IMPACT REPORT - NGO Shipbreaking Platform
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1 ABOUT US EDITORIAL The NGO Shipbreaking Platform is a The coalition quickly evolved from requirement for recycling of EU flagged Cases such as the FPSO North Sea coalition of environmental, human- being a European Platform to a global vessels at EU audited and approved Producer, whose import, beaching and and labour rights organisations one, including NGOs based in the ship recycling yards. After hearing breaking the Bangladesh Supreme working to promote safe and major shipbreaking countries India, the Platform’s evidence that EU list of Court ruled illegal; the detainment environmentally sound ship recycling Bangladesh, Pakistan and Turkey. It approved ship recyclers had sufficient of Diamond Offshore units by the capacity to recycle Europe’s end-of-life Scottish Environment Protection globally. The Platform was first now has 18 member organisations ships, Commissioner Vella determined Agency following an alert by the created in September 2005 after and six partners in 12 countries. The to put the list into operation without Platform; and notifying Bangladesh the few NGOs working on the issue Platform is recognised by United delay. and Indian authorities on exports of noticed that a broader base of support, Nations agencies, the European Union mercury-laden floating units exemplify a stronger network of organisations and leading media outlets as the pre- The Platform worked closely with law our efforts to counter this trend. In from ship-owning and shipbreaking eminent international civil society enforcement officials and legal firms in 2019 with support from Norway’s countries, and a long-term approach advocacy organisation on ship 2019 to hold shipowners accountable government pension fund, KLP, and the were needed to challenge the political recycling. for breaking ships in dangerous and European Commission, the Platform clout of the shipping industry. polluting yards. The Leigh Day law reported on the demolition for end-of- firm broke new ground when it sued life floating oil and gas units. We will the shipping consortium, Maran UK, continue to focus on the oil and gas These past two years the Platform for the fatal accident of a worker who sector in 2020 with support from Royal has won support for sustainable ship died breaking the company’s ship in Academy of Engineering and Lloyds VISION MISSION recycling in the financial sector while raising the stakes for ship owners who break their ships irresponsibly on Bangladesh and for failing to exercise due diligence when the company sold its ship for breaking at the substandard Register Foundation. Looking forwards change will come South Asian beaches. New milestones yard. Elsewhere, the Norwegian through leadership, incentives and Our vision is that vessels are recycled To advocate for clean, safe and just in international law and corporate police economic crime unit, alerted accountability. This year the Board accountability have made these past by the Platform, is for the first time added a new position to the Secretariat in facilities that ensure clean, safe and ship recycling globally in respect of two years encouraging and motivating. investigating a Norwegian ship-owner, to cultivate leadership within the just practices, offering decent and human rights, core labour standards as well as its insurance company and shipping and financial sectors. We safe jobs. Our commitment to finding and environmental justice, and for Recognizing the power of the financial surveyor, for intent to illegally export a continue to push for incentives such sustainable global solutions is based the prevention of dirty and dangerous sector to motivate the decisions of vessel for scrapping in South Asia. Taking as using recycled scrap steel in public on the respect for human rights and practices, such as the dumping of ship owners, the Platform Secretariat note of the Platform’s contribution to procurement or levying port fee the principles of environmental justice, end-of-life vessels on the beaches of reached out to marine insurers in these and other criminal cases, Europol deposits that return to the owner producer responsibility, ‘polluter pays’ developing countries. 2019. As a result of these efforts, last year invited the Platform to brief its after a ship is recycled at an approved and clean production. the International Union of Marine organization on illegal exports of end- yard. Integrating ship recycling with Insurers, which represents over 40 of-life ships. ship building may innovate design, national marine insurance associations provide a stable recycling platform and 90 percent of the world’s marine On the ground, the “Life Boat Project” or new opportunities for currently insurance premium, announced that led by Platform members, BELA, OSHE marginalized shipbreaking workers. Yet ship recycling would be one of their and YPSA empowered workers by despite its complexities, shipbreaking environmental, social and governance providing a safe space where workers isn’t rocket science. Technologies for focus areas. Our work with banks could meet in solidarity, learn about safer recycling exist. The Platform and investment funds further saw the their rights, and receive legal and has documented over 400 deaths in Norwegian Central Bank divest from medical assistance. The Secretariat the shipbreaking yards since 2009. Evergreen shipping company in 2018 managed a three-year grant from the Companies can save lives by recycling for selling its ships for breaking on the US State Department to coordinate their ship on a quayside or in drydock, beaches of Bangladesh. the project, which is now self-directed in countries with capacity to manage by workers in Chattogram. In India, our hazardous waste and to provide human We are further thrilled to report new data and research were instrumental and environmental protections. laws that will move ship owners away in helping journalists and researchers ABOUT THIS REPORT FIND US ONLINE from dangerous scrapping and towards expose the appalling labor conditions sustainable ship recycling. The Basel behind the greenwash campaigns in Ban Amendment, long advocated Alang. by the Basel Action Network and Published by: NGO Platform on Shipbreaking (asbl) Printed on 100% recycled, chlorine-free paper using www.shipbreakingplatform.org other Platform members, became High levels of mercury and other Helen Périvier Rue de la Linière 11, B - 1060 Brussels vegetable ink. international law in 2019 and bans hazardous wastes make scrapping of President of the Board Twitter: @NGOShipbreaking Edited by: Ingvild Jenssen, Nicola Mulinaris, Special thanks to photographers C. F., Cato Facebook: /shipbreakingplatform developed EU and OECD nations floating oil and gas units especially NGO Shipbreaking Platform Sara Costa, Teg Malla Gustavson, Konstantin Novakovic, Andreas from exporting hazardous wastes to dangerous and are a concern as their Ragnarsson and Stefan Tschumi developing countries. In addition, oversupply is sending more of such Design: Giulia Morandini the Platform Secretariat successfully units for breaking on the beaches We thank the European Commission and countered industry efforts to delay the of India, Bangladesh and Pakistan. Cover photo: © C. F. the LIFE programme for their support.
