29 November 2015

India’s Alang Bazaar feels pinch:

ALANG, GUJARAT // For several kilometres on the approach to the ship-breaking yards of Alang, shops and stalls line the stretch of road selling the array of goods retrieved from scrapped ships, ranging from crockery and sun loungers to lifejackets and even lifeboats.

An entire industry has grown around the area’s ship recycling sector and it has become known as Alang Bazaar.

For years, these businesses managed to do a roaring trade. Word that a major cruise ship had docked in Alang to be scrapped would draw hotel and restaurant owners from miles around, as they looked to furnish their establishments with bargain-priced goods.

But business in Alang Bazaar has dwindled in recent months because far fewer ships are arriving because of lower steel prices and a soft rupee, which has made scrapping ships financially unviable for ship-breaking firms.

As a result, shops are unable to replenish their stock and draw customers.

Ramesh Bhai, 66, has no customers in his large shop and has not made a sale for days. He has hundreds of products — including compasses, ropes, oil, kitchen appliances — which he says he buys from traders who buy the goods from the ship-breaking companies.

“Business has been really bad for the past three months,” he says. He has had the shop for the past three years.

“I’d like to get out of the business but who is going to buy everything in here? I wouldn’t get my investment back.”

He says he has more than 2.5 million rupees (Dh138,000) tied up in the goods in his store.

A few kilometres along the road, Dilip Patel is in a similar quandary.

Eight months ago he took over a shop that sells parts from ships, including lights and navigation equipment. He thought he was getting a good deal because the owner was desperate to sell up, but now he says he believes he made a big mistake.

“I was a farmer before and I thought this business would be better,” Mr Patel says. “I thought I was going to make a profit but now I’m in a loss. If business doesn’t pick up I’ll have no choice but to go and work as a labourer.”

Source: the national. 28 October 2015
http://www.thenational.ae/business/economy/indias-alang-bazaar-feels-pinch

India’s graveyard for ships dying to get hold of customers:

India’s graveyard for ships dying to get hold of customers

ALANG, GUJARAT // Gaurav Mehta proudly recalls the day his company was awarded a Guinness World Records title for the largest ship to be scrapped a few years ago.

The task of ripping apart the 1,504-foot-long tanker, Seawise Giant, was completed in nine months by 500 labourers on the west coast of India, in the state of Gujarat, on the shores of Alang, the world’s biggest ship-breaking yard, often described as “a graveyard for ships”.

Today, Mr Mehta’s vast plot on Alang’s beach is empty and idle, however, except for a lone stray dog gambolling about the open stretch of sand and water. Low steel prices amid a glut of cheap Chinese imports, along with the weakness of the Indian rupee, mean money will be lost in the current market from buying and scrapping a ship. That’s why his business has been on hold for the past month, he explains. Just 30 of the 130 once operational ship-breaking plots at Alang are active while the others have shut down, figures from the Ship Recycling Industries Association India reveal.

“We’ve completely stopped, meaning I don’t have a vessel to scrap,” says Mr Mehta, who is a director of Priya Blue Industries, a ship-breaking company owned by his father. “The market has been going down and also the dollar is increasing, so because of that we were losing too much money. The shoreline used to be full of ships. In the good days, there were very good margins.”

Cruise liners that once carried hundreds of tourists to exotic locations and huge container ships that made voyages to far-flung ports are among the vessels from all over world that have ended up on Alang’s shores after they are deemed to have come to the end of their working lives. They are scrapped mainly for their steel because the metal can be sold on for use in construction, for example. Other components of the vessel, including the mechanical parts, lifeboats and furniture, are also sold off to maximise revenues.

Until recently, Alang’s beaches were swarming with activity as ship-breaking firms profited from this labour-intensive, grimy exercise of demolishing these vessels. This dirty work can more easily and cost-effectively be done in countries such as India, Bangladesh and Pakistan, because of lower labour costs and fewer restrictions when it comes to dealing with hazardous materials such as asbestos and lead, as well as environmental pollution, compared to many other parts of the world. Now just a handful of ships are being torn down in Alang.

“We don’t really have any business,” says Pradeep Bansal, who owns Shreeji Marine Agency and acts as an agent for ship breakers in Alang. “We are doing nothing. I’m just spending money, losing money.”

Data from the Ship Recycling Industries Association India shows that the number of ships being scrapped at Alang has fallen sharply over the past three years. In 2012, the industry reached a peak, with a total of 432 ships recycled at Alang. That reduced to 306 in 2013, then to 286 in 2014. In the first 10 months of this year, only 164 ships scrapped, compared to 251 in the same period last year. Last month, only four ships were recycled in Alang, while there were 16 in the same month last year and 40 in October 2012.

