The link between cash buyers and environmental compliance...earned his Ph.D. in ship recycling from...
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The link between cash buyers and environmental compliance 3 February 2021 • 09:00-09:45 GMT Sponsored by #shiprecycling Ship Recycling Webinar Week Part of 2-5 February 2021 Presentation & sponsor documents: Page 2: M Abdul Rahim, ClassNK (Nippon Kaiji Kyokai) Page 9: Jamie Dalzell, GMS Page 16: M Zahirul Islam, PHP Ship Breaking & Recycling Industries Page 23: James Turner QC, Quadrant Chambers Page 30: GMS company information
Transcript of The link between cash buyers and environmental compliance...earned his Ph.D. in ship recycling from...
The link between cash buyers and environmental compliance3 February 2021 • 09:00-09:45 GMTSponsored by
#shiprecycling
Ship RecyclingWebinar Week
Part of
2-5 February 2021
Presentation & sponsor documents:Page 2: M Abdul Rahim, ClassNK (Nippon Kaiji Kyokai)Page 9: Jamie Dalzell, GMSPage 16: M Zahirul Islam, PHP Ship Breaking & Recycling IndustriesPage 23: James Turner QC, Quadrant ChambersPage 30: GMS company information
2021/1/25 01
Recycling Yard Certification
in Compliance to
Hong Kong Convention
Dr Abdul Rahim
Corporate Officer
Middle East and South Asia
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RIVIERA Webinar Series
03 Feb 2021
22
ClassNK Guidelines for Ship Recycling
Facilities incorporating the IMO Guidelines
(Res. MEPC.210(63)),
ClassNK carries out technical verification of ship
recycling facilities and issues Statement of
Compliance in line with HKC
33
Worker safety and health compliance
✓ Worker health and safety
✓ Key safety and health personnel
✓ Job hazard assessment
✓ Prevention of adverse effects to human health
• Safe-for-entry and safe-for-hot-work procedures
• Drums, containers and pressure vessels
• Prevention of falling from heights
• Gear and equipment for rigging and materials handling
• Personal protective equipment, etc.
✓ Emergency preparedness and response plan
✓ Fire and explosion prevention, detection and response
Sticker for Gas Free
for Hot Work
Taking care of
LPG and O2 cylinders Gas detectorGuard rail to prevent
falling from heights
First aid training at
Red Cross
Drill for Firefighting
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Environmental compliance
✓ Environmental monitoring
✓ Management of Hazardous Materials (HM)
✓ Environmentally sound management of HM
• Asbestos
• PCBs
• Ozone-depleting substances (ODS)
• Paint and coatings
• Hazardous liquids, residues and sediments
• Heavy metals
✓ Prevention of adverse effects to the environment
• Spill prevention, control and countermeasures
• Storm-water pollution prevention
• Debris prevention and control
• Incident and spills reporting procedures
Packing of asbestos-
containing material
(ACM) in special bag
Hazardous Waste
Manifest
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HKC SoC Milestones:
2012 world’s first SoC in China
2015 South Asia’s first SoC in India
2017 added SoC in Turkey
2020 added SoC in Bangladesh
The number of valid SoC: ClassNK continues SoC verification with periodical audits
India 35
Turkey 3
Bangladesh 1
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Ambulance owned by
SRF in standby and also
one doctor at the site
One gas cutter is operating
under supervision of supporter
Recent Certification in Bangladesh
Checking workers’
understanding
through interview
Demonstration of
evacuation drill from
vessel
7
ClassNK keeps on
encouraging safe and
environmentally sound ship
recycling through third-party
verification
1www.gmsinc.net
Riviera Maritime - Ship Recycling Webinar
The Link Between Cash buyers and
Environmental Compliance
3rd February 2021
www.gmsinc.net
Sustainable Ship and Offshore Recycling
Program (SSORP)
GMS SSORPwww.gmsinc.net
SSORP - A Brief Overview
1 The preparation of the Inventory of Hazardous Materials(IHM)
3 Assisting the ship recycling yard in preparing Ship Specific Recycling Plan (SRP) as per Resolution MEPC.196 (62)
4 Ensuring safe handling and disposal of hazardous wastes identified in the IHM
6 Updating status of vessel recycling through weekly/ monthly recycling progress reports to ship owners
7 Facilitating Ship owners to visit recycling yards to ensure safe and environmentally sound recycling as per the submitted SRP
5 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
2 Evaluation of the adequacy of the Ship Recycling Facility Plan (SRFP)
8 A detailed vessel recycling completion report
GMS SSORP
www.gmsinc.net
SSORP is an Extra Layer of:
❑ Audit
❑ Enforcement
❑ Compliance
❑ Safety Assurance
❑ Sustainable Recycling
www.gmsinc.net
❖ Capital providers & Ship owners are assured that their ships are
sustainably recycled meeting ESG policies.