2 3 TABLE OF CONTENTS 4 6 Editorial 01 Getting the Legal Framework Right 14 What is the Problem? 04 Making Business do the Right Thing 17 8 10 06 20 Facts & Figures Our Outreach in the Press and on Social Media Monitoring the Problems of 08 A Vibrant Global Network 22 Shipbreaking in India 12 13 Monitoring the Problems of 10 Financial Statement 23 Shipbreaking in Bangladesh 14 Monitoring the Problems of 12 Who We Are 24 Shipbreaking in Pakistan 17 Monitoring Ship Recycling Elsewhere 13 Support our work 26
4 5 WHAT IS THE PROBLEM? © C.F. Just as the goods they transport, DIRTY PRACTICES DANGEROUS PRACTICES exposed to toxic fumes and substances by the worst yards. By using middlemen ships too become waste when they Millions of tons of hazardous wastes Shipbreaking is according to the at the shipbreaking yards. that change the registration, flag and reach the end of their operational are exported to South Asia in the form International Labour Organisation name of the vessel on its final voyage, SUSTAINABLE lives. When compared to sinking or abandonment, recycling is by far the of end-of-life ships each year. Ships (ILO) one of the most dangerous jobs in the world. When conducted on tidal Carried out in large part by the informal sector, shipbreaking in South Asia is ship owners also seek to avoid any legal or reputational risks linked to the SOLUTIONS contain numerous toxic materials such most environmentally-friendly and as asbestos, polychlorinated biphenyl beaches, without proper infrastructure rarely subject to occupational health increasingly criticised beaching yards. economically sound way of getting rid (PCBs), oil residues and heavy metals. to allow for rapid emergency response and safety controls or inspections. Most Hiding behind concealed corporate of old ships, as it ensures the reuse Unless these materials are properly and the safe use of heavy lifting cranes, workers are employed on day-contracts. structures and flags known for their of valuable resources such as steel. managed, there is a risk of exposure the danger workers are exposed to, of They work long hours without holidays, poor implementation of international Ship recycling is, however, a heavy course, increases. and trade unions are prevented from maritime law and which are particularly Clean and safe methods of ship that can harm both workers and the and hazardous industry that exposes effectively organising them. Children popular with cash buyers, such as recycling are available. The environment. When ships are grounded, both workers and the environment On the South Asian beaches unskilled are especially vulnerable to toxins Comoros, Palau and St Kitts and most sophisticated method is to pulled and broken apart on intertidal to a great number of risks, and migrant workers are deployed by the and dangerous conditions, and child Nevis, it is extremely challenging for dismantle the ship in a dry dock mudflats, there are no means to contain today, only a fraction of end-of-life or remediate pollution. Instead, the thousands to break down the vessels labour in hazardous industries, such authorities to trace and hold ship where it can be recycled under vessels are disposed of in a safe and tide washes away debris, paint chips manually. Without protective gear, they as shipbreaking, is therefore banned owners accountable for these illicit similar conditions to those under environmentally sound manner. and oil spillages. The pollution, as well cut wires, pipes and blast through ship by both international and national practices. which it was built, maintained and as the uprooting of coastal vegetation, hulls with blowtorches. Accidents kill or legislation. Yet, in Bangladesh an repaired throughout its operational ! Most ships are taken apart under including protected mangrove forests, maim numerous workers each year, and estimated 13 percent of the workforce life: in a fully contained industrial rudimentary conditions on the beaches endanger the biodiversity of the coastal the situation is worsened by the fact are children. site with the help of heavy of Alang in India, Chattogram in areas and affect the livelihoods of the that in the vicinity of the shipbreaking machinery. A more widely practised Bangladesh and Gadani in Pakistan. local fishing communities. beaches there are no hospital facilities AVOIDING RESPONSIBILITY: CASH BUYERS alternative is pier-side demolition, There, vessels are grounded capable of providing the necessary AND FLAGS OF CONVENIENCE SHIPBREAKING ON THE BEACH as in China, Europe and the US. deliberately during high tide. Breaking In most cases, the hazardous substances medical treatment to severely injured With the exception of responsible Here the ship is moored long-side at operations usually take place during low built into the structure of the vessels workers. shipping companies that directly a quay, cut horizontally, and heavy HIGH RISK OF ACCIDENTS AND tide when the ship is not submerged by are not even properly identified and engage with recycling facilities in OCCUPATIONAL DISEASES parts are lifted onto shore with the the sea. The human and environmental therefore harm workers unknowingly. Loss of life and serious injuries are Europe, Turkey, US or China, the vast help of cranes. The lower part of toll of the shipbreaking activities on Large amounts of hazardous materials caused by suffocation, explosions, fall majority of ship owners sell their LACK OF PROPER MEDICAL AND the hull is then brought on a slipway these three beaches is devastating due are further either illegally dumped or from great height and crushing down obsolete vessels to so-called ‘cash HEALTHCARE FACILITIES and cut in a contained environment to the lack of adequate infrastructure, resold in local markets. In Bangladesh of heavy steel plates. Since 2009, the buyers’. Cash buyers are scrap-dealers and impermeable surface. Under equipment and procedures to prevent and Pakistan there is no waste Platform and its local members have specialised in the trade of end-of-life BREACH OF LABOUR RIGHTS the EU Ship Recycling Regulation, accidents and pollution. treatment, storage and disposal facility. documented at least 400 fatalities vessels, Any deal struck with a cash the European Union (EU) maintains In India, it is furthermore still legal to re- at the beaching yards. Due to the buyer is hence a demolition deal. EMISSIONS TO AIR, SEA AND GROUND a list of approved ship recycling Ship owners, on the other hand, earn sell asbestos contaminated materials. lack of transparency in the industry, IN INTERTIDAL ZONE facilities. This list provides ship (USD) millions more by selling their it is expected that the actual number Ship owners obtain the highest price, owners, and all stakeholders in the obsolete vessels to yards that use The beaching yards were set up without of workers that have been killed or upfront and in cash, for their end-of- POOR OR NO TREATMENT OF supply chain management, with the low-cost method of beaching maimed is much higher. Many more life asset when selling to a cash buyer. HAZARDOUS WASTES environmental impact assessments a clear reference for sustainable and exploit vulnerable workers, local having been made, and they continue workers suffer from occupational Price is a clear and primary indicator solutions. LACK OF TRANSPARENCY communities and fragile ecosystems. to operate without being subject to diseases, including cancer and of the final scrapping destination, and, thorough environmental monitoring. asbestosis, years after having been currently, the highest prices are offered