“It’s pertinent to note that forex and inventory losses would have been staggering had ship-breaking activity continued at the [same] pace,” according to Crisil Ratings, a unit of Standard & Poor’s rating agency.

Those owners of ship-breaking businesses “with deep pockets have so far managed to sail in these choppy waters”, according to Crisil. “The worry is, if steel prices don’t rise and the rupee remains volatile, the world’s largest graveyard for ships could turn into one for shipbreakers, too.”

The rupee has depreciated to more than 66 against the dollar compared to about 62 a year ago, making it more costly for breakers of ships to buy vessels.

This has “added to the woes of an industry already reeling under 12 billion rupees [Dh659.8 million] of cumulative forex losses in the last three fiscals”, Crisil says.

“The 12-month period [to September this year] saw domestic steel demand muted, resulting in a 23 per cent decline in average realisation on scrap steel from 26,504 rupees per tonne in October 2014 to 20,398 rupees per tonne in September 2015. The price of scrap steel, which was declining between 2 per cent and 4 per cent on a monthly basis, plunged nearly 20 per cent after China moved to de facto devalue the yuan in August 2015.”

The ship-breaking plot of VMS Industries in Alang offers a glimpse into the heydays of the industry and just what a huge undertaking it is to demolish a ship. In the heat of the afternoon sun, 200 labourers are at work dismantling a bulk carrier, which used to be owned by a German company. A team of men rushes by carrying a steel plate, anxious to offload it on to a lorry as they buckle under its tremendous weight. Others are on the beach using blowtorches to cuts sheets of metal into smaller pieces. Many more are on the ship itself, gradually tearing it apart.

Ajit Kumar Jain, whose family owns the company, says he remains optimistic about the industry, although other shipbreakers in Alang say he will definitely make a loss on the ship currently being scrapped.

“We will buy another ship after we finish this one,” says Mr Jain. “I don’t think the market will go down further. In this business, or any business, it may be up or it may be down. One year you gain and one year you lose. It’s not confirmed that we will lose money on this ship. We’ve only scrapped 10 per cent of it so far, so perhaps tomorrow the market may be up.”

Weary labourers from various sites congregate at a chai stall in Alang on a midday break.

“Many of the labourers have left Alang because there isn’t enough work for everyone,” says Balram Bahra, 20, from the eastern Indian state of Odisha. He has worked in Alang for the past three years, loading steel plates on to lorries, earning 240 rupees a day. He says he is worried about his livelihood, and may have to return to Odisha to become a farm labourer.

Workers in Alang typically come from poor states including Bihar, Odisha, and Uttar Pradesh.

Labourers explain that they would earn less than half of what they can make in Alang if they remained in their home states. Mr Bahra says that he would earn 100 rupees a day labouring on a farm in Odisha.

Another Alang labourer, Rohit Pradhan, 38, also from Odisha, says he likes the work, despite the fact that it is tough and he has scars to show from various injuries he has suffered from his 20 years at the ship-breaking yard.

“I’m worried there will be fewer and fewer jobs,” says Mr Pradhan, who supports his wife and two sons with the 300 rupees he earns a day.

And Mr Mehta is also concerned that the industry will not pick up any time soon.

“You can buy a new plate at the same price as a scrap steel plate because of China, so no one is going to buy scrap steel,” he says, adding that ships are going to Pakistan and Bangladesh now instead of India, where labour is even cheaper.

“We try to remain hopeful that things will improve,” says Mr Mehta. “This business has always been a cycle. But this time we are not very hopeful because it has never been so bad.”

Source: the national. 28 November 2015

20 November 2015

Demolition of Bonita Springs landmark ship in progress

BONITA SPRINGS, Fla.- A well-known landmark that sat for years on U.S. 41 in Bonita Springs is being torn down on Friday.

A ceremony was held around 10 a.m. to begin the deconstruction of the massive ship. Crews say by the end of the day, it will all be just a pile of rubble.

A brand new, senior living development called Diamond Oaks Village will be built on the property.

Bonita Springs officials say it’s hard to see landmarks go, but in this case, it’s time.

“When you lose a landmark like this, it’s hard for everybody because it’s been here for so long. But the fact is, change is hard, but this is an important change for the city. This will bring new life, new faces in this area,” said Deputy Mayor Steve McIntosh.

Construction has already begun on the new development in the back of the property. It’s expected to be completed in 15 months.

