31 October 2014

CMES receives ship recycling subsidy:

Shanghai: China Merchants Energy Shipping (CMES) has announced that it has received a RMB507m ship recycling subsidy from parent China Merchants Group.

The company is in the middle of a massive fleet optimisation plan, with 10 VLCCs and 12 bulkers under construction.

CMES is currently planning to set up a joint venture with sister company Hong Kong Hoi Tung Marine Machinery to start ship broker services for newbuilds, second hand ships and retired ships.

CMES reported a net profit of RMB313m for the first three quarters of this year, a significant improvement from the RMB201m loss during the same period of last year.

Source: sino ship news. 31 October 2014

30 October 2014

‘Dismantling the only option’

Two abandoned tralwers positioned atop a sunken vessel at the fishing harbour in Visakhapatnam on Wednesday. Photo: K.R. Deepak

Trawler owners argue that dismantling trawlers is different from ship-breaking. Dismantling in the jetty will not cause any kind of pollution whatsoever as they have tanks with no fuel or lubricants.

“Scrapping will not cause pollution of any kind as the vessels do not have any toxic or hazardous material and the hull is totally made of steel,” admits an official of Visakhapatnam port.

According to owners, dismantling of trawlers will not cause any kind of pollution. The trawlers are totally empty of any fuel and lubricants. There are no toxic or any hazardous materials/chemicals/gases/radiation/pollutants in the body of the trawler. The total hull is made of only steel. The engines can be easily dismantled and removed, and the steel body can be easily scrapped by simply cutting.

If a trawler sinks it will cause much more pollution and will be hazardous to other adjoining vessels which are berthed alongside. Also the jetty will not be available for further berthing of other trawlers, as the fishing harbour is already overcrowded.

Minister for HRD Ganta Srinivasa Rao, who inspected the harbour immediately after Hudhud ravaged it, told The Hindu that the government would hold a meeting with the officials of all the departments concerned to resolve the problem at the earliest.

Source: the hindu.

28 October 2014

Maritime environmental laws needed to combat marine pollution:

ARTICLE 193 of UNCLOS confers upon member States the sovereign right to exploit their natural resources pursuant to their environmental policies and in accordance with their duty to protect and preserve the marine environment, which requires States to take all the measures consistent with UNCLOS to prevent, reduce and control pollution of the marine environment from any sources mentioned in this convention. Have we complied with this duty to protect marine environment and obligation to take measures to prevent and control the marine pollution of the Bay of Bengal (BoB) region?

In the National Programme of Action (NPA) 1999 under the Global Programme of Action (GPA) of United Nations Environment Programme (UNEP), twelve major issues, such as industrial waste (including ship breaking yards); sewage disposal; solid waste management; agrochemicals; deforestation; salinity intrusion; rapid urbanisation; erosion in the coastal zone; coastal tourism; land use change and climate change, have been identified as the main sources of coastal and marine pollution of BoB.

In the international Conference on Marine Environment Aspects of Bangladesh 2010, held in Japan, it was mentioned that around 3.5 million tons of crude and refined oil are imported by Bangladesh, which contributes around six thousand tons of oil to the four hundred thousand tons of annual oil pollution in the BoB. Approximately 1,800 tons of pesticides enter the Bay annually. The web based publication 'World Casualty Statistics' 2011, by IHS Fairplay, the largest five ship recycling countries in the world are India, China, Bangladesh, Pakistan, Turkey which recycle 97% to 98% of the world's tonnage. Interestingly, of the top three largest ships recycling countries, India and Bangladesh are surrounded by the BoB. It was reported that about 250 kg of polychlorinated biphenyl (PCB) are released from each ship in the ship breaking yard of Chittagong area. With 90 ships being dismantled each year, the total influx of PCB in Bangladesh could be about 22.5 tons. These toxic chemicals and pesticides are threats to both coastal and marine environment as well as public health.

Human rubbish, including synthetics and plastics, in the oceans and on beaches is called marine debris. It is one of the world's most ubiquitous pollutants affecting the oceans. According to the Global Program Action Report 2005 under UNEP, the quantity of solid waste generated by the costal populations of South Asian Seas (SAS) region is 11,650 tons per day. In Bangladesh, only a fraction of the solid waste generated is collected. It is estimated that about 9,000 metric tons of human waste are released along the coast from Chittagong and Khulna. 

If this pollution continues, it will certainly destroy important habitat and biodiversity; drive many wildlife species near to extinction; destroy mangrove forests; cause the whole ecosystem to become unbalanced and hinder sustainable development. For our survival and sustainable development, it is time to comply with the duty to protect marine environment and adopt laws and regulations to prevent, reduce and control pollution of marine environment.

