An agreement on the establishment of two shipyards in India, including Shree Ram Vessel Scrap Pvt. Ltd./Shree Ram Shipping Industries Pvt. Ltd. and YSI Recyclers LLP, is taking shape. These yards are set to be the first Indian facilities approved under the European Union system.
Environmental and Safety Issues
The operation of these yards is based on the beaching method, where ships are directed to tidal areas to be dismantled there. This method has become controversial due to the difficulty in preventing the leakage of hazardous materials into the environment. Environmental groups have stated that this method is not permitted in any EU member states and that dismantling ships in tidal areas hinders the prevention of soil, water, and marine ecosystem pollution.
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Impact on the European Steel Industry
Industrial groups, including EUROFER, which represents the European steel industry, have emphasized in a letter to the European Commission that the establishment of Indian yards may harm European facilities that have invested in environmental and safety systems. These groups have also pointed to the importance of ship recycling as a source of scrap steel and secondary raw materials in European industrial policies.
Proponents of establishing these yards believe that the infrastructure and safety systems of these facilities have significantly improved since the adoption of the Hong Kong IMO Convention for the safe and environmentally friendly recycling of ships. They have also emphasized that since September 17, eight shipping organizations, including BIMCO and INTERCARGO, have sent a letter to the EU environment and transport ministers requesting the establishment of these yards.
The ongoing discussions are clarifying a fundamental question regarding the EU ship recycling regime: Should the beaching method be considered a non-permissible criterion, or can specific yards still meet European environmental and safety requirements using this method?
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