Dumpers' stir cripples raw material supplies from Paradeep port

Cargo loading and unloading work at the port has come to a halt

Dumpers' stir cripples raw material supplies from Paradeep port
BS Reporter Bhubaneswar
Last Updated : Sep 18 2015 | 7:05 PM IST
The ongoing stir by the Paradeep Port Dumper Owners' Association has crippled supplies of key raw materials like coal, iron ore and limestone to industries located in the port's hinterland.

Cargo loading and unloading work at the port has come to a halt since last Wednesday as the Dumper Owners' Association and Paradeep Port Stevedores' Association have refrained from work.

Though authorities at the Paradeep Port Trust (PPT) are making efforts to restore normalcy in operations, the imbroglio continues.

The user industries, being starved of raw material supplies, meanwhile, are anxiously awaiting a breakthrough in the situation.

"We are quite hopeful that the Odisha government at the highest level is seized with the impasse in Paradeep and shall certainly intervene to break the monopoly in stevedoring to ensure fair play, making it more business friendly. Competition and a level playing field will always help the state economy and benefit the people of Odisha in terms of generating sustainable livelihood opportunities and provide better services, thereby attracting more investments," said Manish Kharbanda, executive director and group head of mines & minerals, Jindal Steel & Power (JSPL).

"The stoppage of work at Paradeep on account of the strike, non-cooperation with the administration to come for a peaceful dialogue, the rally in Paradeep and the sponsored protests are signs of desperation of the monopolistic practitioners in stevedoring at the port. The initiatives by the port authorities and the vision of the government to curb monopoly practices have shaken such individuals who are aggressively against competition and fair play. Such blockades and protests have been adversely impacting the economy of Odisha and the investors' confidence in the ease of doing business in Odisha", he added.

A JSPL vessel named MV HARM berthed at the port since last Wednesday loaded with 86,000 tonne of hard coking coal has been stuck due to the prevailing agitation. This vessel has been allotted to Seaways Shipping & Logistics Pvt Ltd for undertaking stevedoring and intra-port transportation of work. The Dumper Owners' Association and Paradeep Port Stevedores' Association have been opposing stevedoring operations by Seaways Shipping after the shipping line refused to bow to their demand to snap contract with JSPL.

"To sustain its growth rate, the Paradip Port is creating a level playing field for all port customers to do their business with ease so that the business community will benefit out of the competitive prices for their cargo handling at Paradip Port. However, a section of Port Stevedores under the 'Paradip Port Stevedores Association' and the 'Dumper Owners' Association' have created a monopolized environment for a long period in the Paradip port and they are bent upon frustrating free market economy to prevail at Paradip port now", said a PPT release.

"The port management will give necessary support and protection to any service provider who wants to use the port facilities for cargo handling as per the Port rules. Any person or agency trying to create disturbance in the port premises will be dealt with severely which includes revocation of license/permission", it added

Unfazed by the port's stern move, ten associations including those of dumpers, drivers and distributors today organized a huge rally at Paradeep. They accused PPT chairman of monopolistic practices and submitted a memorandum to the additional district magistrate.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Sep 18 2015 | 5:50 PM IST

Next Story