28 November 2013

NGO Shipbreaking: Studies document asbestos dangers in shipbreaking yards

Dhaka, Brussels -- During last week’s Asia Ban Asbestos Network meeting, the Bangladesh Occupational Safety, Health and Environment Foundation (OSHE) organised a panel discussion on the dangers of asbestos in the shipbreaking industry in Asia. The experts present at the meeting agreed that exposure to asbestos is a major threat for all industries involved in shipping, from shipbuilding, to ship repair, to shipbreaking. Participants from South Korea and Hong Kong, which are major shipbuilding and ship repair centres, said that they can now witness the devastating results of shipyard workers’ exposure to asbestos years ago. In both places, they can see a steadily raising number of victims of different ARD, such as asbestosis and mesothelioma.

India, Bangladesh and Pakistan are the three major shipbreaking destinations: 70 percent of all end-of-life vessels were broken there in 2012. The Chinese ship recycling industry also has serious issues with asbestos handling and disposal. In the shipbreaking yards in South Asia, neither the management nor the workers are aware of the dangers of asbestos. A recent study by the NGO Shipbreaking Platform on shipbreaking in Pakistan has shown that asbestos is removed by workers without them being protected. Asbestos is then dumped in unmarked sites behind the yards. A recent research by OSHE in the shipbreaking yards in Bangladesh argues that nearly none of the supervisors in the yards is aware of the dangers of asbestos. Therefore, no protective measures are taken there either.

Moreover, there is hardly any medical data available about ARD caused by shipbreaking, as the workforce in the yards mainly consists of undocumented migrant workers and the yard owners are not legally required to ensure regular health checks. Pilot studies both in India and Bangladesh have shown asbestosis cases in the shipbreaking yards. However, the circumstances – a migrant workforce, no documentation of occupational diseases and yards that are not easily accessible to civil society and researchers – make it very difficult to reveal the whole picture.

"Asbestos-related diseases are hidden. They are not as dramatic as major industrial accidents and seldom make headlines", argued Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. "Death by occupational diseases is slow, invisible and painful. We want the governments in Asia to understand how harmful it is to import asbestos into their countries and what huge human costs the ARD will cause in the near future."

The NGO Shipbreaking Platform and its member organisation demand that all end-of-life vessels need to carry an Inventory of Hazardous Materials (IHM) in which asbestos, a common material found in the structure of ships, is identified and quantified. The ship owners need to provide an IHM as a first basic step towards clean and safe recycling. Moreover, shipbreaking countries need to ensure safe asbestos removal and handling, storage and disposal if they import end-of-life vessels for breaking. Bangladeshi courts have ruled that all ships imported into the country need to be toxic free. Also, under European law it is forbidden to export asbestos from the EU Member States.

Source: NGO Shipbreaking Platform.

27 November 2013

Platform News – Civil society organisations in Asia call for a global ban on asbestos, highlight dangers in shipbreaking

Bangladesh Ban Asbestos Network officially launched with OSHE as secretariat


Dhaka/Brussels, 27.11.2013 – During the annual Asia Ban Asbestos Network meeting, Bangladeshi civil society organisations launched the Bangladesh Ban Asbestos Network (B-BAN) under the auspices of OSHE, the Bangladesh Occupational Safety, Health and Environment Foundation, a member organisation of the NGO Shipbreaking Platform. Anti-asbestos organisations, victims groups, researchers, and medical experts from all over Asia rallied in Dhaka, Bangladesh to demand a complete ban on the mining and the use of asbestos, which is still causing asbestos-related diseases (known as ARD) amongst workers and communities in Asia.

Although asbestos has been prohibited in many industrialised countries, including the EU, there has not been a global ban on the killing fiber. As a result, the asbestos industry has now turned its focus on the developing countries, where it tries to convince governments that asbestos is safe, using the same baseless arguments it already put forward in European countries in the 1960s to promote its dangerous products.

To change this, Asian activists have been meeting for years inside the Asia Ban Asbestos Network (A-BAN), which is the umbrella organisation that created the Bangladesh Ban Asbestos Network last week. The B-BAN secretariat will be located in OSHE’s office. OSHE was founded in 2003 and focuses on workplace-related development issues.

During last week’s meeting, OSHE organised a panel discussion on the dangers of asbestos in the shipbreaking industry in Asia. India, Bangladesh and Pakistan are the three major shipbreaking destinations: 70% of all end-of-life vessels were broken there in 2012. The Chinese ship recycling industry also has serious issues with asbestos handling and disposal. The experts present at the meeting agreed that exposure to asbestos is a major threat for all industries involved in shipping, from shipbuilding, to ship repair, to shipbreaking. Participants from South Korea and Hong Kong, which are major shipbuilding and ship repair centres, said that they can now witness the devastating results of shipyard workers’ exposure to asbestos years ago. In both places, they can see a steadily raising number of victims of different ARD, such as asbestosis and mesothelioma.

