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Maersk’s journey towards sustainable shipbreaking in Alang

Maersk's journey towards sustainable shipbreaking in Alang

AP Moller-Maersk, a global logistics company valued at $81.5 billion, has revealed that only a few shipbreaking yards in Alang adhere to human rights and environmental protection standards. These yards are situated in Gujarat, particularly at Alang, which is Asia’s largest shipbreaking yard. Unfortunately, most yards in Alang do not meet the global norms for these standards. To address this, Maersk South Asia’s Managing Director, Vikash Agarwal, mentioned that the company has invested in certain yards to implement these necessary standards.

Agarwal added that, in recent times, India has witnessed a significant decline in its ship recycling capacity since the fiscal year 2022. This decline is evident in the lack of large vessels being brought to Alang in the Bhavnagar district for shipbreaking. The shipbreaking facilities in India lack the infrastructure to handle hazardous waste appropriately, and there is also a lack of designated areas for breaking down ships and segregating steel. Furthermore, these yards do not offer medical facilities, training centers, or proper hygiene amenities for their workers.

Ship owner should prefer proper recycling facilities

Agarwal emphasized that the upcoming dedicated rail freight corridors in India will play a crucial role in reducing logistics costs. He believes that these corridors will contribute to more efficient transportation.

In the past year, Maersk introduced two warehouses, one in Uttar Pradesh and another in Haryana. How else does Maersk plan to expand its business in India?

Historically, Maersk primarily focused on maritime shipping, transporting goods across the seas for its clients. However, a few years ago, the company shifted its strategy to become a global logistics integrator. This transition involved offering comprehensive logistics solutions to customers, encompassing their entire supply chain.

The core concept of this integrator approach is straightforward: Maersk aims to provide customers with a seamless experience, addressing all their logistics needs through a single channel. This not only streamlines supply chains but also allows clients to concentrate on their primary operations.

To provide robust integrated logistics solutions, Maersk has been investing in enhancing its overland transportation network. This includes cargo movement by road, rail, and air, as well as storage solutions through warehousing facilities.

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Focusing on warehousing and distribution, Maersk has established over 65 facilities across India, covering an impressive total area of more than 10 million square feet.

In the previous year, Maersk expressed its intention to establish a railway connection between Kolkata Port and JNPT. What progress has been made on this initiative?

Maersk has introduced several rail solutions based on customer demand…

The company maintains close communication with its customers to comprehend their requirements and adjust solutions accordingly, considering consumer behavior and seasonal variations.

Maersk recently initiated a new dedicated rail service, operating on a weekly basis, connecting the National Capital Region (NCR) to Nhava Sheva. This service aims to transport reefer containers, carrying perishable cargo destined for Middle Eastern markets.


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