11 May 2008

Shipbreakers paying for shot at government ships:


BROWNSVILLE, Texas — The air tastes like pennies at this gritty port at the southern tip of Texas, where ships' final voyages end and steel is reborn.

Recycling here is big business, on a scale that counts in thousands of tons, not pounds. It's where torch-wielding workers strip ships' decks and cut their hulls for the metal to form new steel that could end up in washing machines or even new ships.

For years the federal government paid the shipbreakers at the Port of Brownsville — the center of the U.S. shipbreaking industry — to dispose of its rusted frigates and tankers.

But soaring scrap metal prices have led these companies to begin paying the federal government for the chance to get ahold of all that valuable steel.

International Shipbreaking Ltd. recently began recycling Adonis, an 18,000-ton tanker built in 1966. The company paid the U.S. Maritime Administration an unprecedented $1.1 million for the privilege, on top of the cost of towing it from the reserve fleet's home in Beaumont, Texas, nearly 700 miles up the Gulf Coast.

"That was directly influenced by the price of scrap," said ISL's chief operating officer, Bob Berry.

The Navy, which also contracts with shipbreakers to dispose of warships, isn't allowed to take money from the companies, but was able to give Esco Marine Inc. a symbolic 1 cent to take the USS Puget Sound off its hands this year.

That means the Puget Sound's metal is expected to more than cover the cost of towing it from Philadelphia and the work of removing hazardous materials, including asbestos and toxic PCBs.

"We're at numbers we've never seen before for iron and steel scrap," said Bob Garino, director of commodities with the Institute of Scrap Recycling Industries. Looking over the last 25 years of prices for the benchmark "No. 1 heavy melt," which in April hit $502.50 per gross ton, Garino said, "there's not even a close second."

Just last year, the average price for the No. 1 heavy melt steel was $254 per gross ton, Garino said. In 2001, when the Maritime Administration was struggling to clear its inventory of ships, the same steel averaged $75 per gross ton.

Sky-high prices for scrap metal are allowing the Maritime Administration to stretch its funding further and recycle more of its ships.


In 2001, the average recycling cost per ton for the Maritime Administration was $253. Last year it fell to $60.

Demand for scrap metal has been a major factor both in dictating what shipbreakers are willing to pay and in drawing more of them into the business domestically. The Maritime Administration has seven certified companies, two of which the Navy shares. When the Maritime Administration started the current program in 2001, there were three.

Four companies' yards are spread around the end of the Brownsville port's 17-mile man-made channel to the Gulf of Mexico. A fifth, Virginia-based company is waiting for its permit to be approved by the U.S. Army Corps of Engineers.

Port of Brownsville, Texas, USA
The Navy had about 200 ships to dispose of in 1997 and now has 15 designated for scrapping. Some others were sunk for training and others to form reefs.

The domestic industry depends heavily on government contracts because commercial owners can dispose of ships more cheaply overseas, where there is little or no regulation. Brownsville's shipbreakers also hope that the Maritime Administration will resume sending its West Coast ships to their port. Environmental concerns about the ships carrying species on their hulls that can wreak havoc on local ecosystems as well as concerns over the lead paint released by attempts to clean them have frozen the ships' movement since early last year.

For years, the Maritime Administration made money for the government selling old ships to be scrapped overseas. But in the 1990s the Environmental Protection Agency decided that doing that violated a ban on the government exporting PCBs, said Maritime Administration spokeswoman Shannon Russell.

That, combined with low prices for steel at the time, led ships to begin piling up, Russell said.

Six ships — two Navy, four Maritime Administration — were in various stages of dismantling recently at Esco Marine. Those farthest along were beached in earthen slips, where winches pulled the remaining hulls into the reach of cutters' torches.

Acrid smoke and sparks blew from the cutting pads. Heavy haulers and cranes rumbled around dirt tracks and a constant jingling emanated from a glistening mountain of metal, where a new shredder reduced smashed cars into fist-sized pieces of metal in 45 seconds.

Esco sells most of its ferrous scrap to steel mills in the United States. It is loaded onto barges and sent to mills in Beaumont, New Orleans, and Mobile, Ala., said company President Richard Jaross.

The high scrap prices have allowed Esco to expand, adding the monstrous shredder last year.

