30 April 2011

Bangladesh Shipbreaking Policy:

Chairman of Parliamentary Standing Committee on labour and employment ministry Md Israfil Alam here yesterday said they would submit a comprehensive report comprising recommendations on ship-breaking industry to the government within 15 days.

The government would formulate a ship-breaking policy based on that report and also form a wage board for workers at ship-breaking yards, he said.

Israfil was talking to journalists at the residence of local Awami League lawmaker Abul Kashem Master after the committee led a 21-member team on an inspection at four ship-breaking yards at Sitakunda upazila.

The team comprised of State Minister Munnujan Sufian of the ministry and the committee members Zakir Hossain and Noni Gopal Mandal, also lawmakers.

The yards are Mabiya Ship Yard; Unique Traders Ship Yard, owned by Kashem's son; and Seiko Ship Yard, situated at Baro Aulia, and SN Corporation in Shitalpur.

Though the yard owners said they remain closed on Friday, the team found workers waiting for them, wearing safety equipment like helmets and gloves. A number of banners were also seen welcoming the inspection.

Kashem and leaders of Bangladesh Ship Breakers Association (BSBA) were seen guiding the team. Munnujan at one stage expressed her dissatisfaction that BSBA leaders were taking them to the yards of their choosing and not of the team's.

At one point of the inspection, Kashem made slanderous comments against Bangladesh Environmental Lawyers Association (BELA), a non-government organisation that raised voice against environmental degradation in the area, in presence of Munnujan.

“Bela should be buried,” he said, urging Munnujan to exclude Bela from the committee formed to prepare the policy.

When asked about visiting only four shipyards out of 125 set up along the 13-kilometre beach from Salimpur to North Sonaichhari, Israfil claimed they visited 13 yards.

He expressed outrage at the journalist who raised the question and accused him of trying to make the team controversial, saying, “We are neither representing the owners nor the workers and nobody is guiding us.”

Source: The Daily Star. Staff Correspondent, Chittagong. Saturday, April 23, 2011

29 April 2011

News Release: Crews complete work on Davy Crockett COFFERDAM

PORTLAND, Ore. - The barge Davy Crockett sits enclosed by a cofferdam in the Columbia River near Camas, Wash., April 18, 2011. The cofferdam will contain pollutants while work crews dismantle the barge and remove it from the river. Photo provided by Davy Crockett Response Unified Command.
Work crews completed installation of an 850-foot metal sheet-pile cofferdam around the barge Davy Crockett Monday.

The cofferdam includes an impermeable liner, which will trap any oil, tar balls and other pollutants in the enclosure while crews dismantle the vessel.

“Installation of the sheet pile barrier and an impermeable liner around the Davy Crockett is a significant step in controlling the environmental threats from this broken vessel,” said Coast Guard Capt. Daniel LeBlanc. “It will allow contractors to begin the process of carefully cutting the vessel into pieces, cleaning and removing the pieces from inside a protective cofferdam.”

The Davy Crockett Response Unified Command plans to begin the vessel’s destruction Thursday. Workers will separate the 229-foot stern section from the rest of the vessel first. This cut will take place underwater. After the cut, the stern will be refloated, which involves pumping off several hundred thousand gallons of ballast water.

Until then, crews will stage equipment and ensure the cofferdam is functioning according to plan.


The Washington Department Ecology received reports of oil sheen on the Columbia River near Vancouver, Wash., Jan. 27, 2011, and traced it 11 miles upstream to the 431-foot flat-deck barge Davy Crockett. Reports of sheen were reported as far as 15 miles downstream.

The vessel was partially sunk near the north shore between Vancouver and Camas, Wash., four miles upstream of the I-205 Bridge. The Davy Crockett had begun leaking oil due to improper and unpermitted salvage operations.

Response efforts began immediately to contain oil and stabilize the vessel. The Coast Guard, Washington Department of Ecology and Oregon Department of Environmental Quality are jointly managing the response and salvage effort using the National Incident Management System. 

In mid-February Coast Guard Commandant Adm. Robert Papp authorized Coast Guard Sector Columbia River to remove and destroy the barge Davy Crockett.  In his authorization memo, Adm. Papp stated that “destruction of this vessel is appropriate to mitigate the threat of continued discharge of oil, oil water mixtures and hazardous substances into the waterway.”  


Work crews successfully separated the stern from the mid-section of the Davy Crockett Friday.

The on-site water filtration system that will treat the ballast water and oily water collected from tanks has been successfully tested. Equipment is being mobilized so the deballasting operation can begin later in the week. The treated water will be stored in a barge with large capacity tanks and ultimately disposed of at a local wastewater treatment plant.