Source: wink news. 13 November 2015

Alang ship-breakers in troubled waters:


Recent meltdown in steel scrap prices, coupled with decline in rupee value against the dollar, seems to have taken the wind out of the sails of ship-breakers in the country.

The 12-month period saw domestic steel demand muted, resulting in a 23 per cent decline in average realisation on scrap steel (a key raw material in secondary steel making) from ₹26,504 per tonne in October 2014 to ₹20,398 in September 2015, said credit rating agency Crisil in a note on Monday.

20% fall in steel prices

“The price of scrap steel, which was declining between 2 and 4 per cent on a monthly basis, plunged nearly 20 per cent after China moved to de facto devalue the yuan in August 2015,” the Crisil note said.

The industry operates on a short cash cycle. A small ship is dismantled in six months. However, scrap is sold every month. Given the sharp decline in the price of scrap steel since August, the industry, despite its operating discipline, is estimated to have taken a knock of ₹120 crore.

Rupee depreciation

Around 9 per cent depreciation in rupee in the 12 months to September 30 – touching ₹66 a dollar from ₹61 a dollar seen in October 2014, has added to the woes. Today it is ruling ₹66.02 a dollar. The industry in the last past three fiscals incurred about ₹1,200-crore loss in foreign exchange.

As a practice, ship-breakers buy condemned vessels based on letter of credit in foreign currency, which typically has a maturity period of six months. Indian ship-breakers, however, do not hedge foreign currency exposure, as the hedging cost is perceived to have additional depressing impact on their thin operating margin of 4-5 per cent.

In the October-September period, the value of LCs opened by 59 Crisil-rated ship-breakers, accounting for around half of the industry’s size, is estimated at around ₹1,600 crore.

Average exchange rate at opening LCs was ₹63 to the dollar. Crisil assumed that payout was done at an average exchange rate of ₹65 to the dollar, causing industry-wide forex loss of about ₹100 crore as on September 30.

Slowdown at Alang

The average number of ships dismantled at Alang in Gujarat dwindled from the industry peak in 2013. To shorten their operating cycle further and to contain the impact of volatile currency and steel prices, ship-breakers have been buying smaller vessels.

“Promoters with deep pockets have so far managed to sail in these choppy waters. The worry is, if steel prices don’t rise and the rupee remains volatile, the world’s largest graveyard (Alang) for ships could turn one for ship-breakers, too”, said Crisil.

According to industry observers, environmental issues (deaths and chemical spills are not uncommon, as unsafe dismantling processes and lack of yards for scrap vessels on the Alang beach) could bring doom to the industry.

European Commission is planning to introduce controls on beach scrapping. It is likely to allow in the near future an EU country-registered vessel to be scrapped only at approved yards with proper facilities as those in China or Turkey.

Source: the hindu businessline. 16 November 2015

Double distress in the graveyard of ships: Crisil

Adverse currency movements and a meltdown in steel prices has hit the world’s biggest ship-breaking yard at Alang in Gujarat, rating agency Crisil said in a report on Monday.

India, Bangladesh, Pakistan and China break 80% of the world’s ships.

“The rupee had depreciated about 9% in the 12 months to 30 September, 2015—touching 66/$ from 61/$ seen in October 2014—adding to the woes of an industry already reeling under Rs.1,200 crore of cumulative forex losses in the last three fiscals,” Crisil said in the report.

Typically, ship-breakers buy vessels for demolition based on letters of credit (LCs) in foreign currency which usually has a maturity of six months. Most ship-breakers do not hedge foreign currency exposure since it depresses their already low operating margin of 4-5%.

“In the 12 months to 30 September 2015, the value of LCs opened by 59 Crisil-rated ship-breakers, accounting for around half of the industry’s size, is estimated at Rs.1,600 crore. With average exchange rate at the time of opening LCs estimated at Rs.63/$, and assuming that payout on maturity was done at an average exchange rate of Rs.65/$, industry-wide forex loss would be Rs.100 crore as on 30 September, 2015, which will hurt the profitability of ship-breakers this fiscal,” Crisil said.

Also, muted demand for steel has resulted in a 23% decline in average realisation on scrap steel (major output of ship-breakers, and a key raw material in secondary steel making) from Rs.26,504 per tonne in October 2014 to Rs.20,398 in September 2015. The price of scrap steel, which was declining between 2% and 4% on a monthly basis, plunged nearly 20% after China moved to de facto devalue the yuan in August 2015.

“The ship-breaking industry operates on a short cash cycle. While a ship is dismantled over six months or so, sale of scrap takes place every month. But given the sharp decline in the price of scrap steel since August, the industry, despite its operating discipline, is estimated to have taken a knock of Rs.120 crore,” the report said.

