In 2012-13, Gangavaram Port in Andhra Pradesh lost over 80 per cent of iron ore cargo volume compared to last year.

The hike in export duty on iron ore, increase in railway freight rates for export cargo of ore and the ban on illegal ore mining affected exports of the raw material. Gangavaram Port exported only 271,000 tonne this year as against 2.1 million tonne last fiscal.

Other ports in Andhra Pradesh Visakhapatnam and Kakinada deep water ports lost 30 per cent in iron ore cargo traffic during 2012-13. In 2011-12, Kakinada Port exported 1 million tonne of ore and this year, the volume declined to just 700,000 tonne.

The centre government raised the export duty on iron ore to 30 per cent to discourage exports, and several state governments were imposing restrictions on ore mining.

Visakhapatnam port gets 2.5-3 million tonne of iron ore cargo from the state-owned MMTC and NMDC, who export the bulk cargo to other countries. Shipments from private iron ore players are negligible.

Iron ore cargo volume at the port declined to 7.1 million tonne ore in the current year till March 15 as against 10 million tonne in the previous year, a fall of 30 per cent.

Of the 7.1 million tonne, only around 2.5 million was exported to other countries and the remaining was handled for coastal movement, Vizag port sources said.