MEPC 63 OUTCOME:

On the sixty-third session of the Marine Environment Protection Committee (MEPC 63) that took place from 27 February 2012 to 2 March 2012 the following have been discussed/decided.

MARPOL Annexes I, II, IV, V, and VI amendments have been adopted, aiming to enable Small Islands Developing States to comply with requirements regarding reception facilities for ship waste through regional arrangements. The amendments are expected to enter into force on 1 August 2013.

The NOx Technical Code has been amended to permit separate certification of the diesel engine and the Selective Catalytic Reduction (SCR) System (technology able to comply with Tier III requirements). The amendments are expected to enter into force on 1 August 2013.

Ballast Water Management Convention: three basic approvals and six final approvals were granted to Ballast Water Management Systems using active substances. Currently, the number of systems given final approval by the IMO has increase to twenty-six. Regarding the Ballast Water Management Convention it should be noted that currently 35 countries, representing 27.95% of the world’s merchant shipping tonnage have ratified the Convention. The Ballast Water Management Convention will enter into force 12 months after ratification by 30 states, representing thirty-five percent (35%) of the aggregate global merchant shipping tonnage.

IACS and the International Chamber of Shipping (ICS), submitted a document raising questions about the feasibility of some of the Ballast Water Management Convention requirements, countermeasures have also been discussed. A number of countries have supported the establishment of a framework which would enable the issuance of certificates even before the Convention enters into force.

It was confirmed that Ballast Management Plans approved in accordance with resolutions A.868(20) are also valid.

Regarding e ballast water management technology Japan provided documents on the current installation status of ballast water management systems and proposed that an appropriate review should be conducted based on the understanding that the ballast water management systems are not smoothly installed. As a result, it was agreed to put forward the collection and analysis of the data collected from Member States based on the Japanese proposal.

Regarding Ship Recycling Convention details of guidelines for ship recycling facilities have been examined. Four draft guidelines have been discussed:

1.   “Guidelines for safe and environmentally sound ship recycling”. The guidelines have been adopted

2.   “Guidelines for the authorization of ship recycling facilities”. The guidelines have been adopted

3.   “Guidelines for survey and certification”: Ongoing. To be discussed by the correspondence group and submitted to MEPC 64

4.   “Guidelines for PSC”: Ongoing. To be discussed by the correspondence group and submitted to MEPC 64

IMO is working on Market Based Measures (MBM), such as the introduction of special bunker levies and emissions trading schemes to supplement the technical and operational measures for achieving the GHG emission reductions required by the amended MARPOL Annex VI. In order to narrow down the number of Market Based Measures proposed by member states, the Chairman of the MEPC suggested to carry out assessments of the impact of such measures on developing countries with respect to the implementation of these measures.

Source: officer of the watch. 26 July 2012

http://officerofthewatch.com/2012/07/26/mepc-63-outcome/#more-1281

Concern over ship dismantling practices prompts capacity building initiatives:

The benefits of ship dismantling, or recycling, derive from the materials and equipment comprising end-of-life ships, whose scrap steel, mechanical parts and other valuable equipment are recycled or refurbished for use in other industries. End-of-life ships also comprise of an array of hazardous materials – such as asbestos, PCB and waste oils – which can have serious implications for the environment and human health if not managed properly.

Concern has been expressed at the international level over the environmental, health and safety standards in this industry, particularly in those countries employing the beaching method of ship recycling.  Ship recycling commonly takes place in developing countries which tend to have a competitive advantage as they provide a pool of low cost labour, may have weaker environmental protection / worker health and safety regulations, and have national demand for the outputs of the activity (predominantly scrap steel). Poor enforcement of regulations relating to this activity means that problems with local environmental pollution are commonplace and incidents of worker injury and fatality are high. These concerns are compounded given the upward trend in recycling activity experienced in the past few years.

The Basel Convention has been involved in this issue for over a decade. This activity is of particular concern in the Basel sense as end-of-life ships comprise of an array of hazardous materials – such as asbestos, PCB and waste oils – which can have serious implications for the environment and human health if not managed properly. As ships destined for dismantling will rarely fly the flag of the state in which they are to be recycled, this activity can represent a transboundary movement of hazardous waste. However, given the global nature of the shipping industry and the practices associated with sending end-of-life ships for recycling, there has been difficulty in applying the provisions of the Basel Convention to ship recycling. Parties have recognised that Basel controls may often be circumvented for ships going for recycling. Thus at the seventh meeting of the Conference of the Parties in 2004, while Basel Parties recognised that ship may become waste as defined in Article 2 of the Basel Convention, they also invited the International Maritime Organization (IMO) to continue work aimed at the establishment of mandatory requirements to ensure the environmentally sound management of ship dismantling (decision VII/26 on Environmentally sound management of ship dismantling).

