Charter rates for liquefied natural gas tankers on short-term hauls declined 17 per cent last year because of an increase in new vessels, Poten & Partners said.
Rates to rent LNG tankers fell to about US$46,600 a day for steam turbine vessels of 138,000 to 150,000 cubic metres in capacity, Poten, a US energy consultant, said in a report.
'With a record number of new builds entering the fleet, market needs were easily accommodated and except for a few instances, prompt ships were always available,' the report said.
'Despite a robust cargo market with record numbers of spot shipments being diverted from the Atlantic Basin to destinations east of Suez, chartering activity remained muted through July.'
The number of LNG ships worldwide will increase by more than 50 per cent in 2010 after shipyards delivered a record 58 vessels last year, David Fuller, the London-based head of LNG for RWE AG, said at the Gas Asia conference in Kuala Lumpur on Wednesday.
Daily charter rates in 2008 were in a range of US$40,000 to US$50,000 about 60 per cent of the time, according to the report.
Charter rates for ships transporting spot cargoes have declined to about US$35,000 to US$40,000 a day currently, Gunaseharan Ganapathy, vice-president of LNG at MISC Bhd, said on Wednesday. Charterers may have paid as much as US$75,000 a day during winter 2007, according to Drewry Maritime Services Ltd.
MISC, the world's largest owner of liquefied natural gas tankers, expects a surplus of vessels this year and next as ship deliveries precede the start up of projects and the global recession cuts Asia's demand for the fuel, Mr Ganapathy said.
LNG is natural gas that has been reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius for transportation by ship to destinations not connected by pipeline. On arrival, it is turned back into gas for distribution to power plants, factories and households. -- Bloomberg
Monday, 23 March 2009
Maersk tankers “Ready for CO2 transport market”
AP Moller – Maersk Group subsidiary Maersk Tankers says it is ready to enter the CO2 transportation market to help promote Carbon Capture and Storage (CCS), one of the technologies identified as key to mitigate the effects of climate change.
“With this initiative we want to show industrial leadership by demonstrating we can act on the global challenge that is carbon emissions,” says Martin Fruergaard, senior vice president, Maersk Tankers in a paper presented at the International Scientific Congress on Climate Change in Copenhagen last week.
“Our decision reflects the AP Moller – Maersk Group’s approach to the global challenge on climate change, which is to develop innovative and creative ways to limit carbon emissions,” says Mr Fruergaard.
Maersk Tankers says it has examined the business case for entering into the CO2 transportation market for either offshore storage or enhanced oil recovery (EOR), using CO2 to increase oil recovery rates in maturing fields. “By utilizing our experience in transporting liquefied petrochemical and natural gasses, we have developed a large scale case for transport of CO2 for storage or EOR,” says Martin Fruergaard.
According to Maersk Tanker studies, more than 750 million tonnes of CO2 are emitted from large stationary power plants close to the sea in the North Sea region alone. Fifteen handysize (20,000 cu m) gas carriers could transport more than half of Denmark’s annual CO2 emissions for storage in the North Sea, the equivalent of all CO2 from large Danish stationary emission sources. CO2 fraction retained in selected reservoirs is likely to exceed 99 percent over 1,000 years, according to the Intergovernmental Panel on Climate Change.
Furthermore, according to Maersk, transporting CO2 by sea is cost-competitive and more flexible than pipelines on longer distances or in smaller quantities.
“With this initiative we want to show industrial leadership by demonstrating we can act on the global challenge that is carbon emissions,” says Martin Fruergaard, senior vice president, Maersk Tankers in a paper presented at the International Scientific Congress on Climate Change in Copenhagen last week.
“Our decision reflects the AP Moller – Maersk Group’s approach to the global challenge on climate change, which is to develop innovative and creative ways to limit carbon emissions,” says Mr Fruergaard.
Maersk Tankers says it has examined the business case for entering into the CO2 transportation market for either offshore storage or enhanced oil recovery (EOR), using CO2 to increase oil recovery rates in maturing fields. “By utilizing our experience in transporting liquefied petrochemical and natural gasses, we have developed a large scale case for transport of CO2 for storage or EOR,” says Martin Fruergaard.
According to Maersk Tanker studies, more than 750 million tonnes of CO2 are emitted from large stationary power plants close to the sea in the North Sea region alone. Fifteen handysize (20,000 cu m) gas carriers could transport more than half of Denmark’s annual CO2 emissions for storage in the North Sea, the equivalent of all CO2 from large Danish stationary emission sources. CO2 fraction retained in selected reservoirs is likely to exceed 99 percent over 1,000 years, according to the Intergovernmental Panel on Climate Change.
Furthermore, according to Maersk, transporting CO2 by sea is cost-competitive and more flexible than pipelines on longer distances or in smaller quantities.
Looking to get out of the economic morass
The 6th edition of the Indian Ports & Shipping International conference was held on March March17th & 18th, 2009 at Hotel Taj President, Mumbai. It served to focus on issues that could put the maritime industry on the path to recovery.
Held by India’s premier organisation - the Bombay Chamber of Commerce & Industry - the deliberations centred round the theme The Maritime Industry - Catalyst for Economic Growth. The event drew several players from the logistic and maritime sector in the hope of finding some ready solutions to help wriggle out of the recessionary conduit.
There was a consensus that now was the time to build capacity and bring in efficiency. Infrastructure development would ensure better connectivity and help reduce cost. As ship building, ship breaking, dredging, offshore, inland and coastal water tourism and transport, manpower development, etc., was seeing a significant growth there was plenty of scope for investors.
“China has been able to sustain a 9% economic growth because it gave importance to this sector,” pointed out S. Hajara, chairman and managing director of Shipping Corporation of India (SCI) and president of the Indian National Shipowners’ Association (INSA). “In the present stage of economic development, India’s liner trade will see a high growth area. The average terminal capacity utilization at the country’s premier container terminal viz. JNPT was 90% vis-à-vis global average of 70% to 75%. We need to create more capacity.”
“We need to develop capacity so that we can operate at an acceptable level of 70%,” concurred Dr Anup Chanda, chairman of the Indian Ports Association. “We must go in for vertical expansion and not just horizontal. Unless we develop the coastal and inland waterways connectivity we will have to continue falling back on road and rail transport which besides being costly, cause pollution and congestion.”
Capt Sandeep Mehta, CEO, Mundra Port & SEZ Ltd, said, “The downturn should be considered as a time which is offering a breathing space to bring in to place the required infrastructure so that when the next spurt comes in we should not be caught napping.”
“The multiplier effect of growth in shipbuilding can create a total investment of Rs 37,000 crores in the Indian economy by 2012 and around Rs 2,22,000 crore by 2017,” stated Vijay Kumar, managing director of Bharati Shipyard Ltd. and president of the Shipyards Association of India. “This can enhance the overall economic output to around Rs 3,42,000 crore by 2017. Because of the shortage of shipyards capacity in India, the Indian Navy will get a large number of vessels constructed from outside India. The Navy also plans to take over the Hindustan Shipyard Ltd. The coast guard too is looking to having a large number of vessels constructed which may happen in foreign shipyards. Considering the massive employment opportunity and the benefit to the economy the government should restore the subsidy to make the shipyards competitive.”