Date of Incident: Response began January 27, 2011
Location: North bank of the Columbia River near Camas, Washington
Product/Quantity: Lube, bunker and diesel oil; total quantity unknown.
Cause: Damaged derelict vessel.
Funding for response: Federal Oil Spill Liability Trust Fund

Source: Department of Ecology. State of Washington.  April 2011

Mare Island ship dismantler believes its bid on four vessels was best overall:

A Mare Island company's recent loss of some $2.5 million in a federal ship dismantling bid appears, on its face, to be a matter of only about $12,000.

But the loss could involve other factors not yet disclosed, officials said.

Allied Defense Recycling managing director Jay Anast said this week the small difference between bids from his company and the winning Texas ship dismantler is not bad for the company's first competitive bid.

"We lost it by 0.25 percent," Anast said. "That doesn't mean we're not competitive. It's very, very small dollars here that was the differential."

Anast questioned whether the U.S. Maritime Administration's decision to award the contracts to a company thousands of miles from the Suisun Bay Reserve Fleet's "mothball" vessels took into account the environmental impacts. He estimated the government would use about 1 million gallons of diesel fuel to haul the aging vessels to Texas.

Maritime Administration officials would not divulge what specific factors were considered in the award of the winning bid for the four vessels -- the Clamp, Sagamore, Reclaimer and Bolster. Agency spokeswoman Cheron Wicker would say only that bids are based on the "best value to the government."

Generally included in a best value assessment are price, capacity to actively and continuously work the vessel, past performance and completion schedule, Wicker wrote in an email.

Wicker added that unsuccessful bidders may request a debriefing with the Maritime Administration for further details.

Anast said he will seek a debriefing on how Allied Defense Recycling's bid compared to Marine Metals' winning bid. He alleged that the government did not add contingency funds to the price of the bid, in case of cost overruns. In particular, Anast said, repairs of aging ships while they are being cleaned to prepare for travel to Texas could easily bump a contract's value over the $12,000 bid difference between the two companies.

Anast went on to use the example of the M/V Lincoln. That ship was recently cleaned in preparation for the trip to Texas but a leak caused delay for unexpected repairs.

Were such ships to come straight to Mare Island, seaworthiness would not be an issue, Anast said. Allied Defense Recycling is dismantling two former mothball fleet vessels.

Maritime Administration officials were unable to immediately respond to Anast's concerns Thursday.

Contact staff writer Jessica A. York at (707) 553-6834 or jyork@timesheraldonline.com.

Source: Times-Herald. By Jessica A. York. 29 April 2011

Maersk closed shipbreaking recycling services, environmental concern in the shipping industry:

AP Moller Maersk Group ─ confirmed recently in Copenhagen, to stop the ship to the other owner to provide intermediary services, environmental scrap recycling, claiming to be more focus on core business in shipping. The decision is not only the outside world I am truly an accident, caused by the shipping industry while promoting environmental protection concerns shipbreaking.

Maersk ships in China and the Netherlands scrap recycling services, both for the Group's own ship scrapping arrangements to provide environmental protection, while providing similar shares for other business owners, customers Ro-ro shipping companies such as Sweden and the Netherlands Shell Hualin. The old boat will be arranged involving China's shipbreaking into Terminal, the group's shipbreaking services to the department responsible for planning and supervision of shipbreaking process to ensure environmental protection and the dismantling process in line with the requirements of low pollution, and recycling of scrap metal.

Indian shipbreaking site in the peninsula's many" red beach" form of shipbreaking, although the owner earnings will be higher, However, the safety hazards to workers and the environment. Maersk has stated that no" red beach", also set up shiprecycling service department, the Office of Rotterdam in the Netherlands with 84 employees and offices in China, there were four employees, has been handling about 60 old vessels, most of which Maersk does not own boats.

The group said that no arrangements for other environmentally friendly shipbreaking shipowners, shipping in order to focus more on core business of the future and further Enhance the competitiveness in the industry. But the statement also stressed that this decision will not affect the group as a whole scrap recycling policy, its own old ships will continue to deal with security and sustainable development concept.

However, the industry was surprised by the decision, because the business is not able to profit, they can improve the environmental considerations Group's image. Moreover, some insiders think that in 2009 in Hong Kong is an international Ship Recycling Convention, adopted the" Hong Kong Convention," the frustration, because the Maersk ship scrap recycling services in the implementation of some provisions of the Department, such as the development list of hazardous substances and recycling programs.

Source: en.zgxu.com. 26 April 2011

Mare Island dismantler gets no traction on new contract bids:

Four Mothball Fleet ship-dismantling contracts posted Monday shut out a Mare Is-land ship industry newcomer.

