28 February 2014

LRQA Turkey certifies Aliaga Ship Recycling Company to Ship Recycling Management System ISO 30000:2009

First ISO 30000 certification for LRQA in the East Mediterranean & Black Sea

Aliaga Ship Recycling has become the first ship recycling company in Turkey to successfully implement the Ship Recycling Management System standard and achieve ISO 30000:2009 certification from leading assurance provider LRQA.

Cengiz Temurtas, Aliaga Company Manager said: “We are proud of being the first ISO 30000 certified company in Turkey. By having this high value-added system implemented to our organisation, we are now much more confident with the quality of the business we conduct and meeting our valuable clients’ high expectations that are increasing day after day. We would like to thank to LRQA and their auditors who have added extra value to our company with their unique Business Assurance approach during their assessments.”

This was also the first ISO 30000 certification for LRQA in the East Mediterranean & Black Sea region and a big step for Lloyd’s Register Turkey in developing new business opportunities with the many ship recycling companies in the country and two new ISO 30000 contracts have already followed. Apart from ISO 30000 certification, LRQA Turkey has delivered their core assessment services into this growing sector including certification to ISO 9001 (quality), ISO 14001 (environmental) and 18001 OHSAS (occupational health and safety).

ISO 30000 certification is highly influential in the global rush to comply with the new European Union (EU) Regulation on Ship Recycling and the International Maritime Organization (IMO) Hong Kong Convention. LRQA, as a member of Lloyd’s Register Group Limited, has strong foundations in the maritime industry which greatly assists Lloyd’s Register Marine in continuing their world leading position in ship recycling.

Notes to editors:

About LRQA
LRQA is a member of the Lloyd’s Register group. LRQA is a leading independent provider of assurance services including assessment, certification, validation, verification and training across a broad spectrum of standards and schemes. For Group details see http://www.lr.org/entities.

About Lloyd’s Register
Lloyd’s Register (LR) is a global engineering, technical and business services organisation wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering. Founded in 1760 as a marine classification society, LR now operates across many industry sectors, with over 9000 employees in 78 countries.

Source: 27 February 2014

EAC's nod to Adani's ship recycling facility deferred:

Seeks detailed plan on handling of hazardous waste, oil spillage, radioactive materials

The mandatory clearance for Adani's ship recycling facility is likely to be delayed. This is because the External Appraisal Committee (EAC) has sought detailed reports with regards to number of aspects. The company proposes to make the ship recycling facility operational within 12 months of mandatory clearances. But the silver lining for APSEZ is that the EAC has not found any merits in the issues of environment degradation raised by villagers who are likely to be affected by the project.

Also, the proposed location for the ship recycling facility is within the limits of the Mundra Port, which was granted environmental clearance (EC) and CRZ clearance in 2009 for waterfront development from MoEF. Hence, the pending litigation against the APSEZ in Gujarat High Court is not likely to impact the project. Furthermore, the EAC has recommended five year extension of EC and CRZ clearances to APSEZ for waterfront development activities.

The EAC had decided to defer EC and CRZ clearance to the ship recycling facility during its meeting held on January 22-24 last month. While deferring the decision on the project the EAC demanded detailed information on aspects like measures to prevent the spillage of oil and paint waste on land, sand bund, during ship breaking, along with quantity, method of disposal of contaminated soil in case of any accidental spillages.

It further sought details of hazardous wastes disposal system along with details of agreement made with the Treatment Storage $@$# Disposal Facility (TSDF), their permitted and operational capacity, EC under EIA Notification, 2006 and authorisation from pollution control board.

Another aspect the EAC wanted information on was facility for detection of radioactive materials which may accidentally or otherwise be present in the ship.

It also asked for action plan for transportation of waste water, bilge and slop water to the CETP (common effluent treatment plant), cumulative impact of the existing activities and proposed activity and proposed green belt near the facility.

On the opposition to the project by local villagers alleging blockage of creek, destruction of vegetation including mangroves, impact on fisheries and water pollution, the minutes of the meeting stated, "The EAC did not find merit in the above stated issues in view of the plans set forth by the APSEZ."

