Skip to main content

Chinese competition: Gujarat's Alang, touted as Asia's biggest shipbreaking yard, witnesses 50% fall in business in a year

By A Representative
According to reports from Gujarat's Alang, touted by the state officialdom as Asia's biggest shipbreaking yard, the number of active plots which take up ship recycling in order to extract steel and other economically useful material has fallen by 50 per cent over the last one year. Worse, the number of vessels which beached at Alang for ship recycling dropped to the six-year old of 275, with just about 54 ships reaching the yard over the last three months.
The reason, say knowledgeable sources, is that the shipbreaking industry has lately been badly hit by a flood of cheap Chinese steel, on one hand, and new European Union (EU) environmental rules, which require not to send ships to recycling yards which do not comply with the norms set for workers' safety, on one hand, and environmental cleanliness, on the other.
"The European Commission's intention is said to be not to discourage vessel owners from using facilities outside of the EU but to discourage ship owners from using facilities which have proven to present very real danger to life and the general environment. Five people were killed and 10 injured after an explosion in a chemical tanker being dismantled in Alang last year
The European Commission will reportedly introduce tougher environmental controls some time after December. While not specifically banning beach scrapping, owners of ships registered in EU countries will have to scrap them at approved facilities, a move that could favour countries such as China and Turkey where ships are taken apart in docks.
Despite the fact that China's economy has slowed down, its steel exports soared 51 percent to a record 93.78 million tonnes last year. Even this year, the steel exports have gone up by nearly 30 per cent in the first five months of 2015. In the meanwhile, more modern yards in are coming up in China and Turkey, which are competing "polluting" and "unsafe" Alang and other yards in the South Asian region.
Ships sold to Alang, along with other recycling yards in Pakistan and Bangladesh, till now have controlled about 70 per cent of the market. Most of the ships in these countries, which reach the beach during high tide, are manually pulled by by labourers, mainly migrants, further into the yard.
Equipment, such as radars, engines - and even tables and chairs - is taken off and sold, while the steel from the hull is removed for scrap.
Alang has been providing employment to 60,000 workers, mainly migrants from other parts of India, with thousands more being in the job in spin-off businesses. While once the the 11 km road which takes one to Alang -- controlled by the state regulatory agency, Gujarat Maritime Board -- used to be extremely busy with trucks till a year ago, it is deserted now, with shops displaying everything from crockery to computers taken off the ships struggling to get supplies.
Truck drivers who used to make from five to seven trips a day to Alang do not get more than two calls a day for taking scrap from Alang now. And, with a sharp fall in steel prices, shipowners are getting about $3.6 million less for the 25,000 tonnes of recoverable metal from a typical iron ore or coal carrying ship than what they got a year ago.
The situation is not very different at the shipbreaking yard at Karachi, where the situation has been described as the worst in the last three decades. And the story in Bangladesh is similar. Three years ago there were about 80 yards, now they are down to 25 at Chittagong. Local shipbreakers are quoted as saying that everyone thought prices would improve, but now they are sitting on huge inventories.

Comments

TRENDING

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative   A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Budget 2026 focuses on pharma and medical tourism, overlooks public health needs: JSAI

By A Representative   Jan Swasthya Abhiyan India (JSAI) has criticised the Union Budget 2026, stating that it overlooks core public health needs while prioritising the pharmaceutical industry, private healthcare, medical tourism, public-private partnerships, and exports related to AYUSH systems. In a press note issued from New Delhi, the public health network said that primary healthcare services and public health infrastructure continue to remain underfunded despite repeated policy assurances.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram   In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Penpa Tsering’s leadership and record under scrutiny amidst Tibetan exile elections

By Tseten Lhundup*  Within the Tibetan exile community, Penpa Tsering is often described as having risen through grassroots engagement. Born in 1967, he comes from an ordinary Tibetan family, pursued higher education at Delhi University in India, and went on to serve as Speaker of the Tibetan Parliament-in-Exile from 2008 to 2016. In 2021, he was elected Sikyong of the Central Tibetan Administration (CTA), becoming the second democratically elected political leader of the administration after Lobsang Sangay. 

The Epstein shock, global power games and India’s foreign policy dilemma

By Vidya Bhushan Rawat*  The “Epstein” tsunami has jolted establishments everywhere. Politicians, bureaucrats, billionaires, celebrities, intellectuals, academics, religious gurus, and preachers—all appear to be under scrutiny, even dismantled. At first glance, it may seem like a story cutting across left, right, centre, Democrats, Republicans, socialists, capitalists—every label one can think of. Much of it, of course, is gossip, as people seek solace in the possible inclusion of names they personally dislike. 

Silencing the university: How fear is replacing debate in academic India

By Sunil Kyumar*  “Republic Day is a powerful symbol of our freedom, Constitution, and democratic values. This festival gives us renewed energy and inspiration to move forward together with the resolve of nation-building”, said Prime Minister Narendra Modi on January 26, 2026. On this occasion, the Prime Minister also shared a Sanskrit subhashita— “Paratantryābhibhūtasya deśasyābhyudayaḥ kutaḥ. Ataḥ svātantryamāptavyaṁ aikyaṁ svātantryasādhanam.”

Harsh Mander moves police over Assam CM’s remarks on Bengali-speaking Muslims

By A Representative   Peace and justice worker and writer Harsh Mander has filed a police complaint against Assam Chief Minister Himanta Biswa Sarma over public statements made on January 27 at an official event in Digboi, Tinsukia district, alleging that the remarks promote hatred, harassment and discrimination against Bengali-speaking Muslims in Assam. 

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.