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INLAND WATER TRANSPORT IS
THE FUTURE LOGISTICS
DIMENSION OF INDIA
     Presenting By
     Mukesh Agrawal¹, Shikha Agarwal²
     University of Petroleum & Energy Studies,
     Dehradun
Introduction
   Inland water transport has been considered as cost effective, relative
    fuel efficient, environment friendly and more employment generating
    mode of transport.
   A number of countries are now taking initiative to make better use of
    the existing capacity and making investment in IWT.
   IWT is a good option for movement of bulk cargo like coal, steel,
    cement, POL, fertilizers, food grains, stone chips, project cargo, edible
    oil, ODC, silica sand etc
   IWT developed well in British India; suffered in 20th century when
    focus shifted to rail and road modes
   Today India has an extensive network of rivers, canals, creeks etc. of
    about 14500 kms, of which 5700 kms are navigable with mechanized
    vessels
Introduction….
   IWAI–the infrastructure provider, developer & regulator was set
    up in October1986
   Only National Water ways come under the purview of Central
    Govt./IWAI
   Other waterways are in the domain of respective State
    Governments
   Goa, West Bengal, Assam, Mumbai, Kerala have organized
    movement of cargo
   Cargo movement by IWT showing increasing trend:55.82 million
    tonne in 2007 08 from 32.48 million tonnes in 2003-04
   How ever, this is just 0.34% of the total inland cargo of about
    1000 btkm!!
   Target of about 2% by 2025
Introduction….
   Several development projects aimed at enhancement of IWT
    infrastructure and operation are underway not only in the European
    and Western countries but also in Asia countries like
    China, Myanmar, Bangladesh, and India.
    In last five years movement of cargo by IWT mode in organized
    sector
   Transport     based    on     inland waterways (or inland water
    transport, IWT)—rivers, canals, lakes, etc. and also overlapping
    coastal shipping in tidal rivers—constitutes 20% of the transport
    sector in Germany (WB 2005) and 32% in Bangladesh
   It continues to be a significant focus area for investments, such as an
    Rs 300 crore investment planned by the Asian Development Bank
    (ADB) (Indian Infrastructure 2004).
Expenditure pattern


     8thPlan          • Rs 33 Cr
     9thPlan          • Rs 151 Cr
10thPlan (4 years)    • Rs 281 Cr
    2006-07           • Rs 105 Cr
   2007-2008          • Rs 80 Cr
CARGO MOVBEMENT FOR NW-1, 2 &
        3,2004-05 to 2007-08
                                                                                   Type of Cargo moved
STRETCH                   2004-05       2005-06       2006-2007     2007-08
                                                                                  Cement, General cargo,
NW-1               MT     887,328       1,001,450     1,317,387     1,497,964     rice, wood logs, packed
The Ganga          TKM    311,882,762   410,880,280   580,317,191   709,153,891   and bulk edible oil,
                   BTKM   0.312         0.411         0.580         0.709         petroleum oil, lubricants,
                                                                                  fly ash , pulses, stone
                                                                                  chip & iron dust


                                                                                  Cement,            building
NW-2               MT     810,145       804,401       1,086,026*    1,304,114*    Materials,       Fertilizer,
The Brahmaputra    TKM    38,093,094    32,160,989    172,769,869   42,236,249    Petro coke, food grain,
                   BTKM   0.038         0.032         0.173         0.042         coal, plant & machinery,
                                                                                  general cargo, etc inter
                                                                                  district & interstate cargo
                                                                                  & HSD

                                                                                  Sulphur, rock, phosphate,
NW -3              MT     1,158,783     1,172,889     1,022,776     673,127       liquefied ammonia, zinc,
West Cost Canal    TKM    15,377,312    16,923,544    14,936,770    8,872,101     phosphoric acid gas,
                   BTKM   0.015         0.017         0.015         0.009         furnace     concentrated,
                                                                                  petroleum product, zinc
                                                                                  & drinking water etc


                   MT     2,856,256     2,978,740     3,426,189     3,475,205
SUB Total in NWs   TKM    365,353,168   459,964,813   768,023,830   760,262,241
                   BTKM   0.365         0.460         0.768         0.760


