With the Supreme Court allowing the e-auction of about 11 million tonnes (mt) of iron ore mined in Goa, the Mormugao Port Trust in Goa could see an increase in cargo. This, however, is just a fourth of about 40 mt of iron-ore cargo the port handled in its heydays.
"It is a very small quantity of cargo and the port they want to transport the cargo depends on exporters. Also, for the same traffic, we will face competition from the neighbouring non-major port," said a senior port trust official.
Business at Mormugao Port has suffered since the government banned exports of iron ore, the primary commodity traded at the port. Earlier, iron ore accounted for most of the port's revenue and 80 per cent of its volumes.
Last financial year, the port incurred a loss of Rs 140 crore. This financial year, all its efforts are aimed at reducing losses. "We will keep the revenue coming in from other commodities," the senior official said. However, due to the rise in salaries every year, the port will record losses in 2013-14, too. The 128-year-old port can barely manage to pay salaries to its 2,500 employees. It has also barred the staff from working overtime.
Between April and October 2013, cargo at the port stood at just 6.3 mt, a drop of 52.65 per cent compared with 13 mt in the corresponding period last year.
To help tackle the fund crunch, the government had announced a bailout package of Rs 300 crore for the port, though this hasn't been availed of by Mormugao Port yet. It is likely the funds would be used for dredging and funding the voluntary retirement scheme.
The port trust is also minimising capital expenditure. "As of now, we are not taking up any new project. We are trying to use our savings from last year to meet our expenditure," the port official said.
To increase revenue, Mormugao Port is planning to build a marina, the clearance for which is pending from Goa's pollution control board.
