Ship Recycling Industry:
The ship recycling industry has an infamous
reputation – mostly due to a total lack of safety and environmental standards.
Traditionally vessels have been sold, often through middle men, to the highest
bidders – normally the yards who have invested the least in training, equipment
and facilities. More than 80% of vessels demolished today still end their lives
on polluted beaches somewhere in South East Asia .
Normal practice among ship owners has been to
conceal the identity of their vessels before they reach the demolition yard in
an attempt to protect their reputation from disreputable recycling methods. The
last days of a ship can be in stark contrast to its operating life during which
it receives the best care and maintenance whilst upholding all safety
standards. We believe, with a little effort and the right choices, the
situation can be very different.
There are currently some 300 demolition yards
world-wide serving international shipping clients. Less than 10% of these yards
are of a standard considered acceptable according to modern regulations for
safety and environmental standards. There are vast differences amongst the
recycling yards in the most active countries.
Government-approved yards in China
The recycling industry has changed dramatically
over the last few years. It has developed from being a shameful part of our
business to be an area the most modern owners want to be proud of – in the same
way they are proud of the standard of their ships in operation. This change has
come in part due to the constant focus from environmental groups and the media
and has been made possible with a will to change the international legislation
governing this area. In a competitive world, the responsibility we have towards
our environment cannot be shouldered by some ship owners alone – it must be a
common effort from all players in the industry.
The Hong Kong International Convention for the Safe
and Environmentally Sound Recycling of Ships was adopted by the International
Maritime Organization (IMO) in May 2009.
The Convention will regulate the design,
construction, operation and preparation of ships to allow for safe and
environmentally sound recycling. It will also provide strict guidelines for the
operation of ship-recycling yards. The Convention dictates that vessels must
carry an Inventory of Hazardous Materials (IHM)* on-board. Ship-recycling yards
will be required to provide a detailed ship recycling plan before work can
commence. Member-states will be asked to ensure that facilities under their
jurisdiction comply with the Convention. The Convention will enter into force
as soon as the ratification process has been fulfilled as per defined
criterion.
The *Inventory of Hazardous Materials provides relevant
information to recycling facilities about hazardous materials contained in
parts or systems of a ship. These are materials that the recycling facilities
may encounter during dismantling of the vessel. The inventory also provides
valuable safety, health and environmental information for seafarers onboard and
for ship yards undertaking repairs or conversions.
Who is Grieg Green?
Grieg Green is a part of the Grieg Shipping Group,
a fully integrated Norwegian shipping company with more than 125 years of
experience in the maritime industry. The company has always maintained a strong
focus on the environmental and sustainability aspects of our industry and is
committed to the UN Global Compact’s principles.
Grieg Green builds on the knowledge and experience
of the Grieg Shipping Group to offer a new and innovative way to handle the
complex ship recycling process that is still financially viable and attractive
to ship owners.
The media and social furore over to-date unsavory
maritime practices in the recycling industry can be a thing of the past. We are
committed to ensure an early implementation of the new IMO Convention for Ship
Recycling while maintaining value maximization for our customers.
Grieg Green hand-picks from what we consider to be
among the world’s top recycling yards – by using our own “score-card” rating
method. We will follow up and obtain reports from regular inspections. We,
further more, monitor our portfolio of yards regularly and do our best to bring
our clients to the most competitive and environmentally-friendly yards in the
market at any given time.
Complicated and financially unrewarding green ship
recycling now belongs in the history books with the commitment and dedication
from Grieg Green to make the ship recycling industry environmentally friendly
and financially viable.
Why Was Green
Ship Recycling Challenging?
|
How Has Grieg Green Made It Attractive?
|
It’s
too expensive
|
We
form valuable alliances with yards that make the price point far more
palatable to our customers. We encourage healthy competition among the yards
in our portfolio in order that our customers get the best possible price for
their vessels. Grieg Green does not rely on one yard alone to ensure that
this competition thrives.
|
It’s
too complicated to bother with
|
We
manage the process on behalf of the owner, minimizing the need for in-house
knowledge and resource allocation.
|
The
global standards keep changing
|
We
stay on top of the latest regulations for you and update our recycling yards
accordingly with minimal changes or disruption to our customers.
|
There’s
no tangible benefit
|
The
legislation in this field is changing so rapidly that what used to be a
“recommendation” might soon become “law” and staying ahead of the curve is
the best way to ensure minimal operational disruption.
