24 September 2016

Nitin Gadkari wants Alang shipyard type model for recycling automobiles:

Can the Alang shipyard model of dismantling ships from around the world, and becoming a global centre for ship-breaking and ship-recycling, be replicated for recycling automobiles.

A vehicle-scrapping plan is being proposed by the government for 15-year-old heavy and medium commercial vehicles, as it would not only boost growth of the Indian automotive industry with renewed demand, but would also help the generation of raw materials for the industry, Gadkari said.  (PTI)
A vehicle-scrapping plan is being proposed by the government for 15-year-old heavy and medium commercial vehicles, as it would not only boost growth of the Indian automotive industry with renewed demand, but would also help the generation of raw materials for the industry, Gadkari said. (PTI)
Can the Alang shipyard model of dismantling ships from around the world, and becoming a global centre for ship-breaking and ship-recycling, be replicated for recycling automobiles? Nitin Gadkari, Union minister, MoRTH (ministry of road transport and highways) and shipping, urged industry to set up vehicle recycling businesses along the coast of the country, with port connectivity, to create an ecosystem for dismantling old vehicles and recovering precious metals. These players could not only recycle automobiles from India but also accept vehicles for recycling from across the world, he suggested.

A vehicle-scrapping plan is being proposed by the government for 15-year-old heavy and medium commercial vehicles, as it would not only boost growth of the Indian automotive industry with renewed demand, but would also help the generation of raw materials for the industry, Gadkari said. Recycling of aluminium, copper, steel and plastic will enable automotive companies to get raw materials at a cheaper price and improve their competitiveness in the market, he said. Industry is currently importing these raw materials at a higher price. These imports could be reduced and foreign exchange conserved, he pointed out. The minister was speaking at the AGM of the Mahratta Chamber of Commerce, Industries & Agriculture in Pune on Friday.

Gadkari said those scrapping old vehicles will get tax exemption from both the central and the state governments.

Source: financial express. 24 September 2016

GMS: One Step Closer to Ratification of the Hong Kong Convention

Denmark’s recent decision to move ahead with the ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) in Spring 2017, brings the legislation one step closer to implementation. On the announcement of this encouraging news Dr Anil Sharma, President and CEO of GMS, the world’s largest buyer of ships for recycling, commented:

“Denmark’s steps towards the ratification of the HKC is a clear endorsement of the growing international support for the principle that the industry should work to improve the safety and environmental standards at ship recycling yards, wherever in the world they may be. The standards laid out in the HKC and its guidelines are enabling the industry to achieve sustainable goals for ship recycling. Importantly, the market is beginning to hold companies accountable for out-dated procedures. There is increasing momentum towards voluntary Statements of Compliance in line with the HKC and more owners are now opting for green ship recycling when vessels are sold.”

“Denmark’s support of the HKC is of significant importance. It will have an enormous impact globally on the sustainability of ship recycling and, consequently, on the lives and conditions of shipyard workers. GMS has always supported safe and environmentally sound ship recycling becoming the norm, rather than the exception and the entry into force of the HKC will ensure this happens.

“As the HKC progresses towards enforcement, the European Union’s Ship Recycling Regulation is also entering a critical stage, as a decision is awaited for the yards in Alang holding Statements of Compliance with the HKC whether they should be included on the list of EU approved recycling yards.

“These yards have proven that they meet the high safety and environmental standards laid out in the HKC through significant investment, training and development within the region. Excluding these yards would create an insurmountable divide within the industry based solely on their geographic location, and threaten to halt the positive progress made by the HKC in South Asia.

“Denmark’s decision to move towards the ratification the HKC shows a growing international support for sustainable recycling across the globe. We hope that other countries will follow Denmark’s example through ratification and vocal support for its high standards and principles.”

Source: Hellenic shipping news. 20 September 2016

Panama accedes to ship recycling convention

The International Maritime Organization’s effort to implement new international regulations intended to the promote safe and environmentally sound ship recycling received a major boost this week with ratification by the world’s largest largest flag state.

On Monday Panama became the fifth IMO Member State to accede to the IMO’s Hong Kong International Convention for the Safe and Environmental Sound Recycling of Ships (Hong Kong Convention), which is aimed at ensuring that ships sent for scrap do not pose a risk to human health and safety or to the environment.

The Hong Kong Convention addresses issues related to ship recycling by creating a set of standards covering the handling of hazardous materials, the design and construction of ships, recycling facilities, and the preparation of ships sent for scrap. Adopted in 2009, the Convention won’t enter into force until ratification by 15 States representing no less than 40% of the world fleet’s tonnage.

With it’s open system, Panama manages the world’s largest ship registry, registering over 8,000 vessels representing a combined 218 million GT, or approximately 18% of the world merchant fleet.

Prior to Panama, the Hong Kong Convention had only been ratified by Norway, Congo, France and Belgium, making for a little over 2% of the world’s tonnage, according to the IMO.

Last week Denmark also pledged to ratify the convention in Spring 2017.

