Rs12bn Gadani Shipbreaking Yard Modernisation Project Enters Construction Phase

The Ministry of Maritime Affairs has begun work on the Rs12 billion Gadani Shipbreaking Yard modernisation project, aimed at transforming the facility into a safer and environmentally sustainable ship-recycling hub.

 

Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the development while chairing a steering committee meeting to review progress on the project.

 

He said construction is underway on several key facilities, including a 30-bed hospital, workers’ residential colony, school and solar power infrastructure. The new infrastructure is being developed in line with international safety and environmental requirements.

 

The government had approved $43.3 million in June 2025 for the project, which seeks to convert the coastal shipbreaking facility at Gadani into a model green ship-recycling yard.

 

Gadani was historically one of the world’s major shipbreaking destinations, with decommissioned vessels dismantled there and their materials recycled, reused or sold into the domestic market.

 

Chaudhry said the initiative aims to replace traditional shipbreaking practices with a modern, safer and environmentally responsible ship-recycling industry that complies with international standards. The upgrade is also expected to strengthen Gadani’s role in Pakistan’s steel-scrap market and related supply chains.

 

According to the ministry, the project is designed to bring the yard into compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, an International Maritime Organization framework governing safe and environmentally sound ship recycling.

 

The project includes extensive social and industrial infrastructure, including 32 kilometres of internal roads, a public park, hazardous and industrial waste treatment facilities, fire and rescue stations, and dedicated water treatment systems.

 

Project Director Saeed Ahmed Umrani informed the committee that the project has moved into the active procurement and construction stage, supported by a Rs780 million allocation under the federal Public Sector Development Programme (PSDP) for 2026–27.

 

The maritime affairs minister directed the project authorities to maintain the pace of implementation and ensure that all infrastructure meets the required operational and safety standards.