The International Conference on Ship Recycling 07-09 April 2013
RECYCLECON Standard Contract for Recycling of Ships
Robert Almstrรถm, Contract Manager, Stena RoRo Representative of the Bimco Documentary Committee Chairman of the sub-committee of Recyclecon Master Mariner
RECYCLECON – Green Recycling Contract
STENA SPHERE Business Areas
RECYCLECON – Green Recycling Contract
1. RECYCLECON development and key features 2. Usage pre-and post-Hong Kong Convention 3. A ship owners view
RECYCLECON – Green Recycling Contract
The development of RECYCLECON SALESCRAP 87
DEMOLISHCON
• Sale of vessels for demolition • First standard contract of this type
• Revision of SALESCRAP 87 • Demolition & Recycling
RECYCLECON
• “Green” recycling • New contract
RECYCLECON – Green Recycling Contract
SALESCRAP 87
• Prompted by 1980s increase in scrapping • First standard contract for the sale of vessels for demolition • Alternative to SALEFORM
RECYCLECON – Green Recycling Contract
DEMOLISHCON
• A modern and dedicated contract
• Endorsed by IMO in 2003 • Perhaps too focused on Indian market
RECYCLECON – Green Recycling Contract
RECYCLECON - revision
• DEMOLISHCON revision • Pros and cons • Revision abandoned
RECYCLECON – Green Recycling Contract
RECYCLECON - contract
• Green recycling • Niche market, currently less than 5% • IMO Hong Kong Convention
RECYCLECON – Green Recycling Contract
RECYCLECON - challenges
• International vs regional legislation • State infrastructure • Beaching
RECYCLECON – Green Recycling Contract
RECYCLECON - aim Preamble – “…an undertaking to recycle the Vessel in a safe and environmentally sound manner consistent with international and national law and relevant guidelines”. • Voluntarily bound to HK Convention to extent possible • Clearly worded and balanced provisions • Reflects “green” commercial practice
RECYCLECON – Green Recycling Contract
The flow of RECYCLECON Delivery and completion Ship Recycling Plan • Seller can exercise control • Right to visit the SRF
Inventory of Hazardous Materials • Part I before giving a price • Without guarantee (Cl. 18) • Outright sale (Cl. 2)
• Preparation and notice • Statement of completion
RECYCLECON – Green Recycling Contract
RECYCLECON – a practical solution • Niche contract for green recycling • International focus • Synergy with SALEFORM 2012 • First published April 2012
RECYCLECON Standard Contract for the “Green” Recycling of Ships
Thank you