beaching Archives - Page 12 of 16 - NGO Shipbreaking Platform

Press Release – Norwegian Central Bank excludes companies from government Pension Fund Global because of their beaching practices

Posted on 16/01/201814/01/2022 by admin_ec

The Norwegian Central Bank announced today its decision to exclude ship owners Evergreen Marine Corporation, Precious Shipping, Korea Line Corporation and Thorensen Thai Agencies from the Government Pension Fund Global (GPFG) [1]. The exclusion is based on the companies’ poor management of their end-of-life ships and the sale of these for dirty and dangerous shipbreaking on the beaches of Gadani, Pakistan and Chittagong, Bangladesh.

The Norwegian Council on Ethics directs the Norwegian Central Bank, which manages the Government Pension Fund Global, on which companies should be excluded from investments in the fund, based on human rights and humanitarian violations, corruption and environmental degradation records. The GPFG is the largest sovereign wealth fund in the world, owning 1% of all investments worldwide, and the recommendations of the Council on Ethics weigh on other investors as indications of good financing.

The NGO Shipbreaking Platform has documented that in the last three years, 20 ships were sold by Evergreen, Korea Line, Precious Shipping and Thoresen Thai Agencies to beaching facilities in South Asia. The companies have been excluded from the GPFG because the beaching of their vessels cause severe environmental damage and serious human rights violations [2].

Whilst the exclusions so far are limited to companies that have sold their end-of-life vessels to be beached in Bangladesh and Pakistan, the reports clearly state that “to date, the Council on Ethics has not examined the way ships are broken up in India.” Many of the concerns raised by the Council also apply to the beaching practices in Alang, India. Indeed, as stated in their reports: “One particular problem with beaching is that shipbreaking takes place when the vessels are standing in mud and sand. As a result, the pollution leaches into the ground and is washed out with the tides. Even if arrangements were put in place at the beaching sites for the treatment of asbestos and PCBs, for example, the fundamental problem of containing and collecting the pollution would be impossible to resolve”. In light of this, the Platform encourages the Council on Ethics to also engage with companies that sell their ships for breaking on the beach of Alang, India.

According to the Council on Ethics, selling a vessel to a beaching yard “is a consequence of an active choice on the part of the company that owned the vessel to maximise its profit. In the Council’s opinion, that company must shoulder an independent responsibility for doing so. There are better ways of dismantling ships that are readily available to the shipowner, but these are more expensive”.

NOTES

[1] An additional company, the South Korean Pan Ocean Co Ltd, has been placed under observation. In its assessment of the likelihood that the company will in future contribute to such norm violations, the Council on Ethics has attached importance to the company’s assurance that it is willing in future to take the method of breakup into account as far as possible when making decisions on the sale of vessels for scrapping.

[2] The following serious concerns related to beaching are outlined by the Council of Ethics:
- continuous, innumerable and serious violations of a number of ILO conventions whose purpose it is to establish minimum standards which safeguard the lives and health of workers. Wide-ranging and serious violations of these conventions must be deemed to infringe fundamental rights to life and health, the sum of which must be said to constitute a serious breach of fundamental human rights.
- serious pollution and the dispersal of environmental toxins, which in turn have a negative impact on human health and ecosystems in the area.

Press Release – NGOs and trade unions denounce certification issued to PHP yard by classification society RINA

Posted on 07/12/201719/11/2018 by admin_ec

In October, the PHP Family (Peace Happiness and Prosperity) shipbreaking yard received a Statement of Compliance with the Hong Kong Convention [1] by the Italian classification society RINA. Trade unions in Bangladesh, as well as the Platform’s member Bangladesh Institute for Labour Studies (BILS), are concerned that such a labelling sets a dangerous precedent for the further green-washing of the Chittagong beaching yards. Workers and the environment are not protected as long as ships are broken on the beach, and as long as fundamental labour rights and proper infrastructure are not secured.

PHP is run by a renowned business family in Chittagong, who also runs activities in the steel re-rolling and construction industries, and owns TV channels. Trade unions made a formal request to represent the workers at the PHP yard, but the management has systematically rejected the workers’ right to freedom of association, and employees that have strongly engaged in demanding respect of workers’ rights have even been fired. Any worker association or NGO which does not praise PHP is received with hostility and is not even allowed to visit the yard. As reported yesterday by the Platform, accidents at the PHP shipbreaking yard continue to happen.

“It is shocking that a company that rejects legitimate trade union activities can be stamped as operating in line with international laws”, says Nazim Uddin, local trade union leader and Bangladesh representative at IndustriALL.