To combat marine pollution, Bangladesh ratified or signed International Convention on Oil Pollution Preparedness; Response and Cooperation (London, 1990); Basel Convention on the Control of Trans boundary Movements of Hazardous Wastes and their Disposal (Basel; 1989); United Nations Conventions on the Law of the Sea, 1982; International Convention Relating to Intervention on the High Seas in  Cases of Oil Pollution Casualties (Brussels, 1969);  and International Convention for the Prevention of Pollution of the Sea by Oil 1973 (MARPOL) as modified by the protocol of  1978. The six annexes of MARPOL (Annex 1 to 6) that are in force in Bangladesh from 2002 cover pollution by oil, chemicals, harmful substances in packaged form, sewage, and garbage. But there is no comprehensive national legislation for enforcement of these conventions.

Some of the laws concerning marine pollution were enacted 100 years ago and have not been updated. For example, the Port Act 1908 was enacted to protect the water of port areas from pollution caused by chronic spillage of oil; dumping of ballast and rubbish; and discharge of bunker water containing oil from vessels. But the penal provisions are not adequate. Section 8 of the Territorial Waters and Maritime Zones Act (TWMZ) 1974 implies that the government may, with a view to preventing and controlling marine pollution and preserving the quality and ecological balance in the marine environment in the high seas adjacent to the territorial waters, take such measures as it may deem appropriate for the purpose. Section 9 of this Act empowers government to make rules in this regard. The Environmental Action Plan adopted in 1992 focuses on coastal and marine environment. It contains 8 plans that have to be implemented by various agencies of the government.

The Environment Conservation Act (ECA) of 1995 (amended 2010), followed by the Environment Conservation Rules (ECR) of 1997, is the umbrella environmental legislation that provides for overall environmental conservation of the country. The above mentioned laws are not suitable for implementing the international conventions ratified by Bangladesh concerning marine pollution.  

Bangladesh government, pursuant to Section 20 of ECA 1995, enacted Ship Breaking and Hazardous Waste Management Rules 2010. Rule 18 of this law calls upon each importer and exporter of hazardous wastes to comply with the provisions of Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, 1989. The Basel Convention focuses on the regulating the transboundary movement of hazardous wastes to protect developing countries from importing such wastes that they are unable to manage in an environmentally sound manner. However, Basel does not establish a system for ship recycling, rather this has been dealt with in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009. Though Bangladesh is the 3rd largest ship recycling country, it has not ratified the Hong Kong Convention and the observance of this convention has not been mentioned in Ship Breaking and Hazardous Waste Management Rules 2010.

Because of the lack of comprehensive marine environment laws in Bangladesh, there has been little success in preventing and controlling marine pollution. Comprehensive legislation is urgently needed to make international conventions concerning marine environment and marine pollution of the BoB effective. In 2004, the Department of Shipping drafted a Marine Environment Conservation Act 2004. But it has not been enacted. It is hoped that the government will enact comprehensive maritime environmental legislation to protect BoB from marine pollution.

Source: the daily star. 28 October 2014

25 October 2014

Avengers assemble...in Chittagong

Superhero sequel Avengers: Age of Ultron will be watched particularly avidly by the Bangladeshi ship demolition industry.

A new trailer for the Marvel blockbuster, due next year, contains a sweeping shot of vessels beached at Chittagong Ship Breaking Yard.

The film, starring Robert Downey Jr and Samuel L Jackson among others, was filmed partly in Bangladesh, according to movie database imbd.com.

Rumours that the plot hinges on the Hulk living up to his green colour and battling for sustainable vessel recycling could not be confirmed.

The trailer garnered more than eight million views in its first 12 hours online.

Source: tradewinds news. 24 October 2014

Experts divided over old ship imports:

VietNamNet Bridge – A revised law allowing the import of used ships has inspired spirited debate amongst authorities and experts. While some believe the law will boost the profitable shipping industry, others are afraid serious environmental impacts will occur if not strictly controlled.

Shipping industry, old ship imports, waste treatment, environmental protection
A revised law allowing the import of used ships has raised controversy as some experts think that it is profitable while others are afraid of its serious impact on the environment. — Photo baodautu.vn
Under the revised Law on Environmental Protection, set to go into effect on January 1 next year, individuals and enterprises may import old ships intended for demolition provided they satisfy environmental requirements.

