28 June 2012

US ship with toxic past gets GPCB nod:

The Gujarat Pollution Control Board (GPCB), one of the 3 government agencies with jurisdiction over the Alang Shipbreaking Yard, has said that it has no objections in allowing the controversial US ship MV Oriental N, formerly known as Exxon Valdez, to anchor off Bhavnagar for an inspection.

With the nod from the GPCB, the Gujarat Maritime Board (GMB) is awaiting the Customs Department’s opinion on the issue, and will thereafter take a final decision on whether to allow the ship to anchor according to government sources. The development comes two days after the Ministry of Shipping told the Supreme Court that “it is the GMB which has to take a decision as to whether the ship concerned should be allowed into the concerned port for ship breaking.”

The ministry was responding to a case filed by Delhi-based activist Gopal Krishna who asked that the Basel Convention, an international agreement ratified by India, be upheld and the dismantling of MV Oriental N not be allowed because it had not been decontaminated.

Rules framed in 2007 under the SC’s orders makes it mandatory for a consensus from all three agencies for a vessel to be allowed to anchored off Alang. These decisions are taken after a ‘desk review’, in which the ship owners submit a declaration of possible hazardous materials present on board.

In case of the Oriental N, desk review documents showed that there is no hazardous material on board the vessel in loose form, although asbestos, glasswool, ply and asbestos containing material (ACM) are present as insulating material in the ship’s engine, boiler areas and some cabins and walls. Such in-built materials are allowed by the Indian authorities as per the 2007 rules.

If the ship is allowed to be anchored, officials from the GPCB and the Customs department along with experts from the Atomic Energy Regulatory Board (AERB) and the Explosives Department would inspect the ship to verify the desk review documents. If not hazardous waste is found in a loose form, the GMB would allow for the ship to be anchored and dismantled. The MV Oriental N attained it’s controversial status in 1989 when the ship spilled an estimated 2.5 lakh barrels of crude oil off the Alaskan coast. The 27-year-old ship changed its name at least seven times and hoisted at least four flags and is reported to have been transporting ore since September 2008.

The vessel is currently reported to be near the coast of Mumbai.

Source: Indian Express. 28 June 2012
http://www.indianexpress.com/news/us-ship-with-toxic-past-gets-gpcb-nod/967699/

26 June 2012

GMS report on Indian shipbreaking industry for WEEK 25 of 2012:

With the Indian rupee trading at just over 57 to the US Dollar towards the end or the week, total confusion and panic entered the market and main end buyers simply held back their offers.

This has been an ongoing theme for a couple of months now, a trend that has knocked off hundreds and thousands if not millions off end buyer purchases during this time.

Consequently, a whole swathe of buyers has simply refused to offer while the currency crisis persists. Whilst capacity and demand remains good (as good as the present can permit), there are very few signs of any sort of settled levels with which to base firm offers on.

As a result, very few deals have been concluded recently, and those that have been done and are only just arriving, continue facing close scrutiny from end buyers. In most cases, end up facing trouble and losing money in the process.

Nasco sold their East German built general cargo type vessel YONG AN MEN (9,210 LDT) for USD 365/LT LDT in the one market sale of the week. East German built vessels are very low on the list of desired vessels in India due to the wastage of the steel.

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_25_2012/270340.html

GMS report on shipbreaking industry for WEEK 25 of 2012:

Despite falls of over USD 100 LT LDT in the demo markets over the past six weeks or so, and an overriding air of despondency amidst continuing falls in prices, deals continued to be concluded as owners proved themselves to be more than willing to sell at the lower levels.

Several deals on dry vessels were done in the 350s and 360s/LT LDT in the sub continent the clearest sign yet that this new reality on prices is here to stay (at least for now). Indeed India has become so close in prices to China that many vessels are no longer making their way over to the sub-continent.

With a continually steady and willing supply of vessels mixed in with weak local fundamentals (both currency and steel prices), there appears little hope of prices improving any time soon.

