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Press Release – Polluting shipbreaking practices threaten Ghanian shores

Posted on 17/11/202217/11/2022 by Nicola Mulinaris

In light of the recent infrastructure developments taking place at its main ports of Tema and Takoradi, Ghana is aiming to become the main integrated maritime hub of the west African subregion. Yet, certain unregulated practices, such as the demolition of end-of -life vessels, still represent a threat for the ecosystem and the health of the quarter of the country's population that lives along the coast.

Due to the weak enforcement of environmental legislation, low labour costs and occupational safety standards, and the absence of a legal framework covering the recycling of obsolete vessels, dozens of ships have been arbitrarily dumped on Ghanian shores in the last years. Evans Ago Tetteh, PhD Adjunct Lecturer at the Regional Maritime University in Accra, recently reported on the present situation of ship demolition in Ghana, and provided evidence on the environmental harm caused on the beaches of Kpone by the spillage of hazardous substances, such as marine diesel oil. Some of the toxic vessels beached in Ghana have European ties. It is the case of the refrigerated cargo ship NAFTILOS, which was owned by Greek company Fairport Shipping Ltd and which maritime databases still list as laid-up.

Shipbreaking yards are granted licences by the Ghana Maritime Authority and permits by the Ghana Port and Harbours Authority, but neither entity follows through on the process to ensure that the scrapping process is conducted in an environmentally sound manner. To date, the Ghana Shipping Act 2003 (Act 645), the Ghana Maritime Pollution Act (Act 932), the Environmental Protection Act 1994 (Act 490) and the Hazardous and Electronic Waste Control Management Act 2016 (Act 917) are the only laws designed to regulate the ship recycling business, without any sector-specific rules.

In recent years, the number of steel companies in Ghana has increased, particularly near the Tema Kpone industrial zone, as well as the country’s thirst for steel scrap. In light of this new demand for raw materials, the NGO Shipbreaking Platform is calling upon the government of Ghana to develop new legislation tailored to regulate ship recycling activities in line with European standards, and to set up a clean and safe industry with adequate downstream waste management facilities. The beaches are not a suitable place for the breaking of toxic vessels.

Platform publishes South Asia Quarterly Update #31

Posted on 24/10/2022 by Nicola Mulinaris

Platform News – Prison sentence for attempted illegal export of the Harrier reveals reckless actions by all parties involved

Posted on 10/10/2022 by Nicola Mulinaris

In March, the Norwegian Court of Appeal convicted ship owner Georg Eide of complicity in an attempt to export the end-of-life vessel HARRIER (a.k.a. EIDE CARRIER and TIDE CARRIER) for scrapping in Pakistan, and fixed the sentence, as the District Court did on the first instance, to six months imprisonment. Eide’s second attempt to appeal was subsequently rejected by the Norwegian Supreme Court in June, therefore confirming the prison sentence.

The judgment, now available in English, clearly states that whether a ship owner sells a ship directly to a scrap yard on the beach in South Asia or uses an intermediary scrap dealer (a.k.a. cash buyer) to conduct the sale will not affect what degree the act merits punishment.

The judgement also provides shocking insights into the role played by all parties involved in the sale and transport of the end-of-life vessel. At all steps along the way, the companies involved were knowledgeable about the intent to scrap the ship. They were also fully aware that it was illegal to scrap the vessel in South Asia, and assisted cash buyer Wirana in setting up a fraudulent tale of repair works in Dubai.

In 2015, after having been laid up for almost ten years, it was clear that the EIDE CARRIER did not have a bright future as an operational ship. Eide Group, the owner, was facing financial difficulties, and their bank, Nordea, incited Eide to sell unprofitable assets. Eide shared possible options with the bank, including the sale of the ship for scrapping.

Shipbroking company Fearnley was hired to find a solution and introduced Eide to scrap dealer Wirana. Shortly after, in the summer of 2015, the vessel was sold to the scrap dealer for USD 5 mill. An e-mail from Wirana to Fearnley in June 2015 stated: “… Also, in view of the green activists etc., vessel NEVER to be declared as going for scrap from its current place.” Both Wirana and Fearnley were thus aware that the export from Norway to South Asia for scrapping was illegal.