                                          Source -IWAI local offices from IWT operators
National Waterways
1.) National Waterway–1
  The Ganga- Bhagirathi- Hooghly River from Haldia to Allahabad –
  1620 km.
  Declared as National Waterway in 1986.
2.) National Waterway–2
  The Brahmaputra from Dhubri to Sadiya – 891 km
  Declared as National Waterway in 1988
3.) National Waterway–3
  Kottapuram-Kollam sector of West Coast canal with   Champakara &
  Udyogmandal canals- 205km
  Declared as National Waterway in 1993
National Waterways…

4.) Proposed National Water Ways (04)
 Kakinada-Puducherry Canals integrated with rivers Godavari and
  Krishna , Length-1095km Development cost-Rs 542cr (at2002prices)


5.) Proposed National Waterway (No 5)
  East Coast Canal with Brahmaniriver & Mahanadidelta , Length-
  623km,Developmentcost-Rs 1526cr (at2002prices)


6.) Proposed National Waterway (No 6)
  River Barak,     Length-121   km,   Development   cost-Rs   46cr
  (at2002prices)
What are the Advantages of IWT?

   Cargo transportation to the north east through Sunderbans-
    Bangladesh-NW-2 waterway system and Sunderbans- Bangladesh-
    Meghna- Barak waterway system are the shortest as compared to rail
    and road networks.
   During flood season, when other modes of transport are not
    in operation, only IWT mode is the linking route for the NE region to
    the rest of the country. Food grains and other basic commodities are
    being taken to the NE region only through IWT mode during flood
    season.
   Bulk commodities and over dimensional cargo (for erection of
    plants, projects etc) can be easily taken through IWT mode to
    various destinations in the NE after its import at Kolkata/ Haldia ports.
What are the Advantages of IWT?

   A visible modal shift in cargo transportation to IWT in the region. It is
    expected that the projected cargo of 6 million ton-km will be moved
    through NW-2 by 2020 AD.
   Additional employment generation of 27,047 is expected by 2020 AD
    which corresponds to Rs 0.9 million/ day.
   IWT will develop as an alternative mode of transport- the
    development will make the river way worthy for safe and smooth
    operation of cargo movement.
   Moving freight through barges helps in reducing the level
    of congestion on road and rail tracks.
   As it is environment friendly, it creates less noise pollution and
    reduces pollutants levels in the air thereby reducing expenditure
    on medical aid.
What are the Advantages of IWT?...

   The development also boost up the social development of
    the hinterland- the expected economic yield of investment is about
    15%
   IWT advantages will ensure minimum human loss as against
    frequent accident on rail and roads.
   Proper bandalling and channel maintenance will prevent soil
    erosion and siltation of rivers, provide better quality of water
    and ensure biodiversity in the area.
   Development of tourism circuits - Guwahati- Kaziranga via
    Tezpur, Tezpur- Singri-Viswanath, and Kaziranga- Jorhat (Neamati)
    Sibsagar.
   Increase in trade and commerce
Challenges for IWT

   Measures to increase cargo movement through IWT from 0.3 % to
    2% (7times) by the year 2025


   Limited number of IWT vessels suitable for operation on NW1 &
    NW2 available


   Measures for providing an impetus to IWT vessel construction
    activity in India


   Measures for optimum utilization of infrastructure created on
    existing NWs


   Development of NW 4 & 5 proposed in the next eight-ten years
Opportunities for IWT

   Private Sector needs to chip in with investments for overcoming scarcity
    of IWT vessels

   About 40 barges of 1500 t capacity will be required for NTPC project

   Movement of steel to NE states, POL, cement, edible oil, fertilizers, food
    grains etc on NW 1, NW 2 & Indo – Bangladesh Protocol route may
    require another 60 vessels

   Vessels can be bought from abroad – Bangladesh - at cheaper prices

   Multi-modal logistics solution alone can lead to economic growth

   IWT is an emerging field – pioneers will reap rich rewards
Conclusion:

