Paradip port is set to lose substantial revenue as a result of handling at least 1.5 lakh tonne less iron ore from April 10-20 following the Odisha Government’s decision to ban movement of ore-laden trucks on the key national highway stretch leading to the port in order to ensure smooth traffic flow during elections.
The National Highways Authority of India too is set to lose substantial toll revenue during the ten-day closure period. The 70-80 km stretch is usually blocked by trucks heading towards the port.
The district administration of Kendrapada, which is located on the highway toward Paradip, has been asked to stop vehicles from ferrying ore on this stretch, according to reports. “Paradip Port handles about 1,500 trucks a day, out of which about 1,000-1,200 carry iron ore,” Paradip Port Chairman Sudhanshu Shekhar Mishra told Business Line . “Each truck carries 12-20 tonne of ore. Even if we take an average of 15 tonne of ore in a truck, then we are looking at a potential loss of 15,000 tonne a day,” said another official.
Over a 10-day period, this means at least 1.5 lakh tonne of cargo lost. The cargo cannot be moved by rail as it is more costly. Moreover, the port does not have enough land to pile up the cargo in advance for the 10-day period.