The Arrival of Europe’s Ships Will Be Cleared in Alang
4 representatives of the European Union are conducting the final audit of Alang’s three shipyards
Alang, India’s premier ship recycling hub, has long been a leader in dismantling end-of-life vessels. Now, as global environmental standards tighten and shipping companies look for more certified yards, Alang is on the verge of a breakthrough. The European Union (EU) is conducting a final audit to potentially certify three of its yards, which could pave the way for European-owned ships to be sent to Alang for recycling.
Europe’s Aging Fleet and Limited Options
Ships from European countries make up around 35% of the world’s shipping fleet, and many of these vessels are reaching the end of their operational lifespan. Once a ship reaches its age limit or is no longer economically viable, it needs to be dismantled, and the materials—primarily steel—are recycled. Europe faces a growing dilemma: it lacks sufficient ship recycling capacity to handle this volume of vessels. The only EU-certified facility currently exists in Turkey, and it cannot accommodate the growing number of ships that need to be scrapped.
This has led the EU to explore other ship recycling destinations, and after years of deliberation, it has turned its attention to India’s Alang Ship Recycling Yard. With its vast experience in dismantling ships, Alang could be a solution to Europe’s problem—if it passes the rigorous EU certification process.
The EU’s Certification Process in Alang
The current audit in Alang is taking place at three shipyards: Plot No. 78 Shriram Vessel Scrap Pvt, Plot No. 59 YSI Recyclers LLP, and Plot V-1 Priya Blue Ship Recycling. The goal is to determine whether these facilities meet the EU’s strict environmental and safety standards, which are outlined under the European Ship Recycling Regulation (EUSRR).
India’s ship recycling leaders have been working to gain EU certification since 2017, recognizing the importance of adhering to stringent global environmental norms. In 2018 and 2019, preliminary audits were conducted, but complications arose. Global restrictions under the Basel Convention, which controls the transboundary movement of hazardous waste, led to a ban on shipping EU-owned vessels to non-OECD (Organization for Economic Co-operation and Development) countries like India.
Additionally, European authorities were concerned about the potential for toxic waste generated during shipbreaking to be improperly handled in non-EU countries. As a result, European vessels destined for dismantling were classified as “waste,” further limiting their ability to be exported to yards in countries like India.
However, through extensive negotiations, Alang’s ship recycling entrepreneurs succeeded in proving that the ships could be dismantled without violating global environmental rules. This removed the label of “waste” from European vessels heading to Alang and opened the door for certification.
Addressing Environmental and Safety Concerns
Key to passing the final EU audit is proving that Alang’s facilities are equipped to handle hazardous materials like polychlorinated biphenyls (PCBs), a type of chemical that is highly toxic and often found in older ships. One of the requirements laid out by the EU was the installation of a high-temperature incinerator capable of burning dangerous materials at temperatures of 1,400 degrees Celsius. This is necessary to ensure the safe disposal of materials like PCBs and asbestos.
Chetan Patel, a representative from Shriram Vessel Scrap Pvt, confirmed that Alang has installed a rotary incinerator that meets the EU’s specifications. This was a significant milestone for the yard, as it addressed one of the major environmental concerns raised during the earlier audits.
Another issue raised during the EU’s audits was the lack of a trauma centre in Alang’s hospital. Ship recycling can be a dangerous occupation, and workers are exposed to a variety of risks, including accidents involving heavy machinery, falling debris, and hazardous materials. Without a trauma centre, the immediate treatment of serious injuries would be compromised. Patel also noted that this issue has been resolved, and the trauma centre is expected to be operational by December 2024.
Potential Benefits of EU Certification for Alang
Should the EU grant certification to Alang, it would represent a massive opportunity for India’s ship recycling industry. Currently, about 70% of the world’s ships that are decommissioned are recycled in South Asia, primarily in India, Pakistan, and Bangladesh. However, many of these yards do not meet the EU’s environmental standards, meaning that European vessels cannot be sent to these countries for dismantling.
If Alang becomes EU-certified, it would be one of the few places in the world where European vessels can be recycled in compliance with EU laws. This would make Alang a prime destination for ships from EU member countries and would allow Indian ship recyclers to acquire these ships at a lower cost than on the international market. As Patel noted, certification would bring substantial economic benefits to the industry.
By gaining EU recognition, Alang would also solidify its reputation as a global leader in sustainable ship recycling, which could attract ships not only from Europe but from around the world. Additionally, certification could enable Indian yards to charge higher prices for their services, as ships from the EU would be sent to Alang in compliance with strict regulations.
Why India, and Why Now?
Alang’s competitive edge lies in its ability to meet international standards while offering cost-effective shipbreaking services. While other South Asian countries, such as Bangladesh and Pakistan, have a significant share of the global ship recycling market, their yards have been slower to adopt environmental and safety practices that align with the Hong Kong Convention, an international treaty designed to ensure that ships are recycled safely and in an environmentally sound manner.
India’s Alang yards, on the other hand, have made notable progress in upgrading their facilities to comply with global standards. The EU’s final audit marks the culmination of years of work by Alang’s ship recyclers, who have been determined to prove that their yards are capable of handling the dismantling of European vessels in a way that meets the highest environmental and safety requirements.
The EU’s renewed focus on Alang in 2024 comes as global demand for responsible ship recycling increases. Environmental regulations continue to tighten, and shipping companies are seeking ways to dispose of their aging fleets in compliance with international laws. Alang’s location, infrastructure, and experience make it a logical choice for European shipping companies looking for a certified facility in Asia.
Conclusion
As the EU finalizes its audit of Alang’s ship recycling yards, the industry waits with bated breath. Certification would not only solidify Alang’s position as a global leader in sustainable ship recycling but would also create a new stream of business from European-owned vessels. With environmental and safety concerns being addressed, Alang’s ship recycling industry could soon see a significant boost, benefiting both the local economy and the global push for environmentally responsible shipbreaking.
