Thesis Defence at the Netherlands Maritime University for MSc Shipping and Transportation degree.

1. METHODS TO ENHANCE THE SAFE AND GREEN SHIP RECYCLING CAPACITY IN INDIA 23-NOV-2010, ROTTERDAM

2. WHAT IS SHIP RECYCLING? Ship recycling is the activity of dismantling ships in order to recover components for reprocessing and re-use, including on-site storage and treatment. A highly mechanized process using a small labor force, which is found solely in Western countries in EU, UK and US. SAFE RECYCLING FACILITY ? SAFE RECYCLING FACILITY ? An intermediate process using some equipment but still maintaining a significant labor force, which can be found in Turkey, and China A non-mechanized process using a strong labor Force, which is found in India, Bangladesh and Pakistan. (Low Productivity, High rate of Fatalities and Environmentally Polluting) GREEN AND SAFE RECYCLING FACILITY ? GREEN RECYCLING FACILITY ?

3. INDUSTRY HISTORY The ship scrapping industry gradually shifted from industrialized western countries to Asia because of increased labor costs and stricter environmental regulations. Reduced demand for scrap steel in Europe and Far East Asia pushed major chunks of the markets to the Indian subcontinent which Employs low cost beaching Method and manual labor for ship breaking. Apart from India and Bangladesh, Pakistan, China and Turkey are the other major players in the scrap trade.

4. SHIP BREAKING MARKET (Bio intelligence service, 2010)

6. Demo ship values exceeded old trading prices

7. ships destined for scrap went for tradingCargoes available for scrap vessels

8. Demo buyers became ship owners

10. expected to be record years… 900-1,000 ships

11. USD 2 billion annual turnover

12. Indian Subcontinent do 75% of the business

14. Local banks withdrew credit lines

15. halt in local Letters of Credit (LCs)

16. Western banks unable to negotiate LCs

17. Relentless supply of ships

18. More renegotiations than ever before.

20. Create more capacity by increasing the number of beaching plots or yards

22. A Multi Criteria Socio-Economic and Environmental Analysis

23. Case StudyCONCLUSIONS RECOMMENDATIONS

25. Decontamination and gas-freeing;

26. Planning for safe demolition;

27. Recycling and;

28. Safe waste managementSHIPS FACILITY OBJECTIVE

30. Cost and (potentially) environmental effective source for steel production

31. Significant legacy pollution costs

33. Widespread asbestos abuse

35. Significant source of unskilled employment

37. Niche steel market player

39. 173 plots developed on 10 km. long coast.

40. High breaking potential of >3-5 million MT per annum

42. Beaching of ships,

45. End-of-life ships are ‘beached’ in India containing Hazardous materials (PCB’s, Asbestos, lead, mercury, Anti Fouling paints and plasticscausing environmental damage

46. Ship breakers ask for ‘pre-cleaned’ ships!

48. Beaching can be banned, but individual parties can only Implement it

49. Basel and EU Waste Shipment Regulations have termed export of HW ‘illegal’. Pre-cleaning to be carried out by Ship Owners. Pre-cleaned ships can then be demolished in India

51. Prevention of adverse effects to human health and environment (ADVERSE EFFECTS PREVENTION)

52. Safe and Environmentally sound management of HW (ESM)

53. Emergency preparedness and response (EMERGENCY PREP.)

54. Worker safety and training (TRAINING)

55. Transparency and reporting of incidents, accidents, occupational diseases and chronic effects (TRANSPARENCY)

56. Exchange and communication of Information (COMMUNICATION)

57. Treatment of HW (DISPOSAL)

58. Pollution prevention from spills (POLLUTION PREV.)

59. Monitoring and publication of progress (MONITORING)

60. External audit/Third Party audit ( EXTERNAL AUDITS)

61. Environmental and/or Occupational health and safety certification and management (OHSAS) Determine Criteria Or Objectives For Evaluating Ship Recycling Facilities As Per Ship Recycling Convention ( SRC 2009) A Three Levelled System With Levels From The Sub Standard, ThroughMinimum A Level To TheTop AAA Level .

63. Create more capacity by increasing the number of beaching plots or yards!

64. Capacity Building by Constructing new Green Recycling Docking Facilities!HOW TO ENHANCE THE SAFE AND GREEN RECYCLING CAPACITY IN INDIA ? Select The Best Possible Alternative With The Help Of (MCE) MCE will require clear objectives to be met or achieved with Alternatives Or Options The Criteria To Classify All Recycling Facilities By IMO SRC, 2009 Will Be Our Objectives The Hypotheses Become Our Alternatives or Options Weight Attribution of the Objectives will be carried out to determine importance level Running or Operating Cost Estimations of the three Options will be evaluated Option giving MaximumSocio-Economic-Environmental benefits or Valueper Cost will be the Best Possible Alternative and our potential solution WHICH HYPOTHESIS OR ALTERNATIVE YIELDS THE BEST SOLUTION ? MCE.

66. Alang Ship Breaking Capacity 3-5 Million LDT/Year

67. Mumbai Ship Breaking Capacity : no validated info.

68. Alang annual Operatiing Costs for 173 plots (option 1)

69. Alang annual Operatiing Costs with additional beaching plots>173 plots (option2)

70. Cost of 1 Green dock of size 0.5 MLDTA in India with HW cleaning station of 0.25 MLDTA with additional Depreciation costs for a period of 20-30 years (option3)

71. SRC Criteria

72. HypothesesASSUMPTIONS Demand 11.2Million LDT/Year Alang Capacity 5.0 Million LDT/Year Mumbai Capacity 0.5 Million LDT/Year 1.0 Million USD/Annum 1.5 Million USD/Annum 115 Million USD ( not including Inflation ) MCE Objectives Alternatives or Options .

74. Government Initiatives for the Shipbuilding Sector with Shipbuilding Subsidies at the cost of Ship breaking

75. Implementation of the IMO regulations deferredfor phasing out single hulls and old tankers

76. Proximity to major ship breaking sites (Alang and Mumbai)

78. MCE values green recycling yards much more than ordinary beaching facilities

80. The deaths, diseases and ill effects of unsafe practices, pollutants and HW cannot be prevented till enforcement of punitive regulations is effected

82. Improve labor, work, and health conditions. Workers housing and employment terms will need a major overhaul. Much has to be seen on ground in terms of infrastructure like providing housing, sanitation, water, electricity and insurance coverage for the beleaguered workers

83. Complete Pre-cleaning may become financially and operationally infeasible but partial cleaning will help in reducing the burden in developing countries like India. It is suggested that partial cleaning be mandatorily enforced to tackle HW dumping and related diseases in ship breaking workers.

85. More than the timing of the adventure, Government’s step sisterly attitude dealt a major blow to green ship recycling in India. The GOI, needs a proactive, and comprehensive approach to revive the Ship Breaking Industry.

86. International stake holders (IMO and other countries) need to initiate on a Fund Mechanism to provide the necessary impetus for Green Recycling facilities.