6 7 THE GLOBAL SHIPBREAKING CRISIS FACTS & FIGURES © C.F. Each year the NGO Shipbreaking number of ships sold to South Asian their poor implementation of maritime Platform collects data and publishes shipbreaking yards: 106 ships in total. law. Legislation based on flag state TOTAL an annual list of ships dismantled worldwide. In 2018 and 2019, 1418 vessels were dismantled. 987 of these Since the Platform’s first compilation of data in 2009, Greek shipping companies have unceasingly topped jurisdiction alone will not be successful in shifting the industry towards better practices. The Platform is therefore MAIN SHIPBREAKING DESTINATIONS WORLD’S WORST SHIPPING NATIONS ships were sold for dirty and dangerous the list of owners that opt for dirty and calling for incentives that incorporate NUMBER OF SHIPS DISMANTLED breaking on the beaches of South Asia. dangerous shipbreaking. the polluter pays principle, such as a BANGLADESH BEACHED SHIPS WORLDWIDE Whilst ship owners are increasingly return-scheme for ships collected at 419 ships SHIPS DISMANTLED portraying themselves as conscious of The number of European-owned and/ ports during operational life. OFF THE BEACH the problems caused by shipbreaking, or European-flagged vessels beached 15,785,755 GT 70% 987 vessels were the Chattogram shipbreaking yards in 2018 and 2019 amounted to 271 UNITED ARAB EMIRATES sold to South Asian beaching yards in Bangladesh – where the protection ships. In terms of tonnage, European INDIA 108 04 of the environment and workers’ ship owners, from the EU and EFTA “” health and safety is particularly poor states, are responsible for almost one 453 ships – remained the preferred scrapping third of all ships sold for breaking to GREECE 1418 destination worldwide in terms of the beaching yards. The EU controls 8,584,610 GT 97 17 tonnage dismantled. 40% of world operational fleet and thus has a particular responsibility to PAKISTAN UNITED STATES OF AMERICA Most vessels scrapped in the biennium find solutions to the shipbreaking crisis 115 ships were tankers, followed by general cargo and reverse the trend of unsustainable “Companies sell their end-of-life tonnage 81 44 ships, container ships, bulk carriers, roll- recycling. to the beaching yards as that is where 4,500,306 GT on roll-offs, passenger vessels and oil they can make the highest profit. But INDIA platforms. Looking at the size of vessels Out of the 271 European vessels these are profits made on the back of GROSS TONNAGE (MILLION) scrapped on the beaches of South Asia, that were beached, only 10 were still CHINA 62 DISMANTLED WORLDWIDE exploited workers and fragile ecosystems. Pakistan received the largest vessels sailing under a European flag during 51 ships The beaching yards are furthermore toxic followed by Bangladesh, while Indian the last voyage. 27 vessels that had SOUTH KOREA hotspots, and, without a proper clean-up, 728,352 GT yards scrapped more medium-sized otherwise been operating under 51 05 89% 28,9 million GT beached the pollution caused by more than three ships. Turkey tends to recycle smaller European flag, swapped to a non-EU vessels on average. Thus, the larger the flag of convenience just weeks before decades of reckless shipbreaking will TURKEY continue to harm the local environment SINGAPORE vessel the more likely that it will end up hitting the beach in an attempt to 220 ships on a beach in Pakistan or Bangladesh – circumvent EU law. The most popular and the communities that depend upon it 49 01 32,4 where the conditions are known to be end-of-life flags for vessels scrapped for many years to come.” 2,132,149 GT the worst. on the beaches in 2018 and 2019 were RUSSIA Comoros, Liberia, Palau, Panama and St Ingvild Jenssen, NGO Shipbreaking 45 28 United Arab Emirates (UAE) and Kitts and Nevis. The flags of Comoros, REST OF THE WORLD Platform Executive Director and Greece top the list of country dumpers Palau and St Kitts and Nevis are almost Founder 160 ships in 2018 and 2019. UAE owners were exclusively used by cash buyers at CHINA responsible for the highest absolute end-of-life. These are flags known for 671,929 GT 33 40
8 9 MONITORING THE PROBLEMS OF SHIPBREAKING IN INDIA higher. Furthermore, serious injuries Disregard of the negative ALERTING AUTHORITIES OF ILLICIT detect mercury contamination beyond recordings and discussions with are rarely recorded and occupational environmental impact of the beaching PRACTICES: THE YETAGUN WHAT IS THE ISSUE? diseases are not documented at all. method, including hazardous The Platform, European Environmental the slops. E-mails and confidential documents obtained by Dutch several workers that dismantled the YETAGUN revealed a shocking account operations in the intertidal zone, Bureau (EEB) and Zero Mercury investigative journalists at Zembla of the actual conditions at the beaching The beach in Alang, India is one of The companies involved, as well as remain serious concerns, as does the Group warned Indian authorities of show that SBM Offshore, the owner of yard. Workers are not provided with the main destinations for end-of- local authorities, seek to thwart public lack of proper accommodation and the breach of international waste laws the FSO, attempted to conceal the high appropriate personal protective life vessels. Dangerous working scrutiny of the deplorable conditions medical facilities for workers. Asbestos related to the export of the mercury- concentration of mercury in the ship’s equipment and were completely conditions and pollution in Alang were in Alang. They also seek to greenwash contaminated materials can be resold laden FSO YETAGUN, and urged India steel, in order to avoid clean-up costs. unaware of the poisonous mercury first documented by Greenpeace in the beaching method with the handing in India and there is no proper disposal to halt the import of the contaminated In their statements to Zembla, SBM contamination. Several stated that full 1998. Following legal actions taken out of misleading and privately issued site for PCBs. ship. Despite an initial rejection, the Offshore and the Indian shipbreaker safety gear is distributed only when by local NGOs, the Indian Supreme certificates (see box on Statements permission to import the vessel was maintained that the demolition was inspections take place. Toxicologists Court directed the industry to align of Compliance with the Hong Kong eventually given. The circumstances carried out in a safe way, and held forth a that have reviewed the documents on itself with national and international Convention). under which the beaching and breaking so-called Statement of Compliance with the hazardous materials onboard the labour and environmental laws. The of the vessel were allowed remain the Hong Kong Convention (see box) YETAGUN say it is impossible that no Government responded by adopting WHAT HAVE WE DONE? and inspection report - both issued by high levels of mercury were detected “” unclear, but documents obtained by the Ship Recycling Code in 2013 and the Platform show that the Indian Japanese classification society ClassNK during cutting operations, as claimed by the setting up of a waste reception authorities admitted lacking capacity to - as evidence. However, undercover ClassNK. facility. Workers now receive a very DEBUNKING INDUSTRY GREENWASHING basic training. Yet, the conditions in In the reports “Where ships go to die” Alang remain deplorable as revealed by and “The Hypocrisy of Better Beaches”, the Platform, independent journalists the Platform teamed up with Belgian and researchers that have been able to “There are serious breaches of national journalist Gie Goris, Editor in Chief of visit the yards despite access becoming laws aimed at the protection of