Despite some investments in the PHP yard to concrete parts of the upper beach, the severe deficiencies in infrastructure for the containment of toxics renders any statement of compliance with pollution prevention standards ludicrous. When vessels are cut in the intertidal zone, toxics are inevitably released in the sea. The entire Chittagong area is heavily polluted, and there is no means for any beaching yard to handle and dispose hazardous waste, such as oil residues, heavy metals and asbestos, in a safe and environmentally sound manner. The Hong Kong Convention’s ship recycling requirements stop at the gate of the yard, therefore the fact that Bangladesh still has no waste treatment facility for general waste, let alone for the toxic materials coming from ships, is completely overlooked by the Convention. Statements of Compliance with the Hong Kong Convention are clearly no guarantee that the environment and workers are protected from the many risks connected to the heavy and hazardous industry of ship recycling.

“That a beaching yard in Chittagong is able to comply with the Hong Kong Convention tells us a lot about the extremely low standard set by the International Maritime Organisation”, said Ingvild Jenssen, Director and Founder of the NGO Shipbreaking Platform. “Any ship owner looking for a safe and clean location for the recycling of their ship will be wise to disregard the very misleading Statements of Compliance with the Hong Kong Convention, and instead consult the upcoming EU List of approved ship recycling facilities”, she adds.

Press Release – Surge in number of accidents in Bangladesh shipbreaking yards

Posted on 06/12/201714/01/2022 by admin_ec

UPDATE

PHP shipbreaking yard informed the Platform on 26 January 2018 of the following:

The death of worker Harun Rashid, whose body was found in a pond near the PHP shipbreaking yard, was caused by drowning. PHP informs the Platform: “It is understood from Harun Rashid’s family that around 7:30 p.m. he decided to bathe in a local pond and did not return. His body was discovered the next day at around 10:30 a.m. from the pond. The next of kin of worker Harun Rashid released his body from police custody upon filing an application with the local police station to retrieve his body for burial without post-mortem as there was no reason to believe that he had passed away in anything other than normal circumstances”. According to PHP, Harun Rashid was a casual worker at the PHP shipbreaking yard, and PHP paid a substantial compensation to Harun’s family even though they had no obligations under the law to do so. Also according to PHP, the other worker – also called Harun Rashid – was injured in a traffic accident. PHP informs the Platform: “The incident occurred when the worker was heading home to attend a family emergency, and while crossing the street, he was struck by an oncoming bus. The hit-and-run incident left him with injuries, to recuperate from which, he applied for paid leave to his employer”.

Until September the NGO Shipbreaking Platform had observed a decrease in the number of accidents in the shipbreaking yards in Chittagong, Bangladesh. Now, however, the accident rate for the three first quarters of 2017 has surged with 8 injuries and 6 deaths recorded in ten separate incidents in the last two months alone.

On 23 October, Jalal, who worked as a cutter man, died struck by a cable at Arafin Enterprise, the yard where the product tanker LOBATO, owned by Petrobras, is currently being scrapped. Despite early warnings to the Brazilian government, the vessel was illegally exported from Brazil for dirty and dangerous scrapping on the beaches of South Asia and arrived in Chittagong in October. Shipbreaking worker Khalil died while working on an oil section of the Indonesian-owned tanker ECHO, beached at Ferdous Steel shipbreaking yard. One more worker was injured in that accident. Mizan, employed by Fahim Enterprise shipbreaking yard, lost his life on 14 November. He fell from the ship LABRI, sold for breaking by the Greek Polys Haji-Ioannou Group, after a fire broke out on the upper deck. Four more workers, who are now supposedly receiving treatment in the BSBA Hospital, suffered injuries due to a fire at Tania Enterprise shipbreaking yard. Moreover, during a nightshift on 4 December, Mojammel suffocated from inhaling toxic gases and then fell, dying on the spot. He was working at the SN Corporation yard on the ship INOX, owned by the Hong Kong-based HNA Group International. According to local sources, Mojammel and his colleagues were oddly sent to start breaking the vessel just a few hours after its beaching.

A local newspaper in Chittagong further revealed that the body of a worker, Harun Rashid, was found lifeless in a pond close to the PHP shipbreaking yard. Harun was a permanent staff member of PHP and was working as cutter helper. According to the attendance register, he was present and on duty on the day he was found dead. Harun’s cause of death has not yet been cleared by the police and, despite having paid a lump sum to Harun’s family, PHP’s representatives are silent about the incident. Still at PHP, another worker suffered an injury to his left leg and has spent the last three weeks in the BSBA Hospital for treatment.

