The central government has announced plans to double India’s ship recycling capacity by 2024. alango, AsiaThe largest ship breaking yard in the U.S. has seen the lowest tonnage of the decade, says an article published in the Times of India.
High freight charges reduce dismantling ships
The number of ships visiting Alang has come down from 415 in 2011-12 to 14.11 lakh with 209 ships with 38.57 lakh light displacement tonnage (LDT). LDT In 2021-22.
LDT is the weight of the ship excluding cargo, fuel, passengers and crew. India cannot achieve its goal without following these The European UnionRules for hazardous waste management and workers’ safety.
Major reasons for the shortfall include higher freight charges and higher steel prices globally.
Chetan Patel, a ship broker in Alang, said, “The price of ships coming for dismantling is rising due to high steel prices across the world. The price per tonne in 2020-21 was $280, which has now risen to $650. There are many small shipbreakers who do not find this price affordable and do not buy new ships. The high freight charges post-Covid-19 have also reduced the number of ships sent by shipping lines for dismantling.”
EU rules compliance
According to shipbreakers, in the last financial year only passenger and tanker ships and no container ships came for dismantling.
According to industry experts, India is not getting European flag ships to be destroyed as the country is not complying with EU rules on waste management.
The European Union inspected the Alang facility for compliance in 2018 and 2019 at the request of Shri Ram Vessel Scrap Pvt Ltd, following the group’s application in an individual capacity to be included in the list of European recycling facilities.
The report, submitted to the Gujarat Maritime Board (GMB) and the central government, cited lack of adequate medical facilities for workers in Alang as a major issue.
GMB Multispecialty Hospital has limited emergency capabilities and the only public hospital equipped to treat serious injuries is in Bhavnagar, 1.5 hours away.
Promoting Trade
The EU also took up the waste disposal management saying that Alang’s Treatment Storage and Disposal Facility (TSDF) site does not handle e-waste, batteries etc. Shri Ram Group President Mukesh Patel said, “The audit of my yard was completed in 2019 and I have all the facilities as per EU regulations, but some hospitals like the best ones have to be built if we follow EU rules. If we do, we can get at least 100 more ships every year.”
Haresh Parmar, Secretary, Ship Recycling Industries Association of India (SRIA), said, “We are paying a high fixed fee for GMBs to comply with the safety and waste management standards as per the Hong Kong Convention. Pakistan and Bangladesh have to comply with the same. Nor do they need to. Norms, so that they can pay more for ships. The government should give us relief from fixed costs and follow EU laws to promote trade.”
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Times of India