   If the inland waterways have to emerge as vibrant and
    flourishing centre’s for fostering large scale cargo movements and
    commercial use, a number of steps need to be taken. Some of these
    are providing periodic dredging, river training, night navigation
    facilities, a minimum LAD of 2 meters, development of
    berthing facilities with mechanized horizontal and vertical cargo
    handling at reasonable cost and inter-modal linkages to provide
    rapid access and egress to truck traffic at terminals. Furthermore
    provision of storage, bunkering and repair facilities will not only
    enhance the commercial value of the terminals but will also provide
    sufficient value addition in order to make the IWT terminals an
    eminently economically viable option.
References
   Annual Report 2007-08 of Inland Waterways Authority of India
   CIWTC (2004b), Fixed Schedule Sailing National Waterway 1; A
    Report, Central Inland Water Transport Corporation, Kolkata.
   Raghuram, G. (2004), Integrating Coastal Shipping with National
    Transport Network in India, Proceedings of the International Association
    of Maritime Economists, Annual Conference 2004, vol. II, School of
    Maritime Business and Management, Dokuz Eylul Publications, Izmir.
   Rahman, Mushfequr (1994), ‘National Transport System of Bangladesh’,
    Asian Transport Journal, November, Asian Institute of Transport
    Development, New Delhi.
   Rangaraj, N. and G. Raghuram (2005a), Inland Water Transport, Research
    paper commissioned by the Asian Development Bank and the Department
    of Economic Affairs, Indian Institute of Management, Ahmedabad and
    Indian Institute of Technology, Bombay.
References..

   Rangaraj, N. and G. Raghuram (2005b), Systems Perspectives on
    Inland Water Transport for Freight Movement, presented at the
    37th annual meeting of the Operational Research Society of India,
    Ahmedabad, January 8–11.
   SRFDCL (1998), Sabarmati Riverfront Development,         Sabarmati
    Riverfront Development Corporation, Ahmedabad, May.
   TRW (2001), Statistics of Inland Water Transport 1999-2000,
    Transport Research Wing, Ministry of Shipping, Government of India,
    New Delhi.
   TRW (2002), Statistics of Inland Water Transport 2000-01,
    Transport Research Wing, Ministry of Shipping, Government of India,
    New Delhi.
   WB (2005), China Inland Waterways Project, The World Bank, http://
    www.worldbank.org/transport/ports/iwt_dev.htm

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IWT FUTURE OF INDIA LOGISTICS

