Detailed Project Report (DPR) on ship breaking industry

  SHIP BREAKING INDUSTRY   [CODE NO.9228]   

     Ship Breaking is as old as ship building. It was being  done
by local craftmen as they were wooden vessels in good days.

     Ship  Breaking  became  an  Industrial  activity  with   the
introduction of steel vessel. It was considered as Scrap Business
in  earlier days. A realization emerged afterwards that this is a
recycling   Industry.  Where  various  types  of  material   made
available from a broken ship is being recycled for another use.

Ship breaking is the process of dismantling a ship that has  been
retired from active use.The idea behind this process is to salvage
as much of the material from the ship as possible and recycle the
components   in  some manner. Also known as ship  demolition  and
ship  recycling, ship breaking is usually employed when the  cost
of repairing the ship and keeping it in active use can no  longer
be justified.


     For  most  of  the 20th century, the majority  of  the  ship
breaking  activity in the world was carried out in Great  Britain
and  the United States.


     During the final half  of  the century, shipyards that engaged
in ship breaking began to  appear
in  various countries around the Middle East as well as in  South
America. By the beginning of the 21st century, ship breaking  had
become  a common task that is performed in many shipyards  around
the world.


     Part  of  the attraction for ship breaking today has  to  do
with  the  practical use of available resources. As part  of  the
process,  components  that  can be salvaged  from  the  ship  are
removed  first. This can include everything from engine parts  to
sleeping bunks and even bulkheads. Once the vessel is stripped of
all components that can be cleaned and reused in other ships, the
remainder  of  the hull undergoes a process  of  demolition  that
often leads to breaking down the shell and selling the pieces  as
scrap metal.

     The  scrap  metal  obtained  from  ship  breaking  sometimes
undergoes  a  melting and purification process  that  allows  the
metal  to be remolded and used to create new components that  are
incorporated  into new ships. This process makes it  possible  to
constantly recycle materials and can often help decrease the cost
associated with the production of newer ships.


     Not all the materials that are separated in a ship  breaking
process  can  be  reused or recycled  into  new  components.  The
asbestos  used in many ships prior to the middle 20th century  is
disposed  of  and  no reused in new  construction.  In  addition,
paints  and other sealants that contain high levels of  lead  and
other  toxins that are no longer in use must be removed from  the
components before harvesting of the materials can take place.  In
some  cases, addressing the proper disposal of contaminants  that
cause a threat to the environment constitute a major part of  the
expense of the effort.

Each ‘EIRI’ MARKET OVERVIEW CUM DETAILED TECHNO ECONOMIC FEASIBILITY REPORT (Complete Report) tentatively covers
•    Introduction
•    Properties
•    BIS (Bureau of Indian Standard) Specifications & Requirements
•    Uses & Applications
•    Present Indian Market Position (Not Survey)
•    Export & Import Statistics Data
•    Names and Addresses of Existing Units (Present Manufactures)
•    List of Plant & Machineries
•    Miscellaneous Items and Accessories
•    Instruments, Laboratory Equipments and Accessories
•    Electrification, Electric Load and Water
•    Maintenance, Suppliers/Manufacturers of Plant and Machineries
•    Process of Manufacture with formulae if applicable
•    Flow Sheet Diagram
•    List of Raw Materials
•    Availability of Raw Materials
•    Requirement of Staff & Labour
•    Personnel Management
•    Skilled & Unskilled Labour
•    Requirement of Land Area
•    Built up Area
•    Plant Layout
Along with financial details as under:
•    Summary of Capital Cost of Project
•    Land & Side Development Exp.
•    Buildings
•    Plant & Machineries
•    Misc. Fixed Assets
•    Technical Know how Fees & Exp.
•    Preliminary Expenses
•    Pre-operative Expenses
•    Provision for Contingencies
•    Cost of Project and Means of Finance
•    Assessment of Working Capital requirements
•    Sources of Finance
•    Break-Even Analysis and profitability analysis.
•    Quantitative Details-Output/Sales/Stocks
•    Raw Material Cost    
•    Other Raw Material Cost
•    Packing Material Cost
•    Consumables, Store etc.,
•    Employees Expenses
•    Fuel Expenses
•    Power/Electricity Expenses
•    Repairs & Maintenance Exp.
•    Administration Expenses
•    Selling Expenses
•    Assumptions for Profitability workings
•    Assessment of Working Capital

Below mentioned financial statements (Annexure) will be  for 5 to 10 Years

•    Annexure:: Cash Flow Chart
•    Annexure:: Balance Sheets
•    Annexure:: Sales Realisation
•    Annexure:: Other Mfg. Expenses
•    Annexure:: Depreciation Charges - Profitability
•    Annexure:: Depreciation Charges
•    Annexure:: Interest and Repayment - Term Loans
•    Annexure:: Tax on Profit