The Hindu Business Line : Tata Steel fast-tracking inbound logistics

AT THE current production level of four million tonnes of hot metal annually, Tata Steel's Jamshedpur plant handles about 13million tonnes of raw materials — comprising 4.1 million tonnes of coal (1.8 million tonnes of it imported through Haldia and Paradip), 6.7 mt of iron ore and 1.5 mt of limestone (60 per cent imported) and other items including 0.4 mt of sponge iron. More than 95 per cent of the raw materials handled is transported by rail, and the Railways provides 11-12 rakes a day.

The Railways will be required to provide many more rakes as the capacity of the Jamshedpur plant is slated to rise to five million tonnes in 2005-06 and further to 7.5 million tonnes in 2007-08.

According to one estimate, following capacity expansion, the raw material requirement will jump to 25 million tonnes annually by 2007-08 requiring movement of at least 21 rakes every day — 12 rakes for iron ore, six for coking coal (three rakes each for movement of imported and locally-sourced coal) and two rakes for limestone (one each for imported and domestic supplies) and one rake for other materials.

Understandably, Tata Steel has urged the Railways to take note of the projected requirement and plan for making available the rakes when the demand for additional traffic actually materialises. But, then, making available additional rakes is only one part of the story. Equally, if not more, important is line capacity.

The company has, therefore, mooted a proposal for doubling of 35-km Banspani-Padapahar line. Since the volume of imported coking coal and limestone through Haldia and Paradip (in fact, more through former because of the transport cost advantage of Rs 200 per tonne vis-à-vis the latter) will increase to four million tonnes — three million tonnes of coal and one million tonnes of limestone (against 1.8 mt and 0.6 mt respectively now), — Tata Steel has also urged the Railways to expedite the work on doubling the lines between Panskura and Haldia and Cuttack and Paradip.

It may be noted that Tata Steel proposes to meet future additional requirement of coking coal almost entirely through imports and therefore has no immediate plans to increase production at its mines in West Bokaro and Jharia. The current production at the level of three million tonnes (2.1 mt at West Bokaro and 0.9 mt at Jharia) annually is likely to be maintained.

On its part, Tata Steel is also taking steps to improve its infrastructure keeping in view the projected increased volume of raw materials it will have handle. It is spending Rs 60-70 crore to upgrade its various facilities. Thus, the company's own railway system will e electrified, signalling system improved and tracks upgraded. More track hoppers are being acquired.

The introduction of the engine-on-load system within the plant is to halve the unloading time of an iron ore rake from eight-nine hours.

The coal unloading system is being revamped, and with it the tippling capacity, so that the detention of rakes is also halved to 12 hours or so. The facilities are being created to handle a full rake, which is not not possible now.

Right now, the company sources iron ore from the mines at Noamundi, Joda and Khondbond , with Noamundi accounting for the largest share of about 5 mt annually followed by Joda about 3 mt.

Though Khondbond produces about one mt, the bulk of its production, about 0.6 mt, meets the requirement of Tata Sponge and the balance is made available to the Jamshedpur plant. Under the growth plan, Noamundi's capacity is being expanded to 7.7 mt annually and with it the loading facility.

The engine-on-load system, also being introduced at Noamundi, is to reduce the loading time of a rake to three hours from five hours now. The capacity of the one-km track (owned and operated by Tata Steel) between the Noamundi station and the loading station at the mine is being enhanced and electrified. Joda's capacity has already been increased by about one million tonnes to four million tonnes but the line capacity being limited, not more than three rakes a day can now be handled there though it produces enough for at least four rakes a day.

The capacity of the mines at Khondbond is being increased by two million tonnes to reach the total of three million tonnes and the entire additional volume will be transported to Jamshedpur plant, first by a 10-km conveyor system from the mines to Jaruli and from there by rail to the plant.

As for the 6 mt per annum plant at Kalinganagar, Orissa, the raw material linkages are still to be firmed up. But the supporting work has started.

Tata Steel wants the Railways not only to enlarge the average size of wagons but also to introduce high capacity wagons so that the average rake capacity increases to 7,000-10,000 tonnes from the 3,500 tonnes now. The company has also mooted a proposal for laying high capacity 30-axle load line.

The Railways, well disposed towards the proposal, is believed to be working on the construction of a high-capacity line on the Banspani-Daitari section.

The fate of the 5-km long section between Duburi — on the Banspani-Daitari section — and the plant site is still to be decided. Tata Steel may construct the line on it own; alternatively, a special purpose vehicle, being contemplated by the Orissa Government, may be entrusted with the job.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Euro versus Bharat norms

Two-terminal-per-operator cap — Opening the competition box at major ports

Floating on profits...
Shipping lines plan major fleet expansion

`We are strong in efficiency and performance' — Mr P. T. Vanan, Chairman, New Mangalore Port Trust

Tata Steel fast-tracking inbound logistics