Driving the price higher are a variety of factors including tight supply, a weak dollar, high energy prices and rising raw material costs as well as fierce international competition among countries such as China and Turkey, Garino said. Last year, the United States exported 13.7 million metric tons of ferrous scrap, up 27 percent from the previous year.

Climbing over the Adonis last week, Berry saw value in nearly everything. With a glance at the massive propellor and a quick calculation, he put the prop's estimated scrap value at $125,000.

Jason Glasscock, ISL's environmental and safety program manager, said, "it's hard calling it scrap when it's worth that much money."

Source: The Monitor. By Christopher Sherman. 11 May 2008
http://dieselduck.blogspot.com/2008/05/brownsvilles-shipbreakers.html

25 March 2008

EPA alleges Md. firm illegally exported toxic ship for recycling:

25 March 2008 (Hagerstown, Md.) – The U.S. Environmental Protection Agency says the Maryland-based owner of an old ocean liner with components containing toxic PCBs illegally sent the ship overseas for recycling.

Cumberland-based Global Shipping LLC and an affiliated trading company, Global Marketing Systems Inc., denied the allegations Tuesday. The companies, cited by the EPA as one entity, could face hundreds of thousands of dollars in fines for failing to properly dispose of the chemicals in violation of the Toxic Substances Control Act.

"I don't think as far as we're concerned that any laws have been broken," said Anil Sharma, president of Global Marketing Systems and a shareholder in Global Shipping, which owns the vessel. Global Marketing's primary business is ship recycling, Sharma said.

The case highlights the practice of sending aged ships to "ship breaking" yards in South Asia, where critics say unprotected workers are endangered by exposure to PCBs, asbestos, toxic paint and residual fuels.

Sharma produced copies of U.S. Department of Homeland Security documents showing that the 58-year-old ship, the Oceanic, left the Port of San Francisco for Singapore Feb. 7, accompanied by a tug boat. The documents describe the Oceanic as "scrap" but Sharma said in a telephone interview that no decision has been made about whether it will be dismantled or put to some other use.

He said Global plans to meet next week with EPA officials to discuss the matter. Global has until April 17 to answer the complaint to avoid fines without a hearing, according to the EPA.

The agency's Pacific Southwest region, based in San Francisco, announced the action in a statement March 18.

"Federal law prohibits companies from exporting PCBs, including those in ships, that are sent overseas to be scrapped," said Rich Vaille, the region's associate director for waste program enforcement.

Dean Higuchi, a regional EPA spokesman in Hawaii, said Global failed an obligation to inform the agency of its plan to export the ship for disposal. The agency issues permits for such activities but "our preference would be for them or anyone to clear their ships prior to export," he said.

The EPA said Global bought the ship, formerly called the Independence, from Norwegian Cruise Lines but didn't inform the U.S. Maritime Administration of the sale until after the Oceanic had sailed. Sharma denied that Global withheld the information.

The EPA said ships built in the early 1950s were commonly constructed with PCB-containing cables, electrical equipment, watertight seals and painted surfaces. The United States banned production of those chemicals in 1978 because they can cause cancer in laboratory animals and various health problems in humans.

Sharma said he was unaware of any proof that the ship contains PCBs.

The San Francisco Chronicle reported that the Independence, as the ship was known for most of its life, had a long career as an ocean liner in the Atlantic and the Mediterranean and spent many years sailing out of Honolulu on Hawaiian cruises. The ship was laid up in 2001 and spent seven years at various docks around San Francisco Bay, the newspaper reported.

Sharma, an Indian national and former business professor at nearby Frostburg State University, said he established Global Marketing Systems in 1992 to buy old U.S. Navy ships and sell them to customers in India.

The Basel Action Network, a Seattle-based environmental group, said it tipped off the EPA to the ship's departure in conjunction with the Save the Classic Liners Campaign, which seeks to restore aged ocean liners.

By David Dishneau (Associated Press Writer), Seattle Post Intelligencer.

Source: Basel Action Network (BAN). 25 March 2008

18 March 2008

U.S. EPA files complaint against ship brokers for violations of Toxic Substances Control Act

U.S. EPA Press Release

18 March 2008 (San Francisco) – Today the U.S. Environmental Protection Agency issued a federal complaint against Global Shipping and Global Marketing Systems, Inc. for distribution in commerce and export of PCB-containing materials on the MV Oceanic, formerly the SS Independence, a ship being sent by Global to be scrapped overseas.