In the shipbreaking yards in South Asia, neither the management nor the workers are aware of the dangers of asbestos. A recent study by the NGO Shipbreaking Platform on shipbreaking in Pakistan has shown that asbestos is removed by workers without them being protected. Asbestos is then dumped in unmarked sites behind the yards. A recent research by OSHE in the shipbreaking yards in Bangladesh argues that nearly none of the supervisors in the yards is aware of the dangers of asbestos. Therefore, no protective measures are taken there either.

Moreover, there is hardly any medical data available about ARD caused by shipbreaking, as the workforce in the yards mainly consists of undocumented migrant workers and the yard owners are not legally required to ensure regular health checks. Pilot studies both in India and Bangladesh have shown asbestosis cases in the shipbreaking yards. However, the circumstances – a migrant workforce, no documentation of occupational diseases and yards that are not easily accessible to civil society and researchers – make it very difficult to reveal the whole picture.

“Asbestos-related diseases are hidden. They are not as dramatic as major industrial accidents and seldom make headlines”, argued Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Death by occupational diseases is slow, invisible and painful. We want the governments in Asia to understand how harmful it is to import asbestos into their countries and what huge human costs the ARD will cause in the near future.”

The NGO Shipbreaking Platform and its member organisation demand that all end-of-life vessels need to carry an Inventory of Hazardous Materials (IHM) in which asbestos, a common material found in the structure of ships, is identified and quantified. The ship owners need to provide an IHM as a first basic step towards clean and safe recycling. Moreover, shipbreaking countries need to ensure safe asbestos removal and handling, storage and disposal if they import end-of-life vessels for breaking. Bangladeshi courts have ruled that all ships imported into the country need to be toxic free. Also, under European law it is forbidden to export asbestos from the EU Member States.

Source: shipbreaking platform.

26 November 2013

GMS weekly report on China ship breaking industry for WEEK 47 of 2013:

As Indian sub-continent markets started to take off again, China was left trailing in the wake of their competitors, unable to compete on numbers to secure any type of tonnage.

Indeed, there is some doubt as to whether Chinese buyers, on present form, could encourage vessels from Indonesian or Vietnamese waters to make the voyage over to China rather than scrapping respective units locally.

It was therefore no surprise to see the sales board empty in China for another week. Buyers can only hope that upcoming year-end when yards have to renew licenses and fill quotas will see prices push on again, as has traditionally been the case in years gone by.

Source: steel guru. 26 November 2013

GMS weekly report on India ship breaking industry for WEEK 47 of 2013:

Following in the footsteps of their Bangladeshi competitors, India saw local prices heat up once again as the currency began to settle and steel plate prices made some comparatively impressive gains during the course of the week.

Consequently, a number of interesting market sales were concluded, not least, the handysize bulker AL AMAL (6,333 LDT) which fetched an incredible USD 422/LT LDT, albeit with 220 T bunkers on board at the time of delivery. Up until last week, prices on smaller bulkers, reefers, general cargo vessels and tweens were still stuck below USD 400s/LT LDT.

Another interesting move saw the Norwegian controlled roro VIBEKE (10,650 LDT), with over 2,000 T solid concrete permanent ballast, sold for guaranteed green recycling for eventual resale into India, at a firm USD 400/LT LDT 'as is' Labuan with about 225 Tons of bunkers remaining on board upon delivery.

With the Rupee trading back down into the Rs. 61-62 to the U.S. Dollar as currency analysts predict a steadier end to the year, coupled with improvements on the steel prices by over Rs. 500, it could be a bullish end to the final quarter of the year, in what has proven to be a fraught and turbulent 2013 for local buyers thus far.

Source: steel guru. 26 November 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 47 of 2013:

As one or two speculators made their moves in Bangladesh last week something that saw prices spike upwards bv some USD 20/LT LDT this week saw steel prices soften by approximately the same amount (BDT 2,000, about USD 26/LT LDT) to give the market a more realistic outlook again.

The general feeling is that the ongoing political instability and strikes, along with the upcoming election around January 23, will likely see local steel plate prices gain ground once again.

For that reason, some of the bigger buyers continued to speculate into this week (despite the falls on scrap steel seen on the ground), and along with one or two private sales.

The heavy lift carrier ASIAN ATLAS (18,846 LDT) was concluded for USD 407/LT LDT 'as is' Singapore with about 700 T bunkers included in the sale. There were some questions over the stabilitv of the vessel and its capability to make a safe onward voyage, but one would presume she is a Bangladesh candidate owing to the proximity to this market and the preference for larger LDT units there.

Source: steel guru. 26 November 2013


GMS weekly report on ship breaking industry for WEEK 47 of 2013:

Sub continent markets finally started to fire again this week not quite all in tandem as the traditional fourth quarter surge (before year-end) perhaps finally appears to have taken hold.

