Sub-sectoral Environmental and Social Guidelines: Shipbuilding and ab0cd Shipyards

PROCESS DESCRIPTION manufacturing and maintenance shops, a galvanising operation and wastewater treatment, This guideline focuses on the shipbuilding paint shop, various materials stores, boiler processes and shipyards. This includes facilities house, compressors and gas production. (wet and dry docks, marine railways, design yards) which fabricate and dismantle floating The guidance outlines the processes, resources vessels for inland and marine use vessels. and materials used during the construction process; the facilities and services needed to The main inputs at shipyards are steel plate, enable the outputs and their environmental energy and labour. Large quantities of steelwork context. Shipyards use a varied range of services may be stockpiled, prior to shot blasting to for new vessel construction; hull cleaning and de remove oxidised layers and application of primer commissioning. coat. The activities can occur in the open air or in purpose built facilities. There is likely to be a Investment in shipbuilding varies internationally press shop and a building dock where large with some regions investing heavily, others sections of hull are assembled. divesting and outsourcing. Typically, shipyards produce and build only 20-30% of the value of The vessel is then transferred to another berth each vessel by themselves, the rest produced and for fitting operations to be completed. These installed by suppliers, subcontractors and activities typically occur on the seaward side of turnkey suppliers. the yard. The industry is under close regulatory scrutiny and faces compliance requirements related to hazardous wastes, wastewater, stormwater, and air emissions generated by vessel construction, maintenance and repair activities

Shipyards are usually located in environmentally sensitive areas.

KEY ENVIRONMENTAL, HEALTH AND SAFETY RISK/LIABILITY ISSUES

Water Pollution

Oil spills during fitting operations may contaminate the waters surrounding the shipyard. Runoff water is likely to capture oils and debris that has accumulated on the dock area.

The bottoms of vessels that have prolonged The remaining area of the shipyard will support seawater contact commonly are coated with ancillary activities including tank farms, "anti-fouling" paints containing chemicals that

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inhibit the attachment of fouling organisms to disposal of grit a critical economic and hulls. The active ingredients commonly found in environmental issue for shipbuilding and repair anti-fouling paints are metal-based such as facilities. Air, drainage systems and coastal cuprous (copper) oxide or tributyltin (TBT). The waters are vulnerable to contamination from the pesticides are harmful to many types of marine process. life as well as fouling organisms. Metals can enter the water through discharge of anti-fouling Solid Waste paint chips and paint removal materials during vessel maintenance activities. TBT is now Spent grit needs to be tested for toxicity. If it is banned globally but still remains as a hazardous regarded as toxic, it must be managed and substance on the hull of older vessels and is a disposed of as hazardous waste. The likelihood concern during maintenance and servicing of that grit will fail the tests depends on how it has hulls in shipyards. been used. Grit that has been used to remove anti-fouling bottom paints is more likely to fail Waste water the tests than grit that has been used to strip topside surfaces. Galvanising and other metal preparation baths will discharge acid/alkali and metals laden Sludge from waste water treatment, possibly waters. Water used in cleaning processes will with a heavy metal content, will need to be also require treatment. Waste water treatment disposed through licensed contractors. will be carried out either in a purpose built waste water treatment plant or will discharge to a Hazardous Materials municipal waste water treatment plant. In either case it is likely that water quality conditions are Solvents are commonly used to formulate both defined, possibly in a permit. bottom paints and coatings used for topside applications such as corrosion resistance. Air Emissions Solvents are sources of hazardous waste and of volatile organic compounds (VOCs). These Smaller vessels can be worked on beneath shop compounds are hazardous air pollutants. roofs, but larger vessels are worked on in open areas; on floating dry-docks or marine railways. Hazardous materials, such as solvents, present a Blasting grit used in shipyards typically is a slag, health and safety risk if incorrectly handled, a by-product of ferronickel production. The stored and disposed of. constituents of blasting grit vary, but in general include oxides of silicon, iron, aluminium and Liquid Wastes calcium. Some grits also may contain oxides of zinc and magnesium, and trace amounts of • Wash water, oily water from bilges and tank copper, titanium, sulphur, and oxides of cleaning, and engine fluids such as oil, potassium and sodium. hydraulic fluids, lubricants, and anti-freeze are among the waste liquids generated by Paint stripping jobs require varying amounts of during maintenance shipyard activities. grit. Stripping 280m2 of hull surface area, for example, may require an estimated 60 tonnes of • Fuelling facilities are another potential grit. The large quantities make management and generator of waste liquids. Hydrocarbons,

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glycols and other pollutants in these liquids Poor management of materials, waste and can come into contact with waterways and discharges from production presents a potential aquatic life through spills and leaks from risk of soil contamination. Heavy metals and storage tanks. accidental discharges from spills and storage tank leakages may also contaminate groundwater Noise in areas where soils beneath the site are permeable. Pneumatic hammers, gouging tools and chipping machines are sources of significant noise Contamination could arise from deteriorating exposure in shipyards. drainage networks.

