Presentation on current modes of ironore transportation in India,Challenges and opportunities. Presentation made in a seminar conducted by Chartered Institute of Logistics and Transportation, London held at New Delhi in December,2008.

1. LOGISTICS OF IRON ORE TRANSPORTATION IN INDIA ISSUES & CHALLENGES KK KUMAR VICE PRESIDENT – MARKETING & LOGISTICS MSPL LIMITED, HOSPET, KARNATAKA

3. GROWTH IN GLOBAL SEA BORNE IRON ORE TRADE AND LONG TERM BENCHMARK PRICE

5. DOMINANT ROLE OF CHINA IN GLOBAL STEEL PRODUCTION

6. TREND IN PRODUCTION & EXPORTS OF INDIAN IRON ORE 104.00 93.79 89.27 78.14 62.57 48.02 41.64 37.49 32.91 31.27 35.61 31.70 Exports 206.90 172.00 155.00 142.70 122.80 99.07 86.22 73.21 74.94 70.68 75.72 66.60 Production 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 Year

7. INDIAN IRON ORE PRODUCTION DRIVEN BY EXPORT GROWTH

8. INDIA’S RESERVES & PRODUCTION ADEQUATE FOR DOMESTIC AND EXPORT MARKETS Estimate

9. COUNTRY WISE EXPORTS OF IRON ORE FY 2000-01 FY 2007-08 37.3 Mt 104 Mt

11. LOCATION OF IRON ORE MINES

14. RAIL TRANSPORTATION

21. Distance based freight concession on NTR /subject to minimum NTR at 350 Kms 38 0.00 0.00 1180.13 200x 08.11.08 11 Busy season surcharge 7 % levied 92 6.50 72.07 1180.13 200 X 01.10.08 10 Busy season surcharge 7 % discontinued (removed) 40 -6.11 -72.07 1108.06 200X 01.07.08 9 Iron Ores charged at class -- 200 X and port congestion charges abolished 51 26.72 248.81 1180.13 200 X 22.05.08 8 Iron Ores charged at class --180, port congestion charges increased to 100% from 60% 85 27.81 202.67 931.32 180 01.04.08 7 Iron Ores charged at class --170 37 5.52 38.15 728.65 170 07.01.08 6 In addition to busy season surcharge of 7 %, port congestion charge of 60% introduced ( ie total 67% introduced) 61 15.25 91.39 690.50 160 01.12.07 5 Busy season surcharge 7 % and port congestion charge 35% total 42% introduced 61 10.08 54.84 599.11 160 01.10.07 4 Terminal charges of Rs. 10 per ton for each terminal (Rs. 20) is changed as Rs. 40 per terminal (i.e., Rs. 80) 31 12.39 60.00 544.27 160 01.08.07 3 2% Development surcharge on NTR & @ Rs. 10 per ton as terminal charges for each terminal i.e., Rs. 20 per ton 91 6.39 29.10 484.27 160 01.07.07 2 Busy season surcharge 6 % and port congestion charge 21% total 27% introduced -1.32 -6.09 455.17 160 01.04.07 1 Remarks Days since last change Percentage Diff. Ft. Ft. per Ton Class Year Sl. No HOSPET TO GOA (SVM) RAILWAY FREIGHT - DISTANCE 343 KM.

25. ROAD LOGISTICS

29. PORTS

33. WATER WAYS

42. BHP BILLITON RAIL SYSTEM