PANJIM: The outstanding loans of barge owners have decreased to Rs 234 crore following a number of distress sales to entrepreneurs in Gujarat who were buying it for the transport of coal. The sale of the barges was done at a loss and it has also resulted in 26 barge operators exiting the business. Others have not thrown in the towel or rather cannot to do so and have sent their barges to ports outside Goa and even the country.
Speaking to the Herald a source who is a long time operator in the business said the time had come for the business to witness the entry of new players. He said “It is inevitable that there will be the exit of some of the old players given that there will be a dramatic reduction now from the days when we did well over 200 trips per barge.”
He added that around 80 small barges in the 800 and 1000 tonnes category were sent to port Redi in Maharashtra and Aronda near Tiracol but now with exports having declined this year from port Redi the barge owners were not making money. The logic behind keeping the barges there was that it was better than nothing. Another barge owner who had sent his barge to Kuwait had not been paid for a year.
Presently in Goa there are approximately 80-90 private operators none of whom are exporters. Asked what his thoughts were on the future he said “Australia and Brazil have reduced the rates on high grade ore and we are exporting low grade ore.. Goa ore is famous for sinter quality which is used in furnaces for the blending of high and low grade ores. The question is how much ore would be needed for the sinter.”
With the number of trips dropping to a mere 15 other members of the barge owners community moaned that the good days were not around the corner. The barge owner said they used to earn Rs 1,23,000 per trip of which Rs 30-40,000 would go for the cost of diesel which would then leave them Rs 85,000 which would be multiplied by 123 trips. After paying the salaries and other incidental expenses Rs 1 crore was required for break even. Now with the numbers having changed dramatically perhaps one could say that the glory days may never ever come again.