Fines against these two companies may be assessed up to $32,500 per violation per day. The MV Pacific Hickory is towing the MV Oceanic to its final destination.

“Federal law prohibits companies from exporting PCBs, including those in ships, that are sent overseas to be scrapped,” said Rich Vaille, Associate Director for waste program enforcement in EPA’s Pacific Southwest region. “When companies illegally export PCB waste, they are circumventing U.S. requirements for proper disposal. PCB waste must be properly disposed to protect public health and the environment.”

Global has 30 days to file an answer to the complaint to avoid a penalty assessment without a hearing.

The EPA was not informed by Global of their intention to export the ship for disposal. The previous owners, Norwegian Cruise Lines, bought the ship through a wholly owned subsidiary with the intent to put it into service in the United States. The paperwork showing that Norwegian Cruise Lines had sold the vessel to Global was not submitted to the Maritime Administration until the ship had already sailed.

Export of PCB materials from the United States is a violation of EPA’s Toxic Substances Control Act. Vessels such as the MV Oceanic, which was built in the early 1950s, were commonly constructed with PCB-containing materials including cables, electrical equipment such as capacitors and transformers, watertight seal material, and painted surfaces.

More than 1.5 billion pounds of PCBs were manufactured in the United States before the EPA banned the production of this chemical class in 1978. PCBs were commonly used in paints, industrial equipment, plastics, and rubber products. EPA banned this class of chemicals after tests showed that PCBs cause cancer in animals and adversely affect the nervous, immune, and endocrine systems in humans.

For more information on PCB regulation and enforcement, as well as enforcement of U.S. laws related to toxic materials in general, please visit: http://www.epa.gov/pcb/pubs/laws.htm.
Or: http://www.epa.gov/Compliance/. For information on PCBs, please visit: http://www.epa.gov/pcb/.

Contact Information: Dean Higuchi, 808-541-2711, higuchi.dean@epa.gov

Source: Basel Action Network. 18 March 2008

15 March 2008

Titanic Junkyard: Alang, Gujarat



Baleshwar, 24, will never walk again. While scrapping a ship at one of the 183 shipbreaking yards at Alang in district Bhavnagar, Gujarat, he fell from a height of 10 metres, suffering multiple fractures in his legs. His one-year tenure at the shipbreaking yard has also left Baleshwar with respiratory complications due to constant exposure to toxic fumes. This is Alang: not just another human tragedy in the morning newspaper, but an environmental nightmare come true.

At this largest shipbreaking yard of the world, nearly 45,000 workers scrap ships that sometimes contain hazardous wastes. According to the Gujarat Maritime Board (GMB), Ahmedabad, it cannibalises about 200 ships each year, churning out 2.6 million tonnes of scrap steel. Alang receives ships from across the world -- even those which are not broken in the country of origin due to several environmental strictures, as shipbreaking involves a large number of dangerous pollutants including toxic wastes, oil, polychlorinated biphenyls (PCBS, which are extremely poisonous chemicals) and heavy metals. But the ships can be scrapped at Alang as environmental guidelines are not followed properly (see below: Send your garbage).

The Basel Action Network (BAN), a coalition of international non-governmental organisations, working in the field of toxic and hazardous wastes, is of the opinion that there is a need for international legislation on shipbreaking. "Ships bound for breaking in another country must necessarily be de-toxified in the territorial waters of the country to which the ship belongs," says an Indian spokesperson for BAN. "What is happening is that Indian waters are the recipients of muck that originates in other countries," he adds. BAN demands that ships destined for breaking be termed as "hazardous wastes" under the Basel Convention.

Map of Alang
Anyone disputing the environmental hazards from the shipbreaking industry needs to visit Alang. The sun is hazed by smoke billowing from gas torches used to cut through the steel by labourers. They dump tonnes of chemicals, heavy metals and other dangerous substances recovered from the ships into the sea. The l0-km coastline is a hellish heap of scrap. 'In our study, we found about 45 tonnes of solid wastes, broken steel pieces, glass wool, foam material and rubber pipes spread haphazardly within the plots each day," says S. S. Bala, zonal officer of the Central Pollution Control Board (CPCB) at Vadodara, who led a study on pollution levels at Alang. The wastes contain hazardous materials like oil, PCBs and heavy metals. It results in severe contamination of the seabed, points out Bala. Heavy metals on the seabed enter the marine food chain, finding their way into the fish eaten by humans.

