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M. ENGG. PROJECT REPORT
BY
T'
, MD. SAJDUR RAHMAN
•
1 1IIImllllllllllllllnlllllili
11'100945#
OCTOBER 2005
J,
\
ENVIRONMENTAL AND ECONOMIC COMPARISON OF
NEW STEEL AND SHIP BREAKING STEEL AS SHIP
BUILDING MATERIAL
By
Md. Saidur Rahman
'"
Nawl Architecture and Marine Engineering
October 2005
A Project Report
By
MD. SAlDUR RAHMAN
I.
Dr. KHO. SHAI-IRIAR IQBAL (Supervisor) Chairmiln
As,istant Professor
Department of Naval Architecture and Manne Engine~ring
Bangladesh University of Engineering and Technology
Dhaka - 1000, Bangladesh
" J!"",TM",,~'
~I'.MlR~ Member
Assi~tilnt Professor
Department of Naval Architeetllre and Marine Engineering
13angJadesh University of Engineering ami Technology
Dhaka - I 000, Banglade~h
3. AA-t.. ••.•.
....,L
Dr. M. HABlBUR RAHMAN Member
Professor
D~pilrtmelll of Civil Engineering
Banglad~sh University of Engineering and Technology
Dhaka - 1000, Bangladesh
Oclllb~r 2005
CER'jWICATE OF RESEARCH
Certi(y that the candidate has done this work and it was not submitted elsewhere for the
award of any degree or diploma.
Supervisor Candidate
DECLARATION
I do hereby declare that the candidate has done this work and it was not sllbmilled
elsewhere for the award of any degree 01' diploma or for Publication.
October 2005
CamJiualc
•,
ACKNOWLEDGEMI':NT
The entire ineeption, th~ author bows to the grnc~ and mercy of the Almighty Allah. the
~tLpremeruler of the universe, without whose desire he could nOlmuterialize his project
repOlt.
fir~t, I 'would like to ~xpre:;s my sincere gratitude, proround re~pect Jnd imll1cn~e
indebtedness to m) project report supervisor. Dr. Kho. Shahriar Iqbal, Assistant
prores~or, Department of Naval Architcdure ~nd Marine Engineering, BanglaJesh
University of Engineering and Technology, Dhaka, BanglaJesh lor his untiring
inspiration, scholastic and ~y~tematic supervision, invaluable udvice and generous help
for the completion or the project work. Without hi~ help anJ supervision, it would not
have been pos8ible to complete the di.<,sertutiOIlwithin the stipulated period.
Writing \\iords in black is not enough to expl'C,S my profound gratitude and deepcst
aspiration to my wife, daughter & son, the departed soul ormy lather, mother, father-
in-law & mother-in-law, brother, sister, brother-in-law and ~ister-in-law for their
countless sacrifice, moral support, endle~s inspiration and prayer throughout my life,
The Author
I
.- CbNTEN'r'S ~.
Page No
•
ACKNOWLEDGEMENT _ , .
CONTENTS ,.......... . , ,. 11-111
LIST OF TABLES.. IV-VI
LIST OF FIGURES _._.................................... VII
ABSTRACT ,......... x
("
3.7 The al='plic'Ition ofLCA to ship ..,~' ".. 22
3.8 S~ope of the ~tudies and precondition~ "...... 22
3.8.1 Life ~yele of a ve,;sel .." .... ,.... ,.... ,.. . ,... ,'... 22
3.8,2 Inputs/oulputs of malcrials and energie~ to the yard.. 2J
3.9 Requirements in conducting the LeI on vessels 24
3.10 Limitations . " "....... 24
Page No.
I Table 2.01 Private Ship11l1ildcl's-Oblained 'NOC' from Mercantile
Marine Deparlment (MMD), Valid till December 31, 2003. 8
2. Table 2.02 Building pro~e8s and ll1f!jor WOIk/job sequences .... ,.... ,..... 9
9. Table 4,07 P<lintused for ship breaking M.S plate and new M.S angle
(surra~e area 750 m") 33
10, Table40S Marl-hours required for new M,S plale and M.S angle, 34
11. Tahk 4.09 Man-hour required for ship hreaking M.S plate and
new M.S angle ".... . , , , , , ,... 35
12. Table 4.10 Cost eslimation of using new M-S plate and M.S angle 38
13. Tahle 4.11 Cosl estimation of u,ing ship hreaking M.S plate and
new M,S angle , 39
15. Table 5.01 Emissions to air for lhe production of I ton e!ectl'Olylic
chrome coaled stcel (HUW AL 250) " 41
10. Table 5,02 Total emis!,H)l]sto air for the production of eleelrolyli~
chromc cO<lledslcel (13UWAL 250) , , , ,' ,... 42
•
1R. Table 5.04 Total emissions to air for the production of diesel
(BliW AL 132) , " " __ , , , , . 42
1
• 19. 1able5.05 Emissions through burning of l-kg diesel (3% sulphcr
cOlllcnl) by a ship engine (Chalmers 1991) ... ,.. ,.... 42
20. Table 5.06 T oml emissions through bUl'lling of diesel (3% ~ulpher
content) by a ship engine (Chalme~ 1991).... 43
23. Table 5.09 Total ~missions to air for eonstruelion phase (lif~ time)
of Un inland passenger vessel , , , , 43
24. Table 5.10 Tutal emission~ to air for operation phase (Ii Fetime)
of an inland passenger v~,;sel , . , , , , 44
25. Tuble 5.11 Tolal emissions to air for one year of an Inland passenger
yessel , ,' , , , , , . 44
26. Table5.12 Characterization lactors for variOLisimpact caleguries 45
27. Table 5,13 Weighting factors for various environmenlll! impact
categorie~ ".... .. , , , , , , , , ". 46
28. Table 6.01 Particulars for ealeulating <allllialearning for made of new
M. S plme & M.S angle , , , , , .. 48
29. Table 6.02 Arumal fare earning for vc~sel made of new M.S plate
& M.S angle in different passenger fare rate , , ".. 4R
30. Table 6.03 Annual fuel oil and lube-oil expenses for vessel made of
new M.S platc & M.S ungle . " 49
32. Table 6.05 Particulars for calculating arumal earning for vessel made of
ship breaking M,S platc & M.S angle ".. 51
34. Tablc 6.06 Annual eaming for vessel mJde of ship breuking M,S platc
& ncw M.S angle ' " ,' , , , 51
35. Table 6.07 Annual f'Lleloil and lubc-oil expenses for ve~seJ made of ship
breaking M.S plate & new M.S angle 52
~ ..
'
.,
.,
36. Tuble6.08 Repayment ealeu1ativll for vessel made of ship breaking
M,S plate & new M.S angle _,. , " " .. 53
40. Table 7.02 Repair and insllmnee, regislration & others cost for
different operating year ., , , , , _. .., , 55
41. Table 7.03 Net pre."ent value ~t 12 % rate of retum ,mu alillual
fare eaming for different pas~enger fare and operaling year.. 56
42, Table 7.04 The indices for different pas~enger fare mtc and operating
year , ,.... . , , , _.,,_ 56
LIST 01" .,'IGURES
Page No.