Duong Thanh An, Director of the Department of Policy and Legal Affairs of the Viet Nam Environmental Administration, said that importers are required to prepare an application package that includes an environmental protection dossier. The dossier includes a declaration of the actual state of the ship, a written commitment to abide by environmental standards and a copy of the ship yard's certificate of satisfaction of environmental protection conditions.

"Environmental damage insurance is also a must," An said.

A profitable industry

The Viet Nam Maritime Administration explained in its draft decree that recycling ships would be a huge and high-quality source of material for the country's steel industry.

In 2012, Viet Nam had to import nearly 4 million tonnes of scrap steel, mostly from China. Since 2012, the need for steel imports reportedly increased by 2.5 million due to a number of newly operating electrical steel companies.

"The permission to import these ships will benefit the economy and create a lot of employment opportunities for labourers," said the administration's director, Nguyen Nhat.

"More importantly, it will create opportunities and solutions necessary for survival of the nation's ship building industry, which is undergoing a quite difficult time," he said.

According to the maritime administration, ship builders in Viet Nam have recently seen fewer contracts for ship building and repairs. Meanwhile, enterprises that demolish and recycle used ships have plenty of experienced labourers with nothing to do.

Do Thai Binh, a shipbuilding engineer from HCM City's Marine Science and Technology University, is in favour of the new import allowance. He argues that countries should have a ship demolishing and recycling industry, especially true for a developing Viet Nam.

Such an industry is inherently beneficial to the environment since it reuses scraps and old machines from ships, he told Dat Viet (Viet Land) newspaper. Citing the experiences of Bangladesh and Germany, he said only 3-4 per cent of a used ship cannot be reused and recycled.
Unavoidable warnings

Despite Binh's favourable stance, he stressed the importance of ensuring environmentally sound practices in the demolishing and recycling process.

"The regulations shouldn't be only those on paper. Recycling enterprises should be inspected carefully to determine how best to deal with toxic waste from the ships," he said.

He added that there must be a specialised team to address all the potential environmental threats, including old paint and oily bilge water.

Professor Pham Ngoc Dang, Vice President of the Viet Nam Association for Environment and Nature Protection, also warned about the threats of toxic wastes such as oil, asbestos and heavy metals like mercury, lead, copper, zinc, aluminium and iron.

He said that, many people spoke only of the potential profits to businesses and the State budget; the demolition of a big ship could bring in millions of dollars. However, he was skeptical of such talk.

"I believe the profit can only be gained if enterprises ignore the intricacies of the waste treatment process," he said.

Do Huu Hao, President of the Viet Nam Environmental Industry Association, urged for strict regulations to be imposed on import enterprises.

"The most important thing is that import enterprises must own a large area for such work and they must have waste treatment capacities in place," he said.

"All the processes and products must be in accordance with the country's environmental standards for solid and liquid waste treatment," he said.

Deputy Minister of Transport, Nguyen Van Cong said that the ministry requested the addition of detailed regulations regarding the conditions for the import and demolition of used ships.
"Enterprises engaged in these activities must satisfy all conditions regarding capacity, experience and environmental protection," he said.

The ministries of transport and natural resources and environment have set criteria for ships which could be imported and Vietnamese enterprises that are permitted to do so.

Source: Vietnam Net. 25 October 2014

24 October 2014

Many Chinese ship recyclers facing bankruptcy

Many ship recyclers in China are likely to go bankrupt in the coming 12 months the head of the nation’s ship recycling association has warned. Speaking with our sister site, Maritime CEO, Xie Dehua, president of the China National Ship Recycling Association, said: “Many of China’s ship recycling yards will go bankrupt next year.”

Xie’s thoughts echo a recent market report from ship scrapping specialists GMS which predicted Chinese recyclers would continue to suffer from limited business through to the end of 2015.

Source: sinoship news. 23 October 2014

23 October 2014

"Toxic ships for Bangladesh": A TV documentary on German ship owners and their shipbreaking practices

Sunday 26 October 2014, 14:45 - 15:15  on German state TV channel ZDF 

Brussels, 23 October 2014 – A new documentary titled "Giftiger Tankerschrott für Bangladesch - Toxic ships for Bangladesh" will be shown this Sunday on ZDF. It was filmed by a team of the national German TV channel last month in Chittagong, one of the world's largest shipbreaking sites. The documentary follows Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform, and Muhammed Ali Shahin, the Platform's Bangladesh project coordinator, as they meet with the workers, some of them children, and their families.


