Technological and economic feasibility study of ship recycling in Egypt

Tags: Ship Recycling, shipbreaking yard, Marine Environment Protection Committee, Encyclopedia Britannica, Egypt, Basel Convention, Classification, Basel Action Network, Hong Kong International Convention, International Maritime Organization, ALEXANDRIA UNIVERSITY, Hazardous Waste Transportation, Danny Prabowo Soetanto, Recycling Facility, ship recycling facility, Marine Engineering Naval Architecture, Recycling Industry, Model ship recycling yard, Ismail Omar Massoud, Metin Celik, Control Engineering Practice, fuzzy logic, Selcuk Cebi, Arab Academy for Science, Technology, International Ship, ship dismantling, Occupational Safety, Yousri Mohamed Anwar Welaya Dr. Maged Mohamed Abd, Yousri Mohamed Anwar Welaya Prof, Marine Engineering, Marine Engineering Department Faculty of Engineering Alexandria University, Yousri Mohamed Anwar Welaya, Marine Engineering Examiners' Committee, Mina Youssef Halim Tadros, FACULTY OF ENGINEERING, Worker Health and Safety, International Labour Office, hazardous materials, Naval Architecture, Maged Mohamed Mahmoud Abd El-Naby Lecturer
Content: ALEXANDRIA UNIVERSITY FACULTY OF ENGINEERING TECHNOLOGICAL AND ECONOMIC FEASIBILITY STUDY OF SHIP RECYCLING IN EGYPT A thesis submitted to the Faculty of Engineering, Alexandria University in partial fulfillment of the requirements for the Degree of Master of Science in Naval Architecture and Marine Engineering By Eng. Mina Youssef Halim Tadros Under supervision of Prof. Dr. Yousri Mohamed Anwar Welaya Dr. Maged Mohamed Abd El-Naby 2012
TECHNOLOGICAL AND ECONOMIC FEASIBILITY STUDY OF SHIP RECYCLING IN EGYPT
Submitted by Mina Youssef Halim Tadros For the Degree of Master of Science In Naval Architecture and Marine Engineering
Examiners' Committee:
Approved
Prof. Dr. El-Sayed Hussein Ahmed Hegazy Prof. Emeritus of Naval Architecture and Marine Engineering Naval Architecture and Marine Engineering Department Faculty of Engineering Port-Said University (Egypt)
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Prof. Dr. Yousri Mohamed Anwar Welaya Prof. Emeritus of Naval Architecture and Marine Engineering Naval Architecture and Marine Engineering Department Faculty of Engineering Alexandria University (Egypt)
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Prof. Dr. Yehia Abd El-Salam Abd El-Nasser Prof. of Naval Architecture and Marine Engineering Naval Architecture and Marine Engineering Department Faculty of Engineering Alexandria University (Egypt)
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Vice Dean for Graduate Studies and Research: Prof. Dr. Heba Wael Leheta
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Advisors' Committee
Approved
Prof. Dr. Yousri Mohamed Anwar Welaya Prof. Emeritus of Naval Architecture and Marine Engineering Naval Architecture and Marine Engineering Department Faculty of Engineering Alexandria University (Egypt)
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Dr. Maged Mohamed Mahmoud Abd El-Naby Lecturer of Naval Architecture and Marine Engineering Naval Architecture and Marine Engineering Department Faculty of Engineering Alexandria University (Egypt)
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ACKNOWLEDGEMENTS FIRST OF ALL, I THANK GOD FOR HELPING ME DURING THIS WORK. I WOULD LIKE TO EXPRESS MY DEEPEST THANKS AND EVERLASTING APPRECIATION TO PROF. DR. YOUSRI MOHAMED ANWAR WELAYA FOR HIS INDISPENSABLE HELP, PRECIOUS ADVICE AND SINCERE ENCOURAGEMENT. I WOULD LIKE TO ACKNOWLEDGE DR. MAGED MOHAMED MAHMOUD ABD EL-NABY FOR HIS ADVICE, GUIDANCE AND WILLING SUPPORT. SPECIAL THANKS TO PROF. DR. BADR MOHAMED ABDALLAH ABOU EL-NASR FOR HIS SPIRITED AND STIMULATING DISCUSSIONS WHICH HAVE GUIDED MY WORK. APPRECIATION IS ALSO EXPRESSED TO MY PROFESSORS AND MY COLLEAGUES IN THE DEPARTMENT OF NAVAL ARCHITECTURE AND MARINE ENGINEERING, FACULTY OF ENGINEERING, ALEXANDRIA UNIVERSITY FOR THEIR HELP. FINALLY, A SPECIAL DEBT OF GRATITUDE IS ACKNOWLEDGED TO MY FAMILY FOR THEIR GENEROUS HELP, HONEST PRAYERS AND INVALUABLE SACRIFICES. i
ABSTRACT The ship recycling industry is growing rapidly. It is estimated that the International Maritime Organization's (IMO) decision to phase-out single hull tankers by 2015 will result in hundreds of ships requiring disposal. At present, the ship recycling industry is predominantly based in South Asia. Due to the bad practice of current scrapping procedure, the efforts of the marine environment Protection Committee (MEPC) have led to the signing of the Hong Kong International Convention. This thesis highlights statistics about accidents concerning this industry and the harm occurring to health, safety and environment. The possibility to avoid hazardous materials and the necessary rules and standards for ship dismantling are also discussed. The role played by national and international organizations, conventions and parties which cannot be ignored in controlling ship scrapping is also presented. The present study throws light on the importance of the Green Passport which locates the hazardous materials and their quantities and the procedures required for old, existing and new ships concerning scrapping. The criteria and standards required to reduce the risk and damage to the environment are discussed and a proposed plan for the safe scrapping of ships is then presented. A technological and economic feasibility study for the ship recycling in Egypt is carried out as a case study. An overview of the technical requirements to operate a ship recycling facility in Egypt is presented. This includes the facility size, layout and location. The equipment and staff required to operate the facility are also evaluated. A cost analysis is then carried out. This includes site development, human resources, machinery and equipment. A fuzzy logic approach is used to assess the benefits of the ship breaking yard. The use of the fuzzy logic approach is found suitable to make decisions for the ship breaking industry. Based on given constraints, the proposed model has proved capable of assessing the profit and the internal rate of return. ii
