29 March 2011

Agencies tread water on derelict vessels: Governments have little power until crisis level is reached

It’s not just barges that are causing headaches on the Columbia River this winter. Here, a smaller vessel is stranded on the piers of a wing dam off the eastern tip of Hayden Island. Vancouver’s Columbia Business Center is in the background.
PORTLAND — Another week, another stranded vessel on the Columbia River.

A small boat now teeters unevenly at the eastern tip of Hayden Island, impaled on the piers of a wing dam. It marks the latest in a spate of groundings over the past couple of months between Vancouver and Portland.

Authorities say this particular vessel doesn’t pose an immediate threat to the environment or river navigation.

“It’s safe, and it’s out of the channel,” said Multnomah County sheriff’s Deputy Jason Tyrus, a member of the sheriff’s river patrol unit.

Yet the vessel’s deteriorated condition may ultimately require a public agency to remove it.

Even though this boat’s plight doesn’t rise to the level of another more notorious shipwreck farther upriver, it does underscore the inability of public agencies to exercise control over festering problems on the water before they descend into crisis.

“What’s the appropriate role of the state or federal government whenever you’ve got private property that represents a threat to public safety or health — either because it’s weak structurally or it has materials on board that are hazardous?” said Jim Sachet, cleanup coordinator for the Washington Department of Ecology. “We have a process that takes time to play out … to give due process to vessel owners when they’re able to participate.”

Some owners are unable or unwilling to participate.

The 431-foot Davy Crockett, beached and broken on the north shore of the Columbia between Vancouver and Camas, is the most egregious local example. Contractors had burned through $7 million as of last week in the federal recovery operation, which began after the vessel’s owner walked away after partially scrapping the converted Liberty ship.

The Crockett, which languished virtually untended for two decades, is not the only vessel to raise warning flags among area boaters.

As the Crockett debacle began to unfold two months ago, longtime Vancouver-area boater Wayne Monroe observed that it’s not uncommon to see old boats fall into disrepair as they bounce between owners. Even owners with the best of intentions often find they lack the resources, interest or wherewithal to properly care for their boats.

Monroe recalled when it was simpler to dispose of vessels that had outlived their purpose.

“For years, boats have just been tied up against a bank someplace,” Monroe said. “It always used to be legal because no one cared about the river.”

Times are changing.

Just a few hundreds yards upstream from the Davy Crockett, the floating dock previously owned by the old Vancouver Yacht Club bobs up and down in the water against the north bank. Owner Rick Dulas reportedly purchased the assemblage for $1 from the Port of Camas-Washougal, which wanted to get rid of the vacant structure.

Dulas managed to tow it a few miles downriver before getting permission from an elderly shoreline owner to temporarily tie it up while he finalized plans for a permanent moorage near Jantzen Beach.

That was two years ago.

State agencies, the property owner and Clark County’s code enforcement office have been pressing since 2009 to have the structure removed.

Representatives of federal, state and local agencies say they have little authority to compel an owner to remove private property. As long as it isn’t actively leaking hazardous material into the water or blocking navigation, U.S. Coast Guard Capt. Daniel LeBlanc said his agency can’t just commandeer someone’s private property.

The Davy Crockett had been the subject of periodic complaints and at least one oil spill two years ago.

But LeBlanc said the Coast Guard had little cause to intervene until owner Brett Simpson jeopardized the integrity of the hull by cutting it apart late last year.

“It was a very minimal risk at that point in time because it was structurally sound,” LeBlanc said. “Had it not been for the actions of the owner, we would not have had a full-blown operation like we have now.”

Washington’s Department of Natural Resources operates a derelict vessel removal program, but it’s limited to boats of less than 200 feet in length, and its $1.7 million budget is stretched thin.

Across the river-

Oregon has only a fraction of Washington’s financial resources for derelicts, said Mike Greenburg, the Oregon Department of Environmental Quality’s on-scene cleanup coordinator for the Davy Crockett. Oregon can only act when a vessel constitutes an environmental or safety hazard — and only after it completely sinks.

The state has less than $200,000 annually to remove known derelicts. Identifying potential threats is a low priority.

“Those are underfunded programs,” Greenburg said, “and we are in the process of evaluating and researching what is out there in our river system.”

In light of the Davy Crockett debacle, Washington Gov. Chris Gregoire recently called for better coordination among state, local and federal agencies in identifying problematic vessels before they pollute the environment or prompt an expensive taxpayer-funded cleanup.

Regulators are keeping a close eye on another old barge previously owned by Simpson upriver at Dallesport. According to a citation by the Army Corps of Engineers, Simpson had illegally filled the river’s shoreline while scrapping the vessel across the river from The Dalles, Ore.

Lorri Epstein, water quality coordinator with the environmental group Columbia Riverkeeper, said the Department of Ecology assured her that the vessel seems relatively intact.

“Ecology says it’s not an immediate threat right now,” she said. “That’s great, but maybe we shouldn’t wait until it’s leaking.”

The boat impaled on the wing dam near Hayden Island doesn’t have much in the way of fuel on board and pales in comparison to the Davy Crockett, according to Terry Truan, dock master with the nearby Portland Yacht Club, who knows the owner. However, he said local authorities could have been more proactive in making sure the boat was securely anchored after the owner encountered a health problem.

