Sultana ship recycling industry in bangladesh regulatory mechanisms

Ship Recycling Industry in Bangladesh: Regulatory Mechanisms

Yasmin Sultana Deputy Secretary Ministry of Industries Dhaka, Bangladesh

Location of Bangladesh

Background • 1980s cases of hazardous waste from Europe being dumped in developing countries • 1989 Basel ConvenHon – to control transboundary waste movements • 1995 Basel Ban Amendment – to prohibit exports of hazardous waste from OECD to non-­‐OECD countries.

Transposed in the EU by the Waste Shipment RegulaHon (currently Reg. 1013/2006).

• • • • •

1980s/90s Ship dismantling industry moves to developing countries Since 1990s Reports about environmental and safety problems of beaching 2002-­‐2004 Technical Guidelines of Basel ConvenHon / ILO / IMO Late 2005 IMO decides to develop Ship Recycling ConvenHon 2009 Ship Recycling ConvenHon -­‐ Hong Kong ConvenHon

Background ● The industry began when a 6000 MT cargo vessel named “MD Alpine” was driven ashore by the devastaHng Hdal bore of 1960. It was the first ship to be scrapped on the Chi`agong sea beach.

● In 1964 Chi`agong Steel House scrapped the vessel and made history of ship breaking in Bangladesh ● Covering Area: about 20 km along with coastal areas under Chi`agong District ● Huge momentum in 1982 onward (BCCI Bank financed imporHng scrap vessel) ● Ship Owners AssociaHon FormaHon in 1983

Background (cont) ● Hon’ble Prime Minister declared the sector as an Industry

on 13 February 2011 ● And hence under business of allocaHon to the Ministry of Industries (Gaze`ed on 21 April 2011) ● FormulaHon of Ship Breaking and Ship Recycling Rules on 12 December, 2011 by the Ministry of Industries (MOI) ● Ship Breaking Green Industrial Zone declared by MOI ● ISO cerHficates given to 6 yards

¢

Contribution from Ship Recycling (Source: World Bank Report 2009 and MOI)

NaHonal Steel ProducHon

2.2-­‐2.5 m tons (app. 50%)

Scrap steel from ship breaking

Up to 1.5 m tons

No. of re-­‐rolling mills

Around 300

No. of ship yards

125 (acHve 82)

EsHmated number of workers/ people involved

Around 0.3 m (directly and indirectly)

Annual turnover

Approx. 1.5 b US$

Annual revenue

around 140 m US$

Local consumpHon of equipments, generators and other spare parts

13 m US$

Contribution from Ship Recycling (cont) Scrap ship imported in 260 (Highest in 2012 5 years) Cost (2012)

1.35 billion USD

Top scrap ships buyer leaving China, India, Pakistan and Turkey behind

8 times from 2000-­‐2010

Global Ship Recycling Share Source: Ministry of Industries, GOB

Country

Share (%)

China

33%

India

31%

India

Bangladesh

26%

Bangladesh

China Pakistan

Pakistan

4-­‐5%

Others

2%

Others

Ship Recycling Materials

10% Steel Contents

90%

Brass, Copper, Lead,Asbestos , Plastic Woods, & Wooden Materials

Accumulated hazardous materials in Bangladesh 2010-­‐30 (Source: World Bank Report, 2009)

Hazardous Material

Volume

Asbestos

79,000 ton

PCBs (mainly cables)

240,000 ton

ODS (mainly polyurethane foam)

210,000

Paints (metals, tributylHn (TBT) & PCBs)

69,200 ton

Heavy metals

678 ton

Waste liquid organic

1,978,000 m3

Miscellaneous (mainly sewage)

107,000 m3

Waste liquids inorganic (acids)

775 ton

Reusable liquids organics

675,000 ton

Ship Recycling and Breaking Rules 2011

The Rules have been formulated pursuant to the High Court Division order in the writ peHHon no. 7260 of 24 May 2011 .

