Alang, the world’s largest ship-recycling yard located in India’s western state of Gujarat, is facing a severe downturn after decades as a global hub for dismantling end-of-life vessels.

Once responsible for nearly 98 percent of India’s ship recycling and about one-third of the global total, Alang has seen ship arrivals fall dramatically over the past decade. Of the 153 ship-breaking plots developed along its 10-kilometre coastline, only around 20 remain operational, most running at just 25 percent capacity, News.Az reports, citing Al Jazeera.

Industry data shows that 2011–12 was Alang’s peak year, with a record 415 ships dismantled. Since then, volumes have steadily declined. In 2024, India dismantled 124 ships, down from 166 in 2023, while competing yards in Bangladesh, Pakistan and Türkiye saw growth.

One major reason is the global shipping boom following the COVID-19 pandemic. High freight rates and disrupted trade routes — driven by conflicts such as the war in Gaza, Red Sea attacks, and the Russia-Ukraine war — have made it more profitable for shipowners to extend the operational life of ageing vessels rather than scrap them.

“When shipowners are earning well, they don’t scrap vessels,” said Haresh Parmar, secretary of India’s Ship Recycling Industries Association.
Alang’s challenges are also linked to stricter environmental and safety regulations. After India joined the Hong Kong International Convention (HKC) in 2019, ship-breaking yards were required to invest heavily in pollution control, hazardous waste management and worker safety.
While these reforms have made Alang one of the most compliant ship-recycling hubs in the developing world, each yard reportedly invested between $560,000 and $1.2 million, significantly increasing operating costs.

As a result, Alang offers lower prices to shipowners — about $500–510 per light displacement tonne (LDT) — compared with $540–550 in Bangladesh and $525–530 in Pakistan, pushing business away.

The decline has hit the wider regional economy. Hundreds of businesses selling salvaged ship materials — from steel and machinery to household items — have seen demand collapse. Steel shortages have disrupted furnaces, rolling mills and manufacturing units in nearby Bhavnagar.

Employment has also dropped sharply. At its peak, Alang employed over 60,000 workers; today, fewer than 15,000 remain, according to labour unions. Many migrant workers now only return when ships arrive, seeking other work elsewhere in the meantime.

Despite improved safety and environmental standards, industry leaders warn that without policy support or global market shifts, Alang’s future remains uncertain.

“The work is safer now,” said Ramakant Singh, a longtime ship-breaker. “But safety doesn’t help if there is no work. Everything depends on whether the next ship arrives or not.”
Source: News.Az