“The Coast Guard and river patrol didn’t want to touch it,” Truan said. “When it breaks apart, which it will eventually, it’ll present a hazard,”
Source: The Columbian. By Erik Robinson (360-735-4551, or erik.robinson@columbian.com), Columbian Staff Reporter. Sunday, March 27, 2011

More like this

Vallejo's Mare Island shipyard swarms with activity:

From the highest point on the SS President, moored inside Mare Island's Dry Dock 2, a shipyard swarming with activity unfolds between recent rain showers.

The company that has reopened two of the former naval base's dry docks in recent months has brought its full-time employee roster up to 60, with an estimated half residing in Vallejo. Those 60 are about half way to Allied Defense Recycling's employee goal for its first year of business.

Directly in front of the President sits the SS Solon Turman, launched from San Francisco as a cargo ship in the 1960s and retired to the Suisun Bay Reserve Fleet by 1979. It is Allied's first dismantling contract with Suisun Bay Reserve Fleet keepers, the U.S. Maritime Administration.

Off to the left, the shipyard has been playing temporary host to the S.S. Jeremiah O'Brien, a World War II liberty "living" museum ship normally moored at San Francisco's Pier 45. Neighboring Mare Island industrial business Copper Crane and Rigging was performing contract work on the O'Brien and needed a mooring space, Allied business operations manager Jay Anast said last week.

From atop the President, Anast pointed to the buzzing ship-breaking work, saying that the first 1,000 pounds of metal from that ship have been committed to be shipped to Korea for sale. The ship is about 17,000 tons in total, he said. Allied is trucking the iron out to barges right now, Anast said. Although the company has toyed with shipping out its metal by local rail, Anast said the current truck-to-barge setup works best with sending the material to Korea.

The Solon Turman already has pieces sliced neatly out of its bow and stern, with more being removed daily. Cranes on the site move back and forth, carrying the chunks of ship to nearby ground for further dismantling.

Anast said he is awaiting word on bids for four ship-dismantling contracts (for the USS Clamp, SS Sagamore, USS Bolster and Reclaimer) put out to bid by the Maritime Administration in December. Also, another three ship-dismantling contracts, for the USS Point Defiance, USS Sperry and USS Thomaston, were announced earlier this month. In particular, Anast said, the Sperry should "naturally" come to Mare Island for its last days, as the submarine tender was originally launched from the shipyard in 1941.

One other Suisun Bay Reserve Fleet dismantling contract was recently awarded, for the SS Lincoln. Anast said Allied initially bid on the Lincoln's cleaning, but withdrew the offer when the company was informed the ship would need to be prioritized over the SS President. Winning the contract would have meant flooding Dry Dock 2 multiple times, Anast said. The company was temporarily prohibited from doing that by environmental agencies, as it works at installing new environmental impact mitigation measures, he said.

According to documents posted online by the Maritime Administration, the Lincoln will be cleaned in San Francisco by the BAE Systems San Francisco Ship Repair for $571,196, and sold to Texas-based All Star Metals for $675,277. Maritime Administration spokeswoman Kim Riddle said Friday that ships in the three reserve fleets nationwide are always offered for sale prior to the government agency offering to subsidize the dismantling.

Source: Times-Herald, Vallejo. By Jessica A. York.  28 March 2011


The former aircraft carrier HMS Invincible has sailed out of its home port for the last time as it was towed away for scrap and could pass Gibraltar today or tomorrow.

Invincible was sold on the Ministry of Defence auction website, edisposals.com to the Leyal Ship Recycling in Turkey for a sum thought to be about £2 million. The 210-metre ship, which has had its engines, weapons and other parts ripped out of it, will be towed for the four-week journey to Turkey.

A crowd of people including veterans who served onboard Invincible turned out to watch the ship's departure from Portsmouth, Hampshire.

The word "SOLD" could be seen written in large letters on the side of the ship.

Tom Gisby, a former marine engineering artificer, told the Portsmouth News: "I have seen the ship leave for the last time, a very sad occasion and obviously it's emotional."

As well as serving in the Falklands with Prince Andrew on board, Invincible, which was built in Barrow-in-Furness, Cumbria, served in the Adriatic and in Bosnia in 1995.

In 1998 and 1999, its Sea Harriers flew air combat patrols to enforce the no-fly zone over southern Iraq and then went on to provide aid support in the Balkans.

Source: GIBRALTAR Chronicle. | 28 March 2011

26 March 2011

HMS Invincible departs on final journey:

Aircraft carrier and Falklands War veteran HMS Invincible left Portsmouth Harbour today on her final voyage to Turkey

Crowds watched this morning as the aircraft carrier HMS Invincible was towed out of Portsmouth Harbour on her way to a ship breaking yard in Turkey.

The sun shone for her final departure, in marked contrast to the heavy rain that greeted her maiden arrival in Portsmouth 32 years ago.

Invincible played a pivotal role in the Falklands War when her Sea Harrier aircraft, together with those operating from the aircraft carrier Hermes, bore the brunt of the task force's defence against Argentine aircraft in the South Atlantic. Both ships were considered top priority targets and had either been sunk the recapture of the islands would have been virtually impossible.