The team interviews workers who were injured while dismantling end-of-life ships. Some of them are permanently disabled as a result, and have no other choice but to fight their former employers to get compensation for their injuries and access to proper medical care. The team visits the poorly run hospitals and talks with doctors about the miserable conditions in which they have to provide treatment.


But the documentary goes further: not only does it show the precarious working and living conditions of the shipbreaking workers and their families, it also reveals how German shipping companies are complicit by knowingly selling their old ships to yards that are no more than muddy beaches and where accidents, sometimes fatal, are frequent. Most German ship owners sell their old vessels for the best price - making a handsome profit at the expense of workers' lives and the environment. The documentary shows the clear link between the irresponsible dumping of German-owned ships in Bangladesh and the deplorable situation on the ground in Chittagong. The journalists also meet a ship owner that has chosen to invest in cleaner and safer ship recycling methods, where workers are trained and aware of the hazardous waste these ships can contain. The documentary thus shows that alternatives to substandard beaching practices are possible.


Source: NGO Shipbreaking Platform.

New environmental protection law for shipbreaking in Vietnam:

Hanoi: Vietnam’s shipbreaking industry will have to comply with a revised Law on Environmental Protection from the start of next year as the country seeks to grow its vessel recycling sector.

As of January 1, 2015, importers of ships for demolition in Vietnam will be required to prepare an application package that includes an environmental protection dossier. The dossier includes a declaration of the actual state of the ship, a written commitment to abide by environmental standards and a copy of the shipyard's certificate of satisfaction of environmental protection conditions.

The Vietnamese government hopes the move will boost the country’s shipbreaking industry, as its shipbuilding industry flounders. Importing ships for recycling will help meet growing domestic demand for scrap steel, and lessen its dependence on scrap from China.

Source: sea ship news. 22 October 2014

22 October 2014

Remember the distinguished ship that was sadly scrapped

OCTOBER 24 will be the 102nd anniversary of the launch of the Devonport Dockyard-built dreadnought HMS Marlborough. An Iron Duke class battleship, she was one of the Royal Navy's last coal burning battleships.

Of 25,000 tons displacement, armed with ten 13.5 inch guns, she was powered by direct drive turbines driving four shafts to give a speed of 21 knots.

Like other British battleships, she was a wet ship in a heavy sea because of her low foc'sle but she was a steady and effective gun platform as she was to show during her performance in the Battle of Jutland.

On June 6 1914, she commissioned to become the Flagship of the First Battle Squadron of the Grand Fleet and at the Battle of Jutland on May 31 1916, she flew the flag of Admiral Sir Cecil Burney, Second-in Command of the Grand Fleet.

During the battle, she gave a good account of herself, scoring a number of heavy calibre hits on the enemy, but she in turn was struck by a torpedo possibly fired by the German light cruiser Wiesbaden, killing 2 stokers and causing some flooding. However, despite a list to starboard, she was able to maintain station and remained in action.

Eventually, she was ordered back to the Tyne under escort after Burney transferred his flag to HMS Revenge to continue his command. It would be three months before she was fully repaired. After the war, she saw action in the Black Sea in support of the White Russians, carrying out shore bombardment missions and also having the task of evacuating the Imperial Russian Family from Yalta who were fleeing from the Bolsheviks.

Between 1920-22, Marlborough was refitted and modernised at Devonport, after which she returned to the Mediterranean for further service. In 1926 she joined the Atlantic Fleet where she remained until 1929 when she was paid off into reserve.

In June 1931, she was used for a series of trials in Plymouth Sound to determine the strength of watertight compartments and hatches adjacent to her forward magazines. This involved the emplacement and detonation of increasing amounts of explosives until the damage finally necessitated docking.

On September 16 1931, she moved to Portsmouth to undertake more trials including aerial bombing before being placed on the disposal list. In May 1932, Marlborough finally met her end when she was sold to the Alloa Shipbreaking Company, arriving at Rosyth on June 23 1932 for scrapping, a sad end to a ship which had given distinguished service.

Source: Plymouth Herald. 22 October 2014

21 October 2014

Nuclear-reactor ship headed to Galveston to be scrapped:

The U.S. Army Corp of Engineers recently announced plans to tow a World War II-era Liberty ship converted to a barge-mounted nuclear reactor to Galveston from Joint Base Langley-Eustis in Virginia to be scrapped. The barge is expected to arrive at the Malin International Shipyard in mid-December.

Following a comprehensive environmental assessment completed last April, a $34.66 million contract was signed with CB&I (Chicago Bridge and Iron) Federal Services to oversee the process of safely removing the radioactive metal from the ship and placing it in special containers for transfer to a low-level radioactive waste storage facility.

