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S. K. Shahi Secretary, IWAI

Coal Transportation by Inland Waterways. S. K. Shahi Secretary, IWAI. New Delhi, 10.07.2012. IWT in the past. IWT was important mode in the past In 19 th century steamers were plying from Kolkata up to Garhmukteshwar and Dibrugarh in the Ganga & Brahmaputra respectively

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S. K. Shahi Secretary, IWAI

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  1. Coal Transportation by Inland Waterways S. K. Shahi Secretary, IWAI New Delhi, 10.07.2012

  2. IWT in the past • IWT 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 lighterage movement 2

  3. IWT - Advantages 3

  4. IWT – Advantages contd… • Best suited for bulk cargo (coal, minerals, food-grains, fertilizers, cement, flyash etc), ODC and hazardous goods • Provides seaport - hinterland connectivity • Less development & maintenance cost compared to Railways and Roads • All weather mode of transport • Can supplement Roads and Railways • Strategic importance for North Eastern Region 4

  5. Other advantages of IWT mode • Safest mode • For each IWT fatality, there are 22.7 fatalities related to Rail and 155 in r/o Roads • Reduction of trucks from roads (decongestion) • One 1000 tonne barge = 100 trucks • Corridor capacity • While Road & Rail are stretched to limits, waterways in India have huge unutilised capacity

  6. Other advantages of IWT mode • Most environment friendly • Minimal land acquisition Tons of CO2 per Million Ton-miles

  7. Inland waterways & Coal transportation…….global scenario 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

  8. Power Sector Overview Generation Installed Capacity (as on 31.12.2011) : 187 GW 8

  9. 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

  10. Need for import of thermal coal • Shortage of domestic coal • Growth of installed capacity > production of domestic coal; making import of coal inevitable • MoP has been directing generating companies for import of coal • CEA has also issued advisory for designing new boilers suitable for blending ratio of 30:70 (imported: domestic coal) or higher Hence, imported coal will play a key role in generating thermal power 10

  11. 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 11

  12. Waterways of India • 14,500 km of potential waterways • Role of IWAI: Develop infrastructure and regulate movement on NWs • 3 NWs developed • Two more NW (4 & 5) declared in 2008 • One more NW declaration in process • Other waterways to be developed by States 12

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  15. 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. 15 15 Bay of Bengal Raimangal R. Myanmar (Burma) NAMKHANA ORISSA Sunderbans

  16. 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 16 KOLLAM

  17. Development cost- Rs 1515 cr (2010prices) • Notified on 25.11.2008 17

  18. Development cost- Rs 4210 cr (2010 prices) • Notified on 25.11.2008 18

  19. Proposed National Waterway – 6 : River Barak • Length –121 km • Development cost -Rs 120 cr (at 2011 prices) • Status: Declaration in process Badarpur Bhanga Silchar 19

  20. Inland waterways Advantage With so many waterways, their non- utilisation for transportation of coal is a great opportunity loss for the country 20

  21. Transportation of imported coal to hinterland TPS ideal for IWT • Haldia to Farakka TPS; a success story in making • For domestic coal too Coastal Shipping & IWT movement possible for MCL coal • Coastal vessel is loaded at Paradip/Dhamra Port • Lighterage at Haldia into IWT vessel for supplying coal to TPS on Ganga or Brahmaputra • Coastal vessel can directly supply coal at Budge Budge & Bandel TPS • With many thermal power plants located along Ganga and many steel plants near east coast there is tremendous scope for waterways for coal transportation 21

  22. 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 22

  23. Coal transportation by inland waterways from Bay of Bengal to Farakka TPS: a success story in making

  24. 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

  25. 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 25

  26. 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

  27. Current Status of Coal Transportation Project M/s JITF finalized the contract for transshiper in March, 2012. Trial run of barges undertaken successfully. Orders place for barges at different shipyards. Work for construction of Jetty at Farakka commenced. Movement to start by December, 2012.

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

  29. Logistics Solution for Coal Transportation on Haldia - Farakka stretch Conveyer Belt NTPC Plant, Farakka

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

  31. Conclusion • IWAI is geared to provide assured navigation channel with night navigation aids in three operational NWs • 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 • Key to this project was long term cargo assurance by NTPC • Success of this project is being keenly awaited With long term cargo commitment from shippers; and assured waterway from IWAI; private sector will come forward to invest in vessels and even infrastructure on case to case basis

  32. Thank you

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