She was finally retired by the Royal Navy in September 2010 after spending the previous five years in reserve.

Invincible will end her days at Aliaga, near Izmir, where it will take around eight months to reduce her from a once proud ship to 17,000 tonnes of components and scrap metal.

Source: Motor Boats Monthly. By Nick Hall. Thursday, 24 Mar 2011

25 March 2011

End Of The PRESIDENT, American President Lines PRESIDENT TYLER goes for scrap:

In the ongoing efforts to rid Suisun Bay in Northern California of the remaining inactive ships of the Ready Reserve Fleet, the second vessel in a month has left to be scrapped. The PRESIDENT was towed away from the raft of ships at the end of Row J, on March 8, 2011, the few miles to her final resting place at Allied Defense Recycling, a.k.a. California Dry Dock Solutions, on Mare Island where she will be dismantled.

PRESIDENT in Suisun Bay Reserve Fleet, courtesy MARAD.
The PRESIDENT is the former American President Lines (APL) PRESIDENT TYLER, built in 1961 as the third ship of that name. The vessel was laid down as hull #5489 at the Bethlehem Steel Company in San Francisco and launched on December 20, 1960 by Mrs. Maryon Davies Lewis. On August 3, 1961, the ship was delivered to her owners as the second and final vessel in the Sea Racer class, type C4-S1-1Qb. A sister, the PRESIDENT LINCOLN had been delivered earlier. These ships are particularly notable as they represent APL’s first attempt to build breakbulk cargo ships, also specifically designed to carry containers. The containerized cargo was carried in hold #4 just forward of the superstructure. Ironically, despite two rebuilding efforts that eventually brought their container capacity up to 410 TEU (Twenty-Foot Equivalent Units) these early attempts at containerization were never completely converted to full container ships like the rest of the fleet.

The PRESIDENT TYLER was 563.75 feet long with a beam of 76 feet. The 13,223 gross ton cargo-liner was designed by famed naval architect George Sharp. Summer displacement tonnage was 22,630 and cargo capacity was 721,656 cubic feet. In addition to cargo, the ship carried 12 passengers in 8 staterooms including a spacious suite. Public rooms were placed in an aft-facing location over two decks and included an observation lounge, a second lounge one deck higher with an adjacent card room and dining room. Outdoor deck space was provided on both levels. The ship’s complement included 60 crew members.

The Sea Racers were very similar to the earlier Mariner Class cargo ships which made up the majority of the APL fleet at the time. With a service speed of 20.5 knots they were billed as “the fastest freighters afloat, rivaling the finest passenger liners not only in speed, but in the luxury and comfort of their passenger accommodations.” All staterooms had picture windows, wall to wall carpeting, private bathrooms and were fully air-conditioned. By contemporary freighter standards, they were very nice, to say the least. As with the Mariner Class, the ship was powered by a single-screw geared steam turbine producing 19,250 HP. 

PRESIDENT at Mare Island, March 11, 2011, photo © Frank Cleope Jr.
In the short span of just over a decade the PRESIDENT TYLER went from being a state-of-the-art freighter to a somewhat obsolete example of an earlier transitional era in cargo shipping. By the early 1970’s she was relegated to month-long voyages in Southwest Asia, sailing from Singapore as far west as Bombay, India and back via Pakistan, Sri Lanka, Malaysia and Indonesia. By 1976 the itinerary had been switched to two-week voyages from Hong Kong to Singapore and Jakarta, marketed to passengers under the hipper title of “Singapore Swing” cruises. By this time, her days as an American President Lines vessel were numbered. On August 30, 1979 they traded her to the Maritime Administration, with the name abbreviated to simply PRESIDENT and registered in Washington, D.C.  The 18 year old ship was placed in the Ready Reserve Fleet at Suisun Bay where she quietly spent the next 31 years rising and falling with the tides. Near the opposite end of the raft of 12 unwanted freighters tied side-by-side was her sister PRESIDENT LINCOLN, now renamed LINCOLN. Undoubtedly, that ship will soon follow her sister to the same inevitable fate. Both ships had their designation within the mothball fleet changed to “Inactive Status” in 2001. In July of 2009, the PRESIDENT was stripped of all useable materials. In December, 2010 MARAD announced the ship would be scrapped at California Dry Dock Solutions along with the former Lykes Lines freighter SOLON TURMAN. They would be the first two ships scrapped locally in California, in a deal worth $3.1 million. Both are now being dismantled near each other at Mare Island, the PRESIDENT in Dry Dock 2, the SOLON TURMAN in Dry Dock 3. The latter ship already has her masts cut down and some portions of the stern cutaway as of March 25th.

The PRESIDENT is the 18th ship to leave the reserve fleet since October 22, 2009 when the purge of old ships began. With her departure there are still 39 ships listed under “Non-Retention Status” awaiting their turn at the breakers. Just like the PRESIDENT, each one has a story to tell.

Source: Maritime Matters. By Shawn Dake. 25 March 2011

24 March 2011

Update: Progress in Mare Island Ship Scrapping

These days, visitors to the former Mare Island Naval Shipyard may be surprised by the increased level of activity at the dry docks there. My staff was able to take some pictures of the very encouraging progress, where former Suisun Bay Reserve Fleet ships are being broken down and recycled.

