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NGO Shipbreaking Platform: 90 Pct of Tonnage Scrapped on South Asian Beaches

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… Hyundai Heavy Industries intensify Talks to Buy DSME***

A total of 744 large ocean-going commercial vessels were sold to the scrap yards in 2018, out of which 518 were broken down on South Asia beaches, accounting for a record-breaking 90.4% of the gross tonnage dismantled globally, data from NGO Shipbreaking Platform shows.

“The figures of 2018 are shocking. No ship owner can claim to be unaware of the dire conditions at the beaching yards, still they massively continue to sell their vessels to the worst yards to get the highest price for their ships. The harm caused by beaching is real.

“Workers risk their lives, suffer from exposure to toxics, and coastal ecosystems are devastated. Ship owners have a responsibility to sell to recycling yards that invest in their workers and environment,” Ingvild Jenssen, Executive Director and Founder of NGO Shipbreaking Platform, said commenting on the figures.

Last year, at least 34 workers lost their lives when breaking apart the global fleet, the platform said. At least 14 workers died in Alang, making 2018 one of one of the worse years for Indian yards in terms of accident records in the last decade. Another 20 workers died and 12 workers were severely injured in the Bangladeshi yards. In Pakistan, local sources confirmed 1 death and 27 injuries. Seven injuries were linked to yet another fire that broke out on-board a beached tanker. 

Data from the platform shows that United Arab Emirates (UAE), Greece and the US top the list of country dumpers in 2018.

UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2018 – 61 ships in total. Greek owners beached 57 vessels out of a total of 66 sold for demolition, while American owners closely followed with 53 end-of-life vessels broken up on South Asian tidal mudflats.

The platform’s 2018 figures show that the ‘worst corporate dumper’ was the South Korean liner Sinokor Merchant Marine. The company sold 11 ships for breaking on the beaches in 2018: eight vessels ended up in Bangladesh and three in India.

Norwegian Nordic American Tankers (NAT) last year reported profit of USD 80 million from the sale of eight vessels for breaking. Three were sold to Alang for breaking and five were sold to breakers in Chittagong.

According to local sources in Bangladesh cited by the platform, the cutting operations of these ships started without required government authorisations. The sale of two additional vessels to yards in Bangladesh with particularly poor track records and where two workers were killed in 2018, prompted Norwegian pension fund KLP to blacklist the company.

Other known shipping companies that in 2018 sold their vessels to breaking yards include: Chevron, Costamare, H-Line, Louis plc, Seabulk, Sovcomflot, Teekay,  German owner Dr Peters GmbH & Co KG,Zodiac Group and CMB.

Furthermore, the platform has documented an increase in offshore units that have gone for scrap. Out of the 138 oil and gas units which have been identified as demolished in 2018 alone, 96 ended up on the beaches of South Asia. Figures include 81 small-sized tug/supply ships and 33 semi-submersible platforms.

Ship owners are facing increased pressure from investors and credit providers to stop selling their ships to beaching yards. In early 2018, Scandinavian pension funds KLP and GPFG were the first to divest from four shipping companies due to their beaching practices. Today, banks, pension funds and other financial institutions are actively taking a closer look at how they might contribute to a shift towards better ship recycling practices off the beach, taking into account social and environmental criteria, not just financial returns, when selecting asset values or clients.

Losing financing and clients, however, should not be the only concern of ship owners, as they can be held criminally liable such practices.

“Clean and safe solutions are already available. Responsible ship owners, such as Dutch Boskalis, German Hapag Lloyd, and Scandinavian companies Wallenius-Wilhelmsen and Grieg, recycle their vessels off the beach. The EU maintains a list of clean and safe ship recycling facilities. More ships need to be diverted towards these sites.”

Nicola Mulinaris, Communication and Policy Officer at NGO Shipbreaking Platform, said.

In the meantime, South Korea’s “Big Three” shipbuilders may soon become the “Big Two,” as Hyundai Heavy Industries (HHI) has reportedly expressed interest in taking over state-owned Daewoo Shipbuilding and Marine Engineering (DSME). The move would consolidate HHI’s position as the top South Korean shipbuilder and create a new industry giant. 

DSME experienced severe financial distress during the shipbuilding downturn in 2015-2017. After a series of government bailouts and debt-for-equity swaps, its biggest lender became its biggest shareholder. State-run policy bank KDB now owns a 55 percent majority stake in DSME, and it is reportedly in talks with HHI for a sale. KDB is expected to consider a formal offer from HHI at a board meeting scheduled for March 31. “It is not the stage where we can unveil specifics,” an official at Hyundai Heavy Industries told Yonhap – though more details may emerge at HHI’s next earnings call, which is scheduled for tomorrow.

