26 March 2017

Could two more navy vessels be heading our way?

qa-25032017-preserver.jpg

LIVERPOOL - The federal government has issued two new public tenders for the ship breaking and disposal of former navy ships – and these ones are close by.

The former HMCS Preserver and the CFAV Quest are located in the Halifax dockyard.

R.J. MacIsaac Ltd. of Antigonish has set up a shipbreaking yard in Liverpool.

So far, the company has been awarded the tenders for the last three naval vessels to be recycled.

The former Protecteur, Iroquois, and Algonquin  were taken to Liverpool from British Columbia as part of a contract worth about $50 million.

According the federal government’s tender document, the Department of National Defence has a requirement dispose of the former HMCS Preserver, a Protecteur-class auxiliary oil replenishment ship, and the former CFAV QUEST, an Auxiliary General Oceanographic Research/Oceanographic Research Ship.

The contractor will be required to prepare the ships for transfer, transfer each to the approved sites, demilitarize the controlled goods, return any museum material, and subsequently dismantle, dispose and recycle the vessels.

The tender will close on April 26.

According to the document, work must be completed on both vessels within 18 months of the contract being awarded. 

R.J. MacIsaac has not commented  on whether it plans to bid on the vessels.

Source: the advance. 25 March 2017

20 March 2017

Navy can’t even give away two old ships because it would cost too much to remove hazardous materials

HMCS Algonquin sits in port with significant damage to her port side hangar at CFB Esquimalt, B.C. on September 1, 2013 following a collision with the HMCS Protecteur. She's now one of four retired veteran ships.

The Royal Canadian Navy considered giving a destroyer and supply ship to another nation instead of scrapping them, but had to nix the idea when it realized how costly it would be to remove hazardous materials from the vessels.

HMCS Protecteur and HMCS Algonquin, both decommissioned in 2015, were considered for donation, according to documents obtained by the Ottawa Citizen. But to move ahead with that plan would have required that the government spend more than $10 million on each vessel to remove all polychlorinated biphenyls, or PCBs.

Instead of spending the $20 million, the decision was made to send the vessels to the scrap heap.

Public Services and Procurement Canada has just put out a new request for bids for the disposal of the former HMCS Preserver, a supply ship, and the former CFAV Quest, a research ship used by the Department of National Defence. Those bids are required by April 26.

But the 2015 disposal documents prepared for HMCS Protecteur and HMCS Algonquin outline the limitations of what can be done with surplus navy vessels.

THE CANADIAN PRESS/Chad Hipolito

The Royal Canadian Navy considered either giving HMCS Algonquin to another nation or donating it to a museum or similar outlet. “A gratuitous transfer to another nation was considered and deemed not to be a viable option due to numerous hazardous materials embedded through the ship, such as polychlorinated biphenyls,” said the navy planning records, obtained by the Citizen through the Access to Information law.

PCBs were in HMCS Algonquin’s cabling and insulation. Because of international rules on PCBs, the material would have to be removed from the vessel before it could be transferred to another nation, according to the navy.

“(The ship’s) only value is for recycling of her metal,” the navy documents stated, adding that the government would receive $400,000 to $600,000 for the scrap metal.

HMCS Protecteur, commissioned in 1969 and damaged by a major fire in 2014, also had PCBs on board and faced similar issues.

The Navy also decided against donating the ships to non-profit groups or museums. That was deemed to be “the most risky and costly option” to the federal government since not only did the military have to remove hazardous materials but would still have a degree of responsibility over the vessels.

“If (Protecteur) is to be displayed alongside a given jetty and poor maintenance results in the ship sinking, the Navy will likely have to assist financially or physically in the recovery of the ship,” the navy warned.

The disposal documents also pointed to past problems. HMCS Fraser was transferred to a private organization in 1998 but legal and other issues forced the navy to buy the ship back. It was eventually dismantled in 2011.

