03 May 2013

More attention to non-container business along the Western Seaboard

Aggregates, iron ore and ship breaking are among the new proposals

Fracking pops up, followed swiftly by iron ore, aggregates and, to some astonishment, ship breaking. Perhaps the Western Seaboard is after all thinking seriously about moving away from containers, coupled with a hint of purse snatching.

Long Beach is the center of action in the iron ore and aggregates projects. SA Recycling is dancing a jig over increasing demand for iron ore from Asia. “After a year of planning with the Port, SA Recycling loaded and sent its first 50,000-ton shipment of the raw material in late March. If market demand remains strong, SA Recycling could export more than 1 million tons this year,” says the port in a news article.

A sharp rise in the world price is behind the buoyant exports and SA has increased its work force and is getting ready to send more material out, with a potential of 1 million metric tons a year.

Aggregates (bricks, sand and rubble to many of us) are getting more attention in the form of an environmental report on the proposed Eagle Rock facility at Berth 44 on Pier D. Construction is expected to be finished by the end of this year and working at full capacity by 2020. Maximum throughput is 2.75 million tons a year from 35 Panamax vessels and involves 385 truck round-trips a day.

Normally, a snort of derision would greet any port project involving dust and noise that aims to be ready within a year. But the Theory of EIRs comes in –when a report is only 120 pages long, there is a possibility that events will move swiftly. Middle Harbor, TraPac and all the rest are subject to at least 1,000 pages each. The shorter the EIR, the more likely there will be success within the project time frame.

Ship breaking is proposed for the port of Astoria in Washington.   Details so far are sketchy, but a company named as Blue Ocean Environmental in local news reports has approached the port to set up a facility at Tongue Point. Similar projects have been proposed at Astoria before, but have foundered.

The purse snatching? Long Beach says of the iron ore boom, “The commodity has moved through smaller ports in Northern California traditionally, but Long Beach, with its deepwater port, full-service infrastructure and unmatched supply chain network, is ideally positioned to be the West Coast’s most competitive gateway to the market for iron ore. “

Those small ports had better watch out because one of the California Big Two is ready to snatch away their business.

Source: maritime professional. 29 April 2013
http://www.maritimeprofessional.com/Blogs/Martin-Rushmere/April-2013/More-attention-on-non-container-business-along-the.aspx

EU under pressure to toughen ship recycling regulation:

In the Bangladesh port city of Chittagong, activists want the EU to get tough on the booming ship recycling industry that has become notorious for its poor labour and environmental safety records. New EU legislation is already in the making and could be finalised in June.

Negotiators from the European Parliament, Commission and Council are due to meet on Tuesday (7 May) in the first round of talks aimed at hammering out a regulation on the scrapping of old ships – many of which end up in South Asia for dismantling and recycling.

The Bangladesh industry has long been the target of labour rights campaigners and environmental lawyers. Today, business is booming, buoyed by a surplus of ocean-going vessels and home-grown demand for raw materials.

“At the rate ship breaking is going on in the ship-breaking yards, those workers are working like machines, they are dying every day and there are massive explosions, accidents and injuries,” said Muhammad Ali Shahin, the Bangladesh coordinator for the Shipbreaking Platform, a Brussels-based campaign group.

“That’s a very common thing of the industry because there is no safety, no precaution, no training and no care for the workers,” Shahin said in telephone interview from Chittagong, one of the busiest ship dismantling areas in South Asia.

Shahin said as many as 20 workers were killed on the job last year, but the human toll is believed to be much higher because official figures do not count the long-term illnesses suffered by workers handling asbestos and other toxins without safe disposal facilities.

Globally, some 1,300 ocean-going vessels were sent for recycling in 2012, 838 of which ended up in India, Bangladesh and Pakistan. More than 300 originated from EU countries, according to data collected by the Shipbreaking Platform.

Shipping tax divides Parliament

The European Parliament on 18 April approved legislation that would put the EU in line with a global agreement on the safe dismantling of ships, known as the Hong Kong Convention, which was adopted by delegates to the International Maritime Organization (IMO) in 2009 but has not yet been ratified.

The EU regulation would be obligatory for all EU states. It includes a ban on beaching, or parking vessels in coastal areas for dismantling, and requires the EU to monitor overseas facilities handling the recycling of European vessels.

While the overall legislation had overwhelming support in the Parliament, there was a different reception for a proposal to impose a tax on all ships entering EU ports to help finance EU-approved recycling facilities in third countries. The tax, backed by Swedish MEP Carl Schlyter (Greens), was defeated by a narrow vote, 299-292, though the Parliament said the levy should be considered in future.

The differences must now be hammered out by the EU’s three-decisionmaking branches over the next month.