The tough conditions have meant the average number of ships dismantled has fallen to less than 10 a month from nearly four times that in 2013, the report noted.

To shorten their operating cycle further and contain the impact of volatile currency and steel prices, ship-breakers have been buying smaller vessels.

“It’s pertinent to note that forex and inventory losses would have been staggering had ship-breaking activity continued at the pace seen in 2013. Promoters with deep pockets have so far managed to sail in these choppy waters. The worry is, if steel prices don’t rise and the rupee remains volatile, the world’s largest graveyard for ships could turn one for ship-breakers, too,” the report said.

Alang has attracted criticism globally because of the frequent accidents reported at many of the recycling facilities that dot the coast in Gujarat’s Bhavnagar district. Some 470 workers have died in accidents in Alang since it started breaking ships in 1983, according to the Mumbai-based Tata Institute of Social Sciences.

The Alang ship-breaking yards has dismantled 6,604 vessels till 2014 and produced 3 million tonnes of scrap metal annually.

Source: Hellenic shipping news. 17 November 2015

NGO Shipbreaking Platform calls on Italian owners to stop beaching their EoL-ships



Brussels – NGO Shipbreaking Platform has denounced Italian shipping companies Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli for their poor shipbreaking practices and calls upon them to take necessary actions to ensure the sustainable recycling of their end-of-life fleet as a matter of urgency. The Platform has sent letters to the Italian ship owners and the Italian Shipowners’ Association, inviting them to initiate a constructive dialogue with the NGO, a global coalition of 19 environmental, human rights and labour rights organisations working to end polluting and dangerous shipbreaking.

According to data collected by the NGO Shipbreaking Platform, the three Italian companies have since 2009 sold fifty-four end-of-life ships to South Asian beaching yards for substandard breaking: Grimaldi Group: 10 ships; Ignazio Messina: 14 ships; Vittorio Bogazzi & Figli: 30 ships. So these companies have continued to sell their vessels to shipbreaking yards that are globally acknowledged not to respect basic human rights and environmental protection standards, whilst an increasing number of international ship owners do not want to be associated with dangerous and polluting practices.

In the letter sent to the Italian ship owners, the Platform reminds the companies of their obligations under European waste laws as well as the standards for safe and green ship recycling as set in the new European Regulation on Ship Recycling. None of the South Asian beaching yards meets the requirements of the new EU Regulation on Ship Recycling. Based in the European Union, Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli are asked to adopt a ship recycling policy that is in line with EU standards and legislation.

“The NGO Shipbreaking Platform has constructively consulted with many responsible owners of vessels and has together with these companies identified sustainable solutions for clean and safe ship recycling. We would be glad to exchange with Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli about available solutions”, said Ingvild Jensse, NGO Shipbreaking Platform`s Policy Advisor and Founder.

Naples based Grimaldi Group has reacted to the Platform’s letter and acknowledged the importance of proper ship recycling. Thanking the Platform for having brought this issue to their attention, Grimaldi Group further states that they remain open to initiating a dialogue with the Platform with the aim of finding sustainable solutions for their end-of-life fleet.

Source: 17 November 2015

Ship Inn set for demolition as masterplan for Quayside and Blackfriars steams ahead

12343242

Ambitions to transform Gloucester's waterfront in two separate schemes have taken big steps forward.

Permission is being sought to demolish three key buildings as part of regeneration plans by Gloucestershire County Council for Blackfriars and the quayside area of the city.

A planning application has gone in to demolish the former County Garage, the Ship Inn and the Quay Print buildings in Quay Street.

It is the latest stage in a master plan for the site, which has proposals for 500 homes, including student accommodation, a new civic centre, magistrates' and crown court.

It hopes to improve traffic flow to and from the city centre as well as pedestrian links from Gloucester Cathedral to the Quays waterfront.

Work is due to start in April 2016.

Councillor Paul James, leader of Gloucester City Council, said the regeneration of Gloucester Docks, Blackfriars and Quayside area is a major priority for the city.

"Blackfriars and Quayside is a significant and historic area, linking the Docks, the Cathedral and the River Severn.

"Its regeneration, bringing more people to live and work in the city centre and attracting more visitors, will be a huge boost for the local economy."

He added: "We have received a planning application from the developers for the Bakers Quay area, which contains artist impressions of how the area may look. However, these were produced before the fire at Provender Mill."

In other news, business consortium Rokeby Merchant Developments has submitted more detailed plans and images of what it hopes to create in a multi-million pound redevelopment of the neglected Bakers Quay.

