GMS Secures World’s First ‘Ready for Recycling’ Certificate Under Hong Kong Convention: Marking a Milestone for Global Ship Recycling
By Mahebub Kureshi, July 29, 2025
In a landmark development for the global maritime and ship recycling industries, GMS Inc., the world’s largest buyer of ships for recycling, has announced that it has been issued the first-ever International Ready for Recycling Certificate (IRRC) since the enforcement of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) earlier this year.
“The selection of Leela Responsible Recycling LLP in Alang for the R Pisces project is a strong affirmation of how far India’s ship recycling industry has progressed. Alang, today undergoing a significant transformation—one rooted in accountability,
sustainability, and international compliance. That a project of such global significance has been entrusted to our yard speaks volumes about the strides we have taken. Leela Group has worked tirelessly to set new benchmarks for responsible recycling, earning the HKC Statement of Compliance (SoC) and aligning our practices with the highest international standards. We see the R Pisces project not just as another vessel to be dismantled, but as a defining moment—one that will showcase the real-world implementation of HKC principles. This pilot is a testament to what is possible when industry embraces reform and responsibility.”
— Mr. Komalkant F. Sharma, CMD, Leela Group of Ship Recycling
The Liberian Registry granted the certificate to a 263-meter-long bulk carrier named R Pisces, a vessel built in 2004. According to marine traffic data from VesselFinder, R Pisces was recently en route to the port of Galle, Sri Lanka, presumably on its final voyage toward responsible dismantling.
The IRRC represents a significant step toward the effective and verifiable implementation of the HKC, which officially entered into force on June 26, 2025. GMS, based in the United Arab Emirates, described the event as a “milestone in the journey toward sustainable ship recycling practices” and highlighted the achievement as a product of global collaboration and rigorous compliance.
“This development places both GMS and the Liberian Maritime Authority at the forefront of regulatory implementation under the new international framework,” the company said in an official statement.
What the IRRC Means
The International Ready for Recycling Certificate is a newly operational regulatory tool established by the HKC. It certifies that a vessel meets all prerequisites required for safe, environmentally sound, and transparent recycling. These include:
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A detailed Inventory of Hazardous Materials (IHM) on board.
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An approved Ship Recycling Plan (SRP).
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The selection of a certified and authorized recycling facility.
In the case of R Pisces, that facility is Leela Responsible Recycling LLP, located in Alang, Gujarat, India — home to one of the world’s largest shipbreaking yards.
“We are honored that R Pisces will be recycled at our facility as part of the first IRRC issued under the Hong Kong Convention,” said Vishaal Raj Soni, CEO of the Leela Group of Ship Recycling Yards.
“This reflects the effectiveness of a collaborative approach between shipowners, cash buyers, flag administrations, and certified recycling facilities.”
He further affirmed that Leela remains committed to maintaining the highest standards of health, safety, environmental protection, and regulatory compliance, setting a template for how ship recycling can meet international norms.
Liberia at the Helm of Regulatory Change
The issuance of the IRRC by the Liberian Registry also marks a notable moment for the flag state. As one of the world’s largest shipping registries, Liberia’s active participation signals a readiness among major maritime nations to enforce global norms for end-of-life vessels.
“This certification marks a new phase for Liberia and for ship recycling worldwide,” commented Sunil Jaitly, Managing Director of the Liberian Registry in the Middle East.
“We remain committed to supporting practical and enforceable international regulation that improves standards across the sector.”
Liberia’s involvement may catalyse other registries to adopt similar approaches, helping to eliminate loopholes and non-compliant recycling practices that have long plagued the industry.
A Collaborative Win for Sustainable Shipping
This achievement underscores the importance of multi-stakeholder cooperation in navigating the complex landscape of maritime regulations. According to Faidon Panagiotopoulos, Senior Trader at GMS, the issuance of the IRRC is a clear demonstration that responsible ship recycling is not only feasible but scalable.
“This first IRRC issued under the Convention is a significant step forward for ship recycling. It demonstrates that regulatory compliance and responsible asset disposal are achievable through preparation, technical knowledge, and cooperation between all parties involved,” Panagiotopoulos stated.
Such cooperation—spanning shipowners, cash buyers, flag states, and recyclers—is at the heart of the HKC framework, which seeks to build a transparent and sustainable end-of-life process for vessels globally.
Understanding the Hong Kong Convention
Adopted in 2009 by the International Maritime Organization (IMO), the Hong Kong Convention was developed to address the grave environmental and human rights concerns associated with traditional shipbreaking, especially in South Asia.
It took 16 years of international negotiation and capacity building before the Convention could finally enter into force, following ratification by a sufficient number of member states representing a required portion of global merchant shipping tonnage.
Key pillars of the Convention include:
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Obligations on shipowners to maintain an up-to-date IHM.
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Pre-recycling notification and planning.
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Certification and auditing of Ship Recycling Facilities (SRFs).
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Mandatory national legislation in participating countries.
With its enforcement now in effect, the HKC aims to usher in a new era for ship recycling—one where environmental responsibility, safety, and human dignity are embedded in the process.
What This Means for the Industry
The successful issuance of the IRRC and the selection of an HKC-compliant facility signal a broader shift within the maritime world. With many vessels approaching the end of their life cycles amid changing fuel norms, decarbonization drives, and fleet renewals, sustainable recycling is set to become a central pillar of the shipping lifecycle.
This transition also provides an opportunity for traditional recycling nations like India, Bangladesh, Pakistan, and Türkiye to modernise their infrastructure and regulatory oversight, supported by certification bodies and flag states.
While the R Pisces may be a single vessel, the significance of this case is far-reaching. It represents the first visible output of a system that has been in development for more than a decade. If executed as intended, it could serve as a blueprint for thousands of ships to follow in the coming years.
With the first IRRC now issued and a certified recycling plan in motion, stakeholders across the shipping, regulatory, and recycling spectrum have reason to be optimistic.
“This achievement is not just a certificate,” said Vishaal Raj Soni.
“It represents a benchmark for how the future of ship recycling should be approached.”
As the world watches the R Pisces enter the final stage of its maritime journey, the spotlight will also be on whether this first case truly sets a new global standard, or remains an isolated success. The industry now has the tools. The next challenge lies in consistent and widespread implementation.
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