During the disposal of the former HMCS Annapolis, the navy had to pay $1 million to remove PCBs. It was then sold for $20,000 and was used as an artificial reef, according to the navy documents.

The submarine Onondaga was transferred to a museum but, after the boat rolled on its side, the navy had to send a team of experts to deal with the problem. During that 2008 operation, a navy diver narrowly escaped being crushed, the documents point out.

Source: national post. 19 March 2017

Russia will subside ship recycling and boost shipbuilding

Russia will subside the ship recycling to recover part of the cost of acquiring or building new merchant vessels. For the current year, the government will allocate 400 million rubles and the measure will last until 2030. The Russian Ministry of Industry and Trade plans to consolidate the requirements for the priority placement of orders for the construction of ships at domestic shipyards, which will boost the local sector and expected to start benefiting the economy from 2020, as the measure is good only with the full technical modernization of domestic enterprises and need technical period for modernization of the yards.

“The Ministry of Industry and Trade has developed a ship recycling grant in the form of subsidies to organizations to recover part of the cost of acquiring or building new merchant vessels in exchange for ships that have been scrapped. This year, the planned subsidy is 400 million rubles. Financing of the ship recycling grant will last until 2030”, said the Russian Industry and Trade Minister, Denis Manturov.

The Russian government also plans to boost shipping industry in the country, as the coastal transportation within Russian territorial waters should be carried out only under the Russian flag vessel and ships built at Russian shipyards.

Source: maritime herald. 19 March 2017

Ship for scrap triggers green concerns

Officials say all statutory environmental rules, directives will be complied with


Every time a ship for scrap reaches the Steel Industries Kerala Ltd. (SILK) unit at Azhikkal here, there are apprehensions about environmental pollution.

And it is not likely to be any different this time when a 1,300-tonne cargo ship has been brought to the public sector vessel dismantling unit located on the bank of the Valapattanam river, if the concerns aired in a section of the media are any indication.

The cargo vessel from Male reached the SILK unit here recently for dismantling.

SILK officials have said all statutory environmental rules and directives will be complied with before the work for dismantling the vessel starts.

They said that this was the first vessel brought at the unit for breaking after completion of the ship-breaking activities amid protests by an action committee of local residents and environmental activists a few years ago. They had then demanded its closure saying that the ship-for-scrap work causes environmental and health hazards.

When contacted, SILK Managing Director J. Chandrabose told The Hindu over the phone that all statutory rules and directives from the Pollution Control Board will be complied with before the breaking starts. The dismantling work will be done in the workshop of the unit with roofing and concrete floor as required under the rules, he said adding that concrete flooring ensures that not a single drop of oil or grease from the ship reaches the waters.

The Azhikkal unit of SILK had been started for building boats as well as breaking vessels for generating steel required for recycling.

The public sector company is said to be running on accumulated loss, though the Azhikkal unit is surviving with orders for ship for scrap.

The latest order for dismantling coincides with the attempts to secure an order from the Kerala State Water Transport Corporation for building passenger boats. The SILK officials confided that the order is now at the stage of tendering.

The unit can stay afloat if it gets three or four vessels for dismantling every year, they said. Ship breaking is also for reuse of iron used in ships, they added.

All licences

N. Mohammed, senior manager of the SILK, said the unit has all the licences from the Pollution Control Board and the local panchayat for carrying out its operations.

Source: the hindu. 17 March 2017

Please, Get Real with Ship Recycling


Last week five European ship recycling yards announced that they signed an agreement that establishes the European Ship Recyclers Group (ESR). In its statement ESR said: “Our first target is to create awareness of the recycling capacity in Europe which today is over a million ton. We have to ensure that our member yards are on the top of the ship-owners’ list for dismantling their ships. Our message is a clear one. If we can handle them let’s keep the E.U. flagged ships in Europe.”

Furthermore, the Group says that it aims to speak with one voice to the European Commission, which is responsible for the implementation of the new E.U. Ship Recycling Regulation, and to unite all European recycling.