workers’ MO* Magazine, to have a closer look at increasingly challenging. Reports and undercover footage expose breaches rights at the shipbreaking yards. the practices in Alang and the political context behind the illegal trade of toxic WHAT ARE STATEMENTS OF COMPLIANCE Enforcement and monitoring of labour of labor rights, disregard for even the most basic health and safety standards, laws continue to be a major challenge in waste ships. In Alang, Gie Goris met workers deprived of their rights and WITH THE HONG KONG CONVENTION? and extremely polluting practices. Yard Alang. Local authorities do not even have risking their health and safety on a daily owners are operating with impunity. an updated database on the number of basis for a meagre wage. With a focus workers at the shipbreaking yards, which From four yards in Alang receiving the comply with Hong Kong Convention are unreliable or blatantly deceptive, on Swiss ship owners, it was revealed first Statements of Compliance (SoC) requirements, the standards set by will for example qualify for obtaining According to local sources at least renders it difficult to ensure the welfare of how companies such as container giant with the Hong Kong Convention in the convention have been strongly a Statement. For these reasons, it is 14 workers died at the yards in 2018, the workforce. There is an urgent need for MSC, use the Alang beach to dispose of 2015, more than 90 yards, out of a criticised for being too weak, ignoring widely acknowledged by experts on making it one of the worst years for the coordination at all levels, involving local their floating toxic waste while boosting total of 154 yards, are now reported also crucial issues such as labour rights ship recycling that the Statements do Alang shipbreakers in terms of fatalities. and national authorities.” their profits. The stark contradiction to have obtained such a Statement. and downstream waste management. not provide the guarantee that the In 2019, two deaths were recorded between sustainability promises and The industry push to make beaching The Statements do not look into a conditions at the yard are safe and at yards that are upheld by industry actual practices, as well as the lobbying Dr Geetanjoy Sahu, Associate yards seem “green” has been promoted given practice of a yard, nor do they environmentally sound. Yet, they are stakeholders as having undergone the for double standards by embedded Professor at Tata Institute of Social through the proliferated hand-outs look into the adequacy of the claimed used to mislead stakeholders to believe most improvements. Due to the lack policymakers in Europe was uncovered. Sciences (TISS) of these Statements. Whilst these compliance. With a check-list approach, that operations are sustainable. of transparency in the sector, the real The research received Public Eye’s privately issued Statements assess poor quality environmental monitoring, number of fatalities is expected to be “Investigation Award”. the possibility for a given yard to even when the results of the monitoring
10 11 Of particular concern at the law; trainings on occupational health The Platform was quick to alert both shipbreaking yards in Bangladesh and safety; and alternative vocational the UK and Bangladesh authorities is the employment of children. It is trainings to child workers so that they about the illegal export. Platform illegal under Bangladesh’s Labour Act can gain the skills to find an employment member organisation BELA succeeded to employ children and adolescent which does not put their health and life in requesting an injunction on the workers in hazardous industries such at risk. breaking of the vessel in 2017 based as shipbreaking. Yet, in a recent study on the detection of radiation levels issued by the University of Chattogram, More than 100 complaints were filed in higher than permitted. In a milestone it was found that 13 percent of the the Labour Court under the LIFEBOAT judgement, on 14 November 2019, the workers were under the age of 18. project on issues including verbal Supreme Court of Bangladesh finally Whilst exploitation of the youngest termination, lack of medical treatment declared that the import, beaching and children seems to have ceased since the and unpaid wages. The vast majority of breaking of the FPSO NORTH SEA MONITORING THE PROBLEMS OF publication of a previous report by the Platform and member organisations, the cases were successfully resolved. One particular case set an important PRODUCER was illegal. The Court further noted with dismay the incessant Young Power in Social Action (YPSA) precedent for increased compensation violations of national and international SHIPBREAKING IN BANGLADESH © C.F. and International Federation for Human in the case of injury or death of a laws by the shipbreaking industry, and Rights (FIDH) in 2008, many young worker. With the help of the LIFEBOAT passed several directions upon the teenagers between 15-17 years old are project, the mother of Shochindra, an government to regulate the sector in now offered work during nightshifts. under-aged worker who was killed in line with earlier rulings. an accident on 21 May 2017, issued Holding the industry to account at the charges against one of the largest After winning the case on the illegal local level for the damage it causes shipbreaking companies, Kabir Steel. import and beaching of the NORTH National laws are poorly implemented emergency first aid equipment is is challenging. The yard owners are Kabir Steel’s Managing Directors were SEA PRODUCER, the Platform is now due to weak enforcement capacity, available at many yards, nor do workers well connected both economically and summoned to appear in Court and urging the UK to hold the ship owners WHAT IS THE ISSUE? or deliberately ignored as a result of automatically receive financial support politically. The capacity of local labour ordered to pay 500.000 BDT (5.500 and cash buyer GMS accountable for industry pressure. End-of-life vessels for necessary medical treatment. inspectors is almost non-existent. EUR) as compensation to Shochindra’s the illegal export of the FPSO. Criminal In terms of tonnage, the Chattogram are imported with fake documents Local activists, journalists and workers mother. Whilst the amount remains investigations have been initiated by yards have become the world’s top claiming that they are toxic-free. As a who have been vocal about the dire meagre, it was five times more than the UK environmental agency. destination for end-of-life vessels. The consequence, toxins are not properly conditions at the yards have thus found the average compensation fixed by conditions there are abysmal. Concerns detected nor safely removed. The little support, and have even been the Bangladesh Labour Act. Risking include dire working conditions, high coastal ecosystem and the local threatened. three months imprisonment if the fatality rates, exploitation of child communities depending on it are amount was not paid, Kabir Steel’s “” workers, severe pollution of air and devastated by toxic spills. Currents and Directors settled. The case prompted the marine environment as well as the tides distribute the pollutants not only an important milestone for the uncontrolled dumping of hazardous along the coast, but also further inland WHAT HAVE WE DONE? increase of compensation amounts, which effectively became double by wastes. Journalists, including from during the monsoon season. Since National Geographic, the Guardian and Bangladesh has no storage, treatment an amendment of the Bangladesh Al Jazeera, have brought back shocking and disposal facility for