India’s Alang Shipyard Faces Declining Activity as Global Shipping Industry Changes

Alang, India, once a bustling hub of ship recycling, is now a shadow of its former self, struggling to maintain its position as the world’s largest ship-breaking yard. As global shipping trends shift and economic factors converge to limit the number of vessels arriving at its shores, the livelihood of countless workers and the local economy is increasingly under threat. The challenges faced at Alang not only reflect local job market dynamics but also underscore broader international trade complexities affecting the ship recycling industry.

Alang, located in Gujarat, India, serves as the world’s largest ship-breaking yard, a title it garnered through decades of operation marked by extensive recycling of ocean-faring vessels. Ramakant Singh, a 47-year-old worker at the site, reminisces about more prosperous days when ships would arrive in droves, transforming Alang’s skyline into a busy port of decommissioned giants. However, recent years have witnessed a significant decline in ship arrivals, forcing many workers to seek opportunities elsewhere.

Once an integral part of India’s ship recycling industry, Alang has dismantled more than 8,600 vessels, contributing nearly 98 percent of the nation’s ship recycling and about one-third of global volume. The unique coastal characteristics of Alang made it an ideal choice for beached vessel dismantlement since the 1980s. Yet the frequency of these ship arrivals has diminished alarmingly in the past decade, with the industry facing a myriad of challenges.

In past peak years, the yard processed up to 415 ships annually, but competition from neighboring countries such as Bangladesh and Pakistan, which offer more lucrative rates for ship dismantling, has eroded Alang’s market position. Factors like post-COVID demand surges in shipping and heightened freight rates due to global disruptions, including geopolitical conflicts, have pushed ship owners to retain older vessels for longer periods, rather than sending them off for dismantling.

Compliance with international safety regulations has transformed Alang, positioning it as one of the most environmentally responsible ship recycling centers in the developing world. Following India’s implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, yards have invested heavily to upgrade their operations, albeit these necessary improvements have raised operational costs considerably.

The implications of Alang’s downturn extend beyond its sandy beaches; surrounding industries that depend on scrap steel and recycled materials are also feeling the strain. Local businesses that once thrived on accessing ship-derived materials now struggle as supply dwindles.

Moreover, the social fabric woven around Alang has frayed, as the workforce—a significant portion of which comprises migrants from less affluent Indian states—loses a reliable source of employment. As the number of operational ship-breaking yards dwindles, Alang’s workers face uncertainty about their future, often compelled to leave in search of work elsewhere.

Despite these struggles, safety conditions have notably improved at the yard, with the introduction of training and protective gear now commonplace, making the work environment significantly safer than it used to be. However, with job opportunities dwindling, many workers remain apprehensive about their futures, reliant on the unpredictable arrival of ships to provide the work they so desperately need.

As Alang navigates these challenges, the fate of its ship-breaking legacy remains uncertain, even as the industry continues to serve as a crucial component of the global maritime economy. The need for sustainable solutions is more pressing than ever, as stakeholders contend with the interplay of environmental responsibility and economic viability that will determine the future of ship recycling in India.

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