IMOWatch: Dubious Shipping Companies & Fake Documents

13/02/2010

Dubious Shipping Companies & Fake Documents

The Hazardous Wastes/Shipbreaking/Platinum II (Dead US Ship) case is scheduled for hearing on 16th February, 2010 before the Supreme Court bench of Justices Altamas Kabir and Cyriac Joseph. The application with regard to end of life fugitive toxic US ship has been filed today.

Earlier, Ministry of Environment & Forests wrote to Interminiterial Committee on Ship breaking for which Steel Ministry is the nodal point in the matter of investigation of the fugitive dead US ship. It also took note of the need for probe into the issue of fake port of registry of the dead ships that entered Indian waters after the Supreme Court's order of 6.9.2007. Shipping companies use corporate veils to avoid liabilities of their end of life ships. The letter is enclosed.

1 comment:

Negi2 March 2013 at 04:46
Great post. Your site is quite interesting and very well written. I am waiting for your next post

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Efthimios Mitropoulos, Secretary-General, International Maritime Organization (IMO)

Mitropoulos is from Greece. He is the seventh Secretary-General of the IMO, the UN agency concerned with maritime safety and security and the prevention of marine pollution from ships. He had joined IMO in January 1979 as Implementation Officer in the Maritime Safety Division. In November 2003, Mitropoulos was elected Secretary-General for the period 2004 to 2008. In November 2006, the IMO Council decided to renew his mandate for another 4 years, concluding 31 December 2011. He would be remembered for supritending the adoption of a highly regressive International treaty on ship breaking/recycling that threatens vulnerable migrant workers and fragile coastal environment of beaches in South Asia at the behest of shipping companies & ship owning countries. The treaty is likely to come into force in 2016. He has studied Shipping Economics. Consequently, he seems to have mastered the art of externalization of environmental & occupational health costs for the benefit of the affluent companies & countries.

Otapan case restores a precedent

Restoring Le Clemenceau precedent, on 16 May 2008, a major victory was won by the environmental groups as the saga of the controversial ship Otapan finally came to a happy ending as it sailed after decontamination from Amsterdam to the Turkish shipbreaking yards of Aliaga, Turkey near Izmir. The Otapan has a stirring history. Since 1999 the ship was in the Netherlands. In 2001, crew members were caught illegally and dangerously removing asbestos from the ship in the port of Amsterdam. The Dutch ended up seizing the ship. In 2006 the former State Secretary Van Geel gave a permit for export to Turkey. While the ship was on its way to Turkey, Greenpeace Netherlands discovered that the license and the inventory on board listing hazardous wastes was incorrect. The Platform alerted Turkey and the government refused the ship. Despite a special visit to Ankara and an appeal by Van Geel, the Turkish government insisted on a full pre-cleaning and the Otapan came back to the Netherlands.

S S Blue Lady (SS Norway, SS France)

Le Clemenceau, the controversial French air craft carrier

Le Clemenceau, once a symbol of France's naval might, arrived at the Able UK dock on Teesside, northern England on February 8, 2009. The stripped-out hulk will be broken up, three years after the vessel was recalled by the French President following a French court order. Following a successful campaign in India and France by Indian & French environmental groups, it had to return to the port of Brest after failing to find a foreign country willing to dismantle its asbestos-contaminated hull. In India, the ship would have been dismantled on a sea beach by migrant and casual workers in the most vulnerable conditions of safety. Able UK is the firm responsible for this largest ship-breaking contract in Europe although Friends of Hartlepool, a local UK group has reservations about its competence.

Scrapping of Riky (Danish ferry Kong Frederik IX)

First, a ship with dubious credentials leaves the shores of Denmark. Then a month later, India allows it to beach at Alang, Gujarat's massive shipbreaking yard, for scrapping. In between, it gets a new name and rules are flouted to let it in. Unlike Clemenceau, Riky sailed through the both international and national law. In this file photo taken by AP on April 26, 2005, a worker walks on the beach as the former Danish ferry Kong Frederik IX, renamed Riky, lies out in the sea at the Alang Ship Breaking Yard, around 265 kilometers (166 miles) south of Ahmadabad, India.

