Paradip port: Sailing against the wind

Interview of Port chairman Mr K Raghuramiah




MR K. RAGHURAMAIAH, CHAIRMAN, PARADIP PORT TRUST.

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Santanu Sanyal

In 2009-10, Paradip port posted the highest traffic growth among major ports, both in terms of percentage increase as well as additional absolute volume, braving several odds. In a talk with Business Line recently, Mr K Raghuramaiah, Chairman of Paradip Port Trust, explained the reasons for the growth as well as the challenges ahead.

The performance of your port was significant in 2009-10 when several other major ports did not do too well…

Yes. It is a matter of satisfaction for all of us that Paradip port posted 22.84 per cent growth against the national average of 5.74 per cent in the fiscal just concluded. What is particularly significant is that in terms of additional absolute volume also — nearly 11 million tonnes (mt) — our port topped the list.

How would you explain it?

A substantial jump in oil traffic — more than 8 mt — for both crude and petroleum products helped. But the volumes of other cargoes too increased. Thus, iron ore volume increased by 13.24 per cent at 16.16 mt (14.27 mt), thermal coal by 0.81 per cent at 14.82 mt (14.7 mt) and other cargoes by 8.52 per cent at 9.30 mt (8.57 mt).

But I must also point out that the volumes of fertiliser raw materials dropped by more than 52 per cent at 0.08 mt (0.17 mt) and coking coal by 8.42 per cent at 5 mt (5.46 mt). Paradeep Phosphates drastically cut import of raw materials after prices in the international market virtually skyrocketed. Stung by the slump in the steel industry, steel plants virtually stopped importing coking coal in the first half of 2009-10.

The improved productivity too contributed to the growth. The ship berth-day output during the year was nearly 14,000 tonnes as compared to 12,365 tonnes in 2008-09.

What was the pattern of traffic growth in the past few years?

In five years, we nearly doubled the volume. In 2004-05, the port handled 30.1 mt.

And capacity...

In the last five years we added about 37 mt to our capacity — from 39 mt to 76 mt.

Any projection for the future?

The port capacity would touch 135 mt by the end of the Eleventh Plan if the projects in various stages of implementation are any indication. These include deepening of channel, construction of deep-draught iron ore and coal berths on BOT basis, mechanisation of CQ-3 berth on BOT basis, construction of oil jetty, construction of a multipurpose berth, and installation of a second single-point mooring by Indian Oil Corporation.

Any projection for traffic?

By 2016-17, the traffic is projected to increase to 100 mt, comprising 30 mt each of coal and oil traffic, another 25mt of iron ore, other cargoes 14 mt, and containers 1 mt.

How hopeful are you about it?

I'm very hopeful. The work on Indian Oil Corporation's Paradip refinery is progressing and it should be commissioned by 2012, when the second SPM with a capacity of 15 mt too will be installed. Barring unforeseen development, I'm very bullish about traffic prospects.

What is the traffic target for 2010-11?

The target for the current year has been set at 62 mt, comprising 12 mt of oil traffic, 17 mt of iron ore, 21.7 mt of coal — both import and coastal shipment, 11 mt of other cargoes, and 0.3 mt of containers.

How did the Orissa Government's ban on iron ore mining in large parts of Keonjhar affect you?

It did affect us. The iron ore rakes are not coming from the areas under the ban. As a result, fewer wagons are now available for back-loading of imported material, particularly coal. The present coal stock in the port is about 1.5 mt. We're suffering for no fault of ours. We're not concerned about the source of the material.

We go strictly by the railway receipt in case of rake movement and the transit receipt given by the State Government in the case of truck movement.

We do not allow any exporter to bring iron ore unless he has plots in the port to store. We do not allow transactions within the port premises. We earn a pittance from handling ore and yet we're suffering.

What are the major challenges facing Paradip port?

The challenges facing the port are many. First, the port suffers from shortage of manpower. Our present strength is 2,800, which will decline to 2,000 by 2013. A lot of people will retire in the next two to three years.

We need to immediately recruit 1,000 people at various levels. But we cannot. There is a Government restriction on recruitment.

Next, we need coal linkages. We've created a huge capacity, 20 mt, for handling coastal shipment at a huge cost. But the capacity utilisation at present is barely 50 per cent.

The linkages are decided by the Coal Ministry and Railway Ministry. We've approached both, more so because Tamil Nadu Electricity Board is ready to take through Paradip 35 mt of Telcher coal annually.

Finally, work on the Haridaspur-Paradip railway line must be expedited. Paradip port is a 10 per cent stakeholder in the project implemented by Rail Vikas Nigam Ltd.

The delay, I understand, is due to land acquisition problems. Once the line is commissioned, it will considerably reduce the distance between the iron-ore rich Banspani and Paradip port, and transportation cost too will drop significantly.

What about pre-berthing detention?

Yes, it is considerable. Right now, nearly 40 ships are waiting. But do not blame our port; blame Haldia. Ships unable to go to Haldia due to various reasons are turning to Paradip, throwing up problems for us. We're helpless.

Your term will soon end on reaching superannuation. How would you sum your experience at Paradip?

Yes, I'll retire in June. My days at Paradip were full of challenges, but satisfying. Paradip has a great future.

THE HINDU