29 August 2015

‘Tug’ of war over ship dismantling at SILK yard:

Amid brewing public protests, one more tug has been brought to the ship-breaking yard of the Steel Industrials Kerala Limited (SILK) at Beypore. The dismantling work will be carried out with the support of 18 workers at the SILK yard.

Though some of the trade union leaders from the area have communicated their opposition to the Port authorities and the SILK management over the dismantling activities at the yard, senior officers confirmed that they would not withdraw from the move as it was part of the lawful industrial activities of SILK in its capacity as a Public Sector Undertaking.

As part of the attempts to settle the dispute, the SILK management, on Thursday, held discussions with the opposing groups to convince them of the project and the safety measures already taken to address their concerns. However, sources said the protesters were yet to show any sign of cooperation.

Meantime, M.K. Manoharan, chairman of a State-level people’s council formed against ship breaking ventures, said the SILK, if transparent in its deal, should firstly show commitment to obtain No Objection Certificate from the Union Ministry of Environment and Forest for the project.

Source: the hindu. 28 August 2015

Singapore: Cash Buyer Says Norway's Stance Paradoxical:

ship recycling

The recent statement from the Norwegian Shipowners Association (NSA) regarding a ban on the beaching method of recycling ships used in the Indian sub-continent has drawn criticism from Singapore-based cash buyer Wirana Shipping Corporation.

The news was quite disappointing on the face of it, says Keyur Dave, CFO. “We honestly, were quite surprised to read it, as there are some Norwegian ship owners who are taking their vessels to the sub-continent for recycling, albeit only to the “green” yards. We really hope that we have understood it out of context and that there is another angle to it.

“We find it difficult to reconcile it to the fact that Norway has ratified the IMO Hong Kong Convention which does not ban beaching as far as the recycling practices and procedures are environmentally friendly, and yet this statement comes that NSA bans beaching. We hope that the recycling community will hear something positive from the NSA that reconciles the above paradox.”

Conversely, Dave welcomed the statement by Maria Bruun Skipper from the Danish Shipowners Association (DSA), stating that instead of banning any particular method merely on the basis of geography or the method of recycling, owners should look at individual yard standards.

“It would not be prudent to put a blanket ban on beaching without considering the commendable improvements made at some of the yards which are putting in time, money and efforts that are recognized and approved by a world class, reputable and proactive  classification society,” says Dave. “In our opinion, the conviction in the DSA’s statement is a direct result of their going down to Alang and seeing the situation first hand. We encourage NSA members too to visit Alang and look at the facilities in the good yards, especially those under the Class NK program and they will be able to see the substantial improvements that have been made.”

Wirana Shipping Corporation claims to be the oldest cash buyer of ships for recycling in the world. “Wirana has always been an ardent proponent of environmentally friendly ship recycling,” says Dave. “We believe that responsible recycling can be done on the beaches as well. It is not important which method is used – beaching, landing, alongside or drydock. What is important is that the environment is not damaged and workers’ safety is taken care of.

“There are international experts who are ex-classification society employees and understand the subject in depth who are able to, not only confirm that this is true but have helped at least four yards in India who practice the beaching method to raise their standards and they are now about to be certified compliant to the Hong Kong Convention of IMO signed in 2009 by ClassNK.

“One of them is our yard. The upgradation has not happened overnight. It was due to our strong belief that it is the right thing to do, that we kept on making improvements which have now culminated in the yard’s approval. We believe – and hope – that the Norwegian statement has been understood out of context.”

Source: maritime executive. 27 August 2015
http://www.maritime-executive.com/article/singapore-cash-buyer-says-norways-stance-paradoxical

Azhikkal SILK unit lands in controversy:

KANNUR: Tension prevailed in Azhikkal on Friday when the local residents clashed with the management of the controversial ship breaking unit of the Steel Industries Kerala Ltd (SILK) here, alleging that the unit resumed the ship breaking ignoring the order of the Kannur additional munsif court which issued an injunction order asking the unit to stop the work.

