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Paradip Port Trust (PPT) has urged the Odisha government to make it mandatory for industries operating in the state to ship at least 50% of their cargo through the port.
“PPT authorities have written to us on their proposal to handle at least 50% cargo generated by industries operating within the state. We have forwarded their proposal to the departments of steel & mines and industries for comments. While PPT's proposal is based on the premise of better utilisation of the port's capacities, we have to examine whether it is legally tenable or not”, said G Mathi Vathanan, secretary (commerce & transport)-Odisha.
PPT officials said there are enough opportunities for companies in the state to use the port infrastructure for handling their cargo.
“There are many companies who can avail the facilities provided by the port, but they are not doing so. Many fishing companies, iron ore exporters and aluminium maker National Aluminium Company-Nalco can use Paradip port for exporting their cargo,” said a port trust official.
The recent proposal from the only major port of the state comes in the backdrop of shrinking iron ore traffic, which has affected the port earnings too. Though the port is yet to come up with financial data for 2012-13, insiders said the profit has taken a beating on poor iron ore shipments.
The port's profit has been declining since 2009-10 on poor iron ore exports. In 2009-10, the profit was Rs 256 crore, in 2010-11 it fell to Rs 240 crore and in 2011-12, it dropped further to Rs 230 crore.
In 2012-13, iron ore exports from the port declined to 4.7 million tonne, sharply down by 72% from 2011-12 as mining problems and huge export duty of 30% clamped down shipments. Still, the port said the exporters should use state-based port instead of ports of neighbouring statse.
Odisha's miners prefer Haldia, Gangavaram and Visakhapatnam ports to send their cargo to China and other South east Asian nations as traffic capacity at Paradip port was limited. But as the port has been expanding its capacity, the authorities said they can accommodate at least half of the 10 million tonne plus iron ore traffic sent from the state.
“We do not say that the we can carry all their traffic, but if they commit to export at least half of their cargo, then we will definitely create infrastructure for them,” the official said.
The port aims to double up existing annual cargo handling capacity of 102 million tonne to 252 million tonne by 2020, with a special emphasis on container traffic.
It has already taken up a host of projects to increase the capacity and has completed the deepening of four berths. The port has initiated proposals to dredge another five berths to 14 meter draft to handle Panamax vessels having capacity to carry 90,000 tonne cargo.
Besides, it has engaged Rites Ltd as a consultant to give a feasibility report on setting up of an Inland Container Depot (ICD) to boost container traffic for exporting fish and other cargo.