These facilities at Mare Island, which are the first ship recycling facility on the West Coast, have taken a huge step towards removing the remaining obsolete ships from Suisun Bay. Furthermore, this work has provided a boost the local economy and brought jobs to the area.

I look forward to continued progress at Mare Island and the benefits it brings our community. For more information on ship scrapping on Mare Island click here, or check out our first blog on the dismantling of the SS Solon Turman.

Source: March 23, 2011

Procedure for scrapping imported goods:

Islamabad—The Federal Board of Revenue (FBR) has issued a new procedure for the mutilation or scrapping of imported goods including pipes/tubes, bars/rods, sheets/ plates, beams/girders and ship plates etc. The FBR has amended the Customs Rules 2001 through an SRO. 250(I)/2011.

According to the procedure, section 47A (Allowing denaturing or mutilation of goods) of the Customs Act would be followed by the department in this regard.

The FBR procedure has explained the details of the goods allowed for mutilation or scrapping. The following old and used items, if imported in serviceable condition along with the scrap consignments or imported separately as a scrap and found serviceable, may be allowed mutilation or scrapping, as the case may be, within the meanings of section 27A of the Act: Pipes or tubes; bars or rods; sheets or strips, slabe, plates; beams, channels or girders, used and pitted railway tracks, and ship plates cutting of various sizes with rough edges and having welded joints.

Under the procedure, an importer or his agent before filing the goods declaration shall make a request in writing to the Assistant or Deputy Collector of Customs in respect of items specified in rule for the mutilation or scrapping thereof.

The applicant will provide all the necessary Information with regard to mutilation or scrapping of goods. The applicant shall furnish all the import related documents available to the Assistant or Deputy Collector of Customs.

Source: Pakistan Observer. Thursday, March 24, 2011

Former HMS Invincible leaves Portsmouth for scrapping:

The aircraft carrier Invincible has left Portsmouth for the last time before it is broken up at a Turkish scrapyard.

The carrier, which saw action in the Falklands War, was sold through an internet site.

Wellwishers gathered at the quayside to say farewell to the ship, which was decommissioned six years ago.

It is being taken to Leyal Ship Recycling, based near Izmir, and will take eight months to dismantle.

Leyal has been involved in the scrapping of several Royal Navy ships - the destroyers Cardiff, Newcastle and Glasgow and auxiliary ship RFA Oakleaf.

The former HMS Invincible set off, towed by tugs, shortly after 0800 GMT and is expected to arrive in Turkey in about four weeks.

Sir Jeremy Black, who captained the ship during the Falklands conflict, said he felt "very sad indeed" to see the ship leave.

He said his most enduring memory of his time aboard was being "scared rigid" when a torpedo was fired at the ship.

"They fired it incorrectly and it wouldn't have hit us, thank God, because that would have spoilt my day," he said.

"In fact, it would have ruined the campaign."

Related Stories:
  1. Former HMS Invincible leaves port 24 MARCH 2011, ENGLAND
  2. HMS Invincible sold to scrapyard 08 FEBRUARY 2011, UK
  3. Internet sale for HMS Invincible 30 NOVEMBER 2010, CUMBRIA
  4. Bring mothballed ship home plea 13 MARCH 2006, ENGLAND
  5. Event marks end of HMS Invincible 03 AUGUST 2005, HAMPSHIRE
  6. Last journey for aircraft carrier 01 AUGUST 2005, HAMPSHIRE
  7. Navy to have one aircraft carrier 06 JULY 2005, UK POLITICS
Source: BBC. Thursday, March 24, 2011

23 March 2011

GMS weekly report on Pakistan ship breaking industry WEEK 11 of 2011

Another week stuck in the shadows of both Bangladeshi and Indian recyclers and to a certain extent China who at least secured some units left Pakistani buyers once again frustrated with a lack of market sales to show.
As really the only viable location in the Indian sub cont now for tankers without the gas free for hot works cert which can cost up to USD 50,000 to acquire, there has been remarkably little activity of note recently from Sellers keen only to deliver with gas free for man entry certification.
If the ongoing stalemate continues in Bangladesh, expect activity on the sales front to pick up in Pakistan once again as demand and prices remain firm around the high 400s for tankers and mid to high 400s on decent sized dry vessels.
(Sourced from GMS Weekly.com)

Source: Steel Guru. 22 March 2011

GMS weekly report on shipbreaking industry for WEEK 11

Nearly 2 weeks have passed since the announcement was made that the Bangladeshi market would reopen, and yet the official court order has yet to be signed by the judge. That has left many end buyers understandably nervous as it is still unclear exactly what new guidelines are to be put in place for those 60 approved yards.

Consequently the buying has slowed, and the much anticipated binge on units has yet to fully materialize despite some firm initial numbers coming from Chittagong.

Indeed, early signs indicated that cash buyers had expected to peg prices at region USD 500*510/LT LD for bulkers and USD 530-540/LT LDT on tankers. This was some 20 USD from reality though with decent bulkers at USD 490 and tankers some USD 25 higher. At least for much of the cash buyer as is inventory, these were the levels being talked about the vast majority of buyers were unwilling to commit on tonnage without first seeing the details of the order and exact requirements placed in front of them by the judge.