Considering the importance of connectivity S. S. Hussain, chairman of JNPT did not want financial outlays made for developing connectivity to be considered as expenditure but as an investment. He welcomed the government plans for going ahead with the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 Crore.
“Most of the Indian Containers are trans-shipped at Colombo, Singapore and Dubai because Indian ports do not have sufficient draft and lack supporting infrastructure to handle fifth and sixth generation vessels,” observed Maya Sinha, Deputy Chairman JNPT. “With the increase in container traffic, shipping lines are in a position to provide their customers in India direct sailing, especially to destinations in Europe and North America which will lead to an increase in percentage of larger vessels coming to India subject to increase in available draft and other infrastructure.”
Competitive ports need a deeper draft as a pre-requisite in order to cater to increased traffic, accommodate main line vessels operating in the shipping trade, enhance capacity of the ports through construction of new ports or expansion and development of the existing ones and create hub port services for the trans-shipment of containers.
Rakesh Srivastava, Jt. Secretary, Ministry of Shipping, Government of India, outlined some of the present projects. Capital dredging for major ports with a target to increase the draught to between 14m to 17m is underway at JNPT, Paradip, Mumbai, Visakhapatnam, Tuticorin, Cochin and Ennore Ports at a total cost of Rs. 2382 Crore. “With the deepening and widening of the entrance channel at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore it would facilitate larger size vessels to call at these ports,” he said.
He also informed that 9 projects were under implantation at each of the major ports to provide a minimum of 4-lane connectivity at a total cost of Rs. 1859 Crores. Besides, each Major Port would have double line rail connectivity and in this regard eight projects totalling 961.56 km were under implementation at a total cost of Rs. 2118.84 Crore. Besides, two dedicated high axle load freight corridor each on Western and Eastern routes is underway.
Bhavesh Gandhi, Executive Vice Chairman, Pipavav Shipyard Ltd., too projected the immense opportunities that existed in ship building. He pointed out that INSA has projected that about 50% of the Indian fleet (about 37 vessels) have to be scrapped within the next five years to comply with the International Maritime Organisation’s regulations. Besides, the Association has projected an expansion of the Indian fleet to 830 vessels or 12 million Dwt by 2012.
Making a comparison he stated that the fuel consumption for every tonne/km of cargo carried through waterways is only 15% of that consumed by road and 54% of that by rail. Studies have shown that diverting 5% of road cargo to coastal shipping shall result in a saving of Rs 15-20 billion annually. In order to be competitive more cargo would be seen getting transported by the coast and inland waterways. Hence, there would be further demand for ship building.
Mr A. P. V. N. Sarma, Union Shipping Secretary the chief guest at the function in his theme address informed that the Ministry of Finance has been asked to consider a stimulus package for the ports and shipping sector. He emphasised that he was working towards facilitating all-round growth in the shipping, ports and associated sectors, with focus on increasing the national tonnage, identifying and implementing public-private partnership (PPP) projects, improving connectivity, innovating in dredging and other areas, and enhancing training standards.
Held by India’s premier organisation - the Bombay Chamber of Commerce & Industry - the deliberations centred round the theme The Maritime Industry - Catalyst for Economic Growth. The event drew several players from the logistic and maritime sector in the hope of finding some ready solutions to help wriggle out of the recessionary conduit.
There was a consensus that now was the time to build capacity and bring in efficiency. Infrastructure development would ensure better connectivity and help reduce cost. As ship building, ship breaking, dredging, offshore, inland and coastal water tourism and transport, manpower development, etc., was seeing a significant growth there was plenty of scope for investors.
“China has been able to sustain a 9% economic growth because it gave importance to this sector,” pointed out S. Hajara, chairman and managing director of Shipping Corporation of India (SCI) and president of the Indian National Shipowners’ Association (INSA). “In the present stage of economic development, India’s liner trade will see a high growth area. The average terminal capacity utilization at the country’s premier container terminal viz. JNPT was 90% vis-à-vis global average of 70% to 75%. We need to create more capacity.”
“We need to develop capacity so that we can operate at an acceptable level of 70%,” concurred Dr Anup Chanda, chairman of the Indian Ports Association. “We must go in for vertical expansion and not just horizontal. Unless we develop the coastal and inland waterways connectivity we will have to continue falling back on road and rail transport which besides being costly, cause pollution and congestion.”
Capt Sandeep Mehta, CEO, Mundra Port & SEZ Ltd, said, “The downturn should be considered as a time which is offering a breathing space to bring in to place the required infrastructure so that when the next spurt comes in we should not be caught napping.”
“The multiplier effect of growth in shipbuilding can create a total investment of Rs 37,000 crores in the Indian economy by 2012 and around Rs 2,22,000 crore by 2017,” stated Vijay Kumar, managing director of Bharati Shipyard Ltd. and president of the Shipyards Association of India. “This can enhance the overall economic output to around Rs 3,42,000 crore by 2017. Because of the shortage of shipyards capacity in India, the Indian Navy will get a large number of vessels constructed from outside India. The Navy also plans to take over the Hindustan Shipyard Ltd. The coast guard too is looking to having a large number of vessels constructed which may happen in foreign shipyards. Considering the massive employment opportunity and the benefit to the economy the government should restore the subsidy to make the shipyards competitive.”
Considering the importance of connectivity S. S. Hussain, chairman of JNPT did not want financial outlays made for developing connectivity to be considered as expenditure but as an investment. He welcomed the government plans for going ahead with the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 Crore.
“Most of the Indian Containers are trans-shipped at Colombo, Singapore and Dubai because Indian ports do not have sufficient draft and lack supporting infrastructure to handle fifth and sixth generation vessels,” observed Maya Sinha, Deputy Chairman JNPT. “With the increase in container traffic, shipping lines are in a position to provide their customers in India direct sailing, especially to destinations in Europe and North America which will lead to an increase in percentage of larger vessels coming to India subject to increase in available draft and other infrastructure.”
Competitive ports need a deeper draft as a pre-requisite in order to cater to increased traffic, accommodate main line vessels operating in the shipping trade, enhance capacity of the ports through construction of new ports or expansion and development of the existing ones and create hub port services for the trans-shipment of containers.
Rakesh Srivastava, Jt. Secretary, Ministry of Shipping, Government of India, outlined some of the present projects. Capital dredging for major ports with a target to increase the draught to between 14m to 17m is underway at JNPT, Paradip, Mumbai, Visakhapatnam, Tuticorin, Cochin and Ennore Ports at a total cost of Rs. 2382 Crore. “With the deepening and widening of the entrance channel at Paradip, Visakhapatnam, Chennai, Ennore, Tuticorin, New Mangalore it would facilitate larger size vessels to call at these ports,” he said.