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted at a diplomatic conference in Hong Kong, China, in May 2009. The Convention elaborates in its articles and regulations a control system for ship recycling, which includes obligations for flag States and shipowners and recycling States and recycling facilities. In May 2010, the seventh session of the Open-ended Working Group welcomed the adoption of the Hong Kong Convention (decision OEWG-VII/12 on Environmentally sound dismantling of ships). Subsequently, in October 2011, the tenth meeting of the Conference of the Parties encouraged parties to ratify the Convention to enable its early entry into force. COP 10 also acknowledged that the Basel Convention should continue to assist countries to apply the Basel Convention as it relates to ships (decision BC-10/17 on Environmentally sound dismantling of ships).

Relevant decisions and submissions

For a complete list of COP and OEWG decisions related to ship dismantling, including information received from Parties and others pursuant to the abovementioned decisions, please click here.

Waste from Ships

For information on ship wastes, specifically the relationship between the Basel Convention and the International Convention for the Prevention of Pollution from Ships (the “MARPOL” Convention) please visit the Waste from ships section of the website.

Source: Basel Convention

http://www.basel.int/DNNAdmin/AllNews/tabid/2290/ctl/ArticleView/mid/7518/articleId/654/Concern-over-ship-dismantling-practices-prompts-capacity-building-initiatives.aspx
http://www.basel.int/Implementation/TechnicalAssistance/ShipDismantling/Overview/tabid/2762/Default.aspx

Shipbreaking: Where It Is Done?

Ship Recycling is carried out primarily in India, China, Bangladesh, and Pakistan with Turkey performing just a handful of demolitions each year.

INDIA:

Alang is located on the coast of Bhavnagar district, in the Gulf of Cambay, 56 km (35 Miles) south of Bhavnagar City in the state of Gujarat, India. The Gulf of Cambay is known for its high tidal range, which is around 10 meters. The vast expanse of inter-tidal zone gets exposed during ebb tide, which makes it convenient for ship recycling activities, whereas the high tide makes it possible to accommodate big ships. Alang is the leading ship-recycling yard in the world catering to nearly 90% of India's ship recycling activity. The Ship recycling sector in India directly or indirectly affects more than 300,000 people.  

Green Recycling 

• Continues to lead the Ship Recycling industry in both numbers and green capacity
• Greater focus on green ship recycling. About 70 yards (37%) are fully ISO Certified
• Most ship recycling capacity/yards in the world 

Key Elements 

• Market Maker/Leader
• Experienced Recyclers
• Top Price Levels for Specialized Vessels
• Premium for Bunkers, Non-Ferrous Items, Certain Machinery Items Such as Main Engine, Generators, etc.
• Wide Variety of Buyers. Buyers range from ULCC buyers to the smallest fishing trawlers. Everything goes!

Best Market For

Specialized High Value Vessels such as:

• ROROS
• Reefers
• Passenger Ships (leading market)
• Dry Vessels

BANGLADESH:

The ship recycling yards near the port of Chittagong, Bangladesh's second-largest city, are the nation's main source of steel, employing more than 100,000 people. There are approximately 350 re-rolling mills located in greater Chittagong and Dhaka districts, which annually produces around 1.3 million tons of finished rods for the construction industry. This industry completely depends on the ship-recycling yards for raw materials. About 100,000 workers are involved in the ship recycling industry directly and indirectly. Currently these activities are conducted by some 20 yards in an area of approximately eight square kilometers in Chittagong.

Key Elements

• (Was) Leading Recycler of Tankers
• Beginning to focus on green ship recycling issues
• Several yards now ISO Certified
• Norwegian grant and IMO pushing for training and improvements
• Increasing number of regulations
• On and off market
• Financial (USD) crisis
• Loans to recyclers
• International credits
• Difficult market to deliver ships promptly
• Embroiled in a legal battle between the Bangladesh's Environmental Lawyers (BELA) and local ship recyclers (BSBA)
• Steel from ships critical for domestic growth and consumption

Best Market For

• Large LDT tonnage

PAKISTAN:

Pakistan's ship recycling industry operates on the Gadani beach in the Balochistan's coastal area. The beach is about 50 km northwest of Karachi. Today about 200,000 people earn their living from this industry, either directly or indirectly.

Key Elements

• 2010 was the best year for the recycling industry
• Increase in Capacity
• Push for improvements.. “partnering” with Turkey
• Prompt Delivery Due to No Beaching Tides
• Low D/A
• Gas Free for Men Entry Only Required

Best Market For

• Tankers
• Small LDT Under Tow Vessels

Green Recycling

• Only one yard currently has ISO Certification.

