Answer:

While it is true that shipbreaking is performed extensively in India, Pakistan, Korea, Bangladesh and other third world countries, ISL has chosen not to participate for two basic reasons:  worker safety and ecological preservation.  The working conditions are deplorable and very little (if any) heed is paid to environmental considerations.  ISL is unwilling to expose its employees and / or the ecological surroundings to harsh treatment.  Since our cost structure would therefore be higher than the other companies in those areas, we would be at a competitive disadvantage.  We prefer to focus on domestic operations, where we enjoy substantial advantages.

Question:

Recent articles have alluded to a "Ship Disposal Program" being sponsored by the Navy.  What is this about?  Does it affect ISL?

Answer:

Actually, the SDP was first established in 1999 and represented a major change in the way contractors interact with the U.S. Government.  A second five-year program was awarded in 2005 and included ISL as one of three contractors. This program is being sponsored by the U.S. Naval Sea Systems Command.   Prior to this program, companies were required to purchase the ships, pay for the tow, remediation and cutting costs and bear the risk of profit based on scrap and other sales.