He also informed that 9 projects were under implantation at each of the major ports to provide a minimum of 4-lane connectivity at a total cost of Rs. 1859 Crores. Besides, each Major Port would have double line rail connectivity and in this regard eight projects totalling 961.56 km were under implementation at a total cost of Rs. 2118.84 Crore. Besides, two dedicated high axle load freight corridor each on Western and Eastern routes is underway.
Bhavesh Gandhi, Executive Vice Chairman, Pipavav Shipyard Ltd., too projected the immense opportunities that existed in ship building. He pointed out that INSA has projected that about 50% of the Indian fleet (about 37 vessels) have to be scrapped within the next five years to comply with the International Maritime Organisation’s regulations. Besides, the Association has projected an expansion of the Indian fleet to 830 vessels or 12 million Dwt by 2012.
Making a comparison he stated that the fuel consumption for every tonne/km of cargo carried through waterways is only 15% of that consumed by road and 54% of that by rail. Studies have shown that diverting 5% of road cargo to coastal shipping shall result in a saving of Rs 15-20 billion annually. In order to be competitive more cargo would be seen getting transported by the coast and inland waterways. Hence, there would be further demand for ship building.
Mr A. P. V. N. Sarma, Union Shipping Secretary the chief guest at the function in his theme address informed that the Ministry of Finance has been asked to consider a stimulus package for the ports and shipping sector. He emphasised that he was working towards facilitating all-round growth in the shipping, ports and associated sectors, with focus on increasing the national tonnage, identifying and implementing public-private partnership (PPP) projects, improving connectivity, innovating in dredging and other areas, and enhancing training standards.
Monday, 9 March 2009
Interview with David Cockroft, General Secretary of International Transport Federation
Q) What is the stand of ITF on the on-going piracy?
Piracy is a major problem in the world though much lesser than the problem that evolves because we finally got the major maritime nations of the world to act in concert and to put up a serious military force. This has already made a big difference in the number of hijackings taking place.
Also it is more important we now have an agreement with our ship owner counterparts that no seafarer can be forced if he decides not to go in piracy infected area and that he cannot be penalised in any way. And if they do go they get paid double the wages.
Q) What according to you needs to be done to stop the piracy?
It is all because Somalia does not have a proper government that piracy has become a thick business. When the Sirius Star was taken they got a massive $ 3 million for that. But the fact is, if you are defending the seafarers there has got to be negotiations. At the end the military authorities of the countries concerned have got to intervene.
Everybody knows where these pirate bases are. Every body knows from where they are dispatching small ships to lodge their attack. I would favour the navies going and bombing their bases, which of course could be considered a violation of a national sovereignty. But then the country does not have an effective government. However, unless the international community takes strong effective military action by killing a few pirates I don’t think it will help to solve the problem.
Q) What further course of action does ITF proposes with regard the two detained Indian Officers of V Ships in Korea?
The two officers in my view will be released quite soon when their appeal comes up for hearing. When they were detained I had visited them in Korea and met them and their wives and had talked to them. Whatever the nature of the incident, we will work to stop the criminalisation of seafarers.
Q) How is it that ITF has given recognition to two seamen’s unions in the same country? In India you have recognised NUSI and the FUSI besides the officers’ union - MUI?
Well we do it all the time. We have given recognition to multiple unions in a country all over the world and India is no exception. We recognise and accept membership from any democratically controlled trade union which represents the interest of the seafarers. In fact, today I came here for the NUSI’s function from the FSUI’s office. And we find FSUI being a well democratic controlled trade union and we wish it well. What we hope more and more is that better co-operation between NUSI and FUSI ensues. We are not going to chose sides between one good union and not so good union. What we need are unions which look after the interest of Indian seafarers both on Indian flag ships and foreign flag ships.
There is no doubt that FSUI is the majority union on the Indian flag whereas NUSI is probably a majority union on both the foreign flag and Indian flag and the agreement are held accordingly - but I am not going to be involved in this. FSUI came into the ITF with the full support of NUSI. Of course we did get involved into negotiations to achieve that. NUSI did not come with objections. FUSI came in and met with NUSI on a regular basis and as far as I am concerned is to advance the interests of the Indian seafarers.
Q) In Mumbai there are nearly 14 unions operating. Don’t you think that by giving recognition to one union and not the other it could create intra-union rivalry and in the process the interests of the seafarers could get ignored?
We are not in favour of union monopoly. Union monopoly is not in the interest of trade unions. Any union which is genuinely democratically controlled by the members which chooses to join the ITF will be welcomed. We don’t like union which are wholly depended on political parties. I don’t think that ITF is likely to accept 14 unions. At the moment in many countries around the world we have two or three or sometimes even four seafarers’ unions, they work together in the end. The section 87 of the ILO says the workers should be free to join the union of their choice. If seafarers choose to join FSUI then it is fine. If they choose to join NUSI, fine it the freedom that matters. And we continue to encourage good relationship. We will see that very good close working relation results between both those unions.
Piracy is a major problem in the world though much lesser than the problem that evolves because we finally got the major maritime nations of the world to act in concert and to put up a serious military force. This has already made a big difference in the number of hijackings taking place.
Also it is more important we now have an agreement with our ship owner counterparts that no seafarer can be forced if he decides not to go in piracy infected area and that he cannot be penalised in any way. And if they do go they get paid double the wages.
Q) What according to you needs to be done to stop the piracy?
It is all because Somalia does not have a proper government that piracy has become a thick business. When the Sirius Star was taken they got a massive $ 3 million for that. But the fact is, if you are defending the seafarers there has got to be negotiations. At the end the military authorities of the countries concerned have got to intervene.
Everybody knows where these pirate bases are. Every body knows from where they are dispatching small ships to lodge their attack. I would favour the navies going and bombing their bases, which of course could be considered a violation of a national sovereignty. But then the country does not have an effective government. However, unless the international community takes strong effective military action by killing a few pirates I don’t think it will help to solve the problem.
Q) What further course of action does ITF proposes with regard the two detained Indian Officers of V Ships in Korea?
The two officers in my view will be released quite soon when their appeal comes up for hearing. When they were detained I had visited them in Korea and met them and their wives and had talked to them. Whatever the nature of the incident, we will work to stop the criminalisation of seafarers.
Q) How is it that ITF has given recognition to two seamen’s unions in the same country? In India you have recognised NUSI and the FUSI besides the officers’ union - MUI?
Well we do it all the time. We have given recognition to multiple unions in a country all over the world and India is no exception. We recognise and accept membership from any democratically controlled trade union which represents the interest of the seafarers. In fact, today I came here for the NUSI’s function from the FSUI’s office. And we find FSUI being a well democratic controlled trade union and we wish it well. What we hope more and more is that better co-operation between NUSI and FUSI ensues. We are not going to chose sides between one good union and not so good union. What we need are unions which look after the interest of Indian seafarers both on Indian flag ships and foreign flag ships.
There is no doubt that FSUI is the majority union on the Indian flag whereas NUSI is probably a majority union on both the foreign flag and Indian flag and the agreement are held accordingly - but I am not going to be involved in this. FSUI came into the ITF with the full support of NUSI. Of course we did get involved into negotiations to achieve that. NUSI did not come with objections. FUSI came in and met with NUSI on a regular basis and as far as I am concerned is to advance the interests of the Indian seafarers.
