Ship Recycling

by

Background1

Problem Statement2

Research Objectives3

Outline of the study4

CHAPTER 2: LITERATURE REVIEW6

CHAPTER 3: METODOLOGY14

Research Onion14

Research Design14

Research Philosophy16

Research Method17

Research Strategy18

Research Questions19

Literature Search20

Keywords Used20

Data Collection and Analysis technique21

Ethical Considerations22

CHAPTER 4: FINDINGS23

CHAPTER 5: ANALYSIS29

CHAPTER 6: CONCLUSION38

REFERENCES42

CHAPTER 1: INTRODUCTION

Background

For the world trade to be sustainable and deliver economic growth, shipping industry is the pivotal industry which is primarily considered as the backbone of world trade. Although ship building is more known and prominent than shipbreaking or recycling gauging through the number of facilities and countries where ship building actually takes place, the importance of ship breaking or recycling cannot be denied regardless of the limited amount of facilities located predominantly in 5 countries, they being Pakistan, Bangladesh, India, China and Turkey (ICRA, 2012). The importance of ship recycling cannot be denied, in fact it could be easily said that ship recycling is as important as ship building; which also are related in a context. Stopford through his research study that was conducted in the year 2010, gives a clear example as to how ship building and ship breaking/recycling are related. According to him, if the merchant fleet is 1,000 m.dwt and sea trade grows by 5%, an extra 50 m.dwt of ships will be needed. If, in an addition to this circumstance, 20 m.dwt are scrapped, the total demand would be then 70 m.dwt. However on the other side, if sea trade does not grow, no extra ships will be subsequently needed and the shipbuilding demand hence will fall back to 20 m.dwt. Thus a 5% change in trade produces a 70% change in shipbuilding demand. Therefore, it can be analysed from the example that the ship recycling market is directly related to the sea born trade, which directly dictates the demand for merchant fleets which subsequently implies that ship recycling is directly proportional to the demand for merchant fleets.

Living in a country surrounded by seas that enables easy access to the sea trade routes has always posited a question pertaining to why Turkey is in a weak position among the world merchant fleet. Researches and studies that have been undertaken by the author concluded that Turkey acts a strategic role in ship dismantling and recycling. In addition to that, Turkey is the only country that recycles and dismantles ships complying with EU standards and environmental friendly policies (Today's Zaman, 2010). Thus, it is primarily as a result of this that Turkey is recognised and works as a ship-breaking centre; rather than being actively involving in world merchant fleet, for the conscious ship owners because of its strict policies for environmental issues and health and safety rules.

This dissertation is going to underline the necessity of the regulations guiding ship breaking processes and procedures, by the relevant authorities to address rising health and safety and environment friendly issues, current market supply and demand relations in accordance with market dynamics and future prospect of the market, and a close look and analysis of the Turkey's leading ship breaking company 'Leyal Shipping' so as to gather up to date information concerning current market and work processes. This will be indicated in the research questions so as to introduce the ...