Inland water transport is the future logistics dimension


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Inland water transport is the future logistics dimension

  1. 1. INLAND WATER TRANSPORT ISTHE FUTURE LOGISTICSDIMENSION OF INDIA Presenting By Mukesh Agrawal¹, Shikha Agarwal² University of Petroleum & Energy Studies, Dehradun
  2. 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. 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. 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. 5. Expenditure pattern 8thPlan • Rs 33 Cr 9thPlan • Rs 151 Cr10thPlan (4 years) • Rs 281 Cr 2006-07 • Rs 105 Cr 2007-2008 • Rs 80 Cr
  6. 6. CARGO MOVBEMENT FOR NW-1, 2 & 3,2004-05 to 2007-08 Type of Cargo movedSTRETCH 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, packedThe 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, buildingNW-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 3,475,205SUB 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. 7. National Waterways1.) 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 19883.) National Waterway–3 Kottapuram-Kollam sector of West Coast canal with Champakara & Udyogmandal canals- 205km Declared as National Waterway in 1993
  8. 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. 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. 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. 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. 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. 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. 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. 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. 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://