Why Alang?

Good tides and weak enforcement favour the shipbreaking industry

The geography of Alang makes it ideal for shipbreakng. The beach is low and tides are as high as 10 metres. During low tide the sea recedes by three km. The industry was set up in Alang in 1982, egged by the demand for a safe haven for shipbreaking. By 1990, over 100 ships started landing in Alang each year. In 1996-97, the industry scrapped a record 348 ships. The annual turnover of the industry stands at Rs 6,000 crore. The profit margins in the shipbreaking industry are huge and big-time contractors make umbelievable profits.

According to Mahesh Sampat, customs superindendent at Alang, shipbreakers randed very high among traders from various businesses in Gujarat who disclosed their incomel under Voluntary Disclosure of Income Scheme (VDIS) of the Union government. "Nearly 40 per cent of the metal trade is illegal. The shipbreakers are in constant touch with politicians. Corruption is rampant, and a handful of people have things comfortably in control. If you take any action against them, they will reach the leaders easily," says Sampat.

The results of this nexus are disastrous. Ships that might be carrying toxic wastes, PCBS, solid wastes, oil and other hazardous materials are docked at Alang virtually unchecked. Customs officials ask the captain for a list of materials in the ship on the basis of which it is allowed to be beached. "My department does not have laboratories and other facilities to check whether any toxic material is present in the ship. So our officers largely rely on the captain's version says Sampat. The customs department earns nearly Rs 400 crore as tax and Rs 20 crore as central excise from Alang. "Yet, we do not have adequate staff and facilities to meet the requirements of the industry," he says.

V A Pandey, additional port officer at the Alang Shipbreaking Yard, differs with Sampat. He rules out the possibility that ships carrying toxic wastes have been beached. at Alang. "Whenever such incidents come to our notice, we take appropriate action and do not give permission for beaching the ship," Pandey says. However, the checking process can only prevent the docking of gas-filled ships - even that in only a few of the cases. Besides, there are several loopholes in the system, as is evident from the fires and blasts that occur every few months.

Irrefutable evidence

The GMB, which monitors the shipbreaking industry in Alang, commissioned the Gujarat Ecology Commission (GEC), Vadodara, to conduct a study on the pollution levels in Alang. The Union ministry of steel commissioned Metallurgical and Engineering Consultants (India) Limited (MECON), Ranchi, for another study. Both the studies concluded that pollution has increased considerably in the shipbreaking yard. A host of pollutants, such as asbestos, paint, scrap debris, gaskets, glass wool, oil, grease (petroleum hydrocarbons) and cement, have found their way into the marine environment near Alang, both the reports pointed out.

A team of researchers headed by S. Bandyopadhyay, senior ecologist at the GEC, found high levels of heavy metals like lead, zinc, nickel and tin in the yard. Bandyopadhyay points out that the wiring insulation and paints in several ships contain PCBS. "Paint coating outside and inside a ship is always toxic as it is needed to repel all biological forms from attacking the bottom layer which is in the water all the time," he says. "These anti-fouling agents can adversely affect the environment," he adds.

The CPCB found large amounts of oil in the area where the ships are scrapped during an investigation following a question raised in Parliament. This oil washes into the sea. Tests conducted on the sea water indicated oil and grease concentrations of 22 mg/litre, which is very high according to the CPCB. Labourers say that they take out a significant amount of oil from the ships before scrapping them. Still, some portion of the oil remains in the lower part of the ships. Sand is put in the remaining oil and thrown into the sea. Oil contamination can choke marine life.

The Ship Breakers Association of Alang informed the CPCB that some quantity of solid waste is burnt in the open. Bala says this could be leading to a considerable amount of air pollution from toxic fumes generated by the burning of glass wool and foamy materials. The CPCB estimates that around 250-300 kg of such material is burnt on each plot every day, the rest being disposed on land. A case is pending in the Gujarat High Court to decide who is to provide domestic waste treatment facilities: GMB or the ship breakers. Pandey says that the GMB has engaged a consultant to plan a drainage and sewage treatment system.

