India`s port in Goa sees iron ore exports up 10.8%.

Iron ore exports from Mormugao Port in Goa may rise 10.8% to 46 million tonnes in the current financial year, from 41.5 million tonnes a year earlier on increased shipments, the head of Mormugao Port Trust (MPT) said on Tuesday.

"Current trends appear to be supportive and the number of iron ore exporters using port facilities is continuously increasing, while the existing exporters are also augmenting their quantities," said Praveen Agarwal, chairman of MPT.

Other than Mormugao Port, Goa's Panaji Port Dock located in its capital city Panjim also exports iron ore. Together, they accounted for about 47% of India's total iron ore exports so far this financial year, making Goa the country's largest iron ore exporting state.

India's iron ore exports in April to July was at 32.86 million tonnes, up 4.68% from a year ago, data from the Federation of Indian Mineral Industries shows.

Most of Goa's shipments comprise the powdery iron ore fines that are mainly purchased by China that houses the world's largest steel industry and which blends them with high-grade ores acquired from Australia and Brazil.

In 2009/10 ended in March, India shipped 117.37 million tonnes of iron ore mainly to China, up 10.7% from the previous year as steel mills in the country stepped up production on expectations of higher global steel demand.

Expansions

Agarwal said the port plans to increase its cargo handling capacity by 3 million tonnes per annum, all meant for iron ore shipments.

"In FY 2010-11, Mooring Dolphins 4, 5 and 6 will be completed, providing two more ship positions compared to last year," said Agarwal, referring to new iron ore terminals.

He said the outlook for iron ore exports remain bright despite a ban by neighbouring Karnataka on exports of the raw material last month.

"There may not be any significant drop (in Goa's iron ore exports), even if the (Karnataka) ban continues," he added.

Out of 56 million tonnes of iron ore exported from Goa last year, only 6 million tonnes came from Karnataka, Agarwal said.

But, shipments of iron ore from elsewhere in India, the world's third-largest exporter, could be hit due to the ban, trade sources said.

Coal imports grow

The port also plans to triple its coal handling capacity to 18 million tonnes per annum by 2014/15 from the current 6 million tonnes by constructing two more coal terminals to cater to rising demand, Agarwal said.

The port's coal imports saw a marginal fall to 2.09 million tonnes from April 1 to August 30 this year, from 2.4 million tonnes in the same period last year, due to non-availability of railway wagons that transport imported coal to the users.

MPT handled 5.64 million tonnes of coal imports in the 2009/10 financial year. "We can do 5% to 10% more this year, provided the railway rakes are available," said Agarwal.

Source : moneycontrol.com