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IWT in India NW-1: Allahabad-Haldia stretch of Ganga- Bhagirathi-Hooghly river system (1620km) NW-2: Sadiya — Dhubri stretch of Brahmaputra river (891km) NW-3: Kottapuram-Kollam stretch of West Coast Canal, Champakara Canal and Udyogmandal Canal (205km) NW-4: Kakinada-Pondicherry stretch of canals and Kaluvelly Tank, Bhadrachalam — Rajahmundry stretch of River Godavari and Wazirabad — Vijayawada stretch of River Krishna (1,095km) NW-5: Talcher-Dhamra stretch of the Brahmani River, Geonkhali — Charbatia stretch of East Coast Canal, Charbatia-Dhamra stretch of Matai river and Mangalgadi — Paradip stretch of the Mahanadi River Delta (623km) NW-6: Lakhipur to Bhanga of river Barak in Assam (121km) 2

IWT- The Need of The Hour ParametersIWTRailRoad Energy efficiency: 1 horsepower (HP) can move what weight of cargo (kg)? Fuel efficiency: 1 liter of fuel can move how much freight (ton-km)? Equivalent single unit carrying capacity 1 barge 16 rail-road wagons 60 trucks Air pollutionLowMediumHigh Land acquisitionLowHigh Capital requiredLowHigh Low capital cost Cost of development of IW has been estimated to be a mere 5-10 percent of the cost of developing an equivalent 4-lane highway or railway Advantages of IWT Low fuel cost This fact is borne out by the estimate that one litre of fuel can move 24 tonne km of freight by road, 85 by rail and 105 by IWT Low maintenance cost Cost of maintenance of inland waterway is placed at 20 percent of that of roads 3

Cargo Potential Thermal Coal On NW 1 there are 10 thermal power plants (TPS); 11 more TPS expected Total coal requirement – 70 Mn T per yr of which 14 Mn T to be imported for which IWT could be best solution NTPC committed 3 Mn T per Yr imported coal by IWT for Farakka for 7 years TPA signed among IWAI, NTPC & Jindal ITF on Fly Ash Fly ash movement by IWT increased from 2 lakh tonne in to 15 lakh tonne in With more power plants coming up, further increase expected Foodgrains Food Corporation of India (FCI) proposed to transport 30,000 T per month from Kolkata to Agartala via Ashuganj FCI also proposed internal movement in Assam by IWT Fertilisers There are 7 fertilizer plants near NW 1 with possibility of transportation of 7.65 lakh T per year by IWT Containers Daily 200 containers are moved between Bolghatty & Willingdon islands on NW 3 There is prospects of movement of containers on NW-1 & 2 4

Coal requirement for these power plants = 70 million tonne (14 million tonne of which is imported) 7 fertilizer plants along NW1 which can provide an estimated 7.65 lakh tonne of cargo per year 10 power plants functional with 11 one proposed Cargo NW1 5

Impediments &Risks to the Growth of IWT Insufficient depths throughout the stretch of navigable waters. The peninsular rivers depend on rainfall for their volume of water. Thus during dry periods, these appear to be ribbons of water only Excessive siltation in major rivers from erosion of uplands and deforestation Navigation being relegated to the fourth position due to priorities to drinking water, irrigation and power (hydel) sectors that results in reduced draft Non availability of low draft high technology vessels (400 vessels of public and private sectors put together)Non availability of adequate navigational aids resulting in restricted sailing over long periods of timeNon-availability of permanent terminals with adequate infrastructure for loading /unloading, storage etc.Non availability of bulk commodities along the water frontNon availability of return cargo on most of the routes Most of the large rivers of the country enter the sea through shallow sand chocked delta channels. Thus navigation is hampered unless dredging is done 6

Scope for Improvement Continuous dredging to maintain optimum river depth Employ more low draft, high technology vessels Providing Navigational aids by the government Creating adequate infrastructure for loading, unloading and storage (e.g. 60 trucks are needed to unload the cargo of one 750 tonne vessel) Targeting industries along the waterfront for assured cargo transport Incentivising return cargo client to ensure a contract Improving the depth near the delta (where river meets the ocean) 7

Benefits to Private sector by IWAI Ownership and operation of vessels for cargo and passengers Fairway development and maintenance Construction and operation of river terminals or river ports Provision and operation of mechanised cargo-handling systems Putting up and maintenance of navigational aids Provision of pilotage services Setting up and running of IWT training institutions 8

Policy support for accelerated IWT growth Joint Venture by IWAI Equity participation by Govt. in BOT Projects Tax exemption similar to National Highways Enhancement in depreciation rate for inland vessels Vessel Building Subsidy of 30% Customs Duty concessions. 9

Assistance to States in IWT development IWAI set up in 1986 vide IWAI act 1985 Functions Techno- Economic feasibility studies Advise the Central Govt on IWT matters Infrastrucure development and regulation of NWs Infrastructure provided on NW 1,2 &3 Facilities Fortnightly surveys &issue of River Notices; Navigation charts & river atlas 24 hours navigation aids in Balia (NW1,1000 Km), Silghat (NW2,440 Km) & entire NW 3 DGPS stations at Swarupganj, Bhagalpur & Patna(NW1); Silghat & Dibrugarh (NW2) Pilotage assistance also available on NW-1 & 2 Government Initiatives- Benefits Available Cargo movement along National Waterway I will receive a tremendous boost with Rs 4,200 crore being set aside in the Budget for development of the stretch of river between Haldia and Allahabad over a period of six years. 10

Profitability Strategy 11 Convergence_Top Gun.xlsx Operational surplus (if company incorporates one 750 tonne barge) = Rs273.80Lakhs (Profit before Interest & Dep) If we employ even 10 barge of 750 tonne, annual increase in Profit before Interest & Dep = Rs crore If we employ even 5 barges of 1000 tonne, annual increase in Profit before Interest & Dep = Rs *5 Lakhs = RS Cr With additional acquisition of 10 barge (750 tonne) + 5 barge (1000 tonne), annual increased Profit ( before Interest & Dep)= Rs crores Profit PBDIT= Rs Cr Hence this a very profitable business and ISC must venture into it Their current fleet can’t be used for IWT as their draft requirement is much higher (min value is 11) IWT requires 3-4 drafts

Innovation Strategies India Shipping Co. Ltd. Integration of coastal and marine shipping with Inland water Transport Actively Developing Economic Alliances in IWT Provide concession to industrial clients on export shipping on assured shipment of IWT cargo Develop digital, including simulator-based, tools for education/training and cost- efficient navigation following inter alia, the assessment of manning and training/qualification requirements with regard to vessel operation and cargo handling (including modal links 12

Contracts with Major Suppliers 13 Flagship examples that partially or completely employ IWT as a cost-effective transport option Cement from Farakka to Nabadweep, Bhagalpur and Patna Hot-rolled (HR) coils from Kolkata to Tripura via Ashuganj Project cargo for planned hydel power projects in Arunachal Pradesh Coal for thermal power plants on the Ganges and the Brahmaputra Food grains from Kolkata to Tripura via Ashuganj and within Assam Fertiliser movement on the Ganges Iron-ore shipments in the Goa region Transportation of coal for the National Thermal Power Station (NTPC) — Farakka project Transportation of fly ash from West Bengal to Bangladesh

References transport/articleshow/ cms coastal-inland-wa.html board_Insights_into_India_maritime_community.pdf 14

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