Ship breaking involves dismantling old ships for scrap recycling and allows recovered materials like steel to be reused. Most ship breaking now occurs in developing countries due to lower costs. Ships contain hazards like asbestos, heavy metals, and oils that can harm humans and the environment if not handled properly. The largest ship breaking yards are located in Pakistan, India, Bangladesh and Turkey. While ship breaking provides economic benefits, the work is dangerous and the dismantling process often causes pollution without proper environmental protections and waste disposal.

1. Shipbreaking
Nilesh Jakher
Jakher Ship breaking
private limited

2. History of Ship Breaking
Industry took place in port
Until the late 20th century, ship breaking
cities of developed countries such as the UK and the US
Today, most ship breaking yards are in developing countries,
with the largest yards at Gadani in Pakistan, Alang in India,
Chittagong in Bangladesh and Aliagain Turkey
This is due to lower labor costs and less stringent
environmental regulations dealing with the disposal of lead paint
and other toxic substances
China used to be an important player in the 1990s. It is now
trying to reposition itself in more environmentally friendly
industries

3. Ship Breaking
Ship recycling offers the most environmentally
sustainable way of disposing of old
vessels, with virtually every part of the hull and machine
complex being reused or recycled as scrap metal.
Ship breaking is a type of ship disposal process involving
the breaking up of ships for scrap recycling.
Most ships have a lifespan of a few decades before there is
so much wear that refitting and repair becomes uneconomical
Ship breaking allows materials from the ship, especially
steel, to be reused
Ships contain many hazards that can have significant
detrimental effects on humans and the environment if not
dealt with properly.

4. Alang – A Lucrative Option
The beaching method depends on skilful harnessing of zero cost
tidal energy at sheltered coastal locations and warrants the least
capital investment
It could be argued that workers were earning well by Indian
standards. Also, the shipbreakers were providing jobs for the poorest
of India's poor and bringing valuable income to Gujarat.
The labourers are migrants who have come to Gujarat from the
poorest states in India - from Bihar, Orissa and Uttar Pradesh
Considering the favorable parameters for beaching method like
high tidal range, firm seabed, gentle seaward slope etc., it was
decided to set-up a ship breaking yard on the western coast of Gulf
of Cambay near Alang village

5. Alang Ship Breaking Industry
Background
Alang is a census town in
Bhavnagar district in the Indian
state of Gujarat
Ever since its inception in
1982, Alang has emerged as
one of the choicest ship-
scrapping destinations for the
ship owners around the world
The importance of ship
breaking as a potential source
of raw material for the re-
rollers was recognized in early
80's

6. Pollution by ship breaking yards
The ship breaking industry creates numerous hazards for
the coastal and marine environment
Pollution from ship breaking yards during breaking and
scrapping the old ships.
6

7. Pollution by ship breaking yards
Heavy metals
Poor working condition High
concentrations
Oil & grease
85% of total weight is steel.
Coating 10 to 100 tons of paint contain Pb, Cd, organotins,
As, Zn, Cr.
And also contain a wide range of other hazardous wastes,
sealants containing PCBs, up to 7.5 tones of asbestos.
7
Several thousands liters- oil, polychlorinated biphenyls.

8. Ship breaking facilities: potential discharges
• Hazardous waste
– Anti-fouling systems • Liquid waste
– Radioactive – Hydro blast streams
Substances – Anti-fouling outwash
• Solid Waste • Storm water discharge
– Dry and liquid bulk – Fuel and hydraulic leaks
• Bilge Water • Oil
• Ballast Water
• Cleaning agents
– Nutrients
Bangkok, Thailand
June 2009 8

9. Ship Breaking Industry Concern Areas
Ship breaking activities are being
condemned as the whole process
entails a series of risky tasks and as a
depot of hazardous substances, which
pose threats to the ambient environment
and working people
Depending on their size and function,
scrapped ships have an unladed weight
of between 5,000 and 40,000 tones (an
average of 13000+)
95% of which is steel, coated with
between 10 and 100 tones of paint
containing lead, cadmium, organotins,
arsenic, zinc and chromium