14. Figure 14 Variation ofNPV of the passenger vessel with fare for
di rfcr~nt operating lives using ship breaking steel sand
nt'w steel." " "... ' '........ 57
15, Figure 14 Variation or NI'V Lndcxof the passcnger vcssel with fare
rute for dillhent operating lives ,... 57
" I
NOTATIONS ANIJ SYMBOLS
31.Kg Kilogram
Vlll
32, K",-hr. Kilowatt hour
33. LPO) Slim orthe potential contribution from thc impact
catcgory j
34. Q, Emis,iollS of compound i,
35. EFO), Characterization factor of compound i relatcd to thc
impacl category j
36. w, Weighting factor [or impacl cal~gory j
The waler tran~port owners in Bangladesh like to have their vessel;"bnilt by old steel
plale collecled from scrap ships instead of using new steel plate to reduce the initial
co,t. This rep0l1 presents a compamtive study of using new steel and ship breaking
steel as shipbuilding material. The comparisons were made from the environmental us
weJl as economic point of view, A transportation model considered for this comparison
thal a ~mall \\'ater twnsport designed by the author which is suitable for carrying
pas~engers in Teknar - St. Martin Island route. Comparalive environmental ,IS well as
economIC projection for the performances of the alternative vessc1s have been
pre,ented in the presen~ work. Different operating lives for the ship built with ship
breaking sleel have been con~idered, Environmental evaluation is based on life cycle
impact asses~mellt (LCIA) method where environmental destruction index were
calculated for dilTcrenl secnario~. The projeded ee()n()mi~ performance me based On
~ompari~()n of th~ ~stimalcd nel pr~senl valucs (NPV~). Thc analysis rC\eals although
ships buill with ship brC,lking ~tccl bns somewhat lowcr initinl cost, but the ultimate
cost is inerensed becausc of higher materini consumption, higher mnintcnunec and
inercase fuel requirement. The Nl'V is ~ignij"jeantly le~s for sueh ships compared to
ship~ built with new steel materials. The environmental destruction caused by a ship
built with ship breaking Sled is higher because of more material requirem~nt, more
energy consumed during buildiog ami more fuel ~onsumption in operation. However,
these finding are based on il series of us,umption~ based On the prevailing situation in
lhe country and will require evaluation for application orthe results presented.
,
•
•
•
CHAPTER 1
INTRODUCTION
rhe lramporl ~y,lel1l is a mojor ,oul'ce of greenhouse and oth~r harmful emissions 10
the enVLronment.Special a!lcnlioll i" being paid to the 1ransporl seclor to I'educe lhe
emlSSlon,. Mca,ores being cOllsider<::dincludc enhancement of e~cise dulies,
cn(iJrCClllent01',lrider law,; and I'cduclioll of Ihc ilmOl'llt of nmtcriub u,ed. Finding
belter tran'porl modc and impl"Ovedtechnology muy he very u,cful 10 uel in luvor of
the developing enVil'Olll11ent.Some L"c,""rchel~howcd lhat tile morine trJnsporls wilh
conventional speed are environmenlally fricndlier, les, costly and commer<::iallymore
viable lhan (he ",ad lransport 1-4.
Banglade,h is a riverine country Approximale 140.00 million people arc liVing in 1he
counll)'. Though the maio truo'porlatioo ~y,lel1l~here are road, rail ~nd water ba,ed. A
large number 0(' people arc uSing watcr tran,port everyday. With lhe growth of
population, e~onomic alld commercial activili~, arc rapidly increasing and so is the
movemenl of lhe people. Moreov~r, l:lal1glade,;hgovernment is going to develop lhe
touri,m industry 10ml1kea good slwre from this sector in the (;DP. 'lherefore, therc is a
good opporlllnity 10 devclop watcr trJn,ports ill the roul~s thul are inlcr~,ting from lhe
,icwpoiol of lourism,
Most of the ship-owncrs in Bangladesh arc inlerested to usc ,hip breaking M. S. plale
in,lead of nCW M, S. plate for bllilding their ships because lhis is app~renlly less
~xpensivc. There i" a commo~ lrend among the ship ow~ers to ",e ship breaking sleel
plate from protit poi~t of vic". They ,c1dom think abOlll the environmenlal impact 01'
"sing sueh plale.
In lhis sludy, il wos aimed to compare the environmental impa~t of building ship" using
ship breaking M. S. plale Hnd new M, S. plale available in Our counlry. CompariSOll~
betwe~n lhese two different impacts are made to find oul the beller one. Life cycle
impael assessmenl, the mO~llyused 1001for assessing envirolll\1Cnlalperformance, wa,
used here.
Since acceptabilily of any project largely depends OJ] the commercial viability of the
s~me, it has been considered u,efui to evaluate the projected economic performance of
the ve"eis buill wilh both ship breaking M. S, ptate and new M. S, plate as well. The
analys~s are based Olla reali,tic fare ralc ill the prevailing environment. The analyse,
are performed taking inlo accounl routinc a, wdl a, major overhauling and repuir cosls.
A reali,lie scrap value has bcen taken into considcmtion at the end of lifelime. The
perlormanccs are measllred in lerms of Rate 0 r Return and NI'V.
This reporl, ill'st, d~scribes a brief hislory of shipbuilding In Bangladesh. 'then lhe
currcnl scenarios of shipbuilding ind",ll'ies in Bangladesh are discussed, in Chapter 3
the tool "Life Cycle Asse"ment (LCA)" is described. A model transportalion system
that wa~ considered for lhe comparison is lhen (Ie~~rihedin Chapler 4. Chapter 5 give,
the resul!s found from lhe LCA. Economic performance analysi.' of the projects i,
given in Chapter 6. Charier 7 is for Jimlings and discussion. Conclusions and
recommendations arc made in Ch~pter 8.
BACKGROUND
Ecological impael and eeonomic benefil are lwo importanl [[,elo", that should be
focused during eompari'on of any projec!. Some 0r the I'esearchers working in this area
considered both Or one of these factor> for comparing two differellt tran;port Illodes,
2
•
for the plullncrs. Th~ most dilliclIll problem is 10 inler-relate the factors. Tiler<::arc lOb
of works those compared one lran'portation system with other taking only one or (wo
Ofllic;c factors in the comparison proc~".'
Works arc available Oll the inv~,(igatiGn of inllllcnce of emissions. including ship
emi'sions, on the atmospheric concentruliOIlSof pollutants and their ~lTects. The
influence of ship emiss;alls on the atmospheric poilulalll' ccmccntmlion in,estigoting
the emissions from ships, industries and other vehicles in OSAka bay area'. This paper
claimed that the SO" NO,. und t\O cl\1i~;ionofrom sllip nfkClcd the concentration not
only in [h~ bay urea, bu!a];o in 40 km inland.
Among the best w",h comporing (wo Jiflerent transporl chains (or tran,portation
sy,l~m) from the viewpoint of imposing environmental burdcn'.". Tile second One "as
u,ed os an input work to (he fL"t one. In th~,e papers the authors used various
mcthodologies to compare the environm~lltal hurden impo,cd by two nlt~rnalive
trall'por( chains and compared the re,uil, found by tlio,c methodologics, lhillg life
cycle a"cssment (LeA), the burdens impo,ed in a number of environmcntal impact
emcgoric, by the ~itcrnativc lransport ch~in, were shown in llic,>cpapers to compare
their perfonnanee.
Another very interesting work was prescnted by', This p~per analyzed thc
environmentai and econom ie a,peel' of rail; ro~d and inland water transports operated
to and from the pori Jtottel'dam in the Netherlands and conducted a compari,on amollg
tlie,c modes. It was showll that llie inland water transport was most attra~tiv~
ccollomi~aily and environmentally. But this study has not taken the scrvicc quality in
eOll;ideration while ~omparing,
3
I'j
An ea,y method to forccasllh~ rcgu;rcd allcmaliv_c Ro-Ro fcrry fleet si7e based On the
e,timated future cargo flow for inland shipping16-" was used to project economical
analysis and traffic mOv~l1lel11s for transporl planning in Wrne inJund waterway' in
Llnngladcsh. But in these papers, the author; IhlVC not laken il110 account any
c~(}l()gical impact, cillier local or regional.
