The Hong Kong Convention on Ship Recycling

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Module 1 Hong Kong Convention Module 2 Inventory of Hazardous Materials Module 3 Preparations for Recycling Module 4 Authorization of Ship Recycling Facilities Module 5 Control & Enforcement Module 6 Market

The IMO Convention on Ship Recycling | Rev. 3.0 | No. 2

Hong Kong Convention

IMO has developed: International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) Ratification started in Sept. 2009 Entry into force ~ 2013 2015
Applicable to: all new and existing ships > 500GT ship recycling facilities Key issues: Inventory of Hazardous Materials (IHM) Authorization of Ship Recycling Facilities Excluded: government ships, domestic vessels (equal measures proposed)
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Hong Kong Convention

IMO Convention (21 articles and 25 regulations) approximately 6 Guidelines + options Art.8: Inspection of ships, Inventory of Hazardous Materials is required Reg 5: Inventory of Hazardous Materials Reg 8: General Requirements Authorization of Ship Recycling Facilities Ship Recycling Plan International Ready for Recycling Certificate Reg 24 & 25: Reporting Requirements

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Hong Kong Convention

6 Guidelines + options (Technical Guidance Best Practices) IHM Guideline, MEPC.197(62), 15 July 2011 revised at MEPC 62 Ship Recycling Plan (SRP) Guideline, MEPC.196(62), 15 July 2011 adopted at MEPC 62 Ship Recycling Facility (SRF) Guideline Authorisation Guideline Survey and Certification Guideline Ship Inspection Guideline

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Entry into Force

15 States World Merchant Fleet (2010): ~958 mGT 40% criteria: ~383 mGT Recycling capacity as measured by max. of last 10 years: 3% ~11.5 mGT (~50% of World Total)

Flag States (% GT)

Italy, 1.75% Germany, 1.54% Japan, 1.62% Panama, 20.79% United Kingdom, 1.79% Cyprus, 2.10% China, 3.81% Malta, 3.93% Greece, 4.11% Singapore, 4.63%

Recycling Capacity (mGT)

Europe, 0.2 Turkey, 0.7 Bangladesh, 6.6 Pakistan, 2.4 Rest, 0.9

India, 7.6
Hong Kong, 5.76% Bahamas, 5.28% Liberia, 11.09% Marshall Islands, 6.56%

China, 7.7
(Source: MEPC 62/INF-13

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Entry into Force - timeline

> 15 Flag States > 40% of world merchant fleet (GT) > 3% recycling capacity (10mio. GT) as per max. of last 10 years

20 09 -0 901

20 09

20 10 -0 8

ea rli es t

M ay

~2 01 5

-3 1

Time open for signature by open for accession any State adoption by any State period
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24 months after meeting EiF criteria

Entry into force (EiF)

Entry into Force

orange = EiF criteria not reached green = EiF criteria reached

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Ratification & Implementation

EU (27 flag states and 20 % of world merchant fleet) urges member

states to ratify as soon as possible Nations that signed the Convention*

France Italy Netherlands Turkey Saint Kitts and Nevis

Norway, Japan and China are planning to ratify the Convention as

soon as possible
* as of 01.09.2010
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Navigator

Module 1 Hong Kong Convention Module 2 Inventory of Hazardous Materials Module 3 Preparations for Recycling Module 4 Authorization of Ship Recycling Facilities Module 5 Control & Enforcement Module 6 Market

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Inventory of Hazardous Materials (IHM)

Documentation of hazardous materials onboard ships Different approach for new and existing ships 3 IHM Parts for HazMats in I. structure and equipment II. operative wastes III. stores

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Hong Kong Convention

Inventory of Hazardous Materials (IHM): Part I - hazardous materials in structure & equipment new ships: to be prepared by ship building yard existing ships: to be prepared by HazMat expert To be updated in case of changes by shipowner Part II (wastes) & III (stores) (only directly prior to recycling) To be certified by Recognized Organisation (RO) (To be checked by PSC and periodic certification) Major source of information for ship recycling plan