Table of Contents Acknowledgements................................................................................................................ i Abstract ................................................................................................................................. ii Table of contents..................................................................................................................iii List of tables........................................................................................................................vii List of figures.....................................................................................................................viii Abbreviations........................................................................................................................ x List of symbols..................................................................................................................... xi 1. Chapter 1: Introduction ......................................................................................................... 1 1.1. General .......................................................................................................................... 2 1.2. Recycling definition ...................................................................................................... 2 1.3. Historical review............................................................................................................ 4 1.4. Thesis objectives and structures .................................................................................... 6 2. Chapter 2: Ship scrapping at present .................................................................................... 8 2.1. General........................................................................................................................... 9 2.2. Principles of current practice of ship scrapping .......................................................... 10 2.2.1. Decommissioning and sale for scrapping ......................................................... 10 2.2.2. Demolition ­ Principles of the breaking process .............................................. 12 2.2.3. Disposal and recycling...................................................................................... 14 2.3. Occupational safety, health and environmental implications ...................................... 15 2.3.1. Safety ................................................................................................................ 16 2.3.2. Effects of substances present ............................................................................ 17 2.3.3. Health and the environment .............................................................................. 17 2.3.4. Occupational safety, health and environmental concerns................................. 19 3. Chapter 3: National and international obligations .............................................................. 22 3.1. Introduction ................................................................................................................. 23 3.2. Hong Kong International Convention ......................................................................... 23 3.3. The role of the Basel Convention ................................................................................ 25 3.4. The role of the International Labour Organization (ILO) ........................................... 26 3.5. Flag State obligations .................................................................................................. 26 3.6. Port State control rights ............................................................................................... 27 3.7. Role of the recycling State........................................................................................... 27 3.8. A party and its recycling facilities ............................................................................... 29 3.9. The role of the shipping industry................................................................................. 29 3.10. The role of the ship recycling industry ...................................................................... 30 3.11. Communication and Reporting information .............................................................. 31 iii