Certainly, with several months left for the monsoon season to run, it may be that prices remain relatively stagnant through August 2012 at the earliest, when there tends to be the traditional uptick in prices.

Making matters worse, with freight rates still subdued and many vessels struggling to breakeven, let alone make any money, the supply of vessels is expected to continue through the summer. However, with cash buyers frequently burned over the course of the falls (when every day prices were lower and losses increased), offers may be on the conservative side in anticipation of potentially further falls ahead (especially from India).

What is needed is some stability in the market several weeks of no volatility in currency or steel prices after which, a base could be established for increased buying activity gains in the future.

As of now, for week 25 of 2012, GMS demo rankings for the week are as below:

Country
Market Sentiment
GEN Cargo Prices
Tanker Prices
Bangladesh
Weak
USD 380/lt ldt
USD 400/lt ldt
Pakistan
Weak
USD 370/lt ldt
USD 400/lt ldt
India
Weak
USD 360/lt ldt
USD 390/lt ldt
China
Weak
USD 350/lt ldt
USD 370/lt ldt

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_25_2012/270438.html

GMS report on Pakistan shipbreaking industry for WEEK 25 of 2012:

With plenty of vessels to choose from, Pakistan buyers purchased two of their favored tankers gas free for man entrv at some pretty impressive numbers indicative of their standing as perhaps the go to market for wet units currently.

The DHT ANIA despite being an older sale saw an extremely impressive USD 425 per LT LDT with some 400 T bunkers on board 'as is' Singapore. Unless the cash buyer has done a straight back to back deal at the time of negotiating, it is likely that this deal could result in hitting rough waters, considering today's market levels.

The purchase of the Indian owned aframax tanker RATNA URVI for USD 410 per LT LDT less 3% address commission is made doable only by an end buyer that offered slightly over the market and subsequently helped in concluding the unit at an extremely strong price.

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/middle_east_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_25_2012/270383.html

GMS report on China shipbreaking industry for WEEK 25 of 2012:

Another week of stability on local markets saw several interesting and high priced sales concluded for the week.

The Cyprus Maritime owned bulker MEXICO CITY (10,979 LDT) went for a huge price of USD 367/LT LDT with the full spares and several hundred tons of bunkers included in the sale responsible for the decent level.

The WELMOUNTAIN (24,308) also with some fuel and built 1992 in Poland fetched a firm USD 360/LT LDT in a direct transaction between owners and yard.

There are open yards to buy in both North and South despite a number of vessels being sold recently - a settled price is contributing to some overall greater interest to acquire.

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/chinese_news/GMS_report_on_China_ship_breaking_industry_for_WEEK_25_2012/270400.html

GMS report on Bangladesh shipbreaking industry for WEEK 25 of 2012:

The large number of vessels at anchorage, with more still arriving, has resulted in fewer open end buyers ready to offer, and a subsequent softening in prices and demand.

Many Chittagong buyers though, are taking advantage of the softer levels and trying to even out their high priced purchases of the past few months. As a result, offers are forthcoming at levels equivalent to, or just a shade above India, as buvers with preciously yard-space look to pick up a bargain or two.

Meanwhile, couple of market deals for the week include that of the double hull Nasco bulker HEKG SHUN XING (9,168 LDT) for a bargain USD 360/LT LDT. Additionallv, TBS controlled bulker LA JOLLA BELLE was re-committed after failing a few weeks ago, at 375/LT early in the week.

With lower import taxes 101 July deliveries, there may be more deals concluded at the new levels as owners become increasingly willing to sell amidst dire freight rates and even though recycling prices are some USD I00/LT LDT lower in the last month alone

Source: Steel Guru (Source - GMS Weekly). 26 June 2012
http://www.steelguru.com/indian_news/GMS_report_on_Bangladesh_ship_breaking_industry_for_WEEK_25_2012/270347.html

18 June 2012

Polar Sea scrapping put on hold:

A last minute reprieve will prevent, for now, a disabled Coast Guard heavy icebreaker from being cut up for parts and scrapped for metal, announced Sen. Maria Cantwell's office in a June 15 statement.