The current state of uncertainty filtered through to some of the initial deals done at high levels, with one particularly high profile and high priced 28,000 LDT bulker failing into Bangladesh at USD 518/LT LDT.

Fundamentals in both India and Pakistan remain steady though as demand and prices showed signs of improving given the imminent threat of Bangladesh opening and absorbing most of the tonnage. China meanwhile continued to snap up their share of market tonnage usually geographically positioned vessels from Chinese owners nervous of delivering to the Indian sub continent even though the prices remained weaker due to most yards having reached capacity recently.

GMS weekly report on INDIA shipbreaking industry for WEEK 11 of 2011

India started to show signs of picking up this week after a recent spell on the sidelines and there was talk once again of competing with Bangladesh on favored units in and around 8-12,000 LDT.
Indeed, on the surface, the two markets do not appear to be too far away on levels and it may not be unreasonable to suggest that the geographical position of a vessel may determine the eventual delivery destination for the time being. Bearing in mind the expectations many had for Bangladesh buyers and how they would be expected to grab most of the market vessels made available for the next few months, this is no mean feat for Indian recyders.

The usual proliferation of candidates prevails as general cargo, reefers, tweens and the like continue to be proposed to the market where there is always a buyer. Accordingly, it remained another regular week (in terms of activity) on the sales front, with a few fixtures taking place. Noteworthy was the high priced sale of the SUN SUMA, a full spare bulker that fetched an unlikely price of USD 510 per tonne.

Source: Steel Guru. 22 March 2011

GMS weekly report on Bangladesh ship breaking industry for WEEK 11 of 2011:

A note of caution crept into the market this week with many buyers expressing alarm at the fact that the judge has yet to sign the court order to give the all clear for local yards to commence the import of ships once again for recycling.

The PM has already given her vote of confidence to the industry so it can only be a matter of time before the order actually is signed with many expecting it to be at some point over the coming week. However, it could be that the Bangladesh Environmental Lawyers Association are having their say in what conditions are being put into the order before it is released to the unsuspecting ship recyclers who claim to already have a good idea of what changes to expect.

With local steel prices dropping almost USD 20 upon the reopening of the market prices have been some way from what most cash buyers have been expecting. Decent bulkers have been seeing USD 500 and below (with many recently considering USD 490 to be a more realistic figure) and tankers some USD 25 ahead even though many end buyers are reluctant to commit to tankers in particular due to the imposing new rules concerning gas freeing of all tanks.

In amongst news of pricing and uncertainty of the status of the market, certain cash buyers were busy overpaying on units and having no other option but to cancel deals.

Oil the sales front this week, Korean owners STX brought several vessels onto the market for demolition or further trading. With both being worked with the Bangladeshi option in mind, the PAN VOYAGER (6,863 LDT) and OCEAN ISLAND (11,688 LDT) went to further trading buyers at levels just excess scrap and the Capesize bulker OCEAN PARK (25,402 LDT) found one speculative demolition buyer for late May delivery 'as is' South Korea for a firm USD 450/LT LDT.

Source: SteelGuru. (Sourced from GMS Weekly). 22 March 2011

22 March 2011

Bangladesh Hold-up Spreads Scrap Fears:

Concern is growing that once again the order to lift a scrapping ban in Bangladesh may not be issued in time for ships to catch the next beaching tide.

The judge responsible for signing the document which would bring Bangladesh back into the demo market after a 10-month gap is scheduled to make a written declaration this Sunday.

But broking sources are expressing strong doubts as to whether the much-sought paper will appear.

Ed McIlvaney of EBM Shipbroking says he hopes that full details of the regulations will be released on Sunday.

The High Court decision was handed down on 7 March but issuance of the written regulations has been delayed twice already. McIlvaney intimates that he believes pressure from environmental lobbyists and Non-Governmental Organizastions (NGOs) is causing the delays.

Brokers and other sources close to the situation say that up to 20 ships may already be at anchorage waiting to be beached, following the cash buyers’ quick moves to secure tonnage.

Greek broker Dimitris Koukas says he is deeply concerned that about half a dozen bulk carriers which have been sold through his company, Optima Shipbrokers, to Bangladesh will miss the coming beaching tides.

Koukas reveals that he has brokered the sales to Bangladesh of at least three capesize bulkers, including the Polembros-controlled 138,000-dwt Good News (built 1982), and another three ships involving totally upwards of 100,000 tonnes of steel.

"Because the court order has not come out in writing, people can’t get local documentation, letters of credit cannot be issued and nothing can be done," Koukas said.

He said there were issues that could arise such as whether the vessels waiting would have sufficient bunkers or supplies for the crews to last till the forthcoming beaching tides.

The next immediate beaching tide is from 19 to 22 March and the following one from 4 to 7 April.

In addition to requirements such as tankers being gas free for hot works and the removal of toxic gases and hazardous materials from ships before cutting activities can start, the regulations are also expected to contain a number of rules that it will not be possible to initiate immediately. These include the training of labourers at an institute to be supervised by the Bangladesh Marine Academy.

"All this has a negative impact on Bangladesh. People will think twice about selling to Bangladesh buyers, despite possibly better prices," Koukas said.

