Can ship recycling be a sustainable activity practiced in Brazil?

Abstract

South Asian countries are the main players in the recycling industry, there are problems linked to contamination, occupational health, and procedures that are not sustainable. Due to recent regulations in the recycling industry, shipyards outside Asia with sustainable practices can be authorized by the European Union to participate in this market. Considering the fact that, Brazilian shipyards have not been contracting for new ship orders, their production capacity could be used to ship recycling. Then, the novelty of this paper's contribution is that it is the first study to examine the legal, technical, and economic aspects of ship recycling for Brazilian shipyards. The research strategy adopted was based data collected from ships recycled in south Asia in 2016 and the Brazilian fleet with the potential to be recycled over the next 25 years. Semi-structured interviews with maritime sector professionals, as well as shipyard stakeholders and ship owners, were conducted to identify the perception of this activity in Brazil. A statistical descriptive analysis was conducted and an estimate of global market value was determined considering the ships recycled. The findings indicate that, in 2016, India, Bangladesh, Pakistan, Turkey, and China were responsible for 96.64% of the global market. In the same year, approximately 27 ships were recycled out of South Asia showing a change in the predominant countries in ship recycling. The potential Brazilian fleet to be recycled over the next 25 years represents approximately 340 ships with an estimated market value of US $587 million. Brazilian shipyards are an environmentally and technically qualified industry, with an idle capacity of ±900,000 Tons per year. However, local and international stakeholders suggest that Brazilian shipyards need to acquire expertise and expand feasibility studies to develop ship recycling locally.