hazardous LIFEBOAT PROJECT Labour Law in 2018. Now, shipbreaking reports on the human rights abuses and wastes, these toxics are simply dumped With support from the US State workers are entitled to 200.000 BDT “The judgment is important in that it has environmental degradation caused by or re-sold on the second-hand market, Department, the Platform and its (2.200 EUR) compensation from yard expressly called the import, beaching the shipbreaking activities. causing further harm to surrounding *At least 44 workers died members Bangladesh Occupational owners via the Labour Court. and breaking permits illegal, and for the communities. The World Bank has Safety, Health and Environment Foundation (OSHE), Bangladesh MAERSK’s TOXIC TRADE: THE NORTH SEA first time a breaker has been put off the In 2009, a land-mark decision by estimated that between 2010 and 2030 Environmental Lawyers Association PRODUCER breaking operation and the government the Supreme Court ordered the Bangladesh will have imported 79.000 closure of the shipbreaking industry tons of asbestos; 240.000 tons of PCBs (BELA), and YPSA implemented a three- In August 2016 the FPSO NORTH has been given the steering. It is even as none of yards held the necessary and 69.200 tons of toxic paints that year project, the LIFEBOAT project, SEA PRODUCER was beached in more important because it has required environmental clearance to operate. originate from end-of-life ships. aimed at promoting internationally Chattogram, Bangladesh. The ship the government to regulate the dubious After only two months of closure the recognised labour rights in the was allowed to leave the UK based on roles of the cash buyers and restrict import yards were, however, allowed to re- Out of the three South Asian shipbreaking sector and strengthening false claims that it would be further from grey- and black-listed flag registries. open with incomplete authorisations shipbreaking beaches, the Platform has the engagement of the Child Labour operationally used in the Tin Can port This will surely make it difficult for the in hand and little change in practice. In by far recorded the highest number of Elimination Committee. The Platform’s in Nigeria. The owners of the FPSO, unscrupulous players to treat Bangladesh 2016, the Supreme Court therefore fatalities in Bangladesh. In 2018 and member organisations in Bangladesh Danish A.P. Moeller Maersk and as a dumping ground.” issued a contempt ruling against both 2019, the Platform documented the assisted the most vulnerable workers Brazilian Odebrecht had in fact sold the the authorities and shipbreaking yard stories of 44 workers who were killed by providing free medical camps; legal ship to the largest vessels’ scrap dealer, assistance to workers that have suffered cash buyer GMS, through a St. Kitts and Syeda Rizwana Hasan, Supreme Court owners for continued breaches of and 46 who suffered severe injuries. national environmental and labour laws. There is no ambulance available to injuries, or to the families left behind Nevis post box company, and the FPSO Lawyer and Director of Bangladesh Whilst the case is still ongoing, yards bring injured workers to the closest following a fatal accident, so that they was towed thereafter directly all the Environmental Lawyers Association continue to operate in blatant breach of specialised hospital located an hours’ *At least 46 workers were can obtain the compensation they are way from the UK to the shipbreaking entitled to get according to Bangladesh yards in Bangladesh. the Courts decisions. drive away from the yards. Not even severely injured
12 13 MONITORING THE PROBLEMS OF © Novakovic © Navaleo SHIPBREAKING IN PAKISTAN OTHER RECYCLING DESTINATIONS “” available at the yards, it was also a the back of China’s efforts to crack WHAT IS THE ISSUE? major challenge to bring severely burnt workers to the nearest hospital in TURKEY REST OF THE WORLD down on pollution and waste producing industries in the country, and follows a Karachi. Despite attempts by local and ban on the import of a large number of The conditions at the shipbreaking regional authorities to better regulate hazardous wastes, including plastics. Turkey dismantled 220 ships in 2018 EUROPEAN UNION yards in Pakistan are not any better. As safety procedures at the yards, in the and 2019, including several drilling In December 2016, the EU published in India and Bangladesh, the yards in beginning of 2017, five workers lost INDONESIA “Gadani, once one of the world’s largest ships and platforms. In comparison to the list of ship recycling facilities that Gadani operate directly on the beach their lives in another explosion on a Smaller vessels are known to be shipbreaking hubs, has now lost that South Asia, Turkey dismantles smaller are approved according to the EU without any impermeable and drained tanker. This led to a moratorium on broken in Indonesia. Recent media vessels, many of them either EU-owned Ship Recycling Regulation and located working areas to protect the sea and the import of tankers imposed by the status. There is no doubt that the major investigations revealed appalling or EU-flagged. Aliaga is also a preferred in EU Member States. 34 out of 41 sand from pollution. As there is no government. Yet the ban was lifted in explosion on 1 November 2016 that killed destination for EU navy vessels. facilities approved so far are located social and environmental conditions infrastructure to deal with hazardous 2018, without concrete measures in at least 30 workers on the spot and severely at a breaking yard located in Cilincing, in the EU. These yards are currently waste in Gadani, dangerous and place, such as mandatory gas-free-for- burnt even more, revealed the catastrophic North Jakarta. Although Turkish yards do not beach mainly recycling government-owned polluting substances – such as asbestos, hot-work, to prevent the reoccurrence conditions at the yards and prompted both vessels, the landing method which and smaller vessels, and operate grossly PCBs and residue oils – are simply of these tragedies. PHILIPPINES inquiry and adoption of more stringent is used also poses environmental under-capacity. They have signalled that dumped behind the shipbreaking area. In the Philippines, the government has Figures, however, clearly show a safety regulations. However, whilst the challenges, as the risk of slag and paint the promise of a larger market share chips falling into the water is high. would prompt investments to enlarge planned the construction of a ship recy- Workers’ health and safety are significant decline in shipbreaking safety at workplace as a result has slightly Through engagement with NGOs the yards so that they could recycle cling yard on the island of Negros. The blatantly ignored in Gadani, and activities in 2018 and 2019. This improved, no change occurred in beaching construction is financed by Japanese practices. That the coastal environment is and labour rights groups, the Turkish more as well as larger commercial ships. trade unions, such as the IndustriAll- development is caused by several corporation Tsuneishi Heavy Indus- Ship Recyclers Association remains affiliated Pakistan National Trade factors, including the devaluation of now slowly showing signs of recovery is tries Inc. The Platform is assisting rep- attentive to constantly improving the UNITED STATES Union Federation (NTUF), have voiced the Pakistani Rupee and imports of not due to any upgraded environmental industry practice, and the yards are In the US, facilities are able to resentatives of local NGOs PDG and strong concerns related to the systemic cheap metal billets from