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Inventory of Hazardous Materials (IHM)

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Inventory of Hazardous Materials (IHM)

Table A: Hazardous Materials (mandatory for all ships) TABLE A* Materials Listed in Appendix 1 of the Convention

No. A-1 A-2

Materials Asbestos Polychlorinated Biphenyls (PCBs) CFCs Halons Other fully halogenated CFCs Carbon Tetrachloride Ozone Depleting 1,1,1-Trichloroethane (Methyl chloroform) Substances Hydrochlorofl uorocarbons Hydrobromofluorocarbons Methyl bromide Bromochloromethane Anti-foul ing systems containing organotin compounds as a biocide
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Threshold level no threshold level no threshold level

A-3

no threshold level

A-4

2500 mg total tin/kg

Inventory of Hazardous Materials (IHM)

Table B: Hazardous Materials (mandatory for new ships and new installations, voluntary for existing ships)

TABLE B* Materials Listed in Appendix 2 of the Convention No. B-1 B-2 B-3 B-4 Materials Cadmium and Cadmi um Compounds Hexavalent Chromium and Hexaval ent Chromium Compounds Lead and Lead Compounds Mercury and Mercury Compounds Polybrominated Biphenyl (PBBs) Polybrominated Diphenyl Ethers (PBDEs) Polychlorinated Naphthalenes (more than 3 chlorine atoms) Radioacti ve Substances Certain Shortchain Chlorinated Paraffins (Alkanes, C10-C13, chloro) Threshold level 100 mg/kg 1 g/kg 1 g/kg 1 g/kg

B-5 1 g/kg B-6 1 g/kg B-7 no threshold level B-8 no threshold level B-9 10g/kg * For materials i n this Table with no threshold level, quantities occuring as unintenti onal trace contaminants should not be l isted in Material Decl arations and in the Inventory

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Inventory of Hazardous Materials (IHM)

Table C: Potentially Hazardous Items (to be listed in IHM Part II or III)
TABLE C Pot entially Hazardous Items No. C-1 C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C-17 C-18 C-19 C-20 C-21 C-22 C-23 C-24 C-25 C-27 C-28 Liquid Propert ies Kerosene W hite Spi rit Lu brica tin g Oil Hydraulic Oil Anti-seize Compo unds Fuel Additive Engin e Co olant Additives Antifre eze Fluids Boiler and Feed W ater Treatment and Test Reag ents De- ioniser Re generating Chemicals Evaporator Do sing an d Descaling Acids Paint Stabil isers/Rust Stab ilisers Solvents/Thinne rs Paints Che mical Refrigerants Batter y El ectr olyte Alcohol , Methylated Spirits Acetyle ne Pr opane Butane Oxygen CO2 Perfluor ocarbons(PFCs) Methane Hydrofluorocarbon(HFCs) Nitrous Oxide(N2O) Sulfur Hexafluor ide( SF6) Goods

C-29 C-30 C-31 C-32 C-33 C-34 C-35 C-36 C-37 C-38 C-39 C-40 C-41 C-42 C-43 C-45 C-45 C-46 C-47 C-48 C-49 C-50 C-51 C-52 C-53 C-54 C-55 Gas Liquid

Oili ness

Bunkers: Fuel Oil Grease W aste Oil (Sludge) Bilge Oily Liquid Cargo Tank Residues Ballast Water Raw Sewage Treated Sewage Non-Oil y Liquid Cargo Residues

Oiliness

Explosibility/ Inflammability

Fuel Gas Dry Cargo Residues Medical Waste/Infectious Waste 1) Incinerator Ash 1) Garbage Fuel Tank Residues Oily Solid Cargo Tank Residues Oily/Contaminated Rags Batteries (incl. Lead Acid Batteri es) Pesticides / Insecticide Sprays Extinguishant Chemical Cleaner (inc. Electrical Equipment Cleaner , Carbon Remover) Detergent/Bleacher (could be a l iqui d) Miscellaneous Medicines Fire fighting closing, equipment Dry Tank Residues Cargo Residues Spare Parts which contain mater ials listed in Table A or Table B

Solid

Explosives/ Inflamma bles

Gas Green House Gases

1) Definition of Garbage is identical with that of MARPOL Annex V. However, incinerator ash is classified separately because it may include hazardous substances or heavy metals.