According to the residents and the action committee, SILK's activity was in violation of the court order and even the police supported the management.

"The court had issued the order last month, and the injunction was further extended till August 30 on the plea filed by three local residents saying that the unit was causing pollution," said action committee chairman M K Manoharan.

"Though the court has clearly asked SILK not to do ship breaking anywhere near the estuary or Valappatanam river, now they are clearly violating the order and also use the police to target the residents who opposed it."

However, when contacted, the unit management said that there is no violation of the court order and they just loaded the scrap of the ship they already broke earlier. "Moreover, the court order has clearly said the injunction is for breaking the ship near the estuary or Valappatanam river, but there is no ban on breaking the ship on the land," said SILK unit manager P Manoharan. However, he claimed that the unit has not done the ship breaking in the land so far.

At the same time, the action committee said that the management's claim is ridiculous because ship breaking is not possible on land and hence whatever they have done so far is against the court order, amounting to contempt of court. The breaking is done in the night hours, they alleged.

When contacted, district collector P Balakiran said if the SILK unit is doing ship breaking against the court order, action would be initiated against such activities.

Source: Times of India. 29 August 2015
http://timesofindia.indiatimes.com/city/kozhikode/Azhikkal-SILK-unit-lands-in-controversy/articleshow/48717897.cms

28 August 2015

‘Tug’ of war over ship dismantling at SILK yard

The tug that was brought to the ship-breaking unit at Beypore. Photo: K. Ragesh

Amid brewing public protests, one more tug has been brought to the ship-breaking yard of the Steel Industrials Kerala Limited (SILK) at Beypore. The dismantling work will be carried out with the support of 18 workers at the SILK yard.

Though some of the trade union leaders from the area have communicated their opposition to the Port authorities and the SILK management over the dismantling activities at the yard, senior officers confirmed that they would not withdraw from the move as it was part of the lawful industrial activities of SILK in its capacity as a Public Sector Undertaking.

As part of the attempts to settle the dispute, the SILK management, on Thursday, held discussions with the opposing groups to convince them of the project and the safety measures already taken to address their concerns. However, sources said the protesters were yet to show any sign of cooperation.

Meantime, M.K. Manoharan, chairman of a State-level people’s council formed against ship breaking ventures, said the SILK, if transparent in its deal, should firstly show commitment to obtain No Objection Certificate from the Union Ministry of Environment and Forest for the project.

Source: the hindu. 28 August 2015

27 August 2015

GMS Argues for Danish Stance on Beaching:

Alang

GMS, leading buyer of ships for recycling, has come out in support of statemens made by the Danish Shipowners’ Association (DSA) which refuses to ban beaching outright following the recent announcement by their Norwegian counterparts. GMS supports DSA’s position that ship recycling choice shouldn’t be based just on geography.

A delegation from the DSA recently visited ship yards in Alang, India, to see how some had upgraded their facilities to comply with the Hong Kong Convention on ship recycling. The DSA believes it is important that the market makes a distinction between those yards which use beaching and comply with the Hong Kong convention and those that do not.

GMS agrees and also feels that owners who simply decide where to recycle ships based on secondary (mis)information and geographical location do a disservice to their stakeholders and the industry. Often these decisions are made on perceptions rather than reality; political pressures rather than economic facts; irrational exuberance rather than pragmatic evaluations, said GMS in a statement. Simply throwing money does not make ship recycling green. On the contrary, it’s likely to reward inefficiencies and “fear mongering.”

GMS urges the Norwegian Shipowners’ Association (NSA) to see for themselves the improvements that have been made by some of the shipyards in Alang and is happy to extend an open invitation to members from the NSA to visit these yards so they can make their own minds up about beaching at specific yards just as the DSA has done.

Dr Anil Sharma founder and CEO of GMS said: “Yet again there is a lot of misinformation in the press regarding beaching and the Hong Kong Convention. It has been implied in certain trade press articles that the Hong Kong Convention on ship recycling bans beaching and this is untrue.

