Date:14/07/2005 URL: http://www.thehindubusinessline.com/2005/07/14/stories/2005071401021000.htm

Back Paradip port told to handle more non-coking coal imports

Our Bureau

Kolkata , July 13

THE Shipping Ministry wants Paradip port to handle more non-coking coal imports than estimated earlier.

The earlier indication was that the port would be required to handle 1.5 million tonnes in the current fiscal — an estimated 1 mt for National Thermal Power Corporation's Kanhia plant and another 0.5 mt for National Aluminium Company (Nalco). Now, the port, it is learnt, has been asked to handle an additional 1.5 mt for NTPC alone, bringing the total to 3 mt.

The additional volume, according to Paradip Port Trust sources, can be handled without difficulty. The evacuation of the imported material will pose no problems as the same BOBR rakes, which bring in coking coal from Talcher for coastal shipments through the port, could be used for back-loading. The rakes only have to be shifted from the mechanical mode to the manual mode before loading.

Right now, about seven BOBR rakes per day, on an average, bring in thermal coal to the port, and only one of them is used for back-loading for evacuation of non-coking coal for NTPC.

The Ministry has also set a higher target for the port for iron traffic (for exports). In 2004-05, the port handled 9 mt. The target for the current fiscal was set at 10 mt. However, the Ministry wants to revise it to more than 11 mt.

The sources are not sure if the revised target for iron traffic can be achieved. There are apprehensions that iron ore exports might suffer in view of the declining international prices of the ore following the cooling of the Chinese economy.

In the first quarter, the iron throughput at 2.35 mt, compared to 1.38 mt in the same period last year, posted a more than 69 per cent growth. However, the port sources are not sure if the current trend can be maintained for the rest of the year.

The strike by road transport operators have also dealt a severe blow on iron ore exports through the port. Nearly 60 per cent of the exports is transported to the port by trucks.

In the first quarter (April-June 2005-06), the port's total traffic throughput at 7.85 mt (6.85 mt) grew 14.5 per cent, compared to the national average of 16.26 per cent. Thermal coal traffic at 3 mt (3.18 mt) dipped 5.6 per cent and fertiliser raw materials at 3 mt (6.85 mt) about 54 per cent.

The POL traffic, however, at 2.9 lakh tonnes (1.9 lakh tonnes) rose more than 50 per cent.