The EAC also found that the night time noise level in Dhurb village in vicinity of port was higher than the permissible level and asked APSEZ to submit measures to mitigate the issue.

The proposed project involves development of recycling facility adjacent to existing West Port, in Mundra near Vandh village of Mundra block in Kutch district. The project area covers 40.7432 hectares reclaimed land created by dumping dredge spoils.

In includes recycling of approximately 40 ships annually of average Light Displacement Tonnage (LDT) 7582 tonnes. It is estimated that nearly 0.25 million tonne (Mt) per year of scrap metal will be recovered along with 11,000 tonnes per year machinery and 10,000 tonnes per year of miscellaneous items.

According to APSEZ, the project will require 60 cubic meter per day of industrial water and 100 cubic meter per day of potable water. Treated sewage and sea water will be used for dust suppression and horticulture. The potable water will be supplied by Gujarat Water Infrastructure Limited tankers or will be drawn from desalination plant in the West port, while the power will be required only for illumination and in the offices which will be drawn from the grid.

Source: 28 February 2014

27 February 2014

Platform News – Authorities demolish two illegal shipbreaking yards in Bangladesh

(pictured: the state of the coastal forest following the illegal tree-cutting in 2009)

Brussels, 27 February 2014 – The NGO Shipbreaking Platform and its 18 member organisations around the world applaud the Forest Department and the District Administration for removing two shipbreaking yards that had been operating illegally on protected forest land for several years in Chittagong, one of the worlds’ biggest toxic ship graveyards located in Southeast Bangladesh [1]. SK Steel and SK Ship Breaking and Recycling were able to lease the land illegally in 2009, chopped down thousands of mangrove trees and started importing end-of-life ships for breaking on the beach. On 6 October 2013, the Supreme Court of Bangladesh declared the yards illegal, ordered them to be evicted and the trees to be replanted.
“Finally the Government is facing up to its responsibilities and enforces our environmental law and the Court’s decisions,” says Syeda Rizwana Hasan, Chief Executive of Platform member organisation BELA (Bangladesh Environmental Lawyers Association). “Shipbreakers break the law every day by importing ships containing hazardous waste into Bangladesh and having them beached, and we need to stop all illegal operations.”
In July 2009, more than 14000 mangrove trees that had been planted with the support of the United Nations in order to protect the local communities against the devastating impact of cyclones and floods were felled down to make way for new shipbreaking yards. Amongst the operators of the yards was a Bangladeshi Parliamentarian, who also ordered to illegally cut thousands of trees. Some of the tree-cutting took place during night time, and local communities only found out about it when it was too late.
In response to the tree-cutting, the Department of Forest, an agency of the Ministry of Environment and Forest that protects and manages the forests of Bangladesh, filed a case against the illegal shipbreaking yards in 2009. Already in 2010, the High Court stated that shipbreaking should not take place on the beach and on forest land. Moreover, it declared four shipbreaking yards illegal that had been set up after cutting down the mangroves, and asked for afforestation. But shipbreaking continued in the yards and the trees were not replanted. The Supreme Court decision of October 2013 supported the initial plea of the Forest Department, who has now taken action together with the District Administration and has evicted the illegal companies. Thousands of saplings have reappeared where ships were broken until recently.
Bangladesh is regularly struck by cyclones and floods that inundate villages and leave thousands of families without a home or a livelihood. The presence of trees along the coastal belt, including mangroves, helps to prevent erosion and to mitigate flooding. Environmental plundering and illegal land grabbing by shipbreaking yards destroy the coastal green belt and local villages are left vulnerable to cyclones, coastal and river erosion as well as floods.
The NGO Shipbreaking Platform has followed the illegal tree-cutting case since the beginning [2].
“Today, Bangladesh sends a clear signal to the global maritime industry and those involved in shipbreaking: we do not  want your ships polluting our environment and endangering the lives of our communities,” says Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform.
Patrizia Heidegger
Executive Director
NGO Shipbreaking Platform
+32 2 609 44 19
[1] See the following articles for more information and to see pictures of the eviction:
[2] See the 2010 report about the Platform’s visit to the Chittagong shipbreaking yards here: http://www.shipbreakingplatform.org/platform-team-goes-to-shipbreaking-yards-of-bangladesh/
Source: shipbreaking platform.