Falls from height Radiation

Falls from height occur on shipyards while Some key workers, especially those associated vessels are being constructed. with submarine facilities, work with radioactive substances. Some cases of leukaemia, lymphoma, and lung cancer have been known to Falling objects occur due to poor site radiation control protection and management practices. As vessels are being constructed in many levels falling objects are a hazard. In addition, Polychlorinated Biphenyls (PCBs) and personnel can be hit by falling/moving objects Asbestos during fabrication where failure of fixtures and conveyance gantries can occur. • PCBs are a group of substances which are good electrical insulators. Typically, PCBs Confined spaces may be present as constituents of hydraulic oils or dielectric fluids in electrical Many areas on a vessel are designated as switchgear, transformers and fluorescent light confined spaces, which can result in vapour starters. build up. • Asbestos has been used on a large scale for Slips, trips and falls many years as a fire proofing and insulation material and may be encountered in a wide There is a high incidence of slips, trips and falls range of forms including asbestos cement at shipyards as a result of uneven surfaces, boards, as fire retardant gaskets in pipework unsteady walk ways and wet decks. and as fire retardant insulation around boilers and furnaces.

OTHER POTENTIAL Particular attention should be given to ENVIRONMENTAL AND HEALTH refurbishment of vessels constructed before the AND SAFETY RISKS/LIABILITY ISSUES 1980’s.

Ground Contamination

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Machinery FINANCIAL IMPLICATIONS

All equipment should have safety guarding and • IMO is focusing on global regulations workers should be issued with appropriate (2009) for the design, construction, personal protective equipment to protect against operation and preparation of ships to unavoidable sharp items and edges. Particular facilitate safe and environmentally sound attention should be paid to metal cutting recycling, without compromising the safety equipment. and operational efficiency of ships. They will be establishing an appropriate enforcement Inhalation mechanism for ship recycling, incorporating certification and reporting requirements. Use of solvents in the process, creation of dust Ships sent for recycling will be required to during shot blasting, machining and welding undertake an inventory for hazardous activities can result in respiratory disease. materials. The new regulation will prohibit or restrict the use of certain hazardous Occupational Dermatitis materials in shipyards. Shipyards converted to ship recycling yards will be required to This can occur as a result of contact with have a ship recycling plan antioxidants, chromates and solvents. • New ships constructed after this regulation KEY SOCIAL, LABOUR AND will have to de designed for deconstruction COMMUNITY RISK/LIABILITY ISSUES and recycling

Noise, odour and dust • The visual and olfactory impact of oily water releases could result in compensation for Noise, odours and dust can cause nuisance loss of income and long-term damage and issues for neighbours of the shipyard. degradation of impacted infrastructure including restaurants, hotels, industries Recreational activities abstracting water for processes, marinas, private home owners, and compensation of Impact on recreational use of river banks, fishing industry for loss of fish stock and shorelines, coasts and wetlands include destruction of equipment. interference with recreational activities such as angling, boating, diving and bathing and walking • Injuries may lead to increased payroll costs due to the health and safety risks oily water to replace skilled workers and lost presents to river bank, coast, wetland or production time; shoreline. • Capital investment may be required to Migrant Labour comply with new environmental, health and safety requirements; Shipyards might attract the skills associated with migrant labour. • Fines, penalties and third party claims may be incurred for non-compliance with environment, health and safety regulations.

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IMPROVEMENTS • Regular inspection should be carried out of all bulk containment on site to prevent • Development of an innovative method to leakage and product loss; safely reduce the risk of toxic particulates from hull cleaning and maintenance • Provision of secondary spill containment for activities which, would greatly improve bulk storage tanks and silos; occupational health and safety, increase productivity and decrease overall cost. • Good housekeeping should be maintained at all times in all areas; • Wash wastewater treatment facility to reduce contaminant loading and potential release Health and Safety Improvements into watercourses and drainage systems. Have closed drainage systems on site. • Provision of personal protective equipment (PPE) that is fit for the task to prevent injury • Consider application of TBT removal and maintain hygiene standards. Staff should methodologies to treat waste waters from be trained in the correct selection, use and ship hull maintenance discharges to reduce maintenance of PPE. PPE should be environmental risk inspected regularly and maintained or replaced as necessary; • Introduce maintenance, housekeeping, materials management and chemical and • Train workers in correct use of machinery materials inventory control practices that and safety devices; aim to minimize wastes from activities such as hull stripping and painting, dry dock and • Install mechanical lifting aids where possible marine railway maintenance, engine and rotate work tasks to reduce repetitive maintenance, and handling of hazardous activities; materials during shipbuilding and other waste liquids • Separation of people from moving equipment. Install walkways to separate • Apply closed-loop recycling for processing people from vehicles or moving parts to waste water, with oil/water separation and reduce risk of collision; waste oil reclamation • To reduce the risk of noise exposure isolate • Investigate environment friendly spent grit noisy equipment and rotate tasks to minimise recycling and disposal and the application of time spent in a noisy area over an eight hour alternative hull stripping methods such as period and provide personal protective use of high-pressure water, wetted grit, and equipment where people have to enter noisy media such as steel shot, plastic particles or areas; wheat starch. • Provide appropriate fall arrest equipment; • Note the condition of the sea around the shipyard, is there evidence of oil and/or • Install local exhaust ventilation; debris in the water;

