History of Ship Breaking Industry took place in port Until the late 20th century, ship breakingcities of developed countries such as the UK and the US Today, most ship breaking yards are in developing countries,with the largest yards at Gadani in Pakistan, Alang in India,Chittagong in Bangladesh and Aliagain Turkey This is due to lower labor costs and less stringentenvironmental regulations dealing with the disposal of lead paintand other toxic substances China used to be an important player in the 1990s. It is nowtrying to reposition itself in more environmentally friendlyindustries
Ship Breaking Ship recycling offers the most environmentally sustainable way of disposing of old vessels, with virtually every part of the hull and machine complex being reused or recycled as scrap metal. Ship breaking is a type of ship disposal process involvingthe breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there isso much wear that refitting and repair becomes uneconomical Ship breaking allows materials from the ship, especiallysteel, to be reused Ships contain many hazards that can have significantdetrimental effects on humans and the environment if notdealt with properly.
Alang – A Lucrative Option The beaching method depends on skilful harnessing of zero costtidal energy at sheltered coastal locations and warrants the leastcapital investment It could be argued that workers were earning well by Indianstandards. Also, the shipbreakers were providing jobs for the poorestof Indias poor and bringing valuable income to Gujarat. The labourers are migrants who have come to Gujarat from thepoorest states in India - from Bihar, Orissa and Uttar Pradesh Considering the favorable parameters for beaching method likehigh tidal range, firm seabed, gentle seaward slope etc., it wasdecided to set-up a ship breaking yard on the western coast of Gulfof Cambay near Alang village
Alang Ship Breaking Industry Background Alang is a census town in Bhavnagar district in the Indian state of Gujarat Ever since its inception in 1982, Alang has emerged as one of the choicest ship- scrapping destinations for the ship owners around the world The importance of ship breaking as a potential source of raw material for the re- rollers was recognized in early 80s
Pollution by ship breaking yardsThe ship breaking industry creates numerous hazards forthe coastal and marine environmentPollution from ship breaking yards during breaking and scrapping the old ships. 6
Pollution by ship breaking yards Heavy metals Poor working condition High concentrations Oil & grease 85% of total weight is steel. Coating 10 to 100 tons of paint contain Pb, Cd, organotins, As, Zn, Cr. And also contain a wide range of other hazardous wastes, sealants containing PCBs, up to 7.5 tones of asbestos. 7Several thousands liters- oil, polychlorinated biphenyls.
Ship breaking facilities: potential discharges • Hazardous waste – Anti-fouling systems • Liquid waste – Radioactive – Hydro blast streams Substances – Anti-fouling outwash • Solid Waste • Storm water discharge – Dry and liquid bulk – Fuel and hydraulic leaks • Bilge Water • Oil • Ballast Water • Cleaning agents – NutrientsBangkok, ThailandJune 2009 8
Ship Breaking Industry Concern AreasShip breaking activities are beingcondemned as the whole processentails a series of risky tasks and as adepot of hazardous substances, whichpose threats to the ambient environmentand working peopleDepending on their size and function,scrapped ships have an unladed weightof between 5,000 and 40,000 tones (anaverage of 13000+)95% of which is steel, coated withbetween 10 and 100 tones of paintcontaining lead, cadmium, organotins,arsenic, zinc and chromium
Alang Ship Breaking Concern Areas In Alang old Ships containing these materials are being cut up by hand, on open beaches, under inhumane working conditions Ships also contain a wide range of other hazardous wastes, sealants containing PCBs; up to 7.5 tones of various types of asbestos; several thousands liters of oil (engine oil, bilge oil, hydraulic and lubricant oils and grease) Tankers additionally hold up to 1,000 cubic meters of residual oil. Most of these materials are defined as hazardous waste under the Basel Convention Experts at home and abroad are unanimous in their opinion that ship breaking is a high-risk industry
Hazards of Ship Breaking Industryards ofShip Breaking IndustryThe hazards linked to ship breakingbroadly fall into two categories: — Intoxication by dangerous substances — Accidents on the plotsA brief description on the commonhazards that may cause work relatedinjuries and death among shipbreakersWaste components in the vessel orboard and waste and toxic substancesthat may inherent in the vesselstructureMost of the accidents are caused bytoxic gas explosions
Alang Ship Breaking Hazards Problems generated by the insufficiencies of current ship-dismantling practices have consequences for not only the environment but also for occupational safety and health of the workers By occupying and expanding the areas required for breaking, the dismantling industry affects both the local surrounding, environment and society The established local community may be relying on basic industries such as fishery and agriculture, hence conflict of interests has become an issue Discharges and emissions to sea, ground and air cause both acute and long term pollution The lack of containment to prevent toxins from entering the environment is a major concern
How could we do safe and environment friendly recycling of ships Client logo
Conduct a vessel survey An Environmental Safety andTechnical plan Technical Health plan plan.
Breaking the Vessel• Remove fuels, oils, other liquids andcombustible Materials• Remove equipment• Remove and dispose of asbestos andPCBs.• Prepare surfaces for cutting• Cut metal• Recycle or dispose of materials.
