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

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 mechanised vessels. 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.

WATERWAYS OF INDIA

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 lakh tonne cargo in 1989-90, now engaged only in lighter age movement

cons. comm. 6.9.11

cons. comm. 6.9.11

Protocol route distances TEJPUR NAGALAND P SILGHAT 31C I N D I A Brahmaputra R. NW-2 A S S A M 36 JOGIGHOPA DISPUR 37 INDO – BANGLADESH PROTOCOL ROUTES 31 PANDU DHUBRI P 37 KOHIMA SHISHUMARA 40 DAIKHAWA SHILLONG 31 51 M E G H A L A Y A BIHAR CHILMARI 53 Barak MANIPUR Ganga R. Surma R. ZAKIGANJ 34 BAHADURABAD LAKHIPUR SYLHET BHANGA 53 IMPHAL KARIMGANJ P JHARKHAND Jamuna R. MARKULI Kusiyara R. FENCHUGANJ B A N G L A D E S H SHERPUR AJMIRIGANJ DHULIAN GODAGARI SIRAJGANJ RAJSHAHI P 54 Ganga R. Baral R. BHAIRAB BAZAR ASHUGANJ 44 N TRIPURA BAGHABARI ARICHA Meghna R.` AKHAURA AGARTALA AIZWAL DHAKA NW-1 Bhagirathi R. MIZORAM NARAYANGANJ Padma R. P Legend Legend 2 CHANDPUR Declared National waterway Proposed National waterway Protocol route Road Rail NH KHULNA 35 P BARISAL Meghna R. WEST BENGAL CHALNA KAUKHALI KOLKATA P 51 Protocol route distances P MONGLA 6 41 Kolkata - Guwahati/Pandu ...... 1535 km Kolkata - Karimganj...................1318 km Dhulian-Rajshahi...........................78 km HALDIA P ANGTIHARA Hooghly R. 7 NAMKHANA Raimangal R. Bay of Bengal Myanmar (Burma) ORISSA Sunderbans cons. comm. 6.9.11

Champakkara & Udyogamandal canals KOTTAPURAM N National Waterway-3 17 ALUVA (Kottapuram – Kollam) West Coast Canal Champakkara & Udyogamandal canals River distance Kottapuram - Kollam 168 km Udyogamandal canal 23 km Champakkara canal 14 km Total length 205 km UDYOGAMANDAL CANAL KAKKANAD(CSEZ) 49 KOCHI CHAMPAKKARA CANAL MARADU VAIKOM 47 K E R A L CHERTHALA THANNERMUKKOM LOCK CUM BARRAGE ALAPPUZHA 220 THRIKKUNNAPUZHA THRIKKUNNAPUZHA LOCK GATE Legend Waterway alignment Road Rail Important places Arabian Sea KAYAMKULAM CHAVARA 208 KOLLAM cons. comm. 6.9.11

Development cost- Rs 1515 cr (2010prices) Notified on 25.11.2008 cons. comm. 6.9.11

Development cost- Rs 4210 cr (2010 prices) Notified on 25.11.2008 cons. comm. 6.9.11

Proposed National Waterway – 6 : River Barak Length –121 km Development cost -Rs 120 cr (at 2011 prices) Status: Declaration in process Badarpur Bhanga Silchar Stretch Km Bhanga - Lakhipur 121 cons. comm. 6.9.11

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 lakh kms. 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.

WORLD COAL RESERVES

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

Power Sector Overview Year Installed Capacity [GW] 2007 124 By 2012 190 By 2017 290 By 2022 425 By 2027 575 By 2032 800 Does not include 15,905 MW of Captive Capacity Includes 8,700 MW of HVDC Capacity Peak Shortage- WR: 19% (7087 MW) (2008-09) Gujarat: 2881 MW (24.3%) (’08-’09) Maharashtra: 4283 MW (23.7%) (’08-’09) U.P.: 2339 MW (22.1%) (’08-’09) Generation Installed Capacity (as on 31.12.2011) : 187 GW 15

INLAND WATER TRANSPORTATION ADVANTAGES

Energy efficiency: 1 horse power (HP) can move what weight cargo (kg)? Parameters IWT Rail Road Energy efficiency: 1 horse power (HP) can move what weight cargo (kg)? 4,000 500 150 Fuel efficiency: 1 liter of fuel can move how much freight (ton – km)? 105 85 24 Equivalent single unit carrying capacity 1 barge 15 rail wagons 60 trucks Air pollution Low Medium High Land Acquisition Capital required Note: the information is for indicative comparison only, Source: Inland Waterways Authority of India.

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

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

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

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

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

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

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

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

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.