- Alang ship-breaking yard in Gujarat recorded a 13% rise in ship arrivals in the first five months of FY 2025–26, signaling a modest revival.
- Despite growth, many yards operate at just 25–30% capacity due to strong freight markets and delayed ship retirements.
- Government support, including customs duty cuts and incentives for Hong Kong Convention compliance, strengthens yard competitiveness.
- Certification of over 110 yards under sustainability standards positions Alang to attract future ship recycling projects as older fleets retire.
Alang, one of the world’s largest ship-breaking yards, is witnessing a revival after years of decline. Fresh data from the Gujarat government shows a 13% increase in arrivals of end-of-life vessels during the first five months of the 2025–26 fiscal year, according to The Hindu Business Line.
Current Challenges and Support at Alang Ship-Breaking Yard
Despite the recent uptick in vessel arrivals, many ship-breakers at Alang report that the ground reality has changed little. Several yards remain largely inactive, with operations running at only 25–30% of capacity, according to industry insiders. Dubai-based Global Marketing Systems Inc (GMS), the world’s largest buyer of ships and offshore assets for recycling, attributes this extended slowdown to strong freight markets, which allow owners to operate older ships profitably rather than retire them for recycling.
Longer voyage routes driven by global trade disruptions and geopolitical tensions have further increased the demand for vessels, delaying decommissioning decisions. In addition, Alang faces high fixed and compliance costs to meet environmental and safety regulations, which makes recycling more expensive compared to some competing regions, while a limited supply of end-of-life ships continues to constrain yard activity.
At the same time, government support has been significant, including customs duty cuts, lower plot rents, reduced labour cess, and reimbursements of up to ₹50 lakh per yard for achieving compliance with the Hong Kong Convention. Experts note that while these incentives help, international competition remains intense, with neighbouring recycling hubs often enjoying lower regulatory burdens and operating costs.
Industry leaders emphasize that the slowdown is primarily a market cycle rather than a lack of government support. Moreover, the push toward sustainable and green recycling is opening new opportunities. More than 110 Alang yards are now certified to Hong Kong Convention standards, and independent audits are increasingly influencing shipowners to select environmentally compliant yards. Strengthened compliance and transparency not only safeguard workers and the environment but also position Alang to attract future recycling projects as ageing fleets eventually retire.
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Source: Hindu Business Line
