To beach or not to beach? This was one of the many and varied topics for debate for the brokers, cash buyers and ship breakers at last week’s TradeWinds Ship Recycling Forum in Singapore, March 10-11th 2015.
EC Director for Green Economy, Kęstutis Sadauskas, left little room for doubt when he told delegates via video that the EC would have no choice but to strictly follow the text of the EU Ship Recycling Regulation. “This will be a very difficult test for beaching facilities in South Asia.” He added, “It is clear that the current practices are not compatible with our requirements.”
However, in a later session Dr Petros Varelidis, Greek Environmental Attache to the EU, assured the room packed with ship breakers from South Asia that the regulation does not ban beaching but was open to interpretation. “There is no explicit or implicit ban on beaching” adding that the ultimate decision on any EU legislation lies with the European Court of Justice.
Taking a pragmatic approach, Class NK’s Junichi Hirata won support from many by asking delegates to ‘think technically, not politically’ as he welcomed guests to opening dinner.
The volatility of scrap market rates came into focus during a heated debate between cash buyers, brokers and shipbreakers with one delegate suggesting the event should be “renamed the Ship Recycling Casino.”
Meeting publically for the first time an informal group of ship recycling associations from India, Pakistan and Bangladesh, calling themselves the Federation of Ship Recycling Associations (FSRA), appeared to support a united stand against the EU Ship Recycling Regulation and invited each other to view improvements at their respective yards.
Uncompromising positions on both sides of the debate were temporarily put aside during the growing number of lively social functions connected to the Forum, prompting one delegate to liken the event to an annual family gathering.