19 June 2008

Asbestos aboard: Owners or pirates?

LNG carrier Edouard LD owned by Gaz de France and Louis Dreyfus Armateurs is ill-fated to demolition. She is beyond limits. The average age of gas carriers when they are scrapped is 30. The Edouard LD is under French flag. In accordance to the French case-law, the Edouard LD has to be demolished in an Organisation for Economic Co-operation and Development (OECD) country or outside OECD under the condition she would be subjected to a preliminary extraction of asbestos and other dangerous wastes.


Edouard LD lightweight is 28.000 t, with a lot of non ferrous metals. She could be sold at 850 $ per ton at least in Bangladesh. She holds between 800 and 1,000 t of asbestos and asbestos-containing materials. To dodge the French rules, the French owners are considering to sell the Edouard LD to a Greek tanker fleet owner, Dynacom, whose other activity consists in speculative trading of ships to be demolished.

The same device has been used by Gaz de France to sell the Descartes (Cf. « Shipbreaking 2007 », pp 22, 28, 42). This gas carrier was at the end of her tether in the opinion of her past crewmen and other authorized sources. She has been sold for a so-called exploitation as a LNG carrier to Taiwanese owner TMT. The sale occured in August 2007 and the Descartes became Prince Charming under Panamean flag.

Three months later, she was renamed Charm Junior and sold to a Singapore broker specialized in ships at the end of their life and in selling them at the best offered price in Asia. The ex-Descartes is going to be demolished in Bangladesh. She has been sold around 14 millions dollars because of the presence of stainless and non-ferrous metals. Gaz de France is said to have sold the Descartes to TMT at 6-8 millions dollars.

It is too late for a convenient demolition of the ex-Descartes with preliminary extraction of asbestos and others. It is not too late for the Edouard LD. Robin des Bois asks Gaz de France and Louis Dreyfus Armateurs, the two French owners to sell her directly, without a go-between, to a European ship-breaking yard, or an Asian one in the frame of a specific technical and financial partnership.

Moreover, the German company KGAL, subsidiary of Allianz and Dresdner Bank, is always attempting to sell at the best price in Asia the container ships Ankara, Maersk Brisbane and Maersk Barcelona built in 1975-1976 of which the engines implement important quantitie of asbestos. (cf. « Oil slick Queen demolished in Bagladesh ? »)

It is urgent that the European owners establish active partnerships with Asian shipbreaking yards and in the most dangerous cases for work force and environment use the available European sites.

Source: Robin Des Bois. Press Release. 19 June 2008

21 May 2008

Scrapping Ships: is the EU Dumping Toxic Waste?

Hundreds of rusting old ships registered in the European Union end up being dismantled on beaches on the Indian sub-continent - with Bangladesh being a key destination. There, workers brave oil, asbestos, chemicals and heavy metals as they dismantle the ships by hand.

A report to be debated by MEPs Tuesday night in Strasbourg will call for EU-registered ships to be pre-cleaned of hazardous waste before they are sent to poorer countries. It also wants Europe's dismantling industry boosted.

The health impact felt by workers dismantling ships has been well documented with oil and chemicals seen as the most lethal threats. At Alang, India's largest dismantling site, one in 6 of the workers is suffering from asbestosis. The fatal accident rate is said to be 6 times higher than in the Indian mining industry.

More vessels due to be broken up by 2010:

Worldwide about 200-600 ships are dismantled each year, a third of which are registered in the EU. This figure is set to rise as new safety regulations mean that by 2010 around 800 single hull oil tankers will be decommissioned in favour of safer double hull vessels.

As well as calling for vessels to be cleaned, the report on ship dismantling wants an international agreement laying down responsibility for each stage in the dismantling process. It also wants a full list of ships soon to be decommissioned and information on their likely fate. The EU currently has enough capacity to dismantle warships and state owned vessels, with very little left over for merchant ships.

Clémenceau case highlighted concerns:

In 2006 the intended scrapping of the 50 year old French aircraft carrier "Clémenceau" in India had to be reversed after the toxic impact of the vessels led to environmental and legal challenges.

The report, drafted by Johannes Blokland of the Independence and Democracy group, is based on a European Commission Green Paper published in May last year. Ahead of the debate, he said the "EU is partly responsible for existing social and environmental problems" caused by ship dismantling. Watch the full debate Tuesday night live online from Strasbourg.

Source: Marine Link. 21 May 2008

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