The Polar Sea, one of the Coast Guard's two heavy icebreakers, suffered massive engine failure in 2010 and has been set for decommissioning since February 2011. The 399-foot ship was set to be dry-docked June 18 to have major portions of its interior sealed off and have its propellers removed, Cantwell said. The Coast Guard's other heavy icebreaker, the Polar Star, is undergoing a $57 million refurbishment by Vigor Shipyards in Seattle with a planned return to service in 2013.


According to Cantwell's announcement, Coast Guard Commandant Adm. Robert Papp agreed during a June 14 meeting with her and Sens. Mark Begich (D-Alaska) and Lisa Murkowski (R-Alaska) to postpone the ship's scrapping through the end of 2012.

Source: By David Perera. 17 June 2012.
http://www.fiercehomelandsecurity.com/story/polar-sea-scrapping-put-hold/2012-06-17

Germany and China work towards ‘greener’ ship recycling:

Germany/China: Germanischer Lloyd (GL) and the China National Ship Recycling Association (CNSA) have signed a memorandum of understanding committing them to investing their mutual knowledge and resources in promoting green ship recycling in China. Their efforts will centre on improving research practice and setting up a range of training programmes and pilot projects.

The agreement was signed at the Beijing workshop on the ‘Early Implementation of the Technical Standards of the Hong Kong Convention in China’. According to Gerhard Aulbert, GL Vice President & Area Manager of Greater China, the decision to join forces ‘underlines the commitment of the Chinese ship recycling industry to reducing the environmental impact of a ship, through to the end of its useful life cycle’.

CNSA President Xie Dehua said he shared Mr Aulbert’s hopes that ‘intensive long-term collaboration’ would focus the partners more clearly in finding a sustainable approach to ship recycling. ‘It is my belief that a good collaboration by both sides in training, pilot projects and funding is of immediate significance for exploring and attaining the goal of greener ship recycling,’ he said.

To help ensure that ship recycling yards comply with a stricter environmental regime, GL and the GNSA have promised a programme to familiarise workers and management with incoming regulations and requirements.

Building on the foundations set by the Hong Kong Convention, which will come into force in 2015, workers will be brought up to speed on how to treat hazardous materials correctly, while yard managements will be trained in preparing a ‘Ship Recycling Facility Plan’, a set of procedures designed to prevent accidents and spills.

For more information, visit: www.gl-group.com

Source: Recycling International. 18 June 2012
http://www.recyclinginternational.com/recycling-news/6346/other-news/germany-china/germany-and-china-work-towards-greener-ship-recycling

17 June 2012

Ship Demolish: Barwin Shipping

Barwin Shipping is a leading brandname in Shipping Agents for demolition of old ships, since last 24 years. We specialize in handling demolition vessel, which arrive at India representing foreign principal.


We handle all mediation pre-requisites for ship-demolition such as sourcing, price negotiation, documentation till successful beaching, on be-half of  our Owner/Seller of ships, which arrive in Mumbai & other Ports.

Barwin Shipping is known for its professionalism, honesty & ethical approach as a brokers in Ship Breaking business. Our dedicated & experienced team work round the clock along with leading ship breaking companies having latest ship demolition infrastructure.

Our proven track record and vast database of shipbreaking Industry make us the most preferred mediater for Shipbreakers in India. That's why Barwin Ship has a good reputation with all Owner, Cash Buyers & Importer-Shipbreakers.