4. Chapter 4: Control of hazardous materials ......................................................................... 32 4.1. Introduction ................................................................................................................. 33 4.2. Green passport ............................................................................................................. 34 4.3. Procedure for new ships related to ship recycling ....................................................... 35 4.3.1. Minimization of hazardous substances used in the construction of new ships and their equipment ..................................................................................................... 35 4.4. Procedures for existing ships related to ship recycling ............................................... 37 4.4.1. Preparation of the Green Passport .................................................................... 37 4.4.2. Minimization of the use of potentially hazardous substances .......................... 37 4.4.3. Minimization of waste generation .................................................................... 37 4.5. Preparation for ship recycling...................................................................................... 37 4.5.1. Selection of the recycling facility ..................................................................... 37 4.5.2. Delivery of the ship to the recycling facility .................................................... 38 4.6. Preparation of a ship for recycling .............................................................................. 39 4.6.1. General.............................................................................................................. 39 4.6.2. Ship recycling plan ........................................................................................... 39 4.6.3. Preparations to prevent pollution ...................................................................... 40 4.6.4. Preparations to protect occupational health and safety..................................... 41 5. Chapter 5: Safety aspects in shipbreaking industry ............................................................ 43 5.1. Introduction ................................................................................................................. 44 5.2. Safe shipbreaking plans and schedules........................................................................ 45 5.2.1. Model plans....................................................................................................... 45 5.2.2. Preparation phase .............................................................................................. 48 5.2.3. Deconstruction phase ........................................................................................ 48 5.2.4. Material stream management phase.................................................................. 50 5.3. Safety in ship breaking sites ........................................................................................ 53 5.3.1. General preventive and protective measures .................................................... 53 i) Means of access and egress ........................................................................ 53 ii) Means of escape in case of fire or other dangers ........................................ 54 iii) Housekeeping.............................................................................................. 54 iv) Scaffolds and ladders .................................................................................. 54 v) Precautions against the fall of persons and materials ................................. 54 vi) Fire prevention and fire-fighting................................................................. 55 vii) Dangerous atmospheres and confined spaces ............................................. 55 5.3.2. Measures against physical hazards ................................................................... 56 i) Noise .......................................................................................................... 56 ii) Heat stress and wet conditions ................................................................... 56 iii) Electricity.................................................................................................... 57 5.3.3. Measures against biological hazards................................................................. 57 5.3.4. Competence and training .................................................................................. 57 5.3.5. Personal protective equipment and protective clothing .................................... 58 5.3.6. Contingency and emergency preparedness....................................................... 59 iv
6. Chapter 6: Ship recycling in Egypt..................................................................................... 60 6.1. The ship-breaking activity in Egypt at present ............................................................ 61 6.2. Economic and commercial factor ................................................................................ 61 6.2.1. Recycling in Egypt............................................................................................ 61 6.2.2. Categories of dismantling sites ......................................................................... 61 6.2.3. Average recycling age and average future recycling demand .......................... 62 6.2.4. Average value of steel scrapped in $/tonne ...................................................... 62 6.2.5. Time needed for scrapping a ship ..................................................................... 63 6.2.6. End of life decision factors ............................................................................... 63 6.2.7. Scrapping economics ........................................................................................ 