Thanks to slowdown, Gujarat’s Alang and Sachana are booming

Worldwide economic slow down has actually become a savior for Gujarat’s Alang ship breaking industry. Once there was a time when only four to five ships were coming to Alang ship breaking yard per month. But now every day at least one ship is coming. Arrival of monthly 30 to 35 ships has become routine. According to sources, 1200 to 1500 ships are waiting to arrive at Alang ship breaking yard. This means, for next at least three years, Alang will surely continue to remain busy with ship breaking activities in all the plots.

Surge in inward traffic at Alang ship breaking yard is due to decreasing cargo transport world wide. The Cargo fright index is 93% down in world wide slow down situation. In recent months, shipping companies are prefering to sell their around 30 years old ships, rather than bearing huge costs of maintenance.

Prices of ships have also come down, thanks to worldwide slowdown. Till August 2008, per tone cost of ship was 750 dollars which has come down to 250 to 300 dollars now.

Sachana booming

As Alang ship breaking yard is over loaded due to incoming traffic, some ships are literally standing in queue, waiting for their turn. And therefore, many small ships(four to five thousand tone capacity) have in recent past preferred to go to Sachana ship breaking yard which is located in north Saurashtra, 28 km from Jamnagar.

Gujarat Maritime Board’s Sachana ship breaking yard witnessed first ship breaking activity in around 1977-78 but then it legged behind the Alang ship breaking yard. Sachana yard is smaller than Alang. It has 15 plots. At Sachana yard, ship stands inside the sea, away from ship breaking plot. After breaking some parts inside the sea, ships are pulled towards the plots.

Work on four ships is going on at Sachana this month. Before slow down, Sachana witnessed similar inward traffic in range of whole two-three years. This year, eight more ships are expected to arrive at Sachana. Alang based major yard owner has now bought a plot at Sachana also.

One ship breaking plot provides employment to around 150 laborers. Ship breaking industry is life line for transportation, LPG, re-rolling, oxugen, trading, restaurant etc. local businesses.
Sachana ship breaking yard had total six plots.

In India, other minor ship breaking yards are located at Mumbai, Kakinada and Manglore.