“Many of the ship yards in Alang have made vast improvements to comply with the Hong Kong Convention so declaring blanket bans on beaching without viewing individual upgraded sites does nothing to encourage other yards in the Asian sub-continent to improve their standards or persuade governments in the region to ratify the Hong Kong Convention. It is also interesting to note that negative stories or negative comments are generally made by people who have either never visited the yards in India or not visited them recently. On the other hand, those who have visited recently have made positive comments such as the DSA and the Japanese Shipowners Association.”

Source: maritime executive. 25 August 2015

Ship recycling choice shouldn't be based just on geography: Danish Shipowners Association

Ship recycling choice shouldn't be based just on geography: Danish Shipowners Assoc

The Danish Shipowners Association (DSA) says the choice of a ship recycling yard should not be based on geography or use of the beaching method, but on the individual standards of each facility.

With the Norwegian Shipowners Association (NSA) coming out last week to be the first to reject beaching as a method of scrapping ships, the debate has intensified.

The DSA noted in a statement that 60% of the world’s vessels are dismantled on the beaches of India, Pakistan and Bangladesh and that these areas in particular have been notorious for poor safety and environment conditions.

However, the DSA believes that each yard should be judged individually based on the standards it employs rather than a blanket ban on all yards using the beaching method in South Asia.

DSA Director Maria Bruun Skipper, who visited the yards in Alang in the Spring of this year commented: “A couple of the yards we visited have invested in technology and established safety procedures to ensure that ships are recycled safely and that the environment is protected against leakage of harmful substances.

“It is up to the classification societies to certify that the standards are met, but in my view it would be extremely counterproductive if the yards, which have made important investments, are excluded based on geography and the concept of ‘beaching’ as a method.”

The DSA said that ratification and compliance with the compliance with the IMO Hong Kong Convention on the recycling of ships, which is yet to come into force.

Source: seatrade-maritime. 24 August 2015

Sustainable ship recycling is not a matter of geography:

Danish_Shipowners_Association_new.jpgIt is a natural part of a ship’s life cycle to be taken out of service for dismantling and recycling. Right now there is an ongoing debate of whether the “beaching” recycling method used in South Asia should be banned. The reason why the debate often flares up is that 60% of the world’s vessels are dismantled on the beaches of India, Pakistan and Bangladesh and that these area in particular have been notorious for poor safety and environment conditions. In addition the requirements for the EU white list of yards based on the EU Ship Recycling Regulation risk to become an a priori exclusion of South Asian yards.

But Alang is not just Alang – writes Director Maria Bruun Skipper, Danish Shipowners’ Association, in an article from Spring 2015, following a visit to Alang, India. The point is that we all have a responsibility to ensure that the recycling is done without compromising neither the health and safety of the workers nor the environment:

“A couple of the yards we visited have invested in technology and established safety procedures to ensure that ships are recycled safely and that the environment is protected against leakage of harmful substances. It is up to the classification societies to certify that the standards are met, but in my view it would be extremely counterproductive if the yards, which have made important investments, are excluded based on geography and the concept of ‘beaching’ as a method. The DSA does not by any means accept poor standards, but we strongly recommend individual assessment of each yard. This is also what we advice our members to do. Unacceptable ship recycling can take place anywhere in the world”, says Maria Bruun Skipper.

“The UN’s maritime organization, IMO, has adopted the “Hong Kong Convention” which sets requirements for safe and environmentally sound recycling. Despite the fact that Denmark has yet to ratify the Convention, we do however recommend our members to follow the IMO standards and are fully in line with e.g. our Norwegian colleagues as regards the Convention’s primacy. Norway is one of the few countries who have actually ratified the Convention”, adds Maria Bruun Skipper.

The Danish position is fully in line with the European position where the European maritime organisation, ECSA is working on the global ratification of the Hong Kong Convention.

