Alang scrapyards booming

The global slump in the shipping industry is turning out to be a boon for the ship breaking industry in Alang, according to local industry sources, around 100 ships have been beached for dismantling in the last two months and the trend is likely to continue because of global recession. “Alang is all set to set a new record in scrapping largest number of ships in 2009 as more than 600 ships are available for dismantling in the international market due to slowdown in the global trades,” said Vishnu Gupta, President of Alang Ship Breakers’ Association. He added that ship breaking industry will provide cheaper steel to the industry.

As a result, around 80 plots have become operational at Alang’s ship breaking yard where, three months back, the industry was finding it difficult to survive and only 30-35 plots were being used. Based on the data provided by Gujarat Maritime Board (GMB), in last 45 days, 57 ships have been beached at Alang yard of which 15 are over 10,000 dwt and two are over 20,000 dwt. Most of the other vessels are above 5,000 dwt.

Arrival of large number of ships at Alang also means increasing revenue of GMB, which charges Rs 100 per ltd (light displacement tonnage) per ship.

Arrival of increasing number of ships at Alang is also having a positive impact on the local industry including oxygen refilling plants and steel re-rolling mills in and around Bhavnagar.