As a result of cheap Chinese steal prices and new environmental regulations, which are due to come into force later this year, more than half of ship-breaking yards have shut in the last two years in Alang, situated along India’s Arabian Sea coast, with business being pushed to countries such as Turkey and China, according to gCaptain.
This news comes after the Japanese government and stakeholders expressed their support in helping certain ship recycling yards in Alang, which included 14 Japanese delegates offering their encouragement to India in meeting the Hong Kong Convention’s (HKC) standards.
Commenting on the decline of Indian ship-recycling, Shoaib Sultan, owner of Horizon Ship Recycling in Karachi, said: “It has always been a cyclical business but people who have been in this industry tell me this is the worst in 30 years.”
Zahirul Islam, Director of PHP Shipbreaking and Recycling Industries in Chittagong, said: “Three years ago there were about 80 yards, now it’s down to 25. I think another 10-15 yards will go.”
In other news, ship-recycling is making headway, after European ship-owners called for an approval of the 2009 IMO HKC to ensure that ships do not pose any unnecessary health and safety risks to humans or the environment.