Ship Recycling: 2-day course

24 September 2012 — 25 September 2012 Singapore

Key Learning Outcomes:

  • ·  Gain insights into the commercial factors shaping scrapping decisions and the decision behind when and where to recycle ships
  • ·  Identify the challenges and obligations by all stakeholders when a ship is to be recycled and develop an effective ship recycling plan
  • ·  Know the costs involved in ship recycling and be in a position to decide the best option for your business
  • ·   Ship scrapping agreements – what to look for
  • ·  Learn more about ‘green ship recycling’, assess its ‘sustainability’ both from commercial and social aspects, and know how your business can benefit from it
  • · Understand the cradle to grave approach of upcoming ship recycling legislation and identify the risks involved and how to handle them
Who should attend?

This course is intended for Marine Superintendents, Engineering and Technical Professionals, Operations, Commercial Directors, HSE experts and other professionals engaged in ship recycling decisions from the commercial shipping and offshore oil & gas sectors.

This course is especially relevant to:
·         Shipyards
·         Shipowners
·         Broker & Cash Buyer
·         Oil rig operators and owners
·         Ship Recyclers
·         Port State Control
·         Flag State Administrations
·         Classification Societies

International Course Director:

Henning Gramann is a well-known expert for all aspects of the Hong Kong Convention and ISO 30000. He is Technical Advisor for Ship Recycling at the International Maritime Organization. His vast experience in this relatively new topic ensures that in-depth knowledge is presented comprehensively and in a practical manner to allow all participants, from manufacturers to ship recyclers, to prepare themselves for today’s and upcoming challenges related to recycling of ships.

Source: IBC.

Shiprec 2013: Conference in Sweden

April 7, 2013
2:00pm
Orkanen at the Malmö University, Sweden


Recycling is undoubtedly the most environmentally friendly way to dispose of ships at the end of their operational lives. Nearly all of the materials on board can be recycled, reused, or refurbished. Ship recycling is faced with numerous challenges and there is growing public awareness of the associated environmental, safety, and health hazards. The issue calls for continued scrutiny and debate.

International and non-governmental organizations, governments, shipowners, shipyards, classification societies, universities, and research institutes are among the many entities anticipated to participate in the Conference. SHIPREC 2013 will afford the opportunity to share knowledge and information and exchange innovative ideas and solutions.

Source:    
http://www.wmu.se/events/shiprec-2013

Suspension of bunkering business: $15 million drained out

Bunker sale to ships calling at the country's prime maritime port of Chittagong remains suspended for about one month following the haul of large quantity of furnace oil by law enforcers at Anu Majhir Ghat area in the city ahead of the delivery of the consignment to unauthorised quarters.

Due to suspension of the bunkering business since May 20 the country has been devoid of a minimum earning worth US$ 15 million in foreign exchange, according to estimates of the shipping business.

Normally there is a sale of more than 20,000 tonnes of furnace and diesel oil a month to the foreign and local ships calling at the port. Furnace oil, the main consumption of the seagoing vessels, is sold at $ 90 a tonne and marine diesel at $950, as per rate of state-owned Jamuna Oil Company, which is entitled to supply the fuel to the ships in the port.

Jamuna Oil, a subsidiary of BPC (Bangladesh Petroleum Corporation), under the ministry of energy, power and mineral resources, stopped bunkering to the ships years back for reasons best known to them, an official of Chittagong Port Authority said.

By that time the business developed in the private sector as a group of bunker suppliers started in a limited scale supply of furnace oil to the foreign bulk cargo and some local feeder vessels, which also remains stopped since May 20 last. The private traders procure the oil from the ship breaking yards at Sitakunda seacoast of Chittagong.

Executive director of Rainbow Shipping Lines and senior vice chairman of Bangladesh Shipping Agents Association Kamal Hayat has said, bunker sale in Chittagong Port remains practically suspended for a month while the country is loosing at least $15 million a month on account of bunker supply only due to negligence of proper authority in the government to this hugely potential sector.

He said that Bangladesh can supply a good quantity of furnace oil of the scrap ships to the seagoing ships in Chittagong Port and its outer anchorage, as well as other industrial plants, if rules are formulated for environmentally procuring, storing and supplying of the fuel from the ships brought for dismantling, through the qualified and trained workers now engaged at the shipbreaking yards.

