Coal news and updates

Coal stockpile clogs Vizag port on rake shortage

Railways can supply only nine rakes against a daily requirement of 16

The Visakhapatnam port is facing a serious difficulty in evacuating imported coal for want of rail wagons. A huge stockpile is clogging port channels, according to K Ramabrahmam, President of the Vizagapatam Chamber of Commerce and Industry.

He said in a statement here on Wednesday that the railways were able to supply only nine rakes as against the requirement of 16 rakes each day, resulting in ships waiting at the anchorage for want of space.
Rise in supply

Coal supply has increased because the B.O.T operators made large investments in increasing the discharge rate to 75,000 mt each day and the port was bringing in bigger vessels. Importers prefer capesize and panamax vessels for coal import to achieve economies of scale. “All these plans are being defeated due to lack of sufficient wagons to evacuate cargo, forcing vessels to wait and resulting in huge demurrages. The railways should immediately take steps to ensure to supply the required number of rakes to facilitate quicker cargo evacuation. Otherwise, the vessels may be diverted to other ports at extra cost. The industry will suffer and the port will suffer,” Ramabrahmam said.
Comprehensive policy

He said the chamber had sent a letter to Union Shipping Minister Nitin Gadkari to take up the matter with the Railway Ministry and enforce remedial steps. The rail network linking the ports with the hinterland should be strengthened and the matter of idling coal should accorded importance along with the expansion of port capacities and construction of new ports, he said. Or else, port projects would not yield the desired results.

Source: The Hindu BusinessLine