Source: Danish Shipowners Association

GMS Supports Danish Ship Association Stance on Beaching:

GMS, a buyer of ships for recycling, has voiced its support of the Danish Ship Association (DSA) which refuses to ban beaching outright following the recent announcement by their Norwegian counterparts. GMS supports DSA’s position that ship recycling choice shouldn’t be based just on geography.

A delegation from the DSA recently visited shipyards in Alang, India to see how some had upgraded their facilities to comply with the Hong Kong Convention on ship recycling. The DSA believes it is important that the market makes a distinction between those yards which use beaching and comply with the Hong Kong convention and those that do not.

GMS said it agrees and also feels that owners who simply decide where to recycle ships based on secondary (mis)information and geographical location do a disservice to their stakeholders and the industry. Often these decisions are made on perceptions rather than reality; political pressures rather than economic facts; irrational exuberance rather than pragmatic evaluations, GMS said, adding that simply throwing money does not make ship recycling green. On the contrary, it’s likely to reward inefficiencies and “fear mongering,” according to GMS.

GMS has urged the Norwegian Ship-owners Association (NSA) to take a look at the improvements that have been made by some of the shipyards in Alang and has invited NSA members to visit these in order to decide on beaching at specific yards as the DSA has done. 

Dr. Anil Sharma founder and CEO of GMS said, “Yet again there is a lot of misinformation in the press regarding beaching and the Hong Kong Convention. It has been implied in certain trade press articles that the Hong Kong Convention on ship recycling bans beaching and this is untrue. Many of the ship yards in Alang have made vast improvements to comply with the Hong Kong Convention so declaring blanket bans on beaching without viewing individual upgraded sites does nothing to encourage other yards in the Asian sub-continent to improve their standards or persuade governments in the region to ratify the Hong Kong Convention. It is also interesting to note that negative stories or negative comments are generally made by people who have either never visited the yards in India or not visited them recently. On the other hand, those who have visited recently have made positive comments such as the DSA and Japanese Shipowners Association. “

Source: marine link. 25 August 2015

Wirana Shipping Corp. buyers of ships for recycling expresses disappointment on Norwegian Shipowners’ decision to ban beaching:

Wirana Shipping Corporation, based in Singapore, are the oldest cash buyers of ships for recycling in the world. They sell the ships for recycling to India, Bangladesh, Pakistan, Turkey and China.

The company released a statement in response to the statements of Norwegian Shipowners Association (NSA) and Danish Shipowners Association (DSA).

“The recent statement from Norwegian Shipowners Association (NSA) regarding a ban on beaching was quite disappointing on the face of it. We honestly, were quite surprised to read it as there are some Norwegian ship owners who are taking their vessels to the sub-continent for recycling, albeit only to the “green” yards. We really hope that we have understood it out of context and that there is another angle to it. We find it difficult to reconcile to the fact that Norway has ratified the Hong Kong Convention of IMO which does not ban beaching as far as the recycling practices and procedures are environmentally friendly, and yet this statement that NSA bans beaching. We hope that the recycling community will hear something positive from the NSA that reconciles the above paradox.

On the other hand, we welcome and applaud the statement by Ms Maria Bruun Skipper from the Danish Shipowners Association (DSA), that instead of banning any particular method merely on the basis of geography or the method of recycling, owners should look at individual yard standards. It would not be prudent to put a blanket ban on beaching without considering the commendable improvements made at some of the yards which are putting in time, money and efforts that are recognised and approved by a world class, reputable and proactive classification society. In our opinion, the conviction in the DSA’s statement is a direct result of their going down to Alang and seeing the situation first hand. We encourage NSA members too to visit Alang and look at the facilities in the good yards, especially those under the Class NK programme and they will be able to see the substantial improvements that have been made”.

Source: Hellenic shipping news. 27 August 2015

26 August 2015

Boiler blast kills shipbreaking worker in Chittagong

A worker of a shipbreaking yard was killed in a boiler explosion in Sitakunda upazila of Chittagong yesterday morning.