•••
CHAPTER 2
Thcre wa, a little developmcnl ill this sectol' in Bangladesh during British pcriod "hen
Narayanganj Dockyard wa, built in 1926, In P"kisian period, KlllIina Shipyard was
built "nd "tarted its commercial operation ill 1957. After the independence, thc ollly
,ignitlcant developmenl in this sector was the Chiltagong Dry Dock Limited, which
started operating in July 1985. Many private ;hipbuilding industries have groomed up
in these times but except few, most of lhem arc small yards and riverbank facil ities with
Iimitcd capocity to bu ild/rcpair small river.crall, krric, and c<Ja,ters.
•
a, Chittagong Dry Dock Limited (CDDL)
CDDL is situnted On lhc bank ofril'er Kamafuli at Easl Patenga, Chittagong.1l is lhc
only ISO 9002 ccrlified dockyard in Bangladesh.1l has a graving dock to accommodale
,hips of maximum 570' (L) x 75' (8) x 20,000 DWT'". It also has lwo fitting_OUIjelly
which can accommodate lwo 16500 DWT ,essels for repair. Ycl, CDDI, do not
con,lrucl a new vessel. Th~y do only the repair work of,ea going and other> vc;scl.
a. BN I)ockyard, Chittagong
B" Dockyard is the key ship rep"ir urganinlion for BN. II h"s a flouting dock, which
can dock ships of m""imulll 3500 DWT. II has numerous shops to carry our most hulls,
machinery and electrical repair 01' all BN ships. However, the dockyal'd remains
occupied in repairing RN ships only.
6
_............ . ..
b. Khulna Shipyard Limited (KSY)
KSY is situated at Laban Chara ill Khulna and has a slipway of 275 feet length. Th~
slipway can carry ~hi)ls upto 700 Ions Lighl Weigh!. It has eight ~idetracks in lhe dock
arco, each pf which is 320 fceLIpng. Tlli, means. lotal eight ,hip_, cun be docked or
eon,trllcted in the yard at the Same lime. Thi, ,hipyard also has SOlllcfLnecon;lruclions
in its credit.
in add ilion to these, BN also runs a smJll ,Iipway in Chillagong, which ;s used to repJir
small ships, boal~, pontoon, etc.
..- ..
2003 by Mercantile Marine Department (MMD), ChiUagong, out of those 148 yards,
only eight privatu yards arc found with reasonable capabilily of quality shipbuilding
and i>sued with the No Objection Ccrtific;,le (NOe) to undcrtakc differenl public ship
repair jobs, The'li'l prepared by M!\lD, Chitta.gong contains name Qf 38 different
technical firms rdaled 10 ship rcpair and oul of those eight are .,hip buil<ling/r~pair
yards.
It is evidenl that lhere are only eight privale yards, which have minimum f..1cililic, 10 be
nal1s unto 1200 DWT, Privates yard.1 obtained NOC from MMD are listed below:
(Source: MMD Cllillag<lllg Leiter 'W. M 12!7(PI.14)/496I1(fI}) d(llcil July 15, 2003)
8
It is profoundly important th~l, lhough smaller in ,ize, poor in equipmenl and b"ilding
material and off course, ,,,ITcring trom dearlh of skilled, qualified and e>..perienced
lechnical personnel, privale shipbuilding yards build more lhan 90% of our iniand
passenger and cargo vessels,
(2) Data regarding manufacturing oj" l~n, or thousands of parts incorporated in lhc
shipbuilding are not avaiiabie.
(3) There are difficullie, to measure and ,~aie energy consumplion and emissions
to air cach building procc".
(4) No practical databasc;, which retlect the act"al and current situation of
TIangiadesh', ,hipbuilding induslry. arc available.
(5) There are nQ datahoses regarding lhe thick steel plates. No dala are anilabk
either on thc pmcc" of engineering/de,;ign, drafting of working drawing.'.
coaling/painting, inspection, etc.
9
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•
CHAPTER 3
LIFE CYCLE ASSESSMENT (LeA)
During the work funded by lhe Nordic Council of Millisters to prcpan:: a Nordic
guideline for lite cycle as,cssll1e~t,the SE'[ AC definition to LeA l1 was modified 23,
"A process 10 evaillate {he ('nvirolllllclllai burdens <L\',I'ociuled with a product .,y"lclJ1. or
aClivity by JdenliJying and quanlilalirely describing Ihe ener>i}' and malerlal.I' ""cd. and
wa,wes released /0 Ihe environment, and to acc~ss the impacts of lhu,e enerK;' and
Jlm/eriai use,' and ,eiea.,es 10 the envirollJIICiII. Tile os,'e,'smenl illcl"des the elltire life
cycle of the product or octivity. <,n(,ulllpa.,siligalracting and prfJcessing raw materials;
dlslrihuliOIl: use: lIIaiwent/nce; rccyding alld final disposal: and all trampo,-twiol1
involved. LeA "ddrcs,'e,' environmental iwpGclS of Ihe ,Iyst,'m WIder st"dy in the w"e""
of ccological systems, IlUmml heallh and resource deplelion, II does 1I0t addrcsj
ccollOmic or .\'Ocwl e.UeC!,\'
".
Some pcople lind LeA u.,eliJl a,>a conceptual framework, othcrs as a sci ofpmetieal
tools: both views arc ~"rL'ect,depcnding on thc context. Even scientists and engineer:<.
can find "lite cycle thinking", a lremendous .'pur 10 their crealivity and ability 10 see
lhe wider dimensions ora problem.
12
3.3 WILat is a Product's Life Cycle
Simply 'tated, tile life eyele "f a product embraces all of thc aclivilies lhm go into
making, tramporling. ",ing and dispusing "r thai product. The typical Iii" cydc
consists of a series "f ,tage, rllnning from eXlraeli"n of raw materials, re-u~e, rceyding
and, ultimalCly, waste disposal.
Impacl
Other aspect
-
iii i
Technical
A"essmel1 - E~o"omic
- Market
- Social etc,
13
,I
TJw double arrow, between
. ,,
the phases indicate the interactive
illustraled by [he following examples: when doin!; the impact a~;c"mel\l
naLure of LeA as
it cun become
clear thaI certain intorlllalion is mi;sing which means tlml [be inventory analysis llIu,l
be 1mproved, or the interpretation of the reo"l!s Illight he insu rlicient 10 fa Ifill the needs
required by the udall I application which meanS ihal the goal and ;cope dclinitiOIl must
be revised.
Go~l and scope definilion is the first phu", in a life cycle a'SC;,mCll! containing the
following main ;"ues:
- goal
- scope
• fUllctional unit
- system boundaries
• data quality
- crilicall'evicw procc"
The definition of the !l0al and 'cope is the critical p~rl, of an LeA dlle to the st'ong
inl1uence On lhe re,uil of the LCA. III the Nordic guidelines on life cyclc assessment
the following mininlll111decisions and dclinitiotlO tlmlneed to be made are listed»:
-the purpo,e .md intended application
The definition of the purpose of the life cyclc a,;sessmcnt is an important part of the
goal dctinition
']he goal of an LCA ,tudy ,hall onambigllomly Slate the intended application,
incillding the reaSOns fo, carrying out [he stu<ly and lhc intended alldience, i.e. to whom
the re,"lls ofthe study are illtended 10 be communicated.
