scrapships

The Institute of Marine Engineering, Science and Technology (UK) BANGLADESH BRANCH Technical Seminar on Safe Recycling of ScrapShips by Engr. Sajid Hussain, MS 24 April 2003 Silverspoon Hotel, Chittagong, Bangladesh HIGHLIGHTS • The issue is not environment versus development, or ecology versus economy. It is how to integrate the two. – UN Sec-Gen Kofi Anan • A ship's death should be prepared for even before its birth! • The shipping industry has hammered out a voluntary code of practice to reduce hazards at the time of scrapping. • BANGLADESH is emerging as the world's top scrapping nation, buying or breaking at least two ships a week. • ILO-IMO-Basel Convention call to merge the various "guidelines". • Green shipbuilding - Green scrapping - Green recycling Shipbreaking background Ships reach at the end of their sailing life after 25-30 years. Withdrawal of such ships and be replaced by new ones is a natural technological and environmentally friendly process. Ships are not srapped but recycled. Recycling is defined by the World Wildlife Fund as "the processing of waste or rubbish back into raw materials so that it can be made into new items. It is undoubtedly beneficial – to the individual, the community and the planet." (Source: WWF-UK Recycling Fact Sheet) About 95 percent of a ship consists of steel. It also contains large amounts of hazardous materials such as heavy metals, tributyle tin (TBT), asbestos, lead paint and Polychlorinated Biphenyls (PCBs). A ship-structure, heading for a graveyard, includes various paint types, particular plastics, oils, refrigerants and chemicals contained within shipboard equipment, and also cargo and operational residues. In the 1970s shipbreaking was concentrated in Europe. The costs of upholding environmental, health and safety standards increased. So the shipping industry moved to poorer Asian states. As a result, at the moment, the main scrapping countries are Bangladesh, India, China and Pakistan. An annual scrapping rate of about 500 vessels/year and 25 million DWT/year may be expected for the world fleet. In a 50 years perspective, the major ship breaking centres have been dominated as shown below: Years 1945-80 1980-88 1988-2002 Main ship scrapping centres USA and Europe Korea, China and Taiwan India, Bangladesh, China and Pakistan The yards in Asia handle 85% of all world-recycling operations. In 2001 the total number of vessels (608) sold for scrap already totalled a figure of 28 m dwt (Source: E.A. Gibson Shipbrokers). The reasons of the growth of the scrap market are twofold. In 1999, the Maltese-flagged oil tanker Erika (a 25 year old single-hull vessel, chartered by oil company TotalFina) collapsed. It leaked more than 10,000 tons of heavy oil, polluting 400 km of coast of Brittany (France). After this accident, the International Maritime Organisation (IMO) decided to phase-out all single-hull oil tankers. This means that roughly 2,200 single-hull oil tankers (over 5,000 dwt) from the 4,000 crude oil tankers and oil products tankers (over 5,000 DWT) will have to be taken out of service EXTRA in the following years, starting from the 1st of January 2003. The other reason for the growth of the scrap market is the increase of the world fleet (>100 gt) during the last decades. In 1960 there were around 15,000 ships with an aggregate dwt of 84 million. In 2002 there are 91,287 ships with an aggregate dwt of about 500 million (Lloyd's Register of Ships 2002). It means a larger tonnage that has to be scrapped off. The ship scrapping dilemma Ship recycling as opposed to Shipbuilding is obviously an integral part of shipping. During 70s it wasn't a matter of concern because of a few ships used to be scrapped. Now there is a new dimension, with growing concern about the environmental and social conditions of the ship disposal facilities, principally in the Indian sub-continent. There have been accusations of infringements of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, and graphic film coverage of unprotected workers in disposal yards dismantling contaminated vessels by hand. The whole issue has become highly charged and the situation is complex. Ship scrapping is a labour intensive industry, and are therefore concentrated where labour costs are low. Unfortunately, underdeveloped countries are better markets for the recyclable materials too. Shipbreaking in Bangladesh Bangladesh is dependent on shipbreaking for its domestic steel requirements. With no domestic metal ore mining, and little raw material sources for industry, the country is hungry for scrap. Bangladeshi Ship recycling industry's supply of scrap iron to the steel mills alone substitutes import of about 1.2 Mtonnes of billets and other raw materials. The total saving for the country runs into millions of dollars. At present, the country's 23 breaking yards spend around $150M importing scrap vessels, employing at least 25,000 workers. 