A number of interesting, high priced and large LDT units were also confirmed this week a variety that included a VLCC, a capesize bulker, large LDT heavy lift carrier and a RoRo. There is still an element of cash buyer speculation involved with these sales, but the fundamentals are finally conspiring to present a bullish market in the sub-continent overall.

The unexpected blip of the past few weeks in India mat had seen the currency begin to depreciate down towards INR 64 to the US Dollar, finally corrected itself this week. The INR was trading at a far more respectable Rs. 61 to the Dollar as end buvers felt suitably comforted to resume buying again. Steel prices also made some relatively impressive gains as India threatened to snatch the position of "The Market of the Week" from Bangladesh.

Meanwhile, Chittagong saw some worrying reversals this week however as steel prices endured a worrying slump of BDT 1,000 over consecutive days to leave prices down by some USD 25/LT LDT from the previous week. End buyers continue to speculate on tonnage though with political instability, strikes, and upcoming elections, all likely to see potentially steel prices spike in the coming months.

Pakistan also saw a hungry market burst into life. Even though the currency continued to disappoint at excess PKR 107 to the dollar, demand had been building for some weeks now as open end buyers saw a majority of the market tonnage head to Bangladeshi shores (and even favoured VLCC units cleaned for hot works to facilitate this).

Lastly, China continued to struggle to compete with their sub-continent competitors once again, and even with year-end approaching, it could well be a struggle for the foreseeable fixture at current rates.

For week 47 of 2013, GMS demo rankings for the week are as below:

Country
Market Sentiment
GEN CARGO Prices
TANKER Prices
Bangladesh
Bullish
USD 400/lt ldt
USD 430/lt ldt
India
Bullish
USD 400/lt ldt
USD 425/lt ldt
Pakistan
Bullish
USD 400/lt ldt
USD 425/lt ldt
China
Weak
USD 330/lt ldt
USD 340/lt ldt

Source: steel guru. 26 November 2013

GMS weekly report on Pakistan ship breaking industry for WEEK 47 of 2013:

The Pakistani market roared back into the picture this week by capturing THE two market sales of the week at impressive numbers. A large part of this has to go down to cash buyer speculation, but there is a feeling that prices in Gadani are set to potentially pick up, in conjunction with the bullishness displayed in both India and Bangladesh presently.

As another VLCC, gas free for man entry only, was committed to one eager cash buyer (at previously unheard of levels), the interest of end buyers, competing cash buyers and curious owners was piqued accordingly. The Navios controlled SHINYO NAVIGATOR (42,448 LDT) was sold for a hefty USD 441/LT LDT for a Gadani delivery (with Sellers having the option to declare a USD 434/LT LDT price 'as is' Fujairah with only minimal bunkers).

The other sale concerned the capesize bulker RAM PRASAD (19,492 LDT), with the Danish build, full spares and 350 T bunkers all contributing to the extremely firm price of USD 440/LT LDT on show.

Source: steel guru. 26 November 2013

19 November 2013

ClassNK Issues First Statement of Compliance for Ship Recycling Facility:

ClassNK Issues First Statement of Compliance


Leading classification society ClassNK announced that it has issued the first Statement of Compliance for a ship recycling facility in Japan to Miyaji Salvage Co. Ltd. The Statement of Compliance issued by ClassNK certifies that the facility and its recycling procedures are fully in compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (Hong Kong Convention). This marks the first time that a ship recycling yard in Japan has achieved certification in line with the convention.

Miyaji Salvage Co. Ltd. was established in Tadotsu, Nakatado District, Kagawa Prefecture in 1976. Among the recycling facilities at Miyaji Salvage there are a 25,000m 2 ship recycling yards, a 450m wharf, and a 250t crane vessel, which are used in the dismantling and recycling of coastwise vessels and harbor loading facilities.

Miyaji Salvage developed its Ship Recycling Facility Plan (SRFP) according to the convention last year ahead of its entry into force. During the dismantling of the ferry “YOTEI-MARU”, in cooperation with the General incorporated association Ehime Toyo Ship Recycling Study Group (Representative Director: Takanori Hino), Miyaji Salvage developed the Inventory of Hazardous Materials (IHM) and the Ship Recycling Plan (SRP) required by the convention, and underwent a certification by ClassNK, completely carrying out all the requirements of the conventions.

ClassNK issued the Statement of Compliance to Miyaji Salvage after a thorough appraisal, verifying that the SRFP developed by Miyaji Salvage fulfilled all the requirements of the convention, and that the recycling of the “YOTEI-MARU” was in line with the convention. This certification as well as IHM and SRP certifications are offered by ClassNK as part of a “one-stop service”.

