The Problem

Shipbreaking is a heavy and hazardous industry that exposes workers and the environment to many
risks. Compared to sinking or abandonment, ship recycling is considered the most environmentally
friendly and economically sound way of getting rid of old ships, as it ensures the reuse of valuable
resources such as steel, iron, aluminium, machinery, plastics and anything else of value that can be
removed. Till the 1970s, ships were dismantled mainly in Europe and the United States. When social
and environmental protection laws became stricter, the industry shifted to areas where legal
frameworks were weaker. As higher prices are available for end-of- life vessels in jurisdictions with
lower environmental and health and safety regulations 70 % of global ship-owners prefer ot scrap
their ships on the beaches of Alang-Sosiya (India), Chattogram alias Chittagong (Bangladesh), and
Gadani (Pakistan) by 'beaching?' (The problem, 2020). The human costs and the environmental
impacts of beaching are devastating. The negative consequences of the shipbreaking industry impact
ecosystems and human life. Workers lose their lives and suffer injuries and occupational diseases
due to unsafe working conditions and exposure to toxic substances. The coastal ecosystems and the
local communities depending on them are devastated by toxic spills and other types of pollution
(Where ships go to die, (n.d). The International and regional legal instruments like 'The Basel
Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal
(1989)}, The Hong Kong International Convention (HKC) for the safe and environmentally sound
recycling of ships (2009)*, The EU Waste Shipment Regulations and The EU Ship Recycling Regulation
(2013). have aimed at regulating the trans boundary movement and the management of hazardous
wastes. But, it remains far too easy for ship owners to circumvent these laws ("Responsible ship
recycling," 2022).

The ship recycling regulatory landscape is complex. It may affect not only the ship-owning company
but also shipyards, brokers, insurance companies, banks, and many other entities involved in the
transaction chain with serious criminal, commercial, and damaging reputational consequences for
failure to comply.

About Alang Shipyard

Alang in Bhavnagar (Gujarat) is the world's biggest shipbreaking yard. Nearly half of the World's
ships' life ends and is recycled on the Alang-Sosiya beach (Editor, 2018). Ships are anchored in
various states of dismemberment. As you approach the shipyard, rows of shops dot the roadside.
Stacks of wash basins, toilet fittings, big and small commercial refrigerators, Steel pipes, faded
anchor ropes, rusted iron chains, used cables, etc., lie in heaps and are sold by weight (Malini, 2016).
The Alang Shipyard's recycling industry has a turnover of I N 6000 crore and contributes about I N
2000 crores as taxes to the Government (Kumar 2021).
Gender equality
In this overwhelmingly male town - over 80% of the population is men, mostly migrant workers from
UP, Bihar, and Jharkhand stay in pathetic conditions. Fire explosions and accidents are reported to
be common, leading to workers' deaths and deformities. The shipyard weighs heavily on the
conscience of global shippers. Alang has 170 ship-breaking yards, of which about 135 plots are
operational (Sahu, 2018). Ninety-two have received Statements of Compliance from the Hong Kong
Convention (HKC)" (Kumar 2021). According to Gupta(2019), the standards set by the HKC ignore
critical issues such as labour rights and downstream waste management, which puts 25,000- 30,000
workers' lives at risk, posing a threat to the environment. India has loose marine environmental
 protection policies, leading to irreversible harm to the surrounding flora and fauna. "Several Life under water and
life on land
beautiful coral reefs near the Indian coasts have been destroyed, and the marine life in the affected
area has gone haywire" (Raunek 2021). Fishing was once the most important business in Alang, but
nets have grown empty since shipbreaking took over in the 1980s. "In the last 20 years, the size of
the catch has gone down. Alang has now become an official storage facility for toxic wastes,
radioactive elements, poisonous gases, and waste, unusable oil. Dinesh Gulab Bivagar, a community
leader from Ghogha, a small town a few miles north of the shipyards (cited in Raunek (2021)) shares,
"The toxic waste has not only entered into the marine food chain by contaminating the oceans
butalso have greatly affected the health ofworkers, who already live in a dilapidated condition with
least safety measures and poor health care facilities." Due to high levels of contamination caused by
toxic elements mercury, cadmium, and asbestos), workers and other residents are reported to suffer
from respiratory, heart, and neurological disorders (Kavita, 2021).

