INLAND WATERWAYS TRANSPORTATION IN INDIA WITH REFERENCE TO COAL

Dr.R.Giri Prasad,

Associate Professor & HOD,

Dept. of Petroleum Technology,

Aditya Engineering College, Kakinda, Andhra Pradesh, India

4TH COAL MARKET IN INDIA 2014,

22ND AUGUST 2014, NEW DELHI, IBK MEDIA

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

7

INDO – BANGLADESH PROTOCOL

ROUTES

JHAR

KHAN

D

B A N G L A D E S H

BIHAR

WEST BENGAL

A S S A M

M E G H A L A Y A

MANIPUR

MIZORAM

TRIPURA

HALDIA

KOLKATA

NW

-1

DHUBRIPANDU

TEJPURSILGHAT

JOGIGHOPA

SHISHUMARA

DHULIAN

KARIMGANJ

RAJSHAHI

NARAYANGANJ

DHAKA

Brahmaputra R.

Barak

LAKHIPUR

Bay of Bengal

I N D I A31

31C

DISPUR

40

51

SHILLONG

54

AIZWALAGARTALA

36 37

37

44

53

Jamuna R.

Ganga R.M

eghn

a R.

`

Kusiyara R.

Surma R.

Meghna R.

Sunderbans

Hoogh

ly R

.NW-2

BAGHABARI

Baral R.

CHILMARI

BAHADURABAD

SIRAJGANJ

ZAKIGANJ

FENCHUGANJSHERPUR

MARKULI

AJMIRIGANJ

BHAIRAB BAZAR

CHANDPUR

BARISAL

KAUKHALI

MONGLA

KHULNA

CHALNA

NAMKHANA

Raimangal R.

GODAGARI

ARICHA

ASHUGANJ

Ganga R.

Bhagirathi R.

ORISSA

Padma R.

Myanmar (Burma)

IMPHAL

KOHIMA

NAGALAND

53

34

35

2

6 41

31

Legend

Kolkata - Guwahati/Pandu ...... 1535 kmKolkata - Karimganj...................1318 kmDhulian-Rajshahi...........................78 km

Protocol route distances

N

BHANGA

AKHAURA

DAIKHAWA

LegendDeclared National waterwayProposed National waterwayProtocol routeRoadRailNH

51

ANGTIHARA

SYLHET

P

P

P

P

P

P

P

P

P

KOTTAPURAM

ALUVA

UDYOGAMANDAL CANAL

KAKKANAD(CSEZ)CHAMPAKKARA CANALKOCHI

MARADU

VAIKOM

CHERTHALATHANNERMUKKOM

LOCK CUM BARRAGE

ALAPPUZHA

THRIKKUNNAPUZHA

KAYAMKULAM

THRIKKUNNAPUZHALOCK GATE

CHAVARA

KOLLAM

47

220

49

17

208

N

Arabian SeaLegend

Waterway alignmentRoadRailImportant places

West Coast Canal(Kottapuram – Kollam)

Champakkara & Udyogamandal canals

National Waterway-3

River distanceKottapuram - Kollam 168 kmUdyogamandal canal 23 kmChampakkara canal 14 kmTotal length 205 km

K

E

R

A

L

A

Development cost- Rs 1515 cr (2010prices)

Notified on 25.11.2008

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

BhangaBadarpur

Silchar

Length –121 km Development cost -Rs 120 cr (at 2011 prices) Status: Declaration in process

Proposed National Waterway – 6 : River Barak

Stretch Km

Bhanga - Lakhipur 121

ROAD AND RAIL NETWORKRoads 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

United States 29%

Russia 20%China

14%

Australia 10%

India 8%

Germany 5%

Kazakhstan 4%

Ukraine 4%

South Africa 4%

Serbia 2%

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

2008-09 2009-10 2010-11 2011-120

100

200

300

400

500

600

700

800

550

597.98

656.31696.03

497.289999999999535.23

573.42 559

52.71 62.7582.89

137.03

COAL DEMAND(MMT)DOMESTIC (MMT)IMPORTED(MMT)

Installed Capacity –Fuel wise

Gas10%

Nuclear3%

Renewable10%

Hydro 20% Coal

54%

Diesel1%

Generation Installed Capacity (as on 31.12.2011) : 187 GW

Year Installed Capacity [GW]

2007 124

By 2012 190

By 2017 290

By 2022 425

By 2027 575

By 2032 800

Power Sector Overview

INLAND WATER TRANSPORTATION ADVANTAGES

150500

4000

0500

1000150020002500300035004000

Road Rail IWT

Fuel efficiency: One HP movesKgs

Road

Rail

IWT

24

85 105

04080

120

Road Rail IWT

One liter of fuel moves(T-km)

Road

Rail

IWT

5.2

2.51

0246

Road Rail IWT

Operating cost (international level)Cents /T km

Road

Rail

IWT

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

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 Low High High

Capital required Low High High

IWT USAGE OTHER COUNTRIESCoal 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

Hence, overdependence on railways needs to be reduced: road is out of question : IWT a realistic supplementary option, especially for imported coal

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

THANK YOU

Thermal power plants along NW-1

Allahabad

Haldia

136

8 Barauni

Barh

15

718

19

Bara Karchana

6

911 10 Pirpainti

Buxar

Bhagalpur

Lakhisarai1617

Anapara Obra

NTPC Plants

State Govt Plants

1

3

4

2

Bandel

Budge Budge

Kolaghat

14

Muzaffarpur

12

8

Kahalgaon

5 Farakka

Sagardighi

8 Expansion

Proposed Power Plants

20 Installed power: around 15,000 MW

Total coal requirement: around 75 MMTPA Imported coal: around 15 MMTPA

• 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

Destination

Barges on NW-1

: Jetty with grab unloaders at destination

Vessel types

Tug and Dumb Barge

Estuarine Ship

Pushboat and Dumb Barges

River Barge

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.