Ship breaking industry

Bplan cum presentation on the ship breaking industries in india and there

1. Shipbreaking Nilesh Jakher Jakher Ship breaking private limited

2. History of Ship Breaking Industry Until the late 20th century, ship breaking took place in port cities of developed countries such as the UK and the US Today, most ship breaking yards are in developing countries, with the largest yards at Gadani in Pakistan, Alang in India , Chittagong in Bangladesh and Aliagain Turkey This is due to lower labor costs and less stringent environmental regulations dealing with the disposal of lead paint and other toxic substances China used to be an important player in the 1990s. It is now trying to reposition itself in more environmentally friendly industries

3. Ship Breaking Ship recycling offers the most environmentally sustainable way of disposing of old vessels, with virtually every part of the hull and machine complex being reused or recycled as scrap metal . Ship breaking is a type of ship disposal process involving the breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair becomes uneconomical Ship breaking allows materials from the ship, especially steel, to be reused Ships contain many hazards that can have significant detrimental effects on humans and the environment if not dealt with properly.  

4. The beaching method depends on skilful harnessing of zero cost tidal energy at sheltered coastal locations and warrants the least capital investment It could be argued that workers were earning well by Indian standards. Also, the shipbreakers were providing jobs for the poorest of India's poor and bringing valuable income to Gujarat. The labourers are migrants who have come to Gujarat from the poorest states in India - from Bihar, Orissa and Uttar Pradesh Considering the favorable parameters for beaching method like high tidal range, firm seabed, gentle seaward slope etc., it was decided to set-up a ship breaking yard on the western coast of Gulf of Cambay near Alang village Alang – A Lucrative Option

5. Alang is a census town in Bhavnagar district in the Indian state of Gujarat Ever since its inception in 1982, Alang has emerged as one of the choicest ship-scrapping destinations for the ship owners around the world The importance of ship breaking as a potential source of raw material for the re-rollers was recognized in early 80's Alang Ship Breaking Industry Background

6. Pollution from ship breaking yards during breaking and scrapping the old ships. Pollution by ship breaking yards 6 The ship breaking industry creates numerous hazards for the coastal and marine environment

7. Pollution by ship breaking yards 85% of total weight is steel. Coating 10 to 100 tons of paint contain Pb, Cd, organotins, As, Zn, Cr. And also contain a wide range of other hazardous wastes, sealants containing PCBs, up to 7.5 tones of asbestos. High concentrations Oil & grease Heavy metals Poor working condition Several thousands liters- oil, polychlorinated biphenyls. 7

8. Bangkok, Thailand June 2009 8 Ship breaking facilities: potential discharges Hazardous waste Anti-fouling systems Radioactive Substances Solid Waste Dry and liquid bulk Bilge Water Ballast Water Cleaning agents Nutrients Liquid waste Hydro blast streams Anti-fouling outwash Storm water discharge Fuel and hydraulic leaks Oil

9. Ship breaking activities are being condemned as the whole process entails a series of risky tasks and as a depot of hazardous substances, which pose threats to the ambient environment and working people Depending on their size and function, scrapped ships have an unladed weight of between 5,000 and 40,000 tones (an average of 13000+) 95% of which is steel, coated with between 10 and 100 tones of paint containing lead, cadmium, organotins , arsenic, zinc and chromium Ship Breaking Industry Concern Areas

10. In Alang old Ships containing these materials are being cut up by hand, on open beaches, under inhumane working conditions Ships also contain a wide range of other hazardous wastes, sealants containing PCBs; up to 7.5 tones of various types of asbestos; several thousands liters of oil (engine oil, bilge oil, hydraulic and lubricant oils and grease) Tankers additionally hold up to 1,000 cubic meters of residual oil. Most of these materials are defined as hazardous waste under the Basel Convention Experts at home and abroad are unanimous in their opinion that ship breaking is a high-risk industry Alang Ship Breaking Concern Areas

11. Hazards of Ship Breaking Industryards of Ship Breaking Industry The hazards linked to ship breaking broadly fall into two categories: Intoxication by dangerous substances Accidents on the plots A brief description on the common hazards that may cause work related injuries and death among ship breakers Waste components in the vessel or board and waste and toxic substances that may inherent in the vessel structure Most of the accidents are caused by toxic gas explosions

12. Alang Ship Breaking Hazards Problems generated by the insufficiencies of current ship-dismantling practices have consequences for not only the environment but also for occupational safety and health of the workers By occupying and expanding the areas required for breaking, the dismantling industry affects both the local surrounding, environment and society The established local community may be relying on basic industries such as fishery and agriculture, hence conflict of interests has become an issue Discharges and emissions to sea, ground and air cause both acute and long term pollution The lack of containment to prevent toxins from entering the environment is a major concern

13. How could we do safe and environment friendly recycling of ships Client logo

14. Breaking the Vessel • Remove fuels, oils, other liquids and combustible Materials • Remove equipment • Remove and dispose of asbestos and PCBs . • Prepare surfaces for cutting • Cut metal • Recycle or dispose of materials .

