The Hindu Business Line : Paradip throughput growth pegged at 13.3 pc

The Paradip Port Trust (PPT) has projected cargo throughput of 37.5 million tonnes (mt) for 2006-07, thus hoping to achieve an estimated 13.3 per cent growth over 2005-06 when the port handled 33.1 mt. In 2005-06, the port had posted 10 per cent growth over the previous year's figure of 30.1 mt.

The bulk of the projected increase of 4.4 mt of traffic in 2006-07 is estimated to be in the form of crude and petroleum products. In the current fiscal, PPT proposes to handle an estimated 3.5 mt of crude and petroleum products, compared to 0.91 mt in 2005-06.

Such a big jump, it is felt, will be possible because of the commissioning of the Paradip-Haldia crude pipeline during the course of the year. The commissioning of the pipeline is expected to bring an additional three mt of traffic, almost entirely crude, to the port. An estimated additional one mt of traffic will be generated by way of larger imports of fertiliser raw material (dry) by IFFCO, which has acquired the local fertiliser plant from the Oswals, where production is likely to commence soon.

In 2005-06, imports of fertiliser raw material were to the tune of 1.56 mt, which is targeted to rise to 2.45 mt in the current fiscal.

Modest rise

The traffic projections for 2006-07 suggest that the throughput of other items will record modest increases compared to last year.

Iron ore traffic is estimated to be 10.5 mt (10.27 mt). The corresponding figures for other items are: thermal coal 13 mt (12.53 mt), coking coal four mt (3.76 mt), containers 0.050 mt (0.045 mt), and others four mt (4.026 mt).

Speaking to Business Line over phone from Paradip, Mr K. Raghuramaiah, Chairman of PPT, said that the port's iron ore handling capacity had virtually reached saturation point, as a result of which there is hardly any scope for achieving a major breakthrough in throughput in the current year.

The port handled - both in iron ore plant and manually - more than 10 mt in 2005-06 over the existing capacity of six mt.

Thermal coal presents bleak prospects. Although the port has the capacity to handle 20 mt annually for coastal shipments, throughput in 2005-06 was a little over nine mt as the coal linkage committee steadily cut down on the allocations during the year.

"We are not very hopeful about the prospects of thermal coal traffic for coastal shipments."

Banking on Railways

However, thermal coal imports through the port are steadily rising.

The PPT Chairman is not sure about the prospects of coking coal (imports) traffic either. Much will depend on the Railways, because in the allotment of wagons it prefers longer lead - more than 800 km.

However, the coking coal imported through the port is meant for users located within a much shorter distance.

"As the situation stands now, we are pinning our hopes on IOC for crude and IFFCO for fertiliser raw materials (dry) to boost our cargo throughput in 2006-07."