02 August 2016

Shipowners have the power to revolutionise ship recycling by going green:

© Joe Myerscough _59078389

Ship scrapping and recycling is a natural and inevitable part of a vessel’s lifecycle, and many people rely on this vital market, both directly and indirectly.

While the sector has historically a negative reputation, the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) is making a significant impact on improving health, safety and sustainability standards at recycling yards around the world.

The HKC is concerned with the systematic prevention and, where practicable, elimination of safety and environmental risks through mandatory requirements for preparatory work and requirements for yard facilities and operations.

However, until the HKC enters into force, sustainable ship recycling is driven by the market dynamics between shipowners and yards.

The impact of cost and return cannot be underestimated and shipowners have the power to incentivise a change in ship recycling by choosing sustainable options.

Currently a shipowner who chooses to follow the highest health, safety and environmental standards must send his ship to a yard that holds a HKC Statement of Compliance from a member of the IACS Classification Society, and ensure contractually with the cash buyer that the ship will be recycled in accordance with the technical standards of the HKC.

They should also consider supervision and/or reporting, to ensure and demonstrate that the recycling has taken place in the appropriate way.

A number of shipowners are choosing this route, and demand for responsible ship recycling now exceeds supply in South-east Asia.

Five yards in Alang have achieved HKC compliance certification, and 20 more facilities are going through the process. As competing yards see growth for services based on good health, safety and environmental practices, it creates a commercial environment where HKC compliance, ISO and OHSAS certification have become a competitive advantage.

GMS has worked independently to develop a “Green Team” to support yards in increasing sustainability, deliver environmental transparency and reporting to owners and support yards in working towards ISO and OHSAS accreditation. It is our aim to turn sustainable ship recycling into the norm, rather than the exception.

But to help achieve this across the world, we need to see continued demand for sustainable recycling maintained and one clear global standard to aim for.

The importance of the arrival of the HKC as a global, enforceable standard in ship recycling cannot be underestimated. Neither can it be undermined by other regulations such as the European Union’s Ship Recycling Regulation, which could serve to stifle the progress being made in South Asia.

The EU legislation shares similarities with the HKC, but crucially, the EC interprets some of its provisions as a ban on beaching, even at yards compliant with the rigorous safety and environmental standards of the HKC.

More than two-thirds of the world’s ship recycling is conducted in South-east Asia using the beaching method, and improving these yards is central to the HKC. Interpretation of the EU regulation as a ban on beaching will just create an unfair and damaging geographic gap between South-east Asia and non-beach ship recycling yards elsewhere with no way to bridge the gap between the two.

It will create a less sustainable market, driving poor conditions on beaches and higher standards elsewhere.

The reality is that it is all a matter of management. It is just as possible to have clean, safe and sustainable recycling on a beach as it is to create an unsafe and polluting environment by recycling alongside a pier.

Recycling plays a vital role in the lifecycle of a ship, and is fundamental to the progression of the industry. Ensuring that this process is in accordance with the standards of the rest of the industry, no matter where in the world it takes place, should be seen as a key priority.

The industry must work together to incentivise green growth, secure ratifications of the HKC and ensure no region is left behind.

Source: the load star. 22 July 2016

IRClass leads in EU compliance certification of ship recycling yards in India:

IRClass is among the first organisations in the world to certify ship recycling yards according to EU standards as an ‘Independent Verifier’.

IRClass Systems and Solutions (ISSPL), an entity promoted by Indian Register of Shipping, has certified four leading ship recycling yards in Alang as an ‘Independent Verifier’ in accordance with the requirements of European Union Ship Recycling Regulation (EUSRR) 1257/2013.

The four yards which have met the standards set by the EU and the Hong Kong Convention are: Priya Blue Industries; Shree Ram Vessel Scrap; R L Kalathia Ship Breaking; and Leela Ship Recycling.

These recycling yards are India’s first recycling yards to be certified based on EU standards and have submitted their applications for inclusion in the EU recognised yards list. The deadline for application submission was 30th June 2016 and the yard list is expected to be released by December.

India is home to one of the largest ship breaking facilities in the world with over 150 yards along its coast. On an average, close to 6.2 Million GT is scrapped in India every year, which accounts for 33% of the total scrapped tonnage in the world. Recently, however, health and environmental concerns have led to adoption of new policy regimes at international level.

The policy on EUSRR mandates vessels under the EU flag to be scrapped in recognised ship breaking yards. In the past four years, approximately 310 EU flagged vessels were scrapped, out of which 107 were scrapped in India, amounting close to 4.3 Million tons in deadweight. Recognition from EU will allow these Indian yards to become a preferred option over others in the area in coming years.

The ship breaking industry, being a highly price sensitive market, having to adopt health and environmental regulations may imply significant expenses in a competitive business environment. It will be important for Indian yards to select the right partners to work with so as to achieve compliance as per the Hong Kong Convention as well as EUSRR. While IRClass has emerged as a partner of choice for these yards, there are several other yards which have also approached IRClass for the certification.

