Viability of inland waterways in india

VEENA VIKRAMAN
MBA ITLM
INDIAN MARITIME UNIVERSITY KOCHI

1. Viability of Inland Waterways in India

2. 2 Introduction Inland Waterways- Global Scenario Inland waterways in India IWAI and other Organizations governing IWT India’s infrastructure – potential & obstacles of IWT Ben e fits of IWT and its Impacts Rail, road and port connectivity Ongoing and upcoming projects in IWT development Conclusion Agenda

3. 1. INTRODUCTION - Ajith Albi 3

4. 4 World’s second fastest growing economy Over 2,500 billion ton-km freight carried annually 18 th April 2018

5. Robust Logistics Network 5 5.32 Million KM of road 125 Airports 14,500 KM of Navigable waterways 1,19,630 KM of Rail 7 ,500 KM of Coastline 18 th April 2018

6. Two major categories under which water transport can be divided are as follows : 1 . Inland Waterways 2 . Ocean Transport There are three types of inland waterways, namely, rivers, rivers which have been modified or canalised , and specially constructed canals. In earlier times much, perhaps most, of the inland carriage of commodities was by water . D uring the 18th century, ships began to grow in size, trade began greatly to expand, and speed of carriage came to be of greater importance . In 19th century, there was some decline in inland water transport due to development of railways and road transport. But after sometime, water transport has tended to make a comeback, this is closely linked with the cheapness and capacity for bulk carriage 6 18 th April 2018

7. 2 . Inland waterways – Global Scenario -Ashitha S Illimoottil 7

8. Three types of inland waterways Rivers Modified rivers/ Canalised Specially constructed Canals 8 18 th April 2018

9. INLAND WATERWAYS Multipurpose Providing drainage Irrigation Water supply Navigation Generation of hydroelectric power 9 18 th April 2018

10. HISTORY -overview 18 th Centuary – ship size increase Inland towns with water communication Canals construction Pioneer –England (man made waterways) 19 th Centuary - decline (development of road , rail) Comeback- cheapness, bulk carriage capacity 10 18 th April 2018

11. M odernized inland waterways, using the latest navigational aids and traction methods and traversing the great landmasses of  North, America,   Europe, and Asia, play an increasingly important economic role. 11 18 th April 2018

12. Inland waterways  Europe: Europe, France, Germany, Belgium, Netherlands Russia, have very extensive waterways The major French rivers are modified and linked by canal systems Rhine waterways – busiest navigable river of the world North America: Navigable waterways - 36,072 km NAWAPA – the North American Water and Power Alliance. 12 18 th April 2018

13. ASIA not having elaborate system of inland waterways China – river contribute to the development of commerce Northern India is especially endowed with three large navigable rivers  development of railways  river mostly handles wheat, cotton and wool World bank provide financial asssistance to Bangladesh for improving inland waterways 13 18 th April 2018

14. AFRICA Rivers are navigable - very limited length  Nile -River in north-east Africa Tropical Africa, the Congo provides a magnificent system for waterways. SOUTH AMERICA long rivers use of inland waterways is limited.   Amazon system is of relatively little use AUSTRALIA Deficient in waterways Existing - not suitable for navigation purpose 14 18 th April 2018

15. Freight movement of waterways across the country 15 18 th April 2018

16. ADVANTAGE Natural forms of mode of transportation provide the only practicable routes Cheap mode –Imperishable, bulk cargoes Global reduction in pollution Safety mode 16 18 th April 2018

17. Worldwide O rganizations 17

18. C hallenge "The challenges in inland water transport faced in Europe, North America, and Asia are all the same. Even the solutions, to a larger extent, could be similar in one river basin compared to the other .“ Hans van der Werf , Secretary General, Central Commission for the Navigation of the Rhine lack of dedicated transport policies and investments 18 18 th April 2018

19. 3 . Inland waterways in India - Sudev 19

20. INLAND WATERWAYS Inland waterways are the water bodies like rivers, tidal river line, canals, brooks etc which are wide and deep enough to be used for inland navigation . Inland waterways authority of India under MOS is the body which undertakes development and maintenance of the inland waterways in India. Rules and Regulations are formulated by IWAI. The government organization which carries out the operations in the inland waterways is central inland waterways transport corporation ltd. 20 18 th April 2018

21. There are three national waterways which are operational, two more have been identified and under maritime agenda barak River will be developed as NW-6 . The first three National Waterways (NW-1, 2 & 3) are being developed for shipping and navigation by providing basic inland transport infrastructural facilities. Including navigational channel with required depth and width, aids for day and night navigation, and terminals at selected locations for berthing and loading/unloading of vessels. 21 18 th April 2018

