BL reported that the declining trend in iron ore throughput has forced South Eastern Railway, the major iron ore loading zonal railway, to broad base the cargo portfolio by handling more of other items.

Between April 2010 and February 2011 period of the current fiscal, SER's iron ore throughput was 62.74 million tonnes as compared to 70.26 million tonnes in the same period of last fiscal, thus recording a drop of 7.5 million tonnes. However, during the same period, the total traffic handled was 112.03 million tonnes (115.34 million tonnes), thus registering a shortfall of 3.3 million tonnes. In other words, the shortfall in iron ore traffic was made up by more than 4 million tonnes increase in the throughputs of other items.

By and large, coal, both domestic and imported, cement and, to some extent, finished steel, accounted for the bulk of the increase in traffic other than iron ore. It might be noted that the share of iron ore in total traffic, which was 61% during the April 2010 to February 2010 period, dropped to 56% or so in the same period of the current fiscal.

Since iron ore has always been single major item of traffic, SER will find it difficult not only to achieve the iron ore throughput target of 73.21 million tonnes but also the total traffic target of 127.91 million tonnes set for the current fiscal. In 2009-10, the total traffic handled was 125.91 million tonnes of which the share of iron ore was 75.73 million tonnes.

The restriction on loading and transportation of iron ore by the Orissa Government on the ground of better mineral management is believed to be the main reason for the present situation on the iron ore front.

Several iron ore mining companies were blacklisted last year and not all of them have been permitted as yet to resume operation. Several mines remain closed and the road movement of the ore from pithead to railhead is subject to so many checks and verifications by the district administration.

(Sourced from www.thehindubusinessline.com)