These stunning designs show how the plans for 155 flats and a range of bars and restaurants will look if planning officials approve the planning application, due to be decided on in January.

As part of their ambitious plans , the firm wants to build a drive through Costa Coffee as well as a 105-bedroom Premier Inn.

They signed contracts last year with the landowners to buy the site, as long as they get permission.

This was put into doubt when the principal building in the plans, the rundown Provender Warehouse, was set alight in an alleged arson attack in September.

Investigations continue to find out if the listed building can be saved but its demolition is thought likely.

Adrian Goodall, managing director of firm Rokeby Developments, said the prognosis for the warehouse was "not good" after parts of the building were warped by temperatures of 1,100C.

"It's terribly sad because the whole attraction has been the heritage nature of the development but we are still looking at all the options," he said.

"Overall, this is a very challenging site but hopefully the reward will be this development envisioned by these images.

"It's a very exciting opportunity with the news of Next coming to the Peel Centre next door. It's going to create a large attraction focus for Gloucester."

Source: Gloucester citizen.

Italian Shipping Companies Called Out Over Beaching Practices:

21317654240_e857bd2c9c_o-660x440

Responsible shipbreaking advocacy group NGO Shipbreaking Platform has called out three Italian shipping over their supposed continued use of South Asian beaching yards and is urging they take immediate action to ensure the sustainable recycling of their end-of-life fleet.

The Platform has sent letters to the Italian ship owners Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli as well as the Italian Shipowners’ Association inviting them to initiate a constructive dialogue with the NGO.

According to the Platform, the shipping companies have continued to irresponsibly sell their vessels to shipbreaking yards that are globally acknowledged not to respect basic human rights and environmental protection standards. Since 2009, the three company’s have sold fifty-four end-of-life ships to South Asian beaching yards for substandard breaking, the group said.

In the letter sent to the Italian ship owners, the Platform says it reminded the companies of their obligations under European waste laws as well as the standards for safe and green ship recycling as set in the new European Regulation on Ship Recycling.

“None of the South Asian beaching yards meets the requirements of the new EU Regulation on Ship Recycling,” the statement read. “Based in the European Union, Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli are asked to adopt a ship recycling policy that is in line with EU standards and legislation.

“The NGO Shipbreaking Platform has constructively consulted with many responsible owners of vessels and has together with these companies identified sustainable solutions for clean and safe ship recycling. We would be glad to exchange with Grimaldi Group, Ignazio Messina and Vittorio Bogazzi & Figli about available solutions”, commented Ingvild Jenssen.

The Platform noted that Grimaldi Group has already responded to the letter, acknowledging the importance of proper ship recycling and thanking the group for bringing the issue to their attention.

The NGO Shipbreaking Platform was set up in 2006 and is a global coalition of 19 environmental, human rights and labour rights organisations working to end polluting and dangerous shipbreaking.

Source: gcaptain.

13 November 2015

Cook Strait workhorse arrives at final scrapheap:

Cook Strait ferry Arahura has arrived at an Indian scrapyard.

A polluted scrapheap on an Indian coastline appears to be the final destination for a retired Cook Strait workhorse.

A picture titled "Arahura's final photo" shows the old Cook Strait ferry moored off an Indian beach framed by a polluted sky.

A ship tracking website has pinpointed Arahura on an arm of water between the western Indian states of Gujarat and Maharashtra. It is near the famous Alang ship breaking yards.

Workers carry a rope line to fasten a decommissioned ship at the Alang shipyard in Gujarat, India.

Workers carry a rope line to fasten a decommissioned ship at the Alang shipyard in Gujarat, India.
Workers carry a rope line to fasten a decommissioned ship at the Alang shipyard in Gujarat, India.

Firstpost.com this year reported the Alang ship breaking yards, where ships are winched onto beaches at high tide to be dismantled by hand, were in decline.

A flood of cheap Chinese steel and new environmental laws were to blame but there was still trade, mostly using migrant labour.

"Equipment, such as radars, engines - and even tables and chairs - is taken off and sold, while the steel from the hull is removed for scrap.

A worker sorts out the engine parts in Alang, India
A worker sorts out the engine parts in Alang, India

"The trade in Alang used to employ about 60,000 directly, with thousands more in spin-off businesses."

When the 32-year-old ship left Wellington early last month, The Dominion Post reported it was thought to be going to Alang.

An Interislander spokesman would not say how much the ferry sold for, as the new owners had asked for confidentiality surrounding the sale.

The future use of the ship, known as KiwiRail's "quiet achiever", would be a decision for the new owners, he said.

