Iron ore transporters launch indefinite strike

More than 6,000 truck owners engaged in transportation of iron ore in mineral rich Keonjhar and Joda areas have launched an indefinite strike from on Tuesday protesting the exporters' demand for reduction of transport charges.

"The main reason for our protest is the revised price calculating formula set by East Zone Mining Association. The new formula will reduce the transport charges by almost a third to Rs 1,800 per tonne,” said Raja Chakra, member of Keonjhar Truck Owners' Association.

The EZMA says transport charges must be lower than prevailing rate of Rs 2,500-Rs 2,600 for carrying a tonne of iron ore from Keonjhar-based mines to Paradip port, which takes about three days. The truck owners' association said as the vehicles spend almost two weeks in queue because of infrastructure bottlenecks at the port, they must charge higher prices.

The association plans to meet the transport secretary and chief secretary on this matter soon.

Sources said, the battle between the mine exporters and transporters started in April, when the Union government raised iron ore export taxes to 20 per cent, in order to support the local steel makers. With high export charges translating into lower export volumes, the exporters started thinking of reducing the cost by slashing transport charges.

The iron ore rates follow the benchmark quarterly tender prices of Orissa Mineral Corporation (OMC).

The truckers protest, however, will have a dampening impact on the steel industry.

"The steel makers solely depend on logistics to run their units. The strike will affect supply of iron ore to steel mills and exports etc. The truck owners should have talked to the officials concerned first, and then announced their stir plan,” said Prana Krushna Nayak, president of Orissa Mineral Traders Association.