Marine Metals of Brownsville, Texas, will scrap and recycle the Suisun Bay Reserve Fleet ships Clamp, Sagamore, Reclaimer and Bolster for $1.85 million, according to the U.S. Maritime Administration's contracts posted online Monday. The four vessels will be cleaned in two batches at the BAE Systems San Francisco Ship Repair starting in mid-May, and then will be towed through the Panama Canal to Texas.

The separate hull-cleaning contracts range from about $144,000 to $153,000 each.

Allied Defense Recycling on Mare Island since late last year had bid on the contracts, its first competitive bid for the company since the Maritime Administration this year awarded the startup company no-bid contracts worth $3.1 million to dismantle the SS President and SS Solon Turman.

Company managing director Jay Anast declined Monday to comment on the contract awards, saying he needed to review them.

In other ship-recycling news, a vessel contracted out to All Star Metals, also in Texas, apparently began to leak after it was cleaned in San Francisco last week, a Maritime Administration spokeswoman wrote in an email. The M/V Lincoln was pumped out and repaired, she said, and is still scheduled for a final trip to Texas.

Source: (Vallejo) Times-Herald. By Jessica A. York. 25 April 2011

Green Ship Recycling: Wilhelmsen Ship Management

Green ship recycling is the new and additional Green product in WSM's portfolio.

Green Ship Recycling services is specially designed for the socially responsible Green ship owners whom demands a demolition process that offers safe working environment at the yard, together with safe removal and disposal of hazardous materials on board.
With green awareness in mind, we have signed agreements with key yards in China to carry out ship recycling work, in compliance with IMO requirements although they are not yet ratified.  The recycling work will be monitored by our site team members who have the authority to "stop work" in case of any deviation from established green procedures.  The yards have agreed to be monitored against a set of Key Performance Indexes (KPIs) which will decide a previously agreed bonus incentive scheme for them.  This comprehensive agreement with the selected yards are unique and the one of its kind in the industry.  We hope to expand the portfolio by getting more and more shipyards to go 'Green'.

The process of green recycling is tedious and requires proper planning and preparation.  One acceptable approach is "Demolition" which is the actual cutting up of the ship in blocks of manageable sizes.  The correct trimming, steel cutting including the removal arrangements are critical.  The blocks with oil content and machinery are placed in special areas on shore with proper drainage and containment arrangements.  Fire fighting procedures and evacuation routes are manned properly.

"Pre-cleaning" is a requirement prior demolition.  Pre-cleaning is the safe removal of all hazardous materials and wastes such as asbestos, fuel oils and lubes, cable insulation and other PCBs, deck coverings and insulation materials, gases and refrigerants (CFC), paints and thinners, stores and spares, fire alarm sensors and radio active materials and all other hazardous and potentially hazardous materials.  An IHM / Green Passport is pre-requisite prior to recycling.

The process of Demolition and Pre-Cleaning are fully documented in a 'Green Recycle Plan' - a document developed using the IHM / Green Passport with inputs from yard and WSM.  This plan is vital towards green recycling.
WSM also provides IHM (Inventory of Hazardous Materials) / Green Passport services for existing and to be recycled vessels by our in-house experts who are trained and certified by Class.  IHM / Green Passport which is WSM's other green product was rolled out in April 2010.

WSM's objective is to implement a proper health, safety and environmental approach towards ship recycling.  We hope to work with more shipowners in this project to ensure a better and healthier living on earth.

Source: Wilhelmsen Ship Management

A.P. Moller – Maersk Group Ship Recycling Policy:

A.P. Moller – Maersk is committed to the protection of the occupational health and safety of the workforce and of the environment in which we function. Ships, as defined in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, are built with life cycle considerations in mind. Thus when the ships have reached the end of their operating life, our ambition is to safely recycle them. 

A.P. Moller – Maersk aspires to ensure high quality throughout the entire recycling process. Our dedicated team, engaged in the recycling process, consists of personnel with vast commercial, operational and technical experiences. We are therefore able to thoroughly supervise, manage and continuously improve our recycling program.

We are actively participating in the international legislation process of establishing regulations for ship recycling. A.P. Moller – Maersk supports the adoption and ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. We will act in accordance with the convention and observe its goals and ambitions. We have a plan to gradually equip existing ships in our ownership and new ships built for A.P. Moller – Maersk with inventories of hazardous materials. We also endeavour to create awareness amongst ship owners, managers, operators and ship recycling yards about the materials onboard.   
Subsequently, the following specific policies are established for recycling of A.P. Moller – Maersk owned ships:

Health and safety:
Prior to recycling a ship, we will select a recycling facility that has competently trained management and staff as well as the required standards for health and safety procedures in place. These procedures will provide for safe practices in the recycling operation and a safe working environment. The procedures will also require that the vessel be rigorously checked before it is delivered to the yard. At a minimum, this involves conducting a radiation survey, auditing hazardous materials and highlighting any parts of the ship which require particular care when being dismantled.