CHINA:

Ship recycling in China is performed in two locations—North (Shanghai area) and South (Xinhui area). The yards use dock or quay-based facilities. This is the only country where ships are not beached. There are approximately 90 breaking yards dotting the Pearl and Yangtze rivers.

In 2003, China broke the USD 300/LT LDT price barrier for the first time in demo history! 

China has been a choice for owners wanting green recycling, but with India catching up fast, competition is getting tougher as more and more owners are opening up to India for their green recycling needs.

• 2010 has seen a significant decline in volume of vessels recycled
• Leading destination for owners wanting green recycling, CAPES and other vessels discharging in China

Key Elements

• Advanced ship recycling market
• Large and emerging Capacity
• Volatility

Disadvantages

• High D/A Costs
• Lower than Indian Sub-Continent prices
• Not a keen buyer of Specialized Ships

Best Market For…

• Local Vessels

Green Recycling

• Fifteen yards have ISO certifications.

TURKEY:

Turkey is the ONLY ship recycling nation that has ratified the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.

• A sizeable rise in volume of vessels in 2010
• Turkey is a logical choice for Naval, State and EU flag vessels in the EU region that by law require recycling only in the OECD region

Key Elements

• Member of OECD
• Small LDT and under tow vessels
• Key market for Green ship recycling

Disadvantages

• Low Prices

Best Market For

• Small and/or naval vessels located in Europe/Med

Source: GMS.

http://www.gmsinc.net/gms/whereitsdone.php

Noncompliance of environ-friendly recycling rules threaten shipbreaking industry:

Noncompliance of environment-friendly recycling rules and dearth of skilled manpower may pose a threat to the existence of the country's emerging shipbreaking industry in the long-run, experts say.

"The policy formulated by the government focusing environment friendly recycling remained a far cry to implement," Dr Shahriar Iqbal, professor of the Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology (BUET), told the FE.

Dr Iqbal also said another setback in the potential foreign currency earning sector is unskilled workforce which may discourage ship owners to recycle their ships in Bangladesh.

He said China, the emerging largest world economy, is going to expand green ship recycling facilities considering its potential which certainly will hamper the growing industry here if the government fails to support local initiatives.

Bangladeshi ship recycling industry represents more than a quarter of the world's recycling capacity and the country is considered very important for the world's maritime transport.

"Now we are hopeful about the growth of the industry as the government has taken some effective measures including formulation of the green recycling rules and regulations," said Capt Salahuddin Ahmed, Technical Advisor, Bangladesh Ship Breakers' Association.

Regrettably, existing workforce needs more training on their respective practical field for long term betterment of the industry, Mr Ahmed added.

Mr Iqbal said that the government should upgrade this industry into safe and environment-friendly and efficient ship recycling industry trough employing a skilled workforce to rescue the sector from rivals' threats.

He suggested that the government should employ more naval architects and marine engineers in the sector especially who have education and research background earned from reputed institutions like BUET to improve overall situation of existing shipbreaking practice.

Only an efficient work force can attract global attention to make the nation a leading country in the emerging forex earning industry through upgrading itself as a safe and environment-friendly and economically viable recycling industry, he added.

He said that the proposed Ship Building and Ship Recycling Board (SBSRB) needs to carry out detailed analysis on improvement of the beaching methods with a mandate to evolve recycling methods targeting zero waste and zero accident and a very efficient management.

The industry will help enhance economic growth and support development for local and regional community through providing large scale employment, he said, adding, more than 350 re-rolling mills have been using ship scraps as their raw materials while another 100 shipyards directly or indirectly benefit from the scraps.

The industry is currently supplying more than 60% of the raw materials for local steel industry. Besides, local shipbuilding industry also largely depends on this as raw materials mostly are being used from scrap steel, the ship expert informed.

Quoting report findings, the expert said that around 50,000 people are directly involved with the shipbreaking industry while another 0.1 million people are involved indirectly, and the figure is increasing.

He expressed that there also important economic benefit to the economies of our country through the recycling of steel, wood, machinery and equipment that would otherwise have to be imported.

A good number of local industries including heavy and light engineering already been developed depending on shipbreaking industry, he said.

Quoting a report that in 2010 the world fleet of ships over 500 GT was around 56,000 ships while the fleet over 3,000 GT was around 32000 ships, the naval expert informed.

He said that a realistic average life-span of a ship presently is 30 years and thus on an average around 1800 ships of over 500 GT or 1000 ships over 3000 GT need to be recycled each year.

Bangladesh, India and Pakistan provide some 65% of recycling capacity through tidal beaching where China provides 31% alone and Turkey only 2%, he added.

