The yard consists of 132 ship-breaking plots located across a 10 km long beachfront at Gadani, Pakistan, about 50 kilometres northwest of Karachi. In the 1980s, Gadani was the largest ship-breaking yard in the world, with more than 30,000 direct employees. However, competition from newer facilities in Alang, India and Chittagong, Bangladesh resulted in a significant reduction in output, with Gadan
i, today, producing less than one fifth of the scrap it produced in the 1980s. The recent reduction in taxes on scrap metal has led to a modest resurgence of output at Gadani, which now employs around 6,000 workers. Over 1 million tons of steel is scavenged per year, and much of it is sold domestically. In the 2009-2010 fiscal year, a record 107 ships, with a combined light displacement tonnage (LDT) of 852,022 tons, were broken at Gadani whereas in the previous 2008-2009 fiscal year, 86 ships, with a combined LDT of 778,598 tons, were turned into scrap. Capacity
Gadani currently has an annual capacity of breaking up to 125 ships of all sizes, including supertankers, with a combined LDT of 1,000,000 tons. Although Gadani ranks as the world's third largest ship breaking yard after Alang and Chittagong in terms of volume, it is the world's leading ship breaking yard in terms of efficiency. At Gadani, a ship with 5,000 LDT is broken within 30 to 45 days, whereas in India and Bangladesh, it takes, on average, more than six months for breaking a vessel of the same size.