Miyaji Salvage is the third company in the world to be issued with this Statement of Compliance, after Jiangmen Zhongxin Shipbreaking & Steel Co., Ltd. in December 2012, and Dalian Shipbuilding Industry Marine Service Co. Ltd in September 2013. The recycling of the “YOTEI-MARU” also marks the first time in the world that ship recycling has been carried out with IHM, SRP and SRFP in compliance with the convention.

Source: world maritime news. 15 November 2013
http://worldmaritimenews.com/archives/97684/classnk-issues-first-statement-of-compliance-for-ship-recycling-facility/

Ship scrapping turns eco-friendly:


KESENNUMA, Miyagi—A move to dismantle decommissioned big ships in an environmentally friendly way and recycle them has spread throughout the country.

More than 90 percent of ships in the world are scrapped in developing countries, and environmental pollution caused by the demolition work is a problem. Observers say demolition responsibility belongs to the shipbuilding countries.

In Kesennuma—where the 330-ton, 60-meter-long Kyotoku Maru No. 18 was washed ashore by tsunami following the 2011 Great East Japan Earthquake—heavy machines roared as they carried steel plates cut from the fishing vessel. Although plans to preserve the ship as a reminder of the disaster were once discussed, work to dismantle the ship was completed on Oct. 28.

Demolition work was contracted to Ship Recycle Muroran, a nonprofit organization based in Muroran, Hokkaido. Steel parts taken from Kyotoku Maru No. 18 will become automobile parts, manholes and other useful items. The ship’s screw was also sold. Most of the ship’s parts have been recycled.

Demolition work was conducted in a way that prevents toxic substances, such as asbestos, from spreading to the environment, and unclean water created during the work was purified before being released into the ocean.

Ship Recycle Muroran is also working on improving water jet technology to cut steel plates. The technology can prevent heavy fuel oil and chemical substances in ships from catching fire because pressurized water is used in dismantling ships.

94% of demolition done abroad

“As no specialized shipbreaking yard existed, dozens of large ships were spread over several kilometers on a beach. It was an extremely unusual sight,” recalled Prof. Kazumichi Shimizu at Muroran Institute of Technology.

Shimizu, who is director of the nonprofit organization, was referring to a site in Chittagong, Bangladesh, which he visited on an inspection tour in 2009.

According to Shimizu, the beach was jet black and muddy with heavy oil that had leaked from the ships. It was virtually impossible not to hold one's nose as the air reeked of the smell of sludge.

The operating life of a ship is usually believed to be 30 years. In ships of that age, harmful asbestos was widely used as an insulating material for engines. However, barefoot workers wore no masks and even boys of middle school age worked among them, he said.

In cutting steel plates with oxyacetylene torches, sparks fell onto the beach, setting oil on fire. No one was surprised even when they heard the sounds of huge explosions, Shimizu said.

A local researcher has issued a report saying about a dozen people lose their lives annually at these sites.

As of 2012, 94 percent of the world’s ship demolition was carried out by four countries—India, Bangladesh, China and Pakistan—because of low labor costs and strong demand for iron in these nations.

Although Japan is a leading shipbuilding and maritime country, which builds 18 percent of the world’s ships and owned 14 percent of ships in terms of tonnage as of the end of 2012, ship demolition has decreased in this country after peaking in 1985.

Except for vessels belonging to the Self-Defense Forces and Japan Coast Guard, hardly any ship is scrapped here.

Shimizu, who is determined to convey to the next generation Japan’s shipscrapping techniques, said, “We Japanese, who build ships and receive a great deal of benefit from them, must improve the situation.”

He started to move the NPO’s activities into full gear with the scrapping of a 12,250-ton automobile carrier in 2010.

The move is spreading into other areas in Japan. In April, The Ehime Toyo Shippu Risaikuru Kenkyukai, a ship recycling study group based in Niihama, Ehime Prefecture, completed scrapping the Yotei Maru, a 8,310-ton former ferryboat that plied the Tsugaru Strait between Aomori and Hakodate, Hokkaido, in cooperation with a ship demolition firm in Kagawa Prefecture. The aim of the project was to improve ship-scrapping techniques. Study groups were launched in other areas, including Nakatsu, Oita Prefecture.

The main problem is the cost for dismantling ships. In scrapping Kesennuma’s Kyotoku Maru No. 18, only 10 people were engaged in the demolition work and the time they were allowed was shortened to six weeks. Even so, they only managed to cover about ¥50 million out of the total cost for scrapping the ship through insurance taken out by the ship’s owner and the sale of iron and other materials from the ship. The government provided a subsidy of ¥300 million to scrap the automobile carrier, but the company only broke even, Shimizu said.

Keio University Prof. Eiji Hosoda, an expert on environmental economics and recycling beyond borders, said: “Japan and other countries have the responsibility to handle recyclable waste and to dispose of waste. We can praise the move to dismantle more ships in Japan, but it’s necessary to develop techniques that can be transferred to developing countries not having proper equipment to prevent pollution.”

