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2026 July 16   16:44

Turkey sets 50% tonnage floor in ship-scrapping incentive overhaul

Turkey has tightened its state-backed ship replacement scheme by imposing minimum tonnage thresholds and new eligibility rules for owners and contractors, according to Turkey’s Official Gazette.  

The amendments, published on 16 July 2026 and effective immediately, require a vessel entered for scrapping to have been registered in the beneficiary’s name for at least three months in either the National Ship Register or the Turkish International Ship Register.  

Replacement ships built for scrapped commercial vessels, sea craft or inland-water craft of 12,000 GT or more must have gross tonnage equal to at least 50% of the vessel being removed.  For vessels below 12,000 GT, the replacement must be at least one-third of the scrapped vessel’s gross tonnage.  

The revised regulation also widens the definition of eligible contractors to include coastal facilities owned by individuals or legal entities licensed under Turkey’s Free Zones Law.  

Those contractors will not need a separate coastal facility operating permit.  The amendments do not allocate additional funding, identify beneficiaries or estimate how many vessels could enter the programme.  

Turkey introduced the incentive framework in April 2021 to support construction of new vessels replacing scrapped Turkish-flagged ships. The rules were amended previously in June 2022 and are administered by the Ministry of Transport and Infrastructure.

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