The entire process is expected to less than four years, but the details of the scrapping operation once the USS Sturgis arrives in Galveston have not been finalized, officials said.

“One of the options we are looking at is bringing the STURGIS to Brownsville for ship breaking, after all of the hazardous waste and residual radioactive waste have been removed. The other option we are looking at is removing all of the hazardous waste and residual radioactive waste and selling the STURGIS as is to a company,” Andrea Takash, Corporate Communication Representative for the U.S. Army Corps of Engineers Baltimore District said via email.

“For the low-level radioactive waste, the two primary disposal sites being considered are Waste Control Specialists in Andrews, Texas and Energy Solutions in Clive, Utah. We are also still pursuing the disposal of waste at the National Nuclear Security Administration in Nevada, which is a Department of Energy site,” Takash wrote.

The USS Sturgis has been in safe-mode storage undergoing detailed quarterly safety inspections for over 35 years, according to a recent environmental report.

Originally outfitted with a nuclear reactor to generate electric power for military and civilian operations in the Panama Canal Zone in the 1960s, the reactor was shut down in 1976 and fuel was removed. In 1978, the ship hull was dry docked, inspected and closed down for long-term storage.

Source: the Pasadena citizen. 20 October 2014
http://www.yourhoustonnews.com/pasadena/news/nuclear-reactor-ship-headed-to-galveston-to-be-scrapped/article_767bf978-5125-556c-8a29-037f23161c5e.html

GMS weekly report on Bangladesh ship breaking industry for WEEK 42 of 2014:

As the best placed of all sub-continent markets at present, it was slightly surprising to see no market sales recorded into Bangladesh this week. There may have been one or two private acquisitions from existing cash buyer inventories, but overall a slight nervousness has begun to enter the minds of end buyers.

Always conscious of the market movements of their subcontinent rivals, Bangladeshi buyers were keenly aware of the decline in sentiment and pricing in both Pakistan and India, this week.

Steel prices arrowed down by as much as USD 13 per LDT before making a slight recovery by USD 6 per LDT towards the end of the week, but there can be no denying that the seeds of doubt have already been sown in Bangladesh.

Source: steel guru.  21 October 2014

GMS weekly report on Indian ship breaking industry for WEEK 42 of 2014:

The Indian market has been reeling for the best part of two weeks, due to the sudden depreciation of the Indian Rupee, coupled with some dramatic falls on the scrap steel prices. Consequently, there is little doubt that a new reality on price, at least USD 20 per LT LDT off the peaks of the past few months, is just around the corner.

Part of the problem has been this import of cheap Chinese steel that has seen many yards undercut on their own inventory. As a result, there has been a complete reversal in the bullish sentiment that had characterized the third quarter and the early part of this year.

A cagey atmosphere has begun to prevail at the waterfront, with renegotiations and needless questions raised on incoming vessels, now becoming a regular occurrence.

Those cash buyers who rely on end user finance can only transfer their issues to the owners, whilst it is the role of the strong cash buyer who can fight frivolous claims and still get vessels smoothly delivered, despite market turmoil.

Whilst there were few market sales to speak of, those cash buyers who have agreed deals to India and have high priced unsold vessels in hand are desperately seeking alternatives to what is the worst placed of all sub continent markets at present.

Source: steel guru.  21 October 2014

Replica of Cheng Ho ship demolished for blocking river

Replica no more: Workers disassemble a replica of the Cheng Ho ship on the Semarang River in Semarang. The replica, which was built in 2005 and is seen as an icon of Chinese culture in the city, was demolished because it was deemed to block the river’s flow. JP/Suherdjoko

A replica of the Cheng Ho ship on the Semarang River near the Tay Kak Sie temple on Gang Lombok in the Pecinan Chinatown area of Semarang, Central Java, has been destroyed by the city’s Public Order Agency (Satpol PP).

The demolition, which started on Thursday, was ordered because the replica, which blocked about 15 meters of the 20 meter-wide river, was considered to be disturbing the waterflow.

Head of the Semarang City Satpol PP Endro Pudyo Martanto said that his team would need up to 10 days to completely disassemble the replica, which was built on the river in 2005.

To help smooth the demolition process, the City Water Resources Management Agency (PSDA) and Energy and Mineral Resources Ministry (ESDM) has deployed a team equipped with heavy machinery and with the help of an 80-strong team from the Satpol PP.

