A vessel’s life cycle consists of the design, construction, operation, and scrapping of the vessel. Current scrapping practices often happen in South Asia and Turkey, where adverse impacts on the environment and people’s health and safety manifest itself. These negative impacts fuel the growing global criticism on the vessel dismantling industry. Academic research on this topic has mainly been focused on qualitative research of the extent of the impact, while minimal research is dedicated to the understanding of alternative dismantling processes, which could improve industry standards. Several factors including regulations and a changing market dynamic of the steel industry enabled new parties to potential market entry of the vessel dismantling business. The new parties aim to include high standards of waste management and no social harm in their business, by relying on a technology driven dismantling process. These circumstances and alternative dismantling concepts in developing countries justify an investigation on the level of competitiveness, compared to the conventional labour-based dismantling concepts of South Asia and Turkey. Therefore, the main question of this research is:
What is the level of competitiveness of technology-based, environmentally sound vessel disman-tling located in North Western Europe?
In order to create an understanding of the level of competitiveness of technology-based dismantling, a thorough analysis of the underlying problems causing global criticism had to be performed. Through literary research the historical developments and drivers of the industry have been identified in chapter 2. The adverse impact on coastal ecology and involved occupational hazards and child labour is proven in section 2.2. Following this, regulatory frameworks were drawn up to improve the workings of end of life vessel management. This resulted in more reliance on developing economies adhering to poor enforcing regulation due to non-uniform ratification of the frameworks, as discussed in section 2.2.2. Earlier research on measurement models for sustainability within the dismantling industry was mainly focused on high over managerial and social practices, instead of the dismantling process from an operational-economic perspective.
The identified knowledge gaps required for answering the main question formed the basis of the scope structuring and research methodologies. For the research methodology discussed in section 3, goal oriented identification of the best fitting method is maintained. The first area of interest for answering the main question came down to selecting and valuing the most potent feedstock for the designated area. The commercial segments and sizes are based on data analysis and holistic data set enlargement. Thereafter, selecting an adequate method for quantifying all material streams of vessels is of importance to create an understanding of the material flows and economic return of the dismantling process. Subsequently, technology-based dismantling could be investigated from an operational perspective. From the understanding of the operational requirements, the link could be made to the required investments and operational expenses. The ecological and social impact required a quantification method that would allow for inclusion in the economic performance of technology-based dismantling. By doing this, a single unit parameter can be used for answering the main question. An overview of all relevant added values and costs, impacts and streams is presented in a sustainable value stream map.
Finally, a case study was selected representing technology-based dismantling in the simulation performed. The concept which matched the scope of this research best is Circular Maritime Technology. From the simulation and calculations performed in accordance with the selected methodologies could be concluded that there are both opportunities and challenges for technology-based dismantling concepts in North West Europe. Matching the pricing level of Turkey is found to be economical viable, whilst competing with South Asia requires a level of true pricing allocation in the economic value. For operational viability, minimising the turnaround time of vessels is key for spreading the high investments over enough earnings. Adhering to the right pricing level for vessel acquisition and steel sales is key. Especially in the current phase with the absence of incentives and taxation frameworks promoting sustainable vessel dismantling.