Press Release – Bangladesh High Court issues contempt rule against 14 Government Officials: ministries and shipbreakers asked to account for non-compliance with 2009 judgement

The Bangladesh High Court yesterday issued a contempt rule asking 14 Government officials and the president of the Bangladesh Ship Breakers Association (BSBA) to explain why they have not implemented the Court’s judgement dating March 2009. The Court now demands arguments from the respondents as to why they should not be held responsible for contempt of the court’s rulings and “for deliberately and persistently ignoring safety of the workers and safety and integrity of the environment”. The Government was also meant to form an independent committee for the impartial supervision of the shipbreaking activities. The Court decision is the result of a contempt petition submitted by the Bangladesh Environmental Lawyers Association (BELA), the Platform member organisation that has been fighting in the courts against the shipbreaking industry’s violation of the law since 2003.

"This step taken by the High Court fundamentally challenges the apathy of the Government agencies in regulating the shipbreaking sector as well as the strong culture of impunity the owners of ship‎breaking yards enjoy due to their political connections. This must end. We cannot accept any more deaths of labourers and someone has to finally take responsibility for the fatal accidents."
Rizwana Hasan - Chief Executive - Bangladesh Environmental Lawyers Association (BELA)

BELA has also asked the Court to suspend the activities of 42 shipbreaking yards. In the case of 37 yards, BELA has accused the companies of unsafe working conditions resulting in accidents and deaths, and for 7 yards BELA has provided information on how these companies violate the requirements for their environmental clearances. BELA is gathering more evidence so the number of yards to be closed is likely to raise even further.

"Despite the high-profile Court order given in March 2009, both the shipbreaking industry and responsible ministries have remained inactive in addressing the pressing issues related to both occupational health and safety and to environmental pollution and hazardous waste dumping. We insist that they will not be allowed to get off lightly yet another time."
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

In March 2009, the High Court had ruled that the Government is to set up a committee to ensure the impartial supervision of the shipbreaking industry. The Court also found that the shipbreaking yards did not hold the necessary environmental clearance to operate. As a consequence, the yards were temporarily shut down. The Court demanded that the Government comply with the requirements under the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. This included the respect for Prior Informed Consent (PIC), that is, the approval by Bangladesh of the import of ships based on the amount of toxics on board the end-of-life vessels.

 

The political clout of the shipbreaking industry, amongst them members of Parliament and other powerful politicians as well as some of the most influential industrialists in the country, managed hastily issued environmental clearances for their yards. For the import of end-of-life vessels to Bangladesh, the authorities blindly accept fake certificates stating that all the old ships are free of hazardous waste. The authorities never ask anyone to follow the procedure of Prior Informed Consent. The independent Committee, which according to the Court should also include non-government organisations and labour unions, has never been made functional – thus, there is no impartial supervision of the industry. BELA argues that at least 93 workers have died since the 2009 Court order. All this has passed without consequences.

 

Both the shipbreaking industry and the Government of Bangladesh are now asked to give account of their actions. If they fail to produce sufficient arguments, responsible persons are likely to be sentenced and yards may be closed down.

 

Click here to access The Daily Star's article covering the issue.

 

Workers without personal protective equipment, Chittagong shipyards, 2014 Copyrights: NGO Shipbreaking Platform, 2014

 

 

Platform News – European Union sets a global standard for sustainable ship recycling: NGOs call on shipping companies to use EU approved yards

Today, the European Commission (EC) publishes technical guidance for ship recycling facilities that want to be approved under the EU Ship Recycling Regulation. The European Union (EU) mirrors with this step the call by environmental and human rights NGOs for a relocation of ship recycling to platforms that can ensure sustainable practices. Facilities that intend to be listed as EU-approved will need to ensure safe working conditions, pollution control including proper downstream waste management and enforcement of international labour rights.

"Recycling yards that want to make it on the EU list of approved facilities need to meet high environmental and safety standards. The EC is clear in its message: an unprotected beach is never going to be an appropriate place for a high-risk heavy industry involving hazardous waste management."
Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform

According to the EU, ship recycling is an industrial activity that needs industrial methods, equipment and standards. Workers and the environment anywhere in the world have the same right to protection under the EU Regulation. Attempts by some Member States with strong shipping interests to water down the requirements of the Regulation, more specifically, to accept low-cost beaching facilities in South Asia as environmentally friendly and safe for workers in order to make it on the list, have not been successful.