At the same time, the NGO Shipbreaking Platform received an anonymous alert and contacted Eide to inform them that any attempt to send the vessel from Norway to South Asia would be a criminal act under European and Norwegian waste laws.

The vessel stayed in Norway. However, in February 2017, the EIDE CARRIER became TIDE CARRIER, changed its flag to that of Comoros and was boarded by a crew from Nabeel Ship Management with the aim of sailing to Pakistan for breaking. A false pretext that the vessel was heading for Dubai for repair and re-employment was provided to authorities.

The TIDE CARRIER never reached Pakistan as it faced engine problems shortly after having left the Norwegian west coast. Local authorities arrested the vessel upon finding onboard a “last voyage insurance for breaking in Pakistan” issued by insurer Skuld. The vessel changed its name (again) to HARRIER and its flag to Palau.

Maritime Warranty Surveyor (MWS) Aqualis Offshore had issued two certificates to the vessel, one for Gadani, Pakistan, and one for refurbishment in Dubai. In an e-mail shared by the Court of Appeal, Aqualis stated: “A second COA [certificate of approval] will also need to be issued to Dubai (for refurbishment) and left on the vessel for Suez Canal purposes (if they hear of a scrap ship then they become difficult)”.

In July 2019, the prosecutors issued Wirana a NOK 7 million fine for having falsified papers to deceive Norwegian authorities about the ship's true destination and seaworthiness to allow the vessel to leave Norway. The cash buyer agreed to pay the fine, but without acknowledging wrongdoing. Also marine warranty surveyor Aqualis Offshore and insurance company Skuld Maritime Agency have been under investigation. The public prosecutors’ office recently dismissed the charge and withdrew the penalty charge notice issued to Aqualis Offshore for undisclosed reasons.

Several other cases of illegal exports involving the use of cash buyers are being investigated in Germany, the Netherlands and UK.

Platform publishes South Asia Quarterly Update #30

Posted on 30/08/202224/10/2022 by Nicola Mulinaris

Press Release – Surge of accidents at yards owned by Kabir Group in Bangladesh

Posted on 02/06/202202/06/2022 by Nicola Mulinaris

Since the beginning of 2022, out of the eighteen accidents that shook the Bangladeshi shipbreaking industry, six have taken place at yards owned by Kabir Steel Re-Rolling Mills (KSRM), a concern of large conglomerate Kabir Group.

In the last week of January, Mohammad Bakul Pramanik was fatally hit by an iron girder. In February, while scrapping the vessels PIONEER (IMO 9048110) and MED (IMO 9002207), owned by South Korean Polaris Shipping and Singaporean Hin Leong Trading respectively, Ariful Islam Sujan lost his life, whilst Mujidul Haque, Shalim and Md Rofiqul got severely injured. On May 25, Shahjahan, who was working as a cutter foreman on the Floating Storage and Offloading (FSO) vessel LADINDA (IMO 7361269), owned by Indonesian shipping company EMP Malacca Strait SA, suffered a spine injury due to the fall of a big iron plate.

This series of accidents follows years of tragic deaths and injuries at Kabir’s yards. In 2020, three accidents took the lives of three workers and impaired another three. In 2021, out of five incidents at KSRM yards, one was fatal. Despite the repeated interventions of the Bangladesh Department of Inspection for Factories and Establishments and the Ministry of Industries, which included a ban on operations and imports at one of the KSRM yards for four months, Kabir’s management continues to put the lives of workers at risk.

"All corporations have an obligation to conduct human rights due diligence throughout their supply chain. KRSM’s repeated failure to protect its workers from the many risks involved in ship recycling has resulted in the death of six people and the impairment of at least another seven since 2020. It should be of utmost concern to any financial institution claiming to take Environmental, Social and Governance (ESG) issues seriously to be associated with such appalling practices."

Ingvild Jenssen - Executive Director - NGO Shipbreaking Platform

In what seems to be a new worrying trend, several accidents are occurring on board offshore structures, such as Floating Storage and Offloading (FSO) and Floating Production Storage and Offloading (FPSOs) units. These vessels present additional risks for shipbreaking workers, mainly due to their complex design and the presence of highly toxic contaminants, including Naturally Occurring Radioactive Material (NORM) and mercury. [1]

Since 2021, there have been ten accidents on offshore units beached in Bangladesh. One example is this year's above mentioned injury of Shahjahan on board the FSO LADINDA. Another one is the fatal accident that took place at Hm Ship Breaking Industry on the FSO G STAR (IMO 9118393), owned by the Thai company Nathalin.