The day following the establishment of ESR, the NGO Shipbreaking Platform issued an announcement: (1) welcoming this initiative; (2) alleging that ship owners are rejecting European recyclers under the false pretext that there is no recycling capacity in Europe; (3) reaffirming ESR’s claim that the European Union yards have a combined capacity of 1.1 million LDT; (4) stating that almost all European yards had said to the Platform that, if they would be promised an increased market share of the commercially owned vessels, they would invest to enlarge their facilities; and (5) calling for European legislation to oblige all ships visiting European ports to pay a Ship Recycling Licence to finance the closing of the price gap with South Asia.

It is understandable that European ship recyclers wish to maximize any opportunity that the European Ship Recycling Regulation may offer them. However, I think that the new organisation is getting carried away with its own marketing and the views of the Platform.

The starting point for understanding the market for the recycling of commercial ships is to study the scrap steel market. The European Union has been the largest net exporter of scrap steel in the world, having overtaken the U.S., which is currently the second largest net exporter.

Seen in this light, the idea of recycling ships for their steel in Europe (or in the U.S.), in order to export ferrous scrap to Turkey1 (which is the destination of 58.8 percent of E.U.’s scrap steel exports in 2015), to India (10.4 percent of E.U.’s exports) and to Pakistan (7.2 percent) is plainly absurd and not worth serious consideration. Nevertheless, this is exactly what the ESR and the NGO are saying in their public statements.

Each of the 18 European recycling yards that applied and that have already been included in the European List of approved yards, had to declare in their applications the maximum annual tonnage they have recycled in the last decade. This is what is termed as the ship recycling capacity by the European Regulation, as well as by Hong Kong Convention.

Naturally, this metric results in an overestimate of true current capacity as, for some of the yards their maximum annual tonnage may reflect capacity of a few years ago that is no longer there. In fact, amongst the 18 E.U. yards currently appearing in the European List there are yards that are not currently recycling ships. In any case, the self declared maximum annual capacity of the 18 European yards is 303,065 LDT2, and definitely not the wishful figure of 1.1 million LDT that is claimed by ESR and the NGO.

We have to assume that the people who run the European ship recycling yards must be capable businessmen. How then can they keep a straight face when saying they have to ensure that their member yards are on the top of the shipowners’ list for dismantling their ships? Even forgetting Chinese and South Asian yards, why on earth should any owner of an ocean-going ship not sell his ship to a Turkish recycling yard for multiples of the price offered by E.U. yards?

The European ship recycling yards are not, and will not be the destination for end of life ocean-going commercial ships. Instead, the real market for European ship recyclers is made up of: E.U. government ships; ships that are immobilised in E.U. ports because of damage; and, primarily, the plethora of smaller European based ships and boats for which repositioning to South Asia, China and even Turkey would be impractical and economically prohibitive.

To get a feel of the magnitude of the small ship market we may examine the size distribution of the world fleet3. At the end of December 2015 there were 111,806 ships over 100 Gross Tons in the world. If we make the reasonable assumption that ships below 3,000 GT are not likely to travel a great distance to a recycling yard, this means that 75,998 ships between 100 GT and 2,999 GT, or 68 percent of the world fleet’s ships, will be recycled in local yards.

A similar proportion of the fleet trading in European waters should also be expected to be recycled in European yards. To these ships one should add the vast number of boats below 100 GT. This is the natural market for European ship recyclers, and it would appear wiser for ESR to concentrate on these ships rather than support the unreal propositions of the Platform.

Dr Nikos Mikelis is non-executive director of cash buyer GMS.

1 “World Steel Recycling in Figures 2011-2015” Bureau of International Recycling, Ferrous Division.

2 ec.europa.eu/environment/waste/ships/list.htm

3 “World Fleet Statistics 2015”, IHS Maritime & Trade 2016

Source: maritime-executive. 15 March 2017

All statutory rules being followed: SILK

Every time a ship for scrap reaches the Steel Industries Kerala Ltd. (SILK) unit at Azhikkal here, there are apprehensions about environmental pollution.