neighbouring management at the yards, but is rather Save Hinoba-an Movement in halting open to independent researchers. recycle vessels in a safer and more breaches of basic labour rights. Most countries, and has resulted in the is a result of the significant decrease in the project, which currently involves environmentally friendly way than of the shipbreaking workers in Gadani closure of the majority of the yards and the number of ships coming for breaking land-grabbing of agricultural grounds Six yards in Aliaga are currently included on the beaches of South Asia. Most are migrant workers from the poorest thus the return of migrant workers to and will negatively affect local commu- on the beach. Any attempts to revive the on the EU list of approved ship recycling facilities are located in Brownsville, regions of Pakistan. their home villages. nities, their livelihoods, as well as the industry in Pakistan must ensure that the facilities. In order to make it on the EU Texas. One of these facilities has been list, the yards are subject to on-site included on the EU List. coastal environment. Following the explosion of 1 November recycling operations take place in industrial zones where both the environment and assessments of their environmental and 2016 of the ACES tanker, there has workers can be protected.” social performance. CHINA been increased awareness, nationally Several Chinese yards that have the and internationally, of the dangers faced capacity to recycle a substantial amount by the workers in the shipbreaking Dr. Irfan Khan, NGO Shipbreaking of large vessels alongside piers and in yards in Pakistan. Many workers lost Platform Board Member docks are currently out of business. their lives in the explosion that took As of 1 January 2019, China closed the Pakistani military three days to the market for the recycling of foreign extinguish. Without any ambulances flagged ships. This decision comes on
14 15 GETTING THE LEGAL FRAMEWORK RIGHT © C. F. the Hong Kong Convention which does supported by Belgium and Greece and In January 2018, the Platform alerted Warranty Surveyor Aqualis Offshore Scottish Environmental authorities are now scheduled to be heard by the WHAT IS THE ISSUE? not ban beaching; does not regulate the downstream management of it became apparent that there was an urgent need to counter the fake MILESTONE (SEPA), of the imminent illegal export of Court. After having been detained Under international environmental hazardous wastes; sets no standards for labour rights; and provides no news with reliable data. The Platform reviewed historic data on the breaking SEATRADE CASE three floating rigs from the Cromarty Firth. The rigs had been sold to cash in Norway for more than a year, the HARRIER was allowed to leave for law, end-of-life vessels are considered independent certification and auditing of EU flagged vessels and effectively buyer GMS by Diamond Offshore. SEPA recycling in Aliaga, Turkey. However, hazardous waste. The export of scheme for the recycling facilities. showed that all EU flagged ships, both halted the movement of the platforms a major oil spill in the Izmir region On 15 March 2018, the Rotterdam hazardous wastes to developing in terms of tonnage and size, could have and pre-defined the cold-stacked rigs caused by the vessel on its final voyage District Court sentenced, on the countries from the EU is prohibited On 30 December 2018 the new EU easily been recycled at one of the 35 as hazardous waste. The units are to the Turkish recycling yard led to basis of the EU Waste Shipment under the EU Waste Shipment Ship Recycling Regulation became facilities that at the time were approved currently still being detained, and are the arrest of the ship. The HARRIER Regulation, shipping company Regulation. On 5 December 2019 the applicable. The standard for safe and by the EU. Indeed, many of these sites not able to leave Scotland unless the remained stuck at the Turkish recycling Seatrade for the intent to illegally Basel Convention’s Ban Amendment, environmentally sound ship recycling are operating grossly under-capacity. recycling destination is allowed under yard for more than one year as cash export four vessels for scrapping in which prohibits the export of hazardous set by the EU is an important step in the The conclusions of the report were the EU Waste Shipment Regulation. The buyer Wirana simply “vanished” after India. waste, including end-of-life ships, from right direction. picked up by the press, enforcement Platform also alerted local oil and gas having delivered the ship, dodging developed to developing countries authorities and Members of the trade unions of the case and has worked both the clean-up costs and fine issued Seatrade was heavily fined, and two became applicable at the international European Parliament. This left the ship with National Union of Rail, Maritime by Turkish authorities . The recycling of its executives were also banned level. However, European and owners in quite an embarrassing and Transport Workers (RMT) to raise operations finally started in February from exercising the profession as international law governing the trade of end-of-life ships is easy to circumvent WHAT HAVE WE DONE? position, and also convinced EU Commissioner Karmenu VELLA that director, commissioner, advisor or the issue of the decommissioning of floating oil and gas structures in 2020 – three years after the attempt to illegally export the vessel to Gadani, employee of a shipping company for ship owners. Under the pretext of DEBUNKING FALSE INDUSTRY ARGUMENTS there was no need to postpone the both the Scottish Parliament and UK Pakistan. for one year. This decision was a continued operational use or repair The Platform published a report on the application date of the new law.. Parliament, demanding that the UK major milestone in the Platform’s work, most ship owners do not declare recycling capacity that is available on government develop a strategy for the The Platform is now engaging with also campaign as, for the first time, their intent to dispose their vessels and the EU List of approved ship recycling Today, the EU List has been expanded safe and clean recycling of the North Europol and Interpol on ‘illegal ship- a shipping company was held thus escape from law enforcement. facilities in September 2018 together to include 41 approved ship recycling Sea structures. breaking’. They aim at enhancing col- criminally liable for the illegal with member organisation Transport facilities. Whilst several Indian beaching laboration between different national trade of end-of-life ships. The The industry-driven International & Environment. As the application date yards have applied for approval, none In Norway, the HARRIER case is under police forces. To raise broader public Prosecutor’s request that the Maritime Organisation (IMO) adopted for the EU Ship Recycling Regulation of them have been able to prove that investigation by the Economic Crimes awareness, the Platform has worked Seatrade executives face prison the Hong Kong Convention in 2009. It was approaching, the European they meet the standards set by the Division of the police. The ship owner closely with investigative journalists fo- was only waived in light of this has so far not entered into force due to shipping industry sought to undermine Regulation. and cash buyer have been charged cusing on specific cases of illegal exports being the first time such criminal the lack of ratifications, and has been the Regulation by claiming that it for their attempt to illegally export of waste ships: Dutch investigative charges had been pressed. This denounced for its weak standards by could not become applicable without HOLDING INDUSTRY TO ACCOUNT FOR the vessel to Pakistan. The insurance journalists published a damning report ground-breaking judgement sets more than 100 global environmental considerable recycling capacity added ILLICIT PRACTICES company and Marine Warranty for offshore company SBM that sold a an important precedent for holding and human rights organisations, the to the list. Their call was for the EU to The Platform has prompted several Surveyor are both under investigation mercury contaminated tanker to Alang, ship owners accountable for selling UN Special Rapporteur on Human accept facilities in Alang, India, under criminal investigations by EU for having aided the intended illegal India; BBC investigative journalists re- vessels, via shady cash-buyers, for Rights and Toxics, legal experts and the false pretext that without those enforcement authorities against export. Cash buyer Wirana has already leased their report on the illicit practic- dirty and dangerous breaking in European policy makers. 