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24. The Ganga -Bhagirathi-Hooghly river system between Haldia ( Sagar ) & Allahabad (1620 kms ) was declared as National Waterway No. 1(NW-1) during October 1986. IWAI had been maintaining a navigable depth of : 2.5 meters in Haldia - Farakka (560 km ) 2.0 meters in Farakka - Patna (460 Km) 1.5 meters in Patna - Allahabad sector (600Km ). At present the waterway is being used by tourism vessels, ODC Carriers, IWAI vessels etc. 24 18 th April 2018

25. Traffic : The NW-1 is being used to transport cargo — mostly local produce and tourists. The Ministry of Shipping projects that the NW-1 will carry mostly bulk goods. Cargo like cement, iron ore, coal and coal combustion products, crude oil and petroleum products, rock phosphate, timber, stone chips, manganese ore . Agricultural produce, Finished iron products from the number of steel plants present in this region will also be a major cargo in this route. 25 18 th April 2018

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27. The river Brahmaputra having a length of 891 Km between Bangladesh Border to Sadiya was declared as National Waterway no. 2 on 1st September, 1988. IWAI is carrying out various developmental works on the waterway for improving its navigability as laid down in the IWAI act, 1985. IWAI had been maintaining a navigable depth of 2.0 meters between Bangladesh Border to Dibrugarh (768 Km) and 1.50 meters in Dibrugarh - Sadiya sector (123 Km). 27 18 th April 2018

28. Traffic: At present the waterway is being used by vessels of Government of Assam, Border Security Force, tourism vessels, and other private operators. Long cruise tourist vessels are making voyages between Sivsagar near Dibrugarh and Manas wild life sanctuary near Jogighopa continuously . 28 18 th April 2018

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30. The West Coast Canal or National Waterway No 3 is located in Kerala, India and runs from Kollam to Kottapuram and was declared a National Waterway in 1993 The dredging of this canal has been finished . The National waterway 3 is one of the most navigable and tourism potential area in India and has much to offer to the potential tourist . The 205 km long West Coast Canal is India’s first waterway with all time navigation facility. This is the first National Waterway in the country having 24 hours navigation facilities in the entire stretch. 30 18 th April 2018

31. Traffic A sizeable quantity of chemicals and fertilizer imports of public sector FACT were being transported through the Udyogamandal canal by barges. There is a passenger ferry operated by Kerala State Water Transport Department from  Vyttila Mobility Hub to  Kakkanad  stretch of Udhyogamandal Canal from 2013. There are active plans to extend this to Pallikara near  Veega land to increase ridership and connectivity.  There also passenger boat service operated along the water way from boat jetties at  Kollam ,  Alappuzha , Fort Kochi,  Ernakulam . 31 18 th April 2018

32. National Waterway - 4 32 18 th April 2018

33. National Waterway 4 is a 1,095 km long waterway in India. It has been declared as an Indian National Waterway and is currently under development. It was declared a National Waterway on 24 November 2008 It connects the Indian states of  Telangana ,  AndhraPradesh , Tamil Nadu, and   Puducherry . The NW-4 runs along the  Coromandal Coast  through Kakinada,  Eluru , Commanur , Buckingham Canals and also through part of Krishna and Godavari rivers in South India. The total cost of development would be around Rs1515 cr on PPP basis(BOT, BOOT ). 33 18 th April 2018

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35. National Waterway 5 connects Orissa to West Bengal using the stretch on Brahmani River,East Coast Canal,Matai river and Mahanadi River Delta. The 623 km long canal system will handle the traffic of cargo such as coal, fertilizer, cement and iron . The total cost of development would be around Rs 4210 cr on PPP BASIS Two phased development : a) Phase 1- Brahmani river and delta portion from Charbatia to Dhamra . b) Phase 2- EAST COAST CANAL from Geonkhali to Charbatia 35 18 th April 2018

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37. National Waterway 6 is the proposed waterway in Assam state and will connect  Lakhipur to Bhanga in river Barak. The 121 km long waterway will help in trading between town of Silchar to Mizoram State. 37 18 th April 2018

38. 4 . IWAI and other Organizations governing IWT - Jose Alex 38

39. IWAI ( Inland Waterways Authority of India) NIVI(National Inland Navigation Institute ) CIWTC (Central Inland Water Transport Corporation Limited) Ministry of shipping 39 18 th April 2018

40. IWAI 27 October 1986 for development and regulation of inland waterways for shipping and navigation HQ :Noida , UP Regional office in Patna, Kolkata, Guwahati and K ochi and sub office at Allahabad, Varanasi ,Bhagalpur, Farrakka and Kollam . A n amount of ₹1,117 crore (US$170 million) was spent on Inland waterways of India 40 18 th April 2018

