Alang, India – Along the sun-baked shores of the Arabian Sea in Gujarat, Ramakant Singh gazes out at a barren horizon. At 47 years old, he reflects on a time when vessels thrived at the world’s largest ship-breaking yard, Alang. “In the past, ships lined up here like buffaloes before a storm,” he recalls. “Now, it’s a rare sight; we count arrivals on our fingers.”
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Ramakant has spent two decades at Alang, tirelessly dismantling everything from oil tankers to cargo ships, which used to arrive from distant shores including Europe and other regions of Asia. In the 1980s, Alang became the backbone of India’s ship recycling industry. With its favorable tidal patterns and sloping beaches, dismantling vessels became both an efficient and cost-effective endeavor.
Over the years, more than 8,600 ships, totaling approximately 68 million tonnes of light displacement tonnage (LDT), have been taken apart here. Alang accounts for nearly 98% of India’s ship recycling market and contributes about a third of the global volume.
Today, however, a fleet of aging cargo ships, cruise liners, and oil tankers are nearing their end of life. Of the approximately 109,000 vessels currently in service, almost fifty percent are over 15 years old. Annually, close to 1,800 ships are deemed unfit for sailing and sold for recycling, funneled through international cash buyers based in bustling shipping hubs like Dubai, Singapore, and Hong Kong. These intermediaries then transfer the vessels to dismantling yards in South Asia, concluding the life cycle of these ships.
In Alang, ships are brought ashore during high tide in a process referred to as beaching. Once grounded, a workforce cuts the vessels apart piece by piece, retrieving valuable steel, pipes, and machinery. Nearly everything from cables to cabinets finds a second life in India’s construction and manufacturing sectors.
Yet, over the past decade, arrivals at Alang have drastically decreased. The skyline, once adorned with towering ship hulls, now reveals only a handful of cruise ships and cargo carriers. “We had a strong workforce when business was good,” remarks Chintan Kalthia, who operates one of the few active yards. “Now most have left; it’s only when a new ship arrives that some return to Alang. My own operations have dropped to 30-40% of what they used to be.”
Data from India’s Ship Recycling Industries Association indicates that the barometer of success peaked in 2011-12, with Alang dismantling a record 415 ships. Since then, the decline has been steep. Out of the 153 operational plots along the 10 km coastline, only about 20 remain active, and they barely function at a quarter of their capability.
“The situation is influenced by multiple factors,” notes Haresh Parmar, secretary of the Ship Recycling Industries Association (India). “A significant issue is that shipowners globally are postponing the retirement of their old vessels. After COVID, there’s been an uptick in demand, leading to soaring profits in shipping. Owners prefer to keep their ships operational rather than dismantle them.”
Various global events have disrupted trade routes, enhancing freight rates sharply. The ongoing war in Gaza has triggered a security crisis that forced ships to alter their routes, avoiding the Suez Canal in favor of longer trips around the Cape of Good Hope. Additionally, a United Nations Conference on Trade and Development (UNCTAD) analysis highlighted the upward spike of over 60% in marine fuel costs due to the Russia-Ukraine conflict, adding strain to operational budgets.
When shipping profits soar, owners opt against scrapping their ships, leading to empty yards in Alang, according to Parmar. “We stand ready, yet our yards remain vacant.”
The Burden of Compliance
But Alang’s challenges extend beyond a lack of ship arrivals. Since India embraced the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) in November 2019, the industry has undergone significant changes. Compliance necessitated yards to enhance infrastructure, implement pollution controls, contain hazardous materials, and train workers, demanding substantial financial investments.
Establishing these standards elevated Alang-Sosiya Ship Recycling Yards (ASSRY) to one of the most compliant ship-recycling clusters in developing nations, with over 106 yards achieving HKC Statements of Compliance. However, the financial burden of meeting these criteria has raised operational costs significantly, affecting competitiveness. Each yard had to invest between $0.56 million and $1.2 million.
“It’s akin to comparing a roadside eatery to an international chain; the latter offers a polished experience but at a premium,” explains Kalthia, whose facility was the first in India to achieve HKC compliance in 2015. “While compliance enhances safety and international standards, it adds financial pressure.”
This financial strain hampers Alang’s ability to compete effectively. Neighboring markets like Bangladesh and Pakistan have begun offering better rates — $540-$550 per LDT in Bangladesh, and $525-$530 in Pakistan compared to Alang’s $500-$510 per LDT, further threatening its operations.
Statistical data illustrates this downturn: ships decommissioned in India dropped from 166 in 2023 to 124 in 2024, while dismantling figures in Turkey and Pakistan witnessed increases, signaling a shift in global ship recycling dynamics.
Impact on Supporting Industries
Alang’s influence extends far beyond ship-breaking; it supports an intricate recycling ecosystem vital to the local economy. The neighboring town of Trapaj hosts an array of makeshift shops selling everything salvaged from decommissioned vessels. From rusted chains to luxury items, it caters to diverse customers, but business is waning.
Ram Vilas, who runs a ceramic shop, notes that demand has plummeted. “We used to thrive on sales to commercial clients across Gujarat. Now, with fewer ships, our shelves are largely empty. The vibrancy is gone,” he explains.
The decline at Alang reverberates throughout connected sectors. Specialized waste management facilities and over 60 induction furnaces that convert reclaimed steel into construction materials face operational challenges as the supply dwindles. “Workers across various sectors, from rolling mills to transportation, are grappling with job losses,” remarks Parmar.
In Bhavnagar, Jigar Patel, who runs a flange manufacturing unit, explains the impact on his business. “I launched my operation in 2017 with an eye on easy access to steel from Alang, but shortages have forced me to source materials from far away, increasing costs and complicating processes,” he says.
For many workers at Alang, the situation is equally concerning. Most are migrants from economically disadvantaged regions in northern and eastern India. As work becomes scarce, they often seek employment elsewhere during idle periods. According to the Alang-Sosiya Ship Recycling and General Workers’ Association, the workforce has dwindled from over 60,000 at peak operation to fewer than 15,000 today.
Ramakant, who joined Alang at age 35, recounts his experience. “For seven straight years, I worked without interruption until the slowdown hit. Now, I await calls from my employer—otherwise, I spend time seeking work in Surat,” he shares. Though he acknowledges improvements in safety standards and training over the years, he laments, “What is the value of safety when the work is scarce? We all depend on the next ship arriving.”
