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Case Study on AlangShip Recycling Yard, India 28th

November 2011

Submitted By: Kannan Unni TS MBA 10032, Section - B

AlangShip Recycling Yard, India

Alang is a small town located in Bhavnagar district in the Indian State of Gujarat. What had

made it famous is that it is the largest ship salvage dock where approximately 50% of the total

number of ships dismantled every year are recycled. The yards are located on the Gulf of

Khambat, 50 kilometers southeast of Bhavnagar. Large supertankers, car ferries, container ships,and a dwindling number of ocean liners are beached during high tide, and as the tide recedes,

hundreds of manual laborers dismantle each ship, salvaging what they can and reducing the rest

into scrap. Tens of thousands of jobs are supported by this activity and millions of tonsof steel are recovered. After the recovery process is done these materials are recycled and sold

out to companies and public. Almost every component of the ship that gets converted would find

its buyers. So it is technically a very important industry for the people of this locality. Now how

is becomes strategically important is that there are thousands of business that depends on the shipyard and its recycling plants and thousands of people are dependent on it. So there is no doubt

that Alang sums up their pockets for their daily bread. But the question that environmentalists

ask is whether these people know what they are dealing with or do they know the consequence

and the effect that these materials and process have in their lives and to the environment in thelong run? Well the point is when it is a question about hunger; ignorance is bliss and for the

same reason majority of the population doesnt know what lies beneath.

Clemenceau Controversy

The French air craft carrier was decommissioned in the year 2004 and the same year the ship set

sail to Alang coast for dismantling. As soon as the world knew about it Green Peace protested

Frances idea to outsource the scrapping of 27,000 ton warship. The reason they described wasthat the ship had excessive deposits and used toxic substances such as asbestos, PCBs- printed

circuit boards, lead, mercury and other toxic materials and chemicals and therefore it is an open

violation of the Basel Convention of 1992. The treaty was brought in to place to restrict the

movement of Hazardous wastes and their disposal by the nations but especially to preventdeveloped countries from dumping their wastes in the developing countries. The ship reached

Indian coast on 6th

January 2006 and Supreme Court of India issued a temporary ban againstentering the port post which the ship left India and headed for Egypt. This was when Alang was

brought in to lime light and Clemenceau was just one among the hundreds of ships that gets

dismantled there every year.

The process

The ships are brought to the dock during high tides and then gets grounded. The workers

dismantle the ship and converts it in to scrap which are then segregated and are recycled. Nowthere are many companies which communicate about the available materials to the rest of the

world and purchases are made. A large portion of the materials are sold off but what remains onthe soil and water are oil, mercury, lead and asbestos. The contamination of natural resources by

these materials can have heavy implications on the lives of people who are dealing with it dailyand the environment. Environmentalists note that before ship breaking began there in June 1983the beach at Alang was pristine and unspoiled. However, locals say that the work provides a

reasonably paid job by local standards, with a steady income used to support their families. Allsaid it is also important to note the concerns of the workers of the industry and the residents of

Alang.

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Case Study on AlangShip Recycling Yard, India 28th

November 2011

Submitted By: Kannan Unni TS MBA 10032, Section - B

The Concerns

The salvage yards at Alang have generated controversy about working conditions, workers'

living conditions, and the impact on the environment. One major problem is that despite many

serious work-related injuries, the nearest full service hospital is 50 kilometers away in

Bhavnagar. Alang itself is served by a small Red Cross hospital that offers only limited services.Insufficiencies related to the adopted procedures include, but may not be limited to precautions,

training and awareness and to facilities available. Furthermore, the implementation of measures

for improvement will affect not only the ship-dismantling facility but may also raise issuesrelating to procedures prior to dismantling, as well as to the destiny of the waste or material

streams derived from the extraction process. Problems generated by the insufficiencies of current

ship-dismantling practices have consequences for not only the environment but also for

occupational safety and health of the workers.

By occupying and expanding the areas required for breaking, the dismantling industry affects

both the local surrounding, environment and society. The established local community may be

relying on basic industries such as fishery and agriculture, hence conflict of interests may

become an issue. Discharges and emissions to sea, ground and air cause both acute and long termpollution. The lack of containment to prevent toxins from entering the environment is a major

concern.

The Future

Japan and the Gujarat government have joined hands to upgrade the existing Alang shipyard.

The two parties have signed a Memorandum of Understanding, which focuses on technology

transfer and financial assistance from Japan to assist in the upgrading of operations at Alang tomeet international standards. This is a part of the Delhi Mumbai Industrial Corridor, a larger

partnership between the Japanese and Gujarati governments. Under this plan, Japan will address

the environmental implications of ship breaking in Alang, as well as devising a marketingstrategy. The project is to be carried out as a public-private partnership. The project's aim is tomake this shipyard the largest International Maritime Organization-compliant ship recycling yard

in the world.

All said and done how far are these steps and measures going to help the workers and theenvironment is a question that still remains. What needs to be done is to create awareness

amongst the workers about what they are dealing with and how it is affecting their life and

environment. The companies have to make sure that the working conditions for them areimproved considerably to ensure high safety standards and living conditions. Any steps needed

to help the industry flourish could be done provided the companies and the government keep

environment and people in mind. Because then and only then the process could be called

sustainable development.

Web-Links that helped

http://en.wikipedia.org/wiki/Alang

http://www.alangtoday.com/aboutalang.asp

http://www.globalsecurity.org/military/world/india/alang-sby.htm