There have been a number of unclear statements from the European Commission and negative news coverage of its auditing of recycling yards in Alang for approval under its Ship Recycling Regulation (SRR).
Shree Ram Group would like to outline the exact time line and facts associated with trying to get European recognition to recycle European-flag ships.
The first European Union audit carried out for Shree Ram plot 78/81 was in September 2018. A number of observations were raised such as the operations from a built structure, the environment, additional sampling of hazardous materials, the shiprecyling facility plan (SRFP), workers' health, downstream waste management and the absence of a hospital facility.
After the 2018 audit by the EU, Shree Ram’s other facility, plot V7, was audited in March 2019. During this audit, many points raised for Plot 78/81 were also highlighted for this facility, of which the yard was able to demonstrate and close points relating to SRFP, workers' health and environmental monitoring.
At the time of the audit, the main concern for the auditors was the primary cutting and effectiveness of double bottom cutting during high tide. However, due to absence of cutting of double bottoms this point was left open.
Shree Ram requested auditors to examine live double bottom cutting and the effectiveness of tank cleaning during their second round of inspections.
The second round of inspections for plot 78/81, and V7, was carried out in October 2019. Here the facilities were able to successfully demonstrate that all pending points from previous audits, such as double bottom cutting, tank cleaning and various others had now been rectified. Shree Ram could also show a newly built and well-equipped six-bed health care unit and intensive care unit ambulance.
Hence, as per the new report published on the EU website, all outstanding points as far as the yards ability to recycle vessels had been satisfied.
The only outstanding points were aimed at the government of India regarding the monitoring of downstream waste management and lack of adequate hospital facilities in India.
Investments
After investing millions of dollars in upgrading the facility, infrastructure, training and employment of professionals, the yard had successfully demonstrated that all of the points raised by EU auditors had now been satisfied.
Yet, there is still no sign of obtaining EU certification. This has become a political battle between the EU and the government of India in terms of the provision of hospital facilities and downstream waste management.
The major hurdle for EU certification was to increase the capacity for the dismantling of ships in places outside the EU, Turkey and the US, which would follow the same working practices. Shree Ram has demonstrated this is possible.
Post Covid-19, the recycling facilities in the EU, Turkey and the US have no capacity left and ships are being laid up outside these facilities.
Yards like Shree Ram, once certified, have an annual capacity of 200,000 metric tonnes and can eliminate this surplus to the benefit of shipowners and the EU
For your reference, Shree Ram's site inspection reports for applications 006 & 024 have now been published on the EC's website here https://ec.europa.eu/environment/waste/ships/list.htm.