25 February 2014

Forested Land in Chittagong: 2 shipbreaking yards being removed

Bangladesh Forest Department yesterday demolishing structures two ship breaking yards, SK Steels and SK Ship Breaking and Recycling, erected after razing several thousand trees on 14.5 acres of forested land in Sitakunda upazila of Chittagong four years ago.  Photo: Star

The Forest Department yesterday started removing the installations of two ship breaking yards, which were set up after razing several thousand trees on 14.5 acres of forested land in Sitakunda upazila of Chittagong four years ago.
The drive was launched in line with a Supreme Court order of October 6 last year. The review of the verdict was completed on January 30.
The court also directed the Chittagong deputy commissioner to give all assistance to the eviction drive and not lease the land to any person or organisation in the future.
The eviction team, led by Executive Magistrate Abdullah Arif Mohammad, planted over 1,000 saplings of different tree species on the recovered land.  

Afterwards the department planted saplings there. Photo: Star

Afterwards the department planted saplings there. Photo: Star

In 1989, the authorities started foresting 125 acres of land along the Sitakunda coast, said Divisional Forest Officer (DFO) of the coastal division RSM Munirul Islam.
But in 2009, some land and district administration officials illegally leased out 14.5 acres of the land to SK Steels, and SK Ship Breaking and Recycling, said Range Officer of the coastal forest division Muktaruzzaman. He said the officials admitted this before court.
To set up the yards, the lessee felled 15,000 trees on July 3, 2009, said officials. Yesterday, two buildings were demolished, while the rest of the installations, including power generators, will be removed today.
Kamal Chowdhury, one of the three owners, alleged that they were not informed of the drive beforehand. "Now we have crores of taka in loan. How will we repay?"
The Forest Department filed a case against the leasing of the land in 2009. The case finally ended up in the SC.

Source: the daily star. 25 February 2014

Shipbreaking yards being cleared in Chittagong:

Two illegal shipbreaking yards, causing considerable damage to coastal forests at Sitakunda Upazila in Chittagong, are finally being cleared.

Assistant Commissioner (Land) Abdullah Al Mamun said they had begun evicting SK Steel and SK Ship Breaker Monday in keeping with a court order.

Chittagong Coastal Forest Department official RSM Monirul Islam said it might take a day or two to complete the drive.

Owner of the yards Md Nazim Uddin had established them on 14 acres of land at Modhyam Sonaichharhi of the Upazila by cutting down 15,000 trees in 2009, according to a news agency.

Source: the financial express. 24 February 2014

19 February 2014

Photographer Edward Burtynsky donates 34 works to Vancouver Art Gallery:

Photographer Edward Burtynsky donates 34 works to Vancouver Art Gallery

World renowned Canadian photographer Edward Burtynsky, famous for his surreal landscapes and provocative series chronicling the world’s dependence on oil, has donated 34 works to the Vancouver Art Gallery.

The gallery now owns 44 photographs by the Ontario-born artist, and will feature his work at an upcoming exhibition from March 1 to May 26.

“We would like to express our gratitude to Edward Burtynsky for this significant body of work,” said VAG director Kathleen Bartels, in a statement on Wednesday, adding that his gift will help build the gallery’s photo-based collection of works by leading contemporary artists.

Burtynsky’s work captures surreal landscapes that society depends on, such as marble quarries, oil production centres and refineries and ship breaking sites.

His film directorial debut Watermark won the 2014 Best Canadian Documentary Film prize, awarded by the Toronto Film Critics Association.

The record price at auction for Burtynsky’s work is $38,250 for a piece called Shipbreaking #10, Chittagong, Bangladesh, according to the Heffel art index. The median price of the 87 works of his that have sold at auction is $9,600.