“IRClass is happy to have assisted the recycling yards in achieving this goal. We shall continue to encourage other yards in the region and globally, to adopt environment friendly recycling standards,” said Arun Sharma (pictured), Chairman of ISSPL.

These organisations have taken the initiative to adopt environmentally sound ship recycling procedures while ensuring equal importance towards workmen safety, health and welfare.

EU ship recycling regulation entered into force at the end of 2013, and its requirements phased-in between 31st December 2015 and 31st December 2020.

Source: Hellenic shipping news. 23 July 2016

Four Alang Yards Apply for E.U. List:

Four ship recycling yards in Alang, India, have been certified based on the E.U. Ship Recycling Regulation and have submitted their applications for inclusion in the E.U. recognized yards list.

IRClass Systems and Solutions, an entity promoted by Indian Register of Shipping, has certified: Priya Blue Industries, Shree Ram Vessel Scrap, R.L. Kalathia Ship Breaking and Leela Ship Recycling.

These yards are India’s first recycling yards to be certified based on E.U. standards.

India is home to one of the largest shipbreaking facilities in the world with over 150 yards along its coast. On an average, close to 6.2 million GT is scrapped in India every year, which accounts for 33 percent of the total scrapped tonnage in the world.

The policy on E.U. Ship Recycling Regulation mandates vessels under the E.U. flag to be scrapped in recognized ship breaking yards. In the past four years, approximately 310 E.U. flagged vessels were scrapped, out of which 107 were scrapped in India, amounting close to 4.3 million tons in deadweight.

The potential recognition of the yards by the E.U. is anticipated to make them the preferred option for E.U. shipowners despite the potential increase in costs required to meet higher health and safety and environmental standards.

The E.U. Ship Recycling Regulation has generated confusion, because it initially mentioned that beaching was not an acceptable method. It was later that they clarified that each facility will be verified individually and will not be disqualified purely on basis of method of recycling followed or its geographical locations.

The potential E.U. ban on beaching could have a most significant impact, said Dr Nikos Mikelis, non-executive director, of cash buyer GMS. “Unfortunately, it is not the positive impact that some commentators would lead us to believe. Two thirds or more of the world’s ship recycling is still conducted on beaches in South East Asia, and improving the working conditions and environmental impact of these yards is central to the Hong Kong Convention.

“By preventing the progressive and more CSR-savvy European market from using the Convention compliant yards in this region, which is what a ban on beaching would achieve, the E.U. regulation would torpedo the progress being made to improve the safety and sustainability standards of recycling,” says Mikelis.

he E.U. Ship Recycling Regulation entered into force at the end of 2013, and its requirements are phased-in between December 31, 2015, and December 31, 2020. The list of recognized yards is expected to be released in December this year.

Source: maritime-executive. 22 July 2016
http://www.maritime-executive.com/article/four-alang-yards-apply-for-eu-list

Asian ship owners reject paying for EU recycling licences

Global: The Asian Shipowners Association (ASA) has rejected proposals to introduce payments for EU ship recycling licences. The European Commission is considering introducing a levy on all ships entering EU ports in the hope of improving related working and environmental conditions in developing countries.

The proposed levy would be returned at the end-of-life stage when a ship has been recycled at a yard approved by the European Commission. But the ASA argues that this concept is ‘neither realistic nor practical’ given the periods of time potentially involved and the fact that a vessel’s ownership could change.

According to the ASA, it should be a priority for the European Commission to encourage EU member states to ratify the Hong Kong Convention. It should also recognise that Asian recycling yards are committed to gaining certification in compliance with International Maritime Organization (IMO) standards. The ASA adds that ‘the Convention will not enter into force unless some of ship recycling states in Asia ratify the Convention’.

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted by the IMO at a conference in Hong Kong seven years ago. Since then, it has been ratified by only a couple of the 15 ship-owning and ship-scrapping nations that represent 40% of the world’s gross tonnage.

Source: recycling international. 25 July 2016

Shipbreaking worker succumbs to injuries in Chittagong:

The ill-fated victim was identified as Salam, 50, hailed from Pirojpur district

A worker of a ship-breaking yard has succumbed to his injuries at Chittagong Medical College Hospital (CMCH) on Monday.

The ill-fated victim was identified as Salam, 50, hailed from Pirojpur district.

“Salam succumbed to his injuries on Monday while undergoing treatment at the hospital,” said Nayek Abdul Hamid of the CMCH police outpost.

Sub-Inspector Saifuzzaman of Sitakunda police station told the Dhaka Tribune that Salam sustained critical injuries when an iron plate fell upon him at his workplace at Master & Brothers at Sitakunda upazila in Chittagong on Sunday noon.

Later, he was brought to Chittagong Medical College Hospital.

An Unidentified Death (UD) was filed with Sitakunda police station in this connection.

Source: Dhaka tribune. 1 August 2016