63 6.3. Sources of vessels for recycling .................................................................................. 66 6.3.1. The First Category ­ Classification of Ships by age ........................................ 67 6.3.2. The Second Category ­ Classification of Ships by flag ................................... 69 6.4. An overview of the technical requirements to operate a ship recycling facility in Egypt............................................................................................................................ 70 6.4.1. Facility Size and Layout ................................................................................... 70 6.4.2. Staff required to operate a Ship Recycling Facility.......................................... 73 6.4.3. Equipment Requirements for Ship Recycling .................................................. 75 6.4.4. Waste Transportation from the Site .................................................................. 76 6.5. Model ship recycling yard in Egypt ............................................................................ 77 6.5.1. Size.................................................................................................................... 77 6.5.2. Layout ............................................................................................................... 77 6.6. Pre-feasibility study for shipbreaking yard in Egypt................................................... 78 6.6.1. Land and site development cost........................................................................ 78 6.6.2. Human Resources Requirement........................................................................ 78 6.6.3. Machinery and Equipment................................................................................ 79 6.6.4. The Purchase cost of ships................................................................................ 80 6.6.5. The revenue....................................................................................................... 80 6.7. Economic feasibility study for a shipbreaking yard .................................................... 80 6.7.1. Determining Profit value with Fuzzy Logic ..................................................... 82 6.7.2. Determining the Dominant Factors................................................................... 82 6.7.3. data collection .................................................................................................. 82 6.7.4. Fuzzy Inference System Design ....................................................................... 83 6.7.5. Fuzzy Input ....................................................................................................... 84 6.7.6. The surface viewer............................................................................................ 86 6.7.7. Calculation of internal rate of return................................................................. 87 6.7.8. Summary of the steps........................................................................................ 90 6.7.9. Discussion of results ......................................................................................... 90 7. Chapter 7: Conclusions and recommendations................................................................... 91 7.1. Conclusions ................................................................................................................. 92 7.2. Recommendations for future work .............................................................................. 92 v
References........................................................................................................................... 94 Appendices.......................................................................................................................... 98 Appendix 1: List of hazardous wastes and substances that are relevant to ship recycling ...................................................................................................................... 98 Appendix 2: Potentially hazardous materials which may be on board ships delivered to recycling facilities ................................................................................. 101 Appendix 3: MATLAB code for feasibility study in shipbreaking yard................... 102 Appendix 4: IRR calculation ..................................................................................... 105 vi
LIST OF TABLES Table (2-1) Ship scrapping statistics for 1999 ............................................................................ 9 Table (2-2) Status of the MARPOL Convention, scrapping majors......................................... 12 Table (2-3) The ship-breaking operation .................................................................................. 13 Table (2-4) Incidents at Alang for 1997-99 reported by Gujarat Maritime Board ................... 16 Table (2-5) Causes and frequencies ­ Incidents at India, Gujarat Maritime Board (%) .......... 17 Table (2-6) Exposure to hazardous substances ­ Extraction procedures.................................. 20 Table (6-1) Relation between ship type and steel value for 130 ­ 200 m in length ................. 66 Table (6-2) The world merchant fleet by number of 0-4 years old ships, type and size .......... 67 Table (6-3) The world merchant fleet by number of 5-14 years old ships, type and size ........ 