Ship Recycling in India: Recent Improvements and Challenges

1. Ship Recycling Industries Association (India) Ship Recycling Industry in IndiaRecent Improvements and Challenges10th May 2019 - London

2. Drone View

3. Brief introduction • Ship Recycling in India started in 1912 in Kolkata and Mumbai. However, the growth of ship recycling in India took place since 1983 when it was decided to set-up a ship recycling yard on the western coast of Gulf of Cambay near Alang village. • Alang has a very high intertidal gradient. This enables huge ship to beach(land) right at the shore during high tide and when the tide recedes the ship stands almost at a dry-dock. This unique feature made it possible for the industry to establish with limited capital investment. It is proved to be most economical way to generate “Steel” without use of Electricity. • Ship recycling industry opened doors for many steel making mills – Plants, in Gujarat. Many downstream industry and business has grown and uplifted economy of the region. We have 80 Rerolling Mills and 60 Mini Steel plants in district. • Entire Ship Recycling Industries in India, is governed by mandatory Ship Recycling Code 2013 which is mirror image of HKC 2009. • In stretch of 10 Kms, around 120 working plots recycling LDT 2.5 to 3.00 Million Tonnes, fetching overall employment to half million people.

4. Main Product Catalogue (Steel)

5. Recent Improvements • Voluntary adoption of HKC 2009 – Happy to Change – Meeting international expectation – Invested huge amount at Own. • By 31.03.2019, 87 yards have “voluntarily” obtain SOC from Class NK, RINA or IR Class. And 9 yards are in process. 12 Plots have applied for EU List. • Huge Capacity - 4.00 Million Tonnes - Recycle & “Reuse” almost 99% by weight • Developed infrastructures and procedures for effective compliance of HKC • Adopted modern equipments/technology for Safety and Environment protection • Compulsory training for workers - Specialized training from Experts • Developed SOPs for critical operations – Rigorous Supervision • Regular issuance of permits & reporting of incidents - accidents • Mandatory insurance coverage to all – ESIC & Provident Funds • Optimum usage of Resources – Work force – Very Big Market

6. Recent Improvements • Adequate impermeable flooring & effective drainage system • Resulted in Stopping of Leakage to Inter-tidal zone • Developed Mass Awareness among Workers for safety - environment • Sustainable approach – mindset for continuous improvement • Capable to recycle all types of ships – Dry and Wet Cargos, Reefers, Containers, FPSOs, Drills, Jack ups, Platforms, etc. • Best amongst all Ship recycling Countries (South East Asia) – Equipped with TSDF, Hospitals and Housing for Workers - Capacity with HKC 2009 compliant Yards • Future Projects for Up-gradation by JICA (Japan):- • Yard Up-gradation – Impermeable Flooring, etc. • Offshore Tanks Cleaning equipments – Gas Freeing • Heavy Cranes for Plots • Beach Cleaning Machines • Mobile Decontamination Unit – Tank Cleaning on shore • Up gradation of TSDF site and Common Facilities

7. Training of Workers – in plot

8. Training of Workers - classroom

9. Tool Box Talk - Daily

10. Mock Drill

11. On Board Cutting Operation

12. Cleaning of Oily Block

13. Cold Opening – On Board

14. Block Cutting Operation

15. Field Cutting Operation

16. Plots under SRC 2013

17. Plots having SOC for HKC

18. Plots having SOC for HKC (EU effect)

19. Plots having SOC for HKC (EU effect)

20. Challenges • Over Capacity of recycling – Under supply of Ships - No Continuity • Floating Work Force – Difficult to maintain consistency • HKC Plots Struggling by cutting non HKC Ships by HKC Method to maintain certification • Hiding from Responsibility (Pending ratification of HKC 2009) – Most Ship Owners not providing IHM • Adhoc approach by Owners, Cash Buyers, etc – undue advantage – competitive culture misused – Hypocrisy to draw more price • Owners setting own standards – Overreaching HKC 2009 – Go by appearance • Regional regulation EU SRR undermining Global Convention HKC 2009 by establishing separate standard • EU effect over HKC – Built structure – no falling even Clean Blocks in inter tidal zone – Concrete Jetty in inter tidal zone – wall to wall impermeable floor - Huge Cranes to lift block directly from Ship – No gravity method – high investments • NGO platform - Bias to Beaching Facilities (non EU) -EU Owners most effected • EU List – Asking beyond domestic regulation – Downstream management beyond Yard gate • Question of Survival – No recovery of investments – compliance cost not recoverable • Viability at Stake - only 50% yards working – India at cross roads

21. Future ahead : Support Needed • Support from IMO: • Recognize efforts made by India • Promote Ship Owners to send their ships “voluntarily” to HKC Yards • Industry's expectation - early “Ratification of HKC 2009” • Educate Ship Building – Repair Yards for not to use hazardous materials or replace at the time of dry docking – “voluntarily” implementation HKC 2009 • Minimize difference with EU - Intervene to bridge the gap • Clarification : Some Owners still asking for Basel Convention • Support from International Community : • Support needed from Ship Owners - ships are not diverted to less regulated yards – non HKC yards • Efforts of HKC Recycling yards be rewarded for their investments • 5000 Ship Owners – 300 Recycling Yards – 100 HKC yards – only 15-20 Ship Owners supporting – Not enough for Sustainable Recycling Industry • Owners may have long term association with Yards to achieve sustained growth to Industry

22. Thank You Nitin Kanakiya (+919426910923)Honorary SecretaryShip Recycling Industries Association (India)ngktriveni@hotmail.com