Paradip Port Trust Paradip Port, Odisha - 754 142 · largely manual intensive ... Paradip Port is located ... loaded by using the empty rakes generated in the Mechanical Coal Handling

Prefeasibility Report on Area Development of Multimodal Logistic Park & Industrial Park for Smart Industrial Port City (SIPC) in Paradip Port & Debottlenecking efficiency by Mechanization of existing operational berths in Port Master Plan Paradip Port Trust

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Pre- Feasibility Report

Area Development of Multimodal Logistic Park & Industrial Park for Smart Industrial Port City (SIPC)

in Paradip Port & Debottlenecking efficiency by Mechanization of existing operational berths

in Port Master Plan.

Paradip Port Trust Paradip Port, Odisha - 754 142

March, 2017


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Chapter 1 Executive Summary

Ministry of Urban development-Government of India through its Smart City Initiative, the objective is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of 'Smart' Solutions. Paradip port has nearly doubled its capacity in the last decade. While the capacity addition has been impressive, the port needs to ramp up its capacity in coming years to accommodate future traffic. The Maritime Agenda by the Ministry of Shipping projects the traffic at Paradip port to reach 120 million tonnes by 2020. The emergence and rapid development of industries in Paradip’s hinterland is driving the need to expedite capacity creation at Paradip port. Strong industry fundamentals and Government’s impetus on creating a favorable regulatory environment would lead to establishment of new units and expansion of existing units in the future. Paradip Port is located at a Latitude 20o15’ 55.44” N and Longitude 86o 40’ 34.62” E and situated at a distance of 210 nautical miles from Kolkata and 260 nautical miles from Visakhapatnam – the other two major ports in the eastern region of the country. Paradip is well connected from Bhubaneswar and Cuttack by National Highway No.5A and State Highway No.12. It is located at a distance of about 125 km (by road) from Bhubaneswar Airport and 94 km (by road) from Cuttack railway station. Area Development of Multimodal Logistic Park & Industrial park as a part of Smart Industrial Port City over an area of 700 acre & Debottlenecking of efficiency by Mechanization of existing port berths leading to increase of cargo handling from 93.6 to 144 MTPA. The harbour back up area is 2500 acre. The mechanization has been proposed keeping in mind the present cargo handling system, which is largely manual intensive and takes a very long time that reduces the overall efficiency of cargo operation. Water demand of about 51.76 MLD for the proposed SIPC will be sourced from river Mahanadi. About 212 MVA power will be required for the SIPC which will be drawn from substation of OPTCL. Land belongs to Paradip Port Trust and is being used for various port related activities such as harbour area, township area and industrial area. The proposed project changes land use and land cover (LULC) permanently. The proposed SIPC consists of industries, road network, greenbelt/green cover & township and these land features change the existing LULC in the Paradip Port area. The climate at Paradip is governed by the monsoons. In the months of June to September, the southwest monsoon occurs, followed by the north-east monsoon in October- December. The latter period is often indicated as the post-monsoon period. January-February is the winter period and March-May is usually the hot weather period.


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Smart cities have been conceived by Government of India to use latest technologies to enhance performance and well being, to reduce cost and non-renewable resource consumption, and to engage more effectively and actively with its citizens. Key smart sectors include transport, energy, healthcare, water, and waste management. A smart city is envisaged to respond faster to city and global challenges than one with simple arrangements and organization for routine life. As a part of SIPC, it is proposed to develop a Multi Modal Logistic Park(MMLP) and Industrial Park(IP) in an area of 700 Ac. in the Port. Logistics play a citadel role in the modern intelligent supply chain management. It is defined as the broad range of activities concerned with effective and efficient movement of semi-finished or finished product from one business to another or from manufacturer/distributor/retailer to the end consumer. It relates to freight transportation, warehousing material handling, protective packaging inventory control, order processing, and marketing, forecasting and other value added services. MMLP is the refined form of Logistics Park where various value added services are rendered in addition to rail/road based transportation. Water demand of about 51.76 MLD for the proposed SIPC will be sourced from river Mahanadi. The waste water generated from each zone is collected and conveyed to the proposed STP located in the respective zone. The treatment process will be basically aerobic. The STP’s are modular STP’s having a combined capacity of 28.00 MLD. Approx 115.71 TPD Municipal solid waste will be generated from the proposed SIPC. This waste will be managed through Solid waste Management Plant of Paradip Municipality. During construction phase no hazardous waste will be generated. The block costing of various components of the project is INR 486567 Lakhs. There could be multiple options and combinations of these and other variables, which will have to be worked out at the time of actual implementation and choosing the best possible option for PPT. In terms of its ability to provide modern handling facilities. It has a potential to attract customers. Considering the significant potential for export/import the project needs to be taken up on priority so as not to lose the market share to its competitors.


