INVEST IN THE FUTURE OF GREEN SHIP RECYCLING
Africa’s only green ship recycling company. 34South is a Development Company in partnership with the Industrial Development Corporation of South Africa Ltd (IDC)
34 South is Financially Feasible
Having just concluded its expansive Bankable Feasibility Study, 34South is proud to announce that their proposed Green Ship Recycling Facility is attractively profitable.
34South Detailed Design Commencement
With preliminary design & Bankable Feasibility completed, detailed design is planned to commence shortly.
34south – Timing is KEY to success
As global pressures mount, the requirement to utilise EU accredited, green ship recycling facilities is increasing. 34South is poised to maximise on this opportunity.
Finance is a Corner Stone
The market research and viability study, by independents, has concluded that the project is commercially viable.
The detailed financial model extended over an initial (and renewable) long term land lease period and confirmed the commercial viability with result markers in line with investing and banking due diligence requirements. This included a full cashflow spreadsheet. The project outcomes included, inter alia, NPV, payback periods and IRRs (both project and equity). The IRRs exceeded investor and funder entry points.
+10
YEARS ESTABLISHED
+18000
LDT SHIPLIFT CAPACITY
+500+
Sustainable Job Creation
WHAT MAKES 34South AN INVESTMENT OPPORTUNITY?
Growing environmental and labour concerns in the global ship breaking industry present a desperate need for compliant Green Ship Recycling Facilities. The global ship recycling industry is dominated by ship breaking yards in South East Asia. In 2019, approximately 90% of all obsolete ships ended up on beaches in India, Pakistan or Bangladesh. These shipbreaking yards demolish obsolete vessels under rudimentary conditions through a practice termed “beaching”. Beaching inevitably pollutes the ocean and its surroundings and creates unsafe working conditions, as most of the work is done manually. This makes the option of an EU accredited, green ship recycling facility, closer than the unregulated shores of the Asian sub-continent, a breath taking ship recycling alternative.
The demolition of ships is a hazardous and labour-intensive process. It can present great risks to the maritime environment and to the labour rights of its employees if the vessel is not recycled in a safe and sustainable manner. With a combination of changing environmental legislation and increased stakeholder pressure, compliant green facilities that offer competitive vessel purchase prices are gaining increased prominence in the global ship breaking industry.
“We have audited and selected specific shipyards to recycle vessels up to our standard and have our own team on the ground to check if they operate in line with our policies.”
– Vice President of Chartering, Global Shipping Company.
The shift in the industry is further promoted by shipping companies implementing their own internal stringent ship recycling regulations that ensure that their end-of-life vessels are recycled in compliant facilities. This changing market dynamic will continue to open opportunities for certified Green Ship Recycling Facilities in key locations. The planned ship recycling facility – 34South – located along the West Coast of South Africa in the Saldanha Bay Industrial Development Zone offers a prime location for end-of-life vessels passing through the Cape of Good Hope and bypassing the tolls of the Suez Canal.
The 34South facility will be accredited according to the EU Ship Recycling Regulations and maintain state of the art equipment by making use of a shiplift and transfer system, ensuring that vessels are decommissioned in an environmentally safe manner compared to the rudimentary method of beaching. The shiplift and transfer system will support a common user philosophy and can create economies of scale by accommodating more than one vessel at a time. The planned throughput is initially 360 000 LDT per annum rising to 600 000 LDT. The 34South planned facility is supported by the Industrial Development Corporation (IDC) of South Africa, as its largest shareholder.
Project Time Line
2010
34South identified the growing need to put alternatives in place for environmentally and socially safe alternatives to the concerning ship breaking practices taking places in the Asian sub-continent.
2014
The concept of developing a Green Ship Recycling Facility in Africa was expanded upon, following the further international exposure of the environmentally unacceptable beaching practices in South East Asia. This concept gained traction with the start of a part time Pre-feasibility study by the two founding engineering associates.
2018
The IDC confirmed their intention to back the project and to allocate funding towards the Bankable Feasibility Study. The 34South CC is converted into a Private Company, dedicated to being the Special Purpose Vehicle for the facility development, with the IDC as the majority shareholder. The market research studies began in earnest with focus on ship supply and scrap demand. The facility concept design began in parallel.
2020
The bulk of the Bankable Feasibility Study was completed and included the commercial viability conclusions and preliminary facility design. The major capital item is the shiplift and transfer system and this was costed to a level of +- 7,5%.
The Saldanha Bay Industrial Development Zone confirmed the option on 10ha of land for the 34South facility.
2021
The Bankable Feasibility Study draws to completion with the addition of the detailed financial model. Discussions continue with the Saldanha Bay Industrial Development Zone and the Transnet National Port Authority around their contribution and participation in the facility. Marine infrastructure environmental impact studies continue.
Largest Current Investment Partner
South Africa’s national development finance institution, the Industrial Development Corporation (IDC), is backing 34South to establish a Green Ship Recycling Facility in the Saldanha Bay Industrial Development Zone on the country’s West Coast.Read more >
Recent short articles
Green Compliance
A Green Ship Recycling Facility in South Africa. Growing environmental and labour concerns in the global ship breaking industry present a desperate need for green complaint ship recycling facilities.
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EU Accredited
The first Certified “EU accredited” Ship Breaking Facility in Africa. As demand for compliant ship breaking facilities increases, updates to legislation will open opportunities for compliant facilities outside of the European Union.
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International Trade Boost
A Green Ship Recycling Facility that will boost international trade for South Africa’s scrap metal industry. As stricter environmental standards are set in place for the steel production industry, the global demand in scrap metal will increase.
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A planned Green Ship Recycling Facility located along the West Coast of South Africa intends to meet all the requirements stipulated by the EU commission. This facility known as 34South, will be the first EU accredited Green Ship Recycling Facility in Africa, making South Africa amongst the first non-OECD countries that are able to accept these end-of-life vessels.