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SCRAPPING SOLUTIONS AIRED

Fairplay


OSLO, Norway, 8 July 1999 -- Environmental concerns over the consequences of vessel scrapping are gaining a greater momentum and are showing signs of becoming an influencing factor in de disposal of tonnage. The issue was debated at the IMO’s Marine Environment Protection Committee last week.

Informed sources told Fairplay that the Norwegians have expressed concerns over environmental scrapping issues and enjoy support from the ITF, Greenpeace and a number of other countries. Some parties expressed the view that, since scrapping takes place ashore, it is not an IMO matter. However the majority felt it was and should be included in the work programme for IMO. Norway has been asked along with others to gather more information for future discussion.

P&O experienced problems with protests by Greenpeace when scrapping its first generation of box boats earlier this year in China. Other big-name operators may have opted to sell vessels that contain significant quantities of sensitive materials rather than run the environmental scrapping gauntlet. However, help may be on the way if a suggested $1Bn ship recycling plant goes ahead in Australia. Australian Steel Corp chairman Greg Parr said the company was only waiting on the state government to grant an option over the land required for the project at Pelican Point, Port Adelaide. “We are ready to proceed with the feasibility study as soon as the option, which will hold the land for the period of the feasibility study, is granted, said Parr.

The study, costing around $ 16M, has received the support of Deutsche Bank, which this week confirmed its support in writing to south Australia’s premier John Olsen. Parr remarked, “Our financier have already expressed support for the study, as have- a number of other major international and national parties.”

Despite this optimism from Australia, the scrapping market in India remains very down-beat, with the only real excitement being the first global summit on ship scrapping in Amsterdam last week. Interestingly, the problem of pollution and how it affects workers and the environment was high on the agenda.

However, the concern was raised that, if a consequence of tighter environmental controls was a reduction in demolition capacity, this could have a negative influence on removing older and less safe tonnage from the world’s oceans.


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