27 January 2012

Shipbreaking: Where It Is Done?

Ship Recycling is carried out primarily in India, China, Bangladesh, and Pakistan with Turkey performing just a handful of demolitions each year.


Alang is located on the coast of Bhavnagar district, in the Gulf of Cambay, 56 km (35 Miles) south of Bhavnagar City in the state of Gujarat, India. The Gulf of Cambay is known for its high tidal range, which is around 10 meters. The vast expanse of inter-tidal zone gets exposed during ebb tide, which makes it convenient for ship recycling activities, whereas the high tide makes it possible to accommodate big ships. Alang is the leading ship-recycling yard in the world catering to nearly 90% of India's ship recycling activity. The Ship recycling sector in India directly or indirectly affects more than 300,000 people.  

Green Recycling 
  • Continues to lead the Ship Recycling industry in both numbers and green capacity
  • Greater focus on green ship recycling. About 70 yards (37%) are fully ISO Certified
  • Most ship recycling capacity/yards in the world 
Key Elements 
  • Market Maker/Leader
  • Experienced Recyclers
  • Top Price Levels for Specialized Vessels
  • Premium for Bunkers, Non-Ferrous Items, Certain Machinery Items Such as Main Engine, Generators, etc.
  • Wide Variety of Buyers. Buyers range from ULCC buyers to the smallest fishing trawlers. Everything goes!
Best Market For
Specialized High Value Vessels such as:
  • Reefers
  • Passenger Ships (leading market)
  • Dry Vessels


The ship recycling yards near the port of Chittagong, Bangladesh's second-largest city, are the nation's main source of steel, employing more than 100,000 people. There are approximately 350 re-rolling mills located in greater Chittagong and Dhaka districts, which annually produces around 1.3 million tons of finished rods for the construction industry. This industry completely depends on the ship-recycling yards for raw materials. About 100,000 workers are involved in the ship recycling industry directly and indirectly. Currently these activities are conducted by some 20 yards in an area of approximately eight square kilometers in Chittagong.

Key Elements
  • (Was) Leading Recycler of Tankers
  • Beginning to focus on green ship recycling issues
  • Several yards now ISO Certified
  • Norwegian grant and IMO pushing for training and improvements
  • Increasing number of regulations
  • On and off market
  • Financial (USD) crisis
    • Loans to recyclers
    • International credits
  • Difficult market to deliver ships promptly
  • Embroiled in a legal battle between the Bangladesh's Environmental Lawyers (BELA) and local ship recyclers (BSBA)
  • Steel from ships critical for domestic growth and consumption
Best Market For
  • Large LDT tonnage


Pakistan's ship recycling industry operates on the Gadani beach in the Balochistan's coastal area. The beach is about 50 km northwest of Karachi. Today about 200,000 people earn their living from this industry, either directly or indirectly.

Key Elements
  • 2010 was the best year for the recycling industry
  • Increase in Capacity
  • Push for improvements.. “partnering” with Turkey
  • Prompt Delivery Due to No Beaching Tides
  • Low D/A
  • Gas Free for Men Entry Only Required
Best Market For
  • Tankers
  • Small LDT Under Tow Vessels
Green Recycling
  • Only one yard currently has ISO Certification.


Ship recycling in China is performed in two locations—North (Shanghai area) and South (Xinhui area). The yards use dock or quay-based facilities. This is the only country where ships are not beached. There are approximately 90 breaking yards dotting the Pearl and Yangtze rivers.

In 2003, China broke the USD 300/LT LDT price barrier for the first time in demo history! 

China has been a choice for owners wanting green recycling, but with India catching up fast, competition is getting tougher as more and more owners are opening up to India for their green recycling needs.

  • 2010 has seen a significant decline in volume of vessels recycled
  • Leading destination for owners wanting green recycling, CAPES and other vessels discharging in China
Key Elements
  • Advanced ship recycling market
  • Large and emerging Capacity
  • Volatility
  • High D/A Costs
  • Lower than Indian Sub-Continent prices
  • Not a keen buyer of Specialized Ships
Best Market For…
  • Local Vessels
Green Recycling
  • Fifteen yards have ISO certifications.


Turkey is the ONLY ship recycling nation that has ratified the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.

  • A sizeable rise in volume of vessels in 2010
  • Turkey is a logical choice for Naval, State and EU flag vessels in the EU region that by law require recycling only in the OECD region
Key Elements
  • Member of OECD
  • Small LDT and under tow vessels
  • Key market for Green ship recycling
  • Low Prices
Best Market For
  • Small and/or naval vessels located in Europe/Med

Source: GMS.

No comments: