With GMS and The Liberian Registry
The implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) on June 26, 2025, marks a milestone in the industry. To discuss the implications of this development, Mr. George Novak , VP Commercial at the Liberian International Ship & Corporate Registry (LISCR | The Liberian Registry) , sat down with Dr. Anand Hiremath , Chief Sustainability Officer at GMS Leadership , the world’s largest cash buyer of ships for recycling.
This regulation establishes a global framework for ensuring that end-of-life vessels are dismantled in a way that prioritizes worker safety and environmental protection. With Dr. Hiremath overseeing compliance with the Hong Kong Convention through their Sustainable Ship and Offshore Recycling Program (SSORP), join us as we break down its history and impact on the global market.
To watch the full discussion please visit the following link:
Why the Hong Kong Convention Was Necessary
Before the Hong Kong Convention, ship recycling was largely governed by the Basel Convention (1992), which regulated the transboundary movement of hazardous waste. However, the Basel framework was not well suited for the shipping industry due to several reasons.
One major issue was the conflict between flag state jurisdiction and the Basel Convention’s requirement for prior informed consent (PIC). Under Basel, the last port of departure was considered the “exporting country,” but in reality, port authorities often had no knowledge that a vessel was destined for recycling. This created bureaucratic obstacles, as the exporting country was expected to issue documentation for a process they were unaware of.
Additionally, the Basel Convention classified entire ships as “waste” once they were sent for recycling, which clashed with the perspective of recycling nations like India, Bangladesh, and Pakistan, where ships were viewed as valuable resources rather than mere waste. More than 98% of a ship’s materials, including steel, machinery, and electronics, are recycled or repurposed, making the Basel definition restrictive.
Recognizing these issues, the International Labor Organization (ILO) introduced guidelines in 2004 focused on worker safety in shipbreaking yards. Regrettably, these guidelines were not legally binding. By 2005, both the Basel Convention and ILO urged the International Maritime Organization (IMO) to develop a more specific regulatory framework, leading to the drafting of the Hong Kong Convention in 2009.
The HKC now hopes to address the unique challenges of ship recycling by incorporating the following three pillars. Firstly, the Inventory of Hazardous Materials document which will assist in identifying all hazardous substances onboard. Secondly, the Ship Recycling Plan (SRP), their preferred method for safe dismantling, and finally the Authorization of Recycling Yards which are facilities that must meet strict environmental and safety standards. Even though it was adopted in 2009, the HKC required ratification by 15 states representing 40% of global tonnage to enter into force, something that was eventually achieved in 2025.
Key Functions of SSORP
As the most prominent cash buyer of vessels internationally, GMS has also played a role in adopting responsible ship recycling practices. Founded over 30 years ago and headquartered in Dubai, GMS operates in 13 countries and has facilitated more than 5,000 ship transactions, including 1,100 “as-is” deals where vessels are purchased directly for recycling.
Under the leadership of Dr. Hiremath, they have adopted numerous sustainability initiatives. One of their most significant contributions is the Sustainable Ship and Offshore Recycling Program (SSORP), an independent division dedicated to ensuring compliance with the Hong Kong Convention, and the first and only Lloyd’s Register validated program for measuring carbon footprints in ship recycling.
Through this initiative, GMS helps shipowners to compile an Inventory of Hazardous Materials (IHM), which is now mandatory under HKC. SSORP assists in developing Part 1 (hazardous materials present at construction), Part 2 (operationally generated hazards), and Part 3 (materials added during repairs).
Further than that, they evaluate recycling facilities in India, Bangladesh, and Pakistan, ensuring they have proper waste management systems, worker safety protocols, and environmental safeguards, but also take care of worker training, already counting over 10.500 trained professionals. Additionally, they offer on-site supervision. Once a vessel is beached for recycling, SSORP overseas waste is identified by yard, labelled, removed, segregated and safety disposed
An interesting feature of SSORP is its carbon footprint measurement system, which tracks emissions from the moment a ship is beached until its final steel block is recycled.
The Current State of HKC Implementation
Since the HKC entered into force there were some evolvements observed in compliant yards. In India, approximately 110 ship recycling yards have upgraded to meet HKC standards. Bangladesh, which was slower to adapt, now has 15 certified facilities, while Pakistan is expected to authorize 9 more yards soon. Even before the HKC’s enforcement, Bangladesh required IHMs for all vessels entering its recycling yards, a policy that has now been adopted by India and Pakistan as well.
As the largest flag state in the world by gross tonnage, the Liberian Registry becoming signatory to HKC allowed the treaty to reach the required 40% of worldwide gross tonnage to go into effect. Subsequently, LISCR launched its Green Ship Recycling Program, a program aimed at providing the services and documentation necessary to abide by HKC guidelines. Following the introduction of this program, LISCR partnered with GMS to support recycling efforts, providing final surveys to allow issuance of the Individual Ready for Recycling Certificate (IRRC), a mandatory document required for recycling under HKC.
Nevertheless, some recycling nations have yet to finalize their Document of Authorization to Conduct Ship Recycling (DASR), creating some uncertainty for shipowners and cash buyers, as there is still ambiguity over whether ships registered under non-party flags must adhere to HKC requirements when recycling in a ratified country.
The fact that geopolitical tensions have resulted in a declining steel market, also reduces profitability for recyclers, further slowing down the pace of green investments. According to BIMCO, an estimated 15,000 ships will be recycled by 2032, averaging over 1,000 vessels per year. Many of these will be older vessels built between 2009-2010, which are now reaching the end of their operational lives.
About GMS
Founded in 1992 and headquartered in Dubai, GMS is world’s largest buyer of ships and offshore vessels for recycling.We take an innovative approach to nurture sustainable ship and offshore recycling industries by working closely with owners of ships and offshore vessels, while investing and training ship recycling yards and their workers on Hong Kong Convention (HKC) compliant best practices. We also invest in multiple ways to upgrade the ship recycling industry in the Indian Subcontinent. For more information please visit: www.gmsinc.net
About Liberian Registry
The Liberian Registry has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive and innovative service to owners. Comprised of over 5,700 vessels aggregating 282 million gross tons, representing 17 percent of the world’s ocean-going fleet. Moreover, the Liberian Registry has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and the protection of the marine environment. For more information please visit: www.liscr.com
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