Rupee fall costs ship breaking cos Rs 1,000 crore:

Indian shipbreaking companies have lost almost Rs 800-1000 crore during financial year 2011-12 due to rupee depreciation against US dollar. According to the industry, weak rupee converted profits into losses, mainly after October 2011 period.

"There has been an increase in work in tonnage, but due to rupee depreciation against US dollar, we have lost about Rs 800-1000 crore in financial year 2011-12," said Nitin Kanakia, joint secretary of Ship Recycling Industries Association of India (SRIA).

Adding further, he said, "We have to pay more in rupee terms to buy ships. The rupee-dollar rate was different at the time of deal and at the time of payment the dollar value has changed. This situation has started after October 2011."

According to industry sources, ship breakers paid money in a period of 6 months. This means, for the the deal, that was made during April to September 2011, the payment was made after October 2011. By that time, rupee had started depreciating against US dollar. This led to a loss of about Rs 800-1000 crore for the ship breakers.

Jayant Vanani, secretary of SRIA said, "The industry, overall, was doing very well but due to rupee depreciation against US dollar, the industry had to pay more in rupee terms than the amount mentioned at the time of signing the deal."

According to Vanani, "At the time of the deal, rupee price was around Rs 44-45 per dollar and by the time of payment, the rate had shot up to around Rs 50-51 a dollar. This difference hit most of the ship breakers in Alang."

Indian rupee had fallen to Rs 53.714 against US dollar on December 14, 2011, while it remains at around Rs 50.975 at present. "Still the rupee is not stable and we fear further loss in coming days," said Vanani.

About 365 ships come to Alang shipyard for recycling every year.

Alang ship breaking yard that is located near Bhavnagar in Gujarat, is Asia’s largest ship recycling place. Over 100 ship breaking companies are active in Alang and turnover of the industry is about Rs 10,000 crore per year.

Source: Business Standard. By Vimukt Dave. 2 April 2012

http://www.business-standard.com/india/news/rupee-fall-costs-ship-breaking-cos-rs-1000-crore/469730/

Ship Recycling Expert: Dr. Paul J. Bailey

Main experience:

Consultant to Norad with missions to Bangladesh in 2010 and meetings with IMO in London. Working Paper for Norad on ship recycling in Bangladesh, June 2010

Preparation of a Shipbreaking Scoping Study (with A. Andersen) for the International Labour Office / International Finance Corporation (Better Work programme, 2010)

Conferences in Glasgow (University of Strathclyde, Sept. 2010), London (Sheffield University, Waste of the World Project, Nov. 2010) and London (Divest Project at RINA, 6-7 Oct. 2011) 

Full familiarity with the IMO Hong Kong Convention on ship recycling (HKC 2009)

On-site inspections and meetings with government authorities, employers and workers between 2001 - 2010 in Bangladesh, China, India, Pakistan, Turkey and USA

Attendance at major sessions of IMO (MEPC), ILO and the Basel Convention each of which have "Guidelines" on shipbreaking.

See especially: Safety and health in shipbreaking: Guidelines for Asian countries and Turkey (Geneva, ILO, 2004), www.ilo.org/safework/shipbreaking

Joint ILO/IMO/Basel Convention Working Group (JWG) on Ship Scrapping

International conferences on shipbreaking (2001-2010): Amsterdam, Rotterdam, London, Philadelphia and Glasgow

Meetings with World Bank, EU (DG/ENV), EMSA, MARAD, ICS, IMF, ITF, Norad

Technical cooperation:

• Proven ability to implement projects in Asia, especially in Bangladesh with the Government, shipbreakers, ILO, UNDP (2004-07) and Norad (2010)

Selected Publications:

"Is there a decent way to break up ships?" www.ilo.org/safework/shipbreaking 

"The phase-out of single hull tankers” in: Maritime Review (Winter 2003/04)

“When ships are ready for the breaker’s yard” in: Maritime Review (Winter 2005)

"Safety and health in shipbreaking", in: Royal Institution of Naval Architects (RINA) – International Conference – Recycling of ships and other marine structures (London: 4-5 May 2005). London, RINA, 2005, pp 63-72

"Progress towards a co-ordinated approach to ship scrapping : A report on the first session of the Joint Working Group", in: Lloyd’s List Events, Ship Recycling Conference 2005 ; From ship scrapping to ship recycling…. A willingness to change. Amsterdam, 11 – 12 April 2005. London, Lloyd’s List Events, 2005.

Video: The Shipbreakers (ILO, 2000)

DVD: Shipbreaking: What can be done? (Geneva, ILO, 2006)

Working Paper for Norad on ship recycling in Bangladesh, June 2010

Shipbreaking Scoping Study (with A. Andersen). Feasibility study for Better Work programme the ILO / IFC (2010)

Contact Details:

phone: 00 41 22 755 28 22,

cell: 00 41 79 469 51 27,

Skype: paul.j.bailey 

fax: 00 41 22 755 15 27, or,

email: paul.bailey@bluewin.ch 

Source link: http://www.paul-bailey.ch/352.html 

End of life boats:

A boat's end of life is a topic that is being recurrently discussed in the industry in Europe.