Source: japan news. 17 November 2013
http://the-japan-news.com/news/article/0000802864

GMS weekly report on Indian shipbreaking industry for WEEK 46 of 2013:

As yet, more volatility with the currency wreaked havoc with local sentiment, it was surprising to see several market sales register at prices some way above market.

Two Chinese tweens were sold for strong levels, with the YUAN TENG (5,672 LDT) committed for USD 408/LT LDT nett plus inward clearance fees for Buyers. The UNION HELLEN (7,318 LDT) too was sold for (an amazing) USD 426/LT LDT (less standard comms).

Pricing for tweens tends to fall somewhere in between bulkers and containers with the steel wastage usually less due to better, less corrosive cargoes.

Meanwhile, the Indian Rupee spent much of the week threatening to breach 64 against the U.S. Dollar again, something that left end buyers nervous to commit on new units. Such has been the extreme volatility seen in the currency this year that many recyclers fear another catastrophic depreciation that saw almost 20% of the value of their inventories wiped away earlier this year.

Steel prices also suffered something of a rollercoaster week with some worrying reversals corrected only in the latter part of the week to bring back some hopefully much needed stability into proceedings.

Source: steel guru.  19 November 2013

GMS weekly report on Bangladesh ship breaking industry for WEEK 46 of 2013:

With ongoing strikes and improving steel plate prices, Bangladesh roared back into the picture this week to reclaim its place as market of the moment. Steel mill owners took the opportunity to stock up, causing demand and prices spike impressively upwards over the course of the week.

On a note of caution however, it seems as though most mill owners have stocked up and that demand may fall from this coming week - so this most recent of spikes may not be something that endures.

Notwithstanding, several ship owners chose to take advantage of this and a number of sales were confirmed at increasingly strong numbers. Vista shipping of Ukraine continued their clear-out of older tonnage with the sale of the capesize bulker CAPE M (25,222 LT LDT) for a firm USD 436/LT LDT.

Source: steel guru.  19 November 2013

GMS weekly report on Pakistan ship breaking industry for WEEK 46 of 2013:

Pakistan lagged behind both Indian and Bangladesh markets for another week, as they struggled to compete on prices with their sub-continent neighbors.

For that reason, they lost out on their share of the market tonnage and there was some doubt as to whether they could even compete with Bangladesh for those VLCCs on the market, once cleaning costs considered for hot works.

Demand remains healthy and buyers are certainly emerging for new units (particularly tankers gas free for man entry), but the currency continues to frustrate and prices are subsequently being held back as a result.

Source: steel guru.  19 November 2013

GMS weekly report on ship breaking industry for WEEK 46 of 2013:

A long overdue yet (somewhat) unexpected spike in Bangladesh ignited the international ship recycling markets this week. Amidst the ongoing political instability and continuous strikes in addition to surging steel prices that saw mill owners decide to stock up on their inventory, subsequently resulted in ship prices and demand jumping dramatically over the course of the week.

A number of interesting sales were concluded (both market and private) to satisfy this renewed Bangladeshi hunger and it will be interesting to see if this streak maintains itself until the end of the year, or is it merely a short lived surge.

On the larger units, both India and Pakistan were simply unable to compete there was even speculation that of some of the recent VLCC sales (all gas free for man entry only), the hot works cleaning costs would be seriously considered by cash buyers looking to exploit the current surge from Chittagong.

Meanwhile, the Indian market suffered another turbulent week on the currency, just as some sort of stability had started to emerge over the past few months! The rupee spent much of the week trading into the 63s against the US Dollar, having previously settled around Rs. 61 for a good period of time.

The Pakistan Rupee was not faring much better either and fears of the nightmare scenario seen in the third quarter of this year started to resurface, leaving offers on new units virtually nonexistent.

The Chinese market failed to get going as well for another week - several larger LDT units thus escaped their clutches with cash buyer 'as is' prices pocketing owners a tidy premium over local levels in either North / South China.

For week 46 of 2013, GMS demo rankings for the week are as below:

Country
Market Sentiment
GEN CARGO Prices
TANKER Prices
Bangladesh
Bullish
USD 400/lt ldt
USD 430/lt ldt
India
Cautious
USD 395/lt ldt
USD 425/lt ldt
Pakistan
Cautious
USD 390/lt ldt
USD 420/lt ldt
China
Weak
USD 330/lt ldt
USD 340/lt ldt

Source: steel guru.  19 November 2013

MSTC plans to set up ship recycling yard at Gujarat

%20%28MSTC%20has%20proposed%20to%20set%20up%20an%20integrated%20ship%20recycling%20yard%20under%20the%20Public%20Private%20Partnership%20route%20at%20Alang%20in%20Gujarat.%29

NEW DELHI: State-owned trading firm MSTC has proposed to set up an integrated ship recycling yard under the Public Private Partnership route at Alang in Gujarat.