Sahu (2014) states, "Highly unregulated workers are regularly exposed to ill-treatment and social Good health
and wellbeing
and economic abuses. Being uneducated, they fall prey to caste, religion, gender, and region Reduce inequalities
dynamics of the group. Most workers have no means to contact their families, so they live turbulent
lives without any support or guidance. Further, the workers do not get benefits under government
Decent schemes such as provident funds or minimum wages as they are employed in the
economic informal/unorganized s e c t o r. "International Federation of Human Rights, in its report, highlighted
growth that the Indian government is violating the International Covenant on Economic, Social and Cultural
Rights by failing to ensure minimum essential rights to the ship workers in Alang such as right to
favourable conditions for work, right of everyone to form trade unions, etc." (Gupta, 2019).

Not So Safe and Green

Goyal (2016) shares, "Mukesh Kumar (name changed), 45, came to Alang in the late 1980s from Utar
Pradesh. He recalls that many ni his village were flocking to Alang, desperate for work. He started as
a helper at Rs 2 for an eight-hour shift. In pre-liberalized India was struggling on multiple fronts. Few
entrepreneurs nor the Government are worried about safety, the environment, or pollution.
Working bare hands and feet and with no safety gear, workers like Kumar handled hazardous
materials like asbestos. "I have seen many people die in front of my eyes from accidents and gas
explosions," says Kumar. Often worker deaths would go unreported or under-reported. Records of
dead workers would disappear overnight with no trail left, shares Kumar." According to the NGO
Shipbreaking Platform®, at least 137 lost their lives between 2009 and 2019. The organization
believes that number is probably only the tip of the iceberg because shipyard owners refuse to
discuss accidents. More than half of shipyard workers say they have been injured on the job,
according to Sahu (2019).
dECENT WORK AND ECONOMIC GROWTH
Today, Kumar, a father of three, earns about I N 360 daily as a gas cutter on an eight-hour shift.
(Goyal 2016). But, wealthy shipping companies, shipbrokers, and shipyard owners make millions by
selling and breaking ships. The ship workers live in rented shanty dwellings without basic facilities No poverty
such as potable water, sanitation, electricity, drainage systems, and education for their children.
Lack of drinking water is a significant concern for the migrant workers, who are forced to spend their Clean water
meager income on buying water from local village people. The WASH° facilities created by the and sanitation
Gujarat Maritime Board (GMB) for 35,000 workers are grossly inadequate. The study conducted by
Sahu (2014), cited by Gupta (2019), states GMB had set up only six toilets and 12 stand-post
 bathrooms for 35,000 workers. The TISS report (2019) confirms that not much has changed since
then regarding the WASH facilities at Alang.

Shifting Dynamics

To chase economies of scale, ship owners like Maersk built mega container ships to increase their
capacities to ship more goods. Today, about 7.5% of container ships are reportedly idling, and global
freight rates have dropped (Goyal 2016). This has impacted the profitability of t h e shipping
business. For instance, Hanjin Shipping, which was ranked as the number one ocean carrier in South
Korea, went bankrupt ni February 2017 (Kim, 2022). Maersk has overhauled its business by splitting
its logistics and oil verticals to maintain its profitability and efficiency.

In a tight business climate, ship owners like Maersk send more vessels to scrapyards. That's where
Alang fits in. So far, Alang was off its radar due to substandard yards. In April 2016. Maersk sent its
first two ships to the yard owned by the ShreeRam Group at Alang (Nayar 2016). According to Goyal
(2016), the M C has estimated to save anywhere between $1.5 million and $2 million per vessel by
scrapping its ships in India rather than in yards in countries like Turkey and China.

Armed with global certifications, like HKC, Shree Ram Group has been upgrading one yard under the
close supervision of Maersk. Some changes include impermeable concrete floorings in the inter-tidal
zone of the yard and upgraded dorms for workers, mandatory provident fund deductions, and 200%
payment for overtime and PPE kits (boiler suits, safety gears, helmets, and full face masks) for gas
cutters. Better compliance has helped Shree Ram Group get vessels at a 10-15% discounted rate
(Goyal 2016). Work to upgradeother yards owned by the company is ni the pipeline.

Though Shree Ram Group claims to follow safety standards, Danwatch, a Danish investigative
journalism center's report in 2016, highlights unsafe practices by the Shree Ram Group. Nordahl et
al. (2016) 's inspection report and accompanying photos suggest that the Shree Ram Group does not
What meet international safety standards. Mr. Chetan Patel, Director of Shree Ram Group, in response to
standards? Danwatch's allegation, stated that it safeguards workers' rights Business & Human Rights Resource
Centre, 2016). Annette Stube, Maersk Group's headof sustainability, told Danwatch, "We agree that
the photos show that our requirements are not being met. We want to play a role in ensuring that
responsible recycling becomes a reality in Alang. To find sustainable solutions, we are building a
broader coalition with other ship owners and have initiated engagement with several carefully
selected yards in Alang. This includes improving local waste facilities and hospitals - and upgrading
the housingconditions forthe migrant workers in Alang" (Nordahl, 2016).