  • 1. INLAND WATER TRANSPORT IS THE FUTURE LOGISTICS DIMENSION OF INDIA Presenting By Mukesh Agrawal¹, Shikha Agarwal² University of Petroleum & Energy Studies, Dehradun
  • 2. Introduction  Inland water transport has been considered as cost effective, relative fuel efficient, environment friendly and more employment generating mode of transport.  A number of countries are now taking initiative to make better use of the existing capacity and making investment in IWT.  IWT is a good option for movement of bulk cargo like coal, steel, cement, POL, fertilizers, food grains, stone chips, project cargo, edible oil, ODC, silica sand etc  IWT developed well in British India; suffered in 20th century when focus shifted to rail and road modes  Today India has an extensive network of rivers, canals, creeks etc. of about 14500 kms, of which 5700 kms are navigable with mechanized vessels
  • 3. Introduction….  IWAI–the infrastructure provider, developer & regulator was set up in October1986  Only National Water ways come under the purview of Central Govt./IWAI  Other waterways are in the domain of respective State Governments  Goa, West Bengal, Assam, Mumbai, Kerala have organized movement of cargo  Cargo movement by IWT showing increasing trend:55.82 million tonne in 2007 08 from 32.48 million tonnes in 2003-04  How ever, this is just 0.34% of the total inland cargo of about 1000 btkm!!  Target of about 2% by 2025
  • 4. Introduction….  Several development projects aimed at enhancement of IWT infrastructure and operation are underway not only in the European and Western countries but also in Asia countries like China, Myanmar, Bangladesh, and India.  In last five years movement of cargo by IWT mode in organized sector  Transport based on inland waterways (or inland water transport, IWT)—rivers, canals, lakes, etc. and also overlapping coastal shipping in tidal rivers—constitutes 20% of the transport sector in Germany (WB 2005) and 32% in Bangladesh  It continues to be a significant focus area for investments, such as an Rs 300 crore investment planned by the Asian Development Bank (ADB) (Indian Infrastructure 2004).
  • 5. Expenditure pattern 8thPlan • Rs 33 Cr 9thPlan • Rs 151 Cr 10thPlan (4 years) • Rs 281 Cr 2006-07 • Rs 105 Cr 2007-2008 • Rs 80 Cr
  • 6. CARGO MOVBEMENT FOR NW-1, 2 & 3,2004-05 to 2007-08 Type of Cargo moved STRETCH 2004-05 2005-06 2006-2007 2007-08 Cement, General cargo, NW-1 MT 887,328 1,001,450 1,317,387 1,497,964 rice, wood logs, packed The Ganga TKM 311,882,762 410,880,280 580,317,191 709,153,891 and bulk edible oil, BTKM 0.312 0.411 0.580 0.709 petroleum oil, lubricants, fly ash , pulses, stone chip & iron dust Cement, building NW-2 MT 810,145 804,401 1,086,026* 1,304,114* Materials, Fertilizer, The Brahmaputra TKM 38,093,094 32,160,989 172,769,869 42,236,249 Petro coke, food grain, BTKM 0.038 0.032 0.173 0.042 coal, plant & machinery, general cargo, etc inter district & interstate cargo & HSD Sulphur, rock, phosphate, NW -3 MT 1,158,783 1,172,889 1,022,776 673,127 liquefied ammonia, zinc, West Cost Canal TKM 15,377,312 16,923,544 14,936,770 8,872,101 phosphoric acid gas, BTKM 0.015 0.017 0.015 0.009 furnace concentrated, petroleum product, zinc & drinking water etc MT 2,856,256 2,978,740 3,426,189 3,475,205 SUB Total in NWs TKM 365,353,168 459,964,813 768,023,830 760,262,241 BTKM 0.365 0.460 0.768 0.760 Source -IWAI local offices from IWT operators
  • 7. National Waterways 1.) National Waterway–1 The Ganga- Bhagirathi- Hooghly River from Haldia to Allahabad – 1620 km. Declared as National Waterway in 1986. 2.) National Waterway–2 The Brahmaputra from Dhubri to Sadiya – 891 km Declared as National Waterway in 1988 3.) National Waterway–3 Kottapuram-Kollam sector of West Coast canal with Champakara & Udyogmandal canals- 205km Declared as National Waterway in 1993
  • 8. National Waterways… 4.) Proposed National Water Ways (04) Kakinada-Puducherry Canals integrated with rivers Godavari and Krishna , Length-1095km Development cost-Rs 542cr (at2002prices) 5.) Proposed National Waterway (No 5) East Coast Canal with Brahmaniriver & Mahanadidelta , Length- 623km,Developmentcost-Rs 1526cr (at2002prices) 6.) Proposed National Waterway (No 6) River Barak, Length-121 km, Development cost-Rs 46cr (at2002prices)
  • 9. What are the Advantages of IWT?  Cargo transportation to the north east through Sunderbans- Bangladesh-NW-2 waterway system and Sunderbans- Bangladesh- Meghna- Barak waterway system are the shortest as compared to rail and road networks.  During flood season, when other modes of transport are not in operation, only IWT mode is the linking route for the NE region to the rest of the country. Food grains and other basic commodities are being taken to the NE region only through IWT mode during flood season.  Bulk commodities and over dimensional cargo (for erection of plants, projects etc) can be easily taken through IWT mode to various destinations in the NE after its import at Kolkata/ Haldia ports.