90 yards at yards, EU flagged vessels would not shipping companies involved in the been fined 7 million NOK (approx. es of Diamond Offshore and cash buyer order to maximise profits. the Alang beach in India already claim have enough capacity available for illegal export of end-of-life vessels to 640.000 EUR), and the cases against GMS, as well as the connivance of local that they meet the requirements of their recycling. The industry push was South Asia beaches. both ship owner EIDE and Marine Indian authorities, in March 2020.
16 17 © Cato Gustavson / KLP MAKING BUSINESS DO THE RIGHT THING © C.F. Criminalising illegal conduct plays bonds and inclusion of requirements transition to Circular Economy models. Ship owners’ lack of due diligence when a key role in changing corporate incentive structures. Sufficiently high to use sustainably recycled scrap steel originating from ships in public BELA and FIDH joined the Belgian Federal Police in a second debate that WHAT IS THE ISSUE? selling to cash buyers is increasingly highlighted by law enforcers and the MILESTONE and dissuasive penalties, also for inciting, aiding and abetting offences procurement would further encourage investments in high quality recycling. focused on corporate liability for toxic trade. The event was organised during The vast majority of ship owners do not financiers of shipping. INVESTORS need to be ensured. Within that scope, the liability of auditors, insurers and To raise awareness on how to boost the Brussels 15 Days for International Solidarity with the support of the City take responsible decisions when getting rid of their old ships. Instead, they sell Companies globally are increasingly expected to make sure that their DIVESTING private certification schemes, should be a toxic-free future in line with the of Brussels, and included also the their vessel to scrap dealers known as business, including their supply chain In January 2018, the Norwegian explored and accounted for. Circular Economy, the Platform and its performance With Bare Hands LIVE. cash buyers. These companies offer management, operate in line with Central Bank decided to exclude four member organisation FIDH, organised ship owners the highest price – upfront international human rights standards ship owners, including Evergreen, FOCUS ON THE CIRCULAR ECONOMY in October 2019 two panel debates and in cash – for end-of-life vessels. and does not cause harm to the from the Government Pension The Platform advocates for the adoption moderated by chief editor of MO* They will manage the ship on its last environment. Faced with this demand Fund Global (GPFG), the world’s “” of incentives to facilitate a level playing Magazine. The UN Special Rapporteur voyage, as well as rename and reflag - and often with a much more public largest sovereign fund. The exclusion field and increase the supply of ships on Toxics and Human Rights gave an it, often to the worst performing flags profile than most ship owners - banks, was made public and with written to facilities with high environmental opening key-note speech. Platform in the world, as part of their business pension funds and consumer brands, explanations. Both the breach of and safety standards. A return-scheme member organisation Basel Action model. upon which international shipping international human rights and for ships where moneys are collected Network (BAN) presented the depends, are taking steps to ensure the severe environmental damage during operational life from all vessels Circular Economy and waste trade, Registering also the ships under responsible ship recycling. caused by beaching were highlighted trading in European waters has before being joined on stage by the anonymous post box companies, it as reasons for the divestments. According to the Council on Ethics been proposed at the EU level and is European Environmental Bureau (EEB) “Repeated legal calls in the importing becomes challenging for authorities to supported by NGOs, trade unions and and the UN Special Rapporteur to hold cash buyers accountable for their of GPFG, selling a vessel to a countries are falling into deed ears simply beaching yard via a cash buyer “is a industry stakeholders. The use of green discuss measures that will support the because the rich nations are declining illicit business practices. Ship owners will claim that their responsibility consequence of an active choice on to take care of their waste. While the EU the part of the company that owned ends upon concluding a deal with a has come forward with a set of rules, it is cash buyer, and thus seek to avoid any WHAT HAVE WE DONE? the vessel to maximise its profit. In high time that the public agencies work the Council’s opinion, that company CALL FOR ACTION to bridge the gap between laws and their implementation and save lives and the financial, liability or reputational risks linked to the scraping of their vessels PROMPTED ENGAGEMENT FROM FINANCIERS must shoulder an independent responsibility for doing so. There at the increasingly criticised beaching Profits made on the back of people and environment.” yards. the environment are not acceptable are better ways of dismantling ships We call upon the European Union to lowcost method of beach-breaking. with the slowly increasing focus on that are readily available to the ship maintain high standards when Wa also call upon the Member owner, but these are more expensive”. publishing its list of approved ship States to support the introduction Syeda Rizwana Hasan, Supreme Court Selling to a cash buyer has, however, environmental, social and governance become increasingly difficult to use criteria for investments. Through This precedent-setting divestment recycling facilities and not to give of a financial scheme based on the Lawyer and Director of Bangladesh was followed by Norwegian pension in to shipping interests that want polluter pays principle that would Environmental Lawyers Association as a pretext for not knowing that the what is known as “negative screening”, asset will be scrapped. The higher price investors are using the annual lists fund KLP that excluded the same to continue earning dirty money by incentivise ship owners to opt for a offered by the cash buyer is also a clear that the Platform publishes on global companies. Both investors have using the dangerous, polluting and ship recycling facility on the EU list. indication of where the vessel will be dumpers to screen their asset values. signalled that they may take further scrapped. action on companies that break their vessels also in India.
