ISRA Network

News item no.19 ISRA attends Round Table meeting UIA Associations in Brussels 4 November 2019 The UNION OF INTERNATIONAL ASSOCIATIONS, founded in 1907. They yearly organize a Round Table as an opportunity to learn through networking and through practice with other international organisations and to share experience and knowledge. Both the secretary general of ISRA, Bernard Veldhoven and director of ISRA, Reinoud Pijpers were present. Although ISRA is a non-member of the UIA, we received an invitation to participate. Some full learning sessions were attended, how to brand your name, what about the (vulnerability) of the financial position and should external funding, i.e. by non-members (of ISRA) be considered. Promotion activities (for organizing congresses etc.) from Canada, Rotterdam to Riga, were undertaken by the representatives of these cities/countries. ISRA talked with Canada and Riga to see if new members can be recruited in those countries and pointed out the importance of international events on ship recycling. NGO Shipbreaking During lunch a meeting with NGO Shipbreaking was arranged by ISRA. It was concluded that the EU-regulation did not end the illegal activities towards the beaches. Far too little is done. It was proposed to organize a meeting in 2020 together with ISRA for green recyclers, green ship-owners, banks, trade unions and other organizations. Europol and IMPEL and some inspectorates will be invited. ISRA will inform its members and use their input and cooperation. To be continued.  

News item nr.18 ISRA attended meeting The Netherlands Trade Union Confederation (FNV) International 8 October 2019 Director ISRA Reinoud Pijpers, attended a meeting of the Dutch Trade Union FNV-International. The meeting was opened by princess Laurentien with as central theme Social Dialogue.

Princess Laurentien of The Netherlands

Mr Kan Matsuzaki

News item no. 17, October 2019 ISRA/ESR at debate evening “With Bare Hands” on 4 October 2019 in Brussels ISRA/ESR’s Peter Wyntin was at the debate evening "With Bare Hands" organized by MO* Magazine, NGO Shipbreaking Platform and FIDH. The moderator was Gie Goris from MO*, journalist and expert on ship dismantling (https://www.mo.be/dossiers/schepen-slopen-brokken-maken) Two panel discussions focused on the toxic trade worldwide. The evening was concluded by the live performance "With Bare Hands" about the shipbreaking activities in Bangladesh. Contacts were made afterwards with MO* Magazine and the NGO Shipbreaking Platform to find out the possibilities for cooperation with ISRA/ESR regarding media coverage of the illegalities within the trade of end-of-life ships.  

News item no. 16 September 2019. Visit European Ship Recyclers (EU section of ISRA) Denmark.             ESR/ISRA was welcomed by the port of Frederikshavn. From 18-21 September 2019 Secretary general ISRA and Director ISRA attended a meeting of the ESR in Denmark organized by Board member and chairman of the ESR, Peter Wyntin of Galloo Gent. The discussions during the meeting made very clear that the system of enforcement does not work, despite the new EU-regulation: too many ships circumvent the regulation and end up at a beach. Peter presented a number of convincing violations by owners of European flagged ships who bring their end of life ships illegally to the beaches. The lack in the regulation that the owners as such are not addressed, feels very bad. These practices as shown in the past are still continued. Though the meeting was not explicit conclusive on measures to be taken it became clear that something has to be done to stop these illegalities. ISRA will work on it. The new (candidate) EU-commissioner, Virginijus Sinkevicius from Lithuania, responsible for the EU SRR will be approached by ISRA and confronted with the fact that EU flagged ships are still not offered to EU listed member states yards, despite the goals of the regulation. The members present felt that seeking publicity about the run of owners to beaches can be very effective. Because that might trigger politicians to take action. ISRA will contact NGO Shipbreaking to coordinate concrete publicity actions. ISRA itself will continue to approach enforcements agencies. Visit to member M.A.R.S. Modern American Recycling Services (M.A.R.S.) has opened a brand-new facility in Frederikshavn. This enormous facility can handle the biggest ships and offshore installations and will give work in the future for about 200 people. Crown prince Frederik opened this new facility. Visit to Smedegaarden The next day a visit was paid to the yard of Smedegaarden in Esbjerg. Morton Smedegaard showed us his recycling yard which is submitted to a huge renovation and extension. Morten also exploits an impressive storage with literally tons of spare parts and material to be reused. The second-hand store contributes structurally to the Smedegaarden recycling activities and provides continuity of the total activities.        