Steps taken for Workers Safety• Emergency Response• Crane Services• Mobile Hydraulic Shear Cutters• Shoreside Processing of Metals• Fall Protection Workers safety is our priority
Health Problems Related to Asbestos Asbestos fibers have the potential to cause disabling lung diseases and cancer. Among the diseases linked to friable asbestos exposure are: • Asbestosis - a respiratory disease • Lung cancer • Mesothelioma - a deadly cancer of the lining of the chest or abdominal cavityPERSONAL PROTECTIVE EQUIPMENT Respiratory Protection
Shipper/ Customer Responsibilities for Packaging ACMShip breakers must handle and package friable, asbestos-containing material for transport as follows: • Wet ACM thoroughly or modify it with a bonding agent, coating, or binder before bagging. • Bag ACM in two leak-tight, impermeable bags six ml thick. (Goosenecking is preferred.) • Inspect to be sure containers are intact. • Place bagged asbestos in a roll-off box lined with plastic taped over the sides of the open top, whenever this is practical • Label each bag, drum, or container with the EPA or OSHA danger containers with the generator’s name and address.
A containment boom is a "temporary floatingbarrier used to contain an oil spill. Booms areused to reduce the possibility of pollutingshorelines and other resources, and to helpmake recovery easier. Booms help toconcentrate oil in thicker surface layers so thatskimmers, vacuums, or other collectionmethods can be used more effectively. Theycome in many shapes and sizes, with variouslevels of effectiveness in different types ofwater conditions
Global conditionThe global shipping downturn and weak macro-economicheadwinds since 2009 have facilitated the growth of the shipbreaking industry .With the outlook on international shipping freight rates beingsubdued over the near to medium term and large tonnageexpected to come on stream post 2012, the ship breakingindustry is expected to continue witnessing a steady supply ofvessels for demolition over the medium term.The Indian ship breakers have witnessed a healthy growth inoperating income in recent years due to increased availability ofships for dismantling
Ship-breakingDemand for vessels for scrapEffects on the wider economyMarket demand for Mild Steel (MS) scrap,and other itemsLabour costs + other relevant costRegulations regarding the environmentalImpact of the industry Competition of other countries(mainly-china)Analysis of Future ScopeIn 2010 the world fleet of ships over 500 GT was around56,000 ships while the fleet over 3,000 GT was around32,000 ships. Ships have a limited life-span, reflectingeconomic, technical and occasionally regulatoryconsiderations. A realistic average life-span of a shippresently is 30 years and thus on average around 1,800ships of over 500 GT, or 1,000 ships over 3,000 GT needto be recycled each year.
Overall AnalysisRevenues:• 1)Steel—the most crucial recyclable output in terms of volume and revenue. This steelis either reheated and re-rolled or melted down and re-processed.• 2)Other recyclable items—including non-ferrous scrap, machinery, furniture and ffixtures, and ropes and cabling. Virtually, all items that can be recovered from a ship arerecycled in some form.Costs:1)• Purchase of ship• 2) Investment costs (for equipment and civil works such as cranes, forklifts, storage,and housing)3)• Financial costs• 4) Labor costs5)• Consumption of utilities (e.g., oxygen, LPG, diesel and electricity)• 6) Taxes, tariffs and duties (e.g., import taxes)• 7) Rents (e.g., for land use)• 8) Other costs (e.g., for handling hazardous waste).
Revenues• 1) Steel—the most crucial recyclable output interms of volume and revenue. This steel is eitherreheated and re-rolled or melted down and re-processed.approximately 85 percent of a ship isrecyclable steel in theform of directly re-rollable steel (75 percent) andmelting scrap (10 percent).152)• Other recyclable items—including non-
INDIA(Overall Financial Analysis)(14,800 LDT OIL VESSEL)RevenueMain element Sub element Unit INDIARevenue from steel $/vessel 4,771,543Other recyclable items $/vessel 842,037Total revenue $/vessel 5,613,580
CostPurchase of ship 69%Labour costs 2%Consumables 5%Financial costs 3%Taxes, tariffs and duties 5%Other costs (incl. investment costs rents, and other costs) 1%Total costs 84%Environmental friendly technics 4%Comparable profit 12%
Costs 1)Purchase of ship $/vessel3,848,0002)Investment costs $/vessel 21,913 3)Financial costs $/vessel 147,9124)Labor costs $/vessel 92,6535)Consumables $/vessel 302,207 6)Taxes, tariffs and duties $/vessel 262,9556)Rent, levies and duties $/vessel 2,7137)Other costs $/vessel 13,8208)Extra cost forenvironmental Friendly technicesa. Purchasing and construction costs for newequipment and infrastructure $/vessel 112,271b. Manpower costs for new and more timeconsuming work routines $/vessel 56,271c. Hazardous waste disposal costs $/vessel 56,000Total costs $/vessel 4,916,7150Profit $/vessel 696,865$/LDT 47Local currency/vessel 39,024,440Local currency/LDT 2637
1)ICRA Rating Feature Ship Breaking Industry:Key Trends and Credit Implications ICRALimited2)The NGO Shipbreaking Platform3)Department of Naval Architecture & MarineEngineering Bangladesh University ofEngineering & Technology, Dhaka-10004)Occupational Safety and HealthAdministration,U.S. Department of Labor,OSHA 3375-03 20105)DIVEST6)Basel and the Hong Kong Conventions