15. Steps taken for Workers Safety Emergency Response Crane Services Mobile Hydraulic Shear Cutters Shoreside Processing of Metals Fall Protection Workers safety is our priority

16. Health Problems Related to Asbestos Asbestos fibers have the potential to cause disabling lung diseases and cancer. Among the diseases linked to friable asbestos exposure are: Asbestosis - a respiratory disease Lung cancer Mesothelioma - a deadly cancer of the lining of the chest or abdominal cavity PERSONAL PROTECTIVE EQUIPMENT Respiratory Protection

17. Ship breakers must handle and package friable, asbestos-containing material for transport as follows: Wet ACM thoroughly or modify it with a bonding agent, coating, or binder before bagging. Bag ACM in two leak-tight, impermeable bags six ml thick. (Goosenecking is preferred.) Inspect to be sure containers are intact. Place bagged asbestos in a roll-off box lined with plastic taped over the sides of the open top, whenever this is practical Label each bag, drum, or container with the EPA or OSHA danger containers with the generator’s name and address. Shipper/ Customer Responsibilities for Packaging ACM

18. A containment boom is a "temporary floating barrier used to contain an oil spill . Booms are used to reduce the possibility of polluting shorelines and other resources, and to help make recovery easier. Booms help to concentrate oil in thicker surface layers so that skimmers, vacuums, or other collection methods can be used more effectively. They come in many shapes and sizes, with various levels of effectiveness in different types of water conditions

19.   The global shipping downturn and weak macro-economic headwinds since 2009 have facilitated the growth of the ship breaking industry . With the outlook on international shipping freight rates being subdued over the near to medium term and large tonnage expected to come on stream post 2012, the ship breaking industry is expected to continue witnessing a steady supply of vessels for demolition over the medium term. The Indian ship breakers have witnessed a healthy growth in operating income in recent years due to increased availability of ships for dismantling Global condition

20. Effects on the wider economy Market demand for Mild Steel (MS) scrap,and other items Labour costs + other relevant cost Regulations regarding the environmental Impact of the industry  Competition of other countries(mainly-china) Ship-breaking Demand for vessels for scrap Analysis of Future Scope In 2010 the world fleet of ships over 500 GT was around 56,000 ships while the fleet over 3,000 GT was around 32,000 ships. Ships have a limited life-span, reflecting economic, technical and occasionally regulatory considerations. A realistic average life-span of a ship presently is 30 years and thus on average around 1,800 ships of over 500 GT, or 1,000 ships over 3,000 GT need to be recycled each year.  

21. Revenues: • 1)Steel—the most crucial recyclable output in terms of volume and revenue. This steel is either reheated and re-rolled or melted down and re-processed. • 2)Other recyclable items—including non-ferrous scrap, machinery, furniture and f fixtures, and ropes and cabling. Virtually, all items that can be recovered from a ship are recycled in some form. Costs: 1)• Purchase of ship • 2) Investment costs (for equipment and civil works such as cranes, forklifts, storage, and housing) 3)• Financial costs •4) Labor costs 5)• Consumption of utilities (e.g., oxygen, LPG, diesel and electricity) •6) Taxes, tariffs and duties (e.g., import taxes) •7) Rents (e.g., for land use) •8) Other costs (e.g., for handling hazardous waste).   Overall Analysis

22. • 1) Steel—the most crucial recyclable output in terms of volume and revenue. This steel is either reheated and re-rolled or melted down and re-processed. approximately 85 percent of a ship is recyclable steel in the form of directly re-rollable steel (75 percent) and melting scrap (10 percent).15   2)• Other recyclable items—including non-ferrous scrap, machinery, furniture and fixtures, and ropes and cabling and reusable oil . Virtually, all items that can be recovered from a ship are recycled in some form (except hazardous waste).   Revenues

23. Main element Sub element Unit INDIA Revenue from steel $/vessel 4,771,543 Other recyclable items $/vessel 842,037 Total revenue $/vessel 5,613,580   INDIA(Overall Financial Analysis)(14,800 LDT OIL VESSEL) Revenue

24. Purchase of ship 69% Labour costs 2% Consumables 5% Financial costs 3% Taxes, tariffs and duties 5% Other costs (incl. investment costs rents, and other costs) 1% Total costs 84% Environmental friendly technics 4% Comparable profit 12% Cost

25. 1)Purchase of ship $/vessel3,848,000 2)Investment costs $/vessel 21,913 3)Financial costs $/vessel 147,912 4)Labor costs $/vessel 92,653 5)Consumables $/vessel 302,207 6)Taxes, tariffs and duties $/vessel 262,955 6)Rent, levies and duties $/vessel 2,713 7)Other costs $/vessel 13,820 8)Extra cost for environmental Friendly technices a. Purchasing and construction costs for new equipment and infrastructure $/vessel 112,271 b. Manpower costs for new and more timeconsuming work routines $/vessel 56,271 c. Hazardous waste disposal costs $/vessel 56,000 Total costs $/vessel 4,916,7150 Profit $/vessel 696,865 $/LDT 47 Local currency/vessel 39,024,440 Local currency/LDT 2637 Costs

26. 1)ICRA Rating Feature Ship Breaking Industry: Key Trends and Credit Implications ICRA Limited 2)The NGO Shipbreaking Platform 3)Department of Naval Architecture & Marine Engineering Bangladesh University of Engineering & Technology, Dhaka-1000 4)Occupational Safety and Health Administration,U.S. Department of Labor, OSHA 3375-03 2010 5)DIVEST 6)Basel and the Hong Kong Conventions

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