Environmental protection:
We enhance the conservation and protection of the environment and place the environment as a high priority when recycling ships. The process of ship recycling offers an opportunity to reuse significant parts of the ship and its equipment. In that way, recycling makes a positive contribution to the global conservation of energy and resources. A.P. Moller - Maersk encourages the development of environmentally sound ship recycling facilities and aims to use only ship recycling facilities which are ISO 14001 certified. 

Source: http://www.maersk.com/Sustainability/EnvironmentAndClimate/Documents/Ship%20Recycling%20Policy.pdf

RECYCLING OF NUCLEAR FUEL CARRIERS - - T D Pearce, British Nuclear Fuels Plc, UK


Pacific Nuclear Transport Limited (PNTL), a subsidiary company of British Nuclear Fuels Plc (BNFL) have recently completed the recycling of one of its Nuclear Fuel carriers.  This recycling operation was carried out in the Netherlands where Health, Safety and Environmental considerations are of a high standard.

The recycling operation was developed to satisfy the Industry Code of Practice for Ship Recycling as well as industry guidelines.  The vessel was recycled in two stages.  The first under a service contract where ownership of the vessel was maintained and all hazardous substances were removed, and tanks emptied, cleaned and made gas free.  The second stage involved the vessel being sold for recycling where ownership was transferred and the ship was cut up.

To enable the vessel to be exported from the UK to continental Europe the ship was exported in accordance with the Transfrontier Shipment of Waste Regulations 1994 which implements Council Regulation (EEC) No 259/93 on the supervision and control of shipments of waste within, into and out of the European Community.


Pacific Nuclear Transport owned and operated five nuclear fuel carriers. This fleet of vessels has safely and successfully transported nuclear fuel and waste between Europe, America and Japan since 1979. 

Nuclear material transported by sea must be transported on vessels that meet the Irradiated Nuclear Fuel (INF) code of the International Maritime Organisation (IMO). 

The INF code establishes three design and construction standards for vessels carrying nuclear cargoes. These purposes built dedicated vessels are designated as INF3 carriers, which is related to the amount of radioactivity carried and equates to the highest standard of safety and protection achievable for the transport of nuclear material.  

The MV Pacific Crane was built in 1980 and used to transfer a variety of nuclear materials primarily between Japan and Europe.  In 2002 she was withdrawn from service after completing all contractual obligations. 
After performing an optioneering study into possible alternative uses for the vessel including conversion and decommissioning the decision was made to recycle the vessel.

BNFL having developed detailed specifications for ship decommissioning in conjunction with its ship management company tendered for interested Shipyards to carry out this recycling operation.  After failing to find a suitable option within the UK to perform this work BNFL's preferred contractor was based in the Netherlands.  Through consultation with the UK Environment Agency (EA) and the Marine Coastguard Agency (MCA) part of the UK Department for Transport (DfT), the decision was made to classify the vessel as 'waste' and export through the applicable waste regulations.


The recycling method adopted by BNFL was for the vessel to be decommissioned within Northern Europe where health and safety issues, environmental considerations and quality assurance standards are established and can be monitored and controlled.

This approach is not necessarily accepted by all members of the shipping community where vessels can be sold to Third World countries in which standards of worker Health and Safety and environmental considerations are not a priority.  Lack of awareness from such yards has led to increased attention from international environmental and workers’ rights groups.  PNTL and BNFL have determined that vessels will be recycled using the voluntary guidelines developed by the international shipping organisations in the form of the Industry Code of practice on Ship Recycling. This, in conjunction with contracting an established Shipyard with an appreciation of Environmental Health & Safety and Quality Assurance Standards, provided an effective, environmentally sound and publicly acceptable approach to disposal of the fleet of vessels.

The scope of this project was to develop a strategy that ensured the vessel was as hazard free as practicable, when being sold to a Shipyard for disposal.  This approach was adopted to allow a method that mirrors industry best practice as well as incorporating additional BNFL requirements to ensure that the needs of all internal and external stakeholders (customers, Environmental groups, local authorities, etc.) are satisfied. The process of decommissioning the vessel was performed in three Phases.  

2.2 (a) PHASE I
The removal of any potentially radiologically contaminated areas of the vessel was performed before the main project and did not involve the recycling contractor commissioned for the final breaking of the ship.  Suitably qualified and experienced personnel performed this work in Barrow-in-Furness, Cumbria, prior to the main scope.

