Ship owners found to be
irresponsible: data on shipbreaking practices in 2015 reveal appalling record
Brussels, 4 February
2016 – Ignoring industry leaders and human rights and environmental
organisations, ship owners continue to profit from dangerous and dirty
shipbreaking practices on South Asian beaches in 2015, according to new data
released today by the NGO Shipbreaking Platform. 768 large ocean-going vessels
were sold to the scrap yards last year. 469 were broken on the beaches of
India, Pakistan and Bangladesh where shipbreaking yards do not provide
fundamental labour rights, ignore international waste trade law, and fail to
respect international environmental protection standards.
One of many accidents
that killed or maimed shipbreaking workers last year was a major gas explosion
at Shitol Enterprise, a shipbreaking yard in Bangladesh. A gas cylinder burst
killed four workers immediately and severely injured another four. The vessel
they were breaking was sold to Shitol Enterprise by the Greek shipping company
Universal Ship Management Corporation, and sailed under the flag of St. Kitts
and Nevis, a typical low-cost, end-of-life flag of convenience. Greek owners by
far outstripped ship owners of other nationalities by having sold the most
end-of-life vessels to dirty and dangerous shipbreaking sites in South Asia,
and for the first time in many years, Bangladesh was the world’s number one
destination for scrap ships.
DUMPERS 2015 – examples
of particularly bad practices
The
worst dumper prize goes to IDAN OFER, son of shipping magnate Sammy Ofer. Idan
Ofer owns QUANTUM PACIFIC GROUP and has a controlling stake in Israel’s largest
publicly traded company, ISRAEL CORPORATION. Combined, these shipping companies
sold the highest number of vessels for substandard breaking operations in 2015:
nine in total, with six of them going to Bangladesh, where conditions are known
to be worst.
GREEK
SHIP OWNERS sold the most ships to South Asian shipbreaking yards in 2015, with
87 ships in total. Since the NGO Shipbreaking Platform started to compile data
on world-wide ship dismantling practices in 2009, Greek shipping companies have
unceasingly topped the list of owners that opt for dirty and dangerous
shipbreaking. Backed by the Greek government, they continue to refuse liability
for the damage done to workers and the environment in South Asia.
Despite
being part of several sustainable shipping initiatives and boosting
environmentally friendly technologies on-board operational ships, well-known
South Korean shipping companies such as HYUNDAI and HANJIN; Taiwanese container
giant EVERGREEN; and Japanese companies including MOL, K-LINE and the TOYOTA
owned TOYOFUJI sold vessels for breaking in Bangladesh in clear contradiction
of their own company values and standards. SOUTH KOREAN SHIP OWNERS sold 27
ships exclusively to South Asia, mostly to Bangladesh. Also JAPANESE SHIP
OWNERS sold exclusively to South Asia, many to Bangladesh.
German
shipping company NORDDEUTSCHE VERMÖGEN sold three vessels to the beaches of
India and Bangladesh – the Northern Glance, the Northern Diversity and the
Northern Vitality. The latter had been arrested in the port of Wilhelmshaven in
Germany in 2012 to prevent an imminent illegal export to India. Despite
awareness of the poor conditions at the South Asian shipbreaking yards
NORDDEUTSCHE VERMÖGEN did not care about their vessels hitting the beaches, one
of which went to Bangladesh – no lesson learnt. See our latest blog-post on the
case here.
Polish
government-owned POLSTEAM sold ships to Bangladesh and Pakistan – and refused
to take responsibility for their own actions following an alert sent by the NGO
Shipbreaking Platform. Worse, the Polish government has likewise not acted.