The deceased was Md Ilias, 30, hailing from Jessore, said police. Co-workers said Ilias and three others workers were cutting a boiler in SN Corporation at Shitalpur when all of a sudden it exploded.

Ilias and the others, who sustained minor injuries, were rushed to Chittagong Medical College Hospital where doctors declared Ilias dead, said police.

Source: the daily star. 26 August 2015

Cylinder blast kills one at Chittagong ship breaking yard:

A worker has been killed and three others have been sustained burn injuries in a cylinder blast at a ship breaking yard at Shitalpur area of Sitakunda upazila in Chittagong district.

The deceased was identified as Md Iliash, 30, son of Sheikh Sagin Uddin, hailing from Ratanpur under Kaliganj upazila of Satkhira district, said Sub-Inspector (SI) Md Saifullah of Sitakunda police station.

The injured, Md Safiqul, 35, Julhas Uddin, 36, and Md Ismail, 36, were received primary treatment from the Chittagong Medical College Hospital (CMCH), the SI added.

Quoting the witnesses, SI Saifullah said the incident took place at one SN Corporation, a ship breaking yard, in Dakkhin Sitalpur area under Sonaichari union of the upazila at around 9:30am on Tuesday.

A gas cylinder set off while Iliash was cutting the iron sheets inside the factory using the gas cylinder, leaving the four injured, said the SI.

The coworkers took the four at CMCH where the on duty doctors declared Iliash dead, said the SI.

Nayek Hamidur Rahman of CMCH police outpost said Iliash, who sustained critical burn injuries was announced dead after whisking off at the hospital.

A case was filed in this connection with Sitakunda police station, said SI Saifullah.

Source: Dhaka Tribune. 25 August 2015
http://www.dhakatribune.com/bangladesh/2015/aug/25/cylinder-blast-kills-one-ship-breaking-yard#sthash.I2kEqJuz.dpuf

22 August 2015

Judge reproaches OSHA for ‘affirmative misconduct’ over enforcement action

Vacating citations against a Texas company, an administrative judge has lambasted the Occupational Safety and Health Administration for having “fallen short of any standard of decency, honor, or reliability” by citing the company for alleged violations occurring during a period in which OSHA had agreed in a written settlement the company could establish a program to prevent such violations.

Administrative Law Judge Patrick B. Augustine of the Occupational Safety and Health Review Commission granted International Shipbreaking Limited, LLC (ISL) summary judgment, saying OSHA was equitably barred from seeking to enforce the new citations. The decision also erased a $22,300 penalty. ALJ Augustine’s June 23 ruling (Sec’y of Labor v. Int’l Shipbreaking Ltd., LLC, OSHRCJ, Nos. 14-0031 & 14-0032, 7/27/15), was issued by the Commission, without review, as a final order on July 27. The government retains the option of appealing to the U.S. Court of Appeals for the Fifth Circuit, in New Orleans.

Applied only sparingly against the government, “equitable estoppel” may be appropriate when one party is denied a benefit after it has reasonably relied upon the misrepresentations of another party. Referencing court precedent, Augustine explained that equitable estoppel here, among other things, requires proving the government engaged in affirmative misconduct. That, in turn, requires a showing of intentional wrongdoing or reckless conduct. ISL contended that because it had breached the settlement agreement by conducting inspections during the mutually agreed-upon abatement period, OSHA should be equitably estopped from pursuing litigation.

In July 2013, OSHA inspected two ships the company was breaking up for scrap, eventually issuing citations for alleged electrical violations. The enforcement action came two weeks after the agency and the company had come to terms on an agreement giving ISL 60 days to institute an electrical safety check program, designate a competent person to inspect electrical components, hire a certified electrician, and institute an equipment-grounding-conductor program. Electrical equipment inspections were to be conducted and documented at least quarterly. In return, OSHA agreed to drop a host of citations for alleged violations involving electrical infractions, personal protective equipment, fall protection, fire prevention, and others issued in November 2011.

