The Hindu Business Line : SAIL plans to import 12.5 mt coal; yet to firm up distribution among ports

Steel Authority of India Ltd (SAIL), it is learnt, proposes to import an estimated 12.5 million tonnes (mt) coal in the current fiscal (as compared to 9.7 mt in 2007-08) but the distribution of the projected import among the three east coast ports , namely, Haldia, Paradip and Visakhapatnam, is yet to be finalised.

One reason for this may be the uncertainty over the availability of coal (and at competitive price) in the world market.

Also, it is not clear how much of the projected import will the each port be in a position to handle.

The apprehension may not be totally unfounded. For 2007-08, SAIL initially had set the coal import target at 13 mt to be divided among the three ports in the following proportions: Haldia six mt, Vizag five mt and Paradip two mt.

Subsequently, the target was revised downwards in view of the uncertainty over coal availability in the international market, particularly the problems at the loading ports in Australia.

Throughput handled

The revised target was set at 10.26 mt to be divided among the three ports in the proportions of Visakhapatnam 4.32 mt, Haldia 4.66 and Paradip 1.28 mt.

However, the year ended with a total import of 9.7 mt and the distribution among three ports was Visakhapatnam 4.03 mt, Haldia 4.59 mt and Paradip 1.08 mt.

Haldia, though it handled the bulk of SAIL’s coal import in 2007-08, may find it difficult to handle very large volumes.

Haldia

It being a river port, the biggest problem it faces is the poor navigability of the Hooghly river.

As a result, the big ships with large parcel loads cannot call at the port.

Given a choice, SAIL perhaps would like to handle more than five mt at Haldia in the current year. But whether that will happen remains to be seen.

Paradip

Last year, Paradip port was hit by an acute congestion problem entailing huge pre-berthing detention of ships and thus throwing up a variety of problems. Inquiries reveal that SAIL’s import in the current year could at the most be two mt or so.

Visakhapatnam port would like SAIL to handle the bulk of its coking coal import there, more so because the port is set to lose an estimated three mt of traffic, mostly coal, to Gangavaram port due to be commissioned shortly.

Ecor

Rashtriya Ispat Nigam Ltd will transfer its imports of coking coal and limestone from Visakhapatnam port to Gangavaram port from where the imports are to be transported by the conveyor system to the RINL plant.

Precisely for the same reason, ECoR, which too will be hit by the flight of RINL traffic, is also keen that SAIL steps up its coking coal import through Visakhapatnam.

“We’re geared to load up to five rakes a day for SAIL at Vizag as compared three so far”, observe ECoR sources. If that happens, the throughput of imported coking coal at Vizag port on SAIL account will rise to six mt . But what will happen during the course of the year is of course anybody’s guess.

This is because much will depend on how much of the projected import will Bhilai steel plant be in a position to absorb.

SAIL’s coking coal import through Visakhapatnam port is used to meet the requirement of only BSP.

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