67 Table (6-4) The world merchant fleet by number of 15-24 years old ships, type and size ...... 67 Table (6-5) The world merchant fleet by number of +25 years old ships, type and size ......... 68 Table (6-6) Total number of ships, classified by age and size ­ 2009 ..................................... 68 Table (6-7) Number of ships available for recycling from 2009 - 2040................................... 68 Table (6-8) World fleet GT500: total number of ships, by type and flag ­ 2009................... 69 Table (6-9) World fleet GT500: GT (in 1000 t) of ships, by type and flag ­ 2009................ 69 Table (6-10) Indicative Criteria for Sizing a Recycling Facility .............................................. 70 Table (6-11) Indicative Staff Required to Dismantle a Ship .................................................... 74 Table (6-12) Indicative Equipment Required to Dismantle a Ship .......................................... 75 Table (6-13) Legal Requirements for Hazardous Waste Transportation.................................. 76 Table (6-14) Uniform annual cost for different fixed cost values ............................................ 78 Table (6-15) The salaries of the staff working in shipbreaking yard........................................ 79 Table (6-16) The initial cost of equipment used in shipbreaking yard ..................................... 80 Table (6-17) Classification of Infrastructure and Equipment Cost........................................... 82 Table (6-18) Classification of Purchase Cost of ships.............................................................. 83 Table (6-19) Classification of Labor and Transportation Cost................................................. 83 Table (6-20) Classification of Material Value .......................................................................... 83 Table A(1-1) Wastes and substances that may be inherent in the ship structure...................... 98 Table A(1-2) Wastes and substances that may be on board the ship...................................... 100 Table A(1-3) Waste components that are relevant to ship recycling and which are not included in List A in the Basel Convention ............................................................................ 100 Table A(4-1) IRR if purchase cost=1/2 material value........................................................... 105 Table A(4-2) IRR if purchase cost=1/3 material value .......................................................... 108 vii
LIST OF FIGURES Figure (1-1) Reduce, reuse and recycle waste hierarchy ............................................................ 2 Figure (1-1) Ship life cycle ......................................................................................................... 3 Figure (1-2) Lacking personal protection equipment ................................................................. 5 Figure (1-3) Heavy labour-intensive work ................................................................................. 5 Figure (2-1) Ship breaking at beach without any safety ........................................................... 12 Figure (2-2) Ship breaking at beach without any safety ........................................................... 12 Figure (2-3) Shows manual unskilled workers in Pakistan ...................................................... 15 Figure (2-4) The working conditions in a shipbreaking yard in Turkey .................................. 16 Figure (5-1) Model safe shipbreaking plan............................................................................... 44 Figure (5-2) Elements for the development of shipbreaking schedules for each core phase ... 46 Figure (5-3) Model shipbreaking schedules for the three core phases ..................................... 47 Figure (5-4) The zoning of the shipbreaking area .................................................................... 51 Figure (6-3) Average recycling age from 1990-2006 .............................................................. 62 Figure (6-2) Average monthly value of steel scrapped in the previous three years ................. 62 Figure (6-3) Weight ­ Length ratio for tankers ........................................................................ 64 Figure (6-4) Steel value for tankers .......................................................................................... 64 Figure (6-5) Weight ­ Length ratio for bulk carriers................................................................ 64 Figure (6-6) Steel value for bulk carriers.................................................................................. 65 Figure (6-7) Weight ­ Length ratio for container ships............................................................ 65 Figure (6-8) Steel value for container ships.............................................................................. 65 Figure (6-9) Number of ships available for recycling from 2009 - 2040 ................................. 68 Figure (6-10) Indicative General Layout of a Medium Sized Ship Recycling Facility............ 71 Figure (6-11) General layout for ship recycling facility .......................................................... 71 Figure (6-14) General layout suitable for shipbreaking yard in Egypt..................................... 77 Figure (6-15) Simple distribution of raw material using fuzzy logic ....................................... 81 Figure (6-16) Fuzzy Inference System ..................................................................................... 