According to the gallery, the new addition of 34 works comprises three decades of Burtynsky’s photography, representing eight different series from 1983 to 2013. The Breaking Ground series, for instance, features images of cars, structures and roads in B.C., and documents the C.N. Rail track, according to the art gallery, while the Quarries series was shot in India, Italy and China.

Another of his series, Oil, Fields, Mines and Tailings documents his fascination with the extraction of resources. The most recent series Water has led Burtynsky to travel around the world to understand the use and misuse of this ubiquitous resource, including looking at human-inflicted disasters such as the oil spill in the Gulf of Mexico in 2010.

Burtynsky was one of the inaugural recipients of the TED Prize in 2005, and was awarded the Order of Canada in 2006.

Source: Vancouver sun. 18 February 2014

‘Huge delegation’ of Indian ship recyclers head to Singapore for TradeWinds Forum:


A record delegation of 50 ship recyclers, steel mill owners and cash buyers from India will descend on Singapore during March 4-5 for TradeWinds Ship Recycling Forum. 

Led by Nitin Kanakyia, Hon. Secretary of the Ship Recycling Industries Association (India), representatives of the leading Indian shipbreakers will draw attention to the benefits of recycling in India at a time when the future viability of beaching is being challenged.

Kanakyia commented, "Indian Ship Recycling Yards are committed to "Responsible Recycling". To show today's Alang and enthusiasm for improvement to the world's shipping community, SRIA is sending huge delegation to the Forum this year. We want to express our commitment and solidarity towards improvement."

The SRIA delegates will be joined by recyclers from Pakistan, Bangladesh, Turkey and China during the two day event which alternates between Singapore and Dubai.  Forum Director Jon Chaplin commented, ‘The Forum is unique in that it combines both the commercial and regulatory recycling communities resulting in very lively discussions about future and present practices.’

In a move designed to pile pressure on ship owners to recycle old vessels more responsibly, Patrizia Heidegger, Executive Director of environmental group The NGO Shipbreaking Platform will offer delegates a taste of new initiatives in the pipeline, with outspoken campaigner Jim Puckett, Executive Director of Basel Action Network (BAN) in support.  European Commission policy officer, Emilien Gasc will present the European Regulation during a session dealing with how the regulation is impacting the industry as a whole.

‘This is a real chance for all sides to meet, engage and get to know the issues and each other better’ said Chaplin. ‘A full social networking programme of dinners and drinks receptions, where delegates can exchange views informally, has been organised  by sponsors Class NK and WIRANA’ Chaplin added.

Rakesh (Billu) Khetan, CEO of cash buyer WIRANA and the event's Principal Sponsor commented "the TradeWinds Ship Recycling Forum is always very robust and vibrant. While taking stock of the current situation it is always forward looking and drives all stakeholders towards a healthy exchange of views and making improvements. We are very happy to be supporting this event.”

The Forum concludes with a session designed to throw a spotlight on unwanted consequences of increasing competition between cash buyers and brokers entitled ‘The only way is Ethics’.  A presentation from leading shipping lawyer and Holman Fenwick & Willan partner, Stephen Drury will be followed by a panel discussion comprising some of the best known broking and cash buying names in the industry.

The record level of support for the Forum includes a substantial training grant for eligible delegates offered by Singapore’s MPA / MCF plus commercial sponsorship from WIRANA, ClassNK, Lucion Marine, Wilhelmsen Ship Management, Al Salam Insurance, van de poel, and St Kitts & Nevis.

TradeWinds Events is the conference arm of leading shipping news provider TradeWinds. The events are designed to help move business forward through information exchange, stimulating fresh thinking and professional networking. The growing portfolio of events comprises lively, independent and interactive conferences, seminars and roundtables covering a wide range of maritime sectors, including ship building, ship recycling, marine insurance, maritime security, LNG as a marine fuel, offshore shipping and technology, and vessel chartering. Each conference agenda is carefully designed to tackle the most topical and often controversial subjects.