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Chapter 2 Introduction

2.1 Background The Sagarmala initiative is one of the most important strategic imperatives to realize India’s economic aspirations. The overall objective of the project is to evolve a model of port-led development, whereby Indian ports become a major contributor to the country’s GDP. The Sagarmala project envisages transforming existing ports into modern world-class ports, and developing new top notch ports based on the requirement. It also aspires to efficiently integrate ports with industrial clusters, the hinterland and the evacuation systems, through road, rail, inland and coastal waterways. This would enable ports to drive economic activity in coastal areas. Further, Sagarmala aims to develop coastal and inland shipping as a major mode of transport for the carriage of goods along the coastal and riverine economic centres. As an outcome, it would offer efficient and seamless evacuation of cargo for both the EXIM and domestic sectors, thereby reducing logistics costs with ports becoming a larger economy. 2.1 Nature of the Project 2.2 Need of the Project Ministry of Urban development-Government of India through its Smart City Initiative, the objective is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of 'Smart' Solutions. Paradip port has nearly doubled its capacity in the last decade. While the capacity addition has been impressive, the port needs to ramp up its capacity in coming years to accommodate future traffic. The Maritime Agenda by the Ministry of Shipping projects the traffic at Paradip port to reach 120 million tonnes by 2020. The emergence and rapid development of industries in Paradip’s hinterland is driving the need to expedite capacity creation at Paradip port. Strong industry fundamentals and Government’s impetus on creating a favorable regulatory environment would lead to establishment of new units and expansion of existing units in the future. This increase in industrial production is expected to translate into 120 million tonnes of traffic at Paradip port by 2020 (Source: Maritime Agenda). At 75% capacity utilization, the international benchmark for utilization, an installed capacity of over 160 million tonnes would be required to meet this demand,


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Chapter 3 Project Description

3.1 Type of the Project The proposed project is a 3.2 Location Paradip Port is located at a Latitude 20o15’ 55.44” N and Longitude 86o 40’ 34.62” E and situated at a distance of 210 nautical miles from Kolkata and 260 nautical miles from Visakhapatnam – the other two major ports in the eastern region of the country. Paradip is well connected from Bhubaneswar and Cuttack by National Highway No.5A and State Highway No.12. It is located at a distance of about 125 km (by road) from Bhubaneswar Airport and 94 km (by road) from Cuttack railway station. It is also well connected with Broad gauge Railway network of the East coast Railway.

