SIGNIFICANCE OF GADANI SHIP BREAKING YARD

(Mohsin Naseer)

One of the biggest shipbreaking yards in the world is located in Balochistan, near the sea-side town of Gadani. The Gadani ship breaking yard has 132 ship-breaking plots spread on a sea-shore that is 10 km (6.2 miles) long. After Aliaga of Turkey and Alang of India and Chittagong of Bangladesh, Gadani of Pakistan is the third-largest shipbreaking yard globally.

The ship breaking industry is a major source of income and employment for Balochistan. International Labor Organization (ILO) states that the Gadani ship breaking yard directly employs about 6,000 people and indirectly supports another 30,000.

The Gadani ship breaking yard supplies raw materials to several enterprises that produce steel, iron, copper, brass, aluminum, and wood, which bolsters our national economy. Local steel mills and rerolling mills use the steel scrap from Gadani to make steel bars, rods, pipes, and sheets. Foundries and engineering workshops use iron scrap to create castings and machine components. The electrical and metal industries use the scrap copper, brass, and aluminum to manufacture wires, cables, cutlery, and ornamental objects. Carpenters and furniture makers use the leftover wood to create tables, cabinets, windows and doors.

The Gadani ship breaking yard also recycles various items from the ships, such as generators, engines, boilers, compressors, pumps, valves, pipes, fittings, cables, switches, lights, fans, air conditioners, refrigerators, furniture, mattresses, carpets, curtains, utensils, crockery, books, magazines, paintings, and souvenirs. These items are sold in local markets or exported to other countries.

The Gadani ship breaking yard has a history of more than four decades. It was established in the 1960s and reached its peak in the 1980s when it was the largest ship-breaking yard in the world with more than 30,000 direct employees. However, it faced a decline in the 1990s and 2000s due to increased competition from newer facilities and higher import duties for decommissioned vessels in Pakistan.

In 2001, the Government of Pakistan reduced the ship-breaking duties including taxes and tariffs from 15% to 10% and aimed to offer further incentives if industry activity improves. As a result, the Gadani Ship breaking yard witnessed a revival in the 2010s and achieved a record output 0f 107 ships with a combined Light Displacement Tonnage (LDT) of 852,022 tons in the fiscal year 2009-2010.

The Gadani ship breaking yard is also known for its efficiency and speed in dismantling ships. It can break up to 125 ships of all sizes per year with a combined light displacement tonnage of 1 million tons. It takes only 30 to 45 days to break a ship with 5,000 LDT at Gadani compared to more than six months at Alang or Chittagong.

The Gadani ship breaking yard is a vital source of income and employment for Balochistan and a significant contributor to the local and national economy. It is also a place where old ships are given a new life by being recycled into useful materials and items. The Gadani ship breaking yard is a testament to the resilience and resourcefulness of the people of Balochistan who have turned a barren beach into a bustling industrial hub.

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