Egypt Gears Up for Ship Recycling with First Ever Facility at Damietta Port
Big things are on the horizon for Egypt’s maritime industry! The country is taking a significant step towards establishing its first ever ship recycling facility. This exciting development comes after the Ministry of Transport’s Holding Company for Maritime and Land Transport (HCMLT) signed a Memorandum of Understanding (MoU) with El Wehda Industrial Company. This partnership marks a new chapter in public-private collaboration within Egypt’s transport sector, as directed by the President himself.
The main goal behind this project is to breathe new life into the local iron and steel industry. Currently, this sector heavily relies on imported scrap metal. The new ship recycling facility aims to change that by providing a readily available source of scrap metal right within Egypt’s borders. Dismantling ships will generate a substantial amount of scrap, estimated at around 1.5 million tons over a five-year period. This impressive figure represents a whopping 66% of the total scrap metal needed by the domestic iron industry for its production processes.
Egypt’s iron and steel industry boasts a licensed capacity of 16 million tons annually. However, the lack of readily available scrap metal has restricted actual production to around 8 million tons. The new ship recycling facility has the potential to bridge this gap significantly. Additionally, Egypt currently imports a substantial amount of scrap metal, roughly 3 million tons each year. With the domestic production of scrap metal from ship recycling, this import figure is expected to decrease.
The upcoming facility will be situated strategically west of the western barrier at Damietta Port, occupying a vast area of 155,000 square meters. To ensure smooth operations and prevent siltation, the project also includes the construction of a 1.5-kilometer sea barrier. Classified as a medium-sized yard, the facility will have the capacity to handle the dismantling of ships with a maximum length of 230 meters.
This project holds immense potential for Egypt to become a major player in the global ship recycling industry. The country’s strategic location along crucial international shipping routes positions it perfectly to capitalize on this opportunity. By establishing this first-ever facility, Egypt is not only aiming to boost its domestic iron and steel industry but also aspiring to become a leading destination for ship recycling, adhering to international standards and best practices.