OSHA asserted the 2013 inspections were conducted as part of its National Emphasis Program (NEP) on shipbreaking, the citations were not covered by the 60-day abatement period in the settlement agreement, and, if it were estopped from pursuing its litigation, ISL would have a “free ride” to continue violating the law. The agency also claimed it was merely a coincidence that its inspectors visited the ships so soon after reaching the settlement.

ALJ Augustine disagreed. He determined OSHA’s NEP argument was hollow because, despite the NEP, OSHA had discretion not to inspect some ships being broken down. In addition, inspections of the two ships could have taken place either before or after the abatement period, since the dismantling process was expected to take 11 months. Besides, the judge observed, of the 21 points on which the NEP is supposed to focus, none include electrical violations, even though these were the only violations OSHA reported. Finally, Augustine was “troubled” that OSHA had engaged three times as many compliance officers for the July 2013 inspections as it had committed in 2011. “Contrary to [OSHA’s] argument, … the Court finds that there are simply too many coincidences to be coincidental,” Augustine said.

As for OSHA’s contention that the settlement agreement did not address or apply to the specific electrical violations the agency found, Augustine called that argument “patently unreasonable,” “inconsistent,” “disingenuous,” and “an intentional misrepresentation” of the agreement’s abatement provisions.

He also swept away OSHA’s “free ride” contention. The agreement, he said, was a far-reaching attempt to address electrical hazards and included a clause allowing OSHA to enter ISL’s workplaces after the abatement period ended to verify that conditions contained in the citations had been corrected. The language also committed ISL to continue good-faith efforts to comply with the law, Augustine said. ISL estimated its abatement costs came to $1.25 million.

Why would such a provision be included if not to reaffirm ISL’s responsibility to correct hazards and comply with the law during the abatement period, Augustine asked. He added, “Given the expense involved and the comprehensive nature of the abatement, the 60-day period could hardly be classified as a free ride. ... [OSHA] acted recklessly, if not intentionally, in depriving [ISL] of a mutually bargained-for right to reasonable abatement.”

Source: lexology. 20 August 2015

19 August 2015

ENMORE: 7th Ship Recycling & SNP Summit & 2015 Ship Building & Conversion Forum

SHANGHAI--(BUSINESS WIRE)--The 7th Ship Recycling & SNP Summit 2015 (SNPSR) will be held on September 7th-8th in Shanghai, China, expected to attract more than 150 attendees including ship owners, breakers, brokers, class societies, law firms, governments/associations, etc.

In the Green Ship Recycling session on September 7th, the following topics will be discussed: Outline of the Ship Recycling Convention and Activities of ClassNK, Development of IHM for New Ships and Introduction to “PrimeShip-GREEN/SRM”, Development of IHM for Existing Ships, and Development of Ship Recycling Facility Plan (SRFP). The speakers are representatives from ClassNK, and Henning Gramann (CEO of GSR Service).

Session II: Macro Economy & Shipping Market will cover: Status quo and Outlook of Chinese Steel Market (especially steel exportation) (Speaker: Wei Yingsong from My Steel), Global Shipping Market Outlook (Speaker: Tina Liu from Drewry Shipping Consultants), Opportunities Brought by ‘New Normal’ (Speaker: Michael Sun from Altaships Capital).

Session III will focus on the ship recycling market. Hot topics include: Offshore Scrapping Market (Speaker: Allan Gao from Grieg Green), Status quo of Ship-recycling Market in China and Updates on Implementation of Subsidy Policies (Speaker: Jimmy Ji, Senior Business Manager, Far East Horizon Shipping Consulting), and South Asia and Turkey Markets. The new ideas may bring new opportunities.

2015 Ship Building & Conversion Forum will be held on September 9th in Shanghai, China. This year, it is expected to attract ship owners, ship yards, design & research institutes, brokers, classification societies, law firms, governments/associations, etc.