And it is not likely to be any different this time when a 1,300-tonne cargo ship has been brought to the public sector vessel dismantling unit located on the bank of the Valapattanam river, if the concerns aired in a section of the media are any indication.

The cargo vessel from Male reached the SILK unit here recently for dismantling.

SILK officials have said all statutory environmental rules and directives will be complied with before the work for dismantling the vessel starts. They said that this was the first vessel brought at the unit for breaking after completion of the ship-breaking activities amid protests by an action committee of local residents and environmental activists a few years ago. They had then demanded its closure saying that the ship-for-scrap work causes environmental and health hazards.

When contacted, SILK Managing Director J. Chandrabose told The Hindu over the phone that all statutory rules and directives from the Pollution Control Board will be complied with before the breaking starts. The dismantling work will be done in the workshop of the unit with roofing and concrete floor as required under the rules, he said adding that concrete flooring ensures that not a single drop of oil or grease from the ship reaches the waters.

The Azhikkal unit of SILK had been started for building boats as well as breaking vessels for generating steel required for recycling.

The public sector company is said to be running on accumulated loss, though the Azhikkal unit is surviving with orders for ship for scrap.

The latest order for dismantling coincides with the attempts to secure an order from the Kerala State Water Transport Corporation for building passenger boats. The SILK officials confided that the order is now at the stage of tendering. The unit can stay afloat if it gets three or four vessels for dismantling every year, they said. Ship breaking is also for reuse of iron used in ships, they added.

N. Mohammed, senior manager of the SILK unit at Azhikkal, said the unit has all the licences from the Pollution Control Board and the local panchayat for carrying out its operations. No contamination of water is possible as the vessel is not being dismantled in the water but inside the workshop with concrete floor. The unit also does steel fabrication work for other agencies, he added.

Source: hellenic shipping news. 18 March 2017

12 March 2017

European Recyclers Form Ship Recycling Group

Photo: NGO Shipbreaking Platform

Five European ship recycling yards have joined forces to effectively raise awareness of existing best practice and the fact that there is capacity in Europe to properly recycle ships.

The newly established European Ship Recyclers Group (ESR), set up under the umbrella of the International Ship Recycling Association (ISRA), aims at reaching out to ship owners that are looking for clean and safe ship recycling.

The NGO Shipbreaking Platform can only welcome this step and vows to support their efforts in attracting more business as long as they maintain sustainable practices.

The European Union approved 18 ship recycling facilities with a total capacity of 1.1 million LDT under the EU Ship Recycling Regulation in December last year. All 18 facilities are located within the EU and the newly established ESR represents five of these yards – from France (Port of Bordeaux), Belgium (Galloo), Denmark (Smedegaarden), the Netherlands (Scheepssloperij) and Spain (DDR).

The European Commission is currently revising 18 additional applications from facilities located outside the EU. To make it on the EU list of approved facilities, yards need to prove that they are able to contain pollutants, ensure safe working conditions and the environmentally sound management of all wastes derived from the recycling activities. Facilities that operate on tidal beaches are not expected to make it on the EU list.

Whilst ship recycling facilities in Europe, as in the US and China, currently operate under-capacity because they are unable to compete with the higher prices offered by the beaching yards in South Asia, the EU list comes with a promise of raising the profile of yards that have already invested in infrastructure and technologies to ensure safe and clean practices.

“ESR’s main goals are to unite all European ship recycling yards and let the ship owners know that there is capacity for ship recycling in Europe. Our message is a clear, if we can handle them, let’s keep the EU-flagged ships in Europe,” says Peter Wyntin of Galloo, chairman of ESR. “ESR will be in close contact with local and EU governments to make sure substandard and unlicensed recycling practices also within Europe are ended,” Wyntin added.

Ship owners are regrettably quick in rejecting European recyclers under the false pretext that there is no capacity in Europe.