Q) In Mumbai there are nearly 14 unions operating. Don’t you think that by giving recognition to one union and not the other it could create intra-union rivalry and in the process the interests of the seafarers could get ignored?
We are not in favour of union monopoly. Union monopoly is not in the interest of trade unions. Any union which is genuinely democratically controlled by the members which chooses to join the ITF will be welcomed. We don’t like union which are wholly depended on political parties. I don’t think that ITF is likely to accept 14 unions. At the moment in many countries around the world we have two or three or sometimes even four seafarers’ unions, they work together in the end. The section 87 of the ILO says the workers should be free to join the union of their choice. If seafarers choose to join FSUI then it is fine. If they choose to join NUSI, fine it the freedom that matters. And we continue to encourage good relationship. We will see that very good close working relation results between both those unions.
DGS’s Stimulus package set to boost coastal shipping
The Director General of Shipping has assured a stimulus package to boost coastal shipping. This could not only dramatically enhance employment but also lead to a significant shift in cargo movement from the ‘costlier’ road and rail networks to the ‘cheaper’ and more environment-friendly water transport systems along the coast and through inland waters.
Ms Lakshmi Venkatachalam, Director General of Shipping, Government of India promised the trade various measures that she would take in this regard while deliberating on the Directorate’s notification for the construction, survey, certification and operation of Indian River-Sea vessels at a seminar held under the aegis of the Indian Coastal Conference at the Indian Merchants’ Chambers on February 25, 2009.
While making his presentation, Mr Atul Jadhav, President of Goa Barge Owners’ Association informed that though the notification allows for seamless integration of coastal vessels with river barges, awareness about this aspect; its purpose and usefulness is seriously lacking. Besides, various maritime boards have not yet come out with relevant notifications to this effect.
“On the manning side there is a tremendous shortage of engineers whereas officers on the nautical side expect salaries applicable to foreign going vessels, which is not at all feasible,” he informed. “While operating on the coast or inland waters, officers may have to double up as watch keepers, or undertake other functions besides their own for which they are not amenable. Those on the coast operate on a thin margin of around Rs 40,000 to Rs 60,000 making it impracticable to pay exorbitant salaries. “
Making a comparison with road transport Mr. Aditya Suklikar of Indian Costal Conference stated that water transport would get the required impetus if manning was taken out of the purview of STCW since employing master mariners and other marine officers for coastal or river transport was too expensive. He advocated the need to tap the vast source of ITI approved diploma holders from various institutes. He also desired that the CDC requirement be waived for Class IV vessels.
Mr Atul Jadhav appealed for the framing of a separate set of rules for coastal and river operations. He desired that the CDC requirement be done away with for all coastal vessels. “It would suffice to have just two workers having knowledge of only the elementary requirements of navigating along the coast,” he said. “Hence, a simpler course could be devised under the certificate of competency examinations.
“The duties and responsibilities assigned under the ISM code should be moderated or done away with, since much time is wasted in paper work besides adding to costs. In China there are 13,000 vessels operating along the coast since regulations are much simpler,” he said. “Because of the stringent requirements applicable here, and despite having a much long coastline, we in India have only around 45 vessels operating. In each state there are different regulations that are being observed, as in Goa night navigation is not allowed only for river-sea vessels as allowed under the DGS notification while all other vessels even though they are much bigger are allowed to operate in the night.”
Barge operators want some kind of permanent committee to keep tabs on the implementation and working of the notification and to help in streamlining any difficulties faced. It was pointed out that the trade was competing with the road and rail networks which are not subject to customs regulations and those applicable under the merchant shipping act which the people involved in coastal and inland waterway transport have to adhere to.
Agreeing with the demand to do away with the present pre-sea training or structured training for those who aspire to man coastal vessels and not to insist on having those who have been trained to serve on foreign going vessels Capt M. M. Saggi, Nautical Advisor to the Government of India said, “For River-Sea vessels it would suffice to have just one person who gets qualified under a new short-term simplified course - the format of which would consist of some harmonized standards for Class IV vessels. The candidate would get certified according to some model rules and work in all states without hurdles. By introducing this new course it would help in generating immense manpower.
“We need a paradigm change for a new transport model for River-Sea Vessels as it requires different kinds of skills,” stated Ms Lakshmi Venkatachalam, IAS, Director General of Shipping. “We will develop some kind of ‘hybrid’ course/curriculum for River-Sea vessels. We need to have a dialogue with customs and TAMP authorities. Our territorial waters are the last bastion so let’s get it right – No short cuts.”
For creating awareness in various players and officials of different government departments, Ms Venkatachalam agreed to have a number of seminars at state level through ICC where all players could be brought together. “ICC should also look at ‘top of the line’ emergent technologies and devise ways to attract investments,” she suggested. “They also need to hold a meeting with the Secretary - Shipping since he also looks at the road and highway transport. ICC can certainly form two or three contact groups whether in relation with training or principles, etc. I would be happy to meet with these on a regular basis.”
Suggesting a way forward she also proposed that the trade should consider availing of Ro-Ro vessels for transport of cars along the coastal routes. Similarly other goods and supplies of industry in general, could be encouraged to avail of the cheaper environment friendly coastal route.
Offering her sincere advice to the trade, Ms Venkatachalam counselled, “Coastal shipping has failed, but Coastal shipping must and can succeed. Though much is said about short sea shipments in Western and developed countries but it is not all hunky-dory there. Please start comparing at every forum and avenue available to project what the nation is losing out by investing more in the rail and road sector instead of in coastal trade which do not require construction of highways.”
Ms Lakshmi Venkatachalam, Director General of Shipping, Government of India promised the trade various measures that she would take in this regard while deliberating on the Directorate’s notification for the construction, survey, certification and operation of Indian River-Sea vessels at a seminar held under the aegis of the Indian Coastal Conference at the Indian Merchants’ Chambers on February 25, 2009.
While making his presentation, Mr Atul Jadhav, President of Goa Barge Owners’ Association informed that though the notification allows for seamless integration of coastal vessels with river barges, awareness about this aspect; its purpose and usefulness is seriously lacking. Besides, various maritime boards have not yet come out with relevant notifications to this effect.
“On the manning side there is a tremendous shortage of engineers whereas officers on the nautical side expect salaries applicable to foreign going vessels, which is not at all feasible,” he informed. “While operating on the coast or inland waters, officers may have to double up as watch keepers, or undertake other functions besides their own for which they are not amenable. Those on the coast operate on a thin margin of around Rs 40,000 to Rs 60,000 making it impracticable to pay exorbitant salaries. “
Making a comparison with road transport Mr. Aditya Suklikar of Indian Costal Conference stated that water transport would get the required impetus if manning was taken out of the purview of STCW since employing master mariners and other marine officers for coastal or river transport was too expensive. He advocated the need to tap the vast source of ITI approved diploma holders from various institutes. He also desired that the CDC requirement be waived for Class IV vessels.