Regarding the seizure of furnace oil delivered from the Padma Oil Company's Guptakhal Depot at Patenga he said, "Incidents of misappropriation of the government-imported oil are nothing new. It is for the first time that it has been detected by the law enforcers but this illicit trading has been done over the last 10 years. But that should stand on the way of growing up a huge potential sector."

He said that a group of corrupt officials of the oil marketing companies and influential people are involved in the process of taking delivery of furnace, bitumen etc in the name of different industrial plants by submitting false papers.

The government is importing huge quantity of furnace oil from abroad every year. In the last April also the government decided to import 0.12 million tonnes of furnace oil to meet fuel demand of the quick rental power plants, he said adding that a good percentage of our furnace oil demand can be met if the oil available from the scrap ships is procured through proper policy guidelines.

Source: the financial express. By Pankaj Dastider. 16 June 2012
http://www.thefinancialexpress-bd.com/more.php?news_id=133246&date=2012-06-17

There has been little activity compared to recent months...

       The market remains depressed with little activity compared to recent months, and the main problem facing cash speculators is to actually find an interested breaker.


•       The talk of the town this week concerns the budgets that have been announced in Pakistan and Bangladesh. The initial reaction is that the Pakistan budget is negative towards the industry, whereas the Bangladesh announcement is relatively neutral adding no real change. In Pakistan, the sales tax on the re-rollable material obtained from the shipbreaking industry was increased, which some parties suggest will hit the price for tonnage downwards by about USD 15-20 per ldt. Other sectors of the local steel industry have also been hit by tax increases and in response they have approached the government for the revision in the sales tax increase recently made in their budget. In view of this, the government have established a committee comprised of different sector members to look into the matter. How long this exercise will take and whether any reversal decisions will be made or not remains to be seen.


Source: Clarksons. 11 June 2012
http://www.clarksons.net/sin2010/markets/Market.aspx?news_id=32690

Coast Guard icebreaker gets reprieve from demolition

Senators prodded Coast Guard to reconsider demolishing Polar Sea.

SEATTLE -- The Coast Guard has postponed plans to scrap the Seattle-based icebreaker Polar Sea this year.

Coast Guard Commandant Adm. Robert Papp made the decision Thursday after meeting with Sens. Maria Cantwell of Washington and Mark Begich and Lisa Murkowski of Alaska, the senators said Friday.

"The Polar Sea's hull is still in sound condition," Cantwell said. "Postponing its scrapping allows the administration and Congress more time to consider all options for fulfilling the nation's critical icebreaking missions."

The United States needs more icebreakers in the Arctic, the Alaska senators said.

"While this may only be a six-month respite for the Polar Sea, I will use this period to work through my role on the Appropriations Committee to make America's icebreaking capacity a top priority," Murkowski said.

The 399-foot Polar Sea is 35 years old and has been out of service since an engine failure in 2010. It had been scheduled to be dry-docked on Monday for the first steps in demolition.

Its 36-year-old sister ship, the Polar Star, has been on caretaker status since 2006 and is undergoing a $57 million upgrade. The rehabbed Polar Star is expected to return to service next year.

The United States currently has only one working icebreaker, the Healy. It was used last winter to escort a Russian tanker to Nome for an emergency fuel delivery after a fuel barge failed to arrive before the Bering Sea froze.

The Healy is a medium-duty icebreaker designed to crush ice about 5 feet thick. The Polar Sea is designed to break through ice up to 21 feet thick.

One Coast Guard study determined the agency and the Navy need six heavy duty icebreakers and four medium icebreakers, the senators said. The reduction in Arctic ice has created more opportunities for Northwest Passage trade, fishing and oil exploration, as well as more environmental and security concerns. The icebreakers also travel to Antarctica to resupply McMurdo Station.