Source: my news desk. 17 February 2014

Last voyage - Retired ‘supercarrier’ on its way to Brownsville ship recycler

USS Forrestal
USS Forrestal

The 1,063-foot-long aircraft carrier USS Forrestal was scheduled to arrive early this morning at the jetties marking the entrance to the Port of Brownsville ship channel.

The historic vessel’s final destination is All Star Metals’ ship-recycling facility, where it will be dismantled and sold for scrap.

The first of the Navy’s “supercarriers,” the Forrestal was launched in 1954 from Newport News Shipbuilding and Drydock Co. in Virginia and commissioned in 1955. Officially, the vessel is no longer named “USS Forrestal” since being decommissioned and struck from the Naval Vessel Register in 1993.

Last October, the Naval Sea Systems Command announced that All Star Metals was awarded the Navy contract to dismantle the Forrestal, named for James Forrestal, secretary of defense during the Truman administration.

The vessel was the lead ship of the Forrestal-class of carriers, which also included the USS Independence, the USS Ranger and the USS Saratoga, all of which have been decommissioned and designated for dismantling.

The Forrestal departed the Navy’s inactive vessel facility at Philadelphia early on the morning of Feb. 4, under tow by the vessel Lauren Foss, which All Star Metals contracted to do the job.

At least a few veterans who served on the Forrestal were expected to gather to watch its arrival this morning. In recognition of the 3,500 men and women who served aboard the ship, All Star Metals is planning a small, invitation-only event on Feb. 28 for local officials, dignitaries and a few others, including representatives from the USS Forrestal Association.

On March 1, All Star Metals will host an open visitation at its facility from 9 a.m. to noon for community members, veterans and members of the USS Forrestal Association. The vessel itself will be off limits due to Navy restrictions (the vessel remains Navy property until dismantling is complete).

In conjunction with the March 1 visitation, the USS Forrestal Association will hold an off-site event beginning at 1 p.m. For details, visit www.uss-forrestal.com.

The Navy paid a symbolic value of $0.01 to All Star Metals to have the mothballed carrier towed and scrapped. The ship recycler assumes all the risks and costs of towing the vessel, with the aim of recovering the costs and making a profit through sale of the scrap.

On Feb. 5, Sen. John McCain, probably the Forrestal’s most famous veteran, released a statement in which he recalled a catastrophic fire that took place aboard the vessel during the Vietnam War on July 29, 1967. The incident nearly cost the future senator and presidential candidate his life.

The Forrestal had been launching air strikes against the North Vietnamese from the Gulf of Tonkin when a Zuni rocket accidentally fired from an F-4 Phantom, striking McCain’s A-4 Skyhawk and rupturing the plane’s fuel tank.
The resulting fire and explosions killed 134 of his shipmates, injured 161 more, destroyed more than 20 aircraft and badly damaged the carrier to the tune of $72 million. The Forrestal was in dry dock at Norfolk Naval Shipyard for several months while repairs were carried out.

McCain wrote that the Forrestal, which featured the first steam catapult, angled flight deck and optical landing systems, “represented American ingenuity and shipbuilding excellence.”

He noted that during its 38 years of service the Forrestal and its attached air wings took part in missions all over the globe, including “dozens of NATO operations, overseas deployments, patrol missions and strategic port visits around the Atlantic and Sixth Fleets.”

“I will always remember and honor my brave comrades who died in the Forrestal fire,” McCain wrote. “Although the ship is being towed to Brownsville, Texas, to be physically dismembered, her legacy, the bonds forged and memories created among shipmates will live forever. I bid her a final ‘fair winds and following seas.’”

Source: Brownsville herald. 17 February 2014

GMS weekly report on Indian ship breaking industry for WEEK 07 of 2014:

The slew of container vessels now in the market has already begun to put a downward pressure on prices in India. With Bangladesh steel prices having decreased significantly during the week (by as much as USD 10 per LT LDT), the onus will clearly shift to Indian buyers to pick up the slack and import the majority of those vessels already sold to cash buyers.