Biological oxygen demand (BOD, the minimum amount of oxygen required to decompose organic compounds in water) was found to be unacceptably high in the CPCB study, indicating water contamination with domestic waste. "The amount of organic waste in the sea water near the coast is high. This problem is mainly due to the crowding of labourers living 20-30 metres from the coastline. Due to the absence of proper sanitation, the surrounding area is polluted by domestic waste," says Bandyopadhyay.

'Pathogens which are normally killed after coming into contact with saline water manage to survive in the area. It means that the pollution load is high. If it keeps on increasing at the current pace, the, region may be in for an ecological disaster," warns Bandyopadhyay.

Portents:

Death, disease and indifference of the officials haunt Alang

The living conditions in labourers' settlements are indeed sub-human, admits a government official, asking not to be named. High pollution levels, lack of clean drinking water and cramped living conditions in Alang have badly affected the health of labourers. There is no provision for potable water. "We have to buy drinking water," says Mahesh, 25, who works at plot number 50. The Saurashtra region, which includes Alang, is facing a severe water crisis due to groundwater depletion.

"Groundwater is becoming increasingly saline as people in the area are overdependent on it. The future of drinking water supply in the area is bleak," says A. B. Lowalekar, director of GEC at Vadodara. "The GMB is drawing up plans for a dam project to ensure adequate water supply to the region," says Pandey.

The list of diseases prevalent in workers' settlement is frightening; leprosy, malaria, cholera, respiratory problems, dysentery and tuberculosis are there. GEC researchers found that about

194 of the 20,000 workers at Alang had leprosy. "Nearly eight out of 10,000 Indians suffer from leprosy. If the figures from Alang are to be believed, then the incidence is very high in the area," says Dharam Shaktu, deputy director general (leprosy), Directorate General of Health Services (DGHS), New Delhi.

An inadequate health-care system exists in the form of Alang's one and only hospital set up with an assistance of Rs 250,000 from the GMB. "We do not call it a hospital which does have even an ambulance and one bottle of blood." says Bhadresh Pandiya, medical officer at the hospital. The hospital, which does not even have a x-ray machine, receives hundreds of patients every day.

"Last year, nearly 350 labourers were detected to be suffering from leprosy," says Hitesh Ghohil, physician at the hospital. "The cases may even be higher in the coming days if proper living conditions are not provided to the labourers," he warns. Several workers suffer respiratory problems, which Ghohil attributes to air pollution.

Pandey defends the role OFGMB. "We are conducting leprosy detection camps every month. The GMB ensures that every patient gets free medical treatment,' he says.

Living dangerously:

Death lurks behind every giant sheet of steel peeled off from a ship. Since April 1997, there have been three major fires and explosions in the ships. An oil tanker beached at plot number 48 exploded on April 22, 1997. Workers say that nearly 30 people died, though officials say the toll was 16. The impact was so strong that a 700-tonne steel plate was blown out of the ship's body. Reason: the ship was not gas-free. When workers started cutting the ship's body with the help of gas cutters, it caught fire, blowing off the gas cylinders and creating a massive explosion.

In another accident, Felixcon, a Russian fish factory ship, caught fire. Two people died and 22 were injured. Several labourers were killed due to fires in another fish factory ship at plot number 24, and in a general cargo vessel beached at plot number 24 (R). In the absence of effective fire and safety systems, it takes very long to extinguish even small fires at Alang. "It took nearly 10 days to control the smallest of the three fires," says a shipbreaker on the condition of anonymity. "We do not get time to clean oil from the ships as muqadams (supervisors) order us to start cutting the ship immediately after it is beached. We are helpless, says Mahesh.

One of the shipbreakers sums up the dangers involved in cutting,the ships. "Nearly 300 low-pressure gas cylinders are always kept at every yard in a haphazard manner. These are used for cutting a ship's body. When a new ship is beached, at least 100 gas cylinders are taken inside the ship. Before reaching the yard, these ships carry hydrocarbons such as diesel, furnace oil and lubricating oil that are required to operate the ship till the beaching is completed.

Cutting is started without properly cleaning up the hydrocarbons in the ship. The moment a high-pressure flame comes into contact with these, there is an explosion

"Most of the time, cutting is started without properly cleaning these hydrocarbons. The moment a high-pressure flame comes in contact with hydrocarbon vapour, there is a big blast," he says. The families of most of the workers who die in accidents do not get compensation. Only those enlisted with the insurance department do. Tapan Sen, secretary, Centre for Indian Trade Unions (CITU), New Delhi, says CITU would soon launch major initiatives to protect the cause of labourers at Alang.