It is with great sadness that The International Ship Recycling Association has to inform you of the sudden passing of our co-founder Tom Peter Blankestijn. Tom Peter was instrumental in founding our Association in 2007. Sound and safe ship recycling was the point of departure for him, not only practiced in his company Sea2Cradle, but also intellectually in his numerous contributions in the field of policy making. For ISRA he was always very active whether in a visible role, or in the background. Tom Peter was 58. His passing is a great loss, not only for our Association, but the wider sector. We will remember him and his contribution fondly. At this moment in time our thoughts are with his family and friends.

News item no.15 June 2019. Visit Turkish delegation to maritime industry of the Netherlands, 18 June 2019. During a three day visit to the maritime industry of the Netherlands a delegation from Turkey, Turkish ministry of Environment and universities, had the opportunity to get acquainted with various parts of the maritime industry. ISRA made a presentation about sound and safe ship recycling and pointed out the role of Turkey in the past, the present and future in this field. Mr.Mehmet Tamer COBANOGLU Mr. M. Cobanoglu from the ministry of environment and urbanisation, presented the (Ter-temiz) Project. In this project activities of shipyards (Tuzla Shipyard Area Istanbul, Aliaga Ship Recycling Area) are scrutinized on effects of these activities on the environment. The results of this project are foreseen end of this year.    

News item no. 14 May 2019. ISRA attends meeting IMO, Hong Kong Convention 10 May 2019, London Director ISRA, Reinoud Pijpers, emphasized the importance of China as a ship recycling country with top facilities. The secretary general of the IMO, Mr. Kitack Lim in close cooperation with the Japanese government organized this meeting “towards the early entry into force of the Hong Kong Convention”. About 300 attendees were present. The purpose of the seminar was to increase the international awareness of the importance of an early entry into of the HKC. The meeting was opened by Mr. Kitack Lim. Secretary general IMO Mr. Kitack Lim A broad range of organizations were present. Amongst them: ICS, ECSA, Class NK and ISRA. From the “member states” of the IMO, Japan, India, Bangladesh, Norway China participated. The EU also participated in this event. Director ISRA introduced ISRA in his presentation as the company based association promoting sound and safe ship recycling. He pointed out that the Hong Kong Convention was a good first step on sound and safe ship recycling, but that the EU-Regulation with its strict technical requirements and the verification/certification process through an independent verifier is covering the ISRA standards and practices. Further more he took this opportunity to illustrate the importance of the Chinese market for ship recycling. China has excellent ship recycling facilities. China being a large ship building exporting can balance this export by re-opening the borders for end of life ships. ISRA called upon the Chinese authorities to reconsider their policies in this field.

News item 13, May 2019 ECSA visit to Indian Ship Recycling Facilities

ECSA VISIT TO INDIAN SHIP RECYCLING FACILITIES ALANG-SOSIYA, 25 – 27 FEBRUARY 2019 ECSA REPORT

©ECSA

April 2019 1

Contents List of abbreviations ...........................................................................................3 1. 2. 3. Executive summary ...................................................................................4 Background information .............................................................................5 The IMO Hong Kong Convention.............................................................5 The EU Ship Recycling Regulation and technical guidance note ..................6 ECSA visit: purpose and outcome ................................................................9 Visit purpose .......................................................................................9 Outcome of the visit to Alang-Sosyia .................................................... 10 Overall progress...........................................................................10 Waste handling and downstream waste management .......................12 Medical health care & labour housing colony ....................................13 Outcome of the visit to the steel industry in Bhavnagar-Shihor ................ 14 The sustainable development of the wider region...................................16 The EU SRR as a catalyst for sustainable development in Alang ...............16 Practical challenges..................................................................................18 Conclusions ............................................................................................20 Annex 1: programme .......................................................................................23 4. 5. 2.1. 2.2. 3.1. 3.2. 3.2.1. 3.2.2. 3.2.3. 3.3. 3.4. 3.5. 2