Figure 1 : Project Location


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3.3 Site Analysis Retrofitting of the existing balance area of PPT (excluding Port expansion area and Future port expansion area considered for the proposed. The advantages of the site are as follows: • Area readily available • No Land acquisition involved • No land development is required on immediate basis. • Less development cost involved initially • Sufficient land available for present and future planning. 3.4 Project Description Area Development of Multimodal Logistic Park & Industrial park as a part of Smart Industrial Port City over an area of 700 acre & Mechanization of existing port berths leading to capacity of cargo handling expansion from 93.6 to 144 MTPA over an area of 2500 acre The mechanization has been proposed keeping in mind the present cargo handling system, which is largely manual intensive and takes a very long time that reduces the overall efficiency of cargo operation. In order to address these problems and improve the present efficiency of cargo handling, it is necessary to mechanize the existing operational berths for unloading the vessels carrying imported cargoes like coking as well as non coking coals, limestone and flux materials etc. by using high capacity ship unloaders and then carrying the cargo through conveyor to the loading points. The stackyard is proposed to have rapid loading system fitted at the bottom for in motion loading of BOBRN as well as BOXN wagons. The location of the stack yards is such that BOBRN wagons can be loaded by using the empty rakes generated in the Mechanical Coal Handling Plant and the wagon tippler of IOHP as well as other manual unloading sidings of the port. The equipments required for mechanization are as given below:

Ship Loader

Ship unloaders

Stacker cum Reclaimer

Conveyor system

Conveyor gallery

Silo with Rapid Loading System

Stackers

Reclaimers

Track hopper

Belt feeder


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Figure 2 : Mechanization Equipment

3.5 Availability of Resources Land Multimodal Logistic Park & Industrial park as a part of Smart Industrial Port City over an area of 700 acre will be developed. The existing berths also are mechanized by installation of equipments, conveyors and cargo transporting conveyance over an area of 2500 acre. Water Water demand of about 51.76 MLD for the proposed SIPC will be sourced from river Mahanadi. Power About 212 MVA power will be required for the SIPC which will be drawn from substation of OPTCL.


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Chapter 4 Site Analysis

4.1 Connectivity Paradip Port is well connected from Bhubaneswar and Cuttack by National Highway No.5A and State Highway No.12. It is located at a distance of about 125 km by road from Bhubaneswar Airport and 94 km by road from Cuttack railway station. 4.2 Land use Land belongs to Paradip Port Trust and is being used for various port related activities such as harbour area, township area and industrial area. 4.3 Land use Existing Land use Present Land Use Plan of Overall Port Area is as given below

Table 1 : Existing landuse

S. No. Description Area (Ha)

1 Custom Bound Harbour Area 871.95

1 Township, Industrial Zone, Storage Terminals, Railway Sidings etc.

1683.14

3 Total area 2555.09

Proposed Landuse The proposed project changes land use and land cover (LULC) permanently. The proposed SIPC consists of industries, road network, greenbelt/green cover & township and these land features change the existing LULC in the Paradip Port area. 4.4 Existing Infrastructure

There is a single corridor road network from NH5A and SH12 to the township which connects to the industrial, customs and residential areas.

There is an existing water supply network in Paradip consisting of intake, raw water transmission main, WTP, Clear water transmission and distribution main for both port town ship and port operations area.

There is no existing sewerage collection system in Paradip, including treatment at present. Sewer network has been designed for the saturated population of 2048 as per the master plan.

There is an existing length of 22 km storm water drainage in the city, which is mostly around the madhubhan area.

There is no proper existing solid waste nagement in Paradip. Only door to door collection and open dumping has been practised.


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4.5 Meteorology The climate at Paradip is governed by the monsoons. In the months of June to September, the southwest monsoon occurs, followed by the north-east monsoon in October- December. The latter period is often indicated as the post-monsoon period. January-February is the winter period and March-May is usually the hot weather period. Winds Monthly Wind Rose diagrams for Paradip Port are presented in The predominant wind direction during the months of March to September is South – Southwest and the highest wind speed during this period was recorded to be 18 m/s. During the period November to January the predominant wind direction changes to North-Northeast. The months of October and February are observed to be transition months, where a marked variation in the wind direction was observed. Rainfall Annual average rainfall at Paradip is about 1400 mm per annum, about 75% of which is received during the South-Western Monsoon season, i.e., between June and September. October contributes to about 8% of the annual rainfall. Temperature The mean maximum and minimum temperature were observed to be 35.96° C and 13.30° C respectively. The maximum temperature at Paradip ranges between 28.6° C and 35.8° C, while minimum temperature varies between 13.3° C to 22.5° C. Relative Humidity The average humidity ranges from nearly 84% in August to about 71% in December.