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Inventory of Hazardous Materials (IHM)

Table D: Exceptions (to be listed in IHM Part III)

TABLE D* Regular consumable goods potentially containing Hazardous Materials No. Properties Domestic and accommodation appliances Example Computers, refriger ators, printers, scanners, television sets, radio sets, vi deo cameras, video recorders, tel ephones, consumer batteries, fluorescent lamps, filament bulbs, lamps

D-1

* This Table does not include ship specific equipment integral to ship
operations, which has to be listed in Part 1 of the Inventory

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IHM FOR NEW SHIPS

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Preparation of IHM for New Ships

Preparation of IHM by the shipyard IHM is based on the information provided by suppliers Supplier provides for each product
Suppliers Declaration of Conformity (SDoC) Material Declaration (MD)

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Preparation of IHM for New Ships

Information from Supply Chain (MD SDoC)
MD SDoC MD SDoC MD SDoC

Request
MD SDoC

Request
MD SDoC MD SDoC

Shipyard
(NBs, repair, conversions)

Supplier Submit
MD SDoC

Supplier Submit
MD SDoC

Tier 1)

(Tier 2)
MD SDoC

Owner Recert: 5 years

SRF*

* SRF: Ship Recycling Facility

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Preparation of IHM for New Ships

Exclusions from IHM & MD non ship-specific and widely used appliances; Table D of Guideline for the development of the IHM - Res. MEPC.197(62) metal and metal alloys used in general construction, such as hull, superstructure, pipes or housing for equipment and spare parts RoHS-conform components group B1-B6 covered by RoHS B7-B9 to be investigated by suppliers
Attention: (Reg. 4.5.2) For later completion of the Inventory Part III ... the related pipe system volumes should be ... documented at design and construction stage
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IHM FOR EXISTING SHIPS

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IHM for Existing Ships

Owner responsible for preparation of IHM nominates designated person for maintenance has to involve HazMat expert for preparation Hazardous Materials Expert (HazMat Expert) works on behalf of the owner has to be qualified / experienced Germanischer Lloyd certification of IHM provided by owner / HazMat Expert
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What's the role of the designated person?

Role of Designated Person Works on behalf of the ship owner (employee or sub-contractor?) can be employed ashore or on board Responsible for maintenance and updating of Inventory on hand of MDs and SDoCs (Implements and) supervises system for maintenance of Part I

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IHM for Existing Ships

HazMat Expert investigates & collects information (plans, manuals, sister ship IHMs, etc.) prepares Visual and Sampling Check Plan (VSCP), sends VSCP to Recognized Organization for approval (if requested by RO) conducts work according to VSCP + local adoption prepares IHM Part I

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Example of VSCP:
The HazMat Expert will have two options to work on board with the VSCP Using the GL HME Offline Client during sample taking or Using a print out of the VSCP and later complete the work in the GL HME Client

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Location Diagram of HazMats in IHM

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Navigator

Module 1 Hong Kong Convention Module 2 Inventory of Hazardous Materials Module 3 Preparations for Recycling Module 4 Authorization of Ship Recycling Facilities Module 5 Control & Enforcement Module 6 Market

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Initial Notification and Reporting

