India’s Alang Ship-Breaking Yard Sees 13% Jump In Ship Arrivals After Years Of Decline

Alang, one of the world’s biggest ship-breaking yards in Gujarat, is showing signs of recovery after years of declining activity. Government data shows that the yard saw a 13% rise in end-of-life ship arrivals between April and August 2025.

In these five months, 44 ships with a total of four lakh Light Displacement Tonnage (LDT) were beached for dismantling and recycling. Last year, the same period saw 39 ships. July 2025 was the busiest month, with 12 ships arriving.

Despite this increase, the yard is still far from its full capacity. Alang handled 415 ships at its peak in 2011–12. In the 2024–25 financial year, only 113 ships arrived, the lowest in over 20 years.

During a visit to Bhavnagar, Prime Minister Narendra Modi highlighted Alang’s importance, praising its role in creating jobs and supporting the circular economy through steel recycling and raw material recovery.

However, ship-breakers on the ground report limited improvement. One shipbreaker said that both of his yards have no ships for recycling and described the situation as dull for over a decade. He estimated that Alang is currently running at only 25–30 percent of its operational capacity.

Industry experts point to market dynamics as the key reason for the slowdown. Dubai-based Global Marketing Systems Inc (GMS), the world’s largest buyer of ships for recycling, reported that strong freight rates have encouraged shipowners to keep older vessels in operation rather than selling them for dismantling. Extended global trade routes due to disruptions and geopolitical tensions have further increased demand for ships, delaying their retirement.

The international ship recycling market has also been weak, which reduces the financial incentive to sell vessels for dismantling. Additionally, Alang faces high fixed and compliance costs to meet environmental and safety standards, making recycling more expensive than in some competing countries.

Government support, however, has been significant. Customs duty reductions, lower plot rents, reduced labor cess, and reimbursement of up to ₹50 lakh per yard for achieving Hong Kong Convention compliance are part of the effort to boost the yard’s competitiveness. Analysts note that neighboring ship-breaking hubs often have lower regulatory requirements, making competition intense.

Experts see long-term potential in sustainability measures. Over 110 Alang yards are now Hong Kong Convention-certified, and independent audit programs are encouraging global shipowners to select environmentally compliant yards. This focus on compliance and transparency is expected to attract more recycling projects as older ships are eventually retired.

Reference: thehindubusinessline

Source: Maritime Shipping News