14
1\
3.6.2 Scope
rho definition of the scope of the lifo cycle assessment set, the borders of the
assessment -what is included in the system ilnd what detailed "sseSSlncnt melhod, are
to be u;ed.
[n defining lhe scope of an LeA stlldy, tlie following items ,hall he considered and
clearly described:
- the function of the 'ysleITI, or in the ca,c ofcompmative studies, ~y;lcl11";
- lhe functional "n;l;
-[he system 10 be ,lmjieci;
• the system boundari.,;
- allocation procedure,;
- the types of impact <lnd tile I\1dhotlology of impact U8se5smcnt and
MLbsequent interpretation to be used;
- data requirement;
- u"umplions;
-limitations;
The scope ,hould be sufficiently well defined to ensure thallhe breadth, lhe depth and
the detail of lhc ,tudy are compatihle and sufflcienl 10 addrcss lhc ,laled goal.
Inventory analysis i, tile second phase in a life cycle conlaining [he following main
issues:
- data collcction
- vulidalion of data
Compilation ofa proper process diagram i, crucial to succccd the LCA study i,c, to be
surc 10 include all relevant process elc. n\C process diagram does abo have a function
in the reporting "ftbe LCA while it improves the tran,parency ofthc study,
16
,•
I
I,
Raw Material
Material production
Production of tinal
Product
U"
Reuse
I
Deposition
Fig. 4: Example ora simple fiow sheet to be lIsed as support in the data collection.
The frJlllC"Ol'k for Iife cycle il1lpa~l u.«eS'ment is detined as follow> 25.
The life cycl~ impact assessment framework and its procedure should be transparent
ami pr(wide the flexibility and praCli~ally fi" this wide range of application. A large
range in the levels of effort and inlen,ily of the analysis are possible with life cycle
aS5essment lor diff~rcnl applications. In addition, impacl a<,s~.,;ment sllCluld be
effective in terms of CO,l and resources used.
Life cycle impact a,;essment is composed of sevu",l individual elements. These arc
category definition, cim;sificatiQn, characterization, and weighing. The di.'linction into
different elemcnts is ne~~"ar)' for several reasons:
Each element represcnts n di[fcr~nl 'pccillc procedure;
All e1emenls are not rcq\lircJ lor ull "pplieation,;
Method" "ssumplions and valuc-choiccs cnn bc mude morc lmn'porenl and
cun be documentcd and reviewed;
17
Tile cffeet, of metllods, ''',Olllnption, and Valllc-choiees Oll tbe results can bc
demonstmlcd.
Depending olltbc goal and scopc ortlle ,[udy and on the applicatioll orthe study all or
part> orthe elements c~n be lI!>ed.
The aim of this section is to provide guidance for selccling and defLning tile
environmenlal categories. N\lmcrous environmental categories have been proposed for
lifc cyelc impact as,essmen1. Most ,tudied will from tbese previous effor!> and will not
define their own categories .. j he ~electiOIlof categories should be consistent with the
goal and ,cope of the study. This ,elee[ion ,hnuld nnt be u;cd to avoid or disguise
ellvironmental issues or COnCern,. The completeness and extent of the survey of
eatcg(lries is goal scope ucpcndent.
The imp~ct e~tegories are ,elected in order [0 describe the impacts eall,cd by the
considered pmdllcts or product systems. A nUlnber of questions have to be cnnsidered
when selecting impact cotegories2J:
Compic[enes., - all environmental problems of relevance should be eovcred by
the list
Practicality ~ the li,t should not contain 100lllany categories
Independence - double counting should be avoided by cboosing mUlually
independent impact ealegories
Relation to (he c~tegoriwtion SICp- the chosen impaet eatcgoric,; ,;hould be
relnted to available cimraeteri7.lltiOJlIllelhou,;,
Tbe imp~et categories usually considered arc:
A biotic rc,ource,
Biotic re"ources
Land usc
II
Global warming
Stratospheric OZOneclerlctloll
ECOlOxicological impacts
Human toxicological inJp~cts
Photochemical o~idallt formation
AcidilicMion
cutrophication
Work environment
3.6.6 Classification
The life cycle impact assessment includes as a second clement c1as~iJiculioll on the
.Inventory mpu!
. ilnu, output d"
ala .
The classification element aims to assign inventol)' input and output to categoric;. The
assignment of inventory data i., the simplest or minimum level of life cycle impact
a>sc"menl. This can be used to identify am] Ilag i,~ues associated with inventory input
and o~llpul dalil. At this stugc, Ihere i, nll implicit assumption of 'Ics~ is heller' and
excludes severnl imporlan! consi<Jcl1lliol1;such as diftcrcnccs in potency or
environmental pcrsistencc.
whctcas double cOllnting of differcnt cI"lcCl chain (e.g. ;tratospheric oZOnC dcplc!ian
Thc impact categories can be placed on a <,caledividing the categories into thtce (four)
different space groups: global impacts, (continental impacts,) regional impacts and
local impacts. The grOllplng b not unequivocal for all the impact categories
cxcmplifLed by e,g. environmental loxicity, which can be global, contincntal, and
regional as well as local. The impael categories arc oftcn rclatcd dircctly 10 cxpo,,",c
i.e. global cxpo,me is leading \0 global impacts; contincnlal exposure i.' leading Ie>
19
I
continenlal impacts. Some of the impact catcgorie, are strongly correlated with
continental, regional and local conditions i.e. some localities are more prcdi'po,ed 10
certain impacts lhan other localities. Cerlain lake:. ill Scandinavia Can be mentioned as
e~amples of localities that arc mOre predisposed 10 acidification than lakes in other
parts of Europe. The time asp~ct is also imporlant when considering cerlain impact
categories e,g. global warming and stratospheric ozone depiction with time horizon, on
20 to 500 years.
To date, consensus has not been reached for onc single dclauillisl of impact categoric"
Thcrcf(Jre, the relevant impact categories may be selected from a preliminary list of
examples.
3.6.7 Ch'lradcr;zation
The life cycle as,cssment includes, a~ a lhird clement, eharacterialtioll oflhe invenlory
dala".
The main aim ofcharaclcri7AlliOil i, 10 model categoric, irr term, of Inuieators, anu, if
possible, have 10 provide a baSIS for lhe uggregation of the inventory input anu output
within thc culegory. rhis is abo dune ill terms of the indicator to rcprc,cnl un overall
,patial and temporal compatibility of the category, with thc inventory. The relationship
between lhe inventory Input and uutpUl data and the cutegory indicator i, normally
,trOllg (or within reuch). The rclatlon,hip between the Indieutor and endpoint(s) Is
usually weaker and may be mainly qu~litalive.
20
.~
.
• ~t,
taelOrs to be u~ed in the estimation of the total impact (e.g:. global warming, ozone
dcpletion potentials ete.) wherea~ equivalence factor~ for other environmental impact!,
are 110tavailable at consensus level (e.g. biotic resourec;, IUl1duse ete.).
3.6.8 Vu!uation/Wcightillg
The previous elemcnt, characterization, re,ults in q"antitative statemcnt on ditkre~t
impact categories e.g. global warming, stratospheric ozone depletion and
ecotoxicological effeets. Comparison of lhe'e categoric; i, not immcdiately possible.
Therefore, the life cycle impact a\sessment inchldes as a fourth element a valuation I
weighing of the impact categories again,t each otherl1.