41. IWAI’s main responsibility is the provision of an effective waterway on the National Waterway system . The authority primarily undertakes projects for development and maintenance of inland waterway, terminal infrastructure on national waterways through grant received from Ministry of shipping, Road transportation and Highways. IWAI has taken on a limited role in the provision of some infrastructure at terminals ( for example at Patna, Guwahati, and Kerala) and has also commissioned some medium-size barges. 41 18 th April 2018

42. NINI(National Inland Navigation Institute) The National Inland Navigation Institute (NINI) has been set up by Inland Waterways Authority of India (IWAI) at Patna , Bihar in February 2004 with a view to develop human resource for the Inland Water Transport sector including development, maintenance and management of waterways The institute imparts quality training on various aspects of inland water transportation namely development & management of waterways, surveying , dredging of waterways, design , construction of terminals & vessels , Technical & commercial operation of vessels, running of vessels, terminal management, and traffic management. 42 18 th April 2018

43. The institute provides training at three levels namely induction, upgradation and professional development for vessel operations . . The institute is uniquely positioned to offer a complete spectrum of training in Inland water transport sector. 43 18 th April 2018

44. CIWTC: Central Inland Water Transportation Corporation Central inland water Corporation Limited was incorporated in May 1967 at Kolkata as a Govt. of India undertaking after taking over the business from a loss making erstwhile sterling company, namely River Steam Navigation & Co. It is under the administrative control of ministry of shipping Govt. of India 44 18 th April 2018

45. Principle activities Transportation of cargo through inland waterways Operational repair of IWT vessels Operation and maintenance of four major and many minor terminal 45 18 th April 2018

46. The CIWTC is mainly engaged in transportation of goods by inland waterways in the Ganga-Bhagirathi-Hooghly, Sunderbans and Brahmaputra rivers. They are operating regular cargo services between Kolkata and Pandu (near Guwahati), between Kolkata and Karimganj (Assam), Kolkata-Bangladesh and between Haldia and Patna. The Government has decided to disinvest the corporation and the process for disinvest has been initiated. 46 18 th April 2018

47. Ministry of shipping The ministry maintains a Separate IWT wing the IWAI comes under this wing. The ministry will regulate act and policy for the IWAI  The Inland Waterways Authority of India Act, 1985 The National Waterways Act, 2016 47 18 th April 2018

48. 5 . India’s infrastructure – potential & obstacles of IWT 48 - Lijoy 18 th April 2018

49. Potential and Actual Utilisation: 14,500 km of river channels are navigable, of which 3,700 km are usable by mechanised boats. But actually, only 2000 km are used. T he total canal length of 4,300 km in India, 900 km is navigable, but only 330 km is used. 50  million  tonnes of   cargo is moved annually through waterways using mechanized  vessels. 49 18 th April 2018

50. 1 HP moves 150 kg on road, 500 kg on rail and 4,000 kg on water 1 litre of fuel moves 24 tonne-km on road, 85 on rail and 105 on inland water transport The cost of water transportation in India is roughly 50 paisa a kilo meter, as compared to ₹1  by railways and ₹1.5 by roads. 50 18 th April 2018

51. Geographical obstacle : Increased siltation :  Reduced navigability due to siltation, as in the Bhagirathi-Hooghly and in the Buckingham Canal . Reduced water flow :  Reduced flow due to diversion of water for irrigation, for instance, in the Ganga which makes it difficult to reach quickly for steamers. 51 18 th April 2018

52. Technical obstacle : Inadequate depth : Inadequate air draft: Multiple bridges with low vertical clearance block the passage of bigger vessels. Eg : It is faced in NW3. Shortage of IWT vessels & Shortage of MRO facilities : Lack of terminals : It inhibits door-door connectivity to end users. 52 18 th April 2018

53. Financial obstacle: Political obstacle: 53 18 th April 2018

54. 6 . BENEFITS OF INLAND WATERWAYS 54 - Nanditha S 18 th April 2018

55. BENEFITS OF INLANDWATER WAYS Passenger movement Cargo movement Commercial potential Other issues 55 18 th April 2018

56. PASSENGER MOVEMENT Mainly by ferries. Travel time Cost Interchange convenience Carriage of vehicles Tourism Water sports 56

57. CARGO MOVEMENT A need to shift traffic from rail and road. Shorter routes. During the flood season. Reduce congestion on roads and railways. 57 18 th April 2018

58. COMMERCIAL POTENTIAL Large customers with regular demands. Small customers with regular demand. Small customers with occasional demand. Export/import traffic through ports. 58 18 th April 2018

