Marina opens ship-breaking, recycling opportunities

Marina opens ship-breaking, recycling opportunities
Genivi Factao June 10, 2020 https://www.manilatimes.net/2020/06/10/business/maritime-business/marina...

The Maritime Industry Authority (Marina) has set up a paid-up capital requirement of P25 million to P50 million for those interested to run ship-breaking and ship-recycling facilities that would support the government’s ship retirement and replacement program.

Marina Administrator Vice-Admiral Robert Empedrad recently signed Memorandum Circular on Shipyard Regulation (SR) 2020-01, which laid the rules and regulations relating to registration and licensing of ship breaking and recycling facilities and for other purposes.

Marina said a Class A ship-breaking or ship-recycling yard must have a paid-up capital of P50 million and must be capable of scrapping ships more than 80 meters in length.

They need to set up a dry-docking facility, wharf or quay, landing or beaching area. The yard should also have a waste reception facilities, sewage treatment plant, and separate storage facilities for hazardous materials.

For Class B ship breaking and recycling yard, the needed capital is P25 million and must be capable of dismantling ships 80 meters in length and below. It must have the same facilities required for a Class A facility.

The ship breaking and recycling business would bring in opportunities for ship yards and ship owners, as long as they follow the environmental sound ship dismantling.

“All necessary clearances and permits shall be secured from the relevant local authorities where the ship is located such as the Philippine Coast Guard (PCG), local government unit, port authorities, Department of Environment and Natural Resources (DENR) and Bureau of Fisheries and Aquatic Resources (BFAR),” Marina said.

Ship breaking and recycling activities must also adhere Republic Act 9295, or the “Domestic Shipping. Development Act of 2004,” and its and implementing rules and regulations (IRR) as amended and guided by the principles of the International Maritime Organization (IMO) Convention for the Safe and Environmentally Sound Recycling of Ships (HK Convention), the Basel Convention on the Technical Guidelines for Environmentally Sound Management of the Hull and Partial Dismantling of Ships, and the International Labor Organization (ILO) Guidelines on Safety and Health in Shipbreaking.

The Marina-registered ship breaking/recycling yard must submit to the agency the ship breaking, ship recycling plan (SRP) prior to the issuance of permit. An imported ship subject for breaking or recycling needs to be inspected first prior to issuance of permit.

Foreign-flagged vessels operating in Philippine waters subject for breaking/recycling must first secure a clearance from its flag state and relevant Philippine government agencies such as the Marina, Bureau of Customs and others, prior to the issuance of the required permit.

All Marina-registered ship breaking and recycling entities must undertake all operations within their registered yards.

“In case a ship is impracticable to bring to any Marina -registered ship breaking or ship recycling yard, the administration may exempt the ship from this requirement and may be allowed to perform on-site ship breaking only in case of the imminent danger,” it said.

Marina would require ship owners or ship breakers to secure a special permit for onsite ship breaking from the agency or administration.

Ship owners must ensure that appropriate insurance is in place to cover the response and liability in respect of the voyage of the ship to the ship breaking and recycling yard, including insurance coverage.