Alang Ship Recycling Industry Sees Hope in May Arrivals
Alang, a town in Gujarat known for its massive ship-breaking yards, has witnessed a glimmer of hope in May 2024. After a prolonged period of sluggish activity, 12 ships weighing a total of 74,735 metric tons (MT) arrived for dismantling during the month. This positive trend is expected to continue with another 5 vessels anticipated in the first week of June.
This surge in arrivals is a welcome change for the industry that has been grappling with a recession for some time. Alang’s ship recycling business plays a crucial role in Bhavnagar’s economy, and the recent slump has cast a shadow over the entire 11-kilometre coastal stretch where these yards operate.
Industry Impact and Future Prospects
The recent increase in ship arrivals is a hopeful sign for Alang, potentially revitalizing not just the ship recycling yards but also related ancillary businesses. This interconnected ecosystem is crucial for the local economy.
Insights from Industry Leaders
- Sandeep Bhai Shah: Emphasizes the potential for revitalizing the industry and ancillary businesses, creating a more prosperous ecosystem.
- Rameshbhai Mendpara: Expresses cautious optimism, noting that recent arrivals signal a positive trajectory for the industry.
Market Dynamics and Challenges
Local business leaders are eyeing the international market for a sustained increase in the supply of old ships, a key factor for the industry’s recovery. Although the domestic market conditions are favourable, the industry’s focus remains on securing good quality ships globally.
Government and Administrative Support
Most central government issues related to ship recycling have been addressed, easing the pressure on the new administration taking office in June. This governmental support is seen as crucial for the industry’s sustained recovery.
Here’s a breakdown of ship arrivals so far in 2024:
- January: 14 ships
- February: 8 ships
- March: 5 ships
- April: 3 ships
- May: 12 ships (with 5 more expected in June)
Industry veteran Sandeep Bhai Shah believes this uptick can revitalize not just ship recycling but also related ancillary businesses in Bhavnagar. He envisions a scenario where these developments create a more interconnected and prosperous ecosystem for all stakeholders involved in ship recycling activities.
Local business leaders are actively discussing the availability of ships in the global market. While domestic markets offer favourable conditions, all eyes are set on the international scene for a potential increase in the supply of old ships. This is seen as a key factor in Alang’s complete recovery.
Industry Optimistic Despite Past Challenges
The recent weakness in the ship-breaking sector had created a sense of despair. However, May’s arrivals mark a positive shift, and industry representatives are cautiously optimistic about the future. While the focus remains on acquiring good quality ships from the international market, there’s a sense of relief that most central government issues related to ship recycling have already been addressed. This reduces the pressure on the new administration that will be formed in June.
The industry eagerly awaits a sustained increase in the availability of old ships. This, coupled with the recent uptick in arrivals, is expected to breathe new life into Alang’s ship-breaking industry.
Rameshbhai Mendpara, Vice President of the Ship Recycling Industries Association (India), echoes this sentiment. The industry is poised for a revival, and May’s developments serve as a strong indicator of this positive trajectory.