In the first part, there will be an Overview of Shipping Market, followed by How to Help Ship-building Yards Make Breakthroughs. Topics will concentrate on cost control, market positioning, competitiveness enhancement and challenges & chances brought by new rules/policies. Status and technical barriers of ship-conversion will be discussed, as well as what most people are concerned about: marine financing and ‘Internet+’.

Who will attend?
Sponsors:
ClassNK, Sea2cradle, Wilhelmsen Ship Management

Ship-owners:
COSCO,
China Shipping,
China Merchants,
Sinotrans,
Hanjin,
Oldendorff,
CSC Phoenix,
IMC Shipping,
J. Lauritzen,
Nanjing Tanker,
Shandong Shipping Corporation,
Yang Ming Marine,
Fujian Guohang Ocean Shipping(Group), etc.

Shipbreaking-yards:
Chinese breakers: Changjiang, DSIC Ship-Recycling, Zhongxin Ship-Recycling, Xinmin Ship-Recycling, Weiye Ship-recycling, Shuangshui Ship-recycling,
Sub-continent breakers: Baijnath Melaram, R.L. Kalthia, Solar Shipping Lines, and other BSBA, PABA, SRIA members.

Shipbuilding-yards:
DSIC Ship-building,
Qingdao Beihai Shipbuilding,
Hongqiang Shipbuilding,
Bohai Shipbuilding(BSHIC),
AVIC Ship,
Jinhai Heavy Industry,
Tianjin Xinhe Shipbuilding,
Jiangnan Shipyard,
Hudong-Zhonghua Shipbuilding,
Guangzhou Shipyard International,
Taizhou CATIC Shipbuilding,
Jiangsu Yangzijiang Shipbuilding,
Qidong Fengshun Shipbuilding,
Chengxi Shipyard
And other shipyards from CSSC Group, CSIC Group, Catic Group, etc.

Ship brokers: Ace Ship Recycling, Altaships, Braemar ACM, Clarksons Platou, Far East Horizon, ICAP Robinson, Jangsoo S&P, Maersk, Optima, Total, etc.

Cash buyers: GMS, Wirana, Silvia, Shree Ram, etc.

Contacts
ENMORE
Daisy Shi, +86-21-5155 1661

Source: business wire. 18 August 2015

China's yuan devaluation hits ship recycling


Ship recycling sales slowed from 10-14 August as China's devaluation of the yuan affected the Indian rupee's stability.

On 11 August the yuan was devalued by nearly 2%, shocking global financial markets.

The Indian rupee then fell to a two-year low, hitting INR65 to the US dollar.

In India, bulkers are being sold for USD280/ldt. Prices have barely moved since falling to below USD300/ldt in July. Cash buyers told IHS Maritime they believed the market might have bottomed out.

However, Dignity Shipping's 1982-built Handysize bulker Lina-Y was sold for USD2,031,120 or USD315/ldt, reportedly because the grain-carrier was found to be in good condition on inspection.

Bryan Denizcilik's 1986-built Handysize bulker Umay fetched USD1,687,894.50 or USD316.50/ldt.

Both ships were sold to Indian interests.

It remains to be seen if these levels can be maintained in light of world economic developments.

Meanwhile, five members of the Bangladesh Ship Breakers Association have formed a cartel in the hope of restoring earnings.

Dubai-based cash buyer Global Marketing Systems however, thinks this will be tough unless prices become competitive enough to attract tonnage.

It was also quiet in Pakistan as the market there observed developments in the Indian market before committing to sales.

Source: ihs maritime 360. 17 August 2015

Pakistan looks at cleaning up Gaddani

Pakistan’s ship recycling industry is looking at following the lead taken by its neighbours in making the industry safer and greener. Both India and Bangladesh have been looking to clean up their act in the wake of international ship recycling regulation and an increasing awareness by owners that they need to find greener alternatives for recycling their ships amid pressure from NGOs. Now the time has come to improve conditions at the Gaddani shipbreaking yard in Balochsitan, according to experts attending an Islamabad forum convened by the Climate Change Ministry in collaboration with the United Nations Environment Programme (UNEP).

