The presentation describes the present situation of infrastructure relating transportation of key steel making raw material and steel product in India and the issues and challenges related to that. It also finds out solutions to those problems and analyses various projects and their current status which are aimed at solving the transport infrastructure issues in India.

1. Infrastructure Scenario of Iron & Steel
Transportation in India
Gouranga Sen
Geovale Services
Conference on Raw Materials Security for Iron & Steel, by FIMI, Goa, 6-7 Nov. 2015

2. 1
Geovale Services
Due
Diligence
Exploration
Management
Resource
Modeling
Prefeasibility
Studies
Infrastructure
Assessment
Mineral
Analytics
Hydro-
geology &
Geotechnical GIS &
Remote
Sensing
We Provide Solutions for the Global Mineral Exploration and Mining Industry

3. 2
Agenda
Infrastructure Issues in India
Possible Solutions
Case Studies - Thriveni

4. Indian Steel Industry: Standing Tall Amid
Crisis
3
-12.8
-10.4
-5.4
-3.5 -3
-1.3
0.3
4.8 7.3
10.2
0.5
-1
3.1
-2
1.3 0.7
2.3
4.1
7.6
1.1
-15
-10
-5
0
5
10
15
Brazil
Russia
Japan
China
USA
SKorea
ermany
Mexico
India
Turkey
2015 (f)
2016 (f)
Steel Demand Forecasts
Source: WSA

5. 4
Domestic Demand to Support India’s
Steel Production Growth
176
273
298
339
0
50
100
150
200
250
300
350
400
2013-14 2025-26 2032-33
GDP @ 6.5% Growth
GDP @ 7.0% Growth
GDP @ 8.0% Growth
185
287
314
357
0
50
100
150
200
250
300
350
400
2013-14 2025-26 2032-33
Forecast of Finished Steel Demand (Mt) Forecast of Crude Steel Production (Mt)
Crude steel production is projected to hit 180-190 Mt in next 10 years from 87 Mt now
Source: Long Term Perspectives for Indian Steel Industry

6. 5
Huge Amount of Raw Material
Requirement for Transportation
Raw Material Requirement
At 7% GDP 2016-17 2025-26
Iron Ore 203 392
Coking Coal 89 173
Non-coking coal 27.8 66.2
PCI 4.5 9
Met Coke (including captive) 67.4 89.2
At 8% GDP 2016-17 2025-26
Iron Ore 215.4 452
Coking Coal 94.2 200
Non-coking coal 30.4 78
PCI 4.8 10.4
Met Coke (including captive) 72.5 153.9
Even if we can manage to augment mining or sourcing of this huge quantity of raw
material, having infrastructure to transport it will a big challenge
Source: Long Term Perspectives for Indian Steel Industry

7. 6
Steel Supply Chain
Iron Ore, Thermal
Coal, Other Material
Coking Coal
Warehouse
Customers
Smaller Warehouse
CustomersShip-Rail
Rail-Road Major Rail – 95%
Minor Road – 5%
Major Road – 98%
Minor Rail – 2%
Road
Inbound Logistics Outbound Logistics

8. 7
Major Mode of Transportation for Iron
Ore & Coal
Slurry Pipe
Line
Railways
Roadways
Shipping
Inland
Waterways
Iron Ore Coal

9. • Grossly overstretched
• Congestion and shortage of capacity in all transport sectors
• Low speed of transportation at higher cost
• Peculiar usage structure
8
India’s Transport Infrastructure
57%
37%
22%
0%
10%
20%
30%
40%
50%
60%
India USA China
36%
48% 47%
0%
10%
20%
30%
40%
50%
60%
India USA China
Goods Transportation by Rail Goods Transportation by Road
Source: 12th Five Yea Plan

10. • Indian Railways is the fourth largest railway network in the world
in terms of route kilometers (64,460 km in 2013)
• Most commonly used mode for iron ore
• After coal, iron ore is the second largest commodity for rail
transportation (13% of total)
• 124 Mt of iron ore was moved in 2013-14
9
Rail Transportation
0
200
400
600
800
1000
1200
2010-11 2011-12 2012-13 2013-14
Commodities Carried by Indian Railway (Mt)
Other Commodities
Limestone & Dolomite
Iron & Steel
Fertilisers
Foodgrains
Mineral Oils
Cement
Iron Ores
Coal
Source: Railway Statistics