The position that both, owners and (increasingly concerned) cash buyers with high priced unsold inventory, do not want to be in, is where they are chasing down the market as demand (and subsequently prices) cool off.

Even though the strong performance of the Indian Rupee (trading in and around a comfortable INR 61 to INR 62 to the US Dollar) and a steel price that is fluctuating daily (by about INR 100 to INR 200), the fundamentals for a decent resale currently remain in place.

What is of major concern to those close to the Indian market is an oversupply of similar (many are sister ships) panamax sized container vessels and a dwindling availability of open buyers with adequate LC facilities, plot space, and a demand to buy.

Of the vessels concluded for the week, the eye catcher, for an astonishing USD 495 per LT LDT (less commissions), was the Danaos controlled MARATHONAS (23,326 LDT) of superior Danish build, an excess 70 Tonnes bronze propeller and approximately 250 T bunkers upon arrival. It is understood one specific yard had a demand for exactly this type of unit, hence, the extremely aggressive price on show.

Source: steel guru. 18 February 2014

11 February 2014

Turning ship breaking into a safe and green industry:

Ship breaking industry offers the promise of employing thousands of hitherto jobless workers in Bangladesh. The sector supports the country's steel, shipbuilding and other heavy and light engineering industries.

Some of the recycled materials are exported, and the rest is sold and reused within the country. A lot of the materials are of high value to the local economy. In particular, recycling of steel for producing iron rods for construction, plates for new ships or for many other purposes is a lucrative business.

According to a FE report published late last week, Bangladesh emerged as the third largest ship breaking nation in the world in 2013; in 2012, its ranking was the second.

However, problems regarding safety, health and environmental issues have created a negative image for the industry, despite its positive contribution to job creation in a country with a high rate of disguised and open unemployment. Only the other day, three workers were seriously burnt when fire broke out in a scrap vessel in Sitakunda in Chittagong.

Previously, ship breaking was done in industrial nations, but because of its hazardous nature of operations, it has been shifted to South Asian countries where safety and environmental regulations are more relaxed. About 90 per cent of ship breaking in the world is done in India, Bangladesh, Pakistan and China.

The ship breaking industry has, however, great potential in Bangladesh, having one of the longest coastlines. But then there must be adequate safeguards for workers' safety and environmental hazards associated with it.

The International Maritime Organisation has been trying to implement guidelines, regulations and conventions for qualitative improvement of ship-breaking industry around the globe since 2003.

The 'Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships' is one of them. The Hong Kong Convention (HKC) was adopted in May 2009 and will come into force upon fulfilment of some requirements. It is applicable to all merchant ships greater than 500 gross tonnage as well as to all ship recycling facilities.

The European Commission, too, is going to enforce the 'European Regulation on Ship Recycling'. One of the key issues of both regulations, which directly affect the ship recycling industry, is the authorisation of ship-recycling facilities. Many ship recycling yards which are not up to the mark, may be eliminated because of restricted authorisation of ship recycling facilities.

Source: steel guru. 11 February 2014

Indian shipbreaking bounces back as rupee strengthens:

In the end, it was simply a matter of holding one’s nerve, refusing to commit locally and weathering the storm caused by the sagging value of the Indian rupee against the US dollar and the dipping prices of steel scrap.

As the Indian currency regained the ground lost in the second fortnight of January, to trade again in the respectable range of INR61 against the dollar, after briefly touching INR63, end buyers of scrap ships rushed back to the table seeking to acquire any available vessels on offer.

After a remarkably bullish start to the year, demand had tailed off as end buyers chose to wait and watch market developments before committing on new tonnage. Following the rupee’s recovery, demand surged again for all types of units in both Alang and Mumbai, with local sentiment pushing prices to some previously unthinkable levels.

Clean tankers attracted bids of $465 per ldt from India, with marginally lower levels seen from Bangladesh and Pakistan, while general cargo vessels were being quoted at $430 per ldt in India, $425 per ldt in Bangladesh and $415 per ldt in Pakistan.