Weighting aims to rank, weight, or possible, aggregate the result, of different life eyelc
impact assessment categories in order to arri,'c at the relativc importanec of these
ditlcrcnt rc,ults. The weighting proce,~ is not teehnical, sciemitle, Or objectives the~c
various life eyele a~sessment rc,,,ils e.g., indicators for greenhouse gases or resource
depletion, ~re not directly comparable. How~ver, "eighting l11~y be assi,ted by
applying scientifically baoed analytical techniques. Weighting muy be considered to
addre~~ three basic aspects:
21
3.7 The "pplic<Ltiull "fLCA to Ship
To quantify the aJTcctiollto environment by the life cycles of vessels, it is necess~ry to
analyze the life cycle inventory (Lei) to gra,p in terms of quantity eonslImption of
cncrgy and rcsource, and various emi"iun, and disposals to the environment "t each
phase of a life a vessel.
In practice, however, none of lCI analysis of stundard nature has been carried out
becausc of wide variety of constnlction" materials and parts uscd in vessels in addition
to tbe diversity in tbe building proec", to fit the di,'Crs of vessel types and the variety of
;hipbuilding meth(lds that as a matter of t;1etdiffer by each ship-building yard,
Under such circumstanccs, we have attcmpted explicitly identify thc~is to be dcal with
in tbe life cycie assessment (LCA) by conducting trial analysis oflCA in the building
process of a pas>enger vessel at ,hipyard.
Vessel, and ship; are in many type, and forms built with lcn~ of thousand, of members,
parIs and equipment. Furthermorc, no anal)';i, ill a real sense of LeA on vessels has
been earricd out because of wide variety in design, engineering and building process,
which eventually differ by each yard.
I LNG[Nr r I [([(LA'.'ATIO~ I
'j 0 gra,p energy con,umptioo, lypcs and quanlilie~ of wastes durIng the shipbuildiog
work, it may be necessary to record such itcm, al each work/job process and pursue for
[he sum total. In these studies, we tried to each as accurate as possible the total energy
and output, (lfraw materials u,ed for the pa"enger vessel from the sum total u;age\ of
those items in lhe shipy~rd >ubjected to our study,
RllW Material,
PO'IS
o SlOel plalo, 29.43131.4:>
o Engillo
• Stool pipes 0.5010.67
o Goar box
o Welding rod, 291.43/320.43 p~l
o Equipmcill's and
• Cootingipainl;"gI46.421162.27g,1
lilliLlgS,
o Timbo", rower ",ble>, olc,
o Olher> materiah
-l Soiid "',,",'
. Encl'pie" etc
Elcclric power ;326/6690
Building pmo""
l ngi "0"" ngi dc, Igil, '[',""spor", Iion!
kw_h 10gl>llc" .,"caring, bending, "cldi"g, ~ E""",,,,, to""
o CO, 1.9" I 0' / I 8x 10' kg instatlalion ,nd ooolingipoiming olc.
•0, 524J4/~I1.7J mJ
[),,;mljlC
o Acelylene I ?4, 71\1203,91 m'
I J
Finall'roducL !lcl';"at;"c
On" Pa»cogcr S""P 112Lon
vc"cI
Fig, 6: Flow of inputs / outputs of malerials and energie" clc. for building an inland
passenger vessel
23
••••
I
3.9 Requirements in Conducting the LeI on Vessels
(I) Data is neccssm)' regarding lhick sleel plales used for shipbuilding (using
approx. 20% scrap slceL,)
(2) Need to compile LeI dala for p~rl, used for vessel>
(3) A passenger vessel is estimated 10 conSUme about 433.81325.35 Ions offucL\, if
it is operated lor 10/15 years at a rate of 320 dal's a year. As far as the cmi"ion
of carhon dioxide (0 the air (~ir pollution) is concerned, it is sigl1itic~n[ly
dependent to the ship's operating: stages. It is necessary 10 lake into account of
the vo",,[', 0rerating conditions and circum,tance [nchlding mainlenance
schedules.
(4) No research has been conducted ahout lhe dismantling or scrapping of vessels.
Researches in the fillnre on recycling "f scrapped stecl material:; as well a, other
parts, including:the methods of disposab are required.
3.10 Limitations
With lne trial analysis ,,1 this lime. We believe we have found clues for the melhod of
Lei analysi~ 011 the vessels and "'e have pinpointed several problem areas for
implementJtion of a full-scale LCA, In summary, such problems include:
(I) Poor availability of Lei data about inputs, i. e., energy, raw materials and parts.
(2) Some of available LCI dara about inputs arc based On the EuropeJIl condition,
and the eontenlS are not necessari 11'applicable to properly reflect lhc situation in
Uangludesh.
The LCA for vessels has just sturtcd. With close liaisons and coopermion of all ,clevunl
indllstries, We wisl] 10 call for joint works among: marine transportation, shipbuilding
and other industrb for shipping aecessoric~, etc. in order to tackle problems in a steady
stance.
24
CHAPTER 4
4.1 General
There are different types oftransportatlOn system present in Bangladesh sueh a~ road,
rail, air and water transportation systcm. Road is the main mode of transport that
~Ollnect5 most par( of the country. The ruilways effcetively cover about 32% of total
area of Bangladesh through a railway track of 2076 lan. About two-third of
Bangladesh's wetland lanced \\,ith densc network of rivers, canals and creeks. Watcr
transport is the only mcans available in nearly 10% of the total area, The navigable
waterv"ays vary between 8372 km during monsoon to 5200 km during dry season,
I3anglade~h is a natural! y b"autif ul country. Th~r~ are many pla~cs that attract pcople as
int"resting tourist spot. Among thcm Cox'~ Bazar sca beach; Patenga sca beach; Sl.
Mmtine Coral Island (probal dceb); Kuakata etc. Water transport is the only means to
re~ch the St. Martine Island from th" mainland of Hanglooesh. But the exiMing facility
is not good cnongh to ilUract t(JUriststo this pl~ce.
25
'lhe vessel wa.>considered 10 be built by lwo different materials _ new mild steel and a
combination of ship breaking mild sleel with new stiffening members, The main
features of the vessel eonstmcted with two dilTer~nl material combinations are shown
in the Table 4.01. A general anangement plan, Lin~s plan and Mid ship section of the
vessel arc given in lh~ Fig, 7 to 9 re'pedively.
"
09
Annual fuel oil e)o.p~n~es 2,51,174.00 taka
9,600.16 tons
10 No, of trip per year 475 nos. 472 nos.
26
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29
4.4 The Materinl
construction of the proposed vessel, The tirsl One was aU ncw mild stcel plnle und new
mild ,teel ungle as stiflening members, The othcr wa~ u combination of ship-breaking
steel plate with 8% new platc and new mild ~leel angle. The ~calltJings of the plate and
,tiffening members for both type of con~tructjon are given ill Table 4.02.
•
4.5 Steel Material Weight
"
I;
Deck Girder
Deck Ileam
0040
1.10
0.47
I
1.28
"
n
BHO. & StilTene,
T"nk wall & Chain locker'
1.54
0,30
1.54
0.35
Fender OAI 0.53
~
"
20
Bracket
SljjTene, Main Deck
0.20
0.50
0,25
0,50
"
28
RoofstilTcncr
Po,t. pillar elc,
0-03
0.50
a.OJ
0.67
Grand total 29.13 33.45
I
]I
<,
I'
'1able 4,05 reveals consumable material for ship made of ship breaking MS plate and
MS angle, Personally, data gathered dilTercnt private dockyard at Dhaka and
Chittagong. In case of electrode private dock usc 1()-12 packet per ton. all an average
II packets per ton was used in this report Again 2\ Ill] per ton Oxygen WaSused in this
report though the above organizalilms use 18-24 Ill' per ton, Similarly for Acetylene
they use 6-8
, "
ill per ton where on an average 7 m' per ton was used.