Shipping expert Peter Dawson, of Dawson & Associates, believed a ship as old as the Arahura would definitely be sold for parts, because the cost of maintaining the ship would be too costly.

He expected scrap metal from the 13,600-tonne ship to fetch more than $2.1 million on the open market.

Arahura made its last passenger journey across the Cook Strait in July.

It was the only ship in the Interislander fleet specifically designed for the often treacherous stretch of water, and had clocked up almost 13 million kilometres – the equivalent of travelling 325 times around the world.

It was the first ship in Australasia to feature a modern bridge with a cutting-edge cockpit-style design. Its capacity to handle even the roughest weather made it a vital part of the fleet.

Source: 4 November 2015
http://www.stuff.co.nz/travel/news/73664017/cook-strait-workhorse-arrives-at-final-scrapheap.html

Danish Shipowners’ Association spearheads discussion on shipbreaking and recycling in London

A panel of maritime experts will discuss how the shipping industry can scrap and recycle ships without adversely impacting people and the environment in London this week – headed by Maria Bruun Skipper from the Danish Shipowners’ Association (DSA).

Each year more than 1,500 ships are scrapped and recycled – the vast majority are dismantled in South Asia, as tidal conditions and steel prices in the region make shipbreaking activities attractive. The number of ships to be scrapped and recycled will continue to grow in the coming years. Therefore, a discussion of shipbreaking methods is highly important and much needed, according to Head of Safety, Health, Environment and Innovation for the DSA Mrs Bruun Skipper.

She said: “Shipbreaking has been a problematic issue for many years now. Journalists and the media have covered unpleasant images of ships being dismantled under absolutely horrendous conditions, which has caused many to avoid the topic, as it easily becomes quite sensitive and not particularly constructive. But we must talk about it – and I am glad to be heading this part of the Shipping & Offshore CSR conference in London.

“Due to the terrible conditions in some parts of the shipbreaking industry, particularly the beaching method in South Asia, many have sought to make responsible shipbreaking a question of geography. But this would be a mistake – while some shipyards in South Asia behave irresponsibly, others do the opposite.

“For example, two Indian shipyards recently earned a statement of compliance from the classification society ClassNK. These two shipyards thereby comply with the rules set out in the Hong Kong Convention. Irresponsible shipbreaking activities can be found around the world. Our mission is to support responsibility – both in South Asia and elsewhere.”

During the Shipping & Offshore CSR Forum in London mRS Bruun Skipper will moderate the discussion by a panel of international maritime experts.

The UN maritime organisation, IMO, adopted the Hong Kong Convention in 2009, establishing standards for the shipbreaking and recycling activities of shipyards and shipping companies. However, just three countries have ratified the convention so far – and, unfortunately, Denmark is not one of them.

Source: Danish Shipowners’ Association. 4 November 2015
http://www.hellenicshippingnews.com/danish-shipowners-association-spearheads-discussion-on-shipbreaking-and-recycling-in-london/

Great Lakes workhorse shipper arrives in Turkey for decommission:

Birchglen passed down the Welland Canal for the final time at the end of the 2014 navigation season. It tied up at Montreal, after delivering its final cargo, and was retired by Canada Steamship Lines.

The ship originally served the Misener fleet as Canada Marquis. It was built at Govan, Scotland, and left there for the Great Lakes on July 11, 1983. The 222.5 metre long bulk carrier was one of three sisterships built to handle a good payload on both Great Lakes and deep sea routes.

During the winter months, Canada Marquis kept busy trading on saltwater and visited Brazil, Argentina, Germany, Russia and England to either load or unload. Then, as the warm weather returned, Canada Marquis came back through the Seaway and resumed inland service.

The ship was sold to Fednav of Montreal in 1991 and was initially named Federal Richelieu. Another sale and charter back to Fednav that year resulted in a rename of Federal Mackenzie and both traded through the Welland Canal.

The name was shortened to Mackenzie in 2001 and it was back through the Welland Canal as such in June carrying steel to Burns Harbor, Indiana. The ship joined Canada Steamship Lines late in 2002 and was renamed Birchglen for the start of the 2003 season.

As Canada Marquis, this ship was rammed from behind when ice halted forward progress in the Gulf of St. Lawrence on March 17, 1990. Then, as Fedeal Mackenzie, the vessel ran aground near Contrecoeur, Quebec, on July 14, 1993. As Birchglen, the ship made news in July 2010, carrying a record cargo of windmill components into the Great Lakes.