“There are plenty of open buyers with yard capacity in the sub-continent barely half-full,” remarked Dubai-based cash buyers GMS. “Almost all types of vessel are in demand with a particular preference, perhaps, for mid-sized 7,000-14,000 ldt vessels, favoured due to the lower overall cutting time, in light of the constant volatility being seen in all markets.”

Nevertheless, no market sales were reported. Despite cash buyers holding onto a number of unsold units (particularly panamax sized container vessels committed for huge prices in earlier weeks), there has not been the substantial supply of tonnage that many had expected from the market in January.

With 16 vessels at anchorage in Chittagong, it has been a busy tide of deliveries and beachings in Bangladesh in the first week of February. Steel prices actually gained ground by as much as $10 per ldt, wiping out the previous week’s losses in the process.

There was little activity from China, whose bids were approximately $100 per ldt lower than those from India. The onset of the Chinese New Year holidays from 30 January meant that a vast number of Chinese workers would depart for their hometowns from the large cities and shipyards. 

It is now clear that the Chinese move, in the dying weeks of 2012, to provide subsidies – to the tune of a premium of RMB750 ($124) per gt, to be provided to Chinese flagged vessels that are recycled at domestic yards in North and South China – is unlikely to have any major impact on junk ship yards in India.

Bangladesh and Pakistan, however, could witness an impact as fewer old Chinese ships are expected to make their final voyage to their yards. There is still insufficient supply to satisfy the voracious demand, but if freight rates continue to slide, all this could change.

Source: sea trade global. 11 February 2014

GMS weekly report on Bangladesh ship breaking industry for WEEK 06 of 2014:

As Bangladesh tries its best to keep pace with a rampant Indian market, the competition intensified this week, particularly on geographically positioned tonnage with cash buyers assessing prices and merits in each location accordingly.

With many of the bigger buyers booked on the recent slew of capesize bulkers and larger container vessels concluded into Chittagong, enquiries began to emerge on smaller mid range vessels from 7-10,000 LDT.

With China emerging from holidays next week, the supply side of vessels stationed in the Far East is expected to pick up again to satisfy the demand of the remaining hot buyers.

Source: steel guru. 11 February 2014

GMS weekly report on Pakistan ship breaking industry for WEEK 06 of 2014:

Pakistan buyers looked on frustratedly for another week as Indian and Bangladeshi offers simply blew them out of the water on any competitive tonnage working (either cash buyer or private market tonnage).

The steady supply of panamax containers is not piquing the interest of Gadani buyers whose reluctance to buy such units rests on draft issues and the difficulties in beaching as a result.

However, as long as prices remain USD 15 per LT to USD 20/LT LDT behind their chief competitors there is little end buyers can do to get their hands on vessels, gas free for man entry tankers or not, amidst a growing demand for new vessels locally.

Source: steel guru. 11 February 2014

GMS weekly report on China ship breaking industry for WEEK 06 of 2014:

The ongoing Chinese New Year holidays saw minimal activity emanate from China this week. Even though, banks were officially working on Tuesday, most people remained on holiday, in their hometowns for the majority of the week.

In the grand scheme of things, the Chinese absence from the international ship recycling markets has made little difference to the ongoing sub-continent dominance and things are expected to remain the same, post-holidays as well.

However, it will be interesting to see where the Chinese market opens up as there is clearly demand for vessels and if the ongoing supply of state controlled Chinese flagged tonnage subsides, Chinese prices will have to pick up in order to compete and secure their share again.

Source: steel guru. 11 February 2014

GMS weekly report on Turkey ship breaking industry for WEEK 06 of 2014:

Another week went by highlighting the relatively weakened state of the Turkish Lira. Having hit its weakest point at the end of Jan (over the last 13 months), the fluctuation range was between TRL 2.196 and 2.285 against the US Dollar with the Lira closing on Friday at TRL 2.22, slightly stronger than where it had opened last Monday.

