Demand of Iron Ore From India

IRON ORE EXPORTS BUSINESS OF LOW GRADES IN INDIA

Presently iron ore of grades below 50% is in high demand by the buyers from Far East countries. This may be because of good technologies and better option available for using such low grades than the domestic units.In the financial year 2010-2011, the iron ore of grade 48% Fe content was also in high demand and was sold in huge volumes from Goa.

The other factor which helps Goa to export low grade fines is the geographical location of the state and the location of the mines. All mines are very close to the private jetty points and the transport charges are very less and cost effective. This makes it easier to move min 1000MT to 2000MT per day depending on the transport conditions though there is limitation for transport operating in Goa. The transportation of ore is not permitted to be carried out in night time. All iron ore in Goa is moved by road transport to the main Jetties located in North Goa and South Goa. There is no other alternate for transporting iron ore in Goa from mines to the port or jetties.

The Jetties which are handled by private companies provide the barge loading facilities on rental basis. When you hire a Jetty includes the stocking plot for min 4,000MT of the ore along with the internal transportation of loading the barge. Some jetties provide facility for stocking min 20,000Mt to entire shipment cargo. For those jetties which are providing only one or two barge load cargo, the exporter has to take extra plot outside jetty in such location that in emergency, the transportation can be done and it will be counted as internal transport. After taking the jetty on hire, you have to stock the ore on the jetty plot. Once your hired barge is ready for loading, it will be provided with the slot for loading at particular time. The ore from the jetty plot, allotted to you, will be lifted and loaded to the barges by tipper ( 6 wheeler dumper trucks) and the transport is provided by the jetty owners. You don’t have to pay anything extra.

To load one barge of 2000Mt its takes on average 4 hrs to complete the loading. The barge after getting loaded moves towards the Ship which is anchored at the sea at a particular location. The barge is brought alongside the ship and tied, then the cranes from the ship are operated which are having a grab fixed at the end and takes out the ore from the barge and unloads in the ship hatches.

The barges have to be taken on rent from the barge owners. The rental of the barges is on basis on turnaround time. This means that the owner of the barge in concern to the barge owner’s union will fix a time in hours which will be counted as a one trip. For example, in off season time, the turnaround time is for 24hrs, that means one trip is counted of 24hrs and if turnaround time is for 18Hrs, then one trip is counted of 18 hrs. The timings are set by the Barge Union in Goa and are applicable to all barges in Goa.

The Rivers flowing through Goa are Mandovi River in North and Zuari River in South. Both rivers are considers are the life line for the exports of Iron Ore in Goa as all the jetties are built on the bank of these rivers and all the ore for the anchorage loading are transported from these jetties only through barges. The South Goa River Jetties faces Tide problem whereas the North Goa Jetties are able to load round the clock.

Stevedore also plays an important role. Stevedores are required for the loading, documentation and proper dispatch of the Ship. The main part of their services is providing the operators, who operates the cranes of the ship and loads the iron ore in ship from the barges. They also handle all the safety measures required to make the barge alongside the ship, unloading it, maintaining the daily draft, maintaining daily records of the cargo loaded on the ship.

Once you had appointed the stevedore, they will manage all papers works right from filing the documents with the customs, accepting the ship, record maintenance, completing all the formalities of the shipping documents.