SHIPBREAKING INDUSTRY IN PAKISTAN&

ALUMINUM

UNIVERSITY COLLEGE

Presented By:Umair AliReg. No. A 11027080Faculty of MBA (II)

Presented To:Mr. Nadeem Faraz Ahmed

SHIP-BREAKINGShip breaking is the process of dismantling a ship that has been retired from active use. The idea behind this process is to salvage as much of the material from the ship as possible and recycle the components in some manner. Also known as ship demolition and ship recycling, ship breaking is usually employed when the cost of repairing the ship and keeping it in active use can no longer be justified.

For most of the 20th century, the majority of the ship breaking activity in the world was carried out in Great Britain and the United States. During the final half of the century, shipyards that engaged in ship breaking began to appear in various countries around the Middle East as well as in South America. By the beginning of the 21st century, ship breaking had become a common task that is performed in many shipyards around the world.

PAKISTAN’S SHIP-BREAKING YARD GADANI

Gadani ship-breaking yard is the world's third largest ship breaking yard. The yard consists of 132 ship-breaking plots located across a 10 km long beachfront at Gadani, Pakistan, about 50 kilometers northwest of Karachi.

In the 1980s, Gadani was the largest ship-breaking yard in the world, with more than 30,000 direct employees. However, competition from newer facilities in Alang, India and Chittagong, Bangladesh resulted in a significant reduction in output, with Gadani, today, producing less than one fifth of the scrap it produced in the 1980s. The recent reduction in taxes on scrap metal has led to a modest resurgence of output at Gadani, which now employs around 6,000 workers.

In the 2009-2010 fiscal year, a record 107 ships, with a combined light displacement tonnage (LDT) of 852,022 tons, were broken at Gadani whereas in the previous 2008-2009 fiscal year, 86 ships, with a combined LDT of 778,598 tons, were turned into scrap.

PAKISTAN’S SHIP-BREAKING YARD GADANI

CAPACITY OF GADANI SHIPBREAKING YARD:

Gadani currently has an annual capacity of breaking up to 125 ships of all sizes, including supertankers, with a combined LDT of 1,000,000 tons.

Although Gadani ranks as the world's third largest ship breaking yard after Alang and Chittagong in terms of volume, it is the world's leading ship breaking yard in terms of efficiency. At Gadani, a ship with 5,000 LDT is broken within 30 to 45 days, whereas in India and Bangladesh, it takes, on average, more than six months for breaking a vessel of the same size.

OPERATIONS OF GADANI SHIPBREAKING YARD:

Ships to be broken up are run aground on the beach under their own power, then gradually dismantled. As the weight of the ship lessens, it is dragged further onto the beach until completely scrapped. In common with many other breakers in the region, scrapping ships at Gadani uses large amounts of local cheap labor with minimal mechanical assistance.

BENEFITS FROM SHIP-BREAKING TO ECONOMY

Production of steel: the scrapping of ships provides the country’s main source of steel and in doing so saves substantial amount of money in foreign exchange by reducing the need to import steel materials. The iron from recycled ships supplies iron materials in the country. This does mean however, that the owners have more power and control over the amount of steel that is sold and the price it is sold at.

In some ways it can be considered a “green industry”. Almost everything on the ship and the ship itself is recycled, reused and resold. The scrapping of ships supplies raw materials to steel mills, steel plate re-manufacturing, asbestos re-manufacturing as well as providing furniture, paint, electrical equipment and lubricants, oil to the number of businesses that have spouted up specifically as a result.

BENEFITS FROM SHIP-BREAKING TO ECONOMY

It generates large amounts of revenue for various Government authorities through the payment of taxes. Every year the Government collects almost 9000 million taka in revenue from the shipbreaking industry through import duty, yards tax and other taxes.

Employment. Despite the conditions that the workers are employed under, this is an industry that employs more than 6,000 people directly. It provides employment for some of the poorest people from the region who would otherwise have no employment

These mainly economic benefits have made shipbreaking a powerful industry. But these economic benefits should be considered together with the social and environmental costs. Together, with better regulation shipbreaking can also bring social and environmental benefits.

S.W.O.T. ANALYSIS OF THE INDUSTRY

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective

ALUMINUM

Aluminum is an abundant metallic chemical element which is widely used throughout the world for a wide range of products. Many consumers interact with some form of aluminum on a daily basis, especially if they are active in the kitchen. The element has an atomic number of 13, and it is identified with the symbol Al on the periodic table of elements. It is classified in the poor metals, sharing the property of extreme malleability with metals like tin and lead.

TYPES/USES OF ALUMINUM

ALUMINUM PLATE Most pizza plates sold today tend to be medium or large in size, but smaller types are

also available. Aluminum plates are lightweight and are often available in sizes suitable for serving small pizzas.

One of the main reasons woodworkers have for replacing a router plate is that it's easier to monitor the progress of work using a clear acrylic router plate than the opaque aluminum plate. Some will also want a larger plate to increase the amount of surface area that comes in contact with the workpiece, contributing to the stability of the process and accuracy of the work, as well as the overall safety of the project.

ALUMINUM TUBE Steel tubes tend to be heavier, but they are exceptionally strong as well. Aluminum tubes

are much lighter, but they cannot support as much weight as steel tubes can. Being more flexible than steel, copper tubing is more easily adjusted and manipulated in

small spaces and around corners. Aluminum tubing is great for making bicycle frames, and both brass and aluminum tubing are commonly used in the building of models.

TYPES/USES OF ALUMINUM

ALUMINUM ALLOYS

Silicon, an aluminum alloy, is used to manufacture semiconductor materials. Copper, another aluminum alloy, is used for a wide variety of purposes from shipbuilding to roofing.

ALUMINUM SHEET

Thicker aluminum sheet will normally require the use of a CO2 laser, which is more powerful than the neodymium-class lasers. Laser cutting aluminum can be accomplished by either moving the aluminum sheet beneath the optical cutting head, or by moving the optical head over a stationary sheet of aluminum.

ALUMINUM CIRCLES

Many of the satellites circling the Earth are protected from space debris by layers of anodized aluminum. The automobile industry relies heavily on anodized aluminum for trims and protective housings for exposed parts.

RECOMMENDATIONS

More Investment in needed in Pakistan to achieve an adequate institutional capacity, to provide ground-level protection for SBRI (Shipbreaking and Recycling Industry) workers, and to enforce environmental regulations. Although the SBRI industry is situated in a relatively unpopulated area, infrastructure improvements are needed in the capacity and safety of the main road for transport of all waste and reusable materials generated in the ship recycling yards.

Significant infrastructure and capacity development in the hazardous waste management sector is required in particular in the long term in order to achieve proper storage and disposal levels leading to compliance with national regulations, the Hong Kong Convention, and other relevant international agreements. Investments in hazardous waste management and waste disposal may present opportunities for engaging in public-private partnerships to the benefit of the local urban area of Hub, the greater urban zone of Karachi, the Port of Karachi, and the ship breaking and recycling industry.

References:

WikiPedia (http://www.wikipedia.com)

Alibaba (http://www.alibaba.com)

Report on Shipbreaking and Recycling Industry on Pakistan – 2010 (By World Bank)