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Analysis of Ship Breaking and Recycling Capacity in Canada

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Analysis of Ship Breaking and Recycling Capacity in Canada Vard Marine Inc. ANALYSIS OF SHIP BREAKING AND RECYCLING CAPACITY IN CANADA 321-001 Rev 4 Date: 01 March 2016 Transport Canada Place De Ville Tower C 330 Sparks Street Ottawa, Ontario K1A 0N5 This report is the property of VARDTM, and it must not be copied or any information received in appurtenant with the report imparted to any third party without written consent. The receipt of the report implies that the conditions as mentioned herein are accepted. ANALYSIS OF SHIP RECYCLING CAPACITY IN CANADA Report No.: 321-001 Title: Analysis of Ship Breaking and Recycling Capacity in Canada VARD Contact: Andrew Kendrick Tel: (613) 238-7979 x201 Email: [email protected] SUMMARY OF REVISIONS Rev Date Description Prepared by Checked by 0 10 Aug 15 PRELIMINARY DRAFT MT AK 1 21 Sept 15 REVISED DRAFT MT AK 2 5 Nov 15 FINAL MT AK 3 12 Nov 15 REVISED FINAL – ACCEPTED MT AK 4 1 Mar 16 DISCLAIMER ADDED MT AK DISCLAIMER Transport Canada commissioned Vard Marine Inc. in 2015 to undertake an analysis of ship breaking and recycling in Canada. The purpose of the study was to gain a better understanding of the current recycling capacity in Canada, for both large and small vessels. Please note that the opinions expressed in the report do not necessarily reflect those of Transport Canada, and the list of facilities identified in the report is not intended to be complete, but rather an illustration of the variety and type of capacity that exists. Vard Marine Inc. Analysis of Ship Breaking and Recycling Capacity in Canada 01 March 2016 Report #321-001, Rev 4 ii ANALYSIS OF SHIP RECYCLING CAPACITY IN CANADA EXECUTIVE SUMMARY This study has been undertaken to explore: 1. the existing and potential capacity for ship breaking/recycling in Canada for small and large vessels; and 2. the factors influencing domestic shipowner decisions on when and how to dispose of vessels The work was undertaken using literature surveys, targeted questionnaires, and discussions with selected stakeholders. For the purposes of the study, the threshold between “large” and “small” vessels was set at 100 gross tons. Above this size, almost all vessels are commercial (or government) ships, with steel hulls. There are approximately 2700 vessels over 100 gross tons in the Canadian Large Vessel Registry. In contrast, there are estimated to be over 4 million small vessels. Some of these are commercial, including fishing vessels, tugs, small ferries, etc. Most however are recreational. The great majority have fibreglass (GRP) hulls, with some of the larger vessels being steel, wooden, and (occasionally) aluminum. A small number of large vessels are disposed of in Canada in any year. There is sufficient capacity in most regions of the country to handle these disposals by shipbreaking and associated recycling of some of the materials; however, the economics are unattractive for most owners. The labour and other costs for domestic disposal are high compared with international shipbreaking, and the prices paid for recyclables such as scrap steel are low. As a result, domestic shipbreakers can only compete where the costs and inconvenience of an overseas disposal outweigh these other cost factors. Also, in many cases Canadian owners prefer to sell ships approaching their end of life to other operators, disposing of their own disposal problem in the process. A large number of small vessels are disposed of in any year, estimated as somewhat over 40,000. There is little infrastructure tailored to their disposal. To date fibreglass cannot be recycled in a cost-effective manner. As a result, hulls will generally end up in landfills, though some equipment and components are more recyclable. A significant number of small vessels become derelict every year after abandonment by owners who are either unaware of or unprepared to pay for more responsible disposal options. Abandonment is perceived as being a major issue by many on the West Coast; less so in other areas of Canada, though some stakeholders in all areas of Canada do see this as a concern. Winter haul-out in many Canadian waterways greatly reduces the number of small craft which are abandoned while afloat, these being vessels that are most likely to be seen as eyesores or obstacles. Shipbreaking and small vessel disposal are regulated by Canadian and provincial environmental and health and safety legislation, which imposes strict controls on the disposal of hazardous waste and on working conditions for those involved. For large vessels, efforts are ongoing internationally to develop appropriate norms but shipbreaking in some leading countries continues to be seen as dirty and dangerous. Vard Marine Inc. Analysis of Ship Breaking and Recycling Capacity in Canada 01 March 2016 Report #321-001, Rev 4 iii ANALYSIS OF SHIP RECYCLING CAPACITY IN CANADA Currently, Canada has limited federal and no real provincial legislation which targets the responsible disposal of large or small vessels at end-of-life. For example, owners have the obligation to undertake wreck removal, or to pay for costs incurred. However, the government’s powers are limited, and are rarely invoked or enforced. This was a concern expressed by many stakeholders contacted during the project. The problem of vessel disposal is not unique to Canada, and does not appear to have been completely solved in any country. A number of US states have instituted measures aimed at both the prevention and remediation of vessel abandonment, with varying levels of success. Vard Marine Inc. Analysis of Ship Breaking and Recycling Capacity in Canada 01 March 2016 Report #321-001, Rev 4 iv ANALYSIS OF SHIP RECYCLING CAPACITY IN CANADA TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................ III 1 INTRODUCTION ......................................................................................... 1 1.1 SCOPE OF WORK ...................................................................................................... 1 1.2 METHODOLOGY ....................................................................................................... 2 2 REGIONAL FACTORS .................................................................................. 3 2.1 EAST COAST .............................................................................................................. 3 2.2 CENTRAL CANADA .................................................................................................... 3 2.3 PRAIRIES AND THE NORTH ....................................................................................... 4 2.4 WEST COAST ............................................................................................................. 4 2.5 SUMMARY ................................................................................................................ 4 3 INVENTORY OF BREAKAGE/RECYCLING ORGANIZATIONS ......................... 5 3.1 SMALL VESSELS – INVENTORY AND CAPACITY OF BREAKING/RECYCLING ORGANIZATIONS ............................................................................................................ 5 3.1.1 ATLANTIC CANADA ....................................................................................................... 5 3.1.2 CENTRAL CANADA ........................................................................................................ 7 3.1.3 PRAIRIES AND THE NORTH ........................................................................................... 7 3.1.4 WEST COAST ................................................................................................................. 8 3.2 LARGE VESSELS – INVENTORY AND CAPACITY OF BREAKING/RECYCLING ORGANIZATIONS ............................................................................................................ 9 3.2.1 ATLANTIC CANADA ..................................................................................................... 10 3.2.2 CENTRAL CANADA ...................................................................................................... 11 3.2.3 PRAIRIES AND THE NORTH ......................................................................................... 13 3.2.4 WEST COAST ............................................................................................................... 13 3.3 SUMMARY .............................................................................................................. 14 4 LEGISLATION, REGULATIONS AND GUIDELINES ....................................... 15 4.1 INTERNATIONAL ..................................................................................................... 15 4.2 CANADA .................................................................................................................. 17 4.2.1 FEDERAL REGULATIONS ............................................................................................. 17 4.2.2 PRIVATE MEMBERS BILLS (C-638 AND C-695) ............................................................ 18 4.3 PROVINCIAL REGULATIONS .................................................................................... 18 4.4 SUMMARY .............................................................................................................. 19 5 LARGE SHIPS – SHIPOWNER PERCEPTIONS ............................................. 20 5.1 SCOPE ..................................................................................................................... 20 5.2 FINDINGS ...............................................................................................................
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