 

The EU list of approved ship recycling facilities [1] will become a global reference point for sustainable ship recycling. It rewards the companies that already have or are willing to invest in the necessary infrastructure and the employment of fully trained workers to ensure safe and environmentally sound recycling practices. The yards responsible shipping companies such as Hapag Lloyd, Wilhelmsen, Grieg and Royal Dutch Boskalis work with in Europe, China and Turkey will most likely feature on the EU list after having provided evidence that they comply with the requirements and in some cases also having improved their practices in order to meet the European standard. By promising to clearly distinguishing good from bad practices [2], the EU list has also already prompted the establishment of new facilities that see opportunities for an increased market share.

 

For ship owners, the EU list will be the only guarantee that their end-of-life vessels are not causing harm to workers and the environment. Backed by ‘independent verifiers with qualifications’ and audits by the EC or agents acting on its behalf, a further important warranty lays in the right NGOs have to submit complaints and concerns to the EC regarding the functioning of a facility and with that prompt an on-site visit to establish whether the facility should be removed from the list.

"While only vessels sailing under an EU flag will be legally obliged to use an EU approved facility, any shipping company around the world with a responsible policy can use the EU listed facilities to prove their effort."
Ingvild Jenssen - Policy Director - NGO Shipbreaking Platform

 

NOTES

[1] The EU list of approved ship recycling facilities is expected to be published by the end of 2016. Applications from facilities that want to feature on the first batch of the list need to be sent to the EC by 1 July 2016.

 

[2] Unlike the industry driven International Maritime Organisation (IMO) the EU is not rubberstamping the unnecessarily risky activity of managing reverse logistics of ship material management on a beach.
The EU requirements go beyond the IMO’s Hong Kong Convention (HKC), a piece of law which was adopted in 2009, but so far has only been ratified by four countries and is unlikely to enter into force in due time. More than 100 global environmental and human rights organisations, the UN Special Rapporteur on Human Rights and Toxics and European policy makers have denounced the HKC for merely rubberstamping the status quo.

 

 

Press Release – NGO publishes 2015 list of all ships dismantled worldwide

Ship owners found to be irresponsible: data on shipbreaking practices in 2015 reveal appalling record

Click here to download the list of all ships dismantled worldwide in 2015

 

Ignoring industry leaders and human rights and environmental organisations, ship owners continue to profit from dangerous and dirty shipbreaking practices on South Asian beaches in 2015, according to new data released today by the NGO Shipbreaking Platform. 768 large ocean-going vessels were sold to the scrap yards last year. 469 were broken on the beaches of India, Pakistan and Bangladesh where shipbreaking yards do not provide fundamental labour rights, ignore international waste trade law, and fail to respect international environmental protection standards.

 

One of many accidents that killed or maimed shipbreaking workers last year was a major gas explosion at Shitol Enterprise, a shipbreaking yard in Bangladesh. A gas cylinder burst killed four workers immediately and severely injured another four. The vessel they were breaking was sold to Shitol Enterprise by the Greek shipping company Universal Ship Management Corporation, and sailed under the flag of St. Kitts and Nevis, a typical low-cost, end-of-life flag of convenience. Greek owners by far outstripped ship owners of other nationalities by having sold the most end-of-life vessels to dirty and dangerous shipbreaking sites in South Asia, and for the first time in many years, Bangladesh was the world’s number one destination for scrap ships.

 


DUMPERS 2015 - examples of particularly bad practices

 

The worst dumper prize goes to IDAN OFER, son of shipping magnate Sammy Ofer. Idan Ofer owns QUANTUM PACIFIC GROUP and has a controlling stake in Israel's largest publicly traded company, ISRAEL CORPORATION. Combined, these shipping companies sold the highest number of vessels for substandard breaking operations in 2015: nine in total, with six of them going to Bangladesh, where conditions are known to be worst.

 

GREEK SHIP OWNERS sold the most ships to South Asian shipbreaking yards in 2015, with 87 ships in total. Since the NGO Shipbreaking Platform started to compile data on world-wide ship dismantling practices in 2009, Greek shipping companies have unceasingly topped the list of owners that opt for dirty and dangerous shipbreaking. Backed by the Greek government, they continue to refuse liability for the damage done to workers and the environment in South Asia.

 

Despite being part of several sustainable shipping initiatives and boosting environmentally friendly technologies on-board operational ships, well-known South Korean shipping companies such as HYUNDAI and HANJIN; Taiwanese container giant EVERGREEN; and Japanese companies including MOL, K-LINE and the TOYOTA owned TOYOFUJI sold vessels for breaking in Bangladesh in clear contradiction of their own company values and standards. SOUTH KOREAN SHIP OWNERS sold 27 ships exclusively to South Asia, mostly to Bangladesh. Also JAPANESE SHIP OWNERS sold exclusively to South Asia, many to Bangladesh.