Source: Tradewinds. issuer: eshiptrading.com; 18 March 2011

Attractive Prices Lure Ship Owners Towards Scrap Yards:

The dreadful state of the dry bulk market during the first couple of months of 2011, coupled with attractive prices have finally persuaded many ship owners, especially from the dry bulk segment of the market, to scrap their older vessels, in what could be a life-saving opportunity for many shipping companies.

As has been widely discussed, the faster rhythm of demolition activity could help alleviate the burden of tonnage oversupply issues that has weighed down the dry bulk market in recent months.

With Bangladesh finally reopening for business after almost 10 months of null activity, things could be picking up pretty soon. Already there are reports of rejuvenated activity in Bangladesh, although according to the latest report from Golden Destiny, some of the key rules imposed in Bangladesh suggest that toxic gases and hazardous materials from vessels would need to be cleaned prior cutting activities commence. Also, gas free for Hot Works certification would now be required at Bangladesh for wet tonnage.

No vessel that arrives locally for recycling would be permitted to anchor unless the vessel arrives in "Gas Free" safe for "Hot Works" condition.
No ballast water can be discharged at outer anchorage or at local yards.
Labourers / workers under the age of 18 would not be permitted to work on the yards.
Labourers permitted to work on local yards would need to be trained at an institute supervised by the Bangladesh Marine Academy.

"Pakistan was struggling to pick up units even when the major shiprecycling nation was out of the game and now it seems even harder to compete with India and Bangladesh. However, Pakistan buyers’ appetite remains and they are prepared to pursue aggressively new units.

China once more has been left in the last rankings, but it still snaps some high LDT purchases after its aggressive bidding on capesize tonnage.

Overall, the demolition business appears to follow an upward trend from the beginning of New Year, in terms of volume of transactions and scrap prices. Dry market’s plunge within January stimulated owner’s decision for scrapping their overaged units and pushed scrapping business 180% higher from January-February 2010. Bulk carriers seem to hold the lion’s share of scrapping business during the year to date, 36% of the total number of vessels reported to have been headed to the scrap yards, while liners follow grasping 28%. Scrap prices are hovering at higher levels from the end of 2010, with demo countries paying more than $450/ldt for dry and wet cargo, while Bangladesh’s opening seems to drive the market at levels excess $500/ldt" said Golden Destiny.

According to the shipbroker’s report, during January – February 2011, 116 vessels were reported to have been headed to the scrap yards equalling a total deadweight of 5,151,389 tons, with India being on the frontline grasping 59% of the total business. In terms of reported number of transactions, the demolition activity is 4% lower from 2010 activity, but the increased volume of bulk carrier’s demolition activity brings relief in the oversupplied segment with hopes for further scrapping in the future.

In the tanker sector, demolition activity is 48% lower than last year’s levels with liners keeping their high pace of business. During January to February 2010, 122 vessels reported to have been sent for scrap equaling a total deadweight of 4,098,825 tons with Bangladesh paying $360/ldt for dry and $400/ldt for wet cargo, India being in the sideline and tankers grasping 28% of the total business. At the end of February 2009, scrap rates were at much lower levels with Bangladesh paying $275/ldt for dry and $315/ldt for wet cargo, with bulk carriers being once more in the front run after the credit crunch of 2008, holding 45% of the total scrapping business.

Meanwhile, during the past week, several vessels are being reported this week in anticipation of the Bangladesh market opening at firm prices xs $500/ldt. With the news of Bangladesh market reopening, after almost 10 months of closure, scrap prices seem to have firmed and the volume of scrapping activity gets more torrid. Scrap buyers in Chittagong have been starved for a long time and now seem to be ready to bid aggressively new tonnage for their yards that have been laid up for several months.

The demolition scene seems to change with India and Pakistan trying to compete with the aggressive Bangladesh, while market in China has softened by $20-$30/ldt from the highs in mid – February. Bangladesh has jumped in the first rankings this week, in terms of scrap prices, by offering $500/ldt for dry and $525/ldt for wet cargo. Prices in India have also cooled off by offering $465/ldt for dry and $490/ldt for wet cargo.

Even the aggressive bidding by some cash buyers in Chittagong, there are still some worries about the full compliance of Bangladesh breakers with the restrictions imposed by the Bangladesh High Court. The week ended with 15 vessels reported to have been headed to the scrap yards of total deadweight just 349,509 tons. In terms of reported number of transactions, the demolition activity has been marked with a 11.7% w-o-w decrease with vessels of mainly bulkcarriers & tankers appearing in the frontline. In terms of scrap rates, the highest scrap rate has been achieved this week again by India for a 4,887 ldt gas tatnker at $ 540/ldt. At a similar week in 2010, 12 vessels were reported for scrap indicating a positive yearly change 25% in terms of reported number of transactions with the majority of vessels being tankers.

Source: Hellenic Shipping News. issuer:eshiptrading.com. 21 March 2011

Bringing safe water to communities: World Water Day; 22 March 2011

Despite the UN General Assembly declaring that access to safe water is a human right, thousands die each day because of water-related diseases, and many countries are not expected to meet the UN Millennium Development Goals on water.

