INLAND WATERWAYS TRANSPORTATION IN INDIA WITH REFERENCE TO COAL

1. INLAND WATERWAYS TRANSPORTATION IN INDIA WITH REFERENCE TO COAL 4TH COAL MARKET IN INDIA 2014, 22ND AUGUST 2014, NEW DELHI, IBK MEDIA Dr.R.Giri Prasad, Associate Professor & HOD, Dept. of Petroleum Technology, Aditya Engineering College, Kakinda, Andhra Pradesh, India

2. INTRODUCTION • The share of India’s inland water transport (IWT) cargo traffic to the logistics market is significantly lower at 0.5 as compared to China at 8.7 percent, the US at 8.3 percent and Europe at 7 percent. However, the Indian IWT landscape holds immense potential due to its characteristic advantages over other modes of transportation, especially for coal movement. • India has about 14,500 km of navigable inland waterways, of which 5,200 km (36 percent) of major rivers and 485 km (3 percent) of canals are conducive to the movement of mechanisedvessels. Among these navigable waterways, five National Waterways (NWs) — NWs 1, 2, 3, 4 and 5, spanning approximately 4,400 km — have been outlined as potential inland waterways at the Ganges and Brahmaputra rivers, the West Coast Canal, the Godavari and Krishna rivers, and the East Coast Canal, respectively. NW 6, which stretches across 121 km, has been proposed on the Barak River.

3. WATERWAYS OF INDIA

4. HISTORY OF INLAND WATER TRANSPORTATION • Inland Water Transportation was important mode in the past • In 19th century steamers were plying from Kolkata up to Garhmukteshwar and Dibrugarh in the Ganga & Brahmaputra respectively • Development of Railways & Roads gave IWT a setback • In 1970s, IWT for NER revived with IWT&T Protocol between India & Bangladesh • In 1980s and 1990s, CIWTC used to ply vessels from Kolkata to Guwahati and Karimganj routes • Transported over 4 lakhtonne cargo in 1989-90, now engaged only in lighter age movement

7. P P P P P P P P P NAGALAND TEJPUR SILGHAT 31C Brahmaputra R. I N D I A A S S A M NW-2 36 JOGIGHOPA 37 DISPUR INDO – BANGLADESH PROTOCOL ROUTES PANDU 31 DHUBRI 37 KOHIMA 40 SHISHUMARA DAIKHAWA SHILLONG 31 M E G H A L A Y A 51 BIHAR CHILMARI 53 Barak MANIPUR Ganga R. Surma R. ZAKIGANJ LAKHIPUR BAHADURABAD 34 IMPHAL 53 SYLHET BHANGA KARIMGANJ JHARKHAND Jamuna R. Kusiyara R. MARKULI FENCHUGANJ B A N G L A D E S H SHERPUR AJMIRIGANJ GODAGARI DHULIAN SIRAJGANJ RAJSHAHI 54 44 BHAIRABBAZAR ASHUGANJ Ganga R. Baral R. N TRIPURA BAGHABARI Meghna R.` ARICHA AIZWAL AGARTALA AKHAURA DHAKA MIZORAM Bhagirathi R. NW-1 NARAYANGANJ Padma R. Legend Legend Declared National waterway Proposed National waterway Protocol route Road Rail NH 2 CHANDPUR KHULNA 35 BARISAL Meghna R. WEST BENGAL CHALNA KAUKHALI 51 KOLKATA Protocol route distances MONGLA 6 Kolkata - Guwahati/Pandu ...... 1535 km Kolkata - Karimganj...................1318 km Dhulian-Rajshahi...........................78 km 41 HALDIA ANGTIHARA Hooghly R. 7 Bay of Bengal Raimangal R. Myanmar (Burma) NAMKHANA ORISSA Sunderbans

8. N Legend Waterway alignment Road Rail Important places KOTTAPURAM National Waterway-3 17 West Coast Canal (Kottapuram – Kollam) Champakkara & Udyogamandal canals ALUVA River distance Kottapuram - Kollam 168 km Udyogamandal canal 23 km Champakkara canal 14 km Total length 205 km UDYOGAMANDAL CANAL 49 KAKKANAD(CSEZ) KOCHI CHAMPAKKARA CANAL MARADU VAIKOM 47 K E R A L A THANNERMUKKOM CHERTHALA LOCK CUM BARRAGE ALAPPUZHA 220 THRIKKUNNAPUZHA THRIKKUNNAPUZHA LOCK GATE Arabian Sea KAYAMKULAM CHAVARA 208 KOLLAM

9. Development cost- Rs 1515 cr (2010prices) • Notified on 25.11.2008

10. Development cost- Rs 4210 cr (2010 prices) • Notified on 25.11.2008

11. Proposed National Waterway – 6 : River Barak • Length –121 km • Development cost -Rs 120 cr (at 2011 prices) • Status: Declaration in process Badarpur Bhanga Silchar

12. ROAD AND RAIL NETWORK Roads have always been the primary mode of transport in India. India has one of the largest road networks of approximately 42.36 lakhkms. As per the Road Transport & Highways Department around 60% of the total freight and around 87% of passenger traffic is carried by Indian roads. Traffic is forecasted to grow at around 8-10% p.a. A large portion of railway sidings is single line and is utilized by passenger as well as freight trains. The sharing of railway sidings amongst the passenger and freight trains causes disruption in the smooth functioning of the trains. Long waiting times and uncertainty of arrival are the two primary reasons for the delay in time of freight goods. The overall freight traffic has been continuously rising. Over the last 10 years, traffic has grown at a CAGR of 6.27%. IR‟s available infrastructure does not have enough capacity to cater to this traffic leading to severe network capacity constraints.

