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Thursday, 18 March 10
COAL PILING UP AT EAST COAST PORTS ON RAKE SHORTAGE
 Business Line reported that, more than three million tonnes (mt) of imported coal are awaiting evacuation at the east coast ports of Paradip, Visakhapatnam and Gangavaram due to non-availability of railway rakes.
This is causing concern to several power houses and steel plants as well as a large number of traders, dependent on coal imports through these ports.
The rake shortage has been caused by slump in arrival of iron ore rakes at the ports, following the Orissa Government's crackdown on illegal mining and pilferage of iron ore in the State's Keonjhar and Nayagarh districts. Following the crackdown, the mining, loading and transportation of iron ore from these districts have come to a halt. As a result, fewer iron ore rakes are now arriving at the ports. The rakes which carry iron ore for exports to the ports are generally used for back-loading of imported cargo, mostly coal, and evacuation of the cargo out of the ports.
Accumulated stock
Paradip is holding about 1.5 million tonnes (mt) of imported coal -- about six lakh tonnes (lt) for power houses and another three lakh tonnes or so for steel plants and the balance for traders. The Visakhapatnam port is holding 1.1 mt, including three lakh tonnes of steam coal used by power houses. The accumulation on account of SAIL alone will be more than five lakh tonnes and the balance for companies such as Vedanta, Tata, Adhunik, Jaiswal Nicco and other plants located in western Orissa.
Gangavaram is holding about eight lt, which is likely to increase by 3.8 lt or so with the arrival of two vessels within the next few days. The bulk of the coal imported through Gangavaram is meant for power houses in Andhra Pradesh and Maharashtra and captive power units of cement plants in these two States.
Paradip port can back-load up to 12 rakes a day but with fewer iron ore rakes now arriving at the port, not more than five to six rakes are available. Visakhapatnam port needs 12-13 rakes a day for back-loading but gets only 9-10 rakes. Gangavaram port's requirement is estimated at seven rakes a day but the availability is around 4-4.5, including three which are dedicated rakes for operation on dedicated circuits.
The problem could have been mitigated to some extent if the Railways had moved empty rakes to these ports to evacuate the accumulated cargoes. “While we do place empty rakes at ports from time to time depending on the exigencies, it is not in our interest to move the empties on large scale, particularly during this time of the year when the demand for wagons is high,” say Railway sources.
Source: The Hindu Business Line - By:Santanu Sanyal
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Tuesday, 19 January 10
COAL FOR DOMESTIC USERS
While the government is already almost a year behind schedule in issuing regulations to implement the new mining law, mineral producers have been&nb ...
Tuesday, 19 January 10
RISING DEMAND FROM POWER FIRMS TO PUSH COAL PRICES
The resurgence of the Chinese economy, along with harsh winter conditions across the country, is likely to push coal prices up in the short term. In ...
Tuesday, 19 January 10
ESSAR'S MEGA ACQUISITION PLANS
India’s Essar Group has carved a mega plan that includes a slew of acquisitions and investments in assets across various businesses. CNBC-TV18 ...
Monday, 18 January 10
INDONESIA SHIPPED 15.90 PERCENT OF TOTAL COAL EXPORTS IN 2009 TO INDIA
COALspot.com (Indonesia): Indonesia, the world largest coal exporter, exported 19.07 percent of the total coal export in 2009 to China and 15. ...
Monday, 18 January 10
BHP TO SPEND $267 MILLION ON QUEENSLAND COKING COAL
BHP Billiton Ltd, the world’s largest mining company, will spend $267 million to accelerate development of the Caval Ridge mine and the Hay Po ...
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