Still, it remains in a comparatively weakened state, lingering at the lowest levels seen over the last year. Meanwhile, the local market sentiment remained on the negative end of the spectrum as indicate prices for potential tonnage came off by region USD 5/Ton and talks of the market further weakening in the upcoming days, perhaps by another USD 5 per tonne to USD 10 per tonne.

In addition to the jumping Lira, another reason for the fall in prices is being attributed to the comparatively cheaper scrap steel being imported from the Black Sea area that is placing an increased pressure on prices for ships.

Source: steel guru. 11 February 2014

Heritage Ship 'Naomh Eanna' Set For Scrapping:

#NaomhEanna - A vessel considered the 'last Irish heritage ship' is set to be cut up this week as a campaign mounts to save her from the scrapheap.

The Naomh Eanna was built in 1956 in Dublin's Docklands and previously served as a passenger ferry in Galway Bay between the mainland and the Aran Islands.

Said to be "one of the last riveted ships built in the world", she has spent the last 28 years in a state of neglect at Grand Canal Dock and is reported to be taking on water, though it's believed she retains many of her original fittings and machine parts.

Last week it emerged that ownership of the Naomh Eanna has transferred to Waterways Ireland, who intend to tow her into the Grand Canal graving dock this week to begin disposal.

But according to Sam Field Corbett of marine heritage restoration business Irish Ship & Barge Fabrication, "no consideration was given to salvage and restore her".

Corbett says he is confident that a business plan can be prepared to attract investment for the Naomh Eanna's restoration - but fears that the scrapping plans may proceed with haste before any alternative resolution is considered.

In order for campaigners to save her, some €100,000 costs to Waterways Ireland would need to be met, on top of insuring the vessel and getting permission from NAMA to hold her in dry dock until repairs could begin.

Source: afloat. 10 February 2014

10 February 2014

NGO Shipbreaking Platform asked Hamburg Senate about shipbreaking practices:

Hamburg -- NGO Shipbreaking Platform and German Left Party in the Hamburg State Parliament have asked parliamentary questions about the shipbreaking practices of Hapag-Lloyd and other Hamburg-based ship owners to the Hamburg Government, known as the Senate. The Hamburg Government has refused to answer questions concerning partly state-owned Hapag-Lloyd, arguing that the supervisory board was responsible for controlling the company. Moreover, the Hamburg Government argued that it had no information about substandard shipbreaking practices for Hapag-Lloyd ships.

“The Hamburg Government stresses in its answer that the German commercial fleet was amongst the youngest and most modern fleets in the world. However, the Hamburg Government is wrong in saying that ship recycling was therefore of no concern for German ship owners. At least 68 German end-of-life vessels were sent to beaches for breaking in 2013, making it the second worst country in Europe after Greece. Usually, the sale is coordinated by a middleman who sometimes guarantees the ship owner that he will further operate the ship. In fact, the ship goes almost directly for breaking in South Asia. It would be na├»ve to believe that ship owners are not aware of what is going on”, explains Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform.

“The City of Hamburg is very well able to influence the social and environmental standards of state or partly state-owned companies and to make sure that they set good examples. The City of Hamburg should immediately meet with Hapag-Lloyd and work on a sustainable solution for ship recycling”, says Norbert Hackbusch, the Left Party’s expert for port policy in the Hamburg Parliament.

“The new EU regulation on ship recycling, which has just entered into force, is toothless in one decisive aspect. By simply flagging out, ship owners can circumvent the regulation. Already today, close to three quarters of all European end-of-life vessels going to South Asia do not fly the flag of an EU Member State but a flag of convenience, such as Tuvalu, Comoros or Saint Kitts and Nevis. This is why we urgently need a financial mechanism, such as an economic incentive for clean and safe recycling. Different models are possible, for example a financial guarantee for ship owners, which will only be reimbursed if their ship is recycled in a clean and safe way. The European Commission is currently working on a list of compliant ship recycling facilities that must apply the highest environmental and social standards”, added Member of the European Parliament Sabine Wils.

Source: recycling portal.