Brazil mulls stricter rules on selling ageing ships to dubious scrapyards
Brazilian regulators are planning to strengthen rules to prevent exporters such as Petrobras and Vale from selling ageing ships to buyers who offload the vessels in South Asia’s controversial coastal scrapyards. Earlier in August, authorities decided to develop a legal framework to ensure former Brazilian ships did not end up with recyclers notorious for using dirty and dangerous methods, federal environmental watchdog Ibama said by e-mail. Brazilian companies could face fines of as much as 10-million reais ($3.2m) if Ibama finds they violate international standards by letting their vessels end up in substandard shipbreaking facilities in India, Pakistan and Bangladesh. By selling ships to buyers who then send them to South Asian beaches for dismantling, the two Brazilian exporters aren’t alone. But Vale — which sold two vessels that were sent to India this year and intends to offload four more — is one of the few mining companies that still owns its fleet, while other oil producers...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.