"Vulnerable human beings are paying the price with their lives, whilst big corporations fill their pockets with money. Whilst weak regulations and poor law enforcement allow ship owners to choose the easiest and dirtiest way to dispose of their toxic waste on the beaches of South Asia, clean and safe solutions are already available at facilities that use slip ways, dry docks or floating docks. Companies like Shell and SBM Offshore, which have adopted an 'off the beach policy', show that doing the right thing is possible."

Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

Press Release – Fatal accident at Alang yard during cutting of BW Offshore vessel

Posted on 27/04/2022 by Nicola Mulinaris

A worker lost his life while scrapping BW Offshore’s Floating Production Storage and Offloading (FPSO) unit CIDADE DE SAO VICENTE (IMO 7380693) at an Indian beaching yard on 21 April. According to local sources, a nitrogen tank removed from the vessel violently exploded and killed the worker on the spot.

BW Offshore sold the FPSO to Priya Blue Industries shipbreaking yard in Alang, India, in February at a price of USD 12.8 million cash after a cold-lay-up in Oman and unsuccessful attempts to negotiate a new contract in Brazil, where the unit operated for eleven years under charter for Brazilian giant Petrobras.

Despite having been offered a more sustainable solution for the recycling of the vessel when it was in the Middle East by new-comers Elegant Exit Company at the Bahrain-based ASRY dry-dock and SULB steel production facility, BW Offshore decided to sell the FPSO to the Indian beaching yard for a supposedly higher price. Assisted by Arctic Shipbrokers, Grieg Green and Priya Blue’s cash buyer Best Oasis, the deal was branded as a green sale. The FPSO changed its name to VICE and its flag to St Kitts and Nevis before it was ramped up on the Alang tidal mudflat.

Priya Blue Industries was amongst the first yards in India to obtain a so-called “Statement of Compliance with the Hong Kong Convention” from Japanese ClassNK, and is also member of the Sustainable Shipping Initiative since 2018. However, recent audit reports by the European Commission have highlighted a series of structural deficiencies at the Alang shipbreaking yards, including Priya Blue Industries, related to the lack of infrastructure to contain pollutants in the primary cutting area, the non-existence of capacity to handle several hazardous wastes originating from ships downstream, the absence of medical facilities and breaches of labour laws. In 2019, the NGO Shipbreaking Platform documented another fatal accident at Priya Blue Industries, and Dutch investigative program Zembla uncovered that same year the shocking conditions under which the scrapping of the mercury-laden Floating Storage and Offloading (FSO) tanker YETAGUN took place in another site owned by Priya Blue.

In what is a significant improvement, Dutch company SBM Offshore, owner of the infamous YETAGUN, radically changed their recycling policy after the revelations of Zembla by banning the use of beaching yards and only allowing the scrapping of its offshore assets at yards that use a dry-dock or the landing on concrete slope with drainage system.

"We encourage BW Offshore and BW Group to follow SBM’s example and ensure that their end-of-life fleet is managed exclusively in facilities that can ensure the highest environmental and social standards. Ship owners – and their brokers – have an obligation to conduct due diligence when selecting business partners. When safer alternatives to beaching exist, ignoring the social and governance failings in Alang and contributing to the greenwashing of an outmoded and polluting method for the sake of more money is simply not acceptable anymore."

Ingvild Jenssen - Executive Director - NGO Shipbreaking Platform.

Platform publishes South Asia Quarterly Update #29

Posted on 20/04/2022 by Nicola Mulinaris

Press Release – Appeal Court confirms prison sentence for Norwegian ship owner

Posted on 23/03/2022 by Nicola Mulinaris

The Gulating Lagmannsrett, an Appeal Court in the Norwegian city of Bergen, has confirmed the prison sentence for Norwegian ship owner Georg Eide for aiding and abetting the attempt to export the ship Tide Carrier, aka Eide Carrier and Harrier, to Pakistan for scrapping [1].

