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India's "Ship-Shops" Sink As Business Dries Up

In this photograh dated 21 January 2006, Popatbhai Vittal, an Indian dealer in objects scrapped from decomissioned and dismantled ships, sits in his nearly empty outdoor shop at a shipbreaking yard in Alang, some 260 kilometres south of the Indian state of Gujarat's capital, Ahmedabad. French decomissioned aircraft carrier Clemenceau is awaiting India's Supreme Court decision on 13 February to allow it to reach the Alang shipbreaking yard after environmental groups claimed that Indian workers would be put at risk of asbestos poisoning while scrapping it. Indian shipbreakers, already facing a crisis due to a slump in the industry, said the controversy over the Clemenceau could sound the death knell of their business. AFP photo by Emmanuel Dunand.
by Jay Shankar
Alang, India (AFP) Jan 24, 2006
Popatbhai Vittal took early retirement five years ago from a state-run Indian chemical firm to open a 'ship shop' of items pulled from scrapped vessels at the world's largest shipbreaking yard.

The plan has not worked out.

"For the last six months there has not been a single visitor," said Vittal.

"In the last five years I have not seen such a bad patch. I am planning to close shop and go and assist my brother who is having his own design consultancy firm."

Vittal, 57, who sells carpet, radios, televisions, pillows and wooden shirt hangers at his 'Harsidhti Traders' shop pulled from ships beached and broken up for scrap here, is not alone.

During its peak, the shipbreaking yard at Alang Port, 260 kilometers (161 miles) south of Gujarat state capital Ahmedabad, dismantled more than 350 ships a year.

The shipbreaking yard was set up in 1983 and in 1989 it dismantled 361 ships, weighing three million tonnes in total. But by March 2005 the numbers had fallen to 116, or 540,350 tonnes.

The latest bad news to hit the "ship shops" is the controversy over decommissioned French warship Clemenceau, which may be barred from Alang over safety concerns for workers removing toxic chemicals on board, including asbestos.

The aircraft carrier has been cleared to transit through the Suez Canal, but must remain outside India's territorial waters until a decision is made on a lawsuit by environmental groups seeking to bar its entry.

The Indian Supreme Court is scheduled to issue a final ruling by February 13 on the warship, but the episode has already affected dozens of "ship shops" on the four-kilometre (2.5-mile) street leading to Alang Port.

Bahadur Vajabhai built a 6,000-square-foot (558-square-meter) shop here in the hope it would be "a life-long business."

"It is a sad state of affairs and I and my family are going back to agriculture. This suddenly has stopped paying. There is no business for the last one year," he said.

The shops sport sofas, massive engine parts covered by plastic sheets, rows of chairs and small boats that cost 70,000 rupees (1,555 dollars).

There are also cosmetics, old telephones, casino machines, dining tables and Chinese and Italian cutlery, all neatly arranged.

But there are no customers.

"I have lost interest as there are no serious buyers. The occasional tourist is not a serious buyer. Earlier I used to sell only wholesale. Now I am forced to go retail as I've got to clear my inventory which is rusting," Vittal said.

"I am dipping into my savings to pay rent of 2,500 rupees every month," he said.

Dealers lounge in chairs drinking sweet tea and swatting away flies, or fall asleep on string beds next to piles of Russian-made binoculars and Chinese-made water-proof boots.

"I invested quite a bit into this business which has run into a loss," Vittal said. "Earlier, every month I used to get two to three lots of different products. Now it has stopped completely."

Vajabhai said buyers from state-run corporations or resort owners avoid the area now because bargains are scarce.

"The price of the ships to be demolished has gone up. So now the cost of these items have also shot up. It is almost like buying a new one," he said.

Hemant Manubhai, who sells lamps, said 2005 was the worst year he experienced, a sentiment echoed by scrap dealer Arif Nayani.

"I lost 600,000 rupees in just six months," Nayani said.

Source: Agence France-Presse

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