NYK Line sends first large vessel to Bangladesh shipbreaking yard

NYK Line, one of the world's leading shipping companies, has for the first time sent a large vessel of over 20,000 tonnes to a Bangladeshi ship recycling yard, marking a significant milestone for the country's shipbreaking industry.

The vessel, MV Sage Sagittarius, arrived yesterday at Arab Ship Breaking and Recycling Limited in Sitakunda of Chattogram, where it is scheduled to be beached and dismantled.

Industry experts say the move reflects growing international confidence in Bangladesh's compliance with environmental and safety standards in ship recycling.

NYK Line usually sends end-of-life vessels only to facilities that fully meet strict environmental and safety requirements under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. 

The MV Sage Sagittarius, a special-purpose bulk carrier previously used to transport coal from Australia to Japan, is equipped with its own hopper crane and conveyor belt system that allows automatic loading and unloading of coal at specialised terminals.

According to company representatives, only three such vessels exist globally. One has now been beached in Bangladesh, while the other two remain in operation within the company's fleet.

NYK Line officials, including project manager for ship recycling Naib Alamgir and environmental regulation team leader Yuki Mizoguchi, were present during the beaching of the vessel.

Speaking to The Business Standard, Alamgir said the company typically operates its vessels for around 25 years before deciding their fate.

"Being a leading shipping line, we have run a vessel for around 25 years. After that, we try to sell them in the second-hand market. If we do not find any buyer, we send them for recycling," he said.

He added that strict international rules and the company's internal environmental policies determine where ships can be recycled.

"We only send ships to yards where the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is fully implemented. In addition, we have our own environmental standards that yards must follow."

Before selecting a recycling yard, the company conducts on-site visits and audits.

"After the audit report is satisfactory, we enlist the yard. So far, five yards in Bangladesh have been enlisted. Earlier, we recycled a smaller ship of about 8,000 tonnes at PHP Ship Recycling Yard. This is the first larger vessel we have sold to Arab Ship Breaking and Recycling Yard," Alamgir said.

He added that NYK Line will monitor the entire recycling process closely.

"Until the ship is fully recycled, all activities at the yard will be monitored 24 hours a day by a dedicated team to ensure environmentally responsible recycling."

Alamgir also noted that global demand for ship recycling is expected to rise sharply in the coming decade.

"Ship technology is changing rapidly. With new fuel rules and the global Net Zero target for 2050, many older vessels will have to be scrapped. In the next 10 years, more than 10,000 ships are expected to reach the end of their service life," he said.

"As one of the leading shipbreaking nations, Bangladesh has a strong opportunity to benefit from this shift."

Nur Uddin Rubel, chairman of Arab Ship Breaking and Recycling Yard, said the facility had invested heavily to meet international standards.

"We have invested over Tk70 crore to develop a compliant facility," he said.

"Over the past year, we implemented the Hong Kong Convention standards and obtained certification from Bureau Veritas. We have also moved forward with certification from ClassNK."

Although the yard is still awaiting final ClassNK certification, Rubel said NYK Line decided to enlist the facility based on its compliance practices.

"We want to prove ourselves as a world-class ship recycling facility," he added.

Founded in 1885 and headquartered in Tokyo, NYK Line operates a global fleet of more than 800 vessels, providing container, bulk, energy and car carrier shipping services along with terminal and air cargo operations.