Bringing clean water to cities is critical to achieving a healthier and more prosperous world. Globally, residents of rural areas are moving into cities in record numbers. By the year 2050, an estimated 70% of the world's population will be living in urban areas (1). To highlight the water-related needs of these fast-growing cities and the subsequent challenges faced by governments and utility companies, the theme for this year's World Water Day, March 22, 2011, is Water for Cities:

Responding to the Urban Challenge:

Many of the world's water systems are poorly maintained. More than half of the water might be lost to leakages and construction of illegal connections by nonpaying users (2). Even in cities with well-developed public water networks, the water might not always be safe to drink because of poor disinfection practices or because the water becomes contaminated once it is in the distribution network (3).

Water plays a key role in many goals of international development programs (2,4). Recent cholera outbreaks in Zimbabwe and Haiti highlight the potentially devastating consequences of deficiencies in urban water supplies (5,6). In addition to the physical health of the population, water availability and quality is fundamental for agricultural production, food safety, economic growth, educational opportunities, and environmental management.

Additional information about World Water Day activities and CDC's efforts to improve water quality and prevent disease is available at http://www.unwater.org/worldwaterday/index.html and


1. United Nations Human Settlements Programme (UN-HABITAT). State of the world's cities 2008/2009: harmonious cities. Nairobi, Kenya: UN-HABITAT; 2008. Available at
2. World Water Assessment Program. The 3rd United Nations world water development report: demographic, economic and social drivers. Paris, France: United Nations Educational, Scientific and Cultural Organization (UNESCO), and London, England: Earthscan; 2009. Available at http://www.unesco.org/water/wwap/wwdr/wwdr3/pdf/12_wwdr3_ch_2.pdf Accessed March 14, 2011.
3. Lee EJ, Schwab KJ. Deficiencies in drinking water distribution systems in developing countries. J Water Health 2005;3:109--27.
4. United Nations. United Nations millennium declaration. Presented at the United Nations General Assembly, 8th Plenary Meeting. New York, NY; September 8, 2000. Available at http://www.un.org/millennium/declaration/ares552e.htm Accessed March 14, 2011.
5. World Health Organization. Cholera: global surveillance summary, 2008. Wkly Epidemiol Rec 009;84:309--24.
6. CDC. Update on cholera --- Haiti, Dominican Republic, and Florida, 2010. MMWR 2010;59:1637--41.

21 March 2011

The 6th Annual Ship Recycling Conference 2011

Greener Ship Recycling: Seeking Sustainability
Tuesday 14 - Wednesday 15 June 2011, Grange City Hotel, London

Key Issues include:
• Bangladesh: it's impact on scrap prices and recycling capacity
• Current status of the Hong Kong Convention for the Safe and EnvironmentallySound Recycling of Ships and regional legislation – is a single global standard for ship recycling achievable?
• Shipowners' options for green ship recycling – innovative ways to implement green recycling processes
• Identifying the immediate goals of the maritime sector before the Hong Kong Convention becomes mandatory
• Recent developments and outlook for the world's leading ship recycling nations: India, Pakistan, Bangladesh, China and Turkey
• Business development opportunities for ship recycling facilities in other regional markets: the case for Europe

Expert Speakers:
> Dr. Nikos Mikelis, IMO
> Julio Garcia-Burgues, European Commission
> Henning Gramann, Green Ship Recycling Services
> Cecilia Müller, Maersk Line
> Dr. Anil Sharma, GMS
> Grant Hunter, BIMCO
> Stephen Drury, Holman Fenwick Willan
> Steve Wansell, Mideast Shipping & Trading
> Rakesh Bhargava, Wilhelmsen Ship Management
> Dimitri Ayvatoglu, LEYAL Ship Recycling Ltd., Turkey
> Adnan Ul-Hasan, Registro Italiano Navale (RINA) Pakistan
> Dr. Shyam Asolekar, Indian Institute of Technology Bombay (IITB)
> Dr. N. M. Golam Zakaria, Bangladesh University of Engineering and Technology (BUET)


Chair's welcome & opening remarks
- Henning Gramann, Director, Green Ship Recycling Services


Market watch 2011: volume, prices, forecasts
- Steve Wansell, General Manager, Mideast Shipping & Trading


Basel Convention: current status of Equivalency
• Latest developments
• COP 10: what to expect
• Potential future relationship between Basel and Hong Kong

EU regulatory review:
• EU's policy on ship dismantling in light of the Basel and Hong Kong Conventions
- Julio Garcia Burgues, Head of the Waste Management Unit, Directorate General Environment, European Commission


The politics of ship recycling: the impact of current & future regulations on the recycling sector
Panelists will reflect on current and future regulatory standards and discuss how the industry can overcome the frequent conflicting policies of various stakeholders to achieve a single global standard for the ship recycling industry.