11. 10
Country-Wise Comparison of Rail
Infrastructure
16.2 16.2 15.7
14.0
12.0 10.7
0.0
5.0
10.0
15.0
20.0
Wagon Length (meters)
185
154
87
71 63
38
0
50
100
150
200
Number of Wagons per Train
37
32
26 25
20 20
0
10
20
30
40
Average Train Speed (km/hr)
Source: Johncke, 2012
3.00
2.50
1.05 1.05
0.68 0.60
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Max Train Length (km)

12. 11
Country-Wise Comparison of Rail
Infrastructure
0%
20%
40%
60%
80%
100%
0
20
40
60
80
100
120
140
USA
Canada
Poland
Russia
India
China
WagonWeight(t)
Gross Payload Ratio
12.4
10.6
3.0 2.7 3.3
0.4
2.4 2.4
4.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
UP BNSF NS CNR CPR PKP RZD IR CR
US Canada PollandRussia India China
1.000tkm/wagonp.a.
2.1
1.5
2.2 2.3
1.0
0.6
0.8
0.5
0
0.5
1
1.5
2
2.5
India China Russia USA
Freight Yield US
Cents/Total Tonne-KM at
nominal prices
Freight Yield US
Cents/Total Tonne -KM
adjusted for PPP (India=1)
Comparison of Wagon Weight and Payload to Gross Weight for Select Countries
Tariff structure in Railways is seriously distorted
Source: World Bank (2012)
Source: Johncke, 2012

13. 12
Issues in Rail Transportation
• Lower Haulage capacity
• Low current axle load ~22.82
• Low tare weight to pay load ratio = 1: 2.7
• High lead time
• Restricts quantity hauled
• Sharing of railway line for both passenger
and goods
• Cross subsidizing freight earnings
• Frequent changes in rail freight
• High punitive charges for overloading
• Lack of rail connectivity to ports
• Slow pace of implementation of rail projects
• Delays and congestions for
goods traffic
• Exorbitantly high logistic
cost by rail
• Constraint for long term
planning
• Under loading of rakes
• Loss due to dead freight
payment
• Forced use of road alternative

14. • 33 lakh Km. long road network – 2nd
largest in the world
• Carries about 65 % of all freight and 80 %
of passenger traffic
• Road networks in India consists of (i)
national highways (NHs), (ii) state
highways (SHs), (iii) major district roads
(MDRs) and (iv) rural roads (RRs)
• National Highways account for only about
1.7 % of the Road Network but carry
about 40 % of traffic
• Only 23% of their total length is wider
than two lanes
13
Road Transport Infrastructure

15. 14
Challenges in Road Transport
• Narrow and congested highways
• Poor surface quality
• Under funded road maintenance
• Weak, narrow, and distressed bridges/
• culverts
• Low avg. speed of 30-40
kmph
• High cost of vehicle
maintenance
• High transport cost
• Dispersed fleet ownership
• Lack of professionalism
• Lack of access to cheap credit for
investment
• Inefficiencies in material
carrying
• High lead time and cost
• Insufficient availability of
trucks at times

16. 15
Port Infrastructure
China: Province-wise GDP per Capita Ranking India: State-wise GDP per Capita Ranking
Top 20 Top 11-20 Others Top 20 Top 11-20 Others
Parameters China India
Port Capacity 30x x
Costal GDP 3x x
Share of waterways in domestic transport 25-26% 2-3%
Logistics cost as % of manufacturing GDP x 3x
Source: EIU, National Bureau of Statistics, State Information, Analyst Reports, Secondary Research, OECD, IPA, World Bank Report

17. 16
Industries with Strong Linkages to Port
1 Includes Food, Fertilizer, Chemicals, Cement & Other Dry Bulk Cargo Types
Source: Basic Port Statistics of India, Transport Research Wing,
Government of India, 2013-14

18. • Most major ports have very high dwell time and are running at more than 90%
capacity
• Low level of mechanised loading process
• Age old infrastructure causing frequent breakdowns
• Low availability of draft to handle capesize vessels
• Poor rail connectivity in some ports like Belikeri, Karwar, Krishnapatnam
17
Issue with Port Infrastructure
• High throughput time
• High turnaround time for ships
• Slower loading rates
• Delays due to break-downs
• Port congestions
• Higher incidence of demurrage costs and overall high costs

19. 18
Agenda
Infrastructure Issues in India
Possible Solutions
Case Studies - Thriveni

20. 19
Possible Solutions - Rail
0.0
0.5
1.0
1.5
2.0
2.5
2005 2006 2007 2008 2009 2010 2011 2012
Public Investment in India
Capital Investment in China
55
60
65
70
75
80
85
90
95
100
1990 1995 2000 2005 2010 2014
India China
Rail Capacity (route kilometres, ‘000)Investment in Railways (% of GDP)
Pressing need for unprecedented capacity expansion in Railway
Source: World Bank