❖ Headline risks and defamation risks are eliminated.
❖ Recycling vessels at HKC yards in the Indian Subcontinent ensures
appropriate residual value for the ships.
❖ Continuous monitoring of sustainable ship recycling processes.
Advantages of SSORP
www.gmsinc.net
GMS’s Approach is to Educate
❑ Free safety trainings to the Yard Workers at Alang, Chattogram and Gadani
❑ Thought Leadership Articles
❑ Demystifying Ship Recycling
❑ Green Briefings
❑ GMS Weekly
Sustainable Ship Recycling
• Key Improvements:
• Leading IACS associated ClassificationSocieties issue HKC Statement of Complianceto recycling facilities
• Japan and Norway extended technicalsupport for improving recycling facilities inIndian Subcontinent
• HKC compliant yards have developedinfrastructure for safety and welfare ofworkers and for environmental protection.
• Infrastructure consists of:
• Establishment of national controlling bodies
• Training facilities for workers
• Impermeable floors
• Use of Cranes
• Disposal facilities for Hazardous Materialsrecovered during ship recycling
7www.gmsinc.net
Improvements in Sustainable Ship Recycling
Mohammed Zahirul Islam, Managing Director, PHP SBRIL
Perception………
Perception………
Reality……………….
Reality……………….
Recognition………….
Thank you.
www.quadrantchambers.com
Incentivising Good Practice in Ship Recycling
Cash Buyers and Environmental Compliance –
Riviera Maritime Media Webinar 3 February 2021
James M. Turner QC
www.quadrantchambers.com
❖ Why Cash Buyers and not Brokers?
❖ Why Reflagging?
❖ Why does it matter?
Three Questions
www.quadrantchambers.com
❖ When is a ship “waste”?
❖ No export under Basel Convention –
From OECD to non-OECD states
To/from non-member states
If destination waste management sub-standard
❖ EU flagged ships
The Legal Tangle
www.quadrantchambers.com
❖ Legal Minefield
❖ Potential Criminal Sanctions
❖ Attraction of Out-sourcing
The Result
www.quadrantchambers.com
❖ Purpose of Basel Convention
❖ First World Ship Recycling Scarce and Expensive
❖ Perverse Incentive of well-meaning Rules
Why Does it Matter?
www.quadrantchambers.com
❖ Incentivising Best Practice – how and by whom?
❖ Expansion of EU List to Sub-Continent and China?
Questions for Discussion
www.quadrantchambers.com
Quadrant House, 10 Fleet Street, London EC4Y 1AU T: +44 (0)20 7583 4444 F: +44 (0)20 7583 4455
GMS LEADERSHIP 1www.gmsinc.net | [email protected]
SUSTAINABLE SHIP AND OFFSHORE
RECYCLING PROGRAM (SSORP)
www.gmsinc.net | [email protected]
GMS LEADERSHIP 2www.gmsinc.net | [email protected]
Ships are recycled once they complete their useful life and are no longer economically viable to
operate. The stakeholders’ lack understanding of recycling ships due to
false information about the adverse environmental impacts and working
conditions in recycling facilities leads to ambiguity and confusion
among shipowners and finance providers. Following imprecise ship recycling
practices could lead to prosecution and conviction of shipowners. However, with expert guidance,
ships can be recycled safely, in an environmentally sound legitimate way.