Shipbreaking Yards

The Hong Kong Convention is also pushing scrap yards to upgrade facilities to comply with its standards. There are even a number of yards now in Alang, India, a shipbreaking hub notoriously known for its poor conditions and polluting practices, that have received Statements of Compliance with the Hong Kong Convention. The improving conditions have even prompted the world’s largest shipping company, Maersk Line, to return to Alang where the company says it can save it can save $1 to $2 million in recycling costs per ship and help quality yards improve even further.

According to the NGO Shipbreaking Platform, a critic of Alang and unsafe ship breaking practices, 60% of 768 ships sold for scrap in 2015 were broken up along the shores of India, Pakistan and Bangladesh, where the controversial practice of beaching is still used.

By the end of 2016, the European Union is expected to decide whether or not to include Southeast Asian yards on a list of approved facilities that comply with sustainable recycling practices for EU-flagged ships. The EU law currently is expected to favor facilities in places like Turkey and China.

The NGO Shipbreaking Platform has been critical of ship owners, including Danish-based Maersk Line, for using ‘flags of convenience’, i.e. Panama, in order to bypass EU law.

“As the HKC progresses towards enforcement, the European Union’s Ship Recycling Regulation is also entering a critical stage, as a decision is awaited for the yards in Alang holding Statements of Compliance with the HKC whether they should be included on the list of EU approved recycling yards,” commented Dr Anil Sharma, President and CEO of GMS, the world’s largest buyer of ships for recycling and proponent of safe ship recycling in Alang.

“These yards have proven that they meet the high safety and environmental standards laid out in the HKC through significant investment, training and development within the region. Excluding these yards would create an insurmountable divide within the industry based solely on their geographic location, and threaten to halt the positive progress made by the HKC in South Asia,” Dr. Sharma added.

Source: gcaptain. 20 September 2016

Gujarat maritime sector to get over Rs 400 cr aid: MoS Mandaviya

The minister said that the Alang ship breaking yard was being developed into a "green" ship breaking yard to help it handle old Naval ships and even hazardous vessels.

The Narendra Modi government will be providing financial assistance to the tune of over Rs 404 crores for a host of maritime projects in Gujarat, including the delayed Ghogha-Dahej Ro-Ro project, two fishing harbour and sprucing up infrastructure at the Alang ship breaking yard, said Mansukh Mandaviya, Union Minister of State for Shipping, Chemical & Fertilizers and Road Transport & Highways, during his visit to Gujarat on Thursday.

“We are expecting to begin Ro-Ro ferry service between Gogha and Dahej by mid-2017. For this the Centre will provide an assistance of Rs 117 crore which will be used for dredging,” the minister said after his meeting with officials of Gujarat Maritime Board (GMB) at Gandhinagar. The Ro-Ro Ferry Service proposes to the Gulf of Khambhat by linking Ghogha in Bhavanagar district with Dahej in Bharuch district. Narendra Modi had laid the foundation stone of the project in January 2012 as the chief minister of the state.

“A Rs 200 crore Workers Welfare Fund will also be used to build hostels and hospitals at Alang,” the minister said adding that the Alang ship breaking yard was being developed into a “green” ship breaking yard to help it handle old Naval ships and even hazardous vessels.

Talking about the projects that has been given clearance by the Modi government, Mandaviya talked about setting up of a marine shipbuilding yard near Bhavnagar. “Under the Sagarmala project, a new road linking Alang-Mandva-Mithivirdi-Hathan-Bhavnagar will also be built,” he said.

“We will also be providing Rs 50 crore of financial assistance in developing fishing harbour at Veraval and Mangrol. Another Rs 37 crore will be given for building new berths for coastal cargo and passenger services at Porbandar,” Mandaviya told in his interaction with media persons.

50-50 partnership on SRP battalion for GMB ports
The minister said that his ministry was still considering GMB’s proposal to raise a SRP battalion for guarding minor ports in Gujarat. “The state government and the Central government might share the cost of this project (Rs 350 crore),” Mandaviya said.

GMB aims at handling 360 MTPA cargo
He also said the minor ports under GMB have targeted to handle 360 MTPA (million tonnes per annum) of cargo for 2016-17 fiscal. Last year the minor ports in Gujarat handled about 340 MMT of cargo.

Source: indian express. 23 September 2016

19 September 2016

10-year-old boxship sent for scrap

The Viktoria Wulff becomes the youngest boxship to date this year to have been sent for scrap. Just 10-years-old, the 4,546 teu panamax is owned by Erste RHW Schiffahrts and flagged with Liberia.

Panamax boxships have been sent en masse for scrapping this year as rates for this ship size in particular have faded away. Prior to the Viktoria Wulff, the youngest boxships sent for recycling this year had been 13 years-old. Clarksons Research shows the German owner managed to gain a very decent $303 per ldt for the ship scrapping.

“This is surprising as the Eid holidays have meant that it has been a very quiet week in the ship recycling sector. However, the signs have been there for a while, as the lack of tonnage started to push rates up and we have been moving towards a scenario where yards have emptied and are open across the board in the Indian Sub-Continent. This would help create healthy competition once again, which can only benefit owners,” Clarkson Research said in its latest weekly report.

The broking outfit also noted that another 13-year-old vessel, the Hang Jun 5, owned by another German owner, Hammonia Reederei, was also sold for recycling last week.

Source: splash 24/7. 19 September 2016