Details on the remaining 2 injuries and the 1 death at the shipbreaking yards are still unclear.

In October, two major accidents also occurred in the steel re-rolling mills that are connected to the shipbreaking yards and where the steel from the ships are re-rolled into steel bars. According to the Bangladesh Insitute of Labour Studies (BILS), on 10 October 4 workers died in GPH Ispat, and less than a week later an accident at SARM re-rolling mill killed 1 worker and injured as many as 9.

“The working conditions in all the Chittagong shipbreaking yards are deplorable. Claims that the situation in the yards has somewhat improved are misleading: workers are still exposed to enormous risks and are killed because of the lack of basic safety procedures and infrastructure”, says Muhammed Ali Shahin, local contact of the NGO Shipbreaking Platform.

Ship owners that sell their ships for dirty and dangerous breaking are now also being brought to court. On Sunday, The Guardian published an article exposing the human costs of shipbreaking in Bangladesh. Mohamed Edris, who also worked at Ferdous Steel, was severely injured in 2015 while cutting the EURUS LONDON, owned by Zodiac Maritime, and is now seeking compensation in the UK courts from the shipping company. It is the first time that an injured worker demands compensation from a ship owner directly. Zodiac Maritime took the commercial decision to recklessly sell the EURUS LONDON to a beaching yard with the only aim of making a maximum profit, thus consciously neglecting the human rights abuses that shipbreaking in Bangladesh entails. This case could set a precedent for other workers who want to bring the ultimate profit-makers of dangerous and polluting practices to justice.

So far this year, 51 out of the total 152 ships that have been beached in Chittagong are owned by European companies. Zodiac has continued to sell its ships to Bangladesh, despite the pending legal case against them, demonstrating that they have no consideration for causing harm as a result of their dirty business. Other big companies, such as Teekay, Berge Bulk and Costamare, have also unscrupulously sold ships to the Chittagong beach this year.

Press Release – One year later and no lessons learned at gadani as Aces is set aflame – again!

Posted on 09/11/201714/01/2022 by admin_ec

Shipbreaking plot no. 54 in Gadani, Pakistan, was sealed off yesterday after a massive fire broke out on-board the ship ACES (IMO 8021830). This is the same floating oil production tanker that blew up on 1 November last year – an explosion that caused the death of 31 workers and seriously injured at least another 58 workers. Fortunately, reports seem to indicate that no workers got caught in the flames of yesterday’s fire on the ACES.

After having been left untouched and unbroken in the same yard since last year’s catastrophic explosion, the Pakistan Department of Environment gave permission last week for the continued breaking of the ACES. Shockingly, on the very first day that the breaking commenced, a massive fire broke out again as the oil residues inside the tanker had not been removed. While there have been no reported fatalities or injuries as a result of the fire, yesterday’s event goes far in demonstrating the Pakistani Government’s negligent attitude towards workers’ rights and safety, as well as enforcing proper environmental standards.

Following the major blast on 1 November 2016, dubbed the worst tragedy in shipbreaking history and caused by several gas cylinder explosions, workers have over and over rallied in Gadani to protest against the deplorable working conditions and the lack of Government support in enforcing safety and occupational health laws. Evidently, by authorising the breaking of the ACES to commence again, without having even ensured that the tanks were cleaned, Pakistani authorities blatantly ignore workers’ calls as yards are allowed to return to business as usual and perpetuate the industry’s violent legacy.

The appalling working conditions at Gadani are well-known, yet European ships are still being sold to Pakistan for breaking. In the third quarter of 2017 alone, seven ships – five German, one Greek, and one Norwegian – were sold to the Gadani beach for breaking.

"It is shameful that European ship-owners benefit from a situation where worker’s lives are continuously put at risk. Unless the yards are moved to industrial platforms away from the tidal beach where the safety of workers and the containment of pollutants can be ensured, we do not recommend the breaking of ships in Pakistan. How many more accidents and deaths at the Gadani beach is the global shipping industry ready to accept?"

Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

Following yesterday’s fire, the Deputy Commissioner of Hub District – Mr. Mangal – set up an inquiry committee to look into to the EPA approval to resume breaking of the ACES and sealed the shipbreaking yard where it is beached. The Platform urges the Government to ensure that end-of-life ships are dismantled in safe and clean ship recycling facilities off the beach. Only then will safe working conditions and the protection of the coastal environment from pollution be safeguarded.

