A Business Ethics presentation on the ground realities of the Ship breaking industry in India. Alang the biggest ship breaking yard in India, has broken down a record of 350+ ships in the past five years. This has resulted in job creation and revenue stream for many but as there are always two sides of a coin. Alang a small town on the cost of Gulf of Cambay has been affected with the phenomenal growth of this Industry without proper regulation check people of Alang and surrounding areas are sitting on a ticking bomb which is bound to go sooner than later!

1. Alang Ship Breaking Yard
Business Ethics and Corporate Governance
SIBM – Bangalore
Harbinder Singh
Deepak Sharma
Ashwin Shankar

2. Ship Breaking
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
Equipment on board the vessel can also be reused

3. Ship Breaking Industry
Until the late 20th century, ship breaking took place in port cities
of industrialized 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

4. 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

5. 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
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
The first vessel - MV KOTA TENJONG was beached at Alang on 13th
Feb. 1983
Since then, the yard has witnessed spectacular growth and has emerged
as a leading ship Breaking Yard in the world

6. 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

7. 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

8. Hazards 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

9. 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

11. THANK YOU