SHIP RECYCLING
GMS LEADERSHIP 3www.gmsinc.net | [email protected]
PRESENT PRACTICE OF SHIP RECYCLING
Ship owners deliver the vessel directly to the
recycling facilities.
95%of the remaining vessels are recycled
at yards located elsewhere in the
world, including the EU.
and more End-of-Life ships are
recycled mainly in India, Bangladesh, Pakistan, Turkey, and China. 05%
Ships are sold to cash buyers ‘as is where is’ and
‘delivered’ basis.
Recycling facilities are selected based on the flag of the
vessel. Ships flying the EU flag should be recycled only
in the yards approved by the EU.
Lack of recycling capacity in EU approved yards
compels EU shipowners to re-flag ships to non-EU flags
when they approach the end of life.
The ships registered outside the EU nations are recycled
either in the Hong Kong Convention (HKC) compliant or
non-compliant recycling facilities.
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2
3
4
5
GMS LEADERSHIP 4www.gmsinc.net | [email protected]
RISK FACED BY CAPITAL PROVIDERS
Ships’ capital providers are usually regional and international banks. Many of these large banks are
the signatory to the Poseidon Principles. As a signatory to the Poseidon Principles, banks
ensure that the vessels financed by them are built and operated responsibly. Moreover, the
banks must comply with their own Environmental, Social, and Governance (ESG) policies for
recycling the ships and offshore units. Capital providers face the following risks when vessels are
recycled.
Headline Risk
Other stakeholders target
the capital providers if
vessels are not recycled
sustainably
Risk of actual non-
compliance of own
ESG policies
Financial risk due to a
significant contraction of
Residual Value (RV) of
the vessels
1 2 3
Prosecutorial risks Potential risks
of accidents and pollution
during the ship recycling
process
4 5
GMS LEADERSHIP 5www.gmsinc.net | [email protected]
SUSTAINABLE SHIP RECYCLING
Sustainable ship recycling is a practice where ships are recycled:
In an environmentally
safe and sound way
The HKC yards and EUSRR approved yards ensure that ships are recycled sustainably.
Moreover, in India, ship recycling is based on the Circular Economy philosophy.
The Government of India has ratified HKC and assigned the Directorate General of
Shipping as a National Regulatory Authority for overseeing ship recycling with stringent
regulatory measures. It has developed infrastructure to handle waste and pollutants
generated from the recycling ships. ClassNK, RINA, LR, and IRS are the classification
societies that are also members of IACS that have audited India’s recycling facilities and
issued Statement of Compliance (SoC) to the compliant yards.
SUSTAINABLE SHIP RECYCLING IS THRIVING
IN INDIA BECAUSE OF THE
‘3RS – REDUCE, REUSE, AND RECYCLE’
THE WASTE HIERARCHY PRINCIPLE IS INDIA’S
CULTURE FOR AGES.
Following safe
practices and training
for the Recycling
facility workers
Keeping records and
measurements of key
data points
In a transparent way Meeting the strong
governance criteria
between all
stakeholders
Achieving appropriate
residual value of the
asset
1 2 3 4 5 6
GMS LEADERSHIP 6www.gmsinc.net | [email protected]
SUSTAINABLE SHIP & OFFSHORE RECYCLING PROGRAM (SSORP)
Selection of the yard according to the
type and size of the vessel
Verification of the Ship Recycling
Facility Plan (SRFP)
Validation of the ship-specific Ship
Recycling Plan (SRP)
Preparation of Inventory of
Hazardous Material (IHM)
Gap Analysis for IHM Qualitative and Quantitative data
collection from 281 checkpoints
covering HKC, ISO & HSEQS
requirements
Photographic evidence is gathered
for all recycling activities
Provision of periodic reports
(weekly/monthly) to the
capital providers
GMS team has developed a program to provide an End-to-End solution for ensuring sustainable ship recycling. The SSORP steps in when the ship-owner
decides to recycle a ship. Our team of experts monitors the complete recycling process from the beginning until completing the recycling process.
