Ship recyclers met in Copenhagen ahead of a TradeWinds forum to formally launch the new Ship Recycling Alliance, a Bimco-led initiative.
The alliance’s first elected chairman is Nikos Mikelis, the architect of the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
Mikelis was instrumental in the development of the HKC during his tenure at the International Maritime Organization, until he retired at the end of 2012.
He has continued to work closely with the ship recycling sector via consultancy roles and as a non-executive director of cash buyer GMS.
The alliance he now heads aims to coordinate the voices of the ship recycling and shipping industries and help facilitate the global implementation of the HKC.
“It has been quite a journey since 2009. I got into the soul of the industry and became a proponent of it,” Mikelis said.
The HKC will enter into force in June 2025. Bimco estimates more than 15,000 ships will be recycled over the next 10 years and said the need for compliant yards from main ship recycling states such as India, Bangladesh and Pakistan is critical.
However, according to Bimco secretary general and CEO David Loosley, only a minority of shipowners choose voluntary HKC-compliant recycling, and therefore coordinating the voices of the industries is crucial.
“Part of the ship recycling industry is already trying to live up to the HKC standards ahead of its entry into force,” Loosley said.
“To succeed in having our ships recycled responsibly and safely for people and the environment, we need all stakeholders to engage and step up the pace. The Ship Recycling Alliance will connect stakeholders, advise regulators and create awareness among the public.”
An important task for the alliance will be to liaise with the IMO, the Secretariat of the Basel Convention and states that are party to these organisations to seek legal clarity on the interaction between both conventions.
This will include assessing, considering and responding to any proposals for future amendments to the HKC, and providing support for the implementation and enforcement of the Basel Convention requirements for the management of waste originating from the ship’s recycling process.
Mikelis told TradeWinds that there will probably be no immediate resolution to the conflict that exists between the Basel Convention and the HKC.
This could lead to what he described as “turbulence”.
“Maybe after June 2025, when the HKC comes into force, some states will want to adhere to the Basel Convention, and others will not. Shipowners will be stuck not knowing if vessels will be arrested,” he said.
The founding members of the alliance are Bimco, the International Ship Recycling Association, the Ship Recycling Industries Association of India, the Bangladesh Ship Breakers and Recyclers Association, the Turkish Ship Recycling Industry Association, the Pakistan Ship Breakers & Recyclers Association, ship recycling services company Guideship, cash buyers GMS and Wirana, and Indian ship recycling group Bansal.
The aim of the alliance is to have between 10 and 40 members.
Currently, the founding members are from the ship recycling sector but Bimco’s intention is to bring in shipowners to join the alliance.
