Gadani ship-breaking rebounds: 10 ships beached

GADANI (TKP Report): Pakistan’s ship-breaking industry is showing signs of revival after a prolonged slowdown, with 10 vessels reportedly beached simultaneously at the Gadani Ship-Breaking Yard as renewed activity raises hopes for the recovery of one of the country’s major sources of recycled steel.

Ship-breaking sources confirmed that the arrival of the 10 vessels marks one of the busiest phases at the yard in recent years. The renewed activity is being linked to efforts to bring ship-recycling facilities in line with international safety and environmental standards, potentially restoring confidence among international shipowners in Pakistan’s ship-breaking capacity.

The development is expected to provide fresh momentum to the domestic iron and steel industry, which relies on scrap recovered from dismantled vessels to supply raw materials to steel mills and other industrial units.

Pakistan’s ship-breaking sector, concentrated along the coast of Balochistan, has faced years of challenges involving workplace safety, environmental protection and compliance with international standards. Industry stakeholders believe that modernization of the Gadani yard could help the country regain its position in the global ship-recycling market.

Pakistan submitted its instrument of accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships to the Secretary-General of the International Maritime Organization (IMO) in 2023. The convention entered into force internationally on June 26, 2025, establishing binding requirements for safe and environmentally responsible ship recycling.

Under the convention, ship-recycling facilities must meet standards covering worker health and safety, environmental protection, hazardous-material management and the preparation of ship-specific recycling plans. Facilities are also required to establish appropriate procedures for handling dangerous substances and ensuring that workers receive suitable training and protective equipment.

Sources said Gadani has 132 ship-breaking yards that need to be brought into line with modern safety and environmental requirements. According to the sources, only 5 yards have so far been modernized in accordance with the convention, while the remaining 127 require improvements in phases.

The modernization effort is expected to involve more than changes to dismantling operations. Sources said plans also envisaged the construction of roads, a 30-bed hospital, a school and solar-power infrastructure in the Gadani area to support industrial activity and improve facilities for workers and the surrounding community.

The government has reportedly allocated Rs12 billion for the development of the Gadani Ship-Breaking Yard to support the modernization drive and associated infrastructure. However, details of the allocation, including the amount released, expenditure incurred and implementation timeline, remain important indicators of how quickly the planned improvements can be completed.

Sources said the five upgraded yards have introduced measures including the provision of safety equipment, worker training, medical arrangements and environmental monitoring. The expansion of these standards to the remaining yards is expected to be critical to ensuring that the revival is sustained rather than limited to a temporary increase in vessel arrivals.

For Pakistan’s steel industry, a sustained recovery in ship-breaking could improve the availability of domestically recovered scrap and reduce reliance on imported raw materials. Increased dismantling activity could also generate employment for workers involved in cutting, sorting, transporting and processing steel, while creating business opportunities for transporters, traders and other service providers.

The potential economic benefits extend to the coastal belt of Balochistan, where ship-breaking remains an important source of industrial activity and livelihoods. Improved roads, healthcare facilities, education and energy infrastructure could further support the local economy if the proposed projects are implemented effectively.

However, industry observers say the long-term success of the revival will depend on whether safety and environmental standards are consistently enforced across the yard. Modernization of only a small number of facilities would leave much of the industry facing the same compliance challenges that contributed to its earlier difficulties.

Gadani has previously attracted scrutiny over industrial accidents, hazardous waste and inadequate worker-protection arrangements. Bringing the remaining yards into compliance, ensuring transparent use of development funds and maintaining effective monitoring will therefore be essential to protecting workers and the environment.

The beaching of 10 vessels offers an encouraging sign for the industry, but the broader test will be whether Pakistan can translate renewed arrivals into sustained ship-recycling activity under internationally recognized standards. If modernization proceeds across the yard, Gadani could strengthen its contribution to domestic steel production, employment generation and Pakistan’s maritime economy.