Mr Atul Jadhav appealed for the framing of a separate set of rules for coastal and river operations. He desired that the CDC requirement be done away with for all coastal vessels. “It would suffice to have just two workers having knowledge of only the elementary requirements of navigating along the coast,” he said. “Hence, a simpler course could be devised under the certificate of competency examinations.
“The duties and responsibilities assigned under the ISM code should be moderated or done away with, since much time is wasted in paper work besides adding to costs. In China there are 13,000 vessels operating along the coast since regulations are much simpler,” he said. “Because of the stringent requirements applicable here, and despite having a much long coastline, we in India have only around 45 vessels operating. In each state there are different regulations that are being observed, as in Goa night navigation is not allowed only for river-sea vessels as allowed under the DGS notification while all other vessels even though they are much bigger are allowed to operate in the night.”
Barge operators want some kind of permanent committee to keep tabs on the implementation and working of the notification and to help in streamlining any difficulties faced. It was pointed out that the trade was competing with the road and rail networks which are not subject to customs regulations and those applicable under the merchant shipping act which the people involved in coastal and inland waterway transport have to adhere to.
Agreeing with the demand to do away with the present pre-sea training or structured training for those who aspire to man coastal vessels and not to insist on having those who have been trained to serve on foreign going vessels Capt M. M. Saggi, Nautical Advisor to the Government of India said, “For River-Sea vessels it would suffice to have just one person who gets qualified under a new short-term simplified course - the format of which would consist of some harmonized standards for Class IV vessels. The candidate would get certified according to some model rules and work in all states without hurdles. By introducing this new course it would help in generating immense manpower.
“We need a paradigm change for a new transport model for River-Sea Vessels as it requires different kinds of skills,” stated Ms Lakshmi Venkatachalam, IAS, Director General of Shipping. “We will develop some kind of ‘hybrid’ course/curriculum for River-Sea vessels. We need to have a dialogue with customs and TAMP authorities. Our territorial waters are the last bastion so let’s get it right – No short cuts.”
For creating awareness in various players and officials of different government departments, Ms Venkatachalam agreed to have a number of seminars at state level through ICC where all players could be brought together. “ICC should also look at ‘top of the line’ emergent technologies and devise ways to attract investments,” she suggested. “They also need to hold a meeting with the Secretary - Shipping since he also looks at the road and highway transport. ICC can certainly form two or three contact groups whether in relation with training or principles, etc. I would be happy to meet with these on a regular basis.”
Suggesting a way forward she also proposed that the trade should consider availing of Ro-Ro vessels for transport of cars along the coastal routes. Similarly other goods and supplies of industry in general, could be encouraged to avail of the cheaper environment friendly coastal route.
Offering her sincere advice to the trade, Ms Venkatachalam counselled, “Coastal shipping has failed, but Coastal shipping must and can succeed. Though much is said about short sea shipments in Western and developed countries but it is not all hunky-dory there. Please start comparing at every forum and avenue available to project what the nation is losing out by investing more in the rail and road sector instead of in coastal trade which do not require construction of highways.”
Monday, 2 March 2009
Interview with Capt Fared Khan
Having been with AET for 22 years Capt Fared Khan Head Group HR Sea, AET Shipmanagement (Singapore) Pte Limited pioneered various schemes which have yielded excellent results for the company. During his brief visit to India, Shipping Today caught up with him to get some insights on various issues which have helped the company achieve its premier position.
Malaysian International Shipping Corporation (MISC) ant its plan in India
MISC is the parent company dealing in chemicals, containers and LNG, whereas, AET is leading worldwide petroleum shipping company wholly owned subsidiary dealing in crude oil as well as in managing, operating and securing business for the fleet. MISC and AET make a dynamic team complimenting each other well to become the World’s Leading Petroleum Tankers Operators (‘WLPTO’).
About inducting lady seafarers…
Women are as skilful and competitive as their male counterparts. AET has been recruiting female seafarers for the past three years and now have four female officers and 38 female cadets comprising of the deck as well as the engine side. I am very optimistic on getting in many more women into shipping.
On the Dynamic Role of Human Resources (HR)…
As far as manning is concerned the HR prospective has undergone a transformation mainly in view of the changed necessities. The shortage of skilled and experienced seafarers has made the shipping companies look closely at the benefits for the seafarers.
Being from the sea myself, I understand the need of the seafarer much better. At AET we are giving opportunities to build our abilities in HR. For instance, everything HR Sea has to incorporate first goes through the HR Shore management which is led by thorough professionals well versed and having expertise in their field of operation.
In all its seminars, AET has now made it mandatory to include at least two HR related topics, which are presented by HR experts. In the seminars held at Malaysia, the HR topics covered related to Performance Management and both were well received by the officers. I think AET will be the first shipping company to systematically appraise an individual on the basis of his or her performance.
On the downtrend…
It is my view that the current downturn will hardly make a much of a difference as far as the seafarers are concerned. Good companies that have strong policies in this downturn will manage to survive this storm. Also, I believe that the time has come for the seafarers to make a difference in this bad phase, by being cost effective with their performance.
Long before the recession, AET took measures to lock in with the charterers and spread their business evenly so that they are not spread out only in the stock market itself. But we have expanded ourselves in partnership with many oil majors. As long as we deliver what we have promised the customers we will continue to perform. AET has its own ships and we are capable of riding out the storm; we have got our business motto right. I personally believe that AET will come out much stronger in the partnership with the seafarers. I am very confident that we are ride through this period well and come out winners.
On Prevailing Piracy…
AET takes utmost care in providing security and safe passage for its ships passing through the piracy affected areas. AET has given strict instructions to all its vessels, including the charterers and foreign flag vessels that a naval convoy must escort them when they pass these routes. AET gives top priority in protecting its crew and ensuring safety.
WE GUARANTEE SAFE PASSAGE THROUGH THE GULF OF ADEN REGIONS FOR OUR SEA STAFF.
On the essence of seminars…
The Seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its floating staff. It is a place for interaction and bonding between the managements and the seafarers.
Message to Indian Seafarers
Today’s generation of seafarers lack the right attitude towards shipping. The Indian seafarers are very skilled and perhaps the best in the world. I don’t want to see the Indian seafarers’ fate as happened to the European, who turned out to be too demanding, but if the Indian continue to move in the wrong direction, then it would not take long for the Chinese, African and other South Asian countries to take their place as those people are willing to work hard too. So my message to Indian seafarers would be to be more professional and live up to the legacy created by the seniors.
Malaysian International Shipping Corporation (MISC) ant its plan in India
MISC is the parent company dealing in chemicals, containers and LNG, whereas, AET is leading worldwide petroleum shipping company wholly owned subsidiary dealing in crude oil as well as in managing, operating and securing business for the fleet. MISC and AET make a dynamic team complimenting each other well to become the World’s Leading Petroleum Tankers Operators (‘WLPTO’).
