Inland Water Transport Sector

Inland Waterways Authority of India

New Delhi, 18th October 2012

Presentationon

Inland Water Transport

Inland Waterways Authority of India

Vijayawada, 13th October 2017

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85105

0

40

80

120

Road Rail IWT

One liter of fuel moves(T-km)

Road

Rail

IWT

Advantages of IWT mode

Benefits of IWT – Socio Economic

Cheaper Operating Cost & Relatively Lesser Fuel Consumption -Energy & Vehicle Operating Cost

Less Polluting Mode of Transport - Air, Noise, Soil and Water

Safer Mode of Transport -Negligible Accidents

Minimal Requirement of Land compared to other Modes -Negligible Surface Occupation

Environment Friendly Mode of Transport - Less Emissions

Source:• 11th Working Group Report Shipping & IWT , planning Commission• Planning Commission: TTS Study 2014• Permanent International Association of Navigation Congresses (PIANC) Report• 12th Five Year Plan , Planning Commission

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3 phase development

Phase 1: Muktyala to Vijayawada (Krishna River) (82 Km)

Phase 2: Vijayawada – Kakinada and Rajahmundry to Polavaram (233 Km)

Subsequent

Phases : Commamur & Buckungham Canal & balance portion of Rivers Krishna Godavari

Development works in Phase-1 stretch from Muktyala to Vijayawada of Krishna River are in progress.

Declared as National Waterway 4 (NW 4) on25.11.2008The Kakinada-Puducherry stretch of Canals integrated withBhadrachalam - Rajahmundry stretch of River Godavari andWazirabad - Vijayawada stretch of River Krishna (1078 km)

NW-4 extended by NW Act-2016:Revised length 2890KMAdditional Reaches :River Krishna from Wazirabad to Galagali (628 Km)River Godavari from Bhadrachalam to Nasik (1184Km)

Techno-economic feasibility studies are in progress for this extended portion of NW-4

NW-4: Phase - 1 development

Phase 1 - 82 km stretch

Source: RITES

Cargo terminals1) Muktyala

2) Harichandrapuram

3) Ibrahimpatnam

Passenger terminals

1) Vedadri

2) Amravati

3) Bhavani Island

4) Durga Ghat

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Fairway development /

DredgingTerminals: 7

Navigational Aids

INR 50 Cr

INR 44 Cr

INR 2 Cr

Sanctioned (March 2017) INR 96 Crore

Total project cost

Durga Ghat

• Located in heart of Vijayawada city; several heritage sites (temples) & natural landscapes in the region

• Strong potential for riverfront development

Bhavani Island

• 133 acre island in middle of Krishna river at Vijayawada

• Number of resorts and water sports facilities already existing

Vedadri

• Renowned pilgrimage center situated on the left bank of the River Krishna.

Amravati

• World renowned Buddhist tourist place

• Expected to have a population of 11 million by 2035, aiding connectivity to adjacent locales

Passenger terminals – Phase 1

Source: RITES

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IWT is expected emerge as a significant mode of transport due to road congestion in the region

Source: RITES

Phase - 2 project

1,739.10 acres

GoAP land to be transferred:

Dredging/excavation:

Terminals

Retaining walls: 46.24 km

Modification of civil structures:

Navigation aidsOffice establishment and

manpower

Private land acquisition:

3061.94 acres

35.45 Million cum

4

473

46.24 km

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Major activities: Action initiated

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o IWAI & GoAP agreed o PIB memo for formulation of SPV is sent for approval

SPV Formation

Dredging

Terminal facilities

Land acquisition

Modification of structures

o Land Delineation – Survey completed by State Govt.

o LP schedules under preparation

o Muktyala to Vijayawada (Qty. 2.9 M cum)

• Works awarded & dredging activity started

o DPR prepared by– M/s RITES• Work awarded for four floating terminals

o Categorization by GoAP:• Preparation of design & detailed estimates in progress

Ph

ase

-1

Ph

ase

-2

Proposal for establishing AP Inland Waterways Ltd.

SHAREHOLDERS IWAI INCAP

CONTRIBUTION INR 510 Crores Land worth ~ INR 490 Crores

SHARE OF EQUITY 51% 24%

FUNDS* (IWAI by cash, GoAP by land) market borrowings over contributed equity

APWRDC

25%

Project implementation, maintenance, operations and promotion of NW4Primary Objective

Proposed org structure

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Traffic assessment:

Source: WAPCOS Limited

1. Feedback Infra estimated the traffic in NW4 during first year of operations i.e. 2021 as 4.36 MTPA.

2. End user cost: ~ INR 2.51 / Ton / km in case of no incentive from GoAP.

Includes first mile (conveyor), last mile (rail) and waterway charges.

3. IWT cost shall be highly competitive to road (5.75) and rail (1.99) in case of any incentive

from GoAP

4. Ancillary sources of revenue include hydro power generation & tourism.

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Source: Feedback Infra

2.95 1.54 1.37 1.14 0.07 0.04

3.2910.4

Coal Rice Fertilizer Cement Forest

products

Salt Misc

products

Total

Projected commodity-wise traffic in NW4 during 2037

Cargo growth in the region

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Cargo at AP Ports connecting to NW4 has growth at CAGR of ~ 15% over the past 5

years Cargo volume handled at AP Ports (all table figures on this slide in million Tons)

Name of AP Port FY12 FY13 FY14 FY15 FY16

Kakinada Deep Water 9.89 12.14 13.40 17.96 14.36

Kakinada Anchorage 3.16 3.95 2.74 2.71 2.08

Krishnapatnam 15.51 21.12 24.38 39.45 33.26

Total 28.56 37.21 40.53 60.12 49.70

Cargo volume to NW4 (assuming 8% modal shift) may be 7.95 MT in FY21 and 28.27 MT by FY36

Assuming the average growth rate of ~ 14.9% is sustained over the next 5 years and the

growth rate flattens every 5-6 years, the volumes work out as shown:

Year FY21 FY26 FY31 FY37

Average growth rate in previous years 14.9% 12.4% 9.9% 8.3%

Total cargo volume at 03 AP ports 99.35 178.88 284.59 459.99

Cargo volume to NW4 (assuming 8%overall modal shift from road/rail to IWT)

7.95 14.23 22.77 36.80

Cargo volume to NW4 may be 7.95 MT in FY21 and 36.80 MT by FY37

Interventions suggested and the way ahead

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SPV

Terminal construction & Modification of structures Activity

Year 2017 2018 2019 2020 2021

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Approvals from GoI:• Public Investment Board (PIB) / Expenditure Finance Committee approvals and

• Cabinet approval (where relevant)

Approvals

Dredging

Commercialization

Quarter

Initial 25% 25% 25% 25%

Initial 25% 25% 25% 25%

Physical progress

Financial progress

Land acquisition

PHASE 1