Press Release – Indian authority shuts NGOs out from Alang yards

Posted on 26/10/201719/11/2018 by admin_ec

The NGO Shipbreaking Platform expresses dismay over the continued failure of the Gujarat Maritime Board (GMB) to be transparent and to grant civil society access to see the working and environmental conditions at the shipbreaking yards in Alang. For the past two months, the GMB has turned a cold shoulder to repeated requests by the Platform, via the Indian member organisation Toxics Link, to visit the shipbreaking yards on the tidal beach of Alang, where toxic vessels are broken without containment or stable platforms that other recycling methods provide. By refusing to reply to the requests to visit the yards, the GMB has opted to keep the negative environmental and labour impacts of the operations at Alang out of sight.

Last year, also the European Community Shipowners’ Associations (ECSA) and the Danish shipping line Maersk excluded the Platform from joining field visits they organised to Alang. Maersk recently reversed its ship recycling policy and began breaking ships on the Indian tidal shore. The return to the beach by Maersk has had the devastating effect of legitimising across the industry the beaching method, which inherently pollutes coastal areas and exposes communities to toxins, conditions that the GMB wants to conceal.

“In dismissing the Platform’s request to visit Alang, the GMB has chosen to protect industry attempts to green-wash the dirty and dangerous breaking of ships on beaches. This lack of openness is disappointing and represents a decision by the GMB to keep Indian ship recycling in the dark ages”, says Ingvild Jenssen, Director and Founder of the NGO Shipbreaking Platform.

The European Commission is anticipated to prohibit the recycling of EU-flagged ships in beaching yards when it publishes its upcoming list of approved ship recycling facilities in non-EU countries. The EU list represents an important turning point for sustainable ship recycling by setting a benchmark for an industry in which standards have been historically absent.

Platform publishes South Asia Quarterly Update #14

Posted on 19/10/201714/01/2022 by admin_ec

Due to the annual monsoon season, activities remained slow at the South Asian shipbreaking yards over the summer months. However, when the breaking took up again in September, one worker, Ashok Yadav, was reported killed whilst at work at shipbreaking plot no. 14 in Alang, India. Following his death, a letter denouncing the unsafe working conditions at the shipbreaking yards in Alang was sent to Indian Government officials by Toxics Watch Alliance. Around the same time, Md. Shohag – 21 years old – was seriously hurt while torch-cutting a vessel at Zuma Enterprise in Chittagong, Bangladesh, when an iron plate hit him on the left foot and stomach, causing severe injury.

It is not due to a lack of awareness concerning the dire working conditions that ship owners continue to favour the infamous beaching yards in South Asia. Rather, it is the fact that dirty and dangerous breaking brings in more money, as there is (1) little or no investments in proper infrastructure to contain pollutants and ensure safe working conditions; (2) the proper disposal of hazardous wastes is overlooked; and (3) migrant workers are exploited.

Moreover, the prices offered for ships this third quarter have been high in South Asia, especially when compared to the figures of the first half of the year. Monsoon rains caused a shortage of local product being available to the domestic steel mills and have, therefore, driven prices for end-of-life ships up. Whilst a South Asian beaching yard can pay about USD 400/LDT, Turkish yards are currently paying slightly less than the USD 250/LDT offered by Chinese yards.

Greek ship owners have, unsurprisingly, sold the most ships to the beaching yards with 11 beached vessels this quarter, followed by South Korea and Singapore with 6 vessels each. Shipping companies from the United States sold 5 vessels. Singaporean Continental Shipping Line remains the worst corporate dumper, though it currently shares this position with the Greek Anangel Shipping Enterprises and the Iranian Iran Shipping Lines. In total, these companies had three vessels each beached in South Asia in this quarter. Bermuda-based Berge Bulk, Greek Costamare, Swedish Holy House Shipping, and American SEACOR are close runner-up’s, with two ships each sold for dirty and dangerous scrapping on the beach. Brazilian-owned product tanker LOBATO, which was reportedly sold by Petrobras to Indian breakers, ended up on the muddy shores of Chittagong instead. Notably, no tanker was sold to the Gadani yards in Pakistan following the ban on tankers due to the major explosion on the ship ACES on the 1st of November of last year.

Although 33 out of the 124 beached vessels this quarter were European-controlled, only three of these had a European flag when they arrived on the beach. All ships sold to the beaching yards pass via the hands of scrap-dealers, also known as cash-buyers, that often re-register and re-flag the vessel on its last voyage. In this regard, flags of convenience, in particular those that are grey- and black-listed under the Paris MOU, are used by cash-buyers to send ships to the worst breaking locations. Almost half of the ships sold to South Asia this quarter changed flag to the grey- and black-listed registries of Comoros, Niue, Palau, St. Kitts & Nevis, and Togo just weeks before hitting the beach. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. Importantly, they are grey- and black-listed due to their poor implementation of international maritime law.

