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UN invites Maersk to respond about the 2016 sale of the North Sea Producer vessel

In February 2018, the Working Group on the issue of human rights and transnational corporations and other business enterprises and the Special Rapporteur on the implications for human rights of the environmentally sound management and disposal of hazardous substances and wastes invited A.P. Moller - Maersk to share their perspective on human rights and ship recycling. The invitation also urged Maersk to respond to the alleged transboundary movement of an end-of-life ship owned by a joint venture based in the UK in which Maersk had a 50% shareholding. The alleged actions occurred in the context of the sale of the North Sea Producer vessel, which arrived in Chittagong, Bangladesh for dismantling in August 2016.

 

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24 May 2018

Maersk's response to UN on alleged transboundary movement of end-of-life ship

Author: A.P Moller-Maersk

In October 2017, the UN Special Rapporteur on Human Rights and Toxics...made an official visit to Denmark...during which he held a meeting with A.P Moller-Maersk(APMM)...on the issue of ship-recycling. During this meeting, the Special Rapporteur requested information about the sale of the North Sea Producer (NSP). The NSP was owned by a separate legal entity, North Sea Production Company Limited (NSPCL). However...because NSPCL as a separate entity was solely responsible for the sale of NSP. With reference to the query regarding indentification of the buyer, it is important to be clear that the UK environmental authorities had full knowledge of the identity of the buyer. However...confidentiality provisions in the sale contract between NSPCL and the buyer prevented NSPCL from publicly disclosing the buyer's identity. The sale of the NSP was conducted by NSPCL in accordance with the principles of the two shareholders...please kindly refer to the response by NSPCL in annex A.

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Item
24 May 2018

UN invites Maersk to respond on alleged transboundary movement of end-of-life vessel

 We would like to bring to the attention of your company information we have received about the alleged transboundary movement of an end-of-life ship owned by a partnership based in the United Kingdom between A.P. Moeller Maersk and Odebrecht. The vessel...containing hazardous substances...arrived in August 2016 to Chittagong, Bangladesh for dismantling. The vessel named North Sea Producer was owned by the UK registered North Sea Production Company...the companies reportedly informed authorities in the UK that the vessel was being purchased by a Saint Kitts and Nevis based company. Despite this information...the ship towed straight to Bangladesh for dismantling on hazardous materials. The Janata Steel yard in Bangladesh reportedly purchased the vessel from Global Marketing System (GMS)...which was involved in the setting up of the post box company Conquistador Shipping Corporation...thus the North Sea Production Company sold the North Sea Producer to a well-known scrap dealer and must therefore have been aware that the tanker would not be further operationally used. Non-governmental organization raised serious concerns with regard to the contamination of vessel by dangerous chemicals, oil and gases, as well as radioactive material.

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