Pakistan’s failure to comply with more stringent shipbreaking standards puts up to 200,000 jobs at risk, the forum was told. There are some 130 yards over 10 km of waterfront at Gaddani, whose combined revenues are around Rs8bn a year.

“Efforts are being made with the help of experts from the UNEP to ensure that environmental protection and labour safety standards are enforced at the Gadani shipbreaking yard,” said Climate Change Ministry joint secretary Sajjad Ahmed Bhutta, who is also the national project coordinator of the Environmentally-Sound Management of Waste from Ship Dismantling in Pakistan.

Pakistan will institute a project to focus on the development of inventories of hazardous waste and other waste at Gaddani. Following the development of inventories, plans will be developed to assist the government and industry to establish the requisite infrastructure for environmentally safe ship recycling, according to the minister.

Source: 18 August 2015

Ship breaking: Call for proper waste management

PHOTO: AFP

ISLAMABAD: Experts have called for putting in place a stringent regime to ensure safety of labourers and manage the hazardous waste caused by ship dismantling at the Gaddani ship breaking yard in Balochsitan.

They were speaking at a policy workshop titled “Environmentally-Sound Management of Waste from Ship Dismantling in Pakistan”, organised by the Climate Change Ministry in collaboration with the United Nations Environment Programme (UNEP) here on Monday.

The experts while urging relevant agencies to take immediate measures to comply with international standards noted that lack of steps for proper management of the hazardous waste was further aggravating environmental pollution.

They emphasised that Pakistan needed to comply with international standards for safe and environmentally sound ship recycling to save the ship breaking industry from a complete collapse, which accounts for nearly 200,000 direct and indirect employments besides contributing over Rs8 billion to the kitty.

The industry is stretched over a long waterfront of more than 10 kilometres with about 130 active ship recycling yards which are operated by roughly 32 recyclers. The beach is remarkably excellent with steep water draft and almost a non-tidal zone where highest tides go up just slightly three metres, as compared to 10 metres-plus tides at Alang in India and Chittagong in Bangladesh.

The ship-breaking involves generation of hazardous waste and toxic substances, which cause environmental pollution. The pollution or contamination can have both acute and long-term effects on human health and environment. Many of the ships that come for demolition contain contaminants and dangerous chemicals.

“Efforts are being made with the help of experts from the UNEP to ensure that environmental protection and labour safety standards are enforced at the Gadani ship breaking yard,” said Climate Change Ministry Joint Secretary Sajjad Ahmed Bhutta, who is also the national project coordinator of the Environmentally-Sound Management of Waste from Ship Dismantling in Pakistan.

He said that the government was fully committed to its national and international obligations to safeguard the environment by putting in place environmental-friendly ship breaking practices.

“Pakistan has taken various initiatives for the protection of environment over the past two decades and is a signatory to a number of international conventions and protocols on environmental issues especially hazardous chemicals and wastes,” he said.

While talking about the prime goals of the project, he said, “this project shall focus on the development of inventories of hazardous waste and other waste at Gaddani. Following the development of inventories, plans will be developed to assist the government and industry to establish the requisite infrastructure for environmentally safe ship recycling”.

Pakistan Ship Breakers’ Association member Asif Ali welcomed any support that helped the ship breaking firms in Pakistan to comply with international environmental and safety standards during ship breaking activities.

Project Manager at Sofies SA, an international consultant firm in sustainability, David Martin, said that 70 per cent of ship breaking activities take place in Pakistan, India and Bangladesh. “But it does not happen in conformity with principles of environmental protection, which leads to large-scale marine pollution and health hazards for local communities because of handling of hazardous waste from ship breaking activities.”

He called for proper management o hazardous waste to control environmental degradation in coastal areas.

Source: the express tribune. 19 August 2015