The hull is the costliest part of an icebreaker to build, said Brian Baird, a former Washington congressman who is now vice president of Vigor Industrial, formerly Todd Shipyards, which repairs the icebreakers. Building a new icebreaker could take 10 years and cost more than $800 million, Baird told The Seattle Times.

Source: Anchorage daily News. 15 June 2012
http://www.adn.com/2012/06/15/2506218/coast-guard-to-keep-seattle-based.html

THE ASAHI SHIMBUN – RIO+20: IN SOUTH ASIA, IT IS SURVIVAL THAT COUNTS… NOT THE ENVIRONMENT

Half a world away from here, a high-profile U.N. conference will kick off June 20 to discuss ways to create a “green” global economy.

For impoverished countries like Bangladesh, the ramifications could be huge.

A topic that is bound to be raised at the U.N. Conference on Sustainable Development (Rio+20) in Rio de Janeiro is whether it is possible to engage in economic activities that can both eradicate poverty but not harm the environment.

For the tens of thousands of Bangladeshis involved in the ship breaking industry, the decisions reached in Brazil might determine their future–and not necessarily, in a way that will help them.

While conference delegates gather in impressive surroundings to thrash out the world’s problems, legions of dirt-poor Bangladeshis will do what they have to everyday to survive: toil away at dangerous jobs for a pittance because they have no other choice.
A large freighter that has been beached is being broken up for recycling. Its steel body lies split open, exposed to the elements.

Dozens of workers are busy with acetylene torches, showering sparks everywhere.

A huge chunk of steel is being worked on. The workers, scurrying around barefoot, haul heavy chunks of metal on their backs and in their bare hands.

The shoaling beach extends more than 10 kilometers and is located some 30 km north of Chittagong, the second largest city in Bangladesh.

More than 100 sites are set up as yards to demolish large vessels.

Decommissioned ships are run aground and then hauled to the beach with ropes, much as slaves in ancient Egypt moved huge stone blocks to build the pyramids.

The method is called “beaching.”

The surface of the nearby Bay of Bengal is awash with fuel oil. Parts of the beach are thick with oil, and workers, if they don’t watch their step, can sink in the sand up to their knees.

It is estimated that 70 percent of all big ships decommissioned in the world are demolished in either Bangladesh, India or Pakistan.

Shipbreaking has been roundly criticized since around 2000 for the damage it causes to the environment, and the lack of safety provisions for workers–who are paid a pittance for putting in 11-hour days of strenuous, dirty and dangerous work.

At the site near Chittagong, Mohammed Jamal Uddin climbed to the deck of a decommissioned vessel and lamented: “My wage is 25 taka (about 25 yen, or 30 U.S. cents) an hour. I work 11 hours a day. So I can get only 300 taka at most, including overtime money.”

Asked why he chose this line of work, the 42-year-old replied: “I have no choice. We have no (other) jobs because there are too many people in Bangladesh.”

The shipbreaking business is highly competitive, a situation that is fueled by extremely low labor costs.

Workers are employed on a seasonal basis, or for the several months required to demolish a single vessel.

Demand for demolition fluctuates sharply.

For this reason, operators of ship breaking businesses avoid offering regular employment.

They also cut corners on safety costs and steps to preserve the environment.

Such cost-cutting is possible due to the government’s loose regulations on labor and environmental protection. This only serves to fuel a vicious cycle.
But Nazmul Islam, secretary of the Bangladesh Ship Breakers Association, counters the criticism that operators are sacrificing the environment and safety.

“We are offering helmets and gloves to workers. But they do not want to use them.”

Immediately after I interviewed him, one worker who was caught by steel doors while working died in early May.

According to local news reports, at least 38 workers died on the job during the past 44 months, including the man cited above.
Environmental pollution is another factor.

