Illegal Vessel Dismantling Market Takes Heavy Toll in South Asia

Every 12 months, approximately 500 to 700 large ships reach the end of their operational life and need to be decommissioned worldwide, according to the International Labour Organization. Out of this total, less than 10% undergo proper vessel dismantling: millions of tons of maritime scrap contaminated with toxic substances find their primary destination on the south coast of Asia. On the “shipbreaking beaches” of Bangladesh, India, and Pakistan, far from any proper infrastructure and oversight, thousands of unskilled workers, including children, dismantle these vessels — considered one of the most dangerous jobs by the ILO. According to the Shipbreaking Platform, an NGO that brings together 17 organizations from 10 countries, at least 447 people have died in such facilities in the region since 2009.

VESSEL DISMANTLING

At least 443 commercial ships were sold for dismantling in 2022. These vessels are designed to operate for an average of 20 to 25 years. After this period, they need to be discarded, which is often seen by owners as a source of income since the obsolete structure can be sold to a dismantling company — a kind of “maritime junkyard.” The issue is that the scrap value is not determined solely by the amount of steel in the hull but also by the percentage of toxic waste it contains.

Substances like asbestos, mercury, heavy metals, oil, and paints increase recycling costs, significantly reducing selling prices and, in specific cases, may even result in expenses rather than profit for the owner, explains Nicola Mulinaris, Senior Communication and Policy Consultant at the Shipbreaking Platform. Thus, most operators opt for the use of intermediaries in transactions, bypassing international laws and those of their own countries to ensure higher profits.

— Only 5% to 10% of end-of-life vessels are sent for clean and safe recycling at certified shipyards in Europe, Turkey, and the United States — says Mulinaris.

Known as “cash buyers,” these intermediaries are registered entities in tax havens or states where maritime and environmental control rules are often disregarded. Four brands control 80% of the market, using front companies in countries like the British Virgin Islands in the Caribbean and Comoros in Africa to hide ship ownership, thus evading legal accountability.

DIRTY MONEY

Ship owners from Asia and Europe top the list of the largest exporters of carriers for irregular vessel dismantling in South Asia. In 2022, India dismantled 127 vessels at Alang shipyards on the west coast, while dismantling companies in Chittagong on the southeast coast of Bangladesh and Gadani on the southern coast of Pakistan recycled 122 and 43 units, respectively.

While a certified recycling company pays an average of $100 per ton of steel from decommissioned ships, “spot buyers” can offer up to $500 for the same quantity. This is possible by reducing costs related to safety, labor, and environmental protection, as many shipyards in South Asia offer to buy obsolete vessels for more than double the price of their competitors, says Julia Bleckner, Senior Researcher at Human Rights Watch.

— But this profit comes with a significant humanitarian and environmental cost for the region — she warns.

Ship dismantling is an extremely lucrative sector for Bangladesh, contributing about $2 billion to its economy. However, the country lacks any toxic waste processing facilities. There is also no safety: adult men and minors climb vessels without safety belts, using their own socks as gloves to protect their hands when handling hot or sharp objects, reports Bleckner. On their feet, they wear flip-flops. Moreover, ships often dock without undergoing proper inspection, and residual fuel stored inside them can cause explosions during dismantling, according to the expert.

In 2022, at least ten workers lost their lives, and 33 were injured while dismantling ships on Chattogram Beach in Bangladesh, according to the Shipbreaking Platform. Local sources also recorded three deaths in Alang, India, and three injuries in Gadani, Pakistan. Some of these accidents occurred aboard ships belonging to well-known shipping companies such as Berge Bulk, Sinokor, and Winson Oil.

In addition to causing a significant impact on workers’ health, ship dismantling is considered a highly polluting sector. Large quantities of carcinogens and toxic substances such as mercury, lead, and sulfuric acid poison industry workers and also affect neighboring communities due to soil and coastal water contamination. Since most shipyards lack waste management systems or facilities to prevent pollution, experts say this pollution can be widespread.

WHO IS TO BLAME?

According to the ILO, an average-sized ship contains up to 7 tons of asbestos, often sold in local communities after dismantling. Widely used as thermal insulation for decades, the material is now banned in over 60 countries, including Brazil, as prolonged inhalation of its fibers can cause serious diseases such as lung cancer, according to the World Health Organization (WHO).

— The ships being decommissioned today were built years ago when there was no environmental concern about the disposal of their structure — explains oceanographer David Zee from the State University of Rio de Janeiro. — They were not even designed to be dismantled.

Brazil had its own decommissioning scandal about a year ago. In February 2023, the Navy chose to sink the aircraft carrier São Paulo after months of deadlock. The vessel had been sent for dismantling in Turkey, but the responsible shipyard refused to accept it after 10 tons of asbestos and other toxic materials were detected in its hull. Forbidden to enter Brazil and abroad, the ship was sunk 350 km off the coast of Pernambuco, a decision widely criticized by environmentalists. At the time, the Navy stated in a release that the procedure “was conducted with the necessary technical competencies and safety.”

The International Maritime Organization (IMO) is the United Nations agency responsible for regulating and enforcing international standards for maritime transport, including environmental and labor protections. However, critics accuse the organization of being controlled by industry entrepreneurs, limiting its ability to act as an effective regulator, as countries with more registered flags (including convenience flags) carry more weight in votes. The IMO responded that “any penalties related to international treaty instruments are subject to national laws.”

Source: O Globo

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