Alang Ship Breaking YardBusiness Ethics and Corporate Governance

SIBM – Bangalore

Harbinder Singh

Deepak Sharma

Ashwin Shankar

Ship breaking is a type of ship disposal process involving the breaking up of ships for scrap recycling

Most ships have a lifespan of a few decades before there is so much wear that refitting and repair becomes uneconomical

Ship breaking allows materials from the ship, especially steel, to be reused

 Equipment on board the vessel can also be reused

Ship Breaking

Until the late 20th century, ship breaking took place in port cities of industrialized countries such as the UK and the US

Today, most ship breaking yards are in developing countries, with the largest yards at Gadani in Pakistan, Alang in India, Chittagong in Bangladesh and Aliagain Turkey

This is due to lower labor costs and less stringent environmental regulations dealing with the disposal of lead paint and other toxic substances

China used to be an important player in the 1990s. It is now trying to reposition itself in more environmentally friendly industries

Ship Breaking Industry

Alang is a census town in Bhavnagar district in the Indian state of Gujarat

Ever since its inception in 1982, Alang has emerged as one of the choicest ship-scrapping destinations for the ship owners around the world

The importance of ship breaking as a potential source of raw material for the re-rollers was recognized in early 80's

Alang Ship Breaking Industry

Background

The beaching method depends on skilful harnessing of zero cost tidal energy at sheltered coastal locations and warrants the least capital investment

Considering the favorable parameters for beaching method like high tidal range, firm seabed, gentle seaward slope etc., it was decided to set-up a ship breaking yard on the western coast of Gulf of Cambay near Alang village

The first vessel - MV KOTA TENJONG was beached at Alang on 13th Feb. 1983

Since then, the yard has witnessed spectacular growth and has emerged as a leading ship Breaking Yard in the world

Alang – A Lucrative Option

Ship breaking activities are being condemned as the whole process entails a series of risky tasks and as a depot of hazardous substances, which pose threats to the ambient environment and working people

Depending on their size and function, scrapped ships have an unladed weight of between 5,000 and 40,000 tones (an average of 13000+)

95% of which is steel, coated with between 10 and 100 tones of paint containing lead, cadmium, organotins, arsenic, zinc and chromium

Ship Breaking Industry Concern Areas

In Alang old Ships containing these materials are being cut up by hand, on open beaches, under inhumane working conditions

Ships also contain a wide range of other hazardous wastes, sealants containing PCBs; up to 7.5 tones of various types of asbestos; several thousands liters of oil (engine oil, bilge oil, hydraulic and lubricant oils and grease)

Tankers additionally hold up to 1,000 cubic meters of residual oil. Most of these materials are defined as hazardous waste under the Basel Convention

Experts at home and abroad are unanimous in their opinion that ship breaking is a high-risk industry

Alang Ship Breaking Concern Areas

Hazards of Ship Breaking Industry

The hazards linked to ship breaking broadly fall into two categories:

—Intoxication by dangerous substances

—Accidents on the plots

A brief description on the common hazards that may cause work related injuries and death among ship breakers

Waste components in the vessel or board and waste and toxic substances that may inherent in the vessel structure

Most of the accidents are caused by toxic gas explosions

Alang Ship Breaking Hazards

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 has become an issue

Discharges and emissions to sea, ground and air cause both acute and long term pollution

The lack of containment to prevent toxins from entering the environment is a major concern

• Video Link - http://www.youtube.com/watch?v=6gu7yvFD4oc

Video

THANK YOU