1

Shipowner
2 initial notification

IRRC initial notification

SRF
1* SRP Approval Planned start date + copy IRRC

Recycling starts

IRRC

3 4 5 6

P SR p Ap l va ro

Administration / Flag State

SRP Approval Final Survey

Competent Authority

1*: Notification includes; ships info, IHM, Draft SRP After entry into force of IMO Convention: Approval of SRP by a Competent Authority or Recognized Organisation (RO) of recycling state Notification of flag state / RO for final survey Final survey for issuing of International Ready for Recycling Certificate (IRRC) by flag state / RO
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Reporting upon Completion

Recycl ing finish

SRF

Statement of completion

Competent Authority

Statement of completion (copy)

Administration / Flag State

The IMO Convention on Ship Recycling | Rev. 3.0 | No. 30

Navigator

Module 1 Hong Kong Convention Module 2 Inventory of Hazardous Materials Module 3 Preparations for Recycling Module 4 Authorization of Ship Recycling Facilities Module 5 Control & Enforcement Module 6 Market

The IMO Convention on Ship Recycling | Rev. 3.0 | No. 31

Authorization of Ship Recycling Facilities

IMO Authorization* of Ship Recycling Facility incl.:
Occupational Health and Safety Environmental Protection measures / monitoring Training of Personnel Handling of HazMats Provision of PPE Pre-demolition activities (e.g. asbestos removal) Disposal Arrangements (sub-contractors) documentation, verification and site inspection

Authorization is valid not more than 5 years shall make the documentation of their authorization available to parties who ask for it
*Guideline under development, adoption by IMO estimated to take place at MEPC.63, March 2012

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Authorization of Ship Recycling Facilities

Ship Recycling Facility Prepare of Ship Recycling Facility Plan SRFP Establish a Management System aimed at protecting human health and environment Ensure Safe & Environmentally Sound HazMat Waste Management
Authorization should specify HazMats to be handled HazMats detailed in the IHM should be
identified, labelled, packaged, removed prior to cutting workers must be trained for the specific tasks

Prepare emergency preparedness and response plan Ensure worker safety and training Report on incidents, accidents, occupational disease and chronic effects Accept ships that comply with this convention (IRRC) Application to Competent Authority
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Authorization of Ship Recycling Facilities

Competent Authority(ies) Verification of documentation Site inspection Issuance of DASR Document of Authorization Ship Recycling

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Navigator

Module 1 Hong Kong Convention Module 2 Inventory of Hazardous Materials Module 3 Preparations for Recycling Module 4 Authorization of Ship Recycling Facilities Module 5 Control & Enforcement Module 6 Market

The IMO Convention on Ship Recycling | Rev. 3.0 | No. 35

Control Measures for Ships (Reg. 10)

Surveys and Certification

Shipbuilding Initial Survey (ICIHM)

Operations Additional Survey (ICIHM) Renewal Survey (ICIHM)

Preparations Final Survey IRRC (ICIHM + SRP)

Recycling SRF Authorization SRP Approval (tacit?)

Flag State (Administration)

Recycling State (Competent Authority)

Port State Control / Flag State / RO

Control of ICIHM
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Control and Enforcement for Ships

Issuance and Endorsement of Certificates

Renewal survey
R11.5 (valid max 5y)

Initial Survey

Renewal Survey
R11.3-4

5y

5y

IRRC Cert. valid 3 months Final Survey (IHM + IRRC)

Additional Survey
R11.2

Certificate Validity Period

(max 5 years)

Certificate Valid X years

extended R11.6
3 months 3 months

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Control and Enforcement for Ships

Flag State (Administration) ships must comply with the Convention no more HazMat (App.1) installation Recycling State (Competent authority) SRF must comply with the Convention SRFs must be authorized

Party

N onon - Party

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Conclusions
Recycling demand is high preparations have to start soon (ships >500GT) Act preventively for:
being in line with own code of ethics show good practice and responsibility not becoming target of blame & shame game avoidance of detentions, financial loss, legal actions Attractive solutions are available

Planning ahead ensures:

cost-effectiveness smooth preparations

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