2.2 (b) PHASE II
The majority of the decommissioning process was separated into two distinct stages.  The preliminary stage was the clean-up operation of the vessel being performed where identified hazards were removed.  These hazards that cannot be recycled were disposed of in an appropriate manner.

2.2 (c) PHASE III
The final stage involved the vessel being sold for recycling where the contractor took ownership and title and was responsible for the physical ‘breaking up’ of the vessel.


The following activities were performed for the project:

• Identification of hazardous materials on board the vessel in line with those documented in the Industry Code of Practice Hazard List
• Identification of any potentially radiologically contaminated areas of the vessel.
• Develop decommissioning specifications for the removal of hazards and the controlled ‘breaking up’ of the vessel
• Identification of a suitable Shipyard/location for the associated work to be carried out.
• Removal of any potentially radiological contaminated areas under Health Physics supervision
• Removal of non-nuclear hazards at contracted Shipyard in line with the Industry Code of Practice
• Sell vessel under a Standard Ship recycling contract
• Ensure vessel is disposed of in a suitable manner with respect to EH&S


The standards under which the Pacific Crane was to be decommissioned had to meet the criteria of the BNFL Corporate Policy for the Environment and Health and Safety.  All activities undertaken by BNFL were in accordance with the ISO 9001:2000.  Those activities undertaken by contractors of BNFL that did not meet the above standards were performed under additional controls and supervision.

In addition to these controls the regulations applicable to the BNFL strategy for Ship Decommissioning were as follows:

The Industry Code of Practice for the recycling of ships provides guidelines to ship owners when disposing of vessels.  The general overview of the Code is for owners to take responsibility for the impact of selling their vessel for recycling.  This involves the removal of all hazardous materials where practicable prior to selling and the degassing of all tanks that are not essential for the final voyage.  In the event that it would be unreasonable for the owner to remove a particular hazard it is to be clearly identified to the Shipyard accepting the vessel from the owner.  The hazardous materials that a responsible ship owner is expected to identify and take responsibility for are outlined in the MARISEC Inventory of Potentially Hazardous Materials.

Once the criteria of the Industry Code of Practice have been met the vessels will be sold under a standard international contract for the recycling of ships.  The BIMCO Demolishcon contract is used by the industry to sell end-of-life vessels.  This contract was used for the sale of the MV Pacific Crane for recycling.  The contract Terms and Conditions were amended and agreed to satisfy certain criteria of the waste regulations (see later) and to give BNFL additional control and supervision of recycling activities whilst the vessel is no longer the owner’s asset.

The UN body, the International Maritime Organisation (IMO) has developed guidance literature for the recycling of vessels.  This literature outlines the measures and controls necessary to ensure a vessel that has been sold for recycling is dealt with in a environmentally acceptable way whilst ensuring the safety and health of the workers involved in the recycling activities.  The guidance is primarily tailored for the organisations based in non-OECD (Organisation for Economic Co-operation and Development) countries.

The Basel convention sets out the controls for the transboundary movement of hazardous wastes.  Transboundary movements of hazardous wastes are only permitted if prior written notification by the State of export is given to the competent authorities of the States of import and transit (if appropriate). Shipments of hazardous wastes must be accompanied by a movement document from the point of export to the point of disposal. Hazardous waste shipments made without such documents are illegal. In addition, there are outright bans on the export of these wastes to certain countries. Transboundary movements can take place, however, if the state of export does not have the capability of managing or disposing of the hazardous waste in an environmentally sound manner.

The OECD (Organisation for Economic Co-operation and Development) Decision classifies wastes into three categories according to their hazard, green, amber and red.  Green listed wastes are classified as non-hazardous and are not subject to controls under the OECD Decision. 

Red and amber wastes are classified as hazardous and are hence subject to the controls of the OECD Decision. 

3.6 WASTE SHIPMENTS REGULATION (WSR) Council Regulation (EEC) No. 259/93 [6]
The WSR is the European Unions’ regulations that satisfy the criteria of the international agreements and conventions governing the control of waste movements between boundaries including the Basel convention and the OECD Decision.

The TFS Regulations 1994 is the UK Statutory Instrument that satisfies the provisions of the WSR. Although it is not commonly accepted that end of life vessels should be classified as waste, the TFS Regulations provide the legal framework that allows waste to be exported out of the UK for recycling only.  It is illegal to export waste from the UK for disposal and therefore only genuine recycling operations are permitted.  The TFS Regulations satisfies all the controls and recommendations made in the MEPC guidance.