European yards today primarily recycle government-owned and smaller vessels, but questioned by the NGO Shipbreaking Platform in 2013, almost all European yards expressed that a promise of an increased market share of the commercially owned vessels would prompt investments to enlarge their facilities, or use currently dormant locations, to enable the recycling of also the largest ships.

Source: marine link. 10 March 2017

11 March 2017

EU ship recyclers join voices to promote clean and safe practices

Five European ship recycling yards announced yesterday that they have joined forces to effectively raise awareness of existing best practice and the fact that there is capacity in Europe to properly recycle ships. The newly established European Ship Recyclers Group (ESR) aims at reaching out to ship owners that are looking for clean and safe ship recycling. The NGO Shipbreaking Platform can only welcome this step and vows to support their efforts in attracting more business as long as they maintain sustainable practices.

The European Union approved 18 ship recycling facilities with a total capacity of 1.1 million LDT under the EU Ship Recycling Regulation in December last year. All 18 facilities are located within the EU and the newly established ESR represents five of these yards – from France (Port of Bordeaux), Belgium (Galloo), Denmark (Smedegaarden), the Netherlands (Scheepssloperij) and Spain (DDR). The European Commission is currently revising 18 additional applications from facilities located outside the EU. To make it on the EU list of approved facilities, yards need to prove that they are able to contain pollutants, ensure safe working conditions and the environmentally sound management of all wastes derived from the recycling activities. Facilities that operate on tidal beaches are not expected to make it on the EU list.

Whilst ship recycling facilities in Europe, as in the US and China, currently operate under-capacity because they are unable to compete with the higher prices offered by the beaching yards in South Asia, the EU list comes with a promise of raising the profile of yards that have already invested in infrastructure and technologies to ensure safe and clean practices.

“ESR’s main goals are to unite all European ship recycling yards and let the ship owners know that there is capacity for ship recycling in Europe. Our message is a clear, if we can handle them, let’s keep the EU-flagged ships in Europe,” says Peter Wyntin of Galloo, chairman of ESR. “ESR will be in close contact with local and EU governments to make sure substandard and unlicensed recycling practices also within Europe are ended,” Wyntin added.

Ship owners are regrettably quick in rejecting European recyclers under the false pretext that there is no capacity in Europe. European yards today primarily recycle government-owned and smaller vessels, but questioned by the NGO Shipbreaking Platform in 2013, almost all European yards expressed that a promise of an increased market share of the commercially owned vessels would prompt investments to enlarge their facilities, or use currently dormant locations, to enable the recycling of also the largest ships.

To effectively push ship owners towards using EU approved yards, the NGO Shipbreaking Platform is calling for an incentive that will help close the financial gap between dirty and dangerous shipbreaking and proper ship recycling. The shipping industry needs to internalise the environmental and human costs of shipbreaking. The recently proposed Ship Recycling Licence does exactly that [1] and received support from the European Economic and Social Committee that in October adopted an opinion calling for “a financial mechanism to end beaching”.

“Ship owners cannot continue to ignore European recyclers and companies that have the capacity and will to provide solutions that can put an end to the scandalous conditions we are witnessing in South Asia. Only last week two more workers were killed at the shipbreaking yards in Chittagong, Bangladesh – the destination where most end-of-life gross tonnage was scrapped in 2016. [3] Commitment to use EU listed facilities is what we expect from any shipping company that calls itself socially responsible,” said Ingvild Jenssen, Director and Founder of the NGO Shipbreaking Platform.

Source: hellenic shipping news. 11 March 2017

Record attendance at TradeWinds' Ship Recycling Forum



A record number of more than 200 breakers, brokers and buyers and service providers at the cutting edge of ship demolition descended on Singapore last week for the TradeWinds Ship Recycling Forum including the heads of the Indian, Bangladesh and Pakistan national recycling associations.

