Wilhelmsen Ship Management is hoping to cash in on the trend for more environmentally friendly scrapping.
Wilhelmsen Ship Management (WSM) is hoping to cash in on the trend toward greener scrapping through a new business venture.
The Kuala Lumpur-based company says it is attempting to develop a market for environmentally friendly recycling and has its eye on potential business from 12,000 vessels over 25 years old and the growth of corporate social responsibility in shipping.
It has so far been involved in the demolition of four vessels and approved two breaking yards, Shanghai-based Xiagang Changjiang Shipbreaking and Jiangmen Zhong Xin Shipbreaking Steel in Guangzhou.
The yards, which dismantle at the quayside, have been selected by WSM based on their compliance with the International Maritime Organisation (IMO)’s new Hong Kong Convention on ship recycling.
WSM president Carl Schou says the business developed out of its involvement in laying up vessels on behalf of owners, some of which went on to be scrapped.
He says the green-recycling market is limited but one that can be grown for the benefit of the industry and environment.
“We are taking this step by step. There are not exactly people lining up for green recycling and there are not many players in the market but with more competition we can drive down prices and attract more owners to scrap vessels in an environmentally safe way.”
Schou says the idea is to charge a flat consultancy fee as a service provider rather than act as a cash buyer for vessels and try to make money from changing scrap prices.
He says there is little price differential between green recycling and the more common beach recycling in India and Bangladesh.
“There is not much of a price difference at the moment and it’s a small price to pay to show that you are being socially responsible and to stop your name being dragged all over the papers [for poor environmental practice].”
Schou says WSM is ready to consider yards in India and Bangladesh if they can meet the right environmental and safety standards. “It will be better if we can expand the market and get more yards to go down this route,” he said.
WSM puts its own surveyors on site to make sure that correct practices are being followed.
It is also involved in drawing up the inventory of hazardous materials prior to scrapping through classification society-certified surveyors.
Again in line with the recycling convention, it draws up a recycling plan and is involved in the pre-cleaning of vessels. A certificate is issued to verify the recycling is carried out in compliance with the convention.
by Adam Corbett London