Paradip, Aug. 22: Slump in cargo handling operation has left Paradip Port Trust authorities worried as the Union ministry of shipping has set a higher business target for the current fiscal.

Factors such as restrictions on iron-ore mining operation, besides competition from private players such as Dhamra Port have contributed to the fall in the trust’s revenue.

The export of iron ores constituted sizeable bulk of the annual cargo handling of the port. The demand on iron ores and files is on decline. China was the major buyer of iron ores and files through the Paradip sea route.

But the steel sector in China has become dormant nowadays. Besides the decrease in demand for iron ores, the Odisha government’s ban on mining activity and transportation had affected ore export severely, Kishore Kumar Sahu, deputy traffic manager, Paradip Port Trust said.

The port is now banking on import and export of cargoes such as coal, crude oil, petroleum products, edible oils to generate its revenue.

Chairman, Paradip Port Trust, S. Ananth Kumar Bose said: “Despite the slump in iron-ore export and import of coking coal, all other cargoes have exhibited upward trend. We have resolved to diversify cargo profile of the port to meet with the emerging situation. The cargo handling charge has dropped by 32 per cent. Paradip port is also providing efficient and cost effective services to the export and import trade.”

“The forest clearance for the build, operate and transfer berths has been accorded to the port by the union government on July 2, this year. The construction of iron ore and coal berth will commence soon and will add 20 million tonnes to the port capacity after completion,” he added. The environment clearance for the southern dock complex has also been accorded. This would add 15 million tonnes to port capacity further.