Back in November 2020, the First Instance Sunnhordland District Court in Norway had sentenced Mr Eide to six months unconditional imprisonment for having assisted scrap dealer Wirana in an attempt to illegally export the Tide Carrier to the shipbreaking beach of Gadani. The Court had also ordered the confiscation of criminal dividends of NOK 2 million from Eide Marine Eidendom AS.

Now, almost a year and a half later, Mr Eide, who had decided to appeal the first verdict, sees his prison sentence confirmed. As reported by ShippingWatch, the Court concluded, in line with the National Authority for Investigation and Prosecution of Economic and Environmental Crime's (Økokrim), that the ship owner was aware that the Tide Carrier’s buyer was intending to scrap the vessel in South Asia, in violation of national and European waste rules. According to the Appeal Court, having sold the vessel to a middle man and not directly to a beaching yard does not provide for exempting the ship owner from being held liable for having committed an environmental crime.

Transboundary movements of hazardous wastes are strictly regulated by Norwegian, European and international laws. Illegal trade of toxic end-of-life ships are increasingly being investigated by enforcement authorities in several EU Member States, which have the obligation to prevent the export of hazardous wastes to non-OECD countries. Upholding the principles and rules set in the Basel Convention and EU waste legislation, the NGO Shipbreaking Platform expects that more ship owners and intermediaries will be held accountable for the exploitation of vulnerable communities and the environment on the shipbreaking beaches of India, Pakistan and Bangladesh, and call upon the shipping industry to conduct human rights due diligence when managing their end-of-life fleet.

NOTE

[1] For more details on the case, see The controversial case of the Harrier.

Press Release – Platform publishes list of ships dismantled worldwide in 2021

Posted on 02/02/202202/02/2022 by Nicola Mulinaris

"We have been witnessing this environmental and human rights scandal for too long. All ship owners are aware of the dire situation at the beaching yards and the lack of capacity to safely handle the many toxic materials onboard vessels. Yet, with the help of scrap dealers, the vast majority choose to scrap their end-of-life fleet in South Asia as that is where they can make the highest profits."

Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

In South Asia, workers – often exploited migrants, some of them children – are exposed to immense risks. Dangerous working conditions, including fires and falling steel plates, kill or seriously injure numerous workers. Many more are sickened by exposure to toxic fumes and substances that can be found within the ships’ structures. Coastal biomes, and the local communities depending on them, are devastated by toxic spills and air pollution due to the lack of infrastructure to contain, properly manage and dispose of hazardous materials.

In 2021, at least 14 workers lost their lives when breaking apart vessels on the beach of Chattogram, Bangladesh, and another 34 were severely injured. Local sources also reported two deaths in Alang, India, and two deaths in Gadani, Pakistan. Some of these accidents took place onboard vessels owned by well-known shipping companies, such as Berge Bulk, Nathalin Co, Polaris Shipping and Winson Oil.

"The sector suffers from a serious lack of transparency, and it is expected that several accidents go unreported. Many more workers suffer from cancers and other occupational diseases, due to the long-term exposure to hazardous substances, including asbestos. We have launched a fundraising campaign to help the victims of unregulated shipbreaking in collaboration with new local partners in Bangladesh, and urge people or companies to support us so that proper medical treatment can be provided."

Sara Costa - Project Officer - NGO Shipbreaking Platform

"The Ministry of Energy and Infrastructure of the UAE has recently proposed a new regulation to promote sustainable ship recycling. It includes a clear ban on the use of beaching facilities. This is an important signal, which we hope will push UAE owners to rapidly exclude South Asian shores from their scrapping options and prompt the establishment of new sustainable facilities in the region."

Nicola Mulinaris - Senior Communication and Policy Advisor - NGO Shipbreaking Platform

South Korean Sinokor was 2020’s runner-up for worst corporate dumper. Their practice has not improved and they now top the list of 2021 worst dumper, having scrapped 12 of their carriers and LNG tankers in Bangladesh and Pakistan. One accident, causing a severe injury to a worker, occurred during the cutting of the Mediterranean Energy at SN Corporation yard in Chittagong. At the same yard, a total of two workers died and seven were injured last year.

The giant fresh fruit producers Del Monte and Dole, BULL, BW Offshore, Knutsen Group, Maersk, International Seaways, Petrobras and Stolt-Nielsen are other well-known companies that dumped their toxic ships on South Asian beaches in 2021.