Desperately seeking solutions:

Bala says that the CPCB has recommended a common incineration facility at the yard to burn off hazardous wastes. But there are objections. "They are wrong to assume that by incinerating hazardous wastes, the problem would be solved," says a BAN spokesperson. "Communities in the West have realised that incineration only creates a much more insidious danger by releasing dioxins and furans, which are hormone disrupters," he avers. The CPCB has also recommended an organised landfill site for non-toxic solid wastes and installing facilities to isolate oil spills.

The GEC has said in its report that shipbreaking works should be discouraged on-shore. "You can easily dispose off effluents scattered on the land by burning or removing it from the area," observes Bandyopadhyay.

As part of its guidelines, CPCB has chalked out an environment management plan and a disaster management plan. Under the environment management plan, shipbreakers' units will have to obtain permission from the State Pollution Control Board of Gujarat. At the same time, it has also asked the board to monitor transboundary movement of ships at Alang. As per the plans, the board will monitor the levels of hazardous wastes, solid wastes and water pollution.

Pandey defends the role of GMB in checking pollution in Alang. "The GMB has chalked out several plans to ensure that pollution levels do not rise above the critical level. It spent about Rs 35 lakh on the GEC study. We are concerned about these problems," he says. How much? Only time will tell.

End

Send your garbage

Environmental regulations make shipbreaking very difficult in developed countries. So they send them to India.

In a recently published story, a US newspaper, The Baltimore Sun, said that the US may be looking towards South Asian countries -- India, Pakistan and Bangladesh -- to export its obsolete ships laden with asbestos, PCBs, lead, toxic wastes and other hazardous substances. Earlier, US shipping companies and the Navy had been sending their ships to yards in the US itself for scrapping. But workers and environmental groups started suing the ship yards as they were not meeting environmental norms.

US shipbreaking yards lobbied for the government to relax the laws and allow them to send ships to other countries for scrapping. Now, many international companies bypass the regulations in India by reselling the scrapped ships to eager buyers from developing countries. They mint money out of the deal as labour is cheap in developing countries and environmental standards are lax. According to The Baltimore Sun, a naval ship of the World War II era, was bought by a company called Resource International in 1994 for US $200,000 and resold to an Indian shipbreaking firm at a higher price. US law required Resource International to chalk out a technical plan of breaking to ensure worker's safety. But it was meaningless. At Alang, shipbreakers maintain that they have no contact with the US government or Resource International, the paper reports.

Recently, a question was raised in the Indian Parliament that Alang shipbreaking yard had accepted two US ships that carried hazardous wastes. The port officer at Alang had termed the allegations as baseless. However, if customs officials are to be believed the yard may be receiving such ships.

Source: Ban Asbestos Network. Sourced from DOWN TO EARTH. By Manish Tiwari. 15 March 1998

16 February 2008

Premiere of 'Iron Eaters': Speech by the Ambassador of EC to Bangladesh






Premiere of Iron Eaters by Shaheen Dill-Riaz


Venue: Central Public Library, Dhaka,
Date: 15 February 2008






Address by H.E. Dr Stefan Frowein, Ambassador of European Commission to Bangladesh




Ladies and Gentlemen,

I am pleased to have been invited to speak at the premiere of “Iron Eaters” in Bangladesh. This is a film which has, I understand, already met with significant success around the world and received several awards. Shaheen Dill-Riaz and his team are most deserving of this recognition, and I would like to congratulate them on their achievement. Not only have they produced a documentary of a very high artistic quality; they have also put the spotlight on an issue of burning relevance – the industry of shipbreaking and its economic, social and environmental ramifications.

I had the privilege of seeing “Iron Eaters” some time ago and it made a strong impression on me. If the evidence wasn’t right there on the screen it would be hard to imagine that huge ships are dismantled almost, as it were, by hand. The film tells of these migrant workers who, year after year, come to the scrap yards in Chittagong in a desperate search for livelihood. It is an unsentimental portrait of the long hours of hard work that they carry out, for meagre pay and at great risk of accident. Although many, they are powerless to demand better conditions. Yet at the same time the film gives an insight into the companionship among them, their sense of humour and personality, and their longing to return home to their villages in northern Bangladesh. More than anything, the courage of the workers – a courage borne out of desperation, but nevertheless – is striking. Not to speak of the recklessness of the enterprise itself, with men taking on vessels in solid steel, perhaps 20 metres high and weighing thousands of tonnes…

Indeed, ship breaking would be a fascinating industry were it not for the tragic conditions under which it takes place in Bangladesh and similar countries.

