Siba Ships and Seaarland in $300m investment for greener recycling

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Fortifying the drive towards a cleaner shipping industry, Italy’s Siba Ships and Netherlands-based Seaarland Shipping Management have helped finance a new $300m Green Recycling Initiative which will facilitate owners in more environmentally-friendly methods of ship recycling, as well as supporting steel producers in the production of ethically sourced steel.

Sourcing up to 150 investors from shipowning and steelmaking industries, the Green Recycling Initiative (GRI) is also set to establish a fund to purchase approximately 120 bulk carriers during 2009 and 2010, with the aim to commence recycling at established environmentally-friendly ship recycling yards run by the International Ship Recycling Association while it builds its own recycling facility in the meantime.

Mauro Balzarini, Chairman of Siba Ships, said: “Good ship owners want to recycle their ships ethically, and good steelmakers want to use ethically produced scrap. IMO has introduced the International Convention for the Safe and Environmentally Sound Recycling of Ships, which in time will put an end to beach scrapping. The bulk carrier market in particular now is ripe for major scrapping, and when the world economy gets moving again demand for steel will take off quickly.

“We have a historic opportunity where the market, public concerns and regulatory change are all working together. The Green Recycling Initiative is an opportunity for ship owners and steel makers to join a sound, clean, green and long term business which will make shipping and steel making more environmentally friendly, and also produce good returns for those quick enough to see the opportunities,” he added.

Offering the opportunity for investment both in the business and in a cleaner future for shipping, the GRI hopes to provide a greener and cost-effective solution to ship recycling and the sourcing of scrap for steelmaking, to comply with current legislation and future industry standards. Brett Salt, Managing Director of GRI, revealed that the company is “actively studying potential sites for recycling yards which will be able to provide a safe haven for laid up ships while waiting recycling, and will be designed from scratch to provide clean, cost-effective recycling using properly trained and protected workers.”

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