83 Figure (6-17) Matlab Display Infrastructure, Equipment, Labour and Transportation Cost Membership Function ............................................................................................................... 85 Figure (6-18) Matlab Display ratio between Material Value and Purchase Cost of ships Membership Function ............................................................................................................... 85 Figure (6-17) Matlab Display ratio between Material Value and Purchase Cost of ships Membership Function ............................................................................................................... 86 Figure (6-18) Matlab Display ratio between Material Value and Purchase Cost ­ Fixed Cost - Profit surface in the first case......................................................................................... 86 Figure (6-19) Matlab Display ratio between Material Value and Purchase Cost ­ Fixed Cost - Profit surface in the second case .................................................................................... 87 Figure (6-20) Cash flow diagram for shipbreaking yard costs'................................................ 88 Figure (6-21) relation between IRR and infrastructure with variation of material value from ($80M - $40M)................................................................................................................. 88 Figure (6-22) relation between IRR and infrastructure with variation of material value from ($30M - $0) ...................................................................................................................... 89 viii
Figure (6-23) relation between IRR and infrastructure with variation of material value from ($80M - $30M)................................................................................................................. 89 Figure (6-24) relation between IRR and infrastructure with variation of material value from ($20M - $0) ...................................................................................................................... 90 ix
ACM AFR Al BIMCO BLG CAS Cd CFC Cu DE ESM Fe FSI GA GL GMB HAVS HazMat HEPA Hg ICS IHM ILO IMO IR IRR LPG MARPOL MEPC OECD OSH PACM PAH Pb PCB POP PPE PVC SOLAS TBT UV VOC Zn
ABBREVIATIONS Asbestos-containing material The accident frequency rate Aluminum The Baltic and International Maritime Council Bulk Liquids and Gases Committee Condition Assessment Scheme Cadmium Chlorofluorocarbon Copper The Ship Design and Equipment Committee Environmentally Sound Manner Iron Flag State Implementation Committee General Arrangement Germanischer Lloyds Gujarat Maritime Board Hand­arm vibration syndrome Hazards Materials High Efficiency Particulate Arresting Mercury International Chamber of Shipping Inventory of Hazardous Material International Labour Organization International Maritime Organization Infrared Internal rate of return Liquefied petroleum gas International Convention For The Prevention of Pollution From Ships Marine Environment Protection Committee Organization for economic co-operation and development Occupational Safety and Health Presumed Asbestos Containing Materials Polycyclic aromatic hydrocarbons Lead Polychlorinated biphenyl Persistent Organic Pollutants Personal Protective Equipment Polyvinyl chloride International convention for the Safety of Life at Sea Tributyltin Ultraviolet Volatile organic compounds Zinc x
A CR i N NPV P SPW
LIST OF SYMBOLS Annual Amounts Capital Recovery Interest rate Number of years Net present value Present worth Single present worth
xi
CHAPTER 1 INTRODUCTION 1
CHAPTER 1 INTRODUCTION 1.1. General: Due to the fast growth in ship recycling industry worldwide, especially in Asian countries such as India, China, Bangladesh and Pakistan, it has become a major source of income for the countries working in this industry in recent times. The need to develop stringent laws to control the safety of workers and engineers working in this industry and to achieve the safety of the surrounding environment resulting from scrapping ships is extremely important. Therefore, this thesis aims to present an economic and technological feasibility study taking into consideration the safety of workers and the safety of the surrounding environment in this industry. It is possible for this industry to take an advanced place in Egypt in the near future and be capable to scrap the European ships. This is enhanced by Egypt's place in the center of the world and its nearness to the European continent which have many ships that are about to phase-out of service. 1.2. Recycling definition: environmental protection requires the development and application of methods to identify and reduce the adverse environmental effects of human services and activities. There is now a growing awareness of the need to radically decrease waste streams from production and consumption processes. This awareness has not only brought about the implementation of improvements in the currently used production processes but has also led to increased circulation of materials. Recycling is a means of reducing waste streams and accordingly reducing the demand for waste treatment. The objective of an efficient material production and recycling scheme should not only be to just recycle but also to minimize the resource utilization and associated emissions of all streams of materials in the production cycle, as shown in Figure (1-1). Figure (1-1) Reduce, reuse and recycle waste hierarchy [1] Recycling enters in many industries but in the marine field; ship recycling contributes to Sustainable Development and it is the most environmentally friendly 2