In the last few years, Bangladesh has become the world’s leading destination for ships that are to be scrapped at the end of their life. Ship recycling is an important industry for the country: it provides employment to more than 25,000 workers and is a major source of raw material. It is estimated that up to 90% of steel in Bangladesh is derived from ships, which comes to good use in sectors such as construction, and saves the country precious foreign exchange.

Clearly there are also advantages for the countries exporting vessels for scrapping. Shipbreaking is not a profitable industry in Europe, mainly due to the high labour costs compared to developing countries. But unavoidably, ships in Europe and elsewhere have a limited life span – around 30 years – after which they must be taken out of service. Ship recycling provides, in theory, an economically sensible and environmentally friendly solution to the after-life of vessels.

Acknowledging these benefits – real or potential – should not, however, make us turn a blind eye to the harsh realities of ship recycling as it actually takes place. Iron Eaters delivers a critical account especially of the industry’s social impact. It is a known fact that most workers in the scrap yards do not have employment contracts, health or accident insurance. They do not have proper equipment to protect them from accidents; indeed, as can be seen in the film, many of them do not even wear shoes, let alone helmets. Hundreds of workers are estimated to have died in accidents; many more contract irreversible disease from handling and inhaling toxic substances left on the ships.

In addition, shipbreaking causes environmental damage. Most vessels contain hazardous materials such as asbestos, oils and oil sludge, which are simply dumped into the water in the absence of appropriate reception facilities. The resulting pollution is damaging for vegetation and aquatic life in the surrounding areas. 

It is thus the case that shipbreaking, as currently conducted, runs against the idea of sustainable development. 
What are the solutions to this sad state of affairs? 
What could be done in order to retain the benefits of ship recycling while discarding the current, negative practices?

There certainly isn’t any miracle solution, but I would like to briefly share with you some of the European Commission’s thinking around this matter, which was published last year in a green paper, a consultative document, entitled “Better ship dismantling”.

The green paper discusses various measures which could contribute to higher environmental and health and safety standards in ship dismantling. One of these would be better enforcement of the EU ban on export of hazardous waste, ensuring that vessels are not sent abroad for dismantling unless they have been properly “cleaned” first of any toxic substances.

The green paper also underlines the need for binding international standards for ship dismantling. This would establish a level playing field, preventing a “race to the bottom” in terms of social and environmental conditions. In this regard, the European Commission supports actively the work towards a future international convention undertaken within the International Maritime Organisation. The convention could be ready for ratification in 2009 but it will take several years more before it could enter into force.

Another suggestion in the green paper is to scale up technical assistance to ship recycling countries in order to help raise industry standards and encourage better regulation. Needless to say, such assistance will only be effective if destination countries have the political will to enforce standards in local ship dismantling yards.

The green paper contains many other proposals – encouraging voluntary corporate responsibility, setting up a ship dismantling fund, establish a certification system, and so on – that could have a positive impact. Right now the European Commission is analysing the comments it has received on the green paper and will soon be setting out its proposals for further action.

As we know, public opinion drives public policy more effectively than anything else. In this regard, Iron Eaters can make an important contribution to increased discussion and awareness about ship dismantling.

Let us be clear about one thing: Bangladesh would certainly not like to be without this industry, which creates much needed jobs and income for development. But at the same time, I am sure you will agree, not least after seeing this film, increased efforts have to be made to safeguard the interests of workers and the environment. In the end it is a question of reconciling economics with social and environmental principles. I am optimistic that this can be done: Bangladesh can stay competitive as a destination for ship recycling while raising standards to an acceptable level.

Let me also assure you that the European Commission would like to do what we can to help Bangladesh in these efforts. We do acknowledge that we have a responsibility, not least since many of the ships being dismantled in Bangladesh originate in Europe.  I look forward to continued discussion – and concrete action – to address the situation in the shipbreaking industry.

Thank you for your attention.

Workers cutting propeller of a ship with hammers & chisels
Source: 16 February 2008