Raja Simhan T.E.

The port's improved performance was not because of any major infrastructure augmentation. It was because of improved efficiency and the good global iron ore market.

MR PRAVIN Agarwal, Chairman, Mormugao Port.

Recently in Mormugao

Mormugao port, with its natural harbour, is one of the oldest ports on the west coast. Declared a major port in December 1963, it is the port through which huge volumes of iron ore are exported, with an annual throughput of around 23 million tonnes (total cargo throughput is about 32 million tonnes). The port accounts for about 40 per cent of India's iron ore export.

Mr Praveen Agarwal took over as chairman of Mormugao Port Trust recently, and has lined up various projects for the port, including a cruise terminal and an offshore terminal. Mr Agarwal, who was earlier Deputy-Director-General of Shipping, Mumbai, spoke to Business Line on the port's performance and expansion plans.

Excerpts from the interview:

How has the port's performance been in the last three years?

It has been consistent. This fiscal the port will handle 32 million tonnes (30.5 million tonnes) while the Shipping Ministry's target was 34 million tonnes. The shortfall was due to refurbishment of barge unloaders and the severe monsoon conditions during August-September. However, this year's performance was better than last year's.

What about the financial performance?

This fiscal our profit will be about Rs 30 crore (from Rs 26 crore the previous year) on a turnover of about Rs 220 crore — more or less the same as last year. We are cutting costs in all areas, including maintenance and inventory, which will increase our profitability.

For instance, we have devised a scrap management policy. Scrap was occupying valuable space inside the port, and was stored close to iron ore. We have now identified the right space to store it. The port generates about 120 tonnes of scrap every year from conveyor belts and idlers (rollers on which conveyors move), and we get Rs 40-45 lakh a year from scrap sales.

We are now using the Internet to auction the scrap. We have also rationalised our inventory across all departments. Another ongoing process is consolidating the port's properties.

Has the port infrastructure improved along with the cargo increase?

The port's improved performance was not because of any major infrastructure augmentation. It was because of improved efficiency and the good global iron ore market.

There is a lot of pressure on infrastructure and, unless we augment our facilities, there will be very little improvement in traffic. For instance, the MOHP (mechanical ore handling plant) is nearly 25 years old and has the capacity to handle annually 15 million tonnes. But it is handling 12-12.5 million tonnes and this is up to the optimum.

How do you plan to boost the iron ore traffic?

We need to create more storage space for iron ore and augment the capacity of the MOHP. We also need more berths for iron ore.

Due to the region's unique topography, there is not enough land, rail and road connectivity. These are the port's biggest handicaps. We depend heavily on inland waterways.

(There are 25-30 iron ore mines in and around Mormugao. The cargo is brought to the nearest point for loading into barges. It then travels to the port through the Mandovi River from the north, and Zuari River from the south. The ore is handled by an MOHP that includes massive bucket-wheel loaders and miles of conveyor belts.)

How are you catering to the iron ore mines of Hospet and Bellary?

We are developing a wagon handling system for the Hospet and Bellary iron ore industry. If implemented, the port will get an additional 5 million tonnes of cargo. This project is at a preliminary stage and we need to invite expression of interest from operators. We will offer the berth on a build, operate and transfer basis.

The project will cost about Rs 80 crore and will be ready by 2007. Four parties have shown interest in the project. We will use a mechanised system by which railway wagons will bring iron ore that will be handled automatically. Richer grade iron ore goes to New Mangalore or Chennai.

What is the position on liquid cargo and container handling?

Our biggest handicap is that we cannot handle liquid cargo, and our container throughput is about 10,000 TEUs year. This is because there is a lack of facilities in the hinterland. Traffic increase in ports such as Kandla and Haldia was because of increased efficiency in handling of liquid cargo.

We are a bulk handling port and it is difficult for us to develop other cargo. We can only augment the handling of iron ore, and general cargo such as granite and barytes.

Are you considering the possibility of a cruise terminal?

We are studying the possibility of establishing an exclusive cruise terminal, which has a lot of potential for revenue generation. We are yet to decide on the location.

Earlier, a Rs 185-crore multipurpose terminal for cruise and container vessels was suggested. However, we are now contemplating an exclusive cruise terminal.

How many cruise vessels call at the port?

Super Star Libra — plying between Mumbai and Lakshadweep Islands via Mormugao — visits the port twice a week, and seven foreign vessels from South-East Asia and West Asia call the port regularly. Next year we expect more foreign cruise vessels to call the port.

What other option do you have to attract cargo?

We are also examining setting up an offshore base in Goa to serve the oil industry. We will target companies engaged in exploration of oil in and around Bombay Oil Fields. We will have a centralised place where people can stack and store materials. There is a great demand for such an infrastructure. About 300 supply vessels, including support vessels and supply vessels to rigs, operate in this area feeding the oil platforms, and many companies have shown interest in this project.

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