Annette Stube, Head of Maersk Group Sustainability, says that the company has initiated a collaboration with shipyards in India with the aim to improve the conditions in shipbreaking yards.
”It is urgent that we find a solution. The problem will become even greater in the coming years with an increasing number of vessels to be recycled globally. Yet, it is not simple. To be successful the solution must be sustainable, and acceptable for the environment, working environment and also commercially. It would be a failure if the shipping companies that assume responsibility then lose their competitiveness and ultimately their existence. The global environment and working environment would gain nothing from that. We must remember that there are countries to whom shiprecycling is a significant employer and business.” Mrs Stube stated.
Maersk says to have requested a number of improvements to the yards that wish to work with the company, and give the yards in Alang in India who want a better future for themselves and their employees a financial incentive to upgrade their work and environmental conditions.
The requirements cover not just the Hong Kong Convention, they are enhanced with Maerk’s own stricter requirements on working conditions and environment. In return, Maersk will invest and allocate both internal and external resources to assist shipyards in improving the conditions, Mrs Stube added.
”There is a healthy commercial incentive behind this solution. If the ship yards live up to our requirements we will send our vessels for dismantling at a competitive price. This way they can compete with neighbouring yards that do not live up to the Hong Kong Convention.We support the yards showing willingness to change and we support their already significant progress.”
Mrs Stube noted that since sending vessels to Alang for the first time in May, they have seen significant progress in several areas: on the Shree Ram yard, which has received the first two ships from us, 70% of the workers have received intensive training and instructions from the British Lloyds Register Quality Assurance and other qualified organisations. The remaining 30 %, who perform less dangerous tasks, have also received training targeted at their tasks.
Also, she refered to the following examples of progress
- As opposed to practices used elsewhere in the area, the environmental recycling plan means that the majority of the vessel is dismantled on a surface where there is no contact between ship parts and sand or water.
- Use of appropriate personal protective equipment is available and required.
- All workers are paid the minimum wage plus 200 % overtime payment and they have a contract—neither of which is the practice of the industry in the area.
- Housing conditions for the vast majority of the shipyard’s employees are significantly upgraded and the yard is in the process of improving the conditions for the remaining employees.
Maerk admitted its support in trying to improve worker conditions in India after criticisms of hazardous conditions.
In May 2016, Maersk Line sent its first two container vessels, the Maersk Wyoming and the Maersk Georgia, to India’s Shree Ram yard in Alang for recycling. Both NGO Shipbreaking Platform and the Transport and Environment (T&E) denounced Maersk Group’s decision to beach their end-of-life vessels in India.
Earlier this month Danwatch released the inspection report and photos of an undercover inspection of Shree Ram, the Alang shipbreaking yard recently contracted to scrap Maersk vessels.
Danwatch says their visit to the yard found questionable practices, including:
- unsafe rigging of cutting gas supply lines along the beach, a risk factor for explosions;
- a lack of appropriate personal protective equipment, including the absence of safety glasses, earplugs or respirators;
- flammable clothing worn during cutting operations;
- unsanitary living conditions for workers in the nearby community;
- limited medical facilities to treat the wounded;
- and a lack of formal contract papers with shipbreaking workers.
Furthermore, Danish politicians criticised Maersk last Sunday, saying the company should monitor what happens to its ships more closely, Reuters reports.
The Danish company also expressed regret that a ship it sold this year, the “North Sea Producer”, had then been taken to a shipbreaking yard in Bangladesh, after Danish media last week showed workers using precarious rope ladders to climb the hull.
”When we decided to collaborate with shipyards in India we were fully aware of the risk of being criticized for the yards not yet fully observing the rules. We can of course document the main improvements already achieved and we now see that the shipyards’ engagement get others to follow. When we begin negotiations on ship recycling of the next vessels, we will invite a number of yards in Alang that like Shree Ram already follow the Hong Kong Convention and will commit to meeting our standards. Four shipyards have announced that they are ready and have started new investments in improvements impacting hundreds of workers already” Mrs Stube concluded her statement.
