Classification society Lloyd’s Register (LR) has certified Indian shipbreaker Shree Ram as compliant with European Union (EU) regulations on ship recycling.
The certification covers Shree Ram’s shipbreaking plots 78, 81 and V7.
The move is significant because it appears to open the door to the possibility that an Indian beaching yard could be included in the list of yards approved by the EU to scrap European flag ships.
LR is one of the recognised organisations that is tasked with carrying out shipbreaking yard audits on behalf of the EU.
Shree Ram is linked to cash buyer NKD Maritime. The cash buyer said: “This approval by LR pushes them a significant step closer to getting full EU approval.”
So far no south Asian beaching yards have been included in the list of approved EU yards which was drawn up when the EU Ship Recyling Reglation (SRR) entered into force in January last year.
At the same time the UK headquartered LR has also issued Shree Ram with a statement of compliance with the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships.
Shree Ram is regarded as one of India's better shipbreakers in terms of its safety and environmental standards and was selected by Maersk Line to demolish its end of life ships.
LR’s EU certification was based on a “desk top review of the ship recycling facility plan over six months.” Site visits were also made to the Shree Ram facility.
The certificate is valid between 2020 and 2025 depending on the results of quarterly inspections carried out by LR surveyors.
However, Shree Ram is not the first Indian yard to win EU SRR compliance certification from Lloyd’s Register. Last year Indian breaker Y.S Investments facility was also approved by LR as compliant with the EU’s SRR.
The LR certification also does not automatically mean that either yard will be included on the list of EU approved recycling facilities. Both Shree Ram and Y.S Investments earlier applied to be included on the list EU list but were rejected after a site visit by EU inspectors.
The EU regulators appear to be reluctant to accept Indian yards many of which have statement of compliance certification with the Hong Kong Convention.
One broker said: “With luck this approval from LR pushes Shree Ram a significant step nearer to obtaining full EU approval. Or will they (the EU) find further excuses?”
