Print
PDF
India tightens checks on vessels entering recycling yards
India’s decision to introduce additional documentation checks before end-of-life vessels are cleared for recycling could curb the use of fake documents among ships operating in the so-called ‘dark fleet’, according to leading vessel cash buyer Wirana Shipping Corporation.
The recent decision by the Directorate General of Maritime Administration (DGMA) to strengthen documentation checks is expected to act as a deterrent to ships attempting to enter recycling yards with fraudulent paperwork.
Recent industry reports suggest the number of vessels using fake documents has increased substantially due to the growth of the ‘dark fleet’. The International Maritime Organization (IMO) secretariat has identified 529 vessels operating with false, fraudulent or misused registration documents.
Wirana says many vessels within the dark fleet will need to be recycled sooner rather than later because of their age. Company CEO Rakesh Khetan observes: “We are seeing sanctioned ships making their way to ship recycling facilities in Alang, India, and this has been possible to a certain extent with fake or altered documentation. Even though banks in India do not work or affect bank fund transfers for sanctioned vessels, there is no regulation that specially bans sanctioned vessels from being recycled in India.”
Wirana Shipping has repeatedly raised concerns that allowing sanctioned vessels into the recycling market creates major challenges for ship recyclers purchasing compliant vessels, as they are unable to compete with sanctioned ships sold at significantly lower prices.
Khetan argues that if the practice continues, the ship recycling sector in Alang could gradually be undermined. “An additional check on documents being submitted for incoming vessels for recycling will surely make it difficult for vessels with fake documents to pass through,” he added. “But there will still be cases where a sanctioned vessel is able to get clearance in India if genuine flag states and insurance companies accept business for sanctioned vessels.”
India remains one of the world’s main ship recycling destinations. These steps by DGMA will help ensure that ship recyclers working only with compliant vessels are able to survive, Wirana concludes.
