GMS has called upon the European Commission to think carefully before
banning beaching as an option for recycling European ships following the very
positive study visits by a Japanese delegation and representatives from the
Danish Shipping Association (DSA) to shipyards in Alang.
The improvements made by some of the yards have led to a rise in
standards to ensure compliance with the forthcoming Hong Kong Convention. The
DSA is on record as saying in an article on its website that: “We consequently
saw, among other things, workers wearing safety equipment and undergoing
six-monthly routine medical check-ups.
“We also noted that the shipyards were engaged in operations such as
asbestos handling, and regularly compiled reports from water and soil pollution
tests etc. Finally, we were able to personally observe that three of the
shipyards had laid a concrete base beneath the beach to stop seepage of harmful
substances.”
A beaching ban by the European Commission will be counterproductive as it
would discourage improvements in the ship recycling industries of South Asia.
Firstly, it will mean that E.U. flagged ships will be able to be recycled
only in Turkey and China. The Turkish recycling market has a finite capacity
with only 20 small yards and China’s demand for steel from recycled ships
varies greatly year to year. Currently there is little demand in China for
scrap steel and there has not been for about a year and a half. This situation will undoubtedly lead to some
E.U. flagged ships changing flag to register with states where no such ban is
imposed to allow them a realistic choice of recycling destinations.
Secondly, prices will also be severely affected as E.U. registered ships
forced to deal with only Turkish yards could face a collapse in value. Traditionally,
southern Asian prices have been higher by about 40-60 percent than in Turkey
and China due to the higher demand and value for ship steel, machinery,
equipment, spares and ancillary items. Incidentally, most of these items are
re-used; a more environmentally friendly option.
Banning beaching will only discourage other yards in the region from
raising standards, thereby destroying the current ‘virtuous circle’ of
improvements among shipyard owners in Alang.
If all yards in India are excluded from European approval, regardless of
the improvements they have made in their infrastructure and work procedures,
they will have no interest whatsoever to support their government’s
ratification of the Hong Kong Convention.
Finally, and perhaps most importantly, for the European Commission to
base its decision on beaching on secondary data (instead of primary
investigation) is illogical. There is no reasonable justification for the
European Commission to punish its own members without thorough analysis.
So for these reasons GMS urges the Commission to see for themselves the
improvements that have been made by some of the shipyards in Alang and is happy
to extend an open invitation to officials from the Commission, and to officials
from E.U. member states responsible for ship recycling.
“The last visit by officials from the EU was back in 2009 and much has
changed for the better since then. It would be a travesty of justice now that
yard owners in Alang are making huge improvements to working conditions for the
EU to make a decision without seeing for themselves the positive changes made
in the region. GMS would be happy to organize such a visit,” said Dr Anil
Sharma founder and CEO of GMS.
Source: maritime executive. 22 May 2015
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