59. 7 . Rail, road and port connectivity 59 - Jincy 18 th April 2018

60. ROAD CONNECTIVITY : Two‐lane road connectivity to the nearest National Highway or State Highway to serve the traffic identified. 31 identified terminals can be connected to the nearby State / National Highway by two lane road. Cost of up gradation / construction of existing two lane roads is considered as Rs.1 cr per km Existing single lane road into two lane road is considered as Rs.4 cr per km. 60 18 th April 2018

61. RAIL CONNECTIVITY : The rail lines are proposed for connectivity the following specifications are considered: From nearest Railhead up to boundary of IWT Terminal: The section proposed is of Electrified single line Broad Gauge section, requiring a land width of 15m. Inside Terminal location: 1300m straight length with 30m wide land strip, which facilitate a full rail rake loading/ unloading operations with engine escape line, sick wagon line, weigh bridge, etc . 61 18 th April 2018

62. PORT CONNECTIVITY : IWT Terminal location storage yard can be provided by the respective port within their port boundary. IWT cargo is considered in the identified ports to facilitate transfer of cargo from the IWT Vessels and Sea Vessels within respective port limits. The finger jetty is connected to the adjacent sea vessel berth/ wharf. 62 18 th April 2018

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65. 8 . Ongoing and Upcoming projects in IWT development 65 - Veena Vikraman

66. Ongoing projects IWAI Since inception of Inland Waterways Authority of India (IWAI) in October 1986, projects worth Rs. 1871.567 crore (cr.) for development of National Waterways (NWs) have been implemented till March, 2016. At present, the details of various ongoing major projects for development of NWs are as under: National Waterway – 1 (NW-1)(GANGA HALDIA TO ALLAHABAD) ( i ) Construction of Phase-I (A) of the multimodal Inland Water Transport (IWT) terminal at Varanasi at a cost of Rs.169.60 cr. (ii) Construction of Phase-I of the multimodal IWT terminal at Sahibganj at a cost of Rs.292.10 cr. (iii) Construction of a new navigational lock at Farakka at a cost of Rs 359 cr 66 18 th April 2018

67. National Waterway -2 (NW-2) ( BHRAHMAPUTHRA) River Conservancy works comprising of fairway development, navigational aids, construction of slipway and bank protection (channelization) at a cost of Rs 81.1369 cr National Waterway -4 (NW-4) Fairway development in the Vijayawada to Muktyala stretch at a cost of Rs. 42.57 cr . National Waterway -5 (NW-5) Dredging between Erada and Padanipal stretch and construction of floating terminal facilities at a cost of Rs. 47.85 cr. 67 18 th April 2018

68. IWAI 106 New NWs Techno–economic feasibility studies and Detailed Project Report (DPR) for the 106 new National Waterways at a cost of Rs. 25.32 cr. IWAI has begun the preparatory works on converting 106 rivers into National Waterways (NWs) by making them navigable. 106 rivers across the country were declared national waterways by the government in April 2016. These rivers would be used to move freight cargo. In phase I, 8 waterways are being considered for development 68 18 th April 2018

69. Bihar (NW-37, Gandak & NW-58 , Kosi ), Uttar Pradesh (NW-40 Ghaghra ), Goa (NW-68, Mandovi , NW-111, Zuari and NW-27, Cumberjua Canal), West Bengal (NW-97, Sunderban ), Assam (NW-16, Barak). "While the Detailed Project Report (DPR) for these waterways are ready, the tender process for fairway development of two NWs namely river Barak in Assam and Ghaghra in Uttar Pradesh respectively have been initiated. 69 18 th April 2018

70. For Goa waterways, the tenders for construction of jetties would be taken up shortly . For another 46 waterways, which are in coastal & tidal regions, two stage DPR studies have been initiated. Of the remaining 52 waterways which are in remote, inaccessible and hilly regions, only feasibility studies have been ordered. Field surveys in 44 NWs have been completed. Draft feasibility report of 36 NWs have been received and are under evaluation.  70 18 th April 2018

71. Upcoming projects KMRL Kochi Water Metro  is an integrated water transport project in Greater Kochi region proposed by Kochi Metro Rail Limited. It will be developed as a feeder service to the Kochi Metro rail. The water metro is expected to start operations on April 14 2019 Two variants of modernised air-conditioned and Wi-Fi enabled catamaran passenger boats are proposed for the project. The boats with passenger capacity of 50 and 100, will operate at an optimal speed of 8 knots, with the potential to increase up to 12 knots. The boats will be equipped with latest safety and communication devices.  71 18 th April 2018

