Wirana says extra Indian documentation checks could make it harder for sanctioned and dark fleet tankers to enter Alang recycling yards
India’s decision to add documentation checks before end-of-life vessels are cleared for recycling could make it harder for sanctioned ships using false papers to enter recycling yards, according to ship cash buyer Wirana Shipping.
Wirana Shipping said the Directorate General of Maritime Administration had introduced an additional documentation review process that it believes will deter vessels arriving for recycling with fake documents.
The company linked the move to concerns over the so-called dark fleet.
It said recent reports had suggested the number of vessels using fake documents had risen sharply and cited the International Maritime Organization secretariat as having identified 529 vessels operating with false, fraudulent or misused registration documents.
Wirana said many of these vessels would need to be recycled sooner rather than later because of their age.
It also said more vessels from the dark fleet could move toward recycling as a result of what it described as a major shift in US sanctions on Venezuela, with a selective roll-back strategy that had eased restrictions in the oil and gas sector.
Wirana Shipping chief executive officer Rakesh Khetan said, “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.”
The company said it had previously raised concerns that sanctioned vessels were creating problems for recyclers buying what it called clean vessels, because those recyclers could not compete with ships sold at much lower prices.
Mr Khetan said, “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 can get clearance in India if genuine flag states and insurance companies accept business for sanctioned vessels”.
Wirana said India remains one of the world’s main ship recycling destinations, supported by experienced yards and established infrastructure.
It said the extra checks should help recyclers that work only with non-sanctioned vessels remain viable.
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