Slide in iron ore export hits port, transport sectors

The slide in steel prices in the international market has severely hit the export of iron ore to foreign countries through the Paradeep Port in the past two months, thereby jeopardising the livelihood of thousands of labourers in Paradeep and other mining areas of Orissa.

The export of iron ore through this port has been severely affected in the past two months as foreign countries, particularly China, has stopped importing the mineral from Orissa and other states due to slide in steel prices in the wake of global financial meltdown.

More than 12 to 14 million tonnes of iron ore are exported to foreign countries through the Paradeep Port every year and 40,000-50,000 trucks and dumpers were pressed into service to transport iron ore from different mining areas of the state to the port.

These trucks and dumpers are now stranded on different routes owing to non- transportation of iron ore from the mining areas of Sundergarh and Kenonjhar.

Severe crisis in export of iron ore from the port has affected the livelihood of thousands of casual labourers and employees of different stevedores and transport companies.Many truck and dumper owners including transporting agencies and stevedores have retrenched their employees, drivers and helpers.

It may be noted that 12.96 million tonnes of iron ore was exported to foreign countries in 2007-08 and the target for 2008-09 was pegged a 15 million tonnes. However, it will be tough to meet the target for 2008-09 as export of iron ore has been severely hit in the past two to three months, said sources at the Paradeep Port Trust (PPT).

According to Saroj Mishra, traffic manager, PPT “The target of iron ore exports to foreign countries would not be achieve if this crisis continues. PPT targeted to export 1.5 million tonnes of iron ore every month while only 6 lakh tonnes of the mineral were exported in September and 5 lakh tonnes in October. ”

In July, 1.2 million tonnes of iron ore were exported to foreign countries through the Paradeep port, he added.