The application for permission to export the vessel under the Transfrontier Shipment of Waste Regulations 1994 can only be made once a legally binding contract for recycling of the waste is in place.  BNFL also have a financial guarantee with the UK Environment Agency (EA) that allows the EA to draw upon funds in the event that the waste needs to be retrieved.  This bond is live from the day the waste leaves the Export State until it has been fully processed and the authorities of the Import State are satisfied with the completed work.

The waste export process involves 6 distinct stages:

The Notifier/Exporter (in this case BNFL) has to identify the Consignee (recycling contractor), the amount of waste, the classification of the waste including its European Waste Catalogue (EWC) number, its physical characteristics, its OECD Classification and Hazard type.

In addition to the above the Exporter has to identify the mode of transport and the intended carrier, and the type of operation to be undertaken by the Consignee (i.e. Recycling – it is prohibited to export waste for disposal). 

The Notification is made up of a standard form containing the above data and the supporting information required by the competent authorities (as identified by the Secretariat of the Basel Convention). The Notification is made to the competent authorities of the Export and the Import State, including the financial guarantee, copies of the recycling contracts, evidence that “Genuine recovery” (i.e. the waste is to be recycled and the import country can make more use from the material then the cost of disposing of residue wastes) will take place.  The Notification process incurs a nominal fee that has to be paid upon submission. 

Once the competent authority of dispatch has reviewed the financial guarantee and accepted its value, they will issue a certificate of satisfaction to all parties.  This certificate signifies to the competent authority of the receiving country that a suitable amount of funds in the form of the guarantee have been made available.  Upon receipt of this certificate the competent authority of the receiving country will issue a formal acknowledgement of receipt for the Notification package.  This signifies the start of a 30-day technical review of the waste export application.

During the 30-day technical review of the waste application, the competent authorities can request any additional information they require at any time.  This is to aid them in determining whether or not the waste is going to be processed in an environmentally acceptable manner and that there is clearly defined legal responsibility for the waste at all times.  Primarily this process is to allow the competent authorities to investigate the licences of the parties involved ensuring that they have suitable waste management permits.

4.1 (c) STAGE 3 – CONSENT
If the competent authorities are satisfied with the application that consent is given at the end of the technical review allowing the waste transfer to take place.

To allow the competent authorities to track waste movements between states the Exporter submits a Movement/Tracking pre-notification.  This identifies the waste and refers to the consented Notification Package; this has to give the authorities at least three days notice before the waste is transferred.  The Movement/Tracking form also identifies the exact amount of waste and the carriers responsible and methods of transport for transferring the waste to the Import State. The Movement/Tracking form travels with the waste at all times.

Upon receipt of the waste, the Consignee completes the Movement/Tracking form and informs the competent authorities that they have taken responsibility for the waste.

Once the recycling operation has been completed the Consignee submits a certificate of completion to the competent authorities informing them that the waste has been fully recycled.  The certificate also releases the Exporter from the financial guarantee.  In the case where steel is being exported for recycling there is a 180-day time limit to recycle the material from the day of arrival in the Import State.

BNFL located a contractor with experience in ship conversion and repair that had all applicable licenses for processing the wastes identified as being on the vessel. The contractor had also identified a licensed subcontractor with demonstrated experience in recycling ships of various sizes and tonnage.  Contracts were put in place and the process of exporting through the regulations as outlined in section 4.1 was carried out.

At the end of the Technical Review Period [4.1 (b)] BNFL's export application was rejected on the basis that the consignee (Dutch Shipyard) did not have a suitable license for a 4000te quantity of waste (i.e. the ship). The shipyard's licenses only covered the activities for ship repair/'conversion and the wastes associated with such activities.  BNFL jointly approached both the competent authorities of the UK and the Netherlands to ensure they were fully aware that the only wastes being processed at the shipyard were those that had been removed in larger quantities during previous contracts at the yard and that the majority of the 'waste' (steel) was to be re-located top the subcontractor who had licenses to process up to 40,000tes of steel a year.  This approach unfortunately failed and alternative options had to be developed.

To allow the project to continue and to enable the vessel to be exported in accordance with the waste regulations the contract structure for the decommissioning had to be modified.  Through discussions with the Dutch contractor and sub-contractor it was agreed that BNFL would contract the sub-contractor (ship recycling facility) directly who would in turn sub-contract the cleaning/hazard removal work back to the main contractor (the shipyard). This then assured that the new consignee (the recycling contractor) had licenses to receive and process the wastes identified in the export application.  The shipyard was then brought into the recycling contractor's facility to carry out the cleaning/hazard removal activities required by BNFL to satisfy the Industry Code of Practice before selling the vessel for recycling.  Operationally this was not as ideal as the original system as the shipyard had to work away from its own yard without its own facilities.