Following a sale to shipbreakers in Turkey, Birchglen departed Montreal under its own power on Sept. 25, 2015. It arrived off Aliaga in Oct. 14 and is shown, waiting to be beached for demolition on Oct. 21, in a photo by Selim San.

Source: Niagara this week. 28 October 2015
http://www.niagarathisweek.com/opinion-story/6058888-great-lakes-workhorse-shipper-arrives-in-turkey-for-decommission/

Scrapper’s Delight:

A tendril of hope may still float for the former KUNGSHOLM but not for three old favorites in this scrapping update.

celebrationalang11-04-15 copy 
MV CELEBRATION at Alang. Photo and copyright Sitaram 2015

With a lull in the demand for steel, the shipbreaking industry in India has slowed significantly in recent months but not enough to prevent the damaged CELEBRATION from being beached at high tide on October 29 after a long delivery voyage from Freeport. CELEBRATION is the shortened delivery name for Celebration Cruise Lines’ BAHAMAS CELEBRATION, the former Color Line ferry PRINSESSE RAGNHILD of 1981, which was damaged after striking an underwater object on November 3, 2014. After repairs were deemed too costly, the ship was laid up at Freeport and eventually replaced by the 1986-built GRAND CELEBRATION, the former Carnival Cruise Lines’ CELEBRATION, which now operates on two night party cruises from West Palm Beach under the Bahamas Paradise Cruises banner.

Meanwhile, the VERONICA, which was built in 1966 as the KUNGSHOLM and later served as P&O’s first SEA PRINCESS and VICTORIA (and numerous other post P&O career names), has been sold to Indian scrap merchants. Last used at Duqm, Oman as a floating hotel, the VERONICA’s fate may not yet be sealed. There is a “Save The Kungsholm” campaign underway to bring the ship back to Sweden to be restored in a manner similar to the SS ROTTERDAM, which is enjoying a successful afterlife as a hotel ship at Rotterdam. While efforts to find a berth in the former KUNGSHOLM’s former homeport of Gothenburg or Stockholm have been difficult at best, the new need for refugee accommodation in Sweden may help save the ship. We hope to have more details on the ship’s fate soon.

AKDENİZ well cut (3) copy
MV AKDENIZ at Aliaga. Photo and copyright Selim San 2015.

The breakers in Aliaga, Turkey are making fast work of the historic Turkish liner AKDENIZ (see related stories), which was sadly delivered for demolition a few short weeks ago.

LİSBOA 4.11.15 copy
MV LISBOA at Aliaga. Photo and copyright Selim San 2015.

Nearby, the LISBOA, the former 1955-built refrigerated cargo ship PORT MELBOURNE that was vastly rebuilt into the deluxe cruise ship DANAE in 1975, is reaching the final stages of her demolition. She last operated as Classic International’s PRINCESS DANAE and was in the midst of a refit to become (now defunct) Portuscale Cruises’ LISBOA when work was called off due to corroded plating.

Source: maritime matters. 4 November 2015
http://maritimematters.com/2015/11/scrappers-delight/

Improving working condition of ship breaking yards

With the ship breakers pledging to improve the working environment at the country's shipyards, it is becoming clear - though belatedly -- what clean and hazard-free ship yards mean not only for those working in the yards but also for manifold expansion of the industry. The pledge came at a recent meeting of a team of experts from the IMO (International Maritime Organisation) and NORAD (Norwegian Agency for Development Corporation) with the Bangladesh Ship Breakers Association (BSBA).

Concerns voiced over safety and environmental hazards associated with ship breaking in Bangladesh are not new. There are threats, too, from potential sources of supply, such as the Norwegian Ship Owners' Association (NSA), not to allow recycling of their ships in Bangladesh, unless it is done in keeping with the Hong Kong International Convention for 'Safe and Environmentally Sound' recycling of ships.  The Norwegian stand appears to be further toughened by a reported move of the European Union (EU), which accounts for 20 per cent of the total scrap vessels sold around the world, to ban export of scrap ships to Bangladesh and few other neighbouring countries. These, no doubt, are grave signals to reckon with, if the country is to see its ship breaking industry continue and thrive given the prospects. The concerns are not just expressions of anxiety as they used to be in the past, but are now clearly action-driven meant to cause a drastic cut in the availability of scrap vessels to be dismantled for recycling.