72. Phase I During the phase I, it is proposed to operate 7 routes with a fleet requirement of 43 boats. In phase-I, 16 out of the 38 jetties will be developed and will be completed by 2018. Phase II The entire water transport project will be fully operationalised by 2019. In Phase II, it is proposed to operate 9 routes with a total of 16 routes and a fleet requirement of 78 boats. Funding The total cost of the Water Metro project is Rs 820 crore . The  KfW  Development Bank will be providing EUR 85 million as long term soft loan and the State Government of Kerala will be contributing Rs 102 crore . 72 18 th April 2018

73. SAGARMALA Inland waterways development comes under port connectivity. 73 18 th April 2018

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76. SAGARMALA According to a study conducted under the Sagarmala programme , potential for moving raw materials and finished products using coastal shipping and inland waterways which is 60-80% cheaper than road or rail transport. Although the share of coastal shipping and inland waterways in the country’s modal mix remains low, an emphasis on coastal shipping to complement road and rail transport can lead to overall logistic cost savings. The programme aims to increase the share of inland waterways and coastal shipping in modal mix to increase from 6% to 12%. 76 18 th April 2018

77. Coastal power plants in Andhra Pradesh and Karnataka, that currently receive coal from Mahanadi Coalfields by Railways, It is estimated that coastal movement of coal to these plants can result in annual savings of over INR 10,000 Crore to the power sector.  77 18 th April 2018

78. CIAL PROJECT WITH INLAND WATER TRANSPORT State government associated with Cochin International Airport Ltd in the inland waterways development project. Headed by the chairman of the company Shri . Pinarayi Vijayan Expected to be completed in 2020 Planning to float a special purpose vehicle connecting 11 districts from Kovalam to Kasargode . The projects aims at improving water transport, tourism development and goods transport through inland waterways. 78 18 th April 2018

79. 9 . CONCLUSION 79

80. Why water-based transport has not taken off in India, despite its many benefits When the Indian government first started to seriously explore inland waterways in 2004 , the share of transport traveling through water was “a paltry 0.15% ”. This compared to 20% in Germany and over 32% in Bangladesh. The possibilities of inland water transport are manifold. Despite these large and beneficial aspects of the use of inland waterways, the usage had only increased to 0.5% by 2016 , according to an  FAQ released by the Inland Waterways Authority of India. According to  a detailed report  put out by the Manthan Adhyayan Kendra and Society for Rural Urban and Tribal Initiative , there is a great deal to doubt whether this transformation either will, or should, happen. 80 18 th April 2018

81. Estimation of costs - cost of freight is not that spectacularly different - the cost of loading and unloading freight . As a recent report – the outcome of a National Policy Dialogue on trans boundary cooperation related to the Ganga and the Brahmaputra rivers – states, “ Unfortunately, due to less or no development of special economic zones along Ganga and Brahmaputra rivers, there is hardly any presence of industries resulting in no cargo commitments by the private players. This is the biggest impediment for the development of IW [inland waterways] in India .” Another aspect that raises costs is that travel by river is much slower than by rail or road, and therefore there is an opportunity cost of the time spent . 81 18 th April 2018

82. The other problem with inland water transport in South Asia is that a river needs enough depth throughout the year for it to be a viable inland waterway . Both for the dredging as well as the infrastructure , there will have to be very heavy investment . R eport prepared by RITES Ltd - to fully develop six national waterways, it would require Rs 227.6 billion ($3.5 billion) in government investment and Rs 655.9 billion ($10.2 billion) in private investment, 80% of this during the five-year period of 2017-2022 . - But in 2016-2017, the amount allocated for inland waterways was Rs 3.6 billion ($56.4 million) and in 2017-2018 it was Rs 3 billion ($47.1 million) – not counting a small amount to Bangladesh . - At this rate, only a fifth of the required public spending will have accrued until 2022 82 18 th April 2018

83. The Bangladesh option Despite these high hurdles, there is a possible easy win, which is with Bangladesh. Bangladesh shares 54 transboundary rivers with India, and more than 30% of its transport is through inland waterways. Bangladesh is also a key part of the proposed Bangladesh-Bhutan-India-Nepal sub-regional grouping. A n inland waterways agreement would not disturb Bhutan’s ecosystem, because in Bhutan the rivers are not navigable by large vessels anyway. They would have to be loaded and unloaded and goods moved by road, the same as in Nepal, for which a port is now being built at Sahibganj on the Ganga. Meanwhile, Bangladesh and India have already been discussing  tourism within the Sundabans , and a Protocol on Inland Water Transit and Trade has been in place between the two countries since 1972. 83 18 th April 2018

84. Thank you very much for your time 84