Source: The Financial Express. By Khairul Islam. 21 January 2012

http://www.thefinancialexpress-bd.com/more.php?news_id=95270&date=2012-01-21

Bangladesh Shipbreaking Policy by end-January: Minister tells National Parliament

Industries Minister Dilip Barua yesterday in parliament set the end of January as a fresh deadline for finalising the "environment-friendly" shipbreaking policy.

Replying to lawmakers' queries, he said it is expected that the shipbreaking policy will be finalised by January next year, aiming to help the sector grow without causing any harm to the environment.

Earlier on September 17, the minister said the government would finalise the shipbreaking and recycling policy by October, this year.

The Ministry of Industries has already posted the draft policy on its website inviting public opinion on it, said Dilip Barua yesterday.

In the scripted reply, the minister said the shipbreaking industry has been brought under the industries ministry in the interest of industrialisation.

The shipbreaking industry, developing on the seashore in Chittagong, is the main source of the raw materials used by some 500 private sector re-rolling mills and nearly 50 steel mills that produce mild steel rods, bars, and angles at affordable prices.

The growing demand for steel products in the country has encouraged a good number of people to engage in the industry that proved to be very rewarding in terms of profit and employment generation.

But safety of shipbreaking workers is often neglected. Besides, concerns surfaced over the environmental issues centering the industry.

Source: The Daily Star. 21 November 2011

http://www.thedailystar.net/newDesign/news-details.php?nid=211049

Environment-friendly ship recycling project undertaken in Bangladesh:

NORAD, UNIDO to finance $8.0 million

A sustainable and environment-friendly ship recycling project has been undertaken by the Ministry of Industries (MoI) to help develop country's shipbreaking industry and capacity building for sound management of hazardous materials.

The ship recycling project has been taken up with acceptable health, safety and environmental standards according to the national and international norms.

The project with the funds of the Norwegian Agency for Development Co-operation (NORAD) and United Nations Industrial Development Organisation (UNIDO) will finance $ 8.0 million to help run the safe and environment- friendly ship recycling project, shipbreakers said.

A Memorandum of Understanding (MoU) was signed on November 13 between the International Maritime Organisation (IMO), Norwegian Agency for Development Co-operation (NORAD) and MoI on a safe shipbreaking industry in Bangladesh.

We will provide a fund worth $6.0 million to help Bangladesh shipbreaking industry in making it a sustainable and environment-friendly recycling sector, Director of NORAD BH Eriksen said.

He announced the fund while leading a 9-member delegation including members from IMO, UNIDO and high officials from Norwegian foreign affairs and environment ministries that visited 2 shipyards, training centre and hospital in Chittagong on November 15.

The project is planned to be implemented in 2 phases. All activities in the project shall contribute to the objective for a sustainable ship recycling in Bangladesh with acceptable health, safety and environmental standards according to national and international norms, Head of Marine Pollution Prevention and Ship Recycling Section of IMO Nikos Mikelis told the FE during the visits to shipyards.

1^st phase of the project will include:

Ø    Plan for the management of hazardous materials,

Ø    Development of training for health, safety and environmental protection and

Ø    Preparation of the project document for Phase II

When asked why they chose Bangladesh, Mr Mikelis said Bangladesh has a huge potentiality and it deserves support as shipyards in Bangladesh are gradually improving safety, environmental protection and social welfare.

A key requirement of both the Hong Kong Convention and the Basel Convention is the environmentally sound management of hazardous materials, he said adding under the Hong Kong Convention, recycling facilities must ensure that hazardous materials are removed from a ship in a safe and environmentally sound manner and that all hazardous materials detailed in the ship's Inventory of Hazardous Materials are identified, labeled, and packaged in a safe and environmentally sound manner.

"The project will help Bangladesh develop environment-friendly hazardous waste management system," he added.

Shipbreakers said Bangladesh is the signatories to Basel Convention and it took part in one session of the convention but yet to ratify it.

Hong Kong Convention is a comprehensive guideline for complete shipbreaking activities and procedures are under way for being the signatories to this convention, they explained.

Technical Adviser of Bangladesh Ship Breakers Association (BSBA) Captain Salahuddin said this project will help the sector in capacity building and upholding the international image.

"But the success of the project is uncertain until it is designed and started," he said adding it will take 4 months to start the project.

Industries Minister Dilip Barua told the FE that transparency will be ensured for the proper utilisation of the fund.

The project will be designed for human resource development, hazardous waste management and meeting the international standard especially building an environment-friendly ship recycling industry.

There are now 126 shipbreaking yards based on the coastline of Sitakundu near the port city of Chittagong. The shipbreaking industry is the country's main source of iron and steel. Private re-rolling mills and steel mills melt the scraps dismantled from ships to produce mild steel rods, bars and angles.

Source: The Financial Express. By Monira Munni. 17 November 2011

http://www.thefinancialexpress-bd.com/more.php?news_id=156208&date=2011-11-17