Norwegian Firm Altera Infrastructure Fined EUR 695500 for Illegal Ship breaking in India
Altera Infrastructure, a Norwegian ship management company, has agreed to pay a fine of EUR 695,500 after being implicated in the illegal scrapping of vessels in India. The decision comes as the company seeks to avoid a trial, which was scheduled to begin this month. This case has drawn attention to the controversial practice of dismantling end-of-life ships in environmentally hazardous conditions in developing countries.
The penalty stems from an investigation into the dismantling of two shuttle tankers, Navion Britannia and Alexita Spirit, at the Alang shipbreaking yard in India. The case, which dates back to a raid on Altera’s offices five years ago, highlighted the company’s decision to circumvent regulations designed to ensure safe and environmentally sound ship recycling practices.
Avoiding Trial: A Costly Settlement
Altera’s decision to pay the fine marks the end of a prolonged legal battle with Norwegian authorities. The company had initially contested the fine, but its choice to settle signals an acknowledgment of the risks associated with proceeding to trial. The Norwegian economic crime authority, Økokrim, led the investigations, which revealed significant violations of European Union and international regulations.
The fine is a landmark ruling in the global fight against shipbreaking in hazardous conditions, particularly in countries where environmental and labor standards are poorly enforced. Økokrim’s investigation unveiled that Altera collaborated with cash buyer Wirana, a scrap dealer known for its involvement in similar controversies, to sell the tankers for dismantling. By doing so, Altera was able to secure a higher price for the vessels than it would have obtained by adhering to sustainable ship recycling practices.
Environmental and Human Costs of Shipbreaking
Alang, one of the largest shipbreaking yards in the world, has long been criticized for its unsafe and environmentally damaging practices. Ships are dismantled on beaches in the intertidal zone without proper containment, leading to pollution from hazardous materials such as heavy metals, asbestos, and oil residues. These pollutants contaminate coastal ecosystems, threatening marine life and local communities reliant on fishing.
The human cost is equally concerning. Workers at Alang and similar yards often face unsafe working conditions, including exposure to toxic materials, inadequate protective equipment, and high risks of injury or death. According to the International Labour Organization, shipbreaking is one of the most dangerous jobs in the world.
Ingvild Jenssen, executive director of the Swedish watchdog NGO Shipbreaking Platform, emphasized the broader implications of the case. “The investigations led by Økokrim revealed that Altera chose to dismantle the ships in India with the help of cash buyer Wirana, a scrap dealer already heavily fined in the Harrier case,” Jenssen stated. “This decision allowed Altera to profit significantly at the expense of workers’ safety and the environment.”
EU Rules and Global Compliance Gaps
The case against Altera has reignited discussions about the effectiveness of EU regulations on ship recycling. The EU Ship Recycling Regulation prohibits the export of EU-flagged ships for scrapping in non-OECD countries, yet many shipowners find ways to bypass these rules. Often, vessels are reflagged or sold to intermediaries who then facilitate their dismantling in countries like India, Pakistan, and Bangladesh.
Jenssen expressed hope that the fine against Altera would serve as a deterrent for other operators. “This ruling sends a clear message that such practices will not be tolerated,” she said. “However, enforcement of existing regulations must be strengthened to prevent companies from exploiting loopholes.”
A Call for Change
Environmental groups and labor rights advocates have welcomed the fine, viewing it as a step forward in the fight against exploitative and environmentally destructive shipbreaking practices. Shipbreaking Platform, which has long campaigned for safer and greener alternatives, stressed the need for shipowners to prioritize sustainability over profit.
“Scrapping ships in the intertidal zone without containment causes severe pollution and poses significant health and safety risks to workers,” Jenssen said. She urged companies to commit to sustainable ship recycling methods, such as those certified under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Industry Implications
Altera’s case highlights the financial and reputational risks shipowners face when engaging in unethical shipbreaking practices. While the EUR 695,500 fine is a significant penalty, critics argue that it pales in comparison to the profits companies can make by selling ships to the highest bidder, regardless of the consequences.
The case also underscores the role of cash buyers in enabling illegal practices. Wirana, the intermediary involved in the sale of Altera’s tankers, has been implicated in similar cases before, raising questions about accountability across the supply chain.
Moving Forward
As global trade continues to rely on maritime transport, the issue of ship recycling remains a pressing challenge. Advocates argue that stronger international cooperation and enforcement are needed to ensure compliance with environmental and labor standards.
For Altera Infrastructure, the fine represents a costly lesson in the importance of adhering to ethical and legal standards. It also serves as a reminder to the shipping industry at large that cutting corners in ship recycling can lead to severe consequences—not only for the environment and workers but also for companies’ bottom lines and reputations.
This case, while a victory for environmental justice, also highlights the ongoing challenges in ensuring that shipbreaking practices are safe, sustainable, and fair for all stakeholders involved.