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Chapter 5 Planning

5.1 Concept Ministry of Urban development-Government of India, are developing about 100 smart cities throughout India. Various strategies of developing smart cities have been suggested by MOUD i.e. city improvement (Retrofitting the area), city renewal (Redevelopment of an area) and city extension (Green field development).Retrofitting is a concept introduced for planning in an existing built-up area to achieve Smart City objectives, along with other objectives, to make the existing area more efficient and livable. Smart cities have been conceived by Government of India to use latest technologies to enhance performance and well being, to reduce cost and non-renewable resource consumption, and to engage more effectively and actively with its citizens. Key smart sectors include transport, energy, healthcare, water, and waste management. A smart city is envisaged to respond faster to city and global challenges than one with simple arrangements and organization for routine life. As a part of SIPC, it is proposed to develop a Multi Modal Logistic Park(MMLP) and Industrial Park(IP) in an area of 700 Ac. in the Port. Logistics play a citadel role in the modern intelligent supply chain management. It is defined as the broad range of activities concerned with effective and efficient movement of semi-finished or finished product from one business to another or from manufacturer/distributor/retailer to the end consumer. It relates to freight transportation, warehousing material handling, protective packaging inventory control, order processing, and marketing, forecasting and other value added services. MMLP is the refined form of Logistics Park where various value added services are rendered in addition to rail/road based transportation. An industrial park is an area zoned and planned for the purpose of industrial development. Industrial parks are usually located on the edges of, or outside the main residential area of a city, and normally provided with good transportation access, including road and rail. PPT has potential to handle additional cargo volume but it is constrained by the low productivity. In order to improve the overall productivity and performance, the following measures are proposed in the existing harbour area/ Custom Bond Area of the Port of 2500 Ac. 5.2 Population Projection


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Paradip has a present population around 60,000. The projected population for the entire Master Plan

area (for year 2048) is as under

Residential -168670

Occupant population –30904 and

Floating – 16867 5.3 Landuse Planning Multimodal Logistic Park & Industrial park as a part of Smart Industrial Port City over an area of 700 acre will be developed. The existing berths also are mechanized by installation of equipments, conveyors and cargo transporting conveyance over an area of 2500 acre. 5.4 Infrastrusture Demand Supporting infrastructure will be developed for the proposed SIPC.

Major & Arterial roads

Water treatment & distribution facilities

Drainage & Sewerage facilities

Waste water treatment facilities

Power substation & Distribution facilities

5.5 Amenities/Facilities Residential, commercial, institutional, recreational and industrial facilities will be developed as a part of SIPC.


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Chapter 6 Proposed Infrastructure

6.1 Industrial Area Multimodal Logistic Park & Industrial park as a part of Smart Industrial Port City over an area of 700 acre will be developed. The existing berths also are mechanized by installation of equipments, conveyors and cargo transporting conveyance over an area of 2500 acre. 6.2 Residential Area Residential area will be developed over 441 acres as a part of SIPC. 6.3 Greenbelt Greenbelt will be developed over 687 acres as a part of SIPC. 6.4 Social Infrastructure Social infrastructure will be developed over 110 acres as a part of SIPC. 6.5 Connectivity Approximately 20 Km length of new roads and fly over will be developed as a part of SIPC. 6.6 Water Management Water demand of about 51.76 MLD for the proposed SIPC will be sourced from river Mahanadi. Table Estimated Water Demand of the SIPC

Sl. No.