About inducting lady seafarers…
Women are as skilful and competitive as their male counterparts. AET has been recruiting female seafarers for the past three years and now have four female officers and 38 female cadets comprising of the deck as well as the engine side. I am very optimistic on getting in many more women into shipping.
On the Dynamic Role of Human Resources (HR)…
As far as manning is concerned the HR prospective has undergone a transformation mainly in view of the changed necessities. The shortage of skilled and experienced seafarers has made the shipping companies look closely at the benefits for the seafarers.
Being from the sea myself, I understand the need of the seafarer much better. At AET we are giving opportunities to build our abilities in HR. For instance, everything HR Sea has to incorporate first goes through the HR Shore management which is led by thorough professionals well versed and having expertise in their field of operation.
In all its seminars, AET has now made it mandatory to include at least two HR related topics, which are presented by HR experts. In the seminars held at Malaysia, the HR topics covered related to Performance Management and both were well received by the officers. I think AET will be the first shipping company to systematically appraise an individual on the basis of his or her performance.
On the downtrend…
It is my view that the current downturn will hardly make a much of a difference as far as the seafarers are concerned. Good companies that have strong policies in this downturn will manage to survive this storm. Also, I believe that the time has come for the seafarers to make a difference in this bad phase, by being cost effective with their performance.
Long before the recession, AET took measures to lock in with the charterers and spread their business evenly so that they are not spread out only in the stock market itself. But we have expanded ourselves in partnership with many oil majors. As long as we deliver what we have promised the customers we will continue to perform. AET has its own ships and we are capable of riding out the storm; we have got our business motto right. I personally believe that AET will come out much stronger in the partnership with the seafarers. I am very confident that we are ride through this period well and come out winners.
On Prevailing Piracy…
AET takes utmost care in providing security and safe passage for its ships passing through the piracy affected areas. AET has given strict instructions to all its vessels, including the charterers and foreign flag vessels that a naval convoy must escort them when they pass these routes. AET gives top priority in protecting its crew and ensuring safety.
WE GUARANTEE SAFE PASSAGE THROUGH THE GULF OF ADEN REGIONS FOR OUR SEA STAFF.
On the essence of seminars…
The Seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its floating staff. It is a place for interaction and bonding between the managements and the seafarers.
Message to Indian Seafarers
Today’s generation of seafarers lack the right attitude towards shipping. The Indian seafarers are very skilled and perhaps the best in the world. I don’t want to see the Indian seafarers’ fate as happened to the European, who turned out to be too demanding, but if the Indian continue to move in the wrong direction, then it would not take long for the Chinese, African and other South Asian countries to take their place as those people are willing to work hard too. So my message to Indian seafarers would be to be more professional and live up to the legacy created by the seniors.
AET’s Code: Par Excellence
Excellence is a passion with American Eagle Tankers. Taking this philosophy to heart, AET chose “Operation Excellence” as its theme for its quarterly Officers’ seminar held recently at Holiday Inn Glenmarie, Kuala Lumpur, Malaysia from January 19 to 22, 2009, where the company took the opportunity to honour its long standing staff as is usually done during such seminar and also launched its remarkable newsletter.
For the officers and their spouses who attended the seminar it was one great ‘all expenses paid’ holiday. As many would wish to call it - a five-day free holiday at an exotic tourist destination where each one enjoyed mixing business with pleasure.
“AET Senior Sea staff seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its senior floating staff,” says Capt Fared Khan, Head Group HR Sea, AET Shipmanagement. “It is a place for interaction and bonding between the management and the Senior Sea staff.”
As has been a trend in AET, the conference was attended by the President and CEO Mr. Hor Weng Yew along with other senior company managers and their spouses.
A wholly owned subsidiary of Malaysian International Shipping Corporation (MISC) and dealing in crude oil as well as in managing, operating and securing business for the fleet, AET uses seminars as another platform to give recognition to its officers with long standing service with the company honouring them with mementos and magnanimous gifts.
Mr Wee Teck Chee, Captain Premanathan Menon and Mr Lim Poh Whee have been with the company for more than three decades and Mr Leong Kee Yeen with 25 years of distinguished service were heartily congratulated and graciously honoured by the company. Next in line were 14 others officers having served for between 15 and 20 years, and others with 10 years of service were honoured with a similar show of appreciation and enthusiasm.
AET took the opportunity to launch SEASCAPE its first quarterly periodical devoted exclusively for its People. The magazine’s launch which took place at the hands of Mr. Amir Azizan, the C E O of MISC, was received with great interest and zest by all present and in particular by the sea staff.
Focusing on the strategy of the company Capt Rajesh Deshwal, Regional Manager – India said, “AET make a dynamic arm of MISC to become the World’s Leading Petroleum Tankers Operator (WLPTO).” MISC the parent company of AET deals in chemicals, containers and is the world’s largest LNG owner operator”.
“AET has new vessel deliveries lined up and on an average one ship will be added to our fleet every quarter until 2012. AET’s increasing tanker tonnage in times when most competitors are struggling to sustain themselves should be indication enough, not just to our own people but also to others in the industry that by being part of AET you have secured your future.”
“AET recruits 150 cadets annually to meet the growing demand for seafarers and about half of these are from India. All of them are trained at the Akademi Laut Malaysia (ALAM), AET’s Malaysian Maritime Academy. AET is particularly proud of its cadet training programme which involves over 600 candidates being prepared for the sea-life at a time. Some of these cadets were also involved in the conference, both as trainees and as part of the conference organising team.
Since training plays a major role for factoring in ‘Operational Excellence’ it was one of the highlights at the seminar. A few case studies along with the relevant investigative reports and studies were taken up in order to give participants an indepth understanding of the measures to be taken to prevent incidents, accidents and near misses.
The need for trained and competent manpower has now become a universal feature. AET has raised the bar on Maritime Education and Training by revising the learning system so that competence beyond compliance is being maintained.
Several other topics contributing to Operational Excellence were touched upon. Presentations focusing on both internal and industry were delivered by renowned external speakers. Significantly there were subjects on ship safety, international conventions, safety of navigation and services to the shipping community. There were also technical discussions that took place in great detail on machinery, bunker management and innovations in energy conservation. The conference included stimulating discussion on good practices, addressing the question, ‘Will today’s best practices be still valid tomorrow?’
Whenever an incident or accident occurred, the reaction of the media was considered. It was essential to remember when media publicity was desirable and when not. If it would be beneficial and how this could be ascertained was also deliberated upon.
From the feedback obtained, it was learnt that participants really appreciated the programme and found the seminar very beneficial owing to the wide range of topics that were discussed that helped to add to one’s knowledge and encourage better performance on board a ship. The interaction with the management and the content were both found to be useful and informative.
The location “Holiday Inn Glenn Marie Resort” was very congenial and excellent for the seminar and for sight seeing. The trip to the Sunway Lagoon – the most attractive tourist spot and the whole trip was well planned and organised as always.
For the officers and their spouses who attended the seminar it was one great ‘all expenses paid’ holiday. As many would wish to call it - a five-day free holiday at an exotic tourist destination where each one enjoyed mixing business with pleasure.
