Freight rate for iron ore exports up
HERALD CORRESPONDENT
NEW DELHI, MARCH 31
The Indian Railways have slapped further hike of Rs 100 ($2.2) a tonne in the freight rate for carrying iron ore to sea ports for exports. There is, however, no change in the freight rates for transporting the iron ore to the domestic iron and steel mills.
The hike effective for the month of April comes on the heels of another increase of Rs 300 a tonne effected only on March 15.
An announcement on the Railway Ministry website said the hike in the existing distance based charge now stands at Rs 400 a tonne, including the increase effected mid-March.
The increase is bound to push up the iron ore prices in Asia that
are already going up. A circular dated March 25 on the website says the hike of Rs 100 a tonne will be in addition to the previous hike and will be effective till April 30.
Though the rail freight hike would not hit Goan mine owners as most transport the ore using the trawlers, it will certainly affect mines in Karnataka and Orissa and particularly hit badly the government-owned mines in Chhattisgarh that have to carry the ore a long distance to reach the Vizag port.
The circular prescribes different distance-based freight charges for iron ore, starting with 125 per cent of base freight rate plus Rs 600 for distance up to 200 km and ending with 10 per cent of base rate plus Rs 600 for distance 601-700 km and Rs 600 for distances more than 700 km.