Type of Water Gross Demand (MLD)(inclusive of 15% losses)

1 Potable Water 30.89

2 Non Potable Water 13.14

3 Gardening 4.24

4 Industrial 3.49

5 Total 51.76

The water balance diagram for the township has been prepared with zero discharge concepts. All effluent generated from industries, domestic and commercial consumers will be collected and treated appropriately and reused to meet the demand of Industries, township greeneries so that the whole township is graded as Zero Discharge establishment. The Non Potable water demand will be met with the tertiary treated water from the STP proposed. The Total net water demand in the township is estimated to be about 44 MLD and the gross water demand including the transmission, treatment and distribution losses is estimated to be 51.76 MLD. The total Potable water demand is estimated to be around 26.25 MLD and the gross Potable water demand as 30.89 MLD. The WTP capacity required is estimated to be 31 MLD, considering this, additional WTP of 25 MLD has been suggested. 5MLD of water has been kept for present Port Operations and additional 5MLD for as future Port Operations demand.


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6.7 Sewerage System The Sewerage collection system is planned according to the master plan. The demand calculations are shown in below table.

Table 2: Estimated Sewerage generation of township

Population Total sewerage Generation with 10% infiltration (MLD) Residential Working Floating

168670 30907 16867 24.8

The waste water generated from each zone is collected and conveyed to the proposed STP located in the respective zone. The treatment process will be basically aerobic. The STP’s are modular STP’s having a combined capacity of 28.00 MLD. The treated wastewater shall be used for Non potable applications and excess treated water shall be safely disposed to nearby creeks. Part of the sewage sludge will be recirculated and utilized in the treatment system. The rest will be dewatered, dried and used for gardening as manure. 6.8 Waste Management During operation phase industrial process waste management if any would be the responsibility of individual industries. Approx 115.71 TPD Municipal solid waste will be generated from the proposed SIPC. This waste will be managed through Solid waste Management Plant of Paradip Municipality. During construction phase no hazardous waste will be generated. During operation phase hazardous waste management would be the responsibility of individual industries. Prior to the commencement of production, each unit will take authorization under Hazardous & Other Waste (Management & Trans boundary Movement) Rules, 2016.


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Chapter 7 Project Schedule & Cost Estimate

7.1 Time Schedule The project execution of SIPC is divided into 3 phases.

Phase 1: 2021-2036 Phase 2: 2036 – 2046 Phase 3: 2046 onwards

The project implementation schedule of mechanization is as follows

Figure 3 : Project implementation schedule


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7.2 Project Cost The block costing of various components of the project are as given below

Table 3 : Project Cost

S.N Component Cost in Lakhs

1. Area Development for SIPC 232567

2. Mechanization of existing berths 254000

3. Total 486567

7.3 Financial Viability The financial viability of the Project has been assessed for various stress scenarios, which has been presented below

Figure 4 : Financial viability

The Project could be viable for the development on PPP basis only in case of the most optimistic situation of lowest borrowing rate, maximum FAR premium and a reduction on CAPEX by almost 20%. Since this is the most optimistic scenario, and highly unlikely, it may be concluded that the Project should not be developed on PPP basis;


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The Project is not viable by way of charging lease premium on an Upfront basis;

The only way to make Project viable for PPT is to develop the same through either EPC or Design-Build basis by having a strict control on CAPEX,reasonable FAR premium and aintaining good debt servicing track record in order to maintain the reasonable borrowing cost; and

PPT may consider implementing only certain Project components such as water supply system, waste water system, and recycled water supply system through private participation, and implement other Project components on either EPC or Design-build basis

There could be multiple options and combinations of these and other variables, which will have to be worked out at the time of actual implementation and choosing the best possible option for PPT.


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Chapter 8 Final Recommendations

The proposed Area Development of Multimodal Logistic Park & Industrial park for Smart Industrial Port City (SIPC) & Mechanization of existing operational berths by installation of equipments, conveyors and cargo transporting conveyance in Paradip Port project is technically and financially suitable to be taken up development. In terms of its ability to provide modern handling facilities. It has a potential to attract customers. Considering the significant potential for export/import the project needs to be taken up on priority so as not to lose the market share to its competitors.

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Paradip Port Trust Paradip Port, Odisha - 754 142 · largely manual intensive ... Paradip Port is located ... loaded by using the empty rakes generated in the Mechanical Coal Handling