Moving in lock-step with the addition of our new tonnage is the responsible retirement of tonnage that is replaced as it reached the end of its economic life. By far the most environmentally efficient solution to this retirement is the responsible and environmentally sound recycling of ships through which over 99% of the ship by weight is reused, either 'as is' or in reconstituted form.
CNCo has a Sustainable Ship Recycling Policy in place stating that all vessels at the end of their working life will be sent for recycling to yards that, as a minimum and even prior to its full ratification, adhere to the Hong Kong International Convention for the Safe and Environmental Sound Recycling of Ships (HKC) that was adopted on 15th May 2009 and that, are certified by a reputable independent third party to ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and preferably, ISO 30000:2009. This policy ensures that CNCo recycles its assets in a sustainable, safe and in an environmentally responsible manner.
As stated in our previous report, we oversaw the successful sustainable recycling of MV Island Chief between December 2018 and April 2019. We also sustainably recycled MV Kweichow between May 2019 and January 2020. All works were completed with zero injuries, zero pollution incidents, with increased level of HKC compliance and social commitment at an HKC compliant Ship Recycling Facility (SRF) in India (Alang Plot 13 for MV Island Chief and Alang Plot 65 for MV Kweichow).
Both SRFs were externally independently audited, visited by our GM SD and had an HKC "Compliance Monitoring Team" at the SRFs at all times when demolishing work was taking place. This was an additional discretionary cost to CNCo and helped ensure that capacity building continued, and that standards and best practices were maintained throughout the recycling process.
The SRFs accepted all third-party advice on improving operations from all three parties who were empowered to stop any / all work if it was seen that personnel were in danger, or potentially coming into danger of injury, or that there as a risk of an environmental pollution event. This is a noteworthy paradigm shift in extended producer responsibility (EPR) as with the exchange of the bill of sale, CNCo, as prior owners, no longer had any liability or responsibility for the vessel.
MV Island Chief sustainable recycling statistics:
MV Kweichow sustainable recycling statistics:
Swire Pacific Limited's's Sustainable Development Office produced and launched the Sustainable Ship Recycling video which explains our commitment to Sustainable Ship Recycling. The video is available on CNCo's website.
You can read more about the mitigated environmental impacts and health, safety and social impacts of Sustainable Ship Recycling here.
The CNCo SD team paid a visit to Alang, India, on 7th May 2019. The purpose of the trip was to visit the Ship Recycling Facility (SRF) Baijnath Melaram, where CNCo sustainably recycled MV Island Chief earlier in the year and to inspect the newly-opened hospital run by the Indian Red Cross.
CNCo has been working with a number of SRFs in Alang to recycle our vessels in the most environmentally and socially responsible way. This is a commitment that CNCo has made publicly in our Sustainable Ship Recycling Policy and we back this up by making additional investments to comply with the Hong Kong International Convention for the Safe and Environmentally sound recycling of ships (HKC). MV Island Chief was recycled at Baijnath Melaram SRF with zero LTIs, FACs, fatalities and no environmental incidents. A meeting was held with the yard's HSE team, Business Development Manager and the Owner to finalise the completion report.
We also took this opportunity to express our gratitude to the workers for the work performed safely and in line with CNCo's strict safety and environmental standards: Simon Bennett, GM SD presented each of the workers with a tee shirt as a token of our appreciation. This was very well received as no other ship owners have taken the opportunity to do this. HSE Representatives from the local Gujarat Maritime Board (GMB) were also in attendance.
We were also incredibly pleased to see the multi-specialty hospital in Alang finally open for business after more than a decade of being built, but left locked closed due to a local funding dispute. Co-funded by the Indian Red Cross Society and GMB, the hospital opened its doors three months ago to provide medical care to the 10,000 recycling workers and local residents, and primary care to trauma patients. The hospital is well-equipped with the basic medical equipment, has three ambulances and includes an Intensive Care Unit (ICU), Operating Room (OR), Burns unit and an in-patient ward. It also has a pharmacy as well as a functioning laboratory.
Since the opening, it has served about 100 patients a day (open 24 hours) with the professional care of three resident doctors. This is a huge milestone for Alang as the lack of medical facilities was a major issue expressed during a recent European Community Shipowners Association audit.
Photo - top of page: Ship Recycling Facility (SRF) Baijnath Melaram
Below left: One of the ambulances serving the hospital in Alang
Below right: A look into the ICU