The
positive publicity and “environmentally-conscious” label also gains
importance every day in this global green movement we are experiencing.
|
It’s
too difficult to assess the suitability of the recycling yards and maintain
contact with them.
|
Grieg
Green’s experts on the ground have in-depth knowledge and experience on
assessing yards and maintaining the relationships with them.
|
Ship
recycling methods can often appear out-dated
|
We
use new and innovative methods to keep costs low whilst ensuring maximum
residual value of our customers’ ships.
|
Environmental Profile:
Along with keeping tabs on the changing legislation
on ship recycling and staying on top of the latest trends and prices in the
industry, Grieg Green is committed to finding the best recycling yards there
are available at our customers’ disposal. These will form the cornerstone of
our business and our minimum requirements for yard partners include:
- Adherence to the
upcoming IMO Convention on ship recycling
- Non-usage of the
beaching method
- Accordance with
Grieg Group’s existing safety standards for training and equipment
- Adherence to
international standards on waste treatment (internal & external)
- IHM Certification
- Making a ship
recycling plan available before transfer of ownership
- Adherence to Grieg
Group’s “Supplier Code of Conduct”
- In addition to the
above, our highly competent, environmentally-conscious and experienced
personnel in Norway and China bring a broad range of diverse skills and
knowledge to Grieg Green’s operations, promising our customers top of the
line service unparalleled in the industry.
Products & Services:
Grieg Green offers ship-owners an environmentally
advanced one-stop-shop covering the entire process of the recycling of a vessel
that has reached its maturity. The scope is to manage all steps of the process
from the planning of when a vessel should be recycled to the end-reporting and
certificates that are issued when the job is completed. The aim is to minimize
cost and the ship-owners’ use of internal resources during the planning and
execution phase whilst maximizing the residual value of their ships.
We Start Earlier: With our vast experience in ship-owning, technical
and crew management, we are able to start working with our clients at a much
earlier time in the process than what is normal today. This enables us to
carefully plan the last few months of the vessel’s operation, making the last
voyages more optimal, manage residual fuel and ensure that the crew are
appropriately handled.
Get More Out of Your Vessel: When required, we also assist in making detailed
plans for the exclusion list to ensure that all parts of high value that can be
used on other vessels in your fleet, or sold, are carefully removed and shipped
to the right destinations. We are also able to facilitate the sale of these
high value items.
Take Out the Hidden Cost: Grieg Green rids our customers of unnecessary and
time-consuming intermediaries who add little but cost to the green recycling of
vessels.
Shipyard Portfolio: Grieg Green prides itself on an established
portfolio of pre-approved shipyards in strategic markets. We are in constant
dialog with these partners to communicate our ideas and requirements.
Negotiation: On behalf of the ship-owner, we negotiate directly
with the best recycling yards in the market – to secure a competitive offer for
the vessel.
IHM: Grieg Green will arrange for your Green Passport / IHM in the most
cost-effective and time-sensitive manner.
Document Management: Grieg Green facilitates and advise our customers on
complying with documentation related to the vessel and the recycling of it.
Logistic Management: Grieg Green supports our customers (the ship
owners) with logistics services like last voyage optimisation, last port
assistance, equipment and spare-parts recovery.
Shipyard Supervision: Our experienced surveyors follow the recycling
process at the yard to monitor that environmental and safety are followed the
best way possible. We report on a weekly basis to the ship-owner and prepare an
extensive final report upon completion.
Process of Ship Recycling:
Cost:
The cost of environmentally conscious ship
recycling is exaggerated. The price difference between the low and the high end
yards is dynamic and varies with several market drivers such as steel demand
and tax incentives, but is normally not nearly as high as most owners think.
The service customers receive offers a significantly lower risk of
environmental and safety issues, not to mention to your brand and reputation.
By letting Grieg Green do a valuation of potential items aboard your vessel
that can be sold or reused, this price difference can easily be absorbed and
even add a positive margin from your choice of going green.
Grieg Green is a flexible service provider. Our customers
can choose between a package solution that includes all of our services or
decide to pick individual solutions from our products list. We are committed to
ensure that our services are of the highest quality, following all the
principals of the Grieg Group when it comes to environmental, safety and
transparency standards while always making sure that our cost levels are very
competitive in the market. We strive to eliminate intermediaries in the sales
transaction so that you, as a customer, can be certain to get 100% value from
any fees or commissions paid in the process.
Get a Quote From Grieg Green:
Grieg Green will, as your advisor, negotiate with
what we believe are among the best shipyards in the recycling industry to
provide our clients with a very competitive offer for your vessel. We encourage
healthy competition between the yards in our portfolio and will not accept any
unreasonable drop in prices from the yards just to have the “Green” label on
their services. Grieg Green does not act as a cash buyer or a broker and does
not charge any kind of commission to negotiate the sale for our customers. We
base our income solely on fixed fees that are carefully explained to you before
you decided to do business with us.
Quick & Effective:
To provide you with a quote for your vessel, we
need to receive some information about the ship. By following the below link you can download
a form where you can fill out the information we will need to give you an
accurate quote. Try to fill out the vessel information sheet as complete as
possible, but if you are missing some of the requested information, don’t worry
about it. Send us what you have. Further more, if you have any items/parts from
the vessel that you, at this time, know want to keep, please mention these in
the exclusion list, as found in a separate tab in the form.
Contact:
Tel: +47 23274100. Fax: +47 23274101
Unit 2904-2917, Shanghai Central
Plaza Huai Hai Zhong Road
Shanghai 200020. P.R.China.
Tel: +8621 6171 1100. Fax: +8621 6171 1102
Contact email: green@grieg.no.
Source: Grieg Green
http://www.grieggreen.no
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