10. Alang Ship Breaking Concern Areas
In Alang old Ships containing these materials are being cut up
by hand, on open beaches, under inhumane working conditions
Ships also contain a wide range of other hazardous wastes,
sealants containing PCBs; up to 7.5 tones of various types of
asbestos; several thousands liters of oil (engine oil, bilge oil,
hydraulic and lubricant oils and grease)
Tankers additionally hold up to 1,000 cubic meters of residual
oil. Most of these materials are defined as hazardous waste
under the Basel Convention
Experts at home and abroad are unanimous in their opinion that
ship breaking is a high-risk industry

11. Hazards of Ship Breaking Industryards of
Ship Breaking Industry
The hazards linked to ship breaking
broadly fall into two categories:
— Intoxication by dangerous substances
— Accidents on the plots
A brief description on the common
hazards that may cause work related
injuries and death among ship
breakers
Waste components in the vessel or
board and waste and toxic substances
that may inherent in the vessel
structure
Most of the accidents are caused by
toxic gas explosions

12. Alang Ship Breaking Hazards
Problems generated by the insufficiencies of current ship-dismantling
practices have consequences for not only the environment but also for
occupational safety and health of the workers
By occupying and expanding the areas required for breaking, the
dismantling industry affects both the local surrounding, environment
and society
The established local community may be relying on basic industries
such as fishery and agriculture, hence conflict of interests has become
an issue
Discharges and emissions to sea, ground and air cause both acute and
long term pollution
The lack of containment to prevent toxins from entering the
environment is a major concern

13. How could we do
safe and
environment
friendly
recycling of
ships
Client logo

14. Conduct a vessel
survey
An
Environmental Safety and
Technical plan
Technical Health plan
plan.

15. Breaking the Vessel
• Remove fuels, oils, other liquids and
combustible Materials
• Remove equipment
• Remove and dispose of asbestos and
PCBs.
• Prepare surfaces for cutting
• Cut metal
• Recycle or dispose of materials.

16. Steps taken for Workers Safety
• Emergency Response
• Crane Services
• Mobile Hydraulic Shear Cutters
• Shoreside Processing of Metals
• Fall Protection
Workers
safety is
our
priority

17. Health Problems Related to Asbestos
Asbestos fibers have the potential to cause disabling lung
diseases and cancer.
Among the diseases linked to friable asbestos exposure are:
• Asbestosis - a respiratory disease
• Lung cancer
• Mesothelioma - a deadly cancer of the lining of the
chest or abdominal cavity
PERSONAL PROTECTIVE EQUIPMENT
Respiratory Protection

18. Shipper/ Customer Responsibilities for
Packaging ACM
Ship breakers must handle and package friable, asbestos-containing
material for transport as follows:
• Wet ACM thoroughly or modify it with a bonding agent,
coating, or binder before bagging.
• Bag ACM in two leak-tight, impermeable bags six ml thick.
(Goosenecking is preferred.)
• Inspect to be sure containers are intact.
• Place bagged asbestos in a roll-off box lined with plastic
taped
over the sides of the open top, whenever this is practical
• Label each bag, drum, or container with the EPA or OSHA
danger
containers with the generator’s name and address.

19. A containment boom is a "temporary floating
barrier used to contain an oil spill. Booms are
used to reduce the possibility of polluting
shorelines and other resources, and to help
make recovery easier. Booms help to
concentrate oil in thicker surface layers so that
skimmers, vacuums, or other collection
methods can be used more effectively. They
come in many shapes and sizes, with various
levels of effectiveness in different types of
water conditions

