India’s Iron Ore Mining Ban Affects Cargo Traffic
Iron ore cargo traffic in India has been largely affected by its mining ban, with data handled by major ports having dropped 5.1 per cent to 94 million tonnes in May 2012 compared to a year ago, a report by The Economic Times said.
About 15 per cent of the total cargo volume traffic managed in May last year at India's major ports were iron ore cargoes, but this dropped 28 per cent in May this year due to the iron ore mining restriction in Goa and Karnataka.
At the same time, fertilizer, representing 2 per cent of total volumes, likewise plummeted by 25 per cent in May 2012 versus May of 2011.
Container volumes in May 2012 jumped moderately to 5 per cent to 5.1 million tonnes.
Cargo and container volumes in India will likely continue to be pressured, The Economic Times reported, given that the current global economic scenario will not improve at least in the very short term.
Adding more fuel to the dismal figures is the government's delay in issuing clearances that could have signaled the much needed expansion works at major ports.