Panel report raises concern on fall in cargo traffic

The Parliamentary Standing Committee on Transport, Tourism and Culture raised concern over the negative growth of traffic in some major ports owing to decline in iron ore exports, slowdown in the economy etc.

In a report submitted to the Parliament, the panel remarked that the decline in cargo volume was not a healthy trend especially at a stage where ports are heading for capacity additions.

In order to compensate for the decline in iron ore cargo, the panel suggested that the ports should explore the possibility of alternate cargo including cruise tourism at Mormugao port.

The ban on iron ore mining in southern states of Karnataka and Goa affected adversely ore exports from the country.

The report also cautioned major ports to try to improve their efficiency as “the private ports functioning at the vicinity may otherwise take advantages.

The report also pointed to slow pace of capacity addition by 12 major ports by terming the government’s plan to raise capacity of major ports to 1,229.24 million tonne (mn t) by 2017 a “distant dream”.

The present day capacity of the major ports is only 696.53 mn t and the annual capacity addition ratio is mere 6.65 per cent.