The Hindu Business Line : Lack of rail link, box traffic

Granite blocks being loaded at New Mangalore Port... The lack of rail connectivity with the hinterland is the main constraint for attracting container cargo, making the port turn to liquid and bulk cargoes.

THE New Mangalore Port Trust seems to be concentrating on liquid and bulk cargoes to become a 50-million-tonne-capacity port by 2010. Though a container traffic of nearly 70,000 TEUs (twenty-foot equivalent units) is generated in Karnataka, the port has not really benefited. Rather, liquid and bulk cargoes have contributed nearly 95 per cent to the total traffic throughput.

Of the total installed capacity of 29.5 million tonnes, the port throughput in 2003-04 was 26.67 million tonnes. Of this, the contribution of liquid bulk was 18.33 million tonnes and dry bulk 7.69 million tonnes. The container cargo generated was only 95,974 tonnes (6,927 TEUs). Bangalore and Hubli regions generate around 25,000 TEUs each but most of this goes to Chennai, Goa and Kochi ports for onward despatch.

For the NMPT, lack of rail connectivity with the hinterland has become the main constraint for attracting container cargo. Apart from the Konkan railway route along the coast, the NMPT does not have rail connectivity with the rest of the State.

The proximity of Chennai to Bangalore and the good rail link between the two cities mean most of the container cargo from Bangalore go to the Chennai port. The cargo generated in and around Hubli gets diverted to Goa port because of the proximity of the port to these regions.

Another constraint for the NMPT in attracting container cargo is the freight rate. The Kochi port has successfully attracted some Bangalore cargo as the freight charges are less there compared to Mangalore port.

However, the May 28 meeting of the NMPT board decided to reduce freight charges for container traffic by 25 per cent to attract more cargo. In the case of vessel handling, the Mangalore port handles only one feeder line a week for container cargo while the Kochi port operates two/three vessels a week. In such a situation the NMPT has to concentrate more on liquid and bulk cargo to achieve its goal of becoming a 50-million-tonne port by 2010. According to the Chairman (in-charge) of the NMPT, Mr G. J. Rao, there has been a rise in the container traffic in the port in spite of constraints.

In April, there was an increase of 56 per cent in the container traffic compared to the same period last year, and in May the jump was 45 per cent. But MRPL's liquid cargo contributed more than 60 per cent to the total traffic throughput of the port last fiscal. In 2003-04, the port handled 10.17 million tonnes of PoL crude and 6.24 million tonnes of PoL products for MRPL.

With public and private sector investments expected in various projects in and around Mangalore, the 50-million-tonne target can be achieved even without container traffic. The proposed LNG terminal of Oil and Natural Gas Corporation is likely to contribute around seven million tonnes to the existing traffic. MRPL's plans to increase its refining capacity may add around 10 million tonnes to the traffic. Nagarjuna Power Corporation's proposed thermal power project is likely to contribute around three million tonnes. Mangalore Chemicals and Fertilisers (MCF) Ltd, which plans to set up a metallurgical coke manufacturing unit in Mangalore, may bring 0.5 million tonnes of cargo to the port. If the current trend in iron ore export continues, that may add another three million tonnes.

People in the industry feel that a special economic zone (SEZ) could boost Mangalore port's traffic. While most major ports have SEZs attached to them, Mangalore does not have one. Thus, the, NMPT has decided to partner with ONGC, the Government of Karnataka, and the Kanara Chamber of Commerce and Industries to develop an SEZ.

The Government has given in-principle approval for the development of an SEZ with public-private partnership. The NMPT is ready to earmark around 300 acres for the SEZ. This is in addition to the 800 acres in the Baikampady area with JESCO (Jaiprakash Engineering and Steel Company) for developing an SEZ.