A second application was made to the competent authorities using the above structure and this was granted to allow the export to take place through the TFS regulations.  In total the process of making the applications to the competent authorities delayed the project by nine months. It also worth noting that once a vessel has been classified as 'waste' it is not necessarily possible for that vessel to be taken into a shipyard for any activities.


Once export licenses had been granted the vessel was prepared and towed to the Netherlands.  Upon arrival in the Netherlands the shipyard performed Phase II the cleaning/hazard removal activities in line with the decommissioning specifications.  This was performed under a service contract to BNFL who maintained ownership and liability of the asset.  All works carried out were performed under the supervision of BNFL's ship management company.  As each identified waste was removed, quantities and type were documented and copies of all certificates and receipts from specialist waste contractors were provided to BNFL.  This demonstrated that the wastes identified in the decommissioning specifications were all accounted for and could be shown to be going to licensed facilities, giving BNFL a suitable audit trail.

Upon completion of Phase II (an eight-week process) the vessel was sold for recycling to the ship-recycling contractor.  At this point ownership of the vessel was transferred to the contractor, although BNFL still maintained the liability under the TFS regulations. 

Although the asset was no longer BNFL's the Demolishcon contract allows for site visits by the 'owners' to ascertain that the recycling is being carried out in accordance with environmental legislation.   This gave BNFL the confidence that the operation was being carried out in an appropriate manner and that the 180-day time limit for the export and recovery of steel would not be exceeded such that BNFL became liable to the EA for the financial guarantee. The recycling contractor cut the vessel into sections, using a combination of hydraulic pincers and oxy-acetylene torches, and transferred into a neighbouring steel mill for onward recycling.

Once the recycling operation was complete and the contractor fulfilled its obligations under the TFS regulations to provide the competent authorities with a certificate of completion [section 4.1 (f)], BNFL applied to the UK Environment Agency to be released from the financial guarantee and the associated liabilities for the 'waste'.  Upon being released from these liabilities BNFL closed out the project on the decommissioning of the MV Pacific Crane.


To enable an end-of-life vessel to be exported through the waste regulations that implicitly satisfy the international conventions and agreements on handling waste is a time consuming and expensive process.  It relies on being able to find interested facilities with suitable licences, which are rare within Europe.  By exporting through this system it provides the owner of an end-of-life vessel, a legal framework with the backing of environmental competent authorities.  Use of these regulations demonstrates that the operation has been fully reviewed and that no local, national nor international laws for waste management are being breached.

BNFL does not advocate that this is the 'correct' way to recycle an end-of-life vessel; merely that it provided BNFL with a solution to ship decommissioning that would be acceptable to a broad range of stakeholders.  In addition in the absence of any definitive UK policy or international legislation on the recycling of ships it presented BNFL with a system that was successful and enabled the safe, environmentally considerate and quality controlled decommissioning of the MV Pacific Crane.

1. VARIOUS, 'Industry Code of Practice on ship recycling', www.marisec.org/recycling, August 2001
2. BIMCO, 'Bimco standard contract for the sale of vessels for demolition and recycling CODE NAME: DEMOLISHCON', BIMCO, November 2001
7. UK CROWN, 'The Transfrontier Shipment of Waste Regulations 1994', Statutory Instrument 1994 No. 1137, 1994

Tom Pearce holds the current position of Project Manager within the International Transport department of British Nuclear Fuels Plc.  He is responsible for a portfolio of projects to support the business of the safe transport of nuclear material around the world. Under his management is the decommissioning of retired nuclear cargo ships.  His background is in Physics and he is a member of the Institute of Physics and the Association of Project Management.

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Electricity restored to Nerpa shipyard:

Electricity is back at the Nerpa naval shipyard on the Kola Peninsula after the yard made an agreement with the local electricity company on repayment of a 50 million rubles debt.

The shipyard, which is involved in scrapping of nuclear submarines and repairs of vessels for Russia’s Northern Fleet, was cut off from power on April 6 by the Kolenergosbyt electricity company after failing to fulfill an agreement on repayment of a €1,2 million debt, BarentsObserver reported.

Power was restored to the yard only a few days later, after Nerpa and Kolenergosbyt concluded yet another agreement on repayment, Murmansk Business News reports. The shipyard has committed to repay its debt in three months.

Nerpa is not the only shipyard owned by the Ministry of Defense that has high electricity bills. According to Komsomolskaya Pravda, four ship repair yards in and around Murmansk has a total debt of more than 120 million rubles to Kolenergosbyt.