"The project can bring in substantial revenue for the government in the form of taxes and levies on the real value of goods as recorded in the e-commerce transactions," MSTC, which is under the administrative control of Steel Ministry, has said in its proposal.

It will also ensure that steel and allied products from the shipbreaking are sold through transparent and fair transactions, the proposal said.

MSTC suggested that "ship recyclers could avail the services of MSTC for disposal of various scrap material and e-waste through e-auction for safe handling and better price discovery", evincing interest in setting up the project at Alang.

A Steel Ministry panel, headed by its Additional Secretary and Financial Adviser, Vinod Kumar Thakral, has suggested MSTC contact Gujarat Maritime Board (GMB) or the state government with the proposal.

Alang houses one of Asia's largest ship breaking yards. It produces 3.5 million tonne of re-rollable steel per year and employs around 50,000 people.

Alang yard has 167 plots developed on 10 km long coast. It has a breaking capacity of 4 million tonne per annum. The Gujarat Maritime Board regulates the ship breaking activities there.

As many as 1,514 ships were received for breaking up at the Alang yard between 2009-10 and 2012-13, compared to less than 200 ships at Mumbai and Kerala yards.

Source: economic times.  18 November 2013

Strengthen security at Alang ship-breaking yard: Ministerial panel

Communication sets of vessels being scrapped at Asia’s largest ship breaking yard at Alang in Gujarat need to be destroyed so as to prevent their misuse, an inter-ministerial panel has recommended.

It has also said that the overall security at the yard, which produces 3.5 million tonne of re-roleable steel per year and employs around 50,000 people, be beefed up and the area should have more policemen.

“Keeping in view the number of ships arriving at the port for breaking and the size of the labour force/vendors, etc. visiting Alang ship breaking yard, it is necessary to strengthen the police station by posting additional policemen,” the Inter-Ministerial Committee (IMC) on ship breaking has recommended.

Headed by Vinod Kumar Thakral - Additional Secretary and Financial Adviser, Ministry of Steel - the IMC has also recommended that “communication sets of the scrapped ships are required to be destroyed to ensure that these sets are not misused and actually destroyed/disposed of”.

Besides, it said, the use of satellite phones (Thuraya and Iridum) on board ships bound to the port of Alang needs to be monitored closely.

The directions were issued amid concerns that the ship- breaking yard has only one police station headed by a PSI and has only 10-12 policemen.

As per a recent Steel Ministry document, the IMC Chairman also “desired that Directorate of Naval intelligence may write a letter to Home Department of the State Government for strengthening the police station”.

Alang is among the largest, well-established ship recycling yards in the world with 167 plots developed on 10 km long coast. It has breaking capacity of 4 million tonne per annum. The Gujarat Maritime Board regulates the ship breaking activities there.

As many as 1,514 ships were received for breaking up at the Alang yard between 2009-10 and 2012-13, compared to less than 200 ships at Mumbai and Kerala yards.

On the impact of hazardous material during ship breaking on workers, Steel Minister Beni Prasad Verma had said in Parliament in August that it is ensured that vessels being brought in are properly decontaminated.

He said that in Alang ship breaking yard some waste material is incinerated, while other is landfilled.

Source: the hindu businessline. 17 November 2013

MSTC plans to set up ship recycling yard at Gujarat

NEW DELHI: State-owned trading firm MSTC has proposed to set up an integrated ship recycling yard under the Public Private Partnership route at Alang in Gujarat.

"The project can bring in substantial revenue for the government in the form of taxes and levies on the real value of goods as recorded in the e-commerce transactions," MSTC, which is under the administrative control of Steel Ministry, has said in its proposal.

It will also ensure that steel and allied products from the ship-breaking are sold through transparent and fair transactions, the proposal said.

MSTC suggested that "ship recyclers could avail the services of MSTC for disposal of various scrap material and e-waste through e-auction for safe handling and better price discovery", evincing interest in setting up the project at Alang.

A Steel Ministry panel, headed by its Additional Secretary and Financial Adviser, Vinod Kumar Thakral, has suggested MSTC contact Gujarat Maritime Board (GMB) or the state government with the proposal.

Alang houses one of Asia's largest ship breaking yards. It produces 3.5 million tonne of re-rollable steel per year and employs around 50,000 people.

Alang yard has 167 plots developed on 10 km long coast. It has a breaking capacity of 4 million tonne per annum. The Gujarat Maritime Board regulates the ship breaking activities there.

As many as 1,514 ships were received for breaking up at the Alang yard between 2009-10 and 2012-13, compared to less than 200 ships at Mumbai and Kerala yards.

Source: Economic times. 18 November 2013

ShipBreaking Industry Back In Business In Bangladesh:

Shipbreaking industry, once banned in Bangladesh for violating environment and safety norms, is back in business


A visit to Sitakunda, the shipbreaking hub of Bangladesh, does not give an impression that only a few years ago the apex court of the country had intervened to clean up the hazardous industry following years of campaign by environmental and human rights groups.

