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56

2011

DISHONORABLE DISPOSAL

Recent evidence even points to the fact that domestic recycling may win the mantle of “best value consideration” with externalities ignored. This is due to a combination of factors including commodity price increases, a more steady supply of ships allowing for maintaining an active workforce in several facilities, and increased competition due to greater activity. Furthermore, a well-established and trained workforce allows for faster turnover of ships than other methods and thus lowers government storage and maintenance costs.

High steel prices and strong competition in the domestic scrapping industry reduced costs (negative value) to the government to an average $79/ton in 2007 for a profit (positive

value) of $21/ton in 2008.165

Remediation costs

are well below that of artificial costs approximately $554/ton.

reefing which Ship recycling

is economically sound: it creates local jobs, provides commodities for sale and eliminates most externalities associated with non-recycling

options.

It

is

clearly

a

best

value

solution.

v. Conclusion It is clear that the domestic ship recycling facilities are beginning to see increased volumes, particularly now that export is off the table and the Suisun Bay fleet is being scrapped as part of the settlement in the NRDC lawsuit and the poor condition those ships are generally

in.

However, unless

the

Obama

Administration

enforces

its

“Lead

by

Example”

mandate

under

the the

October 2009 Executive Navy and MARAD review

Order 13514 their policies,

and and

account for all externalities, ocean reefing and SINKEX could gain divert many ships to the ocean

dumping via traction and bottom that

could

be

recycled

domestically.

165http://www.whitehouse.gov/omb/expectmore/detail/10004010. 2006.html

BASEL ACTION NETWORK

The 15 mile long Brownsville Ship Channel connects the Port of Brownsville in Texas with the Gulf of Mexico. Several leading green U.S. ship recycling companies operate along this stretch. Image Source: www.clui.org/lotl/v33/k.html

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