The Korean government has stated its intention to find a buyer for DSME since 2017, and the Wall Street Journal reports that HHI has been in talks with KDB for a purchase for about one year. DSME’s CEO, Jung Sung-leep, has already signaled that he is positioning his firm to be sold, and he has endorsed a “Big Two” organizational structure for the Korean shipbuilding market. “I will focus on making Daewoo Shipbuilding a small but firm company ahead of a sale,” Jung said at a press conference last November.

A combination of DSME and HHI would be better-positioned to compete with Chinese rivals, notably state-owned conglomerates CSSC and CSIC. Taken together, these two companies have annual revenues of more than $75 billion – more than the total for Korea’s “Big Three” shipbuilders combined. 

World Maritime News with additional report from Maritime Executive

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NNPP: Clergyman Predicts Peace, Stronger Party

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NNPP: Clergyman Predicts Peace, Stronger Party

…As NAGAFF Members seek God’s Intervention over intractable party Crisis

A clergyman, Pastor Joel Uzor, has predicted a new era of peace and the emergence of a stronger New Nigerian Peoples Party (NNPP) following divine intervention, sequel to bouts of selfless prayers by members of the National Association of Government Approved Freight Forwarders (NAGAFF), on Thursday.

The faithful NAGAFF members on Thursday defied the heavy downpour, to sincerely seek the face of God, and pray that the crisis rocking their party will soon end, and the party should get stronger in the future.

Speaking during the prayer session organized by NAGAFF members for the survival of NNPP, Pastor Uzor stressed that enemies of the party will soon give way for genuine members, and this will lead to a stronger and better NNPP.

The clergyman, who presides over the Rock of Evidence Assembly, emphasized the importance of prayer in overcoming the crisis, citing relevant scriptures to support his message.

Dr. Boniface Aniebonam

He prophesied that NNPP would emerge stronger from the crisis, with those bent on destroying the party leaving peacefully without troubling genuine members.

Pastor Uzor described the controversy as a prolonged disagreement between two or more parties, citing examples from the Bible, including the story of Abraham and Lot.

 He also encouraged NAGAFF members to pray fervently for God’s intervention towards not only a peaceful political party. but even a peaceful Nigeria.

Dr. Boniface Aniebonam, Founder of NAGAFF and NNPP, also spoke at the event, describing the association as a prayerful group. He lamented the internal crisis in NNPP, saying it is uncalled for, and emphasized the need for God’s intervention to achieve the desired peace.

The crisis has brought together, concerned members of the business community with the political membership of the party, in going spiritual; and praying for peace and stability in the party.

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NNPP Crisis: Freight Forwarders Defy Rain To Pray For Peace

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NNPP Crisis: Freight Forwarders Defy Rain To Pray For Peace

The grey line between Commerce and Politics further blurred on Thursday as Members of the National Association of Government Approved Freight Forwarders (NAGAFF) defied a heavy rain to offer prayers for peace in the New Nigeria Peoples Party (NNPP).

Crisis hit the maritime people’s dominated party, the NNPP, following the alleged attempt by its former Presidential flag, Rabiu Kwankwaso, his alleged expulsion from the party, and the subsequent cacophony of allegations and counter allegations, plunging the freight forwarders’ pride into internal crisis.

The prayer session, led by the Chairman of the Board of Trustees of the association, Mr Chidiebere Enelaman, was held at the NAGAFF Headquarters in Apapa, Lagos.

Enelama said that the association decided to hold the prayers because of its close ties with the party, its brainchild which was founded in 2002 by NAGAFF’s founder, Dr Boniface Aniebonam.

“Almost all NAGAFF members are members of the NNPP. The party was formed not only to win elections in Nigeria but to propagate issues that would be favourable to the Maritime sector.

“It is sad to watch the ongoing internal wrangling and not intervene.

NNPP CRISIS: NAGAFF Goes Spiritual, Organizes Prayer Session To Entrench Peace

“We believe so much in the power of the Almighty and we believe He will restore peace to the NNPP,” he said.

The chairman said that the prayers were a response to the internal crisis brewing within NNPP, particularly concerning the expulsion of Sen. Rabiu Kwankwaso, the party’s 2023 Presidential Candidate, due to alleged anti-party activities.

“NAGAFF as the parent body of the NNPP, under the leadership of Aniebonam, shall continue to appreciate and remember the role played by Kwankwaso in the last presidential elections.

“We hope that God shall intervene in the internal wranglings of the NNPP and also give Kwankwaso the wisdom to retrace his steps in the issues concerning NNPP and his role therein,” he added.

Also speaking, Aniebonam said that prayer remains the key to resolving issues.

He narrated how seeking divine intervention had worked for NNPP in the past during the challenging Kano State governorship election.

Aniebonam noted that the association remained hopeful that God would once again intervene and bring peace to NNPP during the period of internal discord.