Table 4.05: Consumable Material for Ship made of Ship Breaking M. S. Plate
nnd New M.S. Angle
]2
4.7}'aint Estimation
As ~hOWIlin Table 4.06 the painting materials for new MS plate and MS angle varied
from dockyard to dockyard. 1n case of primer it was considcred 20 m' pcr gallon per eo"t
and 21 ml per gall"n pel"coat [or Anti-colTosivc & Anti-foiling respcctiwly for surface
area 750 ml
Table 4.06 Paint used for New M. S Plate and M.S Angle (Su..raee Area 750 m')
Similarly, in Table 4.07 the paint used fol' ship breaking MS plate and New MS angle
varied from dockyard to dockyard. In this I'Cport 2 coalS primer were used whel'e I gallon
covered 18 m' surface and Anti.eorrosive & Anti-foiling 19 m' per gallon per coat for
surface area 750 m2
Tablc 4.07: Paint uscd for Ship Breaking M. S Plate & Ncw M.s Anglc
(Surface Area 750 M')
lSI. No.
,
2
2
Descriplion of Materials
Primer 2 eoat~ (I ~ m por gallon per coal)
Anti-cOI'rosiveleoat (19 Ill' per gallon per coat)
IAnti-foill1lgI~O"I(19 111'pel' gallon per coat)
+I
I
Quantity
83.33
39.47
39.47
Unit
I gallo""
gallons
gallons
33
hours for fitting and auxilial)' machinery worh; 144 mnn-hours for launching; 64 l11an-
hours for Olilfitting and finishing work and 6 man-hours for ~ea trial.
Table 4.08: Man-Hours rC1luircd for Ncw 1't1.S Plate and M.S Allglc
Similarly, in ease of ship breaking, Table 4,09 reveals that a total 16214 man-hours
required for preparing new MS plate and MS ungle_ Total 252 man-hours estimated for
design and drav"ing work; 112 man-hoUl's for material transport, 1296 for shot bla5t,
primer coat, lofting and culling v'iork; 13380 man-hours estimated for Bending,
Welding of Sleel material, Members, Installation of Members, Welding of Members,
Coating and painting, welding of steel pipes etc pipe bending and pipe wclding elc.
includes all welding, Wood works, Engine insl<l!lation, fitting, fixing and others @400
34
man-hr~ per ton; 360 man-hOll'" f()r painting works; 600 man-hollr~ for fitting and
auxiliary machinery works; 144 man-hours for launching; 64 man-hours fOT oulfitting
Table 4.09 : Man-Hours required for Shill breaking M. S Ph.te and New
M.S Angle
35
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000
c::. -
""
""
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"
4.9 Cost Estimation of the Vessel
The eo~t estimation is one of the mOM crilical aspects (Jf successful implementation of a
project. These aspecl~ were estimaled including all ilems as shown in Tuble 4.10 ,md
Table 4.11.
Table 4.10 : Cost E.timation ofllsing New M.S Plal~ und M.S Anglo
SI. uo. DcsCrll,tion Quantity Unit I Rutc (tk) TOlul co.t (tk)
1 Sleel material 29.13 ton 38,000,00
I 1.106,940.00
2 Consltmable matcrial
Electrodc 291.30 Ok< 410,00 119,433.00
Oxygcn 524.34 m 65JlO 34,082.10
Acclylcne 174.78 m' 24000 41,947.20
Grindiag stone, hand gloves L.S 8,000.00
; Wood 5.50 eft 950.00 5,225.00
4 Painls ~
Primer 75.00 gal. 350.00 26,250.00
I Anli-corrosive 35.71 gal. 475.00 16,%2.25
Anli- fouling 35.71 gal. 475.00 16,%2,25
5 ELlgine(70-80 )hp 2 nos 250,000.00 500,00000
Engine gear box(2: 1) ~
S Propeller 2 nos 50,000.00 100,000,00
9 Pltmp (safety and lire) 2 10,000.00 20,000.00
10 Capstan 1 ""
PP
I 20,000.00 20,000.00
11 Anchor with chain 1 15,000,00 15,000.00
'"
"
U
Search light
Navigalion light
1
1
PO
set
5,500.00
3,000.00
5,500.00
3,000.00
I " Life buoy"
I 15 Electric fan '"18 I
110S
PPl
1,000,00
1,200,00
20,000.00
21,600.00
16 Slecl frame "ith Cushion c1mir 00 nos 800,00 48,000.00
to Window (glass) IS 110< 2,000,001 36,000.00
18 Fuel for trail 30 gal. 120,00 3,600.00
19 Gas burner 1 PO 750.00! 750.00
I 20 Basin(.,ink) for galley 1 100 2,500.00 2,500.00;
I " WIC 2 nos J ,500.00 ],000.00
22 Basin (sink) for washing 1 PO 2,000.00 2,000.00
"
24
Ulensil
Olhers
1
'"
I O,()OO.OO
L.S
10,000.00
50,000.00
Tot"l for allmalerial cost 2,236,751.80
Overhead 5% on material eO,1 111,837.59
Tolal material including o\'crhead "A" 2,3411,589,39
251Tolallabourcost
L~bour hour 141981man-hrl 30.00 425,940.00
Overliead 50% on laboltr eO,l 212,970.00
Total labour cost including onrheatl "8" r 638,910.00
Gnlnd total cost (A+D) 2,987,499.39
38
Table 4.11 :Cost cstimation of using Ship breaking M.S Plate and No" M.S Angle
I
786,075.00
3
Anti- fouling
Engine (70-80 )hp ,
39.47 gal.
"m
475.00
250,000.00
18,748,25
500,000,00
IEng;ne gear box(2: I) -
• Propeller
,
2 nos 50,000.00 100,000,00
9 Pump (safety and fire)
, IlOS W,OOO.OO 20,000,00
'" Capstan
, 00 20,000.00 20,000,00
""
Anchor with chain
Search light , 00 15,000.00 15,000,00
, 00
,,'
5,SOO.OO 5,500,00
"
20
Gas bumers
Ba,in(sink) for galley , 00 750.00
2,500.00
750,00
2,500,00
21 WIC 2
'" 1,500.00 3,000,00
n ""'
23
Ilasin (sink) for washing
IUtensil ,
1
""
set
2,000.00
10,000.00
2,000,00
10,000,00
" lathers
I
L.S
rotal for all material co,t
50,000.00
1,946,9H9.15
Ovcrhead 5% on material cost 97,349.46
Total material including uvcrhcad "A" 2,044,338,61
23 Total labour cost
Labom hour 16214man-hr 30.00 486,420,00
Ov~rhead 50% on Iahour cost 243,210,00
Total labour cost includin o\'erhcad "fi" 729,630.00
Grand total eosU~ 2,773,968.61
]9
.!t
Table 4.12: Comparison of cost Involvemenl
,
2 Consumable matcrial cost
Painting eost
213,635.42
63,183,22
239,481.01
69,995.10
4 Others material cost 3&4,483.75 384,483.75
5 Engine and gear OOXcost 525,000 00 525,000 00
6 Labour cost 638,910,00 729,630,00
Grand total cost 2,987,499 39 2,773,968.61
c.c"•.~""~,",~:."'C_"'
-, ,
I3Coosumoblc material _
[]Painhng ooJl
[]Olh<r< makriol "",,'
13% 2%
Fi~..., 12: Pie ch~rt of cost involvement ia peruntage willi IICW M.S plate
and M.S angle
D S,<cl.Molori,,] cos,
eeoo.wmblc material00",
[]I'>mting cost
[]0It<;-, tmteriol ""'"
• hngire am g"'" box "",I
Ct...lx>urooll1
40
,I
CHAPTERS
ENVIRONMENTAL IMPACT ANALYSIS
5.1 Genefal
The concept of the life cycle assessment simply means that the inputs (energy.
