to the west of Damietta Port’s western barrier.
The initiative will also include the construction of a 1.5-kilometre sea barrier to stop siltation.
As a medium-sized yard (classified as 50,000–500,000 sq meters), it can dismantle the vessels with a maximum length of 230 meters.
Egypt further hopes to become a significant vessel recycling destination, making the best use of its strategic position along crucial international shipping channels.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Marine Insight