Panel moderator & introductory remarks:
- Dr. Nikos Mikelis, Head, Marine Pollution Prevention and Ship Recycling Section, Marine Environment Division, IMO

Panelists to include:
I. Tuomas Aarnio, Legal Adviser, Ministry of the Environment,
II. Environmental Protection Department, Finland
III. Claude Wohrer, Secretariat General de la Mer, Chargee de Mission, France
IV. Ingvild Jenssen, Director, NGO Shipbreaking Platform



Ship recycling processes: a measure of Social Corporate Responsibility
- Cecilia Müller, Corporate Responsibility Manager – Sustainability, Maersk Line

Green recycling: what solutions are available to shipowners?
• Evaluating shipowners' options
• Counting the costs – does green ship recycling pay?
• Does company CSR outweigh the cost of green recycling?
- Rakesh Bhargava, Global Green Re-Cycle Manager, Wilhelmsen Ship Management

Extending the cash buyers' service portfolio:
• Hong Kong Convention: role of cash buyers
• Assisting shipowners to prepare for an Inventory of Hazardous Material (IHM)
• Yard vetting – assistance in preparation for SRP approval and supervision of recycling as per convention requirements
• Assisting shipyards with ISO certifications
- Dr. Anil Sharma, President, GMS


Greening of ship recycling in India: challenges & way forward:
- Dr. Shyam R. Asolekar, Professor, Centre for Environmental Science and Engineering (CESE), Indian Institute of Technology Bombay (IITB)

Development of ship recycling facilities in Bangladesh:
• An overview of current developments
• Performance and contribution towards socio-economic development
• Case study: addressing relevant issues on the basis of field data
• Challenges ahead
- Dr. N. M. Golam Zakaria, Associate Professor, Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology (BUET)

Norad's ship recycling project in Bangladesh:
• Main focus – Norwegian contribution
• Stakeholders – ownership
• Importance to the Bangladesh economy
• Challenges to include physical infrastructure
- Bj rn Holter Eriksen, Director, Norad

Ship recycling SWOT analysis for India & Bangladesh
(SWOT – Strength, Weakness, Opportunity and Threat)
• Case studies:
Ship clearance for recycling – anchorage to breaking [breakers] – India and Bangladesh
Ship recycling processes and handling of hazardous waste
- Dharmesh Jani, Managing Director, Creative Consultants (India)

Development of ship recycling facilities in South Asia:
Traditional working practices
Restructuring and local mindsets
Opportunities and threats
- Adnan Ul-Hasan, Regional Inspection & Certification Agency, Registro Italiano Navale (RINA) Pakistan

Activities in the major international ship recycling nations: lessons learned & future prospects
I. Dimitri Ayvatoglu, Department Head, LEYAL Ship Recycling Ltd., Turkey
II. Dr. Shyam R. Asolekar, Professor, Centre for Environmental Science and Engineering (CESE), Indian Institute of Technology Bombay (IITB)
III. Dr. N. M. Golam Zakaria, Associate Professor, Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology
IV. Adnan Ul-Hasan, Regional Inspection & Certification Agency, Registro Italiano Navale (RINA) Pakistan
V. Dharmesh Jani, Managing Director, Creative Consultants (India)
VI. Nigel E Smith, International Registrar of Shipping & Seamen St.Kitts and Nevis International Ship Registry

Regional markets: opportunities for sustainable ship recycling in Europe
Private and public vessels: the case of Spain
Actions taken in the EU
EU LIFE+ project RECYSHIP: project outline
Current status and projections: the RECYSHIP proposal
- Antonio Barredo Arias, Technical Director, LIFE+ Project Recyship
Chair's concluding remarks & close of conference


Banned Substances & Green Ship Recycling: How to Minimise Shipowners' Liability
Monday 13th June 2011, Dexter House, London

Key Highlights Include:
- Detecting asbestos-containing materials (ACMs) onboard current vessels and new buildings
- Identifying operational risks for shipowners and related liability issues for the maritime industry
- Examining methods for the management of ACMs onboard

Workshop Leaders:
• Henning Gramann, Director, Green Ship Recycling Services
• Marc van de Poel, Managing Director, m.a.r.c BV Maritime Asbestos & Recycling Consultant

Workshop leader's opening remarks, introduction & workshop objectives
- Henning Gramann, Director, Green Ship Recycling Services

Asbestos-containing materials (ACMs) onboard current vessels & newbuildings
• Appearance, detection and sources of asbestos
• Where to look for asbestos
• Other materials of concern
• How to avoid "unwanted installation" of asbestos
• Asbestos on newbuildings and new asbestos materials
- Marc van de Poel, Managing Director, m.a.r.c BV Maritime
Asbestos & Recycling Consultant

Operational risks for shipowners & related liability issues for the maritime industry
• Compensation claims by and against shipowners
• Chain of information and data management: how to stay clean
• Trustworthy or not: how to handle the information received
• Flag and Port State Control matters
• Loss of charter contracts and bans from territorial waters: operating risks for shipowners
- Henning Gramann, Director, Green Ship Recycling Services

Open discussion:
Delegates review the morning's presentations and put questions to the speakers.

Considerations for management of ACMs onboard
• Why should shipowners know about asbestos onboard?
• How to reduce risks and manage the problem
• It is not always necessary to remove asbestos: what are key considerations when you do?
• How can you raise crew awareness?
• What is the legal framework in which managers operate?
• How to avoid disproportional abatement costs
- Marjolijn Wannet, Consultant, m.a.r.c BV Maritime Asbestos & Recycling Consultant

Interactive delegate discussion groups:
Delegates have an opportunity to discuss in more specific detail matters arising from the workshop. Topics are chosen by the workshop leader.
Workshop leader's summary & close of workshop

informa maritime events. 15 March 2011