Iron ore exports fall hits Vizag Ports' handling targets

Due to fall in iron ore exports, the Visakhapatnam Port is in a dilemma as to how to meet the shipping ministry's targets in cargo handling.

During the first half of the current fiscal, the port failed to reach even the cargo handling figures of the last corresponding period. As a result, it is witnessing a shortfall of more than 45 lakh tonnes of the ministry's target for the same period.

During the first half of the last fiscal, it handled about 264 lakh tonnes of cargo, but during the first half of 2006-07, the port handled about 260 lakh tonnes, a shortfall of about 4 lakh tonnes. However, the port recorded a dip of more than 45 lakh tonnes against the ministry's target.

Originally, the ministry fixed a handling target of 309 lakh tonnes for the first six months of the current fiscal. But the port handled only 260.8 lakh tonnes during the period.

"Though we have witnessed a remarkable growth in POL (petroleum products) handling, an abnormal fall in iron ore exports has badly affected our handling figures," sourced told Business Standard.

The port exported about 81.19 lakh tonnes of iron ore in the first half of 2005-06, whereas the exports came down to 65.78 lakh tonnes during the first half of the current fiscal. Thus, the cargo handling witnessed a shortfall of about 16.17 lakh tonnes.

The other reason for the shortfall of the target is said to be the delay by the National Mineral Development Corporation and MMTC Limited in finalising price agreements with Japan iron ore buyers.

"Due to thing reason our iron ore exports have been severely effected during the first three-four months of the current fiscal. Apart from this, iron ore arrivals to the Vizag port from the Bellari-Hospet section totally stopped because of high railway freight. However, we are anticipating high volumes of ore exports over the next six months," K S D Dattu Raju, traffic manager, Vizag port, told Business Standard.