Pressure groups are already lining up, with campaign organisations like the Shipbreaking Platform calling for the restoration of the tax, and the shipping industry pressing for a reversal of some obligations approved by MEPs.

Shippers say battle isn’t over

“The battle is still far from over,” said Simon Bennett, director of external relations for the International Chamber of Shipping in London, which opposes provisions that would allow EU inspections of overseas recycling facilities and the ban on beaching of end-of-life vessels.

The chamber contends that the Hong Kong Convention on ship breaking addresses labour safety and environmental protections and that the legislation approved by MEPs would put the UN ratification process are risks. The convention, if ratified, would be overseen by the International Maritime Organisation, or IMO.

“It would be extremely difficult for the EU members states to ratify the IMO convention” if the EU regulation is approved, Bennett said, adding that China, India and others “would not ratify it if the EU doesn’t and that would mean the end of the IMO convention.”

Bennett said the proposed regulation’s call for monitoring of third-country facilities and the beaching ban would not be acceptable to some of the ship-breaking nations that have already supported the Hong Kong agreement.

“In itself, beaching is not an unacceptable method of recycling ships so long as it complies with the IMO conventions,” Bennett said in a telephone interview.

Fighting for the tax

Faced for years with lawsuits brought by the Environmental Lawyers Association in Dhaka and pressure from other groups, the Bangladesh government in recent years enacted laws to protect coastal areas and the estimated 15,000 to 20,000 people who work in the ship recycling industry.

At the same time, the industry and government say ship recycling not only provides employment, but is a vital source of raw materials, including iron, that are otherwise unavailable in the poor nation of 164 million.

But the Shipbreaking Platform’s Bangladesh coordinator discounts such claims, saying “in fact, they are damaging the environment, killing the workers and they are violating the national and international law.”

Shahin said Bangladesh and other countries engaged in ship dismantling would benefit from European investment in safe facilities for the recycling of ships and disposal of toxic materials.

“The way ship breaking is going on in Bangladesh and India, for instance, they are just breaking the ships on the seashore, and they’re just cutting the ships on the ocean, and all the toxins are going onto the sea and into the environment,” he said.

Shahin’s group is urging governments to require that recycling take place in dry docks are equipped with safety equipment and disposal facilities, and that funds be made available to do so.

“When we say this there is the argument that it’s not possible for a country like Bangladesh to make dockyards to break ships, 50-60 ships at a time. In that case, the European shipping companies who want to send their ships and who want to get rid of their ships, they should finance to build [ship-breaking] facilities in our country.”

Positions:

Patrizia Heidegger, executive director of the Shipbreaking Platform, has accused centre-right politicians in the Parliament of bowing to the shipping industry in killing a fund to improve environmental and working conditions at recycling operations.

“The idea of a fund has been discussed for 15 years at the European level. Let’s face it: the Parliament failed to uphold its own principles and to deliver as promised,” she said in a statement after the parliamentary vote on 18 April. “Last year, one European ship was sent to a substandard beaching yard in South Asia every day. The EU needs to move now if it really wants to hold European shipowners accountable.”

A proposal to impose a tax on all ships entering EU ports to help finance EU-approved recycling facilities in third countries was narrowly defated by the European Parliament on 18 April. The tax, backed by Swedish MEP Carl Schlyter (Greens), was defeated by a narrow vote, 299-292.

"While the EP has voted to put an end to European ships being recklessly scrapped in developing countries in hazardous conditions, this is jeopardized by the failure to adopt a financial mechanism to support it,” Schlyter said in a statement after the vote. “It is very frustrating that a narrow majority succumbed to highly misleading lobbying by the maritime sector, seeking to shirk its responsibilities, and voted down the proposed financial mechanism that would have made safe ship recycling competitive."

End-of-life vessels containing toxic materials or residue and sent abroad for dismantling fall under the Basel Convention, a UN-administered treaty on the disposal and shipment of hazardous waste.

“One of our demands is to ensure that the pre-cleaning of every ship before it starts moving to shipbreaking countries,” said Muhammad Ali Shahin, the Bangladesh coordinator for the Shipbreaking Platform, referring to the Basel treaty.

“We have to ensure that the ships are toxic-free,” he said. “It has to be ensured by the international parties and also the national government. So that means the continuity is there. The last port of the ships also [must] be sure that the toxic waste is removed, and also our national government has to ensure that whatever is coming, it is not bringing any toxic material.”

Next steps:

7 May: First of three anticipated rounds of negotiations on ship recycling legislation between the European Parliament, Commission and Council.
June: Final vote on compromise legislation expected in European Parliament
2020: Anticipated date for International Maritime Organization members to ratify the Hong Kong Convention on ship recycling

Source: euractiv. 3 May 2013
http://www.euractiv.com/sustainability/eu-leaders-pressure-toughen-ship-news-519493

01 May 2013

Firm seeks for UAE to be ship recycler

An Abu Dhabi-based marine contracting company has drawn up plans to make the UAE the world's next ship recycling hub.