In 2010, the World Bank estimated that 38,000 tons of asbestos and 24,000 tons of polychlorinated biphenyl (PCB) will accumulate in the ship breaking yards in Chittagong in the next 20 years. It also said that a huge volume of hazardous materials will flow out to markets for parts removed from the ships.

An official of the Bangladeshi government’s Ministry of Environment and Forest countered the estimates, calling them excessive. However, the official conceded that the ministry has no data on the issue.

Iftekhar Uddin Chowdhury, a professor of sociology at Chittagong University who has conducted on-the-spot research, acknowledged there are a number of problems in the ship demolition industry.

Even so, Chowdhury said the industry was a vital cog in the economy of Bangladesh because it employs tens of thousands of workers.

Besides, Bangladesh has to depend on decommissioned ships for raw materials of steel products because the country has no iron mills.

“The only way to improve the industry is through investment,” he said. “But that will prove difficult if we leave it to the demolition business operators, who tend to see only short-term profits. That is the problem.”

In neighboring India, however, people in the industry have already begun to address the situation.

The world’s largest ship demolition area is located at Alang beach in Gujarat state, north of Mumbai. It has 131 operating yards, which account for about 90 percent of the demolition volume in India, the world’s No. 1 in the industry by volume in 2010.

There, much of the demolition work has been mechanized, giving India a huge advantage over the manual labor that is the hallmark of the work in Bangladesh.

Workers also are provided with more up-to-date equipment.

But the beaching method, which causes oil to spread on the surface of the sea, is also used there. But perhaps, not for long.

Plans are being drawn up to lay concrete on the beach to prevent oil leaking and to construct a facility to dispose of the oil.

The government of Gujarat state, which owns the beach, is working with Japan on details of the project.

The Japanese government is set to provide yen-denominated loans for the project.

Japan’s involvement stems from its 2009 decision to adopt the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which obliges members to manage hazardous materials appropriately and devise sound methods of disposal.

If the Hong Kong Convention takes effect, it will become impossible to demolish ocean-going ships in facilities other than those that meet certain standards.

Japan is still one of the world’s biggest maritime powers. It had a 21-percent share of newly constructed vessels, based on volume, in 2010. The same year, the volume of ship tonnage effectively owned by Japanese companies amounted to 14 percent on a worldwide basis.

“If we neglect the (environment and safety) issues at ship breaking yards, the yards will cease to exist,” said a source in the Japanese shipping industry.

In Bangladesh, local nongovernment organizations (NGOs) for environmental protection have repeatedly succeeded in getting courts to issue operation suspension orders to ship breaking yard operators since 2009. As a result, ship demolition volume there has decreased drastically.

The Bangladeshi government was compelled to compile regulations in 2011 for the first time. However, few people think the regulations have teeth.

Before and shortly after World War II, Japan was the main industry player. That honor transferred to Taiwan in the 1970s. In and after the 1990s, however, India, Bangladesh, Pakistan and China have accounted for more than 90 percent of all ship demolition in the world.

The demolition volume has drastically increased since the collapse of U.S. investment bank Lehman Brothers in 2008. Ships generally have a lifespan of between 20 and 30 years. The large number of vessels that were constructed in and after the second half of the 1990s will soon be destined for demolition.

But when that happens, there could be a shortage of shipbreaking yards.

For the companies in developed countries that construct and operate the vessels, ship demolition is nothing more than disposal of industrial waste. The transfer of hazardous materials across national borders was restricted by the Basel Convention that took effect in 1992.

In the case of ocean-going ships, however, shipowners’ countries are often different from those where the vessels were registered. Besides, the ships usually cross national boundaries, making it difficult to apply the restrictions to those vessels.

The Hong Kong Convention is not without its problems, either.
For example, it has no international inspection system to check demolition facilities.

Source: Shipbreaking Platform. By Susumu Yoshida. 14 June 2012
http://www.shipbreakingplatform.org/the-asahi-shimbun-rio20-in-south-asia-it-is-survival-that-counts-not-the-environment/