The terms used in the Rule shall have the same meaning under the guideline, policy, rules, acts such as:

ü Petroleum Act, 1934 ü Explosive Act, 1884 ü Bangladesh Environment ConservaHon Act 1995 (amended on 2010) ü Labour Act, 2006 ü Import Policy Order ü ILO Guidelines for Safety and Health in Ship Breaking acHviHes ü The Hong Kong InternaHonal ConvenHon for safe and environmentally sound recycling of ships, 2009 ü Basel ConvenHon, 1989

Provisions in the Rules: Ship Breaking and Recycling

Ship Building and Ship Recycling Board (SBSRB) for One Stop Service and integrated services • No ObjecHon CerHficate (NOC) -­‐ examining ship’s detail, MOU and inventory of Hazardous Waste • Visit to the Ship at the outer anchorage by the Customs Department examining any cargo and items banned by Govt.

• Environment Clearance CerHficate issued by the Department of Environment examining hazardous waste and toxic materials • Distress signals to be taken over by the Navy • Ship Recycling Plan (SRP) and Ship Recycling Facility Plan (SRFP) before demoliHon permission

Beaching Permission

▪ Beaching of Ships: physically inspected by the Board officials

• Beaching Permission by Port Authority: Ship Recycling Facility Plan (SRFP), Environment Clearance CerHficate, valid membership cerHficate from Trade Body

• CuQng Permission from the Ship Building and Ship Recycling Board (SBSRB):

Ship Recycling Plan (SRP), Yard Environment Clearance, CerHficate from Navy, Worker’s RegistraHon, Vendor’s document for proof of removal of oil, Gas Free Test CerHficate etc.

Ship Recycling Process

 Ship Recycling Facility Plan (SRFP): Handling of hazardous waste, Treatment, Storage and

Disposal Facility (TDSF), Asbestos handling, removing and storing, Fire fighHng facility, Emergency Response System (ERS), Material Handling Equipment (MHE), Personal ProtecHon Equipment (PPE), List of trained workers, Compliance with the Safety, Health and Environment Management (SHE) aspects

 Ship Recycling Plan (SRP):

Hazardous waste/materials handling and disposal plan etc.

-­‐ Safe work principles, presentaUon measures and precauUons -­‐ IdenUficaUon of work operaUons, scheduling of work -­‐ AllocaUon of deployment of human resources -­‐ DeterminaUon and placement of tools equipment and faciliUes

Material stream mgt

-­‐ NaUonal and industry regulatory requirements -­‐ VerificaUon of stated waste materials and ship details -­‐ LocaUon and marking of inventory materials -­‐ DeterminaUon -­‐ ShuQng down & decommissioning

DeconstrucUon

PreparaUon

Model Safe Ship Breaking Plan -­‐ Secondary deconstrucUon

-­‐ SorUng

-­‐ SeparaUon

-­‐ RecepUon faciliUes and storage

-­‐ Disposal

-­‐ Recycling

Safety Compliance

-­‐ Only trained workers to be employed -­‐ Supply of Personal ProtecHon Equipment (PPE) -­‐ Adequate Open Space -­‐ IdenHficaHon and marking of all non-­‐breathable spaces and hazardous waste/materials -­‐ Water storage and pumping faciliHes -­‐ Storage facility for hazardous wastes/materials -­‐ Appointment of qualified Safety Officer -­‐ Ensuring safety measurement -­‐ Compliance of Labour Law, 2006 -­‐ Safety audit in two years

Environmental Compliance • CreaHon/Enhancement of FaciliHes for Removal, Storage and Disposal of Hazardous Wastes • Environmental Measures and House Keeping • Solid Waste Management

Functions of Ship Building & Ship Recycling Board (SBSRB)

Fees • For Ship Recycling Facility Plan (SRFP): • For Ship Survey and InspecHon : • For Beaching and Cunng Permission

Management of Occupational Safety and Health (OSH)