Khamis Al Rumaithy (Kare) is looking for a deepwater site in which to construct a facility initially capable of scrapping ships of up to 12,000 tonnes, with scope to expand the operation to include the largest tankers, bulk carriers and container ships.

According to Bob Hawke, Kare's managing director, establishing a ship recycling facility in the region is not only a major commercial opportunity for the UAE, but would cement its ecological credentials and secure the country a seat at the top table in any future global marine environment talks.

"This opportunity has developed out of the region's own demand for steel," said Mr Hawke. "There are smelters in the UAE, Oman, Saudi Arabia and Bahrain. They already consume a massive amount of scrap steel and are looking to expand their capacity. So it makes sense to have a supply of that scrap steel on your doorstep."

India and Bangladesh are the leading ship-scrapping nations. However, nearly all their work, mainly at Alang in the state of Gujarat in western India and Chittagong in Bangladesh, are carried out on beaches, and the pollution arising from the shipbreaking process has caused massive ecological damage.

The other major shipbreaking nations are Turkey and China, where the processes are carried out under strict environmental controls.

"Much of Europe's ships going for recycling are handled in Turkey. In the Far East, the ships tend to go to China," Mr Hawke added. "We are in between, a natural destination for all the tonnage coming out of the Middle East and Africa."

Any project in the UAE would have to be "fully compliant" with all the pending environmental regulations and guidelines being drawn up by the European Union and the United Nations International Maritime Organization, Mr Hawke said, and that would give it a major advantage over the existing Indian and Bangladeshi shipbreakers, who are already falling foul of environmental protection measures.

Crisil Ratings, a subsidiary of Standard & Poor's, says the size of the ship-scrapping market is about to become huge. It estimated last month that more than 55 million tonnes of the 180 million gross tonnage of global shipping capacity existing today is more than 20 years old and will be scrapped in the next two years.

Source: the national. By David Black. 14 April 2013
http://www.thenational.ae/thenationalconversation/industry-insights/shipping/firm-seeks-for-uae-to-be-ship-recycler

Towards cleaner scrapping of old ships

Plenary Session Environment − 18-04-2013 - 14:19 Update

Plans to clean up the scrapping of old ships and ensure the materials are recycled in EU-approved facilities worldwide were backed by Parliament on Thursday. The plenary did not endorse an Environment Committee proposal for a recycling fund financed by a levy, but it did call on the European Commission to propose plans for an incentive-based system before the end of 2015.

The draft regulation aims to reduce the adverse effects of careless scrapping, such as accidents, injuries or damage to human health or the environment, by steering EU-ships towards EU-approved facilities worldwide.

The Environment Committee report, drafted by Carl Schlyter (Greens/EFA, SE) proposed that the scheme be funded by a recycling levy to be imposed on any ship using an EU port, in line with the "polluter pays" principle, so as to steer these ships at the end of their lives into proper recycling facilities.

The plenary opposed the recycling fund levy proposal by a narrow 299 votes to 292, with 21 abstentions. Instead, members adopted an amendment calling on the European Commission to table a legislative proposal before the end of 2015 "for an incentive-based system that would facilitate safe and sound ship recycling".

"While the EP has voted to put an end to European ships being recklessly scrapped in developing countries in hazardous conditions, this is jeopardized by the failure to adopt a financial mechanism to support it. It is very frustrating that a narrow majority succumbed to highly misleading lobbying by the maritime sector, seeking to shirk its responsibilities, and voted down the proposed financial mechanism that would have made safe ship recycling competitive", said Mr Schlyter after the vote.

Mr Schlyter's report was referred back to the Environment Committee even though the amended proposal had been approved by 499 votes to 50 with 55 abstentions.

Hazardous material lists

Member states would be required to ensure that an inventory of hazardous materials is established on board each EU ship. Non-EU ships entering a port or an anchorage of a member state would also have to have a hazardous materials inventory on board. If an inspection shows that the condition of ship does not comply with the inventory, penalties could be imposed.

Penalties

Penalties would be imposed on owners of EU ships that are sold and sent, within twelve months of the sale, for recycling on a beach or in a facility not on the EU list.

Next steps

Parliament's approval of the amended proposal gives Mr Schlyter a mandate to negotiate a first-reading agreement with EU ministers. Discussions are to start in May.

Source: European Parliament / News   
http://www.europarl.europa.eu/news/en/pressroom/content/20130417IPR07423/html/Towards-cleaner-scrapping-of-old-ships