December 03, 2008

New Mangalore Port sees growth in rail cargo

BL reported that more than 100% growth in railway bound freight traffic of New Mangalore Port Trust and Hassan Mangalore Rail Development Company Limited has once again shown the importance of a railway line between the port and the hinterland.

During 2007-08, New Mangalore Port showed a growth of around 105% YoY in handling of rail cargo traffic and Hassan Mangalore Rail witnessed a growth of 187.5% YoY in its freight movement.

Ms Sarala Balagopal director & CEO of Hassan Mangalore Rail said that it handled around 4.6 million tonnes of freight traffic during 2007-08 as against 1.6 million tonnes the previous fiscal. Of the 4.6 million tonnes, nearly 90% to 95% of the traffic was contributed by New Mangalore Port’s railway bound cargo. Rail cargo, which stood at 1.52 million tonnes during 2005-06, increased to 3.01 million tonnes during 2006-07.

The link between New Mangalore Port and the hinterland was commissioned for freight traffic on May 5th 2006. Helped by this link and assisted by several new facilities at the port side, New Mangalore handled around 6.18 million tonnes of railway bound cargo in 2007-08, witnessing a growth of 105% YoY. The export cargo, such as iron ore, contributed a major share to the growth in railway bound cargo during 2007-08, followed by import cargoes such as fertilizer and limestone. In fact, the port witnessed growth of 163% in handling limestone cargo during the year.

Before the commissioning of the line for freight movement, exporters of iron ore cargo were wholly dependent on road infrastructure. The railway line brought down the burden on roads and 45% of the iron ore cargo was transported by trains during 2007-08.