The coastal strip in Chittagong division remains littered with scrap metals stained with toxic oil and chemicals; some of the chemicals are carcinogenic. Stories of accidents and deaths at shipbreaking yards are frequent, but only a few get reported (see ‘Harbour of...’). “Last year, 22 workers died while dismantling ships,” informs Muhammad Sahin, senior programme manager of non-profit Young Power in Social Action (YPSA). “This year till July, seven have died and hundreds have been injured,” he adds.

Ship importing and breaking activities are on a rise, says Rizwana Hasan, director of Bangladesh Environmental Lawyers Association (BELA). The non-profit was instrumental in the supreme court intervention. In 2009, when the supreme court passed its landmark judgement and directed the environment ministry to immediately take steps to ensure closure of shipbreaking yards that do not follow environmental norms, at least 60 yards were dismantling the great hulks, making the industry the second largest in the world. Thirty-six of them were operating without clearances, according to an affidavit submitted by the ministry in the court. The court lifted the ban two-and-a-half years ago. “Now there are nearly 150 yards. About 70 of them are operational,” says Sahin.

Officials with the Department of Environment (DoE) say all operational shipbreaking yards have necessary permits but refuse to divulge the number of the total or operational yards in the country.

Activists refute the officials’ claim. “The administration has legalised illegal shipbreaking yards by giving them permits. These yards fulfil only 10 per cent of the conditions outlined in the environmental clearances,” Hasan alleges.

The court order had brought a temporary halt to illegal activities in shipbreaking yards, says Taslima Rahman of BELA. “But in March 2011 the court relaxed the order, which has allowed the industry to continue its business-as-usual practices,” she alleges.

When the supreme court lifted the ban in March 2011, it asked the government to frame rules on ship-breaking and recyclining within two months. The government followed the order and drafted the Ship Breaking and Ship Recycling (SBSR) Rules by May that year. But the rules have not moved beyond the stage of drafting. When asked about the delay, Habibur Rahman, deputy secretary of the Ministry of Shipping, told Down To Earth that the SBSR rules “are undergoing a process of review by several departments”.

Industry lobby at work

Activists allege that the ship-breaking industry is lobbying hard to delay implementation of the SBSR rules.

In fact, it is said that in 2011 the supreme court relaxed its closure order on erring ship-breaking yards under pressure from the industry.

The ban order had hit the flourishing industry hard. The Bangladesh Ship Breakers Association had contested the ban, saying it will have a knock-on effect on the economy. About 30,000 of the country’s poorest are engaged in dismantling of ships at these yards. Another 400,000 indirectly depend on these yards, like truckers and scrap sellers, or work with allied industries such as rolling mills. Most of them have migrated to Sitakunda in search of work at ship-breaking or related units. The ship breakers association also argued that the ban would cause domestic steel prices to skyrocket because ship scraps meet more than 50 per cent of the country’s steel requirement. More than 350 rolling mills use these scraps as raw materials, according to the Department of Naval Architecture and Marine Engineering of Bangladesh University of Engineering and Technology in Dhaka.

Since the supreme court lifted its closure order, shipbreakers have been keeping shipbreaking activities behind closed doors. This Down To Earth correspondent tried to enter a shipbreaking yard to find out the working conditions, but was firmly denied. “The industry has become cautious now,” says Mohammad Idris, who has been working at the yards since he was 10 and has had close encounters with death several times while dismantling ships.

Hope in draft rules

The draft rules outline environmental and occupational safety measures that should be undertaken by ship recyclers, and impose penalty on defaulters. In case of accidents, ship-recyclers must report in writing to the police as well as to the Ship Breaking and Ship Recycling Board (SBSRB) under the Ministry of Industries. In case of major accidents, the yards can remain suspended for inspection for seven days. The rules also specify the responsibility of the authorities in issuing various permits required for shipbreaking.

Officials at DoE say at present shipbreaking industry is treated like any other industry and ship breakers have to apply for permits only from DoE and the Ministry of Shipping. “Under the draft rules, a ship-recycler will have to seek no-objection certificates from a host of authorities, including SBSRB, Customs Department and the Department of Explosives. Both DoE and SBSRB will be required to examine the ship for hazardous wastes,” says Mohammad Shahjahan, director of DoE.

Sitakunda’s long beaches and perfect slopes make ship beaching easy. This makes the coastal strip a perfect zone for setting up shipbreaking yards. “Rampant illegal activities in the yards are earning it a bad name,” admits Zafar Alam, director of the Chittagong DoE. He hopes the rules will help make the industry hazard free and lucrative.

Harbour of a hazardous industry

Lax environmental and occupational health regulations make shipbreaking a lucrative business in Bangladesh. Cheap labour force, willing to work despite dangerous conditions, helps it flourish.