20. Global condition
The global shipping downturn and weak macro-economic
headwinds since 2009 have facilitated the growth of the ship
breaking industry .
With the outlook on international shipping freight rates being
subdued over the near to medium term and large tonnage
expected to come on stream post 2012, the ship breaking
industry is expected to continue witnessing a steady supply of
vessels for demolition over the medium term.
The Indian ship breakers have witnessed a healthy growth in
operating income in recent years due to increased availability of
ships for dismantling

21. Ship-breaking
Demand for vessels for scrap
Effects on the wider economy
Market demand for Mild Steel (MS) scrap,and other items
Labour costs + other relevant cost
Regulations regarding the environmental
Impact of the industry
Competition of other countries(mainly-china)
Analysis of Future Scope
In 2010 the world fleet of ships over 500 GT was around
56,000 ships while the fleet over 3,000 GT was around
32,000 ships. Ships have a limited life-span, reflecting
economic, technical and occasionally regulatory
considerations. A realistic average life-span of a ship
presently is 30 years and thus on average around 1,800
ships of over 500 GT, or 1,000 ships over 3,000 GT need
to be recycled each year.

22. Overall Analysis
Revenues:
• 1)Steel—the most crucial recyclable output in terms of volume and revenue. This steel
is either reheated and re-rolled or melted down and re-processed.
• 2)Other recyclable items—including non-ferrous scrap, machinery, furniture and f
fixtures, and ropes and cabling. Virtually, all items that can be recovered from a ship are
recycled in some form.
Costs:
1)• Purchase of ship
• 2) Investment costs (for equipment and civil works such as cranes, forklifts, storage,
and housing)
3)• Financial costs
• 4) Labor costs
5)• Consumption of utilities (e.g., oxygen, LPG, diesel and electricity)
• 6) Taxes, tariffs and duties (e.g., import taxes)
• 7) Rents (e.g., for land use)
• 8) Other costs (e.g., for handling hazardous waste).

23. Revenues
• 1) Steel—the most crucial recyclable output in
terms of volume and revenue. This steel is either
reheated and re-rolled or melted down and re-
processed.
approximately 85 percent of a ship is
recyclable steel in the
form of directly re-rollable steel (75 percent) and
melting scrap (10 percent).15
2)• Other recyclable items—including non-

24. INDIA(Overall Financial Analysis)(14,800 LDT OIL
VESSEL)
Revenue
Main element Sub element Unit INDIA
Revenue from steel $/vessel 4,771,543
Other recyclable items $/vessel 842,037
Total revenue $/vessel 5,613,580

25. Cost
Purchase of ship 69%
Labour costs 2%
Consumables 5%
Financial costs 3%
Taxes, tariffs and duties 5%
Other costs (incl. investment costs rents, and other costs) 1%
Total costs 84%
Environmental friendly technics 4%
Comparable profit 12%

26. Costs
1)Purchase of ship $/vessel3,848,000
2)Investment costs $/vessel 21,913
3)Financial costs $/vessel 147,912
4)Labor costs $/vessel 92,653
5)Consumables $/vessel 302,207
6)Taxes, tariffs and duties $/vessel 262,955
6)Rent, levies and duties $/vessel 2,713
7)Other costs $/vessel 13,820
8)Extra cost for
environmental Friendly technices
a. Purchasing and construction costs for new
equipment and infrastructure $/vessel 112,271
b. Manpower costs for new and more timeconsuming work routines $/vessel 56,271
c. Hazardous waste disposal costs $/vessel 56,000
Total costs $/vessel 4,916,7150
Profit $/vessel 696,865
$/LDT 47
Local currency/vessel 39,024,440
Local currency/LDT 2637

27. 1)ICRA Rating Feature Ship Breaking Industry:
Key Trends and Credit Implications ICRA
Limited
2)The NGO Shipbreaking Platform
3)Department of Naval Architecture & Marine
Engineering Bangladesh University of
Engineering & Technology, Dhaka-1000
4)Occupational Safety and Health
Administration,U.S. Department of Labor,
OSHA 3375-03 2010
5)DIVEST
6)Basel and the Hong Kong Conventions

28. THANK YOU