•

ImplementaUon of OSH

• Emergency preparedness • ReporUng, recording and noUficaUon of work-­‐related injuries, diseases, ill health and incidents • Means of Escape, in case of fire, or other dangers • Roadways, quays, yards and other places constructed to be safe • Proper housekeeping • Provision of suitable scaffolds and ladders • PrecauUons against the fall of persons and materials • Fire prevenUon and fire fighUng • Dangerous atmospheres and confined spaces • PrevenUon of unauthorized entry • Signs, noUces and colour codes

Penalties and Miscellaneous

• AcHons to be taken in the event of an accident on any yard and/ or on the ship or for non-­‐compliance of any of these regulaHons • AcHon against willful defaulters: penalHes • Appeal Provision • Miscellaneous: Before establishment of SBSRB all funcHons to be conducted by the Ministry of Industries • Amendment Provisions for the Rules

Comments on non compliances • Most of the yards do not have internaHonal standards for dismantling ships • Lower level of compliance with internaHonal standards on safety, health and the environment • No central dumping zone for the hazardous waste • Only few yards engaged Safety Officers

Non-­‐compliances (c0nt) • Some workers are not genng proper wages which results in frequent changes of yards • No proper training on OSH • Lack of awareness of the workers on PPE and health • Lack of awareness of the ship owners • Conflicts among stakeholders/ship owners

Environ-­‐ mental Issues § §

§

Limited Protection Soil with excessive amount of Iron, Cadmium and Magnesium Lack of environment health and safety

Challenges

Human Rights • 3 D’s: Dirty, Dangerous, Demeaning work.

• Accidents and Deaths: at least 55 deaths occurred since 2006

Ship Recycling: Environmental Advantages ▪ Scrap steel reduces related water polluHon, air polluHon and mining wastes by around 70% ▪ It takes four Hmes as much energy to make steel from virgin ore ▪ Benefits of using iron and steel (ferrous metals) instead of virgin ore to make new steel: ▪ Savings in energy 74% ▪ Savings in virgin materials 90% ▪ ReducHon in water use 40% ▪ ReducHon in water polluHon 76% ▪ ReducHon in air polluHon 86% ▪ ReducHon in mining wastes 97% ▪ ReducHon in consumer waste generated 105%

Source: GMS 2011

Expectations/Recommendations • A simplified Ship Breaking and Recycling Guidelines

with

clear responsibiliHes of concerned departments • A pilot model ship recycling yard • This model, if proven acceptable to the entrepreneurs/ government may be replicated in other yards • Development of a model waste recepHon facility/ a central dumping zone

Expectation from International Community/SBC/IMO/ILO • Pre-­‐cleaning of ships before recycling should also be considered • Implement InternaHonal best pracHces

MOI is working • To enact a comprehensive law related to ship breaking • Law will address permanent and trained workforce for the Ship Breaking Yards • To establish a proper training centre on ship breaking and recycling • To create facility of central hazardous waste dumping zone including incinerator seeking technical know-­‐how from other countries

Organizations/parties involved • • • • • • • • • • • • • • • • •

Ministry of Industries Ministry of Labour and Employment Ministry of Environment and Forest Department of Customs Bangladesh Navy Inland Water Transport Authority Chi`agong Port Authority Radio CommunicaHon and Wireless Control Authority Shipping Masters Office Importers (Who import vessels for breaking) The Breaking Yard Owners and Breakers Survey Authority Survey companies Banks & financial InsHtuHons Shipping Agents Steel Re-­‐Rolling Mills Owners Traders

Conclusion

• Achieve insHtuHonal capacity and resources

• Improve infrastructural faciliHes

• Enforce protecHon of workers and environment • Create awareness among ship owners and workers

Photos at Yards

Non compliance of health regulaHons

Lack of awareness of health issues

Compliance with the health regulaHons

Following safety protocols

MagneHc liping machines being used

Safety warnings

Waste dumping area

InstrucHons on using fire hydrant

Training session for workers

Hospital for workers

Trees growing despite polluHon