A packed afternoon workshop discussed improvements at the waterfront including the growing number of Alang shipbreakers certified as holding a Statement of Compliance with the Hong Kong Convention. Health, safety and environmental standards in Bangladesh, Pakistan, Turkey, China and the USA were also discussed and debated by an expert panel including John Stawpert of ICS, Francesca Carlsson of NGO Shipbreaking Platform, Jim Heath of Lloyd’s Register, Henning Gramann of GSR Services, Nitin Kanakiya of Triveni Ship Breakers and Chetan Patel, owner of Shree Ram Group.

Differences were put aside for a few hours as participants enjoyed an evening with views over Marina Bay hosted by Dani Patel, Director of Dubai-based Al Salam Insurance and Junichi Hirata of Japan’s ClassNK.

Source: my news desk. 10 March 2017

10 March 2017

China’s scrap-and-build policy may be discontinued:

China’s ship scrapping and newbuilding subsidy scheme aimed at encouraging owners to renew their fleet and creating jobs for shipyards may no longer be a feasible policy, according to an industry veteran.

Li Shaode, ex-chairman of the former China Shipping Group, said a further extension to the expiry of the policy is not expected to benefit the market in a significant way.

Beijing first announced the scrap-and-build policy in December 2013, offering shipowners a two-tranch subsidy to encourage scrapping of vessels before their operational expiry date, and to build new and more energy efficient ships as replacements.

The policy, originally due to expire in 2015, was extended by to 31 December 2017.

Li, who is also a member of the National Committee of the Chinese People’s Political Consultative Conference, said he had called for an extension to the policy to 2017, but the scheme should now be allowed to lapse.

Li told reporters that under current market conditions, the continuation of the policy would lead to very low margins or even unprofitable deals for shipyards, while the tonnage overcapacity problem will persist.

In the absence of the policy, the industry would be allowed to consolidate and restructure further even if more bankruptcies are needed, according to Li.

In 2016, Chinese yards delivered close to 100m dwt of vessel tonnage and received 27.41m dwt in new orders, while 44m dwt of tonnage were demolished, giving rise to signs of a deflation to oversupply as the market continues to consolidate.

Li retired as chairman of China Shipping Group in November 2013 and passed the baton to Xu Lirong, who is now chairman of the merged China Cosco Shipping Corporation Limited (Cosco Shipping).

Source: seatrade-maritime. 09 March 2017

China’s ship scrapping and newbuilding subsidy scheme aimed at encouraging owners to renew their fleet and creating jobs for shipyards may no longer be a feasible policy, according to an industry veteran.

Li Shaode, ex-chairman of the former China Shipping Group, said a further extension to the expiry of the policy is not expected to benefit the market in a significant way.

Beijing first announced the scrap-and-build policy in December 2013, offering shipowners a two-tranch subsidy to encourage scrapping of vessels before their operational expiry date, and to build new and more energy efficient ships as replacements.

The policy, originally due to expire in 2015, was extended by to 31 December 2017.

Li, who is also a member of the National Committee of the Chinese People’s Political Consultative Conference, said he had called for an extension to the policy to 2017, but the scheme should now be allowed to lapse.

Li told reporters that under current market conditions, the continuation of the policy would lead to very low margins or even unprofitable deals for shipyards, while the tonnage overcapacity problem will persist.

In the absence of the policy, the industry would be allowed to consolidate and restructure further even if more bankruptcies are needed, according to Li.

In 2016, Chinese yards delivered close to 100m dwt of vessel tonnage and received 27.41m dwt in new orders, while 44m dwt of tonnage were demolished, giving rise to signs of a deflation to oversupply as the market continues to consolidate.

Li retired as chairman of China Shipping Group in November 2013 and passed the baton to Xu Lirong, who is now chairman of the merged China Cosco Shipping Corporation Limited (Cosco Shipping).

