Alang ship breaking yard


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A Business Ethics presentation on the ground realities of the Ship breaking industry in India.

Alang the biggest ship breaking yard in India, has broken down a record of 350+ ships in the past five years. This has resulted in job creation and revenue stream for many but as there are always two sides of a coin.

Alang a small town on the cost of Gulf of Cambay has been affected with the phenomenal growth of this Industry without proper regulation check people of Alang and surrounding areas are sitting on a ticking bomb which is bound to go sooner than later!

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Alang ship breaking yard

  1. 1. Alang Ship Breaking Yard Business Ethics and Corporate Governance SIBM – Bangalore Harbinder Singh Deepak Sharma Ashwin Shankar
  2. 2. Ship BreakingShip breaking is a type of ship disposal process involving the breakingup of ships for scrap recyclingMost ships have a lifespan of a few decades before there is so muchwear that refitting and repair becomes uneconomicalShip breaking allows materials from the ship, especially steel, to bereusedEquipment on board the vessel can also be reused
  3. 3. Ship Breaking IndustryUntil the late 20th century, ship breaking took place in port citiesof industrialized countries such as the UK and the USToday, most ship breaking yards are in developing countries, with thelargest yards at Gadani in Pakistan, Alang in India, Chittagong inBangladesh and Aliagain TurkeyThis is due to lower labor costs and less stringent environmentalregulations dealing with the disposal of lead paint and other toxicsubstancesChina used to be an important player in the 1990s. It is now trying toreposition itself in more environmentally friendly industries
  4. 4. Alang Ship Breaking Industry BackgroundAlang is a census town in Bhavnagardistrict in the Indian state of GujaratEver since its inception in 1982, Alanghas emerged as one of the choicestship-scrapping destinations for the shipowners around the worldThe importance of ship breaking as apotential source of raw material for there-rollers was recognized in early 80s
  5. 5. Alang – A Lucrative OptionThe beaching method depends on skilful harnessing of zero cost tidalenergy at sheltered coastal locations and warrants the least capitalinvestmentConsidering the favorable parameters for beaching method like high tidalrange, firm seabed, gentle seaward slope etc., it was decided to set-up aship breaking yard on the western coast of Gulf of Cambay near AlangvillageThe first vessel - MV KOTA TENJONG was beached at Alang on 13thFeb. 1983Since then, the yard has witnessed spectacular growth and has emergedas a leading ship Breaking Yard in the world
  6. 6. Ship Breaking Industry Concern AreasShip breaking activities are beingcondemned as the whole process entails aseries of risky tasks and as a depot ofhazardous substances, which pose threatsto the ambient environment and workingpeopleDepending on their size andfunction, scrapped ships have an unladedweight of between 5,000 and 40,000 tones(an average of 13000+)95% of which is steel, coated with between10 and 100 tones of paint containinglead, cadmium, organotins, arsenic, zinc andchromium
  7. 7. Alang Ship Breaking Concern AreasIn Alang old Ships containing these materials are being cut up byhand, on open beaches, under inhumane working conditionsShips also contain a wide range of other hazardous wastes, sealantscontaining PCBs; up to 7.5 tones of various types of asbestos; severalthousands liters of oil (engine oil, bilge oil, hydraulic and lubricant oilsand grease)Tankers additionally hold up to 1,000 cubic meters of residual oil. Mostof these materials are defined as hazardous waste under the BaselConventionExperts at home and abroad are unanimous in their opinion that shipbreaking is a high-risk industry
  8. 8. Hazards of Ship Breaking IndustryThe hazards linked to ship breakingbroadly fall into two categories: — Intoxication by dangerous substances — Accidents on the plotsA brief description on the commonhazards that may cause work relatedinjuries and death among ship breakersWaste components in the vessel or boardand waste and toxic substances that mayinherent in the vessel structureMost of the accidents are caused by toxicgas explosions
  9. 9. Alang Ship Breaking HazardsProblems generated by the insufficiencies of current ship-dismantlingpractices have consequences for not only the environment but also foroccupational safety and health of the workersBy occupying and expanding the areas required for breaking, thedismantling industry affects both the local surrounding, environmentand societyThe established local community may be relying on basic industriessuch as fishery and agriculture, hence conflict of interests has becomean issueDischarges and emissions to sea, ground and air cause both acute andlong term pollutionThe lack of containment to prevent toxins from entering theenvironment is a major concern
  10. 10. THANK YOU