18 17 19 © Stefan Tschumi ENSURED ENGAGEMENT FROM to screening their business up against So far, the only structure which operated authorities on the export of three Platform was also asked to share its MARITIME INSURERS Environmental, Social and Governance in the North Sea and has been traced tankers owned by Petrobras that were experiences working on human rights WORST SHIP-DUMPING Following investigations in Norway (ESG) issues. to a South Asian beaching yard is the exported to India in breach of UNEP’s corporate liability at events organised COMPANIES on the possible criminal liability of FPSO NORTH SEA PRODUCER. The Basel Convention, and also in relations by Amnesty International and partner insurance companies in aiding illegal HIGHLIGHTING EMERGING CHALLENGES Platform has, however, revealed that to the auctioning of the French aircraft organisation European Coalition for 2018 waste trafficking, the Platform has been With the oil and gas sector seeing a units operating in East Asia have been carrier Clemenceau’s sister ship, the Corporate Justice (ECCJ). SINOKOR solicited to present the shipbreaking downturn since 2014, the Platform sold for scrapping to the beaching yards SÃO PAULO. In the latter case, and due issue to the insurance sector. In June 11 has documented an increasing number with false inventories claiming that they to the large amounts of asbestos still RECOGNISING BEST PRACTICE 2019 the Platform spoke at an event of offshore units sold for scrap. More are free of mercury contamination. on-board, the Platform has effectively Recycling vessels sustainably organised by the largest P&I ship than 200 floating oil and gas structures With support from the Royal Academy worked with the global Ban Asbestos is possible. In 2019, the NGO 2018 insurer, Gard. Underwriters, brokers have been documented by the Platform of Engineering and Lloyds Register Network and urged both French and Shipbreaking Platform commended NORDIC AMERICAN TANKERS and shipping companies were present, as scrapped globally since 2015 – an Foundation, the Platform will continue Brazilian authorities to ensure the Dutch ship owner Van Oord for best 8 and co-presenters on the ship recycling estimated 40% of these assets ended to focus on the particular end-of-life proper dismantling of the vessel in an corporate practice. Van Oord sold its issue included DNB bank, Wilhelmsen up on South Asian beaches, where they challenges of the oil and gas sector. EU approved facility. end-of-life ships to EU-listed yards for 2019 shipping company and a shipping were broken up under conditions that recycling and has had a long-standing EVERGREEN lawyer. Jointly, all presentations offered cause irreparable damage to the coastal FOCUS ON BRAZIL FOCUS ON HUMAN RIGHTS DUE DILIGENCE commitment to safe and clean ship strong arguments for sustainable ship environment and put workers’ lives Also in Brazil there is an increasing The Platform has engaged with the UN recycling. Other companies that have 11 recycling from an environmental, labour and health and safety at risk. Mercury inventory of oil and gas units that Special Rapporteur on Human Rights had a sustainable ship recycling policy rights, legal, financial and ethical point of and radioactive contamination are of will need to be decommissioned in and Toxics, as well as NGOs, lawyers and in place for many years include Boskalis, 2019 view. In September 2019, the Platform particular concern on so-called floating the coming years. Via presentations researchers that focus on corporate CSL, Deme Group, Grieg Star, Hapag BERGE BULK was invited to speak at the Annual production and storage units. at conferences on ship recycling and accountability. These exchanges have Lloyd, Heerema, Jan de Nul, Samskip Conference of the International Union offshore decommissioning organised by brought valuable insights in other and Wallenius Wilhelmsen. 4 of Marine Insurers (IUMI) in Toronto, The Platform published a report on SOBENA in Rio de Janeiro, the Platform sectors, such as coco-farming and Canada. IUMI represents more than the decommissioning of floating oil has engaged with Brazilian ship recycling textiles, that also face similar problems 40 national marine insurance and CALL FOR ACTION and gas structures that have operated yards, environmental authorities and with regards to poor conditions and reinsurance associations, and through in the North Sea. These units are major shipping and oil & gas companies weak auditing schemes that are not their respective memberships cover effectively covered by the EU Ship such as Petrobras and Vale. The aim able to detect violations, in some cases more than 90 per cent of the world’s Recycling Regulation and / or the has been to enhance awareness on even designed not to detect violations We call upon ship owners globally list of ship recycling facilities. We marine insurance premium. Following EU Waste Shipment Regulation. The the issue in Brazil, where several as a way of hiding exploitation. The EU to use modern industrial ship also call on cargo owners and the the conference, the Platform has report outlines clear indicators for yards could potentially meet the EU Ship Recycling Regulation provides recycling facilities - off the beach financers of shipping to demand been contacted by several insurance when assets in the North Sea are standard and recycle regional tonnage in that sense for a strong case of EU - that can ensure clean and safe clean and safe ship recycling from companies for advice on how they can likely to be decommissioned and in a sustainable manner. Currently, auditing practices in third countries and practices in line with international the ship owners they do business contribute to raising the standards of identifies solutions for their safe and Brazilian companies are selling their could be used as an example to follow environmental and labour rights’ with by including contractual clauses ship recycling. IUMI further announced environmentally sound recycling. The obsolete tonnage for breaking on the in also other sectors and supply chains. standards. We expect shipping that require the use of ship recycling that ship recycling would be one of report was launched during an event beaches of South Asia. The Platform In light of the Platform’s successes in companies to exercise due diligence facilities on the EU list. their future focus areas with regards hosted by pension fund KLP in Oslo. has alerted Brazilian environmental prompting criminal investigations, the and use the upcoming European
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