Source: seatrade-maritime. 09 March 2017

09 March 2017

ACI 5TH Ship Recycling Congress

26-27JULY, 2017 Singapore
Bridging the Gap with Europe - Advancements in South East Asian Ship Breaking

The two-day conference will consist of a number of informative presentations followed by interactive Q&A sessions, panel discussions and an open discussion to further involve the delegates. These talks will give a deep insight on the views shared from the different aspects of Ship Recycling. We will explore and discuss current and future possibilities within the market. Reviewing methods in increasing ship recycling profitability despite the low steel prices as well as looking into solutions in bettering dangers and health risks within South East Asian Ports. Topics will also include insights into new technological and practical systems for hazardous waste tracking. The conference will bring together various key industry stake-holders including Ship-owners, Ship-mangers & associated solution providers.

Key Topics Include:
- Industry Boom: Keeping up with Recycling Demands & the Correct Choice of Yard
- The Shipowners Conundrum
- European Policies Restricting the Asian Shipyards
- Recent Updates & Developments of Regional Shipbreaking Yards
- Commercial Use & Cash Buyer/Brokers; Obtaining Peace of Mind
- The Quality Gap
- Increased Performance & Improvements within Asian Shipyards
- The Next Step to Safer & Environmental Friendly Methods & Practices
- Technical Processes to Ensure Complete End-of-Life Cycle
- The European Effect & The Future of the HK Convention


Capesizes still headed for scrap despite market rebound:

In what could only be described as a more than positive omen for the future prospects of the dry bulk market, dry bulk carriers and more notably Capesizes are still being sold to scrapyards, even if the number of vessels offered has declined over the past few weeks. According to the world’s leading cash buyer, GMS, a total of 13 Capes have been sold for scrap so far in 2017, as buyers are willing to pay more money, thus making it an easier decision for some ship owners, in the midst of a rebounding dry bulk market.

In its latest weekly report, GMS noted that “the heat that has been emanating from the recycling markets in recent weeks showed few signs of abating this week, with several increasingly impressive sales being concluded to cash buyers who are turning over-bullish in their offerings. Another capesize bulker was committed this week (taking the total number sold so far this year to 13) whilst several container sales also took place at some top numbers. Just how much longer this heat will sustain itself, is a point of concern to all cash buyers (who are concluding units at numbers that are turning crazier by the week) as well as end buyers, given that the monsoon season is on the horizon, supply has been fairly consistent and local steel plate prices (and currencies to an extent) remain volatile as ever. For the time being, all markets can bask in this renewed optimism and any resistance to these levels can be banished, as most end buyers dip back in to acquire tonnage, despite lingering concerns of aggressive pricing”, said GMS. It added that demand and capacity remains healthy across all locations. As such, it would not be surprising to see a sustained optimism in the buying for the remainder of the month, before monsoon considerations start to become concerns for subsequent deliveries.

In a separate note this week, shipbroker Clarkson Platou Hellas said that “the strength being noted lately in steel prices across all locations have plaid a crucial role in keeping the ship recycling market fairly buoyant. Prices have managed to hold their relatively high position for now, being driven by further appetite that’s emerging from the Indian Sub-Continent and in particular from India whose ship breakers have resurfaced in the market with a willingness to compete hard on the few demo candidates that are in circulation. The positive sentiment from the side of breakers has played its role, however the market has received considerable support for these prevailing prices by the fact that the number of vessels being offered have been considerably fewer then what we were seeing in past years during the same time period. There has been a considerable amount of containerships being sold, however will other segments have been seeing limited activity up to now and with some segments such as dry bulkers seeing a considerable recovery in rates, the number of vessels offered to scrappers has declined as a consequence”, said the shipbroker.

Source: hellenic shipping news. 09 March 2017

IRClass signs RO agreement with Bangladesh Department of Shipping and establishes office in Chittagong

Leading classification society Indian Register of Shipping (IRClass), has signed a Recognised Organisation (RO) agreement with the Department of Shipping in Bangladesh.

