Indian beaching yards spark fresh EU ship recycling dispute

A new dispute is growing in Europe over two Indian ship recycling yards that could be added to the EU-approved list. As gCaptain reported, environmental, labour and recycling groups are asking the European Commission to reject two facilities in Alang-Sosiya, Gujarat: Shree Ram Vessel Scrap/Shree Ram Shipping Industries and YSI Recyclers LLP. They would be the first Indian yards to join the EU system if the proposal is approved. Both use the beaching method, in which ships are brought onto tidal areas before dismantling.

The main concern is the environmental risk linked to beaching. The groups say the method can make it harder to control oil, fuel and other hazardous materials during recycling. They also referred to a heavy fuel oil spill at another Alang yard earlier this year. European steelmakers and recycling companies have joined the opposition, arguing that approval of the two yards could put European facilities at a disadvantage after they invested in stronger environmental, safety and waste-management systems. The groups also want Europe to keep more ship recycling and scrap steel processing within the region.

The shipping industry has taken a different position. BIMCO, ECSA, the International Chamber of Shipping, INTERCARGO, INTERTANKO and the World Shipping Council, together with CLIA and INTERFERRY, have called on EU governments to approve the two yards. In a letter sent on September 17, they argued that recycling facilities should be judged on whether they meet EU safety and environmental requirements, rather than on their location or the method they use. The industry groups also point to major investments in upgraded infrastructure, safety systems and environmental management at the two facilities.

At the centre of the dispute is a wider question for the EU: should the use of beaching prevent a yard from entering the European system, or can an individual facility prove that it meets the required standards? The debate comes as international ship recycling rules are also developing. The IMO Hong Kong Convention entered into force on June 26, 2025, setting global requirements for safe and environmentally sound ship recycling. Under EU rules, ships flying an EU member-state flag can only be recycled at facilities included on the European List. The decision on the two Alang yards could therefore influence how Europe approaches ship recycling in South Asia.

 

Picture: GMS