Chaplin (2015) & Sahu (2019) feel that for most ship breakers at Alang, a less rigorous approach
towards safety and environmental control appears to be the norm. They still need persuading to
adopt sustainable practices. Unfortunately, ship owners do not want to assist financially in
upgrading the yards sacrificing some ofthe residual value of their vessels to ensure Alang's long-
term survival. International ship liners themselves flaunt international regulations designed to
protect the environment and people in countries where ships are scrapped and recycled.

But, Haresh Parmar, joint secretary of the Ship Recycling Industries Association (SRIA), believes that
in days ahead, many shipyard owners will follow national guidelines and adopt international
certification and sustainability standards for inclusion in the EU's list of approved
 yards for shipbreaking. Additionally, international organizations like 'The NGO Shipbreaking
Platform' and local NGOs- 'Paryavaran Mitra' and 'Machimar Adhikar Sangarsh Sanstha are acting as
pressure groups to showcase the unsafe practices adopted by shipowners and shipyard owners at
Alang. If we want good business, we must adopt international safety practices. The EU-owned or
flagged vessels comprise almost 40% of the world's fleet by value. To get business shipyard owners
Which? are also going for multiple ISO certifications from global agencies like Class NK10 IRI Class, Llyod's
Register, Bureau Veritas, and RINA'2," says Komalkant Sharma, CMD, Leela Group of Companies, and
one of the largest ship-breakers at Alang (Kumar 2021). According to Parmar and Sharma,
shipowners from the EU and other developed countries also need to handhold the shipyard owners
and others in the value chain to develop responsible scraping and recycling practices. This will avoid
protests/ litigations and subsequent financial and reputational damage.

With global ship recycling volumes predicted ot double by 2028 and quadruple by 2033, urgent
action si needed to ensure that suppliers meet the growth ni demand for ship recycling services with
responsible practices (Responsible recycling(n.d). A slew of global-local factors is shifting business
dynamics to improve how Alang breaks its ships and treats its workers.

Role of Government

Following legal actions taken by NGOs, the Indian Supreme Court directed the industry ot align itself
with national and international labour and environmental laws. The Government reacted by
adopting the Ship Recycling Code only in 2013. Goyal (2016) states the Gujarat Maritime Board
(GMB) has helped in setting up the Gujarat Eco-Textile Park (GETP). The facility manages a 17- acre
waste park where hazardous and other wastes (glass, wool, and asbestos) from shipyards are
recycled, disposed or stored securely. The facility has handled 45,000 tonnes of waste so far. GMB's
Safety Training and Welfare Institute provides basic training and has trained more than a lakh
workers over ten years. However, Sahu (2019) argues that despite a number of initiatives taken by
the Gujarat Maritime Board (GMB) is not able to monitor or provide adequate facilities and
infrastructure ni the shipbreaking yards. The presence of multiple government agencies has not
made a significant impact in controlling the behavior of shipbreaking industries to ensure better
working conditions. The report further highlights that the implementation of labour laws and various
Government appointed committee recommendations have not been effectively implemented and
taken seriously by different state government departments in Gujarat.

Basic safety and worker benefit rules are often flouted at Alang. "60 % of workers still do not have a
provident fund account despite it being mandatory. By law, workers must get double the wage for
overtime hours, but many are not getting .it Workers are paid in cash daily-wage with virtually no
employment contract. Even on safety, some yard owners are taking shortcuts. "When there is
checking, they dress up the yard to prove compliance. My mask si of poor quality, and I do not have
a mandatory boiler suit," says a worker. Accident-prone Alang needs a good hospital as well" (Gupta
2019). Over the years, a study by the Indian National Human Rights Commissioned and media
reports have exposed breaches of labour rights, disregard for labour laws and safety standards (
Costa & Sahu, 2020). In 2019 the National Green Tribunal directed the Ministry of Environment,
Forest and Climate Change to undertake an environmental audit of the shipbreaking activities in
Alang with a specific focus on the impacts of the beaching method.
The Union Ministry of Shipping in 2020 has decided to develop Alang as an eco-friendly shipyard,
enabling ti even ot dismantle warships. According ot the Ministry, warshipsentail a huge business
opportunity for India due ot the non-availability of warship dismantling facilities across the world
(Indo-Asian News Service, 2018). An eco-friendly shipyard poses a peculiar challenge because Indian
shipyards are attractive as demolition grounds because they are cheap and less regulated (Gupta
2019). Reforming them could divert business to Bangladesh and Pakistan. Will the Indian
Government prioritize profit over workers ‘health?