Integrating Ship Recycling Facility into Existing Shipyard: A Study of Malaysian Shipyard

Abstract

Ship recycling in Malaysia is an unknown business as no dedicated ship recycling yard is currently operated in this country. Most Malaysian shipowners send their end-of-life (EOL) ships to prominent ship recycling yards in Pakistan, India, and China, which are key players in the global ship recycling industry. Due to various factors, establishing a proper ship recycling facility for Malaysia is challenging. One issue that arises is the ability of Malaysian yards to offer competitive EOL ship prices, which can be achieved by increasing the revenue or lowering the ship recycling process costs. It will allow Malaysian recycling players to offer a high price to ship owners and attract them to recycle their ships locally. This paper studies the potential of an integrated ship recycling facility for a Malaysian shipyard. A medium size shipyard situated at Chukai, Terengganu, was selected as a case study. The facility analysis was performed to determine share resources, and a revised layout was proposed. The prospect of ship recycling facility integration in Malaysian shipyards was discussed and summarised. The result analysis signifies that the shipyard facility can be adequately shared for ship recycling activity, and no major change is required in the overall shipyard layout. Lastly, the findings suggest that an integrated ship recycling facility is feasible for a Malaysian shipyard.