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Ship Recycling in 2024 : The Prospects and Challenges for Alang

Ship Recycling in 2024 : The Prospects and Challenges for Alang

Ship Recycling in 2024 : The Prospects and Challenges for Alang

The ship recycling industry, characterized by its unpredictability, operates within the complex web of international factors, domestic market dynamics, competition from neighboring countries, and government policies. In the midst of such uncertainties, the year 2023 unfolded as an ominous period for the Alang Ship Recycling Yard. As stakeholders in the industry convene to assess the situation, their collective aim is to strategize and improve business conditions for the upcoming year.

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Challenges in 2023:

The initial three months of 2023 portrayed a mediocre performance for the Alang ship recycling industry. The subsequent period from April to August witnessed disappointment, with the number of ships arriving at Alang failing to breach double digits. Although there was a slight improvement in September, with the count reaching double digits, the statistical equations remained dismal, reflecting the persistent challenges faced by the industry.

According to Vishnukumar Gupta, the president of the Ship Recycling Industries Association of India, both the central and state governments have been proactive in attempting to rejuvenate the ship recycling business. Numerous concessions have been granted in recognition of the adversities posed by international factors and domestic market conditions. Despite these efforts, the number of ships recorded at Alang in 2023 remained modest. Notably, the impending implementation of the Hong Kong Convention worldwide in 2025 has prompted the ship recycling industry at Alang to proactively adopt facilities and arrangements aligned with the convention for several years. The industry is committed to modernization, with a strong focus on safety and environmental protection.

Hopeful Prospects for 2024:

Looking ahead, Alang’s ship recycling industry harbors hope that 2024 will prove to be an auspicious year. Twenty-seven entrepreneurs from Alang have already submitted applications for recognition by the European Union, with the approval still pending. Alang boasts facilities that adhere to European Union standards, including a trauma center at the hospital and the imminent completion of the hazardous waste management site upgrade. Given that European Union countries command 35% of the world’s ships, securing EU recognition is crucial for Alang. In 2024, this recognition could open up new opportunities for Alang entrepreneurs, offering a competitive edge in the international market.

Despite the challenges encountered in 2023, there is optimism that 2024 will bring a ray of hope to the ship recycling industry at Alang. The industry’s resilience is evident in its continuous efforts towards modernization, safety, and environmental compliance.

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Material Composition and Regulatory Hurdles:

A significant aspect of ship recycling at Alang is the composition of materials, with 90% of the incoming material being iron scrap. This iron scrap is primarily utilized as raw material in re-rolling mills. However, the use of Alang ship plates as raw material in these mills faces limitations imposed by the Bureau of Indian Standards. Central Government Ministers are actively engaged in addressing this bottleneck, and there is a concerted effort to establish a system that removes the hindrances associated with the Bureau of Indian Standards. The goal is to streamline the recycling process, potentially opening up new avenues for the industry in 2024.

In conclusion, the ship recycling industry at Alang faced formidable challenges in 2023, marked by uncertainties stemming from international factors, domestic market conditions, and regulatory dynamics. Despite this, the industry remains resilient, with a strategic focus on modernization, safety, and environmental responsibility. The prospects for 2024 appear promising, with initiatives such as European Union recognition and efforts to address regulatory hurdles. As Alang Ship Recycling Yard navigates the complex waters of the industry, there is a collective hope that 2024 will bring positive developments, fostering growth and sustainability.

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