“Despite a lot of
international attention on the problems of shipbreaking on the beaches of South
Asia, the statistics for 2015 show that the vast majority of ship owners have
not changed their practice for the better. On the contrary, most have opted for
one of the worst shipbreaking destination in the world – Bangladesh, where
children are still illegally exploited to break ships manually on tidal
mudflats”, said Patrizia Heidegger, NGO Shipbreaking Platform Director. [1]
Ship owners sell their
vessels to South Asian yards via cash-buyers, companies that specialise in the
trade of end-of-life tonnage. Cash-buyers promise ship owners not only the
highest price, but also to rid them of their responsibility to properly deal
with the end-of-life management of their ships. [2] Ships contain large amounts
of toxic materials such as oil sludge, asbestos and paints laden with heavy
metals and would yield less profit at end-of-life if sold to a recycling
facility that firmly follows environmental and occupational health and safety
standards.
One sign of hope, is a
group of leading ship owners that have vowed to take responsibility for clean
and safe end-of-life management and demonstrate that alternatives are
available. The European Union is also expected to publish a list of approved
ship recycling facilities worldwide by the end of 2016. This will satisfy the
call from those that demand better practices, including investors such as
ABN-Amro and cargo owners such as H&M, Stora Enso and Phillips – none of whom
wish to be associated with polluting and harmful end-of-life management of old
ships. While, only vessels sailing under an EU flag will be legally obliged to
use an EU approved recycling facility, any ship owner can nevertheless opt for
an EU approved facility for its non-EU flagged ships on a voluntary basis. The
NGO Shipbreaking Platform therefore demands that shipping companies and their
investors only allow their vessels to go to yards listed on the EU list.
Moreover, governments of the world’s leading maritime nations, such as Greece
and Germany, must likewise take steps to ensure national use of the EU list.
Introducing a financial incentive based on the polluter pays principle would go
a far way in pushing irresponsible ship owners towards sustainable ship
recycling. [3]
CONTACT
General press inquiries:
Nicola MULINARIS
Communications and Legal
Advisor
Tel.: +32 (0)2 6094 418
nicola@shipbreakingplatform.org
For statements and
interviews:
Patrizia HEIDEGGER
Executive Director
+32 2 609 9419
NOTES
[1] Last year, in
Bangladesh alone, 16 workers lost their lives in explosions, by falling from
heights or by being crushed by falling steel plates. At least 22 workers were
seriously injured, and some of them are still awaiting proper medical
treatment. Many more workers became ill from inhaling asbestos fibres and toxic
fumes such as those released when cutting the ships with blow torches.
According to the ILO and leading trade unions, shipbreaking on the beaches of
South Asia is one of the most dangerous jobs in the world. Pakistani
shipbreaking yards in Gadani also lack proper infrastructure and facilities to
protect workers or to properly manage the hazardous wastes found on-board
ships. Despite reported improvements in four Indian yards that have received a
Statement of Compliance with the requirements of the International Maritime
Organisation’s Hong Kong Convention from Japanese classification society
ClassNK, concerns persist related to the continued operations in unprotected
tidal waters; the lack of proper accommodation and medical facilities for
workers; and the lack of proper downstream waste management. Six workers died
in accidents at shipbreaking yards in India last year, however, the authorities
do not disclose the accident record to the public. Yards in other parts of the
world, are not necessarily all operating in line with standards that ensure
sustainable ship recycling. While many ship recyclers will seek to have their
facility listed on the EU list, only those that comply with the requirements
and do not use unprotected beaches and coastal areas causing pollution of the
marine environment, will be approved.
[2] Cash-buyers, such as
GMS and Wirana, are responsible for almost all sales to substandard yards in
South Asia. For more on the role of cash-buyers and especially their use of
Flags of Convenience at end-of-life, see our report: What a difference a flag makes.
Why ship owners’ responsibility to ensure sustainable ship recycling needs to
go beyond flag state jurisdiction (2015).
[3] Possibilities for
introducing a financial incentive for safe and clean ship recycling is being
discussed at the European level. The idea is that all ships entering European
waters will need to hold a ‘ship recycling licence’. Money set aside would only
be paid back to the last ship owner upon proof that the ship has been recycled
in a safe and environmentally friendly way.
Source:
NGO Shipbreaking Platform.
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