 

German shipping company NORDDEUTSCHE VERMÖGEN sold three vessels to the beaches of India and Bangladesh – the Northern Glance, the Northern Diversity and the Northern Vitality. The latter had been arrested in the port of Wilhelmshaven in Germany in 2012 to prevent an imminent illegal export to India. Despite awareness of the poor conditions at the South Asian shipbreaking yards NORDDEUTSCHE VERMÖGEN did not care about their vessels hitting the beaches, one of which went to Bangladesh - no lesson learnt. See our latest blog-post on the case here.

 

Polish government-owned POLSTEAM sold ships to Bangladesh and Pakistan – and refused to take responsibility for their own actions following an alert sent by the NGO Shipbreaking Platform. Worse, the Polish government has likewise not acted.


 

"Despite a lot of international attention on the problems of shipbreaking on the beaches of South Asia, the statistics for 2015 show that the vast majority of ship owners have not changed their practice for the better. On the contrary, most have opted for one of the worst shipbreaking destination in the world – Bangladesh, where children are still illegally exploited to break ships manually on tidal mudflats. [1] "
Patrizia Heidegger - Executive Director - NGO Shipbreaking Platform

Ship owners sell their vessels to South Asian yards via cash-buyers, companies that specialise in the trade of end-of-life tonnage. Cash-buyers promise ship owners not only the highest price, but also to rid them of their responsibility to properly deal with the end-of-life management of their ships. [2] Ships contain large amounts of toxic materials such as oil sludge, asbestos and paints laden with heavy metals and would yield less profit at end-of-life if sold to a recycling facility that firmly follows environmental and occupational health and safety standards.

 

One sign of hope, is a group of leading ship owners that have vowed to take responsibility for clean and safe end-of-life management and demonstrate that alternatives are available. The European Union is also expected to publish a list of approved ship recycling facilities worldwide by the end of 2016. This will satisfy the call from those that demand better practices, including investors such as ABN-Amro and cargo owners such as H&M, Stora Enso and Phillips – none of whom wish to be associated with polluting and harmful end-of-life management of old ships. While, only vessels sailing under an EU flag will be legally obliged to use an EU approved recycling facility, any ship owner can nevertheless opt for an EU approved facility for its non-EU flagged ships on a voluntary basis. The NGO Shipbreaking Platform therefore demands that shipping companies and their investors only allow their vessels to go to yards listed on the EU list. Moreover, governments of the world’s leading maritime nations, such as Greece and Germany, must likewise take steps to ensure national use of the EU list. Introducing a financial incentive based on the polluter pays principle would go a far way in pushing irresponsible ship owners towards sustainable ship recycling. [3]

 

For detailed figures and analysis on ships dismantled in 2015, click here.
For background information on global ship dismantling practices, click here.

 

 

NOTES

 

[1] Last year, in Bangladesh alone, 16 workers lost their lives in explosions, by falling from heights or by being crushed by falling steel plates. At least 22 workers were seriously injured, and some of them are still awaiting proper medical treatment. Many more workers became ill from inhaling asbestos fibres and toxic fumes such as those released when cutting the ships with blow torches. According to the ILO and leading trade unions, shipbreaking on the beaches of South Asia is one of the most dangerous jobs in the world. Pakistani shipbreaking yards in Gadani also lack proper infrastructure and facilities to protect workers or to properly manage the hazardous wastes found on-board ships. Despite reported improvements in four Indian yards that have received a Statement of Compliance with the requirements of the International Maritime Organisation’s Hong Kong Convention from Japanese classification society ClassNK, concerns persist related to the continued operations in unprotected tidal waters; the lack of proper accommodation and medical facilities for workers; and the lack of proper downstream waste management. Six workers died in accidents at shipbreaking yards in India last year, however, the authorities do not disclose the accident record to the public. Yards in other parts of the world, are not necessarily all operating in line with standards that ensure sustainable ship recycling. While many ship recyclers will seek to have their facility listed on the EU list, only those that comply with the requirements and do not use unprotected beaches and coastal areas causing pollution of the marine environment, will be approved.

 

[2] Cash-buyers, such as GMS and Wirana, are responsible for almost all sales to substandard yards in South Asia. For more on the role of cash-buyers and especially their use of Flags of Convenience at end-of-life, see our report: What a difference a flag makes. Why ship owners’ responsibility to ensure sustainable ship recycling needs to go beyond flag state jurisdiction (2015).

 

[3] Possibilities for introducing a financial incentive for safe and clean ship recycling is being discussed at the European level. The idea is that all ships entering European waters will need to hold a ‘ship recycling licence’. Money set aside would only be paid back to the last ship owner upon proof that the ship has been recycled in a safe and environmentally friendly way.