16 km long Fauzdarhat ship-breaking yard is the second largest facility in the world in terms of number of vessels scrapped and the leading breaking yard for large vessels, handling more than half of ships (approx. 10 million DWT) dismantled annually. Greenpeace The shipping industry, in general, is always blamed for not taking into account the burden that the recycling of ships puts on the environment. Greenpeace has created a wide, international focus on how the recycling of ships takes place. The organisation criticises the sites where the ships are scrapped and the methods adopted. And they also criticise the owners of the ships. Greenpeace claims that the owners are not interested in this problem and do not focus on it at all. 'Greenpeace is impatient - too impatient to find solutions, in my view,' says Westfal-Larsen, chairman of the 1 International Chamber of Shipping (ICS). From the shipyards up to the scrapyards - the ICS is focusing on establishing the responsibilities of all concerns. However, Westfal-Larsen emphasizes that the industry must focus on its own concerns and not become involved in countries' internal affairs. 2nd Global Ship Recycling Summit 2001 During the Summit a large number of issues has been discussed and it has become clear to all the participants that the issues are complex, but not impossible to solve. The complexity is increased by the fact that the issues confronting the ship recycling industry have to be addressed by the world maritime community, together with the land-based industries dealing with the shipbreaking yards, including the occupational health and safety aspects, as well as the environmental aspects. Ship recycling is an integral part of its life cycle. Ship recycling is related with some land based industries. A long term solution may be under an international legal framework i.e. a convention. It may take up to ten years; meantime a voluntary code of conduct could be used. Such international legal framework may formulate combining IMO, ILO and Basel Convention (UNEP). A Code of Conduct on Ship Recycling could be drawn up as a first step. The shipowners, shipbreakers, labour and environmental organizations, should take the initiative for such a Code of Conduct, which could become the precursor of an International Convention on Ship Recycling. Ships should be designed in such a way that they can be recycled easily. Ship recycling code launched Standard practice for ship recycling aims to promote a greater awareness among shipowners. We should not expect that, overnight, our ship recycling practices will universally meet the set standards. If we excessively target the recycling yards, scrap-ship owners may find some illicit ways of disposal i.e. sinking in the oceans! The International Chamber of Shipping (ICS) has launched the ambitious 'Industry code of practice on ship recycling' in August 2001. It has taken into account of the available technical guidance on ship recycling such as the DNV or the US EPA Guidelines. The code's contents have been drafted and approved by an interindustry working party, comprising ICS, Bimco, Intercargo, Intertanko, International Transport Workers' Federation (ITF), Oil Companies' International Marine Forum (OCIMF) and International Tanker Owners' Pollution Federation (ITOPF) and observers from European Community Shipowners' Associations (ECSA) and International Association of Classification Societies (IACS)). ICS is keen to stress that this launch is intended to raise awareness and put gradual but constant pressure on scrapyards. Industry Code of Practice on Ship Recycling The Code outlines the procedures followed in selling a vessel for recycling, giving a framework of 'good practice' for the industry and the individual owners. Furthermore, the Code calls on shipowners to minimise any potentially hazardous substances on board and to make an inventory of those that remain. Recognising that the biggest single safety issue is the explosion risk from non gasfreed tanks when vessels are being dismantled, the Code of Practice calls on all ships to be delivered to recycling yards with their tanks cleaned and certified to full hot work and entry standards. It also calls on the sellers of vessels to the yards to look at the alternative of towing a completely clean vessel to a recycling yard against driving it onto a beach. One particular task in the coming months will be to persuade shipyards to provide, as the Code recommends, a 'green passport' with every new ship. The passport will list the materials used in the construction of the ship, will be carried by the ship throughout its working life and updated as necessary and finally be delivered to the recycling yard. The voluntary 'Industry Code of Practice on Ship