Iron ore exporters propose private port near Tadri

With the demand for Indian iron ore increasing from China, exporters and mining companies have proposed to set up an exclusive port on Karnataka's coast through a public-private partnership.

The proposal has been submitted to Governor Rameshwar Thakur by iron ore exporters from Karnataka and Goa under the umbrella of the Federation of Indian Mineral Industries (FIMI). The first round of meeting between the FIMI and the government has been completed.

"We have been told that the proposal will be cleared by the government within three months. We are hopeful of commissioning the port three years from now," FIMI senior committee member Basant Poddar told reporters on Tuesday.

At present, iron ore exporters use ports at Mangalore, Karwar and Belikeri to export ore to foreign countries. The three ports routed over 12 million tonnes last fiscal. "These ports are not in a position to handle the additional iron ore supply. Besides, they are not modern or mechanised. Therefore, we have proposed a dedicated port," he added.

Karnataka, which has the second largest deposits of iron ore reserves (3.44 billion tonnes) in the country, accounts for 30 per cent of the total iron ore exports (92 million tonnes) from India. Apart from exporting ore through three ports in Karnataka, the mining companies use ports in Goa and Chennai.

According to FIMI, the proposed private port will help the iron ore companies reduce the freight cost. The project involves an investment of Rs 1,000 crore over two phases. While the government is already in possession of the land near Tadri in Uttara Kannada district for the port, the investment will be made by the mining companies and exporters.

In the first phase, the port will be able to handle 5 million tonnes per annum. Iron ore will be transferred from the ports to ships anchored in deep water using barges.

In the second phase, the port's iron ore handling capacity will be doubled to 10 million tonnes. "Once the second phase is completed, bulk carriers with capacity of 300,000 tonnes can dock at the port to load iron ore. The entire port will be mechanised and automated," Poddar added.

He pointed out that the idea was to make Tadri an all-weather deep water commodity port. "It will be dedicated exclusively for iron ore exports. We will allow the import of limestone and coal," he said.

Tadri is located 150 km north of Mangalore and is well connected by the Konkan Railway track that runs along the coast. The distance between Bellary-Hospet-Sandur region (primary iron ore bearing belt) is 400 km.

"In the first phase, trucks will transport iron ore from the mines to the port. We have urged the Indian Railways to connect Talaguppa in Shimoga district with Honnavara in Uttar Kannada district (55 km) through a joint venture with us. Once this materialises, iron ore can be transported to the port using the railway connectivity," he pointed out.