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• Ensure a safe means of access between vessel • Is fire fighting and first aid equipment and shore to prevent falls; available?

• Restrict access to confined spaces and other • Check the age and condition of equipment, high risk areas. look for signs of wear and tear, degradation, leaks and breaks; GUIDE TO INITIAL DUE DILIGENCE SITE VISITS • Check that solid waste storage and disposal (storage equipment) is in a good condition; During the initial site visit, the issues will vary according to the specific processes being • Check that waste storage areas are clear of adopted and depending on the level of debris and that skips are covered to prevent environment, health and safety management waste escaping, for example, check that waste already introduced. While visiting the site it is containers have lids or are stored in an area important to discuss and review the following: with a roof;

• Note whether the plant discharges to water • Have the premises been inspected recently by or the municipal wastewater treatment works; the regulatory authorities for health and environment? What were their findings? • Check the condition of storage facilities for bulk raw materials; • Check for automatic safeguards on machinery to prevent accidental injury; • Note the noise and dust levels at the site to determine whether abatement equipment is • Check that wages and working hours are in use or might be required; consistent with the average for the sector and national standards; • What is the standard of “housekeeping” on site? Do areas look clean and tidy? Look for • Does the organisation have insurance in evidence of any recent spills or releases of place to cover the recall of contaminated raw materials/product. ; products? Have there been any recent product recall incidents? • Are staff wearing Personal Protective Equipment? • Have there been any recent incidents on site such as fatalities, fires/explosions, spills? Is • Check signage around the site: insurance in place to cover such incidents?

o Does it convey the health and safety • Does the business plan have line items for risks? Environment, Health and Safety improvements? o Are fire exits and/or evacuation routes clearly marked? • Check the conditions and duration of validity for all permits; o Are there demarcated routes for pedestrians and vehicles?

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• If the investment or refinancing will led to minimum, any business should be required to restructuring of the company, what will be have the following in place: the potential impacts on health and safety at the operational, employee welfare and wide • Operational procedures to manage community impacts level? environmental, health and safety risks;

• If the company plans to invest in new • Monitoring programmes; technology, what will be the impact on human resources, in particular health and • Improvement objectives, targets and project safety and employee welfare? plans;

• Check that labour standards, contracting and • Training for personnel; remuneration are in line with national law and are consistent with the average for the • Regular inspections, checks and audits with sector records to demonstrate achievement of the required level of performance against legal • Check that hours, including overtime, are requirements and improvement action; recorded and staff should receive written details of hours worked and payment • Emergency plans for environment, health received and safety accidents or hygiene non- compliance; • Has the company received inspections from the local labour inspectorate in the previous • Management review/demonstrated three years? Have these resulted in any involvement in environment, health, safety penalties, fines, major recommendation or and hygiene management. corrective action plans;

• Does the organisation have a grievance mechanism which allows employees to raise workplace concerns?

• Are employees free to form, or join, a worker’s organisation of their choosing?

Take note/ask questions relating to any activities that address the improvements listed in the improvements section of this document.

ACTION PLANS

Dependent on the individual business and nature of the shipyard/ship building activity, select appropriate improvements from the list above to include in the action plan. As a

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REFERENCES AND ADDITIONAL SOURCES

European Bank for Reconstruction and Development (EBRD). Environmental and Social Policy May 2008. Performance Requirement 2: Labour and Working Conditions. http://www.ebrd.com/enviro/ tools/index.htm

European Environmental Agency (2002) Accidental and illegal discharges of oil by ships at sea Patin, Stanislav, Dr. (2002) Off-shor environment, pollution of the sea

European Metal Workers’ Federation. (Press article) “the Turkish shipbuilding expansion: putting profits before health and safety and risking workers’ lives” 10.03.2009

European Metal Workers’ Federation FEM 34/2003 A future for the European Shipbuilding Industry: LeaderSHIP 2015 needs a commitment for immediate action

IMO (1998) Annex VI of MARPOL 73/78, Regulations for the prevention of air pollution from ships and NOx technical code IMO (2004), Prevention of pollution by sewage from ships

IMO Adopted guidelines on Ship recycling 23rd Assembly, Dec 2003

MARIN Maritime Research Institute, Netherlands (www.marin.nl)

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