“AET Senior Sea staff seminar is a platform for the exchange of ideas and to formulate company’s policies in the presence of the shore management along with its senior floating staff,” says Capt Fared Khan, Head Group HR Sea, AET Shipmanagement. “It is a place for interaction and bonding between the management and the Senior Sea staff.”
As has been a trend in AET, the conference was attended by the President and CEO Mr. Hor Weng Yew along with other senior company managers and their spouses.
A wholly owned subsidiary of Malaysian International Shipping Corporation (MISC) and dealing in crude oil as well as in managing, operating and securing business for the fleet, AET uses seminars as another platform to give recognition to its officers with long standing service with the company honouring them with mementos and magnanimous gifts.
Mr Wee Teck Chee, Captain Premanathan Menon and Mr Lim Poh Whee have been with the company for more than three decades and Mr Leong Kee Yeen with 25 years of distinguished service were heartily congratulated and graciously honoured by the company. Next in line were 14 others officers having served for between 15 and 20 years, and others with 10 years of service were honoured with a similar show of appreciation and enthusiasm.
AET took the opportunity to launch SEASCAPE its first quarterly periodical devoted exclusively for its People. The magazine’s launch which took place at the hands of Mr. Amir Azizan, the C E O of MISC, was received with great interest and zest by all present and in particular by the sea staff.
Focusing on the strategy of the company Capt Rajesh Deshwal, Regional Manager – India said, “AET make a dynamic arm of MISC to become the World’s Leading Petroleum Tankers Operator (WLPTO).” MISC the parent company of AET deals in chemicals, containers and is the world’s largest LNG owner operator”.
“AET has new vessel deliveries lined up and on an average one ship will be added to our fleet every quarter until 2012. AET’s increasing tanker tonnage in times when most competitors are struggling to sustain themselves should be indication enough, not just to our own people but also to others in the industry that by being part of AET you have secured your future.”
“AET recruits 150 cadets annually to meet the growing demand for seafarers and about half of these are from India. All of them are trained at the Akademi Laut Malaysia (ALAM), AET’s Malaysian Maritime Academy. AET is particularly proud of its cadet training programme which involves over 600 candidates being prepared for the sea-life at a time. Some of these cadets were also involved in the conference, both as trainees and as part of the conference organising team.
Since training plays a major role for factoring in ‘Operational Excellence’ it was one of the highlights at the seminar. A few case studies along with the relevant investigative reports and studies were taken up in order to give participants an indepth understanding of the measures to be taken to prevent incidents, accidents and near misses.
The need for trained and competent manpower has now become a universal feature. AET has raised the bar on Maritime Education and Training by revising the learning system so that competence beyond compliance is being maintained.
Several other topics contributing to Operational Excellence were touched upon. Presentations focusing on both internal and industry were delivered by renowned external speakers. Significantly there were subjects on ship safety, international conventions, safety of navigation and services to the shipping community. There were also technical discussions that took place in great detail on machinery, bunker management and innovations in energy conservation. The conference included stimulating discussion on good practices, addressing the question, ‘Will today’s best practices be still valid tomorrow?’
Whenever an incident or accident occurred, the reaction of the media was considered. It was essential to remember when media publicity was desirable and when not. If it would be beneficial and how this could be ascertained was also deliberated upon.
From the feedback obtained, it was learnt that participants really appreciated the programme and found the seminar very beneficial owing to the wide range of topics that were discussed that helped to add to one’s knowledge and encourage better performance on board a ship. The interaction with the management and the content were both found to be useful and informative.
The location “Holiday Inn Glenn Marie Resort” was very congenial and excellent for the seminar and for sight seeing. The trip to the Sunway Lagoon – the most attractive tourist spot and the whole trip was well planned and organised as always.
Indian ship recyclers oppose IMO draft at Mumbai workshop
Serious differences came to the fore between Indian ship breakers and the international body, as the draft on International Convention for the Safe and Environmentally Sound Recycling of Ships went in for finalisation at the 2nd National Workshop of the International Maritime Organisation (IMO), held jointly by the Directorate General of Shipping and IMO on 23rd February 2009 at Maritime Training Institute of the Shipping Corporation of India, at Powai, Mumbai.
While the Norwegian, Greek and other ship owners of some of the developed nations took a concerted stand of imposing greater liability on ship breakers including doing away with the beaching process that is now being followed at the Alang yard in Gujarat and elsewhere, the Indian side claimed it to be a ploy of the shipowners’ from developed nations to shelf the entire responsibility on ship breakers so that they would not be held accountable in any way.
Jens H Koefoed, Senior Advisor to the Norwegian Maritime Directorate propounding ‘A conceptual approach to the Recycling convention’ insisted that an inventory of hazardous material along with the certification should be maintained on board the ship and at other stages of the ‘ship’s journey from its cradle to the grave’.
Vasuo Nakajo from the Ship Building Research of Japan as well as Hideaki Saito of Japan Ship Centre desired that there should be an approval of the recycling plan and each constituent of the hazardous material should also be identified and an inventory maintained.
Mr PS Nagarsheth, President of the Iron Steel Scrap & Shipbreakers’ Association of India questioned the practicality of keeping track of the TBT and other hazardous material that exists in paints through out the life of a ship. Without insisting on the TBT paint being replaced and allowing over-painting during the life of a ship it only meant that if a few pounds of such material was found short at the time of recycling the ship recycler would have to make up for the shortfall at his cost.
Ms Kate Ware, Sr. Policy Advisor, Shipping & Marine Environment, Dept of Transport, UK pointing to the process of recycling and getting tacit approval questioned the moment of the commencement of the 14 day notice period since there were no proper guidelines on this.
Mr Nagarsheth requested greater clarity with regard to hazardous material and hazardous waste. He went on to state that the definition of a ship which has been accepted under MARPOL 73 and even by MEPC up to the 53rd session is now being changed in the current draft with a new addition being made with the words “or having operated in the marine environment” which seems to be a deliberate attempt to pass on some of the responsibility and liability of the shipowners to the ship recyclers.
“There is no clear demarcation when a ship ceases to be a ship,” stated Mr Nagarsheth. “Once a ship is delivered to the ship recycler, it should cease to be a ship as it becomes merely a ‘floating structure cargo’. Accordingly, the IMO’s role is restricted until the ship remains a ship or a floating structure. Once it is no more a floating structure, the role of IMO should cease. Thereafter, the operations and role of workers at the yard should be addressed by the International Labour Organisation (ILO) and the handling of hazardous waste should be based on Basel norms.”
He also assailed the concept of ‘Maritime Lien’. He pointed out that the debt of a ship and not of a person is operative only in shipping industry and not in any other activity. The ship recycler, the bonafide buyer of the ship, even after taking all precautions, is subject to Maritime Lien risk without any default on his part. So to avoid such a risk to the recycler there should be clear demarcations made to decide when a ship creases to be a ship. Hence, he suggested that it was important to delete the words: ‘or having operated in the marine environment’ from the definition of a ship.