way of disposing of ships with virtually every part of the hull and machinery capable of being re-used, as shown in Figure (1-2) [2]. Figure (1-2) Ship life cycle [2] It is the process of dismantling an obsolete vessel's structure for recycling or disposal whether conducted at a beach, a pier, a dry dock or a dismantling slip. It is an important industry in South Asia, particularly to the economies of India, Bangladesh and Pakistan, providing jobs to hundreds of thousands workers and much needed steel for development. The practice is inherently sustainable given over 95% of a ship can be recycled [3]. For example, Steel is re-rolled and used in construction, machinery and equipment. It is used for new steel production. The production of new steel in this way requires only one third of the energy used for steel production from Raw Materials [4]. Also, oils and fuels are re-used or recycled. Ships' generators, pumps, furniture and other equipment may be reused ashore. Furthermore, the copper in cables and aluminum on board the ships may be recycled in similar ways. Recycling thus makes a positive contribution to the global conservation of energy and resources and, in the process, employs a large workforce. Ship recycling countries provide a valuable service to the global economy, recycling ships that are no longer operable, which otherwise might be abandoned or sunk. Given over 90% of the world's trade is conducted via shipping [3], ship recycling is an issue in which the majority of the world's population has a stake, although its direct effects, both positive and negative, often go unseen at the global level. Whilst in theory the practice is sustainable, there is growing concern in the international community over the conditions in which ship recycling takes place. There is often little regard for worker health or safety, with worker injury and illness, and sometimes worker fatality, being commonplace. The record in environmental protection is poor, with a high incidence of pollution of local air, soil and water sources. Ships contain highly toxic materials, including asbestos, Polychlorinated biphenyl (PCBs), heavy metals and oils and fuels, the dangers of which are not always understood by the workforce which results in limited precautions being employed to protect worker health and the environment. The concerns over standards in the industry are compounded by the impending phase- 3
out of single-hulled tankers, which will result in thousands more ships requiring recycling over the coming ten years, the majority of which will find their way to the beaches of South Asia [3]. For a new ship that wish to enter service with a certified Inventory of Hazardous Material (IHM). "This has to be updated through a ship's life time", explained Henning Gramann, Environmental Engineer and expert for Ship Recycling at Germanischer Lloyds (GL). He also added: "Existing ships would also be provided with such an inventory within the first five years the convention (International maritime organization - IMO convention) enters into force - or before the vessel is sent for demolition, whatever comes first". Recycling Facilities would need to comply with safety and environmental requirements to gain their authorization and e.g. handle and dispose of hazardous material safely. Ship recycling states will be required to take effective measures to ensure that Ship recycling facilities under their jurisdiction comply with the IMO convention. When an owner decides to scrap a vessel, a facility approved in line with the requirements of the IMO convention has to be chosen. The combination of the abilities of and methods applied at this facility and the ship characteristics like size and hazardous materials contained, will be considered for preparation of the specific Ship Recycling Plan by the ship recycler. This plan has to be approved by the Recycling State and is required for issuance of the International Ready for Recycling Certificate by the Flag State. This means ships will have to undergo an initial survey to verify the inventory of hazardous materials at the beginning of their operational life, or in-between for existing ships, re-surveys during the life of the ship, and a final survey directly prior to recycling. In order to assist shipyards and shipowners in the implementation of the new convention a series of guidelines are being developed. The entry into force criteria for the convention (number of states required and percentage of gross merchant shipping tonnage plus consideration of ship recycling capacity) will be decided by the Diplomatic Conference when formally adopting the proposed convention and starting the ratification process. If the convention enters into force in 2013 as expected, globally approximately 50000 ships will fall under the new regulation [5]. 1.3. Historical review: In the 1970's ship breaking was done in the docks of Europe. It was a highly mechanized industrial operation. But as European countries grew more conscious of environmental standards, and health and safety measures, costs of scrapping began to escalate. So where could ship owners go so that their profit margins would not be eroded? About 90% of the ship breaking industry predictably moved to Asian countries, to India, Bangladesh, China, Pakistan and Turkey, poorer nations with lax environmental and safety standards. Every year 600-700 sea vessels are brought to 4