“When the odds were against the party in the Kano State governorship election at the tribunal and appeal court, we ran to God for intervention at the Supreme Court and He answered.

“It is our hope and belief that God will answer us again at this trial period of internal crisis. We shall forge ahead to elect a great leader in Nigeria at God’s time.

“As founder and life member of the NNPP board, it is my greatest desire to see peace reign and for the splinter group to retrace its steps.

“I’m a father to all and I sincerely believe that God will hearken to our prayers,” he added.

The prayer session was officiated by Pastor Joel Ozor of the Rock of Evidence Assembly in Ojo, Lagos.

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Ease of Smuggling Ends on Adamawa/ Taraba Axis, As Bashir Efforts Yield Fruits

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Ease of Smuggling Ends on Adamawa/ Taraba Axis, As Bashir Efforts Yield Fruits

The ease of smuggling on the Taraba axis may be temporarily over, as a drive by the Nigeria Customs Service NCS to thwart illicit trading has begun to yield outstanding results.

The new Adamawa/ Taraba Area Command Controller, Garba Bature Bashir confirmed this, highlighting that, only two weeks under his leadership, the Command had recorded five incidents of interception of over N10 million worth of petrol (Premium Motor Spirit PMS) snoozing its way, to the neighbouring Country, Cameroon Republic. 

 “In the past two weeks, our drive to thwart smuggling rings in this command has produced outstanding results. The success recorded so far could invariably predicated on the synergy, robust border management, intelligence sharing and unwavering efforts of our operatives”, Comptroller Garba Bashir stated, noting that a key item, petrol was on its way to Cameroon.

“The Command Officers while on anti-smuggling operations along the Command frontiers within two weeks under my leadership had recorded five (05) incidents of interception of Premium Motor Spirit (PMS) on its way to the neighbouring Country, Cameroon Republic. 

“The intercepted and seized PMS plus the Means of Conveyance hereinafter are Valued at Ten   Million, eight hundred and seventy-one thousand, four hundred and ninety-six naira and twenty-five Kobo only (N10,871,496.25) as the Duty Paid Value (DPV)”, Bashir also said.

Pointing out that while no suspect was apprehended during the Operations because the suspects abandoned the items and absconded in an attempt to circumvent arrest, the Command remains undaunted and committed to its anti-smuggling mandate.

“The seized items include the following:

i.​12,435Litres of Premium Motor Spirit (PMS) packed in 491x25L and 8 x 20L Jerry Cans.

ii.​one used Mitsubishi truck -Means of conveyance of the PMS and

iii.​One used Motor Cycle – the Means of Conveyance of the PMS.

“The seizure of these items is in line with sections 150 and 248 of the Nigeria Customs Service Act 2023 and considering the facts that the Command’s territorial borders are officially closed. 

“However, due to the inflammable nature of these PMS, it will be auctioned immediately after this briefing following the standard operating procedure (SOP) and as enshrined in section 119 of the Nigeria Customs Service Act 2023 and the proceeds accrued remitted into the Federation Account accordingly.

“Smuggling activities had done more harm than good to the nation. It hinders our national growth and strangles our trade policies concerning revenue, foreign investment, preservation of domestic trade and growth, food security and public security. 

“Smuggling networks are often connected to diverse illicit activities, such as money laundering, terrorism financing and human trafficking, which can disrupt national security and the rule of law.

“The Nigeria Customs Service, Adamawa/Taraba Area Command on this point, will never give up in its fight against the menace of smuggling until the command is purged of it. 

“We want to unwaveringly tell the smugglers that our operatives are strategically repositioned along the borderlines to fasten their exit out of this illicit business”, he further said, advising the illicit traders to renounce economic sabotage and illicit trade into and out of the Command’s territorial borders, and adopt legitimate business, as the Command Operatives will not rest on their oars until we stamp out smuggling across all the command borders.

“To the border Communities and the patriotic Nigerians, we solicit your partnership in the area of providing timely intelligence that can aid our operations in getting rid of this economic scourge from our nation. 

“To the transporters and oil marketers to be vigilant and patriotic to deny these smugglers a supply chain. And to the Media Personnel, please do increase awareness campaign to educate the general public on the dangers and negative impacts of smuggling on our socio-economic development.

“Finally, we attributed these huge successes recorded so far to the unwavering support and encouragement of the management of the Nigeria Customs Service under the tenacious leadership of Bashir Adewale Adeniyi MFR, who has continued to give all the required backup and supply chain for our smooth anti-smuggling operations. 

“We wholeheartedly appreciate his unrelenting drive for service advancement”, Bashir stated, stressing the combined, cooperative advantage of all the Customs Units, which comprise the CIU, FOU, SIS, Valuation, ICT; and the synergy with other security agencies as well.

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