13. WORLD COAL RESERVES

14. Coal: demand - supply gap • Power generation capacity: a critical requirement • Coal: the main source of energy • Current coal demand: 696 MMT • May become 1000 MMT by 2017 • Estimated coal to be imported : 137 MMT

15. Power Sector Overview Generation Installed Capacity (as on 31.12.2011) : 187 GW

16. INLAND WATER TRANSPORTATION ADVANTAGES

17. Note: the information is for indicative comparison only,Source: Inland Waterways Authority of India.

18. IWT USAGE OTHER COUNTRIES Coal is the largest commodity by volume moving on waterways • USA’s thermal power plants use waterways for > 20 % of coal • Germany: 45% • China: 17% • India: practically nil

19. Coal transportation bottlenecks • Railway Congestion • Shortage of rakes • Shortage of bottom opening wagons • Railway network has its own limitations in terms of zonal capacities, inter-zone re-deployment of rakes, etc. • Port congestion • Low draft at some ports like Haldia Hence, overdependence on railways needs to be reduced: road is out of question : IWT a realistic supplementary option, especially for imported coal

20. Thermal power plants along NW-1 THANK YOU Muzaffarpur 8 14 Barauni Buxar 6 Allahabad 12 15 Kahalgaon 13 19 9 8 7 Bhagalpur Pirpainti Barh 11 10 18 Bara 6 Lakhisarai Karchana 16 Anapara Farakka 17 5 Obra • Installed power: around 15,000 MW • Total coal requirement: around 75 MMTPA • Imported coal: around 15 MMTPA 20 4 Sagardighi NTPC Plants Bandel State Govt Plants 3 Budge Budge 2 Proposed Power Plants Kolaghat 1 Haldia 8 Expansion

21. NTPC’s TPS at Farakka & Kahalgaon face acute shortage of coal • They require 3-4 MMT of imported coal • But due to several reasons, transportation of this coal has been a difficult and costly proposition for NTPC • Draft constraint at Haldia: Available draft-7.0 m • High waiting time at Paradip port • Limited rake availability for transportation from port • High Logistics cost leads to high delivered cost of coal • Handling/ transition losses • Delayed delivery leading to additional losses

22. After sustained persuasion by IWAI, NTPC gave commitment for transportation of 3 MMTPA imported coal by IWT for these plants for 7 years • IWAI & NTPC developed a project with entire funding by private sector • Project comprises of: Transhipment equipment at sea; about 40 barges; a terminal at Farakka; and coal conveyors from terminal to coal stack yard at Farakka • Approximate cost: Rs 650 crore • By open tendering Jindal ITF identified as L1 bidder • Tripartite agreement signed among IWAI, NTPC & Jindal ITF on 11.8.11 • Supply of coal to start in December, 2012 • This could be a path breaking project for IWT in India

23. Support provided by IWAI/NTPC • Guaranteed cargo by NTPC- 3 MMTPA for 7 years • Assurance from IWAI to provide LAD OF 2.5 Mts. between Haldia- Farakka for at least 330 days in a year • Suitable for 1500 T – 2000 T barges • Vertical clearance of 10 Mts. • Assured night navigation facility • Connectivity through DGPS stations • Facilitation of transfer of land at Farakka for terminal

24. JITF PROPOSED SOLUTION Transshipper at high sea Barges on NW-1 Destination : Jetty with grab unloaders at destination

25. Vessel types River Barge Estuarine Ship Tug and Dumb Barge Pushboat and Dumb Barges

26. Conclusion • Water is a critical mode of transportation for any economy. Although it is a cost-effective and environment-friendly mode of transport, its share in the modal mix in India is significantly less than that in developed countries. Domestic shipping provides significant fuel and cost savings over road and rail transport and, thus, offers several opportunities to meet the demand for bulk transportation to nearby areas and along the coast, which is highly relevant for India. However, its low penetration in the country is a result of the long period it takes to transport goods, the unavailability of return cargo, lack of awareness of its benefits and various regulatory policies. • Only 7 per cent of Indian cargo moves through the water as against more than 40 per cent in China and European Union, despite having rivers and a long coastline. • With 10-11 TPS already in the vicinity of NW-1 and 10 more coming up; it will be unfortunate if we still do not use IWT for coal transportation thereon • Railways can simply not meet this demand- if waterways are not used, power generation will suffer- there is no other way • Haldia- Farakka coal transportation project can therefore be a trailblazer • Currently, Indian companies do not use the coastal route because of lack of roads and railways connecting ports to factories or consumption centres. The new government, in its maiden budget, allotted Rs4,200 crore to develop Ganga for inland waterway, giving a major push to coal transportation in the region.