Ship Breaking and Demolition Yards Across South Asia
South Asia dismantles over 85% of the world's end-of-life vessel tonnage, concentrated in three coastal clusters: Alang-Sosiya (Gujarat, India), Sitakunda (Chittagong, Bangladesh), and Gadani (Balochistan, Pakistan). Together, these facilities process hundreds of vessels annually — from Panamax bulkers and VLCCs to offshore platforms and passenger ships.
The Three Major Clusters
| Cluster | Country | Active Yards | Coastline | Global Share |
|---|---|---|---|---|
| Alang-Sosiya | India | ~130 | 14 km | ~30% |
| Sitakunda (Chittagong) | Bangladesh | ~80 | 18 km | ~20–25% |
| Gadani | Pakistan | ~132 plots | 10 km | ~10% |
Hong Kong Convention Compliance
The Hong Kong International Convention (HKC) entered into force on 26 June 2025, making compliance a key differentiator for yards competing for vessels from European and Japanese owners. India leads the region: over 110 of its ~130 yards hold HKC Statements of Compliance. Bangladesh has 17 certified yards, with PHP Ship Breaking & Recycling Industries being the most prominent. Pakistan's Gadani yards are at an earlier stage of formal certification, though several operators have begun upgrading infrastructure.
What Ship Owners Should Know
- Pricing
- Rates are quoted in USD per Light Displacement Tonnage (LDT). South Asian yards typically offer the highest per-LDT prices globally, making the region attractive for maximizing residual value.
- Vessel Access
- All three clusters use the beaching method — vessels are driven ashore at high tide. Maximum vessel draft and beam constraints vary by plot and tidal conditions.
- Turnaround
- Dismantling timelines range from 2–6 months depending on vessel size, hazardous material inventory, and yard capacity.
- Documentation
- HKC-compliant yards require an Inventory of Hazardous Materials (IHM), a Ship Recycling Plan (SRP), and valid certificates under the Convention before accepting a vessel.