Recycling', will encourage shipping companies to take immediate steps to improve environmental conditions aboard vessels, both during their operating life and on delivery for dismantling. ILO Initiative The ILO will hold a tripartite meeting with selected Government, Employer and Worker delegates invited from Bangladesh, China, India, Pakistan and Turkey along with technical specialists from major ship owning countries, observers and international agencies. The meeting will be held in Bangkok (20 - 27 May, 2003) to review, revise and adopt "Technical Guidelines on a step-by-step approach towards safe shipbreaking". IMO's action IMO plays a major role in international shipping. On behalf of the UN, IMO has a responsibility in the field of international shipping that extends to cover all the phases of a ship's life - including its scrapping and recycling. The rules and routines safeguarding the workers, and requirements protecting the natural environment surrounding the yards, are up to each individual country. However, IMO, together with shipping companies, classification societies and the shipbuilding industry has 2 shown due interest and has taken initiatives to ensure that a ship's path to its final end is better arranged. A correspondence group was formed in 2000 chaired by Bangladesh. It prepared a report for MEPC 46 session of 2001. The ship's design and construction must take into account how dismantling and recycling can be carried out. Ships are to maintain a high safety and environmental protection standard – more particularly during their final years. It is a poorly kept secret that some notso-serious shipowners buy and sell old, rundown ships in order to exploit the ships' market opportunities and to avoid meeting regulations. Forthcoming IMO Guidelines IMO is now working on developing its own 'international guidelines', basing on the 'Industry Code', in co-operation with the International Labour Organization and the secretariat of the Basel Convention on the Transboundary Movement of Hazardous Wastes i.e. merging all. Informatively, 6th meeting of the Conference of the Parties (COP-6) to the Basel Convention was held in Geneva in 9-14 December 2002. The IMO Code will seek to persuade companies to take basic measures such as identification and recording of potentially hazardous materials inherent in the construction of their vessels, or used in their equipment and machinery, and pass on that data (Green Passport) to subsequent owners. Similarly, they will be asked to minimise the amount of hazardous materials on board, including those carried as stores. More specifically, the code will urge companies ensure that ships reach breaking yards carrying only the bare minimum quantities of oils and chemicals necessary for safe operation. In this end, the industry working-party has revised the standard contract of sale covering the sale of ships for recycling: Bimco's Salescrap 87. The draft IMO Guidelines was discussed in detail at the MEPC 48 in October 2002; the final draft will be presented at the coming 23rd Assembly in November 2003. The guidelines contain a set of technical guidelines aimed at promoting improved environmental standards at breaking yards that needs to be implemented within the next five years, recommendation for implementation within a year of steps to promote personnel safety and worker training programmes and the breakers are urged to establish environmental management systems within five years. These medium term measures focus on the need for governments to consider carefully local environmental conditions before allowing the establishment of new breaking yards or the expansion of existing ones. The group's long-term recommendations call for the adoption of a certification system for yards within a decade. The proposed system would require breaking yards to install infrastructure that would include impermeable floors, asbestos decontamination units, landfills and wastewater treatment facilities. Ongoing ship scrapping upgrade initiatives Following the focus upon the industry and the attention given by media in the OECD area, various initiatives have been established. Some of these are listed below: • • • • • P&O Nedloyd has recently entered into an agreement with the Chinese shipbreaking yard Xiagang Shipbreaking Company to provide funding for modernisation to upgrade safety and environmental aspects of the operation. Under the agreement, P&O Nedloyd will provide the latest safety equipment for removing hazardous materials, training of workers and subcontractors on safety and environmental issues and full information on possible hazardous materials used in ship construction. Development of a modern breaking facility in Pipanay, India in co-operation with Indian breakers and a Japanese consortium. This project comprises 2 large docks and will have a capacity