NYK Line and Oono Development, a company specializing in industrial waste management based in Matsuyama City, held a joint press conference at NYK’s headquarters on the 25th to discuss the progress of their “Future-Oriented Green Ship Recycling” initiative. In September, the two companies signed a memorandum of understanding to explore the commercial potential of ship recycling. Building on this partnership, NYK aims to begin operations in 2028, dismantling 20 medium-sized Panamax bulk carriers annually, equivalent to approximately 300,000 tons of ship scrap, according to Junichi Katayama of NYK. The company emphasized the importance of collaborating with both domestic and international shipowners to secure ships for scrapping, in addition to utilizing its own fleet.
(Text by Hirofumi Yamamoto)
Photo courtesy=NYK , Oono Development
■Ship Dismantling: From Past Practices to New Needs
Ship dismantling was historically conducted in advanced nations during World War II. In Japan, the rise of the shipbuilding industry post-war brought many surplus warships from domestic and foreign sources for dismantling. Over time, the practice shifted to emerging and developing countries, such as Bangladesh and India, where large tidal beaches facilitated manual dismantling operations.
In recent years, global efforts to combat climate change have increased demands for steel manufacturers to reduce greenhouse gas (GHG) emissions. In 2020, the industrial sector accounted for 34% of Japan’s total CO2 emissions, with steel manufacturers responsible for an estimated 40% of this total. As steelmakers transition to electric arc furnaces, which use scrap steel and emit less CO2, demand for ship scrap is expected to rise.
■A Comprehensive Approach to Green Ship Recycling
For the 2028 launch, NYK and Oono Development outlined a plan centered on using a dry dock, heavy machinery, an analysis center, an incineration facility, and a specialized dismantling facility. The dry dock, acquired by Oono Development from IHI in 2021, is located in Chita City, Aichi Prefecture. Measuring 810 meters in length and 92 meters in width, it can accommodate two VLCCs (Very Large Crude Carriers) simultaneously. The facility will dismantle 20 Panamax ships annually, each weighing approximately 15,000 tons, generating a total of 300,000 tons of ship scrap per year.
Koji Shimizu of Oono Development explained that, unlike traditional manual dismantling involving gas cutting, the new method will rely primarily on heavy machinery on land. Although the digital transformation (DX) of ship recycling is gaining traction in Europe, particularly for specific vessel types, further consideration is required for its broader application.
The plan also includes setting up an analysis center and incineration facility to handle hazardous materials and industrial waste generated during ship dismantling. By positioning the site as a specialized dismantling facility, the project aims to enhance operational efficiency. The scope of recyclable ship types will extend beyond bulk carriers to include marine structures such as FPSOs (Floating Production, Storage, and Offloading units) and domestic vessels.
■Analysis: Challenges and the Need for Collaboration
The viability of ship recycling as a business in Japan hinges on achieving profitability. According to the Japanese Shipowners’ Association, as of mid-2022, Japan’s merchant fleet (ships effectively owned by Japanese shipping companies or shipowners, each over 2,000 gross tons) totaled 2,196 vessels, ranking third globally behind Greece and China. However, Japanese shipowners traditionally sell ships overseas as secondhand vessels after 10 years or more of service.
Regulations on ship recycling yards are tightening globally, with initiatives like the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (scheduled to take effect in June 2025) and the EU-SRR (European Union Ship Recycling Regulation). In Japan, challenges remain regarding scrap pricing, labor costs, and yard shortages.
At the press conference, Katayama stressed, “Future-oriented green ship recycling cannot be realized without the cooperation of steelmakers, trading companies, and domestic and international shipowners. Administrative support is also essential, but building a recycling system for ships requires collaboration among private companies and expanding our network of partners.”
Officials from the Ministry of Land, Infrastructure, Transport, and Tourism noted that countries like Europe, China, and India regard ship scrap as a critical resource for economic security, with moves to retain it domestically rather than exporting it. For Japan, which relies almost entirely on imported resources, steel plates from ships represent a valuable asset that can be reintegrated into the nation’s manufacturing sector. The future utilization of this recycling resource is not only a matter for private companies but an essential topic for the entire Japanese industrial sector.
(Hirofumi Yamamoto)
〆日本郵船（NYK）・オオノ開發（Oono Development）、船舶解体の28年事業化目指す。年20隻規模で船舶を解体、両社は船主に協調呼び掛ける。
日本郵船と、産業廃棄物処理などを手掛けるオオノ開發（松山市）は25日、日本郵船本社で両社が進める「未来志向型グリーン船舶リサイクル」の進捗（しんちょく）状況について記者会見した。日本郵船とオオノ開發は9月に両社で船舶リサイクル事業化検討の覚書を締結している。今回、その提携を踏まえ、船舶解体事業について郵船は「2028年の事業開始を目指し、外航中型船のパナマックス型バルカーで年間20隻、約30万トンの船舶スクラップを供給したい」（片山潤一、Junichi Katayama）氏と話した。同社は自社保有船だけでなく、国内外の船主と協調してスクラップ用の船舶を確保していくことの重要性も指摘した。
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