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S. K. ShahiSecretary, IWAI

Coal Transportation by Inland Waterways

New Delhi, 10.07.2012

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

IWT in the past

2

3

150500

4000

0500

1000150020002500300035004000

Road Rail IWT

Fuel efficiency: One HP moves

Kgs

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

IWT - Advantages

Best suited for bulk cargo (coal, minerals, food-grains, fertilizers, cement, flyash etc), ODC and hazardous goods

Provides seaport - hinterland connectivityLess development & maintenance cost

compared to Railways and RoadsAll weather mode of transport Can supplement Roads and Railways Strategic importance for North Eastern Region

IWT – Advantages contd…

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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

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Other advantages of IWT mode

• Most environment friendly

•Minimal land acquisition

6

Tons of CO2 per Million Ton

-miles

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 nil7

United States 29%

Russia 20%China

14%

Australia 10%

India 8%

Germany 5%

Kazakhstan 4%

Ukraine 4%

South Africa 4%

Serbia 2%

World's coal reserves

Inland waterways & Coal transportation …….global scenario

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

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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

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• 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

Need for import of thermal coal

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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

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• 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

Waterways of India

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13

14

15

INDO – BANGLADESH PROTOCOL

ROUTES

JHA

RK

HA

ND

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 A

31

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

Hoo

ghly

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.

Bh

agirath

i R.

ORISSA

Padma R.

Myanmar (Burma)

IMPHAL

KOHIMA

NAGALAND

53

34

35

2

6

41

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Legend

Kolkata - Guwahati/Pandu ...... 1535 km

Kolkata - Karimganj...................1318 km

Dhulian-Rajshahi...........................78 km

Protocol route distances

N

BHANGA

AKHAURA

DAIKHAWA

LegendDeclared National waterwayProposed National waterwayProtocol routeRoadRailNH

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ANGTIHARA

SYLHET

P

P

P

P

P

P

P

P

P

15

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 distance

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

K

E

R

A

L

A

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Development cost- Rs 1515 cr (2010prices)

Notified on 25.11.2008

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Development cost- Rs 4210 cr (2010 prices)

Notified on 25.11.2008

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BhangaBadarpur Silcha

r

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

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Inland waterways Advantage

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

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• 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

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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

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Installed power: around 15,000 MW

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

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

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• 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

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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

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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

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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.

JITF PROPOSED SOLUTIONTransshipper at high sea

Destination

Barges on NW-1

: Jetty with grab unloaders at destination28

Logistics Solution for Coal Transportation on Haldia - Farakka stretch

NTPC Plant, Farakka

Conveyer Belt

Vessel types Vessel types

Tug and Dumb Barge

Estuarine Ship

Pushboat and Dumb Barges

River Barge

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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

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Thank you

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