Bloomberg|UTV EXCLUSIVE : Amidst the fears of Global Economic Turmoil, Shipbreaking yard in India at Alang in Bhavnagar District in Gujarat state is all set to demolish 400+ vessels, in financial year 2011-12.
New vessels ordered in year 2006-2007-2008 are all set for deliveries by 2012, adding Global Shipping capacities by 25%, whereas on other side reducing freight cost and global trade going slow will give a sure-shot benefit to the ship-breakers in India. As a result more than 180 Million Gross Tonnage of Global Shipping Capacities mainly comprising of vessels old than 20 years will be available for demolition activities.
Regulatory framework in Bangladesh and high cost of breaking ships in China makes Alang a hot-favorite destination for ship breaking, especially when on one hand ban on iron-ore mining in India and an ecosystem available for consumption of scrap steel from demolished vessels in the nearby emerging rolling mills cluster surrounding Bhavnagar-Alang-Shihor area, is all set to pump-in adrenalin rush in the Ship breaking activities in India. However, depreciating rupee is all set to spoil the sport, especially raising bars of the input cost for purchasing vessels for demolition activities, as such purchases are imported ones.
Source: YouTube. 13 December 2011
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