Materials, etc) and outputs (energy, wa,te materials, products, etc) from the cycle arc
evaluated for each step of a product or proce,s lire. The swndard generally u~ed for thi~
evaluation is as ISO 14040. Lili:: cycle impact assessment (LelA) i~a tool to evaluate
impacl uf inputs and outputs on the environment. Thi~ method has employed in the
pre,ent work
It was difficult to find reli~ble data for this amlysis. For the construction phase of such
transports 2 used dala collecting Irom various Internet resources. Here ~II the dala for
both construction anJ operalion pha~es wcre tuken from Jatabase of J5 a life cycle
assessment (LeA) ~oftware.
Table 5.01: Emissions to air for the production of 1 ton electrolytic chrmne coated
~tecl (lIUWAL 250)
CO, NOx so, 1\',0 IIF lIel Metltane Ammouia C,II, SPM
(gUl) (gUl) (gm) (gm) (gm) (gUl) (gm) (gm) (gm) (gm)
2.95 xW" 4540 6180 9,52
" 86.3 1.08 x 10' 1.97 5.23 1410
41
Table 5.02 ;Totat emissions to air for the production of electrolytic chrome coated
steel (BUW AL 250)
T)'pe of used Q•• co, NO, sos N,O HF HCI Methane AnIIllO"C,H,I S}'M
Ilia
steel Material
(Ion) (kg) 'k~ (kg) (kg) 'k~ ,kg' (kg) (kg) (k~ (kl:)
Considering
new MS plate
29.1385934 132,25 180.02 0.28 0.32 2.51 314,60 0.06 0.15 41.07
&NcwMS
Angle
onsidering
Ship.breaking
33.45198678 151.86 206.72 0.32 0.37 2.89 361.26 0.07 0.17 47.16
MS plat" &
ew MS Angle
Table 5.03 ; Emissions to air for the production of 1 kg diesel (BUW AL 132)
Alde- Ammo- ])ust
CO, NOs SO, N,O CO C,H,
hydes nia (SI'M)
(I:lll) (gill) (I:lll ) (gm) (I:lll) (gnl) (1:111) (gm) (gm)
m 1,902 3.863 0.048 0.252 0.04 0.02 6.786 0.219
Table 5.04 : Total Emissions to llir for the production of diesel (BUW AL 132)
ngl.
3.2611107,4 35.7
'" 163203f0919.n 310.411630.45 U3 41.l3 6.53
42
Table 5.06 ; Total emissions througb buring nf diesel (3% sulpbcr content) by a
ship engine (Chalmers 1991)
Table 5.08: Tutal Emi"ions during the production of electricity whieb used for
construction work (Buwal-132)
Table 5.09 ; Total Emission, to air for construction phase (life time) of an inland
passenger ~'csscl.
43
Table 5.10 : Total Emi"i{ln, 't{l a'ir f{lr opcration phasc (life timc) of all inland
passenger vessel
°
,II,
'g
kg
41.39
1814.07
30.85
1352.05
37.01
1622.4
41.13
1802.7
Table 5.11 : Total Emissions to air for one year of an inland passenger vessel
44
Calculating the total amount of substances and compounds relcased for the inland
passenger vessel, the envirorunenta! impact of the transportation system in 4 different
impact categories (global wamling, acid rain, eutmphic[]tion, air pollution) were
~slimated by multiplying (he total amount of emissions by resp~ctiv~ characterization
factors according to the equation (l) 4.
Where, EP(j) is the sum of the potential contribution from thc impact catcgory, Q, is thc
emissions of compound i, and EF(j), is the characterization factor of compound I
rdatcd to thc impact catcgory)
Thc valncs of thc characterization factors arc givcn in Tablc 5, II. Thcsc values were
according to lOco-indicator '95)'
lobal
0, 1.0
---T
k
'arnllng
,0
H,
270,0
11.00
---T 9,850,70 12,225.16 11,068.26 10,489.82
mmoma US k
Hel 0.88 k
cid rai" 43,23 50,25 46,74 44,98
, '0, 0.' k
SO, 1.0 k
Eotrophicatio 0, 0.13 k
6.33 6.74 6.52 6.41
" Ammonia 0.33 k
Particulate matlel' I 01 k
ocal air
o[I"lio11
0, 1.0 k 52.g0 58.42 55,60 4.19
,H" 04 k
The environmental destruction index was ealeulal~d by multiplying Ihe ratio of the
amount of potcntial impact using new M.S plate & M.S angle systcm to that of using
ship breaking M.S plate & new M.S angle system with somc specific weighting factors
for each impact category according to equation (2).
45
The values of the weighting laelor:; for various impact categorics arc given in Table
5.122. These values were calculated by analytic hierarchy proees~ (AHP)J6 from the
data gathered through ~urvey. AHP is widely accepted method of establishing hierarchy
among the parameters those are not directly related to each other.
labal warming
factor
0.3604
(EP)J
0.806 0,290
'. (EP);
0.890
'.
0.321
(EP)J I
0.939 0.33
IJ
46
~CHAPTER 6
6.1 Gcncral
The provisions for routine renovation of the vessel for new M.s. plate & M.S angle
have been made Ollthe ]"', 6'h, 9[h, 12tl.,ISu,and 18th year with the dry docking and 6Lh,
12Lh and IS,h for maehiner)' maintenance of the operation. On the other hand, the
provisions for routine renovation of the vessel with ship breaking M.S. plate & new
M.S angle (approximately S% new of total used material) have been made on the 3m,
6L1" 9'10 and 12thyear for the dry docking and 6Lh and Ii" for maehinel)' maintenance of
the operation. It was assumed that the ves,el acquisition was 100% covered by
commercial loan and annual earning & expenses are shown in table below.
The Present Worth factor (PW) is a multiplier to convert a future sum into a present
sum. It is also called the discount faelOl)).
P=(PW)F
PW = PlF = (l +i)"ol
The e~ealation rates considered for the projected economic analysis are shown in the
Tahle 6.05.
•
47
In both eases the vessels with new M.S plute & M.S angle and ship breaking MS plate
& new MS angle as ship building materials, 100% of the direct crew/labour cost was
cOllsidered as overhead cost while calculating !he total annual eosl, The insurance and
other overhead was taken as 1% of the vessel's price.
6.3 Calculation or Economic Index ror Vessel made or New M.S Plate & M.S Angle
Table 6.02: Annual fare ellrning for vessel made of new M.S plate & M.S
angle il) diITerent passenger fare rate
Passcngcr NPV
Di~tance Passcngcr Annual Fare
R(lute (t1.)
(km) Fll~~I~ate Fare (tk) Earning (til.)