“We’re just helping with the demolition work. After the demolition the PSDA and ESDM will continue the normalization of the river,” Endro said over the weekend.

He said the debris resulting from the demolition process would be handed over to the Tay Kak Sie Foundation, which built the replica, to be recycled.

Semarang Mayor Hendrar Prihadi had previously assured reporters that the city administration would disassemble the replica of the Cheng Ho ship.

“We gave the Tay Kak Sie Foundation a deadline of August 30, 2014, to disassemble the replica themselves. They failed to do so, so we have agreed that the demolition will be conducted by the city administration,” Hendrar said.

The Rp 150 million (US$12,500) needed for the demolition work has been allocated from the amended city budget. The recommendation to disassemble the replica came from the city legislative council.

The replica was built on concrete pillars planted on the riverbed. It was built to celebrate the 600th anniversary of the arrival of Chinese navigator Cheng Ho’s expedition in Semarang in 2005, and was intended to be a permanent construction.

The move to demolish the replica has been the source of hot debate for the past nine years. Chinese cultural events have, since it was built, always been held on the dock near the replica, including a bedug (traditional drum) festival held during Ramadhan. Cheng Ho was a Chinese Muslim admiral of the Ming dynasty.

He is believed to have moored in Semarang in 1405.

The 600th anniversary of Cheng Ho’s arrival in Semarang was marked by great celebrations in August 2005.

Events included the opening of the Sam Poo Kong Temple in Gedung Batu, which features a statue of Cheng Ho, and the building of the replica near the Tay Kak Sie Temple on the Semarang River.

Meanwhile, a prominent leader of the Indonesian Chinese community in Semarang, Jongkie Tio, said he did not object to the demolition of the replica as it was considered to be blocking the river.

“It was hoped that the replica would become a cultural icon in the Pecinan area. But it turns out that the replica was causing harm by blocking the flow of water. In the name of the greater public interest, I agree with the demolition,” Jongkie was quoted by Antara as saying.

Without providing details, Jongkie claimed that the Semarang municipality administration had promised to find another spot for the replica.

Source: The Jakarta Post. 20 October 2014

GMS weekly report on China ship breaking industry for WEEK 42 of 2014:

Despite prices across the sub continent falling by at least USD 15 to USD 20 per LT LDT, Chinese yards remained as inactive on international tonnage as ever with prices below USD 300 per LT LDT now the accepted norm and few owners (at least not eligible for state subsidies) tempted to cash in at such numbers.

As a result, it was another bleak week for the sales board, with only direct and private tonnage from state owners keeping yards active. Furthermore, the cheap import of Chinese steel is one of the reasons behind the recent decline in levels in India, Pakistan and Bangladesh and unless local governments in these locations can increase tariffs or prohibit the import of these billets, it could be a bleak few months ahead for the international ship-recycling sector.

Source: steel guru.  21 October 2014

GMS weekly report on Pakistan ship breaking industry for WEEK 42 of 2014:

Whilst not as precariously placed as the Indian market, there was still a distinct lack of interest to acquire units from Pakistani end buyers.

The onset of Diwali holidays in India may place the spotlight firmly back on Pakistan and Bangladesh (both having recently emerged from Eid holidays themselves), yet it seems like both markets are content to wait and watch market developments (expecting a downward trend) before committing themselves on new units.

Rumors were also rife this week that the 41,660 LDT VLCC that had been mooted as a potential sales candidate last week at an unthinkable price above USD 525 per LT LDT was once again back on the market the most high profile (and costly) of the recent failed deals and something that has caused owners to lose even the original prices they had from reputable cash buyers as well.

Source: steel guru.  21 October 2014

So what, every industry has accidents - Alang shipbreaking industry

counterview.net reported that in an unusual statement, a top ship cycling industry representative has sought to justify large number of deaths due to accidents occurring at the Alang shipbreaking yard saying, “Every industry has accidents”.

Mr KB Tayal, vice president of the Ship Recycling Industries Association (India), Alang, said that “Some (industries) might have more (accidents) than others. Even though it happens, it might be due to negligence of workers, or of the machinery. When it happens, no problem. We pay compensation to workers and a penalty to the government.”

The statement, which should sound shocking to environmentalists, has come in the wake of the Government of India decision to look after the affairs of ship recycling industry to the Ministry of Shipping. Currently, the Ministry of Steel is the nodal agency.

