Government files complaint over Independence

A company that describes itself as one of the largest cash buyers of ships for recycling in the world has been named in a federal complaint by the U.S. Environmental Protection Agency in a controversy over the former passenger liner Independence.



The EPA said it has issued a federal complaint against Global Marketing Systems of Cumberland, Md. for distribution in commerce and export of PCB-containing materials on the Oceanic, formerly the Independence, a ship being sent by Global to be scrapped overseas. PCBs, or polychlorinated biphenyls, are a class of organic compounds that were widely used as coolants and insulating fluids for transformers and capacitors as well as in stabilizing additives in wiring, flame retardants, hydraulic fluids, caulk and many other applications. The United States banned their manufacture in the 1970s.



On Feb. 8, after being mothballed for seven years, the ship left San Francisco, being towed by a tug Pacific Hickory.



Federal law prohibits companies from exporting PCBs, including those in ships, that are sent overseas to be scrapped, said Rich Vaille, associate director for waste program enforcement in EPA's Pacific Southwest region. When companies illegally export PCB waste, they are circumventing U.S. requirements for proper disposal. PCB waste must be properly disposed to protect public health and the environment.



Fines against the two companies may be assessed up to $32,500 per violation per day. The EPA said Global has 30 days to file an answer to the complaint to avoid a penalty assessment without a hearing.



The agency said in a press statement that it was not informed by Global of its intention to export the ship for disposal. The previous owners, Norwegian Cruise Lines, bought the ship through a wholly owned subsidiary with the intent to put it into service in the United States. The paperwork showing that Norwegian Cruise Lines had sold the vessel to Global was not submitted to the U.S. Maritime Administration until the ship had already sailed.



The ship was originally built by Bethlehem Steel's yard in Quincy, Mass. in 1951 for American Export Lines.



Global describes itself as a privately owned U.S. corporation established in 1992 by Anil Sharma, with the primary focus to buy ships from MarAd.

Sharma was traveling and not immediately available for comment, but the company said on its Web site that since its founding growth has been explosive and that it now has 30 employees that and has negotiated more than 700 vessel sales, including more than 100 per year in recent years.



Between 1999 and 2001, the company grew at its fastest and became one of the largest cash buyers of ships for recycling in the world, at one time having a market share of more than 80 percent of the recycling market in India, the Web site said.



Robert Basseches, a Washington-based attorney who represents Global, said the company has been in contact with the EPA. We are coordinating with the EPA and intend to be fully cooperative with the agency and address its concerns. 



Basseches said the ship is still at sea, but declined to discuss details further at this time. 

Source: American Shipper