India has about 30 to 35 ship recycling capacity of the world.
India has got an important achievement. The country has reached the top in terms of recycling of ships. The country’s share in this matter in the entire world has reached 35.4 percent. Earlier it was around 30 percent. India will recycle 29.9 lakh grass tonnes in the year 2025 and 18.6 lakh grass tonnes in the year 2024. Let us try to understand how important this achievement is and why? Where do the rest of the countries of the world stand in this matter?
When a large ship completes 25 to 30 years of service, it becomes unsafe and expensive to operate it at sea. In such a situation that ship is retired. The process of reusing the iron and other valuables from this old ship is called ship recycling or ship breaking. Today India has become the undisputed king of the world in this field.
What is ship recycling?
Ship recycling means dismantling a huge ship in a safe manner. In this, the iron of the ship is cut and melted. The ship’s furniture, engines, electrical equipment and other fittings are disassembled. This is a complex process because both environment and safety have to be taken care of.
Recycling takes place in several stages
Recycling a ship requires going through several steps.
- First the ship is brought to shore. When the tide comes in the sea, the ship is brought towards the shore at full speed so that it gets stuck in the sand.
- The oil, diesel, hazardous chemicals and waste present inside the ship are taken out cleanly. This step is very important to protect the environment.
- After this, skilled workers start cutting the upper part of the ship with the help of gas cutter. Gradually the ship is divided into small pieces.
- The extracted material is sorted. Iron is sent to steel mills, while electrical goods and furniture are sold in the market.
How did India become world number one?
India has the world’s largest ship breaking yard, located in Alang, Gujarat. Some major reasons behind India becoming number one are given below.
- Hong Kong Convention: India has promoted safe and environment-friendly recycling by adopting international standards. Most of the ship breaking yards in India are now equipped with global certifications. India has recently invested Rs 53.5 crore for the upgradation of 115 yards.
- Cheap Labor and Skills: India has skilled and cheap labor available for this work. Indian workers are unmatched in cutting heavy ships.
- Huge demand for steel: Development work is happening rapidly in India, due to which the demand for steel is very high. Recycled ships meet about ten percent of India’s total steel demand.
- government policies: After the implementation of the Ship Recycling Act 2019, this industry has got legal strength. This has increased the confidence of foreign companies on Indian yards.
Changing standards of environment and safety
In ancient times, ship breaking was considered polluting and dangerous. Now times have changed. Emphasis is being laid on green ship recycling. This means that oil or waste from the ship is not allowed to fall into the sea. Workers are given safety kits and risk is assessed at every step.
Contribution of recycling to the economy
The ship recycling industry not only produces iron, but it also employs millions of people. Thousands of families are directly and indirectly living in Alang. This industry also contributes millions of dollars to India’s GDP. Additionally, it is a great way to conserve natural resources because recycling iron from ships is cheaper and less polluting than digging iron from the ground.
What is the difference between GT and LDT?
In the field of ship recycling and maritime trade, GT and LDT are the two most important scales, which reflect the different weight of the ship. GT or gross tonnage is used to measure the total volume of all enclosed internal parts of a ship, primarily used to determine port duties, registration fees and safety regulations. On the other hand, LDT or Light Displacement Ton is the actual weight of the ship when it is completely empty, i.e. without any fuel, cargo, water, passengers or cargo. In simple words, LDT is the net weight of iron and steel of the ship, and on the basis of this weight the price and recycling price of the ship is decided at the ship breaking yard.
When a ship completes 25 to 30 years, it becomes unsafe and expensive to operate it at sea. Photo: Getty Images
Top 5 countries in the world in ship recycling
Most of the ship recycling work takes place in South Asia. Based on the trends and available data for the year 2023-24, the top five countries of the world are as follows.
- India: India has about 30 to 35 ship recycling capacity of the world. There are more than 150 active yards in Alang, Gujarat.
- Bangladesh: Bangladesh is in second place. There are big yards in Chittagong, Bangladesh. Its global share is about 25 to 28 percent. The demand for iron is very high here.
- Pakistan: The Gadani yard here was once the largest yard in the world. At present, it is in third place with about 15 to 18 percent capacity. However, due to the economic crisis, some fluctuations are being seen in the pace of work here.
- Türkiye: Türkiye is a favorite destination for old ships of European countries. The environmental rules here are very strict. Türkiye recycles in the Izmir region and has about 7 to 10 percent share in the global market.
- China: This country has reduced recycling of foreign ships in the last few years. It is now focusing only on its own country’s ships. Its global share is currently limited to between 3 to 5 percent.
Future challenges and opportunities
The major challenge facing the ship recycling industry is to balance technology and the environment. As electric ships and new fuel ships arrive, the recycling process will also have to change. India now aims to take its share to 50 percent in the next few years. The Government of India is further strengthening the port infrastructure. In the coming time, huge container ships from Russia and Europe will also come to India for recycling. A report by the Baltic and International Maritime Council says that more than 16 thousand ships across the world are going to retire in the coming ten years. Recycling of all these is also certain. Currently, India has the capacity to recycle five to six hundred ships.
Ship recycling is a great example of a circular economy. India has proved through its hard work and policies that we can not only dismantle old ships but can also prepare raw materials from them to build a new India. This industry is a big step towards self-reliant India. India becoming number one is a symbol of its growing stature in global trade and maritime economy.
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