21. • Transport reforms are needed in pricing and fiscal areas
• Stable & realistic freight regime
• Segregation of passenger and freight traffic
• Procure or set up factory for high capacity locomotives
• Manufacture of higher axle load wagons
• Use of stainless steel wagons
• Human resource development
20
Possible Solutions - Rail

22. 21
Dedicated Freight Corridors (DFC)
Linking Ludhiana in Punjab to Dankuni in West Bengal in Eastern Corridor
and linking Mumbai and Delhi in Western Corridor
Construction of 3,338 kms of dedicated freight lines

23. 22
Dedicated Freight Corridors (DFC)
Parameters Existing On-DFC
Avg. speed 25 kmph 70 kmph
Axle loads 25 tons 32.5 tons
Track loading density 8.67 t/m 12 t/m
Train length 700 m 1500 m
Train load 4,000 t 15,000
Major Commodity Movements,
direction-wise
Major Features of DFC

24. 23
Possible Solutions - Road

25. 24
Possible Solutions - Road

26. • Port capacities to be enhanced
• Loading & unloading facilities to be
modernized & mechanized
• Synchronization between port
capacities and rail-road
infrastructure
• Regular dredging to improve drafts
to handle higher capacity vessels
• Develop transshipment hub port
near international shipping route
• Need to promote coastal shipping25
Possible Solutions - Port
Steel Scenario 2015
Steel Scenario 2020
Source: OD Study

27. 26
Sagarmala Project
Port
Modernization
Port-led
Industrial
Development
Coastal
Community
Development
Port
Connectivity
Improvement
Formulated by GoI to promote port led development of hinterland along with
integrated development of port connectivity through Road, Rail, Inland
Waterways and Coastal Shipping
1 2
34

28. 27
Port Modernization
Activities Undertaken Key Initiatives
• Port Capacity
Augmentation (FY 2015-16)
• Target: 30 projects (162.20 Mtpa additional
capacity)
• 14 projects awarded (33.15 Mtpa additional
capacity)
• Major Ports Operational
Efficiency Improvement
• 104 initiatives identified for implementation
• ~115 MMT incremental volume to be
unlocked
• Development of New Ports New sites identified: Sagar island (West Bengal),
Vadhavan (Maharashtra), Colachel
(Tamil Nadu), Tadadi/Belekeri (Karnataka)

29. 28
Port Connectivity Improvement
Activities Undertaken Key Initiatives
• Establishment of Indian Port Rail
Corporation Limited (IPRCL)
• Incorporated with equity participation of
Major Ports & RVNL
• 7 projects already tendered for
implementation
• DPR preparation initiated for 15 projects
• Origin-Destination (OD) Study for
Key Cargo Types
• Traffic scenarios for 5, 10 and 20 years
being developed
• Higher coastal shipment
Activities Undertaken Key Initiatives
• Port-led Development • Port-based Smart Cities
• Port-led Industrial Development
• Coastal Economic Zones (CEZ)
• Coastal Community Development • Skill development
• Community Development Fund
• Lighthouse tourism development
• Fisheries development projects
Port-led Development & Coastal Community Development

30. 29
Inland Waterways Transport (IWT)
• Only 0.4% cargo moved through
IWT vs. 5.6% in EU, 8.3% in US &
8.7% in China
• Environment-friendly
• Much cheaper as compared to rail
and road transportation
• Goa is the only significant user of
IWT for iron ore movement
• Efforts to be made to develop
adequate Least Assured Depth
(LAD) for commercial movement
of cargo
• Build more IWT terminals and link
them with rail/road
• Increase bridge height to improve
vertical clearance

31. 30
Slurry Pipeline
• Environment friendly - do
not cause noise, dust
pollution or negative visual
impacts
• Ease of long distance
transportation of the ultra-
fine concentrate
• Almost zero wastage of raw
material
• High availability, low
maintenance requirement
and minimum requirement
of land
• Crippled by disruption from
naxalite attacks

32. 31
Agenda
Infrastructure Issues in India
Possible Solutions
Case Studies - Thriveni

33. 32
Thriveni Earthmovers
Thriveni has over 20 years
extensive expertise in Mining &
Crushing of Minerals like Iron Ore,
Copper, Coal, Bauxite, Lignite, Blue
Metal, Limestone, Granite, Quartz
and Armour rocks for Break water
Construction.
Collectively, Thriveni is working as
MDO for 40 MTPA Environmental
clearance capacity for various
esteemed clients.
Turnover of 225 Million USD
during 2013-14.

