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Monday, 10 August 09
SAIL, TATA STEEL TO REDUCE COAL IMPORTS BY PARADIP PORT


World Shipping News reported that, Steel Authority of India Ltd (SAIL) and Tata Steel have scaled down coal imports through Paradip Port, hit by pre-berthing detention problem.

SAIL has no plans so far to bring any vessel to Paradip in August.

“In June, we could load two rakes at Paradip and in July, nine againstthe earlier 40 to 45 rakes a month on an average,” said SAIL sources. SAIL imports coking coal through Paradip.

Tata Steel, which also imports coking coal and limestone through Paradip, in past few weeks diverted three ships, all carrying imported coking coal, to other ports – two to Gangavaram and one to Visakhapatnam.

“We’ve not taken any firm decision on whether or not to avoid Paradip in favour of other ports,” said company sources, adding, “we will take a call depending on the extent of congestion prevailing at the time our next vessel becomes due for arrival”.

Meanwhile, the company’s average rake loading at the port has substantially dropped. “We’re now loading whatever little stocks left at the port,” the sources add.

Inquiries reveal that SAIL would like to step up imports of coking coal through Visakhapatnam port. In August, the plan, tentative so far, is to load as many as 160 rakes at Visakhapatnam compared with 119 each in July and June. The reason being that the SAIL plants located far away from Visakhapatnam port – Durgapur, Rourkela and Bokaro – will be supplied with coking coal imported through the port.

Infrastructure hurdles

“The arrangement will entail huge additional rail freight in addition to myriad operational problems but we’ve no choice,” the sources said. “The coal stock position is critical at the plants.”

Normally, coking coal imported through Visakhapatnam goes to meet the requirement of Bhilai steel plant.

A spokesman for the East Coast Railway serving Visakhapatnam port made it clear that it would not be possible for the Railway to handle more than 4.5 coal rakes a day on an average because of the constraints in physical infrastructure in the port.

Handling more outward rakes presupposed allowing more inward rakes which is not possible in the present situation, more so because the Railway was required to handle other items, both bulk and non-bulk, at the port.

Mr K. Raghuramaiah, Chairman of Paradip Port Trust, conceded that the pre-berthing detention of ships at the port was a matter of concern. As many as 54 ships were waiting for berth on Thursday and some of them for the past one month.

A coal ship had been waiting for nearly two weeks. He, however, said that PPT had no information about SAIL skipping Paradip port. SAIL’s demand for ousting priority to its coal vessels was challenged in Orissa High Court by a private firm, with the result only one vessel could be accorded the priority, he said.

Despite the congestion problem, PPT, the Chairman pointed out, posted highest traffic growth of 22.24 per cent among all major ports between April and July when the traffic throughput of the port was 18.21 million tonnes as compared with 14.89 mt during the same period of last year.
Source: World Shipping News



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