The pandemic continued to affect the cruise shipping sector, with more companies taking steps to reduce operating expenses, including the retirement of relatively young vessels. Whilst major cruise lines have committed to use EU-approved recycling yards, other unscrupulous owners have opted for the more profitable beaches in South Asia. As revealed by the Platform and BBC’s File on 4, several passenger ships, including the COLUMBUS, the MAGELLAN, the MARCO POLO and the RIGEL I, illegally left EU waters for scrapping in India under the false pretext of further operational use.

Environmental and labour laws that regulate ship recycling exist, but they are ignored and easily circumvented by ship owners, often with the aid of scrap dealers, known as cash buyers. These pay the highest price for end-of-life vessels, and typically re-name, re-register and re-flag the vessels on their last voyage to the beaching yards. Almost half of the ships sold to South Asia in 2021 changed flag to one of the black-listed flags of Comoros, Palau and St Kitts & Nevis just weeks before hitting the beach. At least seventeen of these flag changes enabled ship owners to circumvent the EU Ship Recycling Regulation, including two units owned by Italian O&G company SAIPEM and two owned by Greek European Navigation. Their units ended up on a beach instead of being recycled in an EU-approved facility as the Regulation requires.

"The EU recently reaffirmed in its proposal for a new regulation on waste shipments that shipbreaking is a question of environmental justice. Yet, the infamous shipbreaking beaches of South Asia remain the preferred scrapping destination for many well-known European shipping companies. At least 1/3 of the tonnage scrapped in South Asia is European. The decisions to scrap these ships under conditions that would not be allowed in the EU are taken in offices in Hamburg, Athens, Antwerp, Copenhagen and other EU shipping hubs. This reality begs for the introduction and enforcement of measures that effectively hold the real beneficial owners of the vessels responsible, regardless of the flags used and/or of the ports of departure."

Ingvild Jenssen - Executive Director and Founder - NGO Shipbreaking Platform

The EU has so far approved 44 sites around the world as operating in a safe and environmentally sound manner. No South Asian yard has been approved due to the lack of capacity to safely handle and dispose of hazardous materials, and the lack of infrastructure to provide for emergency response. Only 37 vessels were recorded recycled in EU-approved facilities in 2021, which represent a minor fraction of what these yards are able to handle.

But, last year, five workers also lost their lives at the Turkish ship recycling yards in Aliağa. On 4 February, a worker died when hit by a steel block which he was torch-cutting in the secondary cutting area of EU-approved yard Simsekler. On 12 July, Yılmaz Demir and Oğuz Taşkın were onboard a cruise ship owned by Carnival at Metas yard when they were suddenly caught by flames. Yılmaz died on the spot, whilst Oğuz succumbed due to severe burns three days later at the nearby hospital. Two months later, Veli Bal and İlyas Bıdık were fatally hit by a rope that broke during dismantling operations at the same facility, which was recently acquired by EU-approved yard Ege Çelik.

"The causes of the accidents have sadly remained the same over the last 30 years. Workers, however, also fall sick and die of occupational diseases many years after being exposed to toxics. Cancer rates in Aliağa are much higher than the Turkish average. Illegal practices with regards to removal and disposal of hazardous materials, such as asbestos, are ignored. Aliağa is dying, along with its shipbreaking workers, under the very heavy load and pace of full commission books and growing profits for a sector that is cutting corners on safety and environmental protection. Europe needs to take the lead in demanding higher standards and should no longer assume that conditions are satisfactory just because they are seemingly compliant on paper."

Asli Odman - Academic and Volunteer - Istanbul Health and Safety Labour Watch

For the data visualization of 2021 shipbreaking records, click here. *

For the full Excel dataset of all ships dismantled worldwide in 2021, click here. * **

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

**[UPDATE 2 February 2022 - It has come to our attention that we have incorrectly attributed, based on information provided by shipping databases, the ownership of the vessel BP Jacky to UK-based group BP plc. We have therefore rectified the data concerning the beneficial ownership of this unit, which was controlled by Peruvian Transgas Shipping Lines instead.

Platform publishes South Asia Quarterly Update #28

Posted on 25/01/2022 by Nicola Mulinaris

Tag: beaching