SSORP is implemented in the following steps:
Monitoring safe working practices in
the recycling practices
Monitoring of appropriate hazardous
waste identification, marking, segregation,
storage, and disposal measures
Facilitate the visits of capital providers and
ship owners to the recycling facilities during
the recycling process to ensure compliance
GMS LEADERSHIP 7www.gmsinc.net | [email protected]
ADVANTAGES OF SSORP TO CAPITAL PROVIDERS
Capital providers are assured
that their financed ships are
sustainably recycled by
shipowners meeting ESG
policies.
Headline risks and defamation
risks are eliminated.
Recycling vessels at HKC yards
in the Indian Subcontinent
ensures appropriate residual
value for the ships.
Continuous monitoring of
sustainable ship recycling
processes.
As the former-head of IMO's Ship recycling
committee and the "Father" of the IMO's Hong
Kong Convention for the Safe & Environmentally
Sound Ship Recycling standards, Dr. Mikelis is
an internationally renowned expert in ship
recycling regulatory affairs and a regular
speaker at global conferences.
DR. NIKOS MIKELIS
Non-Executive Director at GMS.
Pursuant to his Master’s degree in
Environmental Engineering, Dr. Hiremath
earned his Ph.D. in ship recycling from India’s
prestigious IIT Bombay. His doctoral thesis
was on the "Integrated Risk Assessment
Framework for the Development of Best
Practices in Ship Recycling’.
DR. ANAND HIREMATH
Lead Coordinator of SSORP
He has been among the Llyod’s List of Top 100
Most Influential Persons in Shipping in the last
eleven years and 50 Most Influential in Tanker
Shipping and Trade for the year 2018 and 2019.
DR. ANIL SHARMA
CEO and Founder of GMS
He is a Chief Engineer with a degree in Marine
Engineering from the prestigious Marine
Engineering & Research Institute, India. He
holds a Master’s degree in Energy, Trade, and
Finance from Cass Business School, London.
KIRAN THORAT
Executive, Sustainable Ship and
Offshore Recycling Projects at GMS.
TEAM MEMBERS
7www.gmsinc.net | [email protected]
GMS LEADERSHIP 8www.gmsinc.net | [email protected]
2020
SSORP was commenced in 2012 and
monitored sustainable recycling of 82
vessels of different types until 2020.
We collectively conducted more than
120 free training programs for the
recycling facility workers at Alang,
Chattogram, and Gadani.
GMS was Finalist for the Maritime
Standard Green Shipping Award 2020
(ADNOC Logistics & Services,
Hapag-Lloyd, Kuwait Oil Tanker
Company, LUKOIL Marine Lubricants
DMCC, and Shipping Corporation of
India were the other finalists.)
SSORP ACCOMPLISHMENTS
2019
GMS was Finalist for the
Seatrade Green Shipping
Award 2019 (ABS, DNV GL Maritime,
HullWiper Ltd, Seacor Offshore Dubai
LLC were the other finalist)
2018
GMS was the Winner of Sea trade
Green Shipping Award 2018
(Abu Dhabi Ports, Zara Maritime,
Bluewater Trade Winds Pvt Ltd,
Monjasa, The Shipping Corporation
of India were the Finalists)
GMS was Finalist for the Lloyd's List
Global Environmental Award 2018
(DNV GL, Forecast Technology, Jan
De Nul Group, Kuwait Oil Company,
and Vancouver Fraser Port Authority
were the other Finalists)
GMS was Finalist for the Maritime
Standard Green Shipping Award
2018 (Emarat Maritime LLC,
HullWiper Limited, Kuwait Oil Tanker
Company, Monjasa, and Orient
Overseas Container Line Limited
were the other finalists)
8www.gmsinc.net | [email protected]
GMS PUBLICATIONS
Dr. Mikelis authored a book entitled
“The Recycling of Ships,” mitigating the
gap in public understanding of ship
recycling’s functionalities and economic
aspects.
Dr. Hiremath published the first
practical handbook on ship recycling,
entitled
“The Green Handbook: A Practical
Checklist to Monitor the Safe and
Environmentally Sound Recycling of
Ships,” highlighting the procedures of
the SSORP.