of demolishing 8 VLCCs annually. An Australian initiative with support from European financial institutions led by Australian Steel is planning a modern scrapping facility. However, a number of potential sites have been assessed but rejected. The group is also considering European sites. The planning of a modern facility is underway in the Philippines. The parties involved are not revealed and details concerning this initiative are not available. Offshore decommissioning sites are established in Europe. These may also provide capacity for the ship scrapping demand. Social implications of removing the scrapping industry from the existing locations would be impractical as they generate employment and revenue for the local economy. The sustainability of any proposed changes to these operations would have to take into account the effect of balancing the environmental, social and economic issues. Both the MEPC and the shipping industry working party have extended the chain of responsibility for conditions at breaking yards to naval architects and ship builders. Architects and builders will be requiring using materials that can be safely recycled and minimise the use of hazardous and composite materials. The major environmental concern is lack of containment facilities to prevent pollutants from entering water, ground and air in addition to the direct exposure of workers. Most all Chinese breaking facilities 3 offer the demolition process to be undertaken without beaching the vessel. This obviously imposes a lesser burden on the environment and allows the process to be monitored to a higher level. Conclusion Breaking, scrapping, demolition, decommissioning or recycling – all keep our shipping clean. Following recycling of ships, nothing goes to waste. Almost all the materials, machinery and equipment are reused. Steels reprocessed to be the reinforcing rod, corner casting or hinge. Electric generators and batteries are reused ashore. Hydrocarbons reclaimed oil products (fuel) for rolling mills or brick kilns. Furniture, light fittings and decoration pieces find their suitable new places. New steel production from recycled steel needs only a third of the energy of that is needed from raw materials. Recycling makes a remarkable contribution to the global conservation of energy and resources. Above all, it provides a huge number of employments. If handled properly, ship recycling is, undoubtedly, a GREEN industry. Engr. SAJID HUSSAIN Class 1 Marine Engineer (UK), MS (Sweden) Chief Engineer, Marine Academy, Bangladesh Maritime Expert/Consultant (IMO) Ex-Hon. Asst. Secretary (1994-96), Bangladesh branch of IMarE (UK) General Secretary, WAAB (WMU Alumni Association of Bangladesh) Sources/References: • DNV Website (www.dnv.com) and the DNV Ship Decommissioning Guidelines • DNV FORUM No.3 (Reaching the breaking point, and 'No compromise' on ship safety by P W Richardsen) • Industry Code of Practice on Ship Recycling • US Environment Protection Agency Guidelines for Ship Recycling • http://www.epa.gov/oeca/fedfac/fflex.html • Recycling of ships at IMO Website (www.imo.org) and IMO News (2/2000, 2/2002, 4/2002) • ICS Annual Review (1999-2000, 2000-2001, 2001-2002) • COP-6 of Basel Convention in Geneva, 9-14 December, 2002 • US Dept. of Labor – Occupational Safety and Health Administration (OSHA) Fact Sheet (Shipbreaking) • ILO SafeWork Shipbreaking website (http://www-ilo-mirror.cornell.edu/public/english/protection/safework/index.htm) • ILO Discussion Paper: 'Is there a decent way to break up ships?' by Paul J. Bailey, ILO Expert • The Magazine of the ILO: WORLD OF WORK, No. 37, December 2000 (Globalization’s downside – From shipyard to graveyard: Is there a decent way to break ships?) About the author After graduating from Marine Academy in 1980, he had served on-board BSC ships from Cadet Engineer to Chief Engineer till 1993. Since then he is teaching in the Marine Academy and since 1995 as its Chief Engineer (Head of Engineering Dept). He achieved his Class ONE Marine Engineer Certificate of Competency from UK in 1989 and MS (Maritime Safety Administration – Marine Engineering) Degree from World Maritime University, Sweden in 1998. He is actively attached with the Bangladesh Branch of the Inst. of Marine Engineers (UK) since its inception in 1989. He performed as the Honorary Assistant Secretary of this branch from 1994 to 1996. He has presented, so far, 5 technical papers in various IMarE/IMarEST seminars. He is a maritime expert/consultant of IMO; nominated in 1999. He is also an amateur writer of computer technology, maritime affairs, sea-life and literature as well. His publications include 4 books ('Computer: Janar ache anek kichu', 'Esho Computer Rajjey', 'AutoCAD 2002 – Hatekhari', and 'Ekattorer Prometheus') and over 100 features. His contact: sajid@abnetbd.com or 031-611535 4