The RO agreement was signed at a ceremony held in Dhaka by Director General of Shipping Commodore Syed Ariful Islam and Mr. Vijay Arora, Joint Managing Director of IRClass.

The event was graced by the presence of Bangladesh Shipping Secretary Mr. Ashoke Madhab Roy as the Chief Guest and Indian Deputy High Commissioner to Bangladesh Dr Adarsh Swaika as the Special Guest.

The Government of India and Bangladesh countries have already signed a Coastal Shipping Agreement to increase bilateral trade through the coastal areas and this authorisation as RO further paves the way for enhancing IRClass’ activities in the region. The maritime sector in Bangladesh will benefit from timely and value added services apart from cost savings.

“High quality of service at competitive prices will now be available to the Bangladesh maritime sector. IRClass intends to offer not just Ship Classification related services but also wishes to extend its services like Industrial inspection as well as Management Systems Certification. Ship recycling is a key industry in which IRClass can help the industry to adopt safe ship recycling practices,” said Mr. Arora.

Source: American journal of transportation. 06 March 2017

PHL secures Peso14.5-billion new investment commitments from Japanese businessmen

Japanese businesses remain confident of business prospects in the Philippines, as the Department of Trade and Industry (DTI) secures P14.5 billion in new commitments from existing Japanese firms in the country.

Following an investment forum in Tokyo, Trade Secretary Ramon M. Lopez said Japanese businessmen pledged as much as P14.5 billion in expansion projects, which include a substantial investment from shipbuilding giant Tsuneishi Heavy Industries.

“We met with Tsuneishi President Kenji Kawanoto to discuss the expansion plans of Tsuneishi shipbuilding in the Philippines. Our discussions now include a prospective third project on ship recycling, using the latest internationally accredited green technologies. The project will generate potential investments of over P5 billion and total job generation conservatively estimated at 6,000,” Lopez said in a message to reporters.

The ship recycling project is envisioned to respond to the country’s requirements for interisland vessels for transport and logistics, as well as cover the steel requirements of major infrastructure work, Lopez said.

He clarified though that this third project was in addition to the two expansion plans signed and witnessed by President Duterte during his state visit to Japan last October.

That previous visit already brought in Tsuneishi’s two expansion projects: a ship-reuse center in Negros Occidental, with a P5.2-billion tag; and a biomass fuel project in Mindanao worth P5 billion.

Tsuneishi’s three projects is seen to employ a total of 32,000 new jobs.


A prefabricated housing producer, Ichijo Co. Ltd. will also be expanding its existing operations in the country with a new factory and warehouse in Cavite amounting to P2 billion. Additional new jobs will be around 600 workers.

Ichijo’s operations in the Philippines is its only overseas manufacturing subsidiary, and all of its pre-fabricated housing are exported to Japan.

The DTI chief, with key members of the Cabinet including Transport Secretary Arthur Tugade, Public Works Secretary Mark Villar and Bases Conversion Development Authority President Vince Dizon, presented prospects for business and investments in the Philippines to 800 members of the Japanese business community last February 28.

Source: business mirror. 02 Mach 2017

Japanese firm to build ship recycling plant in Philippines

Tsuneishi Shipbuilding is reportedly going to invest around $100 million on project.

The Japanese shipbuilding company Tsuneishi Shipbuilding Co. Ltd., has reportedly announced plans to build a ship recycling facility in the Visayas region of the Philippines.

The Manila Standard reports that Tsuneishi will invest around 5 billion pesos (US $100 million) to build the plant, and the facility, when fully operational will result in 6,000 jobs.

In the article, Philippines’ Trade Secretary Ramon Lopez notes, “We met Tsuneishi president Kenji Kawano to discuss the expansion plans of Tsuneishi shipbuilding in the Philippines. Our discussions now also covered a prospective third project on ship recycling, using the latest internationally accredited green technologies,” he said.

Source: recycling today global. 03 march 2017
http://www.recyclingtodayglobal.com/article/tsuneishi-philippines-ship-recycling/