Pakistan's Shipbreaking Industry Faces Critical Deadline

Pakistan's Shipbreaking Industry Faces Critical Deadline

Gadani facilities risk closure if they fail to comply with the Hong Kong Convention.

Gadani, once among the world's largest shipbreaking yards, is under serious threat due to delays in complying with the International Maritime Organization's (IMO) Hong Kong Convention (HKC). Adopted in 2009, the HKC aims to ensure the Safe and Environmentally Sound Recycling of Ships (SENSREC). The convention will enter into force on June 26, 2025, after which non-compliant yards will be prohibited from dismantling ships.

Unlike other countries that began preparations years ago, Pakistani yards have been slow to react. As a result, while other major shipbreaking nations have multiple HKC-compliant yards, Pakistan has none. The complexity and time required to implement HKC regulations make it highly unlikely that Pakistani yards can meet the deadline.

Experts warn that any disruption in shipbreaking activity will make HKC compliance economically unfeasible and highly challenging. Continuous shipbreaking operations are crucial to ensure viable HKC implementation. Other countries have achieved compliance while maintaining operations, and Pakistan needs to follow suit. Therefore, it is essential to find ways to continue shipbreaking activities until conventional recycling yards obtain HKC certification.

Karachi Shipyard and Engineering Works (KSEW) offers a glimmer of hope.

At a recent symposium on SENSREC hosted by the National Institute of Maritime Affairs (NIMA), the Karachi Shipyard and Engineering Works (KSEW) proposed utilizing its facility for shipbreaking. This suggestion offers a glimmer of hope for the continuation of shipbreaking in Pakistan.

KSEW is the only facility capable of rapidly implementing HKC requirements. Although it can only accommodate smaller vessels, it will ensure the continuity of the shipbreaking business. This will enable shipbreakers to allocate funds for HKC implementation in Gadani yards. Moreover, KSEW training facilities can be used for staff training, a core requirement of the HKC.

In the long term, this approach will prepare Pakistan for a future where dry docking replaces beaching as the primary method for ship demolition. Additionally, KSEW is well-positioned to qualify for the European Union's whitelist of yards meeting EU Ship Recycling Regulations (EU-SRR), potentially becoming the first yard in the subcontinent to achieve this distinction.

Given the time-sensitive nature of the HKC deadline, it is imperative that all stakeholders collaborate to capitalize on the opportunity presented by KSEW management. Collective action is necessary to ensure the continuity of shipbreaking activities in Pakistan.

The shipbreaking trade holds greater significance than merely being a steel supplier to rolling mills. It has the potential to drive the development of a multi-million dollar ship services sector in Pakistan, generating substantial economic benefits and granting the country a greater say in international shipping affairs.