Efforts to counter the shipping industry’s crave for cash at the detriment of workers and the environment in South Asia are being brought to the attention of enforcement authorities and Courts. In Bangladesh, the Platform has been successful in taking legal action to halt the breaking of the FPSO North Sea Producer, which was illegally exported from the UK in 2016. Moreover, German authorities have been asked by the Platform to hold ACL, a subsidiary of Italian Grimaldi Group, liable for the illegal export of two ships, the Cartier and the Conveyor, to India.

Platform News – Atlantic Container Line steaming for sunshine

Posted on 11/10/201715/01/2022 by admin_ec

During the summer, the Swedish-flagged ATLANTIC CARTIER and ATLANTIC CONVEYOR, the two last G3 vessels operated by the Italian Grimaldi Group’s subsidiary Atlantic Container Line (ACL), were sold for demolition. The German competent authorities were alerted about the imminent illegal export of the ships from the port of Hamburg and prompted to take action to stop the vessels from departing. Despite the warnings and the clear signs that the ships were destined for scrap, the authorities did not halt the ships. The ATLANTIC CARTIER arrived in Alang, India, on the 20th of September, and the ATLANTIC CONVEYOR hit the beach on the 7th of October, after vessel tracking providers curiously indicated that the container carrier was “Steaming 4 Sunshine”.

International waste laws and the EU Waste Shipment Regulation are usually circumvented by ship owners who falsely declare that end-of-life ships are in continued operational use when leaving a port, thereby concealing the fact that they are destined for scrapping and have, therefore, become a waste. The cases of the CARTIER and the CONVEYOR are no exception.

The German authorities were not the only ones that have been contacted before the vessels’ final voyage. Also authorities from Canada and the UK, countries through which the CARTIER and the CONVEYOR sailed before arriving in Hamburg for their last EU port call, knew that the ships had been sold to the beach; yet, when questioned, ACL did not reveal that the ships were sold for breaking. Once having left the EU, both vessels operated for a short while in South-Eastern Africa – still under the same name, flag and ownership – waiting for the attention on them to fade. During that time, ACL contacted the Swedish authorities asking for advice on which steps should be taken if the company decided to recycle the ships. Despite the recommendations of Sweden to scrap the vessels in the EU or in an OECD country, there was no way to ensure that these recommendations would be followed, since at that point the ships were no longer in the EU. Rather, it is clear that this communication was a way for ACL to make it seem like the company had acted diligently by seeking advice from the flag-state, as well as to fraudulently make it seem as the decision to dispose of the container carriers was only taken once outside of EU waters.

According to the German port authorities, there was no evidence base for the arrest of the vessels, even though the logos of both the CARTIER and the CONVEYOR had been painted over before the final voyage. Moreover, it was well-known within the industry that these two sister ships would be sold for breaking in the summer, as ACL itself indicated that the ships would be scrapped on the cash-buyer GMS’ website last year. In light of this, the Platform has recently sent aletter to the German authorities asking them to hold Grimaldi Group’s ACL accountable for having breached European waste laws.

End-of-life sales to South Asian yards are done with the help of a cash-buyer, a company specialised in trading end-of-life vessels to the dirty and dangerous beaching yards. It is not the first time that Grimaldi Group sends its ships to be broken on the beaches: the ATLANTIC CONCERT and ATLANTIC COMPASS were beached in Alang last year. In 2016, during an official meeting in Rome, the Platform raised serious concerns regarding the more than 90 Italian-owned end-of-life vessels that had been sent to dirty and dangerous scrapping yards in Bangladesh, India and Pakistan in the last seven years. The Platform advised the Italian Ship Owners Association, including representatives of Grimaldi Group, to stop selling their end-of-life vessels to unscrupulous cash buyers, and urged the Italian ship owners to ensure the safe and environmentally sound recycling of their ships. Hence, it is clear that the Platform’s message has not been taken into consideration.

Platform News – Investigations ongoing after Norwegian authorities press charges against owners of Harrier

Posted on 21/09/201701/12/2020 by admin_ec

The HARRIER is still under arrest in Norway after its owners failed to illegally set sail for the dangerous and dirty scrapping yards in Gadani, Pakistan, last February. The owners are now forced to find a safe and environmentally sound recycling destination. In parallel, investigations are still ongoing following the charges pressed by the Norwegian environmental authorities against the owners of the TIDE CARRIER for having attempted to breach existing waste trade laws [1].

