MARAD Contracts Factsheet

In response to the amount of incorrect statements made in media coverage in relation to the MARAD Ships Recycling Contract which ABLE have been awarded, to clarify the situation in order to avoid any misunderstandings and to stop the scaremongering, please note below a summary of the main facts:-

1. The MARAD contract is a one client contract on a very similar basis to all of the contracts that ABLE have previously undertaken on Teesside for recycling offshore platforms. (Note: ABLE have satisfactorily received, remediated and recycled more than 50 structures at TERRC in the last seven years).

2. The Main Contract is for 15 No. Ships - 13 No. Ships are to be recycled and 2 No. ships are part-built (probably be completed for reuse).

3. Prior to being awarded the contract, ABLE were satisfactorily audited in-depth by MARAD and the US Environmental Protection Agency.

4. ABLE/TERRC have satisfactorily undergone extensive environmental audits by international clients and their external advisors.

5. ABLE/TERRC facility was approved to receive, remediate and recycle the Brent Spar, which had more waste than these ships.

6. ABLE and TERRC have all permissions and licences necessary to receive, remediate and recycle the MARAD ships.

7. TERRC has an Environmental Waste Management Licence and is audited by the Environment Agency.

8. TERRC provides the Best Practicable Environmental Option (BPEO) available for ship recycling.

9. TERRC is probably the most environmentally friendly facility available to remediate and recycle ships in the world.

10. The asbestos is buried in the Group’s own licensed landfill, which is adjacent to TERRC.

11. ABLE have a 30-year history of successfully performing this type of operation.

12. The ships are auxiliary ships and not warships.

13. There are no cargoes on the ships.

14. The ships are not full of toxic materials.

15. There are no liquid PCB’s on the ships.

16. In excess of 98% will be reused or recycled. To date we have achieved 98.4% for all structures received at TERRC.

17. None of the ships will be moored offshore.

18. 4 No. ships will be delivered in 2003 to ABLE’s recycling facility ‘TERRC’ in Hartlepool UK before the end of November.

19. The 4 No. ships will be delivered directly into TERRC wet basin.

20. After each delivery of ships into the wet basin an oil boom will be placed across the basin entrance purely as a precaution to ensure that in the event of any leak it would be contained within the wet basin.

21. These 4 No. ships will be remediated and recycled during 2003/2004.

22. During the third quarter of 2004, a further 9 No. ships will be delivered to TERRC to complete the recycling contract.

23. The 9 No. ships will also be delivered directly into the wet basin and the oil boom will be placed across the basin entrance purely as a precaution to ensure that in the event of any leak it would be contained within the wet basin.

24. The Main Contractor is PRP – Post-Service Remediation Partners LLP of USA who have the responsibility for the delivery of the vessels from the US to the UK.

25. The Sub Contractor is Able UK Ltd who have the responsibility to receive, remediate and recycle the 13 No. redundant ships.

26. The works will be carried out at ABLE’s TERRC facility, within the 25 acre wet basin / dry-dock facility (this is probably the largest dry-dock in Europe, if not, the World).

27. There will be circa 200 new jobs initially created on this facility.

28. The MARAD recycling works will be completed in approximately one year.

29. There is circa 100 tonnes of Asbestos contaminated material on each ships. Of this, circa 75% is marinite board, which is predominantly White Asbestos in a bonded format and commonly used in marine accommodation areas. The remaining 25% is typical Brown and Blue Asbestos used for lagging and insulation mainly in the engine/boiler room compartments.

30. ABLE obtained a Certificate of Exemption from the Health & Safety Executive to allow the ships to be received with small quantities of Asbestos that had been used for insulation and fireproofing on the ships.

31. There are NO known closed applications PCBs in the ships, however, there is likely to be some fixed PCBs in materials such as felt gaskets, fibre glass foam, rubber gaskets, installation gaskets, covering around electrical cables and grouting adhesives.

Information on Hazardous Wastes

Asbestos

Asbestos has been known and used for over 4,000 years, its commercial development began in the late 19th century.

Asbestos occurs freely in various parts of the world and is obtained by mining or quarrying. Asbestos is a fibrous form of hydrated magnesium silicate and of the five which occur, the 3 main industrial types are commonly known as Chrysotile (white), Amosite (brown) and Crocidolite (blue).

Under the UK law the use of Crocidolite and Amosite was prohibited in the manufacture of new products in 1985 as a result of the introduction of the Asbestos (Prohibition) Regulations 1985.

The 1985 regulations were replaced with Statutory Instrument 1992 No 3067 which came into force from 1st January 1993.

PCBs (Polychlorinated Biphenyls)

PCBs are manmade and part of a family of organochlorine chemicals that are chemically stable, fire resistant and do not generate vapours easily. They are practically insoluble in water, but are soluble in oils and fats.

PCBs were used extensively as insulators in electrical equipment such as transformers and capacitors manufactured between 1976 and 1986.

PCBs have also been used as plasticisers, sealants, gaskets, etc.

PCBs are not considered to be acutely toxic to humans (Environment Agency Guidance Notes on Disposal of PCBs and Dangerous Substances 2000), however, they can cause a skin condition called Chlorance and can also cause harm to animals by damaging their liver and reducing their levels of immunity. According to the UK Environment Agency Guidance there is inadequate evidence to suggest that PCBs cause anything other than Chlorance.

PCBs come in two types of applications:-

The majority of people are probably living with Open Application PCBs in their everyday life. All products pre 1972 such as rubber seals, which seal cars doors etc and cover electrical cables, are just examples of how PCBs are commonplace. The facts are that PCB use in such open applications was not banned until 1972 and it is therefore possible that any rubber and plastic type product may have been manufactured using PCBs.

A recent survey carried out by the Food Standards Agency reports that more than 90% of human exposure to dioxin like PCBs occurs through food, this exposure thought to be attributed to the emissions of OLD incinerators (Ends Report August 2003).