But would the new GoI decision to hand over the ship recycling sector to the Ministry of Shipping become an “opportunity for the hazardous ship-breaking sector in India to reinvent itself?” Mr Ravi Agarwal, director of Toxics Link, an NGO that has been working on the issue of toxins in ship recycling since 1992, believes as of today, things are so bad with ti that “there is no clarity on who the owners are, what proper transaction values are, when do clearances come in. It would be much better if all of this is made above board.”

Source: steel guru.  21 October 2014

GMS weekly report on Turkey ship breaking industry for WEEK 42 of 2014:

An unstoppable decline of local steel plate prices remains the highlight of the tenth month of this year for the Turkish market.

It does not look like that October will bring any sort of stability or hope for the domestic shipbreakers, who appear to have totally lost momentum and are left watching the values of their acquired units drop by nearly 10% during the past week alone, and by more than 20% through the course of the month.

As such, end buyers are no longer keen to purchase market tonnage at any levels starting with 3, despite the fact that they desperately need to see their yards operating, be it at losses, or risk shutting down entirely.

Source: steel guru.  21 October 2014
http://www.steelguru.com/international_news/GMS_weekly_report_on_Turkey_ship_breaking_industry_for_WEEK_42/351254.html

20 October 2014

Alang shipbreaking industry rep says, every industry has accidents, may be due to worker negligence

In an unusual statement, a top ship cycling industry representative has sought to justify large number of deaths due to accidents occurring at the Alang shipbreaking yard, on south Saurashtra coast in Gujarat, saying, “Every industry has accidents”. Talking to a news portal, KB Tayal, vice president of the Ship Recycling Industries Association (India), Alang, said, “Some (industries) might have more (accidents) than others. Even though it happens, it might be due to negligence of workers, or of the machinery. When it happens, no problem. We pay compensation to workers and a penalty to the government.”

The statement, which should sound shocking to environmentalists, has come in the wake of the Government of India (GoI) decision to look after the affairs of ship recycling industry to the Ministry of Shipping. Currently, the Ministry of Steel is the nodal agency. Significantly, Tayal has sought to oppose the GoI move saying, it would have “”no effect on our business.” Tayal’s organization represents all companies in the business of ship recylcing in Alang and Sosiya. “They must compulsorily be members of the association before they can get permission from the Gujarat Maritime Board to begin cutting”, the site said.

 The industry representative further said, GoI can make “whatever policies they have to make, but they cannot go against the industries either way… When you look at it in terms of pricing, the Ministry of Steel was better equipped for that.” Expressing apprehensions about GoI move, he added, “but the Ministry of Shipping can look into other aspects.”

Quoting environmental experts, the site commented, the decision to make Shipping Ministry responsible for shipbreaking “could save lives”, adding, “This could be a rare chance for the government to reinvent a sector that has little regulation and is notorious for unsafe labour and health practices.” Mridula Chari, the author, insisted, “This could result in the creation of more ship-breaking ports modeled on the lines of the world’s largest ship-breaking centre in Alang, Gujarat.”

The site quotes senior environmentalist Rohit Prajapati to say, “Fires, contamination by such chemicals as asbestos and tributyltin and workers accidents are the biggest problems in Alang today. Pointing out that this was the major reason for the death of five persons cause by explosion due to gas leak on June 28, when the last accident took place, he suggested that the actual figures of death should be much higher than reported.

“Gujarat’s Directorate of Industrial Safety and Health says that 460 people have died since the Alang yard opened in 1983, an average of 15 each year. But activists working in the area estimate that the total number could be 50 times higher, counting the fatalities reported in small local newspapers”, the site says, quoting Prajapati to say, “If you talk to hospitals, officers with the directorate and even doctors off the record, they will admit the reality of the situation.”

But would the new GoI decision to hand over the ship recycling sector to the Ministry of Shipping become an “opportunity for the hazardous shipbreaking sector in India to reinvent itself?” Ravi Agarwal, director of Toxics Link, an NGO that has been working on the issue of toxins in ship recycling since 1992, believes as of today, things are so bad with ti that “there is no clarity on who the owners are, what proper transaction values are, when do clearances come in. It would be much better if all of this is made above board.”

However, Prajapati, who is with the Paryavaran Suraksha Samiti, Vadodara, does not believe the move will benefit the workers. “They are building up a structure where only one department can make point in court of law,” said Prajapati. “Multiple departments can confuse the court, where you might have one department that stands against the industry. Modi had assured the industry that he would do this while campaigning.”

With an annual turnover of over Rs 2,500 crore and approximately 40,000 workers, the site says, “Ships to be scrapped are rammed into the beach at high tide. Once the tide recedes, workers begin to dismantle the ship from front to back. As they remove parts of the ship, they haul the remnants further up the beach, eventually drawing the entire ship in. The largest problem with beaching, apart from the high risk to labour, is that dangerous chemicals often leak into the sea.”