34. 33
MDO Iron Ore
• Largest iron ore MDO in India
• Over 10 years of operation in
Iron ore
• + 40 Mtpa capacity
• + 1 Bt Reserve
• 8 operating mines

35. 34
Mine Development and Operation
• Mine Planning and Engineering
design
• Equipment Supply and maintenance
• OB removal, Ore extraction and
Transportation
• Quality control and production
scheduling
• Inventory management
• Mine safety,training,workforce
management
• Environment and Community
Management

36. 35
Indonesia Coal Operation
• Thermal coal mining operation in
Jambi in South Sumatra,
Indonesia, since 2010
• 2 Mtpa, expanding to 5 Mtpa –
Open pit operations
• + 500 staff in Thriveni’s coal
mining projects
• Coal exploration (including
drilling)
• Coal processing, stockpiling &
transportation

37. 36
Infrastructure Construction
• In-house infrastructure
construction and management
capability
• Freight infrastructure management
(road and river barging)
• Deep water loading
• Export
• Breakwater construction (for Indian
Navy with Hoch tief (Germany)
• Planned construction of 24 Mtpa
slurry pipe line for 240 kms to port
in Odisha (Feasibility Completed)

38. 37
Thriveni Road Projects: NH 215 – From
Bhadrasahi to Gandhalpada
• Length – 18.29 km
• Location - Joda Circle in the District of Keonjhar
• Project Cost – Rs.10 Cr.
Within one year 2009-10, Thriveni reconstructed the stretch of road with a 7 mtr
width and the additional width ( 2 mtrs)of the road.
In spite of millions of tonnes of Iron Ore passing through the stretch it still is in
excellent condition

39. 38
Thriveni Road Projects: Odisha
Bamebari PS to Kalimati
This road caters to the total dispatching from
Unchabali &Balda and other Mines to the
nearby railway sidings and distant end user
plants, of more than 55,000 tonnes per day
NayagarhChowk to Chadakmara Chowk
through Jalpaposi & Unchabali (Circular)
This 6 kms road was constructed
considering the future traffic in mind. The
huge surge in mineral transporting vehicles
to the sidings will have an alternate way of
returning to the mine head at Unchabali
&Balda through the above road

40. 39
Thriveni Road Projects: Nayagarh
Railway Siding ( Ring Road)
A ring road to cater to the one way traffic inside the Nayagarh Railway siding
has been constructed by Thriveni Earthmovers Pvt Ltd, so that loaded
vehicles arriving at the Siding don’t have to take the same route to come
back but will have a passage to come out after unloading to reach the main
road. The cost of constructing this 1.5kms stretch is 2.5 crores.

41. 40
Thriveni Road Projects: Approach Roads
to Railway Sidings
Constructed quality roads at Banspani (180 mtrs), Jaroli (300mtrs), Nayagarh (200
mtrs) Railway sidings. These sidings cater to the mines of Indrani Patnaik at
Unchabali, Serajuddin & Co – Balda, Kalinga Mining Corproration – Jurudi, KJS
Ahluwalia – Nuagaon and R P Sao – Guali. In addition Thriveni has taken up the work
of improving the infrastructural facilities like high mast lighting, fixed sprinklers for
dust suppression, Diesel Generator Sets and other facilities at these siding

42. 41
Quick Dispatch System
This system was brought about to avoid fines imposed by the State Govt on
overloading of trucks, tippers beyond the allowed quantity. In this system excavators
placed on top of a structure takes out or puts in the required quantity to get the
exact permitted quantity to be dispatched in tipper/truck. This has saved huge time
lost earlier due to manual adjustment.

43. 42
Transportation at Thriveni Indonesia
Barges of 220 feet with 2,500 MT to 3,000 MT carrying capacity at 2.5 meter draft
(water level) are used to transport coal from mines in Jambi (PT. Minemex Indonesia)
to Port at Talangduku which is 145 Nautical Miles distant. Two number of owned
barges and hired 8 number of Barges are used.
Barges of 300 feet with 8,000 MT to 10,000 MT capacity are also being used from
Port to Mother Vessel Anchorage at Muara Sebak which is 100 Nautical miles away.

44. 43
Conclusion
Efficient
Sustainable
Economical
Safe
Reliable
Environme
nt Friendly
Integrated
Approach
0
Progressive
Regulations
Timely
Execution
Heightened
Efficiency
GOAL STRATEGY

45. 44