Source: BarentsObserver.com 26 April 2011

Ship grounded on Goa shore for 12 years to be dismantled:

A huge oil tanker ship, which had ran aground on Goa beach almost 12 years ago, will finally be removed from the shore by next January, officials said.

The State tourism department has said that it will cost almost Rs85 crore to get the ship dismantled and carried away as scrap.

Goa has awarded the contract to 'break and carry away’ the ship to Mumbai-based Arihant Ship Breakers Company.

"The work on breaking the ship has already began as early as March 15. Almost 40 per cent of the top portion of the ship was dismantled and carried as scrap," State Tourism Director Swapnil Naik told PTI.

The rest would be cut in a phased manner and by January, next year, the ship will disappear from the shore.

Tourism department officials said the biggest challenge for the company is to cut the portion of the ship, which is underwater.

"Cutting the body underwater might take little time and they will require special divers for that," Naik said.

Somewhere in the year 2000, the ship had hit Sinquerim-Candolim shore due to rough weather. Several attempts to tow away the ship had failed, finally forcing the state government to allow its cutting. After spending almost 12 years on the shore, the ship has gone eight metres deep underwater in the sand.

It has also wreaked havoc on the beach resulting in severe erosion. Government has already declared the vessel as a state disaster.

Naik said the company has been given 180 days to remove the ship.

"But they will have to stop the work during monsoons due to choppy season and extreme weather conditions on the beach," he said.

The work will be halted on May 14 after monsoon sets in and will restart in September after the rains.

Source: DNA. Tuesday, Apr 19, 2011

Ohio to Depart Beaumont Reserve Fleet:

The combination container vessel SS Ohio is scheduled to depart the Beaumont Reserve Fleet on Tuesday, April 19, 2011.  The vessel was recently sold for recycling to ESCO Marine, Inc. and its departure will reduce the number of non-retention vessels awaiting disposal from the Beaumont Reserve Fleet to eight.

The Ohio was built in 1967 as a combination railway car/container-carrying vessel for Seatrain Lines, Inc. of New York. Named Seatrain Ohio, the vessel was constructed by recombining modified sections from three WWII T2 class tankers.  The ship was the last of seven such converted vessels that were fitted with tracks and other special equipment so that railcars could move directly from the docks into the ship’ holds.  The ship spent its active career on charter to the U.S. Military Sea Transportation Service, forerunner of today’s Military Sealift Command, ferrying equipment and supplies during the Vietnam War. 

The ship was transferred to the Maritime Administration in November of 1973, renamed Ohio and placed in the National Defense Reserve Fleet, first in the James River Reserve Fleet in Virginia and subsequently in the Beaumont Reserve Fleet in Texas.

Source: MarineLink.com. Tuesday, April 19, 2011

Asian Shipowners’ Forum supports ship recycling convention:

The Ship Recycling Committee (SRC) of the Asian Shipowners’ Forum (ASF) has expressed support to the "Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009."

In a recent meeting held in Hanoi, Vietnam, the ASF-SRC noted that the guidelines are being developed by the IMO Marine Environment Protection Committee (MEPC) to assist in the convention's implementation.

Five countries such as France, Netherlands, Italy, Saint Kitts and Nevis and Turkey, have signed the convention as of March 2011.

The SRC also encouraged the governments of the major ship recycling countries to consider ratifying the convention.

Since shipowners will have to assume the statutory obligation to produce the inventory of hazardous materials for their existing vessels within five years of the entry into force of the convention, the SRC encourages cooperation between the governments, classification societies, and shipbuilders for the smooth preparation and development of the inventory.

The SRC also noted that some classification societies have developed software for the inventory of new ships.

The shipbuilding-related associations of Japan, Korea and China are cooperating with each other to produce a common manual for developing the inventory as well as a common format for materials declaration.
While the committee supports the safe and environmentally sound recycling of ships, the SRC notes that there is concern that ship recycling capacity could potentially fall short in the near future.

Source: Manila Bulletin. Monday, 11 April 2011

28 April 2011

GMS weekly report on Pakistan ship breaking industry for WEEK 16 of 2011:

After the recent heavy binge on units at very firm levels, Pakistani buyers retreated somewhat in the face of an increasingly aggressive Indian market. The levels and demand softened significantly in Pakistan with most of the major buyers satisfied with their most recent acquisitions.
Moreover, with Bangladeshi recyclers also close to fulfilling their capacity the focus is now expected to switch back to the market of the moment ie India as well as the improving Chinese yards.
Favored tankers will still find buyers in Pakistan with the gas free for man entry only requirement has been proving a big positive for owners and cash buyers alike when deciding where to send their wet tonnage to.
Source: SteelGuru. (GMS Weekly.com). Tuesday, 26 Apr 2011