  • 10. What are the Advantages of IWT?  A visible modal shift in cargo transportation to IWT in the region. It is expected that the projected cargo of 6 million ton-km will be moved through NW-2 by 2020 AD.  Additional employment generation of 27,047 is expected by 2020 AD which corresponds to Rs 0.9 million/ day.  IWT will develop as an alternative mode of transport- the development will make the river way worthy for safe and smooth operation of cargo movement.  Moving freight through barges helps in reducing the level of congestion on road and rail tracks.  As it is environment friendly, it creates less noise pollution and reduces pollutants levels in the air thereby reducing expenditure on medical aid.
  • 11. What are the Advantages of IWT?...  The development also boost up the social development of the hinterland- the expected economic yield of investment is about 15%  IWT advantages will ensure minimum human loss as against frequent accident on rail and roads.  Proper bandalling and channel maintenance will prevent soil erosion and siltation of rivers, provide better quality of water and ensure biodiversity in the area.  Development of tourism circuits - Guwahati- Kaziranga via Tezpur, Tezpur- Singri-Viswanath, and Kaziranga- Jorhat (Neamati) Sibsagar.  Increase in trade and commerce
  • 12. Challenges for IWT  Measures to increase cargo movement through IWT from 0.3 % to 2% (7times) by the year 2025  Limited number of IWT vessels suitable for operation on NW1 & NW2 available  Measures for providing an impetus to IWT vessel construction activity in India  Measures for optimum utilization of infrastructure created on existing NWs  Development of NW 4 & 5 proposed in the next eight-ten years
  • 13. Opportunities for IWT  Private Sector needs to chip in with investments for overcoming scarcity of IWT vessels  About 40 barges of 1500 t capacity will be required for NTPC project  Movement of steel to NE states, POL, cement, edible oil, fertilizers, food grains etc on NW 1, NW 2 & Indo – Bangladesh Protocol route may require another 60 vessels  Vessels can be bought from abroad – Bangladesh - at cheaper prices  Multi-modal logistics solution alone can lead to economic growth  IWT is an emerging field – pioneers will reap rich rewards
  • 14. Conclusion:  If the inland waterways have to emerge as vibrant and flourishing centre’s for fostering large scale cargo movements and commercial use, a number of steps need to be taken. Some of these are providing periodic dredging, river training, night navigation facilities, a minimum LAD of 2 meters, development of berthing facilities with mechanized horizontal and vertical cargo handling at reasonable cost and inter-modal linkages to provide rapid access and egress to truck traffic at terminals. Furthermore provision of storage, bunkering and repair facilities will not only enhance the commercial value of the terminals but will also provide sufficient value addition in order to make the IWT terminals an eminently economically viable option.
  • 15. References  Annual Report 2007-08 of Inland Waterways Authority of India  CIWTC (2004b), Fixed Schedule Sailing National Waterway 1; A Report, Central Inland Water Transport Corporation, Kolkata.  Raghuram, G. (2004), Integrating Coastal Shipping with National Transport Network in India, Proceedings of the International Association of Maritime Economists, Annual Conference 2004, vol. II, School of Maritime Business and Management, Dokuz Eylul Publications, Izmir.  Rahman, Mushfequr (1994), ‘National Transport System of Bangladesh’, Asian Transport Journal, November, Asian Institute of Transport Development, New Delhi.  Rangaraj, N. and G. Raghuram (2005a), Inland Water Transport, Research paper commissioned by the Asian Development Bank and the Department of Economic Affairs, Indian Institute of Management, Ahmedabad and Indian Institute of Technology, Bombay.
  • 16. References..  Rangaraj, N. and G. Raghuram (2005b), Systems Perspectives on Inland Water Transport for Freight Movement, presented at the 37th annual meeting of the Operational Research Society of India, Ahmedabad, January 8–11.  SRFDCL (1998), Sabarmati Riverfront Development, Sabarmati Riverfront Development Corporation, Ahmedabad, May.  TRW (2001), Statistics of Inland Water Transport 1999-2000, Transport Research Wing, Ministry of Shipping, Government of India, New Delhi.  TRW (2002), Statistics of Inland Water Transport 2000-01, Transport Research Wing, Ministry of Shipping, Government of India, New Delhi.  WB (2005), China Inland Waterways Project, The World Bank, http:// www.worldbank.org/transport/ports/iwt_dev.htm