Though some of the Western shipowners’ especially the Norwegians were against the beaching method for recycling which was prevalent in Alang, Mr Nagarsheth stated, “The beaching method is the only economically viable method. A port or dry dock which can be used for building or repairing ships or is used as a port for the cargo movement cannot in any way be economically used for recycling.” He insisted that all hazardous material in a ship destined for recycling should be removed prior to the final voyage to the recycling yard.
Presenting the view of the Indian ship breaking industry Mr Nagarsheth stated, “The present working paper issued by MEPC 58 of the IMO on Ship Recycling is not acceptable to the Indian ship recycling industry.” He claimed that they would be sending a representation to the Indian government not to ratify it. He alleged that the working paper was prepared under the influence of the shipowners and shipowning countries, and is designed to transfer the obligation of observing the entire regulations onto ship recycling countries.
Reacting rather disdainfully Dr. Nikos Mikelis of the IMO, London, who was in the chair, stated that it was not proper for Mr. Nagarsheth to make allegations (without reason) about the draft being the shipowners’ ploy. Now that the draft was in its final stage it was wrong on his part to come up with total rejection and/or objection to it when there had been ample opportunities for the Indian side to make the amendments of choice at the various meetings held so far.
Earlier the IMO Workshop was inaugurated by Ms. Lakshmi Venkatachalam, Director General of Shipping & ex-officio Additional Secretary to the Govt. of India. Dr. Nikos Mikelis in his address stated, “It is not right for us to simply dump our ships in some place and forget about them. It is amazing that in this recycling business all parts of the ship are dismantled and brought to use in some other industry. As the world is becoming interdependent we have to acknowledge and adhere to the standard conventions and regulations.
“With the adoption of the new recycling conventions, I don’t think that IMO’s responsibilities and efforts are over. We depend on the Indian recycling industry for future initiatives to continue to serve the industry.”
Whether the convention gets ratified by India or not, informed an official, there were several loopholes in the draft per se. It is only a question of changing the flag of the ship intended to be recycled. Another spokesman from the shipping trade not wishing to be named considered the whole exercise to be eyewash.
While the Norwegian, Greek and other ship owners of some of the developed nations took a concerted stand of imposing greater liability on ship breakers including doing away with the beaching process that is now being followed at the Alang yard in Gujarat and elsewhere, the Indian side claimed it to be a ploy of the shipowners’ from developed nations to shelf the entire responsibility on ship breakers so that they would not be held accountable in any way.
Jens H Koefoed, Senior Advisor to the Norwegian Maritime Directorate propounding ‘A conceptual approach to the Recycling convention’ insisted that an inventory of hazardous material along with the certification should be maintained on board the ship and at other stages of the ‘ship’s journey from its cradle to the grave’.
Vasuo Nakajo from the Ship Building Research of Japan as well as Hideaki Saito of Japan Ship Centre desired that there should be an approval of the recycling plan and each constituent of the hazardous material should also be identified and an inventory maintained.
Mr PS Nagarsheth, President of the Iron Steel Scrap & Shipbreakers’ Association of India questioned the practicality of keeping track of the TBT and other hazardous material that exists in paints through out the life of a ship. Without insisting on the TBT paint being replaced and allowing over-painting during the life of a ship it only meant that if a few pounds of such material was found short at the time of recycling the ship recycler would have to make up for the shortfall at his cost.
Ms Kate Ware, Sr. Policy Advisor, Shipping & Marine Environment, Dept of Transport, UK pointing to the process of recycling and getting tacit approval questioned the moment of the commencement of the 14 day notice period since there were no proper guidelines on this.
Mr Nagarsheth requested greater clarity with regard to hazardous material and hazardous waste. He went on to state that the definition of a ship which has been accepted under MARPOL 73 and even by MEPC up to the 53rd session is now being changed in the current draft with a new addition being made with the words “or having operated in the marine environment” which seems to be a deliberate attempt to pass on some of the responsibility and liability of the shipowners to the ship recyclers.
“There is no clear demarcation when a ship ceases to be a ship,” stated Mr Nagarsheth. “Once a ship is delivered to the ship recycler, it should cease to be a ship as it becomes merely a ‘floating structure cargo’. Accordingly, the IMO’s role is restricted until the ship remains a ship or a floating structure. Once it is no more a floating structure, the role of IMO should cease. Thereafter, the operations and role of workers at the yard should be addressed by the International Labour Organisation (ILO) and the handling of hazardous waste should be based on Basel norms.”
He also assailed the concept of ‘Maritime Lien’. He pointed out that the debt of a ship and not of a person is operative only in shipping industry and not in any other activity. The ship recycler, the bonafide buyer of the ship, even after taking all precautions, is subject to Maritime Lien risk without any default on his part. So to avoid such a risk to the recycler there should be clear demarcations made to decide when a ship creases to be a ship. Hence, he suggested that it was important to delete the words: ‘or having operated in the marine environment’ from the definition of a ship.
Though some of the Western shipowners’ especially the Norwegians were against the beaching method for recycling which was prevalent in Alang, Mr Nagarsheth stated, “The beaching method is the only economically viable method. A port or dry dock which can be used for building or repairing ships or is used as a port for the cargo movement cannot in any way be economically used for recycling.” He insisted that all hazardous material in a ship destined for recycling should be removed prior to the final voyage to the recycling yard.
Presenting the view of the Indian ship breaking industry Mr Nagarsheth stated, “The present working paper issued by MEPC 58 of the IMO on Ship Recycling is not acceptable to the Indian ship recycling industry.” He claimed that they would be sending a representation to the Indian government not to ratify it. He alleged that the working paper was prepared under the influence of the shipowners and shipowning countries, and is designed to transfer the obligation of observing the entire regulations onto ship recycling countries.
Reacting rather disdainfully Dr. Nikos Mikelis of the IMO, London, who was in the chair, stated that it was not proper for Mr. Nagarsheth to make allegations (without reason) about the draft being the shipowners’ ploy. Now that the draft was in its final stage it was wrong on his part to come up with total rejection and/or objection to it when there had been ample opportunities for the Indian side to make the amendments of choice at the various meetings held so far.
Earlier the IMO Workshop was inaugurated by Ms. Lakshmi Venkatachalam, Director General of Shipping & ex-officio Additional Secretary to the Govt. of India. Dr. Nikos Mikelis in his address stated, “It is not right for us to simply dump our ships in some place and forget about them. It is amazing that in this recycling business all parts of the ship are dismantled and brought to use in some other industry. As the world is becoming interdependent we have to acknowledge and adhere to the standard conventions and regulations.
“With the adoption of the new recycling conventions, I don’t think that IMO’s responsibilities and efforts are over. We depend on the Indian recycling industry for future initiatives to continue to serve the industry.”
Whether the convention gets ratified by India or not, informed an official, there were several loopholes in the draft per se. It is only a question of changing the flag of the ship intended to be recycled. Another spokesman from the shipping trade not wishing to be named considered the whole exercise to be eyewash.
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