Analysis of current and future ship recycling capacity in Canada for small and large vessels

Transport Canada would like to undertake an assessment of the current Canadian capacity for small and large vessel recycling, including the types of barriers - factors that affect vessel owner behaviour, and the future need for such an industry.

Large Commercial Vessels
Most large ships have a lifespan of a few decades before refitting and repair become uneconomical and the vessel is no longer needed. 

For large commercial vessels that are comprised of steel (above 400GT or 24 metres), it is common practice for shipping companies to sell their obsolete ships to a foreign buyer, which are then towed to countries that specialize in ship breaking (Bangladesh, China, India, Pakistan and Turkey being the top five). 

As the term “ship recycling" implies, value rests in the materials and equipment from end-of-life ships, in particular steel and other specialized materials. It is recognized that end-of-life management for large vessels is critical in order to close the “cradle to grave” loop.A recent Transport Canada inventory shows 22 abandoned vessels that are over 100ft in length and made of steel. Additionally, it is expected that a large number of vessels in the Great Lake fleet will be retired in the coming years as they reach the end of their operating lives. An analysis of the Large Vessel Registry may provide further insight into the scope and nature of the issue (e.g. currently, over 50% of vessels in the Vessel Registry are 30 years and older).

International conventions, including the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, the Basel Convention and the Basel Ban Amendment all have implications for ship recycling.

Beyond one key dedicated facility in Port Colborne, Ontario, it is unknown whether facilities exisit in Canada that would be in a position to dismantle and recycle large ships in a manner that is recognized as safe and environmentally responsible. 

Transport Canada has completed a high level inventory  of numerous salvage, recycling, shipyards and towing companies in Canada (location, owner, services offered). Results from this assessment will be provided to the contractor for this study.

Small vessels

There are a number of smaller vessels in Canada that have been abandoned and not disposed of properly. These vessels are usually constructed from a wide variety of materials including steel, wood, and fiberglass. Distinguishing the type of hull material is necessary to determine the positive or negative economic value of the vessel, the viability of recycling, and appropriate recycling methods. 

Unlike large commercial steel vessels, there is not as strong a market for the materials from these small vessels that have reached the end of their use. It is widely recognized that fibreglass can be challenging to breakdown and recycle, in addition to the health hazards and the lack of market for end products. However, new technologies have emerged internationally and are being tested,including the conversion of waste to alternative fuels and the use of fibreglass as a constituent in cement. Additionally, wood from these vessels may be oil-soaked and of no value, and is therefore sent to landfills.

Consideration of proper end-of-life management practices is critical to effectively address both the remediation of existing vessels of concern (abandoned vessels and wrecks (derelict)) and the prevention of future vessels from becoming abandoned or wrecks. Unlike large steel vessels, small recreational and commercial vessels do not get transported to foreign companies to be recycled, but are commonly disposed of domestically (e.g. in landfills).