At the edge of bankruptcy, Eide Group sold the previously named EIDE CARRIER, which had been laid up for 10 years, to cash buyer Wirana, a scrap dealer specialized in trading toxic ships to dirty and dangerous scrapping yards in South Asia. Wirana registered the vessel under an anonymous Saint Kitts and Nevis post box company called Julia Shipping Inc. The ship was renamed TIDE CARRIER and supposedly changed registry to the Paris MoU black-listed flag of Comoros. Based on fraudulent information that the vessel was heading for repair works in the Middle-East, Norwegian authorities allowed the ship to leave the west coast of Norway on 22 February 2017.

Had Wirana disclosed that the true destination was the beach of Gadani in Pakistan the vessel would not have been allowed to depart: exporting ships for dirty and dangerous scrapping is illegal under international waste trade laws. All ships contain many toxic materials within their structure and in their paints and the law requires that these should be managed in a way that protects people and the environment from harm. Extremely low operating standards at the beaching yards enable them to offer higher prices for the ships than facilities that operate in line with safety and environmental norms. Wirana knows this and the law very well, and for the sake of extra profits they therefore presented a fake contract for repairs in Oman.

However, the ship’s deteriorating condition caused the engine to stop only hours after its departure. Despite stormy weather, the vessel’s new captain from Nabeel Ship Management did not call for help. The risk of oil spill and grounding close to one of the most known beaches in Norway was high and was only dodged thanks to the Norwegian coastguard’s decision to trigger a salvage operation. An environmental disaster in Norway was avoided, and with the arrest of the ship in April the Norwegian authorities effectively averted another environmental injustice on the Gadani beach, where it was actually destined for scrap. Less than a year ago Gadani saw the worst shipbreaking catastrophe of the industry’s history[2].

Already in the summer of 2015, the Platform was informed that the vessel had been sold for breaking. Confronted with the illegality of exporting the ship to South Asia, Eide Group denied that the vessel would be scrapped at the time. One and a half years later, after the ship had been salvaged and was laid up in Gismarvik, the Environment Agency and the police found evidence that the vessel was under a “break up voyage” insurance from Norway to Gadani, Pakistan. That, and the fact that the contact person for Julia Shipping Inc in the sales contract that dated from summer 2015 is Keyur J. Dave, Chief Financial Officer at Wirana, are clear indicators that the vessel was headed to a scrap yard in Pakistan when it left Norway. All vessels broken in South Asia pass via the hands of a cash buyer. Singapore-based Wirana and US-based GMS are the two largest cash buyers, both of which are inherently entangled with the South Asian breakers.

Consequently, it became clear that the repair contract in Oman which had been provided to the Norwegian authorities as a way to escape checks for the illegal export of the vessel was false. The Norwegian Environment Ministry therefore rejected the complaint of Julia Shipping Inc, represented by law firm Wikborg Rein, for the arrest order. The post-box company Julia Shipping Inc refuses to reveal its ownership structure. To further point to the lack of accountability, the Norwegian newspaper, Bergens Tidende, revealed in a longer article, published in August, that when the Norwegian authorities had contacted the Comoros registry regarding the TIDE CARRIER, the Comoros registry answered that they did not have any information about the ship being registered under their flag. Only days later the vessel changed name again to HARRIER and swapped flags again to that of another Paris MoU black-listed flag: Palau. Both Comoros and Palau are popular end-of-life flags. In 2016, out of 668 ships that were beached, 42 had the flag of Palau and 47 were beached under the flag of Comoros. The now-called HARRIER is not allowed to leave Norway unless it is to sail to a ship recycling destination in line with international and European hazardous waste laws.

In the meantime the owners of the HARRIER owe the private port of Gismarvik and GMC Maritime several million NOK as port fees. The vessel left Gismarvik in June and is now anchored off the coast of Farsund where two crew members remain confined onboard the ship and the continuous use of the ship’s engine is creating unneglectable nuisance to local inhabitants.

This is not the first time that cash buyers seek to circumvent environmental protection laws by providing fake sales or repair contracts. The Norwegian owned CITY OF TOKYO was allowed to leave the port of Antwerp under the pretense of repair work in Dubai – instead it sailed directly to the infamous beaching yards in Bangladesh. The FPSO NORTH SEA PRODUCER was also illegally exported from the UK to Bangladesh under the pretense of further operational use in Nigeria. Cash buyer GMS used grey- and black listed Paris MoU flags and established anonymous post box companies in both cases.