List of abbreviations AASSRGWA ACM CSR ECSA EU SRR GEPIL GMB GPCB HKC IHM UNCLOS PPE SRF SRIA TSDF Alang Sosiya Ship Recycling General Workers' Union Asbestos Containing Materials Corporate Social Responsibility European Community Shipowners’ Associations European Regulation on ship recycling (No. 1257/2013) Gujarat Environment Protection & Infrastructure Ltd (India) Gujarat Maritime Board (India) Gujarat Pollution Control Board (India) International Convention for the Safe and Environmentally Sound Recycling of Ships (2009) Inventory of Hazardous Materials United Nations Convention of the Safety of Lives at Sea Personal Protective Equipment Ship Recycling Facility Ship Recycling Industries Association (India) Hazardous waste Treatment, Storage and Disposal Facilities 3

1. Executive summary The aim of the visit was to create a better understanding of the possible threats to and opportunities for the (Indian) ship recycling industry and the (European) shipping industry. The challenges stem from recent European and International legal developments. At the same time, participants were invited to witness the progress made on the ground at the ship recycling facilities and to see how safe and environmentally sound recycling operations can take place sustainably in intertidal zones in India. To further fully understand the impact of the ship recycling industry on the sustainable development of the region as a whole, part of the visit was dedicated to the downstream waste management and the steel making industry as well, as inseparable parts of a sustainable circular economy. The underlining idea was that if Indian facilities meet the requirements of the European Ship Recycling Regulation 1257/2013 (EU SRR), they should be eligible for inclusion in the EU list of ship recycling facilities. This inclusion would then in turn facilitate the further upgrading of a sustainable ship recycling industry worldwide and facilitate prompt ratification of the IMO Hong Kong Convention (HKC). Since 2016, many facilities have received statements of compliance with HKC and the EU SRR by Classification Societies and have applied to be included in the EU list. With this aim, those facilities have started to implement new procedures and management systems that would overcome and offset anticipated temporary financial losses. The latter could however be mitigated by the steady flow of end of life ships, and responsible involvement of both shipowners and cash buyers must therefore be part of the solution. Therefore, the major stakeholders that can impact the final outcome of the current legal processes at the European and the international level are the European competent legislators, the (European) shipping industry and the (Indian) ship recycling industry, each to a greater or lesser extent. The EU Ship Recycling Regulation can only fully meet its aim to facilitate the Hong Kong Convention within the EU and in third countries provided it is inclusive. If facilities in third countries comply to the legal requirements of the EU Ship Recycling Regulation, their inclusion will facilitate the third country government to ban substandard ship recycling practices and ratify the Hong Kong Convention, providing a global solution and level playing field to an industry operating internationally. The entire visit was marked by the willingness of the side of the ship recycling facilities, the Ship Recycling Industries Association (India) SRIA and the authorities, namely the Gujarat Maritime Board (GMB), to transparently demonstrate and critically discuss the actual state of play towards healthy, safe and environmentally sound recycling operations in Alang-Sosiya. 4

2. Background information 2.1. The IMO Hong Kong Convention The 2009 International Convention for the Safe and Environmentally Sound Recycling of Ships, also known as the ‘Hong Kong Convention’ (HKC), was adopted in 2009. Itprovides a meaningful system of workable and enforceable regulations with the ultimate goal of lifting the level of sustainability of recycling facilities on a global scale to the benefit of all parties involved. The HKC places clear and pertinent obligations on all parties concerned – shipowners, recycling facilities, flag states, port states as well as recycling states – to ensure that end-of-life ships do not pose any unnecessary risks to human health, safety and the environment during their life-time and when being recycled. The underlying principle when developing the HKC was the real and urgent need to address the poor working conditions, the lack of training and the environmental degradation in substandard ship recycling facilities worldwide. To achieve this, the HKC set itself as the global standard below which no single recycling facility would fall, provided that the right mind set, investment and training was provided. To date ten countries have ratified the Convention (Belgium, Denmark, France, Japan, the Netherlands, Norway, Panama, the Republic of the Congo, the Republic of Serbia and Turkey). These States represent around 23,16 % of the gross tonnage of the world’s merchant shipping. The combined annual ship recycling volume of the contracting states during the preceding 10 years is around 0,6 % of the merchant shipping tonnage of the same states. For the Convention to enter into force, ratification by 15 States is necessary, representing 40 % of world merchant shipping by gross tonnage and a combined maximum annual ship recycling volume not less than 3 % of their combined tonnage. Based on the latest publication by IHS Ltd for the fleet and recycling volumes in 20181, this means: -  15 States; -  whose fleets amount to at least 533.457.349 GT (i.e. 40 % of the 2018 world fleetof 1.333.643.373 GT); and -  whose recycling facilities’ combined maximum annual ship recycling volume is16.003.720 GT or more (i.e. 3 % of the condition on the Contracted tonnage of 53.457.349 GT). Satisfying the first two conditions is not an obstacle to the entry-into-force of the HKC. The critical issue will be to meet the third condition. This requires that the combined maximum annual ship recycling volume in the preceding 10 years is not less than 3 % of the contracting tonnage. The maximum annual tonnage is assessed for each of the 1 Calculations and table by Dr Nikos Mikelis – based on data provided by IHS Global Ldt 5

