space Press Releases, News Stories

by Emily Redding, Lloyd's List

3 March 1999 -- P&O NEDLLOYD has sold another of its first generation boxships to an Indian scrapyard in a move which could spark a further row with environmental activists.

Earlier this year Greenpeace staged a protest against what it sees as toxic waste dumping in Asia following the scrap sale of P&O Nedlloyd's 1969-built boxship Encounter Bay.

Greenpeace argued that the 1,578 teu Encounter Bay contained asbestos - the only fireproof material available 30 years ago - which posed a threat to the health of Asian shipbreakers.

Adding yet more fuel to the fire P&O Nedlloyd has sold its 3,055 teu Cardigan Bay, built in 1972, to breakers based in India for $106 per ldt, London-based brokers have reported.

P&O Nedlloyd director Rutger van Slobbe confirmed that the Cardigan Bay had been sold, but refused to reveal any financial details.

P&O Nedlloyd said it was aware of the sensitive nature surrounding the containership sales and has held several discussions with Greenpeace.

"We need to find a solution and look at ways and means of disposing of these ships in an environmentally and labour- friendly way," he added.

Greenpeace demands that all asbestos should be removed before the ship is delivered to the breakers.

Mr van Slobbe said the removal of asbestos before scrapping was not only impossible, as it was contained in panelling around the engine, but would breach the International Maritime Organisation's and European Union's fire regulations.

"We are not scrap dealers and we cannot solve this problem on our own.

"We need exclusive bodies such as the Dutch Shipowners' Association, European Community Shipowners' Association, International Maritime Organisation and International Labour Organisation to get together and look at some answers," he said.

Greenpeace recognised that P&O Nedlloyd was not the only shipping firm disposing of such ships.

"However, P&O Nedlloyd is an important company with a large fleet. The firm sold a lot of ships into India last year and being an Anglo-Dutch organisation it should be aware of the problems associated with toxic waste dumping and be held accountable," spokesman Holger Roenitz told Lloyd's List.

Although Mr Roenitz refused to reveal Greenpeace's new protest strategy, he insisted: "We will be making our demands much clearer."

Mr van Slobbe has argued in the past that if owners of old or substandard tonnage are discouraged from disposing of their vessels, the ships could be utilised well beyond their working life or be scuttled illegally.

Due to the size and specifications of the boxships, P&O Nedlloyd said it had little choice but to sell to dealers in the Far East.