GADANI, once among the world’s largest shipbreaking facilities, is facing the risk of becoming redundant. The primary reason for this looming threat is the recycling yards’ delayed response to the International Maritime Organisation’s Hong Kong Convention (HKC) deadline.

Adopted in 2009, the HKC aims at ensuring Safe and Environmentally Sound Recycling of Ships (SENSREC). The convention will come into effect on June 26, 2025. After the cut-off date, non-compliant yards will be barred from demolishing ships. Unlike other countries that began preparations years ago, Pakistani yards were slow to react. The result is that while other major shipbre-aking countries have multiple HKC-compliant yards, Pakistan has none.

The complexity and time requirements of implementing HKC-related regimes make it highly unlikely that Pakistan’s shipbreaking yards can meet the deadline. With no HKC-compliant yard in Pakistan, the shipbreaking industry is likely to come to a halt once the convention takes effect.

Any disruption in shipbreaking activity will make HKC compliance economically unfeasible and highly challenging. A continuous shipbreaking operation is crucial to ensure a viable HKC implem-entation. Other countries have done it with ongoing shipbreaking operations, and we have to follow suit.

Therefore, we have to find ways and means to continue with shipbreaking activity till our conventional recycling yards get HKC certification.

Although the situation appears dire, there is still hope. At a recent symposium on SENSREC, hosted by the National Institute of Maritime Affairs (NIMA), the Karachi Shipyard and Engineering Works (KSEW) proposed utilising its facility for shipbreaking. This suggestion offers a glimmer of hope for the contin-uation of shipbreaking in Pakistan.

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

In the long term, this approach will prepare Pakistan for a future where dry docking will replace beaching as the sole 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 subcontinent’s first yard to achieve this distinction.

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

The trade of shipbreaking holds greater significance than being merely 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 greater say in the affairs of international shipping.

Muhammad Mohsin Zaidi
Karachi

Published in Dawn, December 16th, 2024