'k
48 1.80 86.40 1477302.00 1752000.00
48
Table 6.03: Annual fuel oilaud lube-oil expeuscs for vessel
made of new M.S plate & M.S angle
49
Table 6.04: Repayment caicuh.tion for vessel made of new M.S plate and
M.S angle
(Taka in thonsand)
Half-yearly in~tallment 124.479125
Half-year Principal Principal repaid Out~tanding Interest
"rind )31
I 2,987.50 124.48 2,863.02 179.25
2 2,863.02 124.48 2,738.54 171.78
3 2,738.54 124.48 2,614,06 164.31
4 2,614.06 124.48 2,489.58 156,84
5 2,489.58 124.48 2,365.10 149.37
6 2,365.10 124.48 2,240.62 141.91
7 2,240.62 124.48 2,116.15 134.44
8 2,116.15 124.48 1,991.67 126.97
9 1,991.67 124.48 1,867.19 119.50
10 1,867.19 124.48 1,742.71 112.03
I1 1,742.71 124.48 1,618.23 104.56
12 1,618.23 124.48 1,493.75 97.09
13 1,493,75 124.48 1,369.27 89.62
I' 1,369.27 124.48 1,244.79 82.16
15 1,244.79 124.48 1,120.31 74.69
16 1,120.31 124,48 995.83 67.22
17 995.83 124.48 871.35 59.75
18 871.35 124.48 746.87 52,28
19 746.87 124,48 622.40 44.81
20 622.40 124.48 497.92 37.34
21 497.92 124.48 373.44 29.87
22 373.44 124.48 248.96 22.41
23 248.96 124.48 124.48 14,94
24 124.48 124.48 0.00 7.47
50
•
6.4 Calculation of Economic Judex for Vessel made of Ship breaking M.S
Ph.te & New M.S Angle
Item
Table 6.06: Annnal earning for vessel made of ship breaking M.S plate &
new M.S angle in dilIerent passenger fare rate
51
Table 6.07: Anuual fuel oil and lube-oil expenses for vessel made of
Ship breaking M.S plate & new M.S angle
Items
Roule length 48 km
52
Table 6.08: RepaYI'1en! ealeulatiOIl for vessel made of ship
breaking M.S plate & new M.S angle
(Taka in thousand
Half-yearly installment 115.582025
Half-year Principal Principal repaid Outstanding principal Interest
1 2,773.97 115,58 2,658.39 166.44
2 2,658.39 115.58 2,542.80 159.50
3 2,542.80 115.58 2,427.22 152.57
4 2,427.22 115.58 2,311.64 145.63
5 2,311.64 115.58 2,196.06 138.70
6 2,196.06 115.58 2,080.48 131.76
7 2,080.48 115.58 1,964.89 124.83
8 1,964.89 115.58 1,849.31 117,89
9 1,849.31 115.58 1,733.73 110.96
10 1,733.73 115.58 1,618.15 104.02
11 1,618.15 115.58 1,502.57 97.09
12 1,502.57 115.58 1,386.98 90.15
1] 1,386.98 115.58 1,271.40 83.22
14 1.271.40 115.58 1,155,82 76,28
15 1,155.82 115.58 1,040.24 69.35
16 1,040.24 115.58 924.66 62.41
17 924.66 115.58 809.07 55.48
18 809,07 115.58 693.49 48.54
19 693.49 115.58 577.91 41.61
20 577.91 115.58 462,33 34.67
21 462.33 115.58 346.75 27,74
5J
CHAPTER 7
The main par;lmeters, which have inl1l1ence on the impact of environment and
cconomi~ index of the passenger vessel are ~hown in the Table 7.01.
It i~ seen from Table 7.01 that the sted consumption requirement inereo.se~ by 14,83%
percent if the vessel is built with ~hjp breaking steel compared to new steel materials.
This figure is dictated mainly by the relevant slalLllory regulation. There is <lconsequent
increase in labor time und co~t. Because of increase in the hull wcight, a ship built with
breaking steel would consume more fuel for same operating life. 13eeause of
complexity in the building process, the electricity C<.ll1~umptionwill ulso increase
14.83% percent. At the end, ship built with ship breaking steel cost 7.7% percent less
compared to a vessel built with new steel materials. In fael, !his economic consideration
drives the owners in making their decision in favor of ship built with steel from ship
scraps.
54
A ship built with new steel is expected to have an economic life of 20 years. On the
other hand, ships built with steel from ship scrap, the operating life of a ship dcpends
largely upon the proper maintcilllllce of this ship. Thus a flcxible operating life has been
assumed for the analysis: 15 years, 18 years and 20 years.
Since ships built with steel from ship scrap is likely to require more maintcnanee. it is
assumed that the annual hire days for such ships will be 318 days against 320 days for
ships built with new sted nl<lteriuls. There \'1i11be a proportionate reduction in the
annual number of trips.
Table 7.02: Repair and Insnranee, registration & othen cost for different
operating year
Insunmce, regi~tration
988 599 1561 1834
& Others cost
55
" '
Table 7.03: Net Present Yalue at 12'Y. rate of return & Annual fare earning for
different passenger fare and operating year
As far as environmental index is concerned, a ship built with new steel materiab is
lound to cause less damage to the environment compared to a ship built with ship
breaking steel irrespective of [he operating lif" of the later. The environmental
destruction indices were found 0.864. 0.926 ~ml 0.961 for operating lives of 15 years,
18 years and 20 years respectively. Th" findings showed that the vessel with new mild
steel plate were environmentally 0.14, 0.07 and 0,04 tim"s less detrimental [0 tile
environment respectively.
Table 7.04: The Indices for different passenger farc rate and operating year
56
10000
~ ~OO
>
,
•
"
4000
3000
"
•
Z
£000
1000
0
M 95 100 105 110 115 1£0 1£5 130
Fare (Tk.)
Fig. 14 Vari3tion ofNPY ofthc passcngcr vessel with fMe for different operating
lives using ship brcllldng stecls llIld new steel
• ,
x
015 Years
~ -/:>.-18 Years
0
-c- 20 Years
•
• ,
0
>
>
•"
•
" ,
-.
0
,
0
,,
•
Z
o
1.75 2.00 2.25 2.50 2.75
Fare Rale (TkJpasserlger/km)
Fig. 15 Variation ofNPV index oflhe passenger vessel with fare rale for different
operating lives
57
CHAPTERS
The environmental indices presented in the present work show that building a ship with
ship breaking steel may be 0.14 lime~ more detrimental 10 environment compared to a
ship built new steel materials, In the best available scenario, the ratio reduces to 0.04.
The probable rcason behind this may be that more materials are required, more energy
us well as fuel are consumed during the building process of a ship using SC"'P steels.
Most or the ship-owners of Bangladesh arc interested to build their ships by ship
breaking materials rather thall new steel because of low initial investment. However,
results presented in the present study show that the economic benefit falls under the
shadow due to the increa~e in fuel Clln~umpti<Jn,higher maintenance cost, increased
fuel cost. The final economics is strongly in favor of ~hip built with new steel materials.
The NPV of the later vessel is found to be up to 17- 120% higher.
Though llangladesh is not among the signatories ofthe38 lhe ~teps towards reducing the
emission will help the national and international community to improve the quality of
the environment. TIle findings are expected 10 as~i~1 the owners/decision makers in
deciding what material they should promote to be used in the ship eonstwetion 10
preserve environment maintaining commercial viability.
The results found in this study aTe highly uncertain because of the uncertainty involved
in the data used. One should be aware oflhese uncertainties while using these results.
The following unsolved problems arc still left for further re~earch ill thi~ area.
• The erfect of power required for vanous speed of ships made or ship-
breaking M.S plate & new M.S angle imlead or new M.S plate & M.S
angle.
58
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61
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