Tuesday, March 2, 2021

Corona Daily 166: The Ship Slaughterhouse


Alang.

Have you heard of this place? No? But for my pandemic research, I wouldn’t have either, though it is less than 500 km from Mumbai. It is a stretch of muddy beach in North-west India. The biggest passenger and cargo ships are dismantled and demolished in Alang, the world’s largest graveyard for ships. On the Alang beach, once-glimmering royal vessels lie crumbling, their bowels exposed, their glory days over. Like slaughtering a beautiful cow, then dismembering her for human consumption.

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In the pandemic, cruise liner companies are going bankrupt. Countries like Canada have banned cruises this year. Normally, ships live longer than thirty years. Now even younger ships are sent for scrapping. Carnival corporation, world’s largest cruise operator, recently retired 17 ships, including two Fantasy Class liners. Most of these ships are demolished at Aliaga in Turkey.

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In January 2021, two UK ships, the Marco Polo and Megellan, landed at Alang. UK laws prohibit sending ships to developing countries for taking apart. The bankrupt owners auctioned the ships. One was supposed to become a floating hotel in Dubai, another in Liverpool. Instead, they were both beached in Alang for breaking. I suppose all parties knew this was a modus operandi to bypass the UK laws. Marco Polo was sold for £2 million at the auction, but later fetched £4 million as scrap.

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Alang (India), Chattogram (Bangladesh) and Gadani (Pakistan) together scrap more than half of the world’s ships. But the EU and America ban sending ships there for demolition.

The ships are valued in the Indian continent because they contain large amounts of steel. But they also contain hazardous materials, like asbestos (banned in developed countries). Workers, often exploited migrants, including children, are exposed to huge risks. Injuries or deaths can happen by fire, gas explosions and falling steel plates. Labourers and local communities become sick by the exposure to toxic fumes and substances, and air pollution. Since 2009, more than 400 workers have died. Like nuclear rubbish, ships are dumped on developing countries.

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Instead of listening to the world’s top economists, it is enough to visit the Alang Shipbreaking Yard to understand the state of the world economy. When the economy is healthy, cruises and cargo ships do well, and Alang sees a slump in its business.

In the last two months, there is a queue of luxury liners waiting to be broken. In 2010-11, the global freight market was in crisis. A record 415 ships came to Alang to be dismantled. When imports and exports decline, container ships are idle. In 2018, during a slump in the global oil market, every third vessel reaching Alang for scrapping was either an oil rig or an oil tanker.

It takes fifty labourers about three months to break down a normal-sized cargo vessel of 40,000 tonnes.

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Steel is the backbone of the shipbreaking business. Cruise liners have less steel than oil tankers, bulk carriers or container ships. The salvaged steel is sent to re-rolling mills in different states.  

In the second quarter of 2020, Alang came to a standstill because of India’s strict lockdown. Workers were not available, and ships were not allowed to land. The steel prices collapsed and still remain low. But from July onwards, the business picked up, and now it is booming.  

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Just before the pandemic, India passed an act to join the Hong Kong convention. This convention offers certificates for compliance with green recycling standards for the safe and environmentally sound recycling (euphemism for breaking) of ships. Reportedly, 90 out of 120 working plots at Alang are now certified for such compliance. Bangladesh has only one green facility and Pakistan none. Following the certification, America and Europe will be able to send ships to India for breaking. India’s market share in the global shipbreaking industry is expected to go from the current 30% to 60%.

One hopes that the green certificates will also bring in better working conditions and safety standards for the workers and community at Alang.

Ravi 

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