Accidents and deaths are common, says 42-year-old Mohammad Murad. He lost his leg while working in a shipbreaking yard in 2009. His employer Kabir Steel Yard gave him nothing to compensate for the loss, he says. Yet, Murad thinks he is more fortunate than many others. Most often, accidents and deaths go unreported. “Many a time, bodies of workers are simply dumped into the Bay of Bengal,” says Taslima Rahman of non-profit Bangladesh Environment Lawyers Association (BELA).

A 2010 World Bank analysis states, 25 per cent of the accidents and deaths occur when heavy metal plates fall on workers from the upper decks of the ship. Fire explosion in oil tankers cause 50 per cent of the accidents and deaths. “Judicial mandates require a ship to be cleaned of dangerous chemicals before it is dismantled. But tests done to ensure this are merely obligatory,” says Taslima Rahman of BELA.

Source: Report ‘National Programme of Action for Protection of Coastal and Marine Environment from Land-Based Activities, 2006’ by the Department of Environment, Ministry of Environment and Forests
Occupational safety is not the only concern for the workers and those living in the coastal area. A research by University of Chittagong in 2006 shows that polychlorinated biphenyls, or PCBs, asbestos, lead, chromium, mercury and oil are released when ships are dismantled, have polluted the water and soil of coastal Chittagong (see ‘Toxic water’). Oil kills marine organisms, while chromium and lead in paint and batteries cause skin diseases, problems in the gastrointestinal tract, liver, and damage the brain and kidney. Mercury in lights, fire detectors and tank-level indicators can lead to mental retardation, disorder of the nervous system, and delayed neurological and physical development. However, there is little study to show the impact of pollution on the health of Sitakunda residents.

Source: counter currents. By Srestha Banerjee. 17 November 2013
http://www.countercurrents.org/banerjee171113.htm

16 November 2013

Scrapping the Solway Harvester should be finished by Christmas:

Solway Harvester pictured in Douglas harbour by Isle of Man Newspapers on Wednesday

Work to dismantle the fishing boat Solway Harvester which has been moored at Douglas for around 13 years has already started.

Stephen Carter, boss of the Laxey Towing Company, which is undertaking the task, said weather permitting he hoped to complete the work by Christmas time.

‘We will have a team of men working on the job with cranes and oxy-propane burners,’ he said.

The Solway Harvester, a scallop dredger, sank in rough seas in January 2000 with the loss of all seven Scottish crewmen. The boat is thought to weigh around 170 tons and is the largest vessel to be dismantled in the Isle of Man for some years - possibly since the old Douglas Head steam ferry was dismantled in the 1960s, Mr Carter suggested.

The steel-hulled boat still has its engines and winding gear on board which will also need to be removed. The team of five or six will work down from the top cutting away sections - some as large as five or six tons - which can be lifted away by crane and loaded on to a lorry then transported by road and ferry to a UK scrap merchant. It can then be melted down and reused.

‘When you are cutting a ship up it has to be done systematically and in a way that maintains the vessel’s stability so it does no capsize. You have to plan ahead where you are going to make the cuts.

‘When you build a ship you start from the keel and work up, so when you dismantle one, you start from the top and work your way down,’ he said.

The vessel has been moored near to the Douglas lifting bridge which is where the work is taking place. The area is tidal and the boat is still afloat but has needed repairs recently after its thinning hull deteriorated and sprang a leak.

Mr Carter said as sections were removed it would float higher in the water, as the weight was reduced. Finally, work on the bottom section of the hull would be completed during low tide times when the area was clear of water.

‘The idea is to keep it afloat as long as possible then the last of the work will be done at the bottom of the harbour at low water,’ he said.

‘We have a fairly detailed plan worked out as to how to dismantle it. The optimum number of workers is about five. Given that it’s a fairly small vessel it’s not really feasible to have more than that.’

He added: ‘With good weather the work is expected to take about a month. Our aim is to get it done before Christmas. But there will be days when it is too windy - meaning we can’t use the crane - or too wet.

‘We can’t use the cutting equipment if we get really torrential rain. In theory the steel could go to steel works anywhere in the world to be melted down to make cars, another ship or be used in buildings, for example.’

Sale of the scrap metal will go to offset the cost of disposing of the vessel which Infrastructure Minister David Cretney estimated at £20,000, Mr Carter said.

The boat was heading to take refuge in Ramsey Bay from stormy weather when it sank 11 miles from the Isle of Man coast. In 2008 an inquest in the Isle of Man found the deaths of the boat’s seven crew members was accidental. The wreck has remained in the Isle of Man since then.

Source: iom today. 16 November 2013
http://www.iomtoday.co.im/news/isle-of-man-news/scrapping-the-solway-harvester-should-be-finished-by-christmas-1-6241915