Singapore Brokers Launch ‘Bid For Green’ Platform to Revolutionize Ship Recycling Industry
Singapore-based Star Asia Shipbroking has launched a new platform to modernise the sector in a move set to transform the way end-of-life ships are sold for recycling. The new entity, Bid For Green (BFG), is Star Asia’s founder and director Rohit Goyanka’s brainchild alongside global communications manager Sheila Hassan. Designed to facilitate transparency, efficiency, and environmental responsibility, BFG brings shipowners and cash buyers together on a digital platform, streamlining the complex process of green ship recycling.
With the growing global emphasis on sustainability, especially in industries known for high levels of waste, ship recycling has emerged as a critical component in maritime operations. BFG’s platform is timely, as the traditional methods of selling ships for scrap are facing growing scrutiny for being outdated, opaque, and often misaligned with modern environmental standards. Bid For Green seeks to change that by offering a seamless, transparent alternative that benefits all stakeholders involved.
A Vision for a Greener Future in Ship Recycling
At the heart of BFG’s mission is its commitment to green ship recycling practices, focusing on compliance with the Hong Kong Convention (HKC) standards, an international agreement that promotes safe and environmentally sound recycling of ships. Shipowners who register on the platform will have access to cash buyers committed to recycling vessels in accredited, HKC-certified green shipyards. This guarantees that the ships will be dismantled in an environmentally responsible manner, minimizing the harmful impacts associated with traditional shipbreaking.
Speaking on the launch of the platform, Goyanka emphasized that BFG is a separate entity from Star Asia Shipbroking. While the parent company will continue its established broking services, BFG is exclusively targeted toward shipowners and brokers interested in selling their vessels for recycling in an unbiased, technology-driven manner.
“This is going to be the platform where owners can realize the maximum value for their end-of-life ships in an unbiased, transparent way. We want to enable technology to digitize a traditional process and make it more efficient,” Goyanka stated.
The Need for Transparency in Ship Recycling
Ship recycling is a major industry, particularly in regions like South Asia, where a significant proportion of the world’s vessels are dismantled. However, the current system has been criticized for its opacity, with sellers often uncertain about where their ships will ultimately end up or the conditions in which they will be recycled. Environmental groups have raised concerns about ships being dismantled in unsafe conditions, leading to environmental degradation and labor rights violations.
Goyanka, who brings 28 years of experience in the ship recycling broking sector, acknowledged that the industry’s traditional practices are out of step with modern standards. He described the existing process as overly opaque, where shipowners often have limited visibility into who they are selling their vessels to and where the ships may be broken down.
“A transparent bidding process always leads to strong competition,” he said, noting that the ship recycling market has lagged behind other shipping sectors in adopting technology-driven solutions. As an example, he pointed to Chinese shipowners who use online platforms to conduct tenders, achieving top-dollar prices for their vessels.
BFG aims to replicate this success on a global scale, allowing sellers to engage in a transparent bidding process with carefully vetted cash buyers. Both sellers and buyers will benefit from the platform’s clarity, ensuring that ships are sold and dismantled in a way that maximizes value while adhering to high environmental standards.
Beyond Recycling: A Comprehensive Service Offering
BFG is not just a marketplace for selling ships; it offers a comprehensive range of services designed to facilitate the entire recycling process. From the moment a shipowner decides to recycle a vessel, they can rely on BFG’s platform to handle everything from securing bids to overseeing the ship’s dismantling in a certified green yard.
Among its standout features is the platform’s focus on compliance and safety. BFG provides access to companies offering value-added services like the preparation of Inventories of Hazardous Materials (IHM), which ensures that all hazardous substances on board are documented and managed responsibly. Furthermore, the platform offers post-sale monitoring services to verify that the recycling process is carried out according to the highest environmental standards.
“We arrange IHM assessments conducted by industry-leading providers and ensure that the ship is sent to a credentialed recycling yard committed to sustainable practices,” Goyanka said. “Our value-added service also includes unbiased, third-party monitoring of the recycling process, providing comprehensive reports to ensure the vessel is recycled according to green standards and HKC guidelines.”
Additionally, BFG employs rigorous Know Your Customer (KYC) procedures, ensuring that only buyers with proven track records and financial stability can participate in the bidding process. This adds an extra layer of security for shipowners, allowing them to place their ships on the platform with confidence.
Benefits for Brokers and Cash Buyers
Despite the platform’s digital nature, Goyanka was keen to stress that brokers will not be cut out of the equation. Instead, BFG is designed to complement their work by offering an additional tool for sourcing bids and selling ships in an efficient, transparent way. Brokers will continue to earn commissions from shipowners using the platform, maintaining their role in the ship recycling process.
Asked to summarize the platform’s key benefits, Goyanka highlighted its streamlined, end-to-end approach. “The platform provides a comprehensive solution for shipowners, streamlining the entire process from the moment they decide to recycle a ship to the final steps of responsible recycling,” he explained.
In a market where competition can drive up prices, BFG’s transparent bidding process also ensures that shipowners receive the highest possible value for their vessels. Only buyers who have passed BFG’s stringent KYC checks and provided financial deposits are allowed to participate in the bidding, further ensuring the integrity of the transaction.
A Growing Trend in Digital Ship Recycling Platforms
BFG’s launch comes as the second major digital platform in the ship recycling sector. In September 2023, GMS, a prominent cash buyer, unveiled the Ship Recycling Portal, a platform aimed at connecting Alang-based recyclers with cash buyers.
Despite the apparent similarities, Goyanka noted that the two platforms serve different purposes. “The platform we have developed is for the shipowners who are focused on selling their ships for green recycling. The GMS platform was developed for cash buyers reselling ships to Alang recyclers,” he explained.
With BFG now live, it marks a significant step toward modernizing an industry that has traditionally operated in the shadows. By offering a transparent, efficient, and environmentally responsible solution, Bid For Green looks set to lead the way in the digital transformation of ship recycling, aligning with global sustainability goals and the evolving needs of shipowners and brokers alike.
