BL reported that the number of rakes of iron ore moved to Paradip port for exports has dropped.
Sources in the South Eastern Railway said that in February 2011, six rakes a day on an average were moved into Paradip port, which has since declined to around three rakes. During the same period, throughput at Haldia port has increased from two rakes to 2.5 rakes a day. Iron ore loading for Visakhapatnam port, too, has increased from around 2.75 to three rakes a day.
Earlier, East Coast Railway used to move two to three rakes a day into Paradip, as against virtually nothing now. This has led to two unsatisfactory developments for the railways. First, the rail coefficient has dropped to 51% now from 65% in 2010-11. More ore is being transported by road to Paradip than before. Second, the railways is moving empties or empty rakes to the port to facilitate back loading of imported cargo, particularly coal. On an average, 7 to 8 empties are being moved into the port against none previously, adding to the cost of the railways.
When contacted, Paradip port sources said that iron ore exports through the port dropped in past couple of months despite 13% to 14% growth in the port's overall traffic throughput. It added that "We would have achieved a much higher traffic growth but for not so satisfactory situation on the iron ore front."
While neither the port nor the railways would comment on the why iron ore loading has decreased, inquiries reveal that the crackdown on illegal mining by the Orissa Government could be a major reason. The crackdown has led to closure of several mines in iron rich Banspani Jaruli area.
According to one estimate, about 25% of the mines at Joda under Banspani Jaruli area have not been functioning for past few months. Particularly hit are customers of the wagon investment scheme of the railways, especially traders.
They have invested in rolling stock to get an assured supply of rakes at a concessional freight for uninterrupted movement of ore. Now the rakes are without the ore. They, therefore, have stopped placing indents with the railways. (sourced TheHinduBusinessline)
Sources in the South Eastern Railway said that in February 2011, six rakes a day on an average were moved into Paradip port, which has since declined to around three rakes. During the same period, throughput at Haldia port has increased from two rakes to 2.5 rakes a day. Iron ore loading for Visakhapatnam port, too, has increased from around 2.75 to three rakes a day.
Earlier, East Coast Railway used to move two to three rakes a day into Paradip, as against virtually nothing now. This has led to two unsatisfactory developments for the railways. First, the rail coefficient has dropped to 51% now from 65% in 2010-11. More ore is being transported by road to Paradip than before. Second, the railways is moving empties or empty rakes to the port to facilitate back loading of imported cargo, particularly coal. On an average, 7 to 8 empties are being moved into the port against none previously, adding to the cost of the railways.
When contacted, Paradip port sources said that iron ore exports through the port dropped in past couple of months despite 13% to 14% growth in the port's overall traffic throughput. It added that "We would have achieved a much higher traffic growth but for not so satisfactory situation on the iron ore front."
While neither the port nor the railways would comment on the why iron ore loading has decreased, inquiries reveal that the crackdown on illegal mining by the Orissa Government could be a major reason. The crackdown has led to closure of several mines in iron rich Banspani Jaruli area.
According to one estimate, about 25% of the mines at Joda under Banspani Jaruli area have not been functioning for past few months. Particularly hit are customers of the wagon investment scheme of the railways, especially traders.
They have invested in rolling stock to get an assured supply of rakes at a concessional freight for uninterrupted movement of ore. Now the rakes are without the ore. They, therefore, have stopped placing indents with the railways. (sourced TheHinduBusinessline)
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