the once pristine beaches of Asia for scrapping. In India most of the ships are beached at Alang, in Gujarat, on the West Coast of India. After the beaching of the MV Kota Tenjong in 1983, this once beautiful beach has become the world's leading shipbreaking yard. Beaches where ship breaking happens in Asia are now graveyards littered with machinery parts, oil rags and leaking barrels, the air poisoned by open fires, the land and surrounding water contaminated by asbestos, heavy metals, dioxins and other persistent organic pollutants. In Alang, you can see women carrying asbestos waste on their heads and dumping it in the sea due to lower labor costs and less stringent environmental regulations dealing with the disposal of lead paint and other toxic substances. You can see workers with bare hands using acetylene torch cutters to dismantle huge sea carriers into small pieces. They don't have gloves; they're unprotected from toxic substances, explosions and falling steel. Untrained and desperately poor, they are willing to work without the gas masks and safety equipment mandatory in first world countries, for a pittance of 60 to 100 rupees (an Indian silver coin) a day, as shown in Figures (1-3) and (1-4). Figure (1- 3) Lacking personal protection equipment [7] Figure (1- 4) Heavy labour-intensive work [7] As some countries wise up to the problems of ship breaking and bring in legislation, ship owners merely move operations to even poorer countries. Some "breakers" still remain in the United States which works primarily on government surplus vessels. There are also some in Dubai, UAE for tankers. China used to be an important player in the 1990s. It is now trying to reposition itself in more environmentally friendly industries [6, 7]. 5
1.4. Thesis objectives and structures: The present thesis is, therefore, divided into seven chapters: Chapter 1: Introduction In this chapter, a definition of ship recycling industry, a brief history about this important industry especially in the countries of South Asia and the extent of harm to workers and the environment have been reviewed. Chapter 2: Ship scrapping at present The second chapter includes some important statistics of the countries that have a reputation in the scrapping of vessels and the important points that must be available in the shipyard to attract ships for scrapping. It includes some scrapping operations and locations too. This chapter contains a review of some statistics about accidents in this industry and the materials that be taken into account during the process of scrapping such as oils, asbestos, zinc and copper and the effect of these materials on workers and environment and the possibility to avoid these hazardous materials and introduces the necessary rules for ship dismantling. Chapter 3: National and international obligations Chapter three includes the national and international mechanisms of ship recycling industry and the necessary criteria and standards required to be implemented to reduce the risk in this industry. Chapter 4: Control of hazardous materials In this chapter, places of hazardous substances found in the ship that affect the safety are being reviewed and how to overcome them through the Green Passport for ships in which all hazardous materials are being recorded through the process of loading or unloading. It also reviews the procedures necessary for the recycling of old, existing and new vessels to avoid the harmful effects of pollution. Chapter 5: Safety aspects in shipbreaking industry This chapter includes the necessary plan for the process of scrapping a ship in the ship breaking yard, which consists of three phases, the first is preparation, the second is deconstruction and the third phase is material stream management to ensure the quality and integrity of the process of scrapping. This chapter reviews the attributes and methods necessary for the safety of workers within the site, such as escape routes during a fire, the necessary measures to protect against the fall of persons or materials, noise, heat, dangerous atmosphere, electricity and biological hazards. It also includes the equipment required for safety. It focuses on how to prepare the worker or engineer to work on site to ensure his personal safety and the environment around him. 6
Chapter 6: Ship recycling in Egypt A technological and economic feasibility study for the ship recycling in Egypt is carried out as a case study in this chapter. An overview of the technical requirements to operate a ship recycling facility in Egypt is presented. This includes the facility size, layout and location. The equipment and staff required to operate the facility are also evaluated. A cost analysis is then carried out. This includes site development, human resources, machinery and equipment. The use of the fuzzy logic approach using MATLAB is found suitable to make decisions for the ship breaking industry. Based on given constraints, the proposed model has proved capable of assessing the profit and the internal rate of return. Chapter 7: Conclusions and recommendations This chapter presents some of the important conclusions from this thesis and some recommendations for future studies. 7
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