countries that have ratified HKC by assigning to that country the maximum gross tonnage that was recycled in a single year during the 10 most recent years2. Table 1: recycling capacity - Dr Mikelis – data from IHS Global Ldt, World Casualty Statistics To secure the circa 16 million GT of recycling capacity there is no doubt that India and China hold the key, as can be seen from the current official data above. Interestingly, the whole of the European Union (including France, Belgium and Denmark, as well as the UK) this year adds to just 223.394 GT, which is just 0,57 % of the world’s capacity. Worthwhile mentioning as well is that, although the Hong Kong Convention has not yet entered into force, voluntary compliance to it can be achieved by ship recycling facilities through obtaining a statement of compliance from an independent classification society. Many non-EU facilities have already undertaken these efforts, while it seems that EU ship recycling facilities have not yet taken any interest in the process. 2.2. The EU Ship Recycling Regulation and technical guidance note In 2013, the European Union adopted the EU Ship Recycling Regulation (EU SRR), which broadly reflects the main provisions of the HKC. The EU SRR foresees in an EU approved list of recycling facilities where EU-flagged vessels will have to be recycled. The EU list could play a strategic role in motivating ship recycling facilities all over the world to become compliant with the HKC requirements, ahead of the entry into force of the HKC. In order to incentivise each and every ship recycling facility situated outside the European Union to be -voluntary- compliant with the EU SRR and, therefore, the Hong Kong Convention, an open and inclusive process is required. 2 This method was borrowed from OECD where it was used to calculate shipbuilding capacity, while accounting of dormant capacity 6

Picture 1: operating from built structures Today, the EU list contains only ship recycling facilities located in the EU, Norway, Turkey and the United States. Two Indian facilities are in the process of inspection and evaluation while more inspections to other Indian facilities are planned to take place in 2019. The EU SRR itself does not a priori preclude facilities that operate in intertidal zones from being eligible for inclusion on the EU list. The interpretation developed by the EU Commission however, via the Technical Guidance Note, makes any sustainable ship’s dismantling operations in intertidal zones technically challenging. The note states for instance that any contact between hazardous waste (e.g. blocks and cut parts of the ship’ structure) and water/non-impermeable floors has to be completely avoided during the recycling process. One could even question whether these technical requirements can be met by ship recycling facilities using the so-called ‘alongside method’ or the ‘landing method’ in non-intertidal zones. Reference can here be made e.g to the question on What is meant by ‘impermeable floors’ and ‘built structures’. While in the meantime the Indian ship recycling facilities have showcased that they can avoid the actual contact of blocks with the intertidal zone and thus can operate from built structures, the next challenge presented to the Indian ship recycling facilities by the EU inspection team is how they can ensure sufficient and adequate medical care for the workers (being interpreted as the availability of a hospital in the vicinity of the ship recycling area). This way, the non-legally-binding technical guidance note interprets the EU SRR in a far-reaching and more stringent manner than the EU SRR. This may discourage the ship recycling facilities in third countries to further apply for inclusion in the EU List. Especially those ship recycling facilities in India that have engaged already in establishing standards equivalent to HKC and who are receiving statements of compliance from other classification societies than the one acting on behalf of the EU Commission. However, a pragmatic approach during the auditing process under the EU SRR would give those facilities certified by classification societies against EU SRR compliance a fair opportunity to be included in the European List. Today a handful of facilities In India have already been stated in compliance to the HKC and the EU SRR by independent Classification societies. This restrictive interpretation by the EU Commission and as such by the one classification society acting on behalf of the EU Commission may eventually make it very difficult for EU flagged vessels to comply with the EU SRR, as adequate capacity is not be available on the EU list. Not only in terms of volume, but especially in terms of the size of ships enabled to be recycled and the geographical spread of compliant 7