Some countries, like Finland and France, have established operational schemes where both professionals and private owners have access to dedicated disposal services for their old boats.

At the EU level, the European Commission (EC) has conducted a number of studies on ship dismantling, primarily focusing on commercial ships. More recently, however, it took a closer look at the current state-of-play for smaller vessels (below 500GT), such as recreational craft.

Among the various policy options that were reviewed, the study proposed the idea of a recycling scheme, which drew our attention.

While it is customary in other sectors, such as batteries and packaging, to ask the manufacturers to contribute to a common fund to cover the costs of the product’s eventual disposal, translating this into the boating industry could be quite challenging.

According to the commission's study published in January 2012, boatbuilders could be asked to budget a certain amount from each new vessel sold to fund the dismantling costs.

For customers, this would mean an additional expense between €700-2,800 on their new purchase. Alternatively, owners could be required to pay an annual fee on their boats.

But a lot of details are not addressed in the study and the devil is in the detail. Who will fund the treatment of the so-called ‘historic waste’ - those boats built in the 50s, 60s and 70s which are the ones that today need to be disposed of and for which the boatbuilder has often long disappeared.

How do you know the dismantling of a boat was paid for when it is has likely changed owner, flag and even continent several times in its lifetime?

How do you ensure the recycling cost paid today by users and professionals will be the one in 30-40 years from now when the new boats will have to be disposed of?

The option of a recycling fund may sound interesting, but it will definitely need more analysis and attention to the details to be further considered.

To react to this column, email comment@europeanboatingindustry.eu  

Source: Boating Business. 27 March 2011

http://www.boatingbusiness.com/comment-and-analysis101/european-news/end-of-life-boats  

Green operations and green profits: working together towards a sustainable industry

The 7th Annual Ship Recycling Conference

19 - 20 June 2012, Le Meridien Piccadilly, London

Keep pace with the latest developments, trends and outlook for this unique sector with new insights:

Recycling market analysis:

Analysing volumes and prices in 2012 and beyond

 

Regulatory review:  

Mapping the future regulatory landscape

 

Shipowner’s perspective:

Assessing green and cost effective recycling practices 

  

Recycling in practice:  

Monitoring successful implementation of Hong Kong Convention: Progress to date

 

Global recycling facilities forum:

Reviewing outlook for leading ship recycling nations - India, Bangladesh, Pakistan, Turkey and China

 

Spotlight sessions:

Examining ship recycling and the Law: Do’s and don’ts for shipowners

Industry debate:

‘Can safe and environmentally responsible vessel dismantling be achieved on a tidal beach?’

Workshop leaders:

1. Henning Gramann, Director, Green Ship Recycling Services
2. Marc van de Poel, Managing Director, m.a.r.c BV Maritime Asbestos & Recycling Consultant

Past Ship Recycling Conference delegates include:

• Puget Sound Naval Shipyard
• Green Recycling Initiative Ltd
• Japan Ship Centre JETRO
• Ernst Russ GmbH & Co
• MJR Steels
• Nigerian Maritime Administration & Safety Agency
• Horizon
• Southampton Solent University
• Swansea Dry Docks Ltd
• Babcock International Group
• AP Moller Maersk
• SAIPEM SpA
• Commerzbank AG
• Royal Haskoning
• Vertex Maritime
• Metizoft AS
• Class NK
• Höegh LNG
• Leavesley International
• GMS JLT
• Braemar Seascope Ltd
• Intl Nuclear Services
• Thales Australia
• IBM Japan LTD
• Kiel University
• Det Norske Veritas AS
• First Marine International Royal Haskoning
• Associated Shipbroking
• ARGO Systems FZE
• Hewlett Packard GmbH
• National Defence Headquarters
• DNV Germany GmbH
• OSG Ship Management UK Ltd
• City Maritime Consultancy Ltd
• Metizoft AS
• Associated Shipbroking
• Class NK - Nippon Kaiji Kyokai
• Det Norske Veritas
• Bank Mandiri Europe Ltd
• University of Sheffield
• VOSTA LMG BV
• University of Strathclyde
• Nexus Maritime Consultants
• ACM Shipping Ltd
• Esco Marine Inc

Source link: http://www.informaglobalevents.com/event/shiprecycling

The many lives of the Exxon Valdez:

The Exxon Valdez, now named the Oriental Nicety, was purchased last week by an Indian company for salvage. In the past 23 years, it has been renamed four times and has worked in at least three areas of the world since it ran aground on Bligh Reef in Alaska's Prince William Sound in March 1989. The 30,000-ton tanker ruptured eight of its 11 oil-storage tanks and spilled nearly 11 million gallons of crude oil into the ecologically rich area. Exxon Mobil spent $30 million to repair the single-hulled ship and moved it to its Mediterranean routes after the United States banned the ship from Alaskan waters and a law was passed requiring double hulls on oil tankers. It was sold in 2008 to a Chinese company, which converted the ship to haul ore.

Source: Washington Post. 29 March 2012

http://www.washingtonpost.com/business/economy/2012/03/29/gIQAV1BvjS_graphic.html