The Republic of China has for a long time been the world's largest shipbreaker. Every year, about 200 vessels, including cargo, tanker, passenger, naval and reefer ships from all over the world make their final voyage to the Tajen and Talinpu shipbreaking yards in Kaohsiung harbor.
The scrap iron retrieved from the old vessels supplies about 75 percent of the raw materials needed by the local iron and steel industry, for processing into export goods. The shipbreaking industry therefore makes a big contribution to the nation's foreign exchange earnings and economic progress in general.
Since 1968, the volume of ships demolished in Taiwan has exceeded 1 million light displacement tons (LDTs) a year. Such a record, however, was not achieved overnight. More than 30 years ago, when the eight-year Sino-Japanese war came to an end, many private companies were formed to break down the numerous ships which were sunk around Taiwan's Kaohsiung and Keelung harbors.
With the accumulation of experience, infusion of more investments, and growing knowledge of international trade, the industry expanded from the demolition of state-owned ships to imported vessels. So far, a total of 20 million LDTs of ships has been dismantled in Taiwan.
The main factors contributing to the development of the shipbreaking industry in Taiwan are fine weather, hard-working laborers, perseverance of the shipbreakers, and government guidance. Located in the sub-tropical region, Kaohsiung has a U-shaped natural harbor which never experiences extremes of weather. With a daily income of NT$300-800 (US$8.3-22.2) depending on the type of work, many of the 10,000 workers employed in shipbreaking can afford to buy a house and settle down in the harbor area.
The main sources of old ships are London, New York, Tokyo, the old ships' trading center in Hong Kong, and the International Liner Corp.'s auction market. After information on the name and type of ship, the LDT, the launch year, and the manufacturing country have been issued in Hong Kong, prospective buyers in Taiwan double-check the information with the World Ship Annual or American Ship Annual published by the Lloyd's Register of Ship in London and the American Bureau of Ships respectively. Within 24 hours of receiving the information, the highest bidder will probably have sewn up the contract.
After the old vessel is docked it must be decontaminated before a permit for dismantling can be obtained. The scrap materials, in the form of plates, propellers, shafts, anchors, chains, turbo generators, air compressors, refrigerating equipment, cargo winches, lathes, milling machines, life-boats, gauges, steering wheels, and other items are sorted out ready for sale.
With the increasing demand for steel raw materials, the ship demolition industry in Taiwan is expected to have a prosperous future. Shipbreaking companies are confident they can maintain their position of world leadership.