G.K. Vasan, Union Minister of Shipping

Vasan's Ministry that has underlined formulation of "a policy on environment-friendly ship-breaking" as one of the six key policy issues must take note that there are “many hidden liabilities that have not been addressed” in the proposed shipbreaking treaty by IMO. The ship breaking/recycling industry was consulted in a meeting held on 23rd April 2009 and the stand of the Indian Government was decided based on consensus arrived at during that meeting. The significant areas which were debated and decision taken included the Ship Recycling Plan, receiving tankers for re-cycling with certification as safe-for-entry and safe-for-hot work, ‘Beaching method’ of ship recycling being followed in India, Bangladesh and Pakistan etc. Based on industry's demand India had proposed for inclusion of warships within the scope of the IMO Convention, which has not been agreed upon, on the pretext that, none of the IMO Conventions have the provision for warships and same can be included. The shipbreaking industry is seeking its inclusion in a national legislation as necessary. At present in India the ship breaking activity is regulated by the directives of the Supreme Court of India in their ruling in W.P. (Civil) No. 657 of 1995 vide Order dated 6th September, 2007. A draft Ship Recycling Code is being formulated by the Ministry of Steel, which takes into account the following:- (i) the directions contained in the Supreme Court Order of 2007, (ii) the recommendations of Technical Experts Committee (set up by the Supreme Court), and ; (iii) the requirements of various stakeholders, which include the concerned Ministries/ Departments, Port authorities, Pollution Control Boards and Recycling Industry. Notably, despite the same court order seeking involvement of environmental and labour organisations till date neither the concerned Ministry of Steel nor the Ministry of Shipping has deemed their participation as relevant. The civil society groups feel that IMO's adopted text of the treaty on ship recycling is anti- worker and anti-environment.

Beni Prasad Verma, Union Steel Minister

The subject matter of ship breaking at present remains with the Ministry of Steel as per the list of subjects allocated to the Ministry of Steel, under the Government of India (Allocation of Business) Rules, 1961, the Ministry of Steel will oversee implementation of the proposed Code on Ship Recycling Regulations. Ship breaking activities are reported to cause fall in the steel prices as hundreds of tonnes of scrap steel gets added to the steel supplies in India. More than 600 ships are available for breaking in the international market due to the present recessionary scenario. Each of these ships weighs about 10,000 tonnes to 30,000 tonnes depending upon the capacity. In the wake of this fact, the ship breaking yard is estimated to recover nearly 12 lakh tonnes of scrap steel this year, which is almost double than the previous year. A comprehensive Code on Ship Recycling Regulations is still under preparation by the Shipbreaker Association although Supreme Court had asked the ministry to prepare it. Draft Code has now been prepared. The apex court appointed Inter-Ministerial Committee on Shipbreaking under Union Ministry of Steel has already circulated the draft to the relevant ministries after it has been prepared by the Shipbreakers Association. With the increased availability of scrap steel, which is cost-effective input for rolling mills, the small mills would be able to reduce rebar price. The Joint Plant Committee of Ministry of Steel releases the data on Indian consumption of finished steel. The Supreme Court has reiterated its 14th October 2003 order in the September 6, 2007 order directing that "An Inter-Ministerial Committee comprising Ministry of Surface Transport, Ministry of Steel, Ministry of Labor and Ministry of Environment and Forests should be constituted with the involvement of labor and environment organizations and representatives of the shipbreaking industry" but the same has not be done because of the involvement of labor and environment organizations has not been ensured. This is in violation of the court's directives. Import of ships destined for recycling under this Code shall be subject to the Import and Export Policy of the Government of India as well as various provisions laid down under various Acts/Rules as amended from time to time. At present such import is permitted under Open General License vide tariff item 89.08. Department of Revenue of the Ministry of Finance in consultation with World Customs Organization vide circular No.37/96 dated 3rd July, 1996 has clarified that, apart from the ship, what all contained in the ship such as spares etc. are also covered under tariff item 89.08

Pranab Mukherjee, Union Finance Minister

Directorate General of Central Excise Intelligence (DGCEI) that comes under Finance Ministry can bring order in the Alang ship breaking industry. So far Inter-Ministerial Committee (IMC) on shipbreaking had failed to regulate it. But when IMC Chairman, S. Machendranathan, Additional Secretary & Financial Adviser, Ministry of Steel held its meeting in Alang with Dr Dalip Singh, Joint Secretary, Ministry of Steel & other relevant officials on 17th September, 2010, it appeared that things are all set to change in Alang. It would be apt if the IMC invites DGCEI officials as well in IMC's next meeting. The shipbreakers met Mukherjee with the assistance of Ahmed Patel.

Jairam Ramesh, Minister of Environment & Forests

Ramesh's most recent decision in the matter of dead US ship Platinum II (SS Oceanic, SS Independence) has re-established precautionary principles which were eroded by the previous regime. Earlier, when the findings of an independent visit to the Alang Beach, Bhavnagar, Gujarat along with villagers & fishermen from Alang and surrounding areas were shared in July 2009 pointing out illegal appropriation of Beach land , illegal dumping of wastes on beaches, illegal dumping of hazardous materials like asbestos in the agricultural fields, illegal dumping of wastes & chemicals in the sea, radioactive materials in the ships, disappearance of certain species of fishes, brutal treatment of some 45000 migrant workers from Bihar, Uttar Pradesh, Jharkhand and, Orissa, their living condition and their worst enviro-occupational health situation and illegal sand mining on the beach, the minister promptly responded saying, "this is most useful and i will initiate action immediately."

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