Almström recyclecon standard contract for recycling of ships

The International Conference on Ship Recycling 07-09 April 2013

RECYCLECON Standard Contract for Recycling of Ships

Robert Almstrรถm, Contract Manager, Stena RoRo Representative of the Bimco Documentary Committee Chairman of the sub-committee of Recyclecon Master Mariner

RECYCLECON – Green Recycling Contract

STENA SPHERE Business Areas

RECYCLECON – Green Recycling Contract

1. RECYCLECON development and key features 2. Usage pre-and post-Hong Kong Convention 3. A ship owners view

RECYCLECON – Green Recycling Contract

The development of RECYCLECON SALESCRAP 87

DEMOLISHCON

• Sale of vessels for demolition • First standard contract of this type

• Revision of SALESCRAP 87 • Demolition & Recycling

RECYCLECON

• “Green” recycling • New contract

RECYCLECON – Green Recycling Contract

SALESCRAP 87

• Prompted by 1980s increase in scrapping • First standard contract for the sale of vessels for demolition • Alternative to SALEFORM

RECYCLECON – Green Recycling Contract

DEMOLISHCON

• A modern and dedicated contract

• Endorsed by IMO in 2003 • Perhaps too focused on Indian market

RECYCLECON – Green Recycling Contract

RECYCLECON - revision

• DEMOLISHCON revision • Pros and cons • Revision abandoned

RECYCLECON – Green Recycling Contract

RECYCLECON - contract

• Green recycling • Niche market, currently less than 5% • IMO Hong Kong Convention

RECYCLECON – Green Recycling Contract

RECYCLECON - challenges

• International vs regional legislation • State infrastructure • Beaching

RECYCLECON – Green Recycling Contract

RECYCLECON - aim Preamble – “…an undertaking to recycle the Vessel in a safe and environmentally sound manner consistent with international and national law and relevant guidelines”.

• Voluntarily bound to HK Convention to extent possible • Clearly worded and balanced provisions • Reflects “green” commercial practice

RECYCLECON – Green Recycling Contract

The flow of RECYCLECON Delivery and completion Ship Recycling Plan • Seller can exercise control • Right to visit the SRF

Inventory of Hazardous Materials • Part I before giving a price • Without guarantee (Cl. 18) • Outright sale (Cl. 2)

• Preparation and notice • Statement of completion

RECYCLECON – Green Recycling Contract

RECYCLECON – a practical solution • Niche contract for green recycling • International focus • Synergy with SALEFORM 2012 • First published April 2012

RECYCLECON Standard Contract for the “Green” Recycling of Ships

Thank you