The TIDE CARRIER case reveals the typical business practices of ship owners and cash buyers, and adds to several other cases where authorities have been lied to and provided false information as a way to escape checks for the illegal export of end-of-life ships. At least in the TIDE CARRIER case, the Norwegian authorities have so far not been gullible to fall for the well-known tricks of the game.

Platform News – NGOs maintain pressure on owners and scrap dealers of FPSO North Sea Producer

Posted on 13/09/201714/01/2022 by admin_ec

16 August of last year the FPSO NORTH SEA PRODUCER was beached in Chittagong, Bangladesh. The ship was allowed to leave the UK based on the false promise that it would be further operationally used in the Tin Can port in Nigeria. One year on, the battle to hold the owners and cash buyers accountable for the illegal export of the FPSO is not over.

The North Sea Producer (ex Dagmar Maersk) was deployed in the McCulloch field in the North Sea, transporting and extracting oil from the UK continental shelf for 17 years, and was owned by the North Sea Production Company, a single-ship joint venture between the Danish A.P. Moeller Maersk and the Brazilian Odebrecht. Once the field closed, the NORTH SEA PRODUCER was laid up in Teesport for a year while the owners were looking for buyers. For scrapping purposes the ship was only allowed to be sold to a facility within the OECD as any export of hazardous waste outside the OECD is in breach of International and EU law. However, selling the FPSO to a recycler that could safely handle all the hazards of the ship within the OECD would have meant that the owners would not have made as big a profit as selling it to less scrupulous breakers operating on tidal beaches in South Asia. Maersk and Odebrecht thus settled to sell the ship to the largest vessels’ scrap dealer, cash buyer GMS, through a St. Kitts and Nevis post box company called Conquistador Shipping Corporation, and provided the UK authorities with a false contract stating that the NORTH SEA PRODUCER had found a new owner who would operate the ship in Nigeria.

Despite the vessel being under the radar of local communities in Teesside and was well-known in the shipping industry for needing to be scrapped, the UK authorities relied on the false contract to allow the FPSO to leave on tug. The NORTH SEA PRODUCER was then directly towed all the way from the UK, around the African continent, to Bangladesh. NGOs were quick to alert both the UK and Bangladesh governments of the illegal export [1]. It was only once the FPSO had left the UK – and after the case was strongly criticised in Danish and international press – that Maersk was “very, very sorry” that Conquistador Shipping Corporation apparently took the independent decision to beach the NORTH SEA PRODUCER in Chittagong for dirty and dangerous scrapping. Maersk has since claimed in its Sustainability Report 2016 that it has cut all commercial ties with the buyer of the NORTH SEA PRODUCER: an obviously meaningless statement if that implies cutting ties with a single-ship post box company. Maersk however still refuses to admit that they sold the ship to GMS, the largest waste traffickers in end-of-life ships, as doing so would clearly indicate that they knew all along that the ship would directly head to a scrap yard. It was evident that the bungalow in St Kitts and Nevis, where Conquistador Shipping Corporation was just the shell company set up by GMS to make it look like it was sold to a legitimate buyer, would not further operate the FPSO. Or was Maersk fooled by the tricks of the trade? Did they really believe that the ship would continue to operate under the ownership of the world’s largest scrap dealer? Chances are they were not fooled at all, but were in fact orchestrators of an illegal export alongside GMS.

Once the ship arrived at Janata Steel in Chittagong, and upon alerts issued by local NGOs, the Bangladesh Attorney General of the Department of Environment set up a special committee to determine the presence of contaminated residues, and to investigate the ship’s illegal import due to lack of necessary clearances and false claims that it was hazardous-free. Having operated in the North Sea, the vessel’s pipelines are likely to contain residues contaminated by radioactive materials and sulphur. Other toxics, such as asbestos and heavy metals, are contained within the structure and paints of the ship. Upon a request from the Platform’s member organisation Bangladesh Environmental Lawyers’ Association (BELA), the report on the ship’s condition was released in June: it’s conclusion was that radioactive residues were found upon inspection and that further surveys needed to be carried out on the whole ship. BELA subsequently succeeded in getting an injunction on the breaking of the North Sea Producer until October, which is when the Court will resume the case after the Eid recess.

In the UK, the Platform demanded the Secretary of State for Environment, Andrea Leadsom, to investigate the illegal export from Teesport [2]. DEFRA has been looking into the case for nine months now, and the Platform recently requested that they share information on their findings and on the action which they will be taking against the fraudulent and illegal export. In parallel Danish parliamentarians have been questioning the Environment Minister, Esben Lunde Larsen, on what actions Denmark can take to hold Maersk accountable.

