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Farewell, old lady: New quality standards in ship recycling

Hapag-Lloyd is one of the world’s first major shipping companies to recycle its own ships in accordance with strict EU environmental standards. In fact, almost everything is reused. A behind-the-scenes look at one of the biggest recycling yards in Turkey

Something is different on the bridge during this voyage of our “Mississauga Express”. The ship is unusually easy to steer, and there are no signs of containers. The vessel, which had been connecting Europe and Canada in the AT2 service until now, has seldomly been this empty. And there is no port in sight, either. The captain and crew are prepared. Then the pilot takes over and guides the “Mississauga Express” to her last berth, the Leyal shipyard in the Turkish coastal town of Aliağa – her final call after 25 years at sea. The shipyard, roughly 70 kilometres from our office in Izmir, is one of 48 EU-certified ship-dismantling companies in the world. In cooperation with Dido Shipping S.A., three of our ships are currently being recycled in the Leyal Group’s ship-recycling facilities.

We are joined on our tour of the shipyard by Konstantinos Galanis, Director of Operations, Technical & Sustainability at Dido Shipping S.A. The dock is located on a peninsula near Aliağa. The Leyal Group’s headquarters, which coordinates its ship-recycling efforts, sits on a hillside. We are already expected when we arrive. The panorama windows of the headquarters building offer a perfect view of the “Mississauga Express”. It is one of several other ships here on the coastal strip, some of which have been semi-dismantled – including the “Milan Express” and the “Ottawa Express”. The three container ships are among a limited number of ships that will be dismantled in accordance with EU environmental standards. “We want to be pioneers in our sector,” Galanis says as he leads us through the headquarters. “We are thrilled to take the next step together with Hapag-Lloyd and to promote an environmentally friendly recycling process. The shipyard will need about four months to dismantle and recycle the ships.” 

The Leyal Shipyard, roughly 70 kilometres from our office in Izmir, is one of 48 EU-certified ship-dismantling companies in the world

By reflagging the ships to the EU and recycling them in accordance with EU environmental standards, Hapag-Lloyd is setting new quality standards for the entire industry, which has repeatedly had to contend with negative headlines about ship scrapping. But what exactly does recycling look like when it is eco-friendly, safe and fulfilling its social responsibilities towards shipyard workers?

The answer to this is already clear within the first few minutes of our visit. Before going to our ships, we are required to put on protective clothing, work boots, safety goggles, hearing protection and dust masks. Wearing full gear is a prerequisite to be admitted into the shipyard premises. “Safety, environmental protection and the well-being of our employees are our top priorities,” says Caner Ozdogan, who is responsible for safety at the Leyal Group, as he hands us the protective clothing. When it’s 24 degrees and sunny, it can get pretty hot in all this gear.

Fortunately, we don’t have far to go, as the “Mississauga Express” is only about 100 metres from the Leyal headquarters. At the time of our visit, only half of the originally 15,000-tonne ship remained. At present, the bridge of the 2,808 TEU container ship is being dismantled. A huge crane right inside the cut-open vessel helps to hoist the tonnes of steel out of our container ship. Similar to cutting a cake, the ship is first cut into larger pieces and then dismantled by the workers at the shipyard so that the individual parts can be hauled away by truck.

The bridge of the 2,808 TEU container ship "Mississauga Express" is being dismantled. A huge crane right inside the cut-open vessel helps to hoist the tonnes of steel out of our container ship.
Konstantinos Galanis, Director of Operations, Technical & Sustainability, Dido Shipping S. A.

Almost 95% of the steel is reused – and the material doesn’t lose any of its quality

The steel industry has one of the biggest climate footprints in the world, and the “green steel” resulting from this recycling process is extremely popular among steel manufacturers, as it reduces greenhouse gas emissions. Recycled steel is also being reused at Hapag-Lloyd – either for completely new ships or as part of our Fleet Upgrade Program, such as for a new bow on a ship still in service. Besides recycling steel, Hapag-Lloyd takes other measures to make the recycling process as eco-friendly as possible.

For example, on board it ships, it compiles the mandatory inventories of hazardous materials (IHMs) to prepare appropriate plans for recycling them. Before recycling, this inventory is submitted together with the plans to a classification society approved by the flag state. “The IHM list includes 15 hazardous substances, including asbestos and ozone-depleting gases, along with information on their location and approximate quantity,” explains Rakesh Bhargava, Global Director at Sea Sentinels. This Singapore-based company assists us with administrative tasks in the run-up to the recycling process and provides onsite monitoring in shipyards. “After the inspection, the authorities issue a certificate of recyclability,” Bhargava continues. “Using the IHM list, all hazardous substances can be identified and disposed of in an eco-friendly manner during the dismantling process.”

Recycling ships in an eco-friendly manner entails a whole lot of administrative work – but that’s not all. As part of another major effort, Hapag-Lloyd is bringing those ships under German flag before recycling them to ensure that this process is in accordance with the highest standards in the industry – and thereby contribute to a sustainable future. “We go the extra mile because we are convinced that eco-friendly recycling offers huge benefits,” says Silke Lehmköster, Senior Director Fleet Management at Hapag-Lloyd. “In doing so, we are underlining our high sustainability standards – not only for our newbuildings and our current fleet as part of our Fleet Upgrade Program, but also for ships that have reached the end of their service life.”

Silke Lehmköster, Senior Director Fleet Management at Hapag-Lloyd

"We go the extra mile because we are convinced that eco-friendly recycling offers huge benefits”

OUR PARTNER, the Leyal Group, recognizes this. “The fact that Hapag-Lloyd is now recycling these ships under German flag to ensure that they are recycled according to the highest environmental standards is unique in the industry,” says Dimitri Ayvatoglu, Head of Business Development and External Affairs. This means that the partnership with the Leyal Group in Aliağa will continue. Over the next few years, a lot more ships will need to be recycled – of course under the EU’s highest environmental standards.

Dimitri Ayvatoglu, Head of Business Development and External Affairs, Leyal Group

The fact that Hapag-Lloyd is now recycling these ships under German flag to ensure that they are recycled according to the highest environmental standards is unique in the industry

Karmenu Vella, the former EU Commissioner for the Environment, Maritime Affairs and Fisheries, has described the EU Ship Recycling Regulation (EU SRR), which has been regulating the scrapping of merchant ships since 2019, as a “driving force for change”. In addition to encouraging European shipping companies to recycle their vessels in approved yards in a safe and eco-friendly manner, the regulation restricts the carrying of hazardous materials on board. This makes the EU SRR the first regulation of its kind to enforce the Hong Kong Convention adopted in 2009, which sets global standards for sustainable ship recycling.

One by one, the crane lifts steel components from the inside of the cut-open hull
Several semi-dismantled ships are in the drydock. The shipyard will need about four months to dismantle and recycle the ships

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