Business is certainly booming. According to data from the association, more ships are being broken at Alang today than ever before.

Source: counterview. 19 October 2014

16 October 2014

CMES sends another ship for scrap:

Dalian: State-owned shipping lines continue to make the most of subsidies on offer from Beijing for scrapping older ships. China Merchants Energy Shipping (CMES) announced today that a single ship arm of the company had signed a ship sale contract with Dalian Shipbuilding Industry Marine Services to sell one 43,400 dwt bulk carrier for RMB11.63m.

The 21.5 years old bulker, Ming Ye, was built by a Japanese shipyard.

CMES has sold several old ships recently. 12 new bulk carriers are scheduled to join the company from the third quarter of 2015.

Source: sino ship news. 15 October 2014

Vietnam Gets Ready to Build Shipbreaking Industry:


The Vietnamese government is introducing a law that is aimed at building the country’s shipbreaking industry amid claims that it will create serious environmental issues. The revised Law on Environmental Protection is due to take effect on January 1, 2015 and it will allow the import of ships intended for demolition.

According to VNS, Duong Thanh An, director of the Department of Policy and Legal Affairs of the Viet Nam Environmental Administration, has stipulated that importers will be required to prepare an application package that includes an environmental protection dossier. The dossier includes a declaration of the actual state of the ship, a written commitment to abide by environmental standards and a copy of the ship yard's certificate of satisfaction of environmental protection conditions. "Environmental damage insurance is also a must," An said.

The country’s maritime administration has indicated that a ship recycling industry would generate high quality input for the local steel industry. In 2012, Vietnam imported around four million tons of scrap steel, mostly from China. Since 2012, the need for steel imports has reportedly increased by 2.5 million due to a number of new steel companies entering the market, says VNS.

The maritime administration’s director Nguyen Nhat says the new law will boost the local economy and create new opportunities for the shipbuilding industry which is experiencing low activity levels at present.

Do Thai Binh, a shipbuilding engineer from HCM City's Marine Science and Technology University argues that the industry would be beneficial to the environment as it involves the re-use of over 95 percent of a ship. However, Binh stresses the importance of the law. "The regulations shouldn't be only those on paper. Recycling enterprises should be inspected carefully to determine how best to deal with toxic waste from the ships," he told VNS.

Professor Pham Ngoc Dang, Vice President of the Viet Nam Association for Environment and Nature Protection, has warned about the threats of toxic wastes such as oil, asbestos and heavy metals like mercury, lead, copper, zinc, aluminium and iron.

Deputy Minister of Transport, Nguyen Van Cong, said that businesses engaging in shipbreaking will have to satisfy all the legal conditions for capacity, experience and environmental protection.

Source:  maritime-executive. 15 October 2014

14 October 2014

China Shipping partners enter $13 billion deal with bank:

A strategic agreement between China Shipping Group and the Industrial and Commercial Bank of China could help the company become more competitive in the container shipping market.

China Shipping Group, which is comprised of China Shipping Development, China Shipping Container Lines and China Shipping Haisheng, will work with the ICBC on nearly all financial moves, including risk management and strategic investments, to advance the companies’ competitiveness. According to SeaTrade Global, the deal is valued at $13 billion.

The Chinese government announced a series of subsidies and new policies that would revive state-run shipping companies in early September. Three weeks later, on Sept. 30, the country doled out $293 million to several shipping companies. Though Cosco Shipping and China Cosco took the lion’s share of those subsidies, $35 million went to China Shipping Development Corp. and an additional $6.5 million was given to CSCL.

The two companies will spend a large portion of that money on ship scrapping, but it is also earmarked for the building of new, more environmentally friendly vessels and various other ship upgrades.

The group of companies also is set to benefit from a partnership with e-commerce giant Alibaba, which tapped the China Shipping Group to set up integrated cross-border logistics platforms to help establish Internet shopping on the mainland.

CSCL, CMA CGM and the United Arab Shipping Co. joined forces in early September to create the Ocean Three Alliance, which would cut unit costs as the three carriers share costs. CSCL is awaiting delivery of five 19,000-TEU-unit ships, which will be the largest container vessels afloat. According to Alphaliner, CSCL is seventh on the top 100 carriers list in terms of TEU capacity, deploying 3.4 percent of the global fleet.

Source: JOC. 13 October 2014