One year on since the beaching of the NORTH SEA PRODUCER, the story is thus far from over. One year on and there are legal proceedings in the exporting state, the UK, and the importing state, Bangladesh, to hold Maersk, Odebrecht, GMS and the importers accountable for their illegal trade of a highly toxic and particularly risky ship to dismantle.

Platform publishes South Asia Quarterly Update #13

Posted on 12/07/201719/11/2018 by admin_ec

There were a total of 210 ships broken in the second quarter of 2017. 158 of these ships ended up on South Asian beaches for dirty and dangerous breaking [1]. The Platform was able to document five accidents at the shipbreaking yards in Chittagong, Bangladesh, between April and June, which led to the death of four workers and the injury of two.

Ishaq worked as a winch operator and died struck by a cable at the BBC Steel Shipbreaking/KR yard. This is the second fatal accident this year at BBC Steel. Zishan died in an accident at the Ratanpur Steel Re-Rolling mills where iron plates from the ships are transformed for the construction industry. In Jamuna Shipbreaking yard, the Platform reported in Mayabout the death of Shahinoor who fell from the Hanjin Rome, the first ship arrested after the bankruptcy of the Korean container giant Hanjin Shipping. This ship was sold on auction by the Singaporean courts following the bankruptcy of Hanjin Shipping and should be a harrowing wake-up call to courts and bankruptcy administrators that there are human consequences of selling ships for the highest return price to the beaches. During a nightshift on 21 May, Shochindro Das died when he was hit by an iron pipe. He was working as a cutter helper in the Khawja yard, which shares owner with Kabir Steel. Working during night shift without protective equipment are particularly graving circumstances that sadly witness of the extremely harsh conditions workers face at the shipbreaking yards in Chittagong. Local sources are claiming that Shochindro Das was only 15 years old, whilst the officially reported age was 26. The Platform will investigate these serious allegations. Child labour at the Bangladesh shipbreaking yards is illegal under Bangladesh law and also under the ILO’s Convention on Worst Forms of Child Labour.

The worst dumping country this quarter was Germany with 16 beached ships, a consequence of the multiple bankruptcies due to the toxic financing that has been characteristic of the German shipping industry. In June, German public television channel ARD documented the appalling conditions under which German ships are broken in Bangladesh. The other leading dumping nations were Singapore with 12 ships, Greece with 9, and South Korea with 8. Though 45 out of the 158 beached vessels this quarter were European-controlled, only four of these had a European flag.

Legislation at the international and European level to regulate the disposal of ships is based on flag state jurisdiction. The flags of the worst dumping countries were however rarely or not used at end-of-life. Flags of convenience, in particular the grey- and black-listed ones under the Paris MOU, are used by cash buyers and ship owners to send ships to the worst breaking locations. Nearly a third (49) of all the ships sent to South Asia this quarter changed flag to typical end-of-life registries only weeks before hitting the beaches: St Kitts & Nevis, Comoros, Palau, Djibouti, Niue and Togo. These flags are not typically used during the operational life of ships and offer ‘last voyage registration’ discounts. They are grey and black-listed due to their poor implementation of international maritime law.

There were five cases where the ships in question were sent to South Asia in breach of the EU Waste Shipment Regulation [2]. In Bangladesh, the Platform was successful in taking legal action to halt the breaking of the FPSO North Sea Producerwhich was illegally exported from the UK in 2016. The Platform also alerted this quarter the Brazilian government of several vessels exported to the beaching yards from Brazil in clear breach of UNEP’s Basel Convention.

The worst company was the Singaporean Continental Shipping Line that had six Liberian-flagged vessels that all changed flag to St Kitts & Nevis or Comoros and were beached in South Asia. Quantum Pacific is a close runner-up on second place for worst dumping practices, with four ships sold to Pakistan and Bangladesh. Quantum, owned by Idan Ofer, son of the late shipping mogul Sammy Ofer, has been under the Platform’s radar before as the worst dumper of 2015. The worst dumper of 2016 was UK-based Zodiac Maritime, run by Idan’s brother, Eyal Ofer.

The figures of this quarter not only show how legislation based on flag state jurisdiction will fail in changing the deplorable shipbreaking practices of the shipping industry, they also show that companies such as Quantum and Zodiac have no shame in continuing to exploit vulnerable workers in South Asia for the sake of extra profits.

Tag: beaching