Ship breaking, no doubt, is a highly encouraging sector for Bangladesh, estimated to be worth around US$2.0 billion. While it offers employment to around three hundred thousand workers, it has the proven capacity of supporting a vast array of heavy and light engineering industries. Iron rods and billets recycled from ship scraps, considered to be of high quality, meet a major portion of domestic requirement in the construction sector. Old ships meet 80 per cent of the demand for raw materials in the rerolling mills. Experts are of the view that Bangladesh is a unique place for ship-breaking and ship-recycling as nearly all the products available from dismantled ships are being used locally. Moreover, as the advanced countries have given up on ship breaking because of the high cost of labour and accompanying compliance issues, ship breaking has all the prospects to thrive in countries like Bangladesh. It is thus of critical importance for those directly associated with the sector to make sure that the country is well poised to reap the gains from the opportunities offered by it. And this can only be done if the challenges associated with the task are met in a befitting manner.

Of late, however, there has been some noticeable progress in the measures undertaken for ensuring safe working environment of the ship breaking yards as well as for skill enhancement of the workers. The initiatives taken by the Ship Breakers Association have been reinforced by a consortium of the IMO and NORAD, established to bring substantial improvement in these areas. A NORAD-funded project, Safe and Environmentally Sound Ship-recycling in Bangladesh, is also under implementation. For the sector to rise to its expected height, it is extremely important that the concerned quarters, including the government, put in all they can to render it what is actually worth.

Source: the financial express. 1 November 2015

Taka 120 million project to improve environs at ship-breaking yards of Bangladesh

The government has finally undertaken a Tk 120 million project to make all the yards of ship-breaking and recycling industry on Sitakunda seashore with non-permeable floor under a grant from NORAD and IMO.

Under the project, the Norwegian Agency for Development Corporation (NORAD) and International Maritime Organisation (IMO) would extend financial and technical support to make the ship-breaking yards more durable, with treatment storage disposal facility (TSDF) in line with the TSDF system introduced in the shipyards of Turkey within next two to three years.

If implemented, it would help improve the environment at ship-breaking yards, make the yards safe for workers, improve waste reception facility, procurement of watercrafts for seaward pollution control and garbage cleaning crafts/barges and set up a hospital with total support system.

Leaders of Bangladesh Ship Breakers Association said a delegation comprising representatives from BSBA, senior government officials from the Ministry of Industries, Economic Relations Division (ERD), labour and manpower, environment department and explosive department recently visited Turkey to share experience with its ship recyclers.

The delegation members included BSBA president MA Taher, BSBA executive member and managing director PHP Ship Breaking Yard Zahirul Islam Rinku, joint secretaries of industries ministry Yasmeen Sultana and Ziaur Rahman Khan, Saleha Binte Siraj of ERD, ABM Sirajul Huq of labour and manpower, Moqbul Hossain of environment department and Tofazzal Hossain of explosives department.

They had an elaborate discussion on the implementation of the TSD facilities with the Turkey government officials at their Maritime Ministry, owners of ship breaking yards and director general of the coastal department, BSBA officials said.

Non-governmental organizations working at Bangladesh ship breaking yards allege that the yards on Sitakunda seacoast are polluting the villages and neighbouring areas as they don’t strictly adhere to the environmental laws and many workers have died due to non-use of safety equipment by the workers and absence of training.

The ship breakers said the ship-breaking industry is committed to support proper use of personal protective equipment (PPE) through training and awareness programmes in course of time and a lot has improved now as yard owners have engaged themselves in a battle to fight out negative image of the industry with adequate support from the government.

Following those image building steps of BSBA’s new leadership, the ambassadors of different European countries have recently visited a good number of yards and have suggested improving the situation in the country’s thriving ship-breaking industry, said MA Taher, president of BSBA.

He told the FE today that European Parliament member Jean Lambard also visited the ship-breaking yards at Sitakunda, praised the industry as a very potential sector and invited the representatives of BSBA to visit the European Parliament in Brussels of Belgium.

BSBA executive member and secretary of the BSBA Foreign Affairs Committee Zahirul Islam Rinku went to Brussels and gave a clear picture on the compliance issues and safety measures taken in the sector over last few years.

Mr. ZI Rinku said BSBA has signed a contract with a foreign consulting firm – Creative Consultant – for providing training to the trainers and workers at the shipyards at Sitakunda with the financial support of the Royal Dutch Embassy.

The yard directors, yard managers, safety officers, management representatives, foremen, cutter men and others of at least 30 yards (member yards of BSBA) participated in the ongoing course.

He said ship-breaking and recycling industry is playing a vital role in meeting internal needs of iron goods, flourishing the shipbuilding industry, generating huge employments and helping the infrastructure development, booming of re-rolling mills, small cottage and other allied industries which have been significantly contributing to our national economy.

Source: Hellenic shipping news. 10 November 2015