Ports have economic and infrastructural impact on the nearby areas. The recently operational Dhamara Port already has given a highway and railway line between Bhadrak and Dhamara. The proposed container depot (discussed in the Dharitri article below) will be another of its initial contribution.
Following is from a Business Standard article by Jayajit Das.
“We had submitted a Rs 1,200-crore connectivity plan for minor ports to the Government of India. In response, they have roped in a Gurgaon-based consultant- Louis Burger Consulting Pvt Ltd and they have already started the feasibility study. In 3-4 months, the consultant will be submitting its report to the Central government after which we can expect flow of funds”, a top official source told Business Standard.
It may be noted that there would be a major focus on road connectivity to major ports and airports in the country in the 12th Plan.
A Planning Commission Working Group on Central Roads Sector has demanded special package for this so that it is implemented on priority basis, separating it from overall National Highway planning.
While two-lane connectivity for 50 minor ports have been envisaged at a cost of Rs 5,000 crore, the cost of constructing roads to connect 24 airports has been estimated at Rs 1,800 crore. The proposal has been approved by the Steering Committee on Transport Sector for the 12th Plan held under the Chairmanship of Plan Panel Member BK Chaturvedi.
Earlier, the Orissa government which has identified 14 potential sites for the development of minor ports had requested the Government of India to formulate a policy to provide rail and road connectivity to these ports from the national network on the lines of major ports.
The Union ministry of shipping and highways is understood to offer 50 per cent funding for road and rail connectivity for these upcoming ports.
…
The state has witnessed grounding of investment of Rs 4,262.44 crore from non-major ports in the past 10 years.
The investments have come from four minor port developers- Dhamara Port Company Ltd (DPCL), Gopalpur Port Ltd (GPL), Creative Port Development Ltd and Navayug Engineering Ltd from 2002-03 up to the end of September last year.
Update: Following is from a report in Business Standard.
… "The Ministry of shipping and highways has more or less agreed to bear 50 per cent of the cost of road and rail connectivity for the minor ports proposed in the state. The ministry had asked us to submit cost estimates for the same and accordingly, we had submitted Rs 1200-crore plan for offering road and rail connectivity for the upcoming minor ports", an official source told Business Standard.
According to the proposal, the cost of rail and road connectivity for the minor ports would be shared equally between the Centre and the port developers.
… Among the 14 locations identified by the state government for the development of ports are Dhamara, Jatadhari Muhan, Barunei Muhan, Astaranga, Bichitrapur, Chudamani and Kirtania to name a few.
The state government had already inked concession agreements with the developers for the development of ports at Dhamara, Gopalpur and Kirtania.
The Orissa government has also signed MoUs (Memorandum of Understanding) with the Hyderabad-based Navayuga Engineering Private Ltd and Aditya Birla Group for setting up of ports at Astaranga and Chudamani respectively.
Following is from a report in Business Standard.
Orissa has witnessed grounding of investment of Rs 4,262.44 crore from non-major ports in the past 10 years.
The investments have made four minor port developers- Dhamara Port Company Ltd (DPCL), Gopalpur Port Ltd (GPL), Creative Port Development Ltd and Navayug Engineering Ltd from 2002-03 up to the end of September this year. …
DPCL, a 50:50 joint venture between Tata Steel and L&T, is the biggest investor, with its investment till the second quarter of 2011-12 standing at Rs 3,570.35 crore.
The port developer, who has already begun operations, has invested Rs 762.79 crore, Rs 1,088.26 crore and Rs 1,059.40 crore in 2008-09, 2009-10 and 2010-11 respectively. In 2011-12, DPCL has invested Rs 60.45 crore till the end of September.
Gopalpur Port Ltd (GPL), a special purpose vehicle promoted jointly by Orissa Stevedores Ltd and Sara International Limited (SIL) has invested Rs 421.09 crore during 2007-08 to September-end of 2011-12. The port developer which is developing the seasonal port at Gopalpur into an all-weather port, has invested Rs 51.09 crore in 2007-08, Rs 30 crore in 2008-09, Rs 50 crore in 2009-10, Rs 40 crore in 2010-11 and Rs 250 crore in this fiscal (till September-end).
The state government has asked the port promoters to commission second phase of the port operations by March 2013. GPL has already claimed to have achieved financial closure of Rs 1,400 crore for the first stage of Phase-II of the deep sea port with the signing of loan agreement with a consortium of 11 banks.
The port at Subarnarekha river mouth, proposed by Chennai-based Creative Port Development, has seen investment of Rs 221 crore.
Creative Port Development had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006 for setting up a port with an initial capacity of 10 million tonnes per annum (mtpa) which was to be scaled up to 40 mtpa in 10 years.
The port developer had also entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.
The port at Astaranga in Puri district has witnessed an investment of Rs 50 crore over the past four years.
The port project is being taken up at a cost of Rs 6,500 crore. The initial capacity of the port will be 25 mtpa which will be eventually scaled up to 70 mtpa. The state government had entered into an MoU with Hyderabad-based Navyug Engineering Ltd on December 22, 2008.
The project proponent had signed a concession agreement with the state government in November 2010.
Following is an excerpt from a report in ibnlive.com.
The state government has started work on development of a railway corridor through Choudwar to Rourkela to allow ease of inward and outward transportation of goods from the industrial hubs and mining belts along the region.
Land acquisition for the project, the first of its kind initiative by a state government, has already been initiated by the Industrial Infrastructure Development Corporation (Idco). The project would go on ground after the land acquisition and is targeted to be completed by 2015, said Idco CMD Priyabrata Patnaik on Friday.
The corridor involves development of extensive rail and road connectivity, along with provisioning of water supply and other infrastructural facilities. The corridor would encompass two track railway lines and six-lane road passing through the industrial hubs and the coal mining belts. New industrial areas and downstream units would be developed along the corridor.
Common infrastructure facilities under the corridor would solve the problems of inward and outward transportation of goods and minerals. The stretch would pass through the heart of coal mining operations in the state, which harbours about 65 billion tonne of reserves. The coal reserves in the Talcher belt only is around 43 billion tonne.
The corridor would cover 17 large and mega-industries, along with 57 other units, through the stretch from Choudwar to Rourkela. Traffic projection on the route is given out as 8.7 million tonne.
The route would have 163 km of railway track length and 465 km on road. As many as 308 minor bridges and 77 major bridges would have to be constructed on it, said Patnaik.
Note 1: The 163 km of railway track probably refers to the Talcher-Bimlagarh segment.
Note 2: Although the above report only mentions the Choudwar-Rourkela part, in earlier documents there is mention of Paradeep-Choudwar-Rourkela industrial corridor. See for example this 2009 Business Standard report. Following are some excerpts from that.
The Orissa government plans to develop an industrial corridor running from Paradeep to Rourkela through industrial hubs like Choudwar, Talcher and Sambalpur.
Though the initial proposal was to have an industrial corridor originating from Choudwar to Rourkela, the proposal was modified to extend the corridor till Paradeep to allow inward and outward transport of goods through the Paradeep port, sources said.
… The proposed industrial corridor will be in line with the Delhi-Mumbai Industrial Corridor and is designed to pass through national highway no.42 and national highway no 5 (A).
Under the project, both road and rail corridor will be developed, which will be the backbone of the proposed project. The industrial estates and down stream units would be developed over 25 km area on both sides of the corridor.
IL&FS has been appointed as the consultant for the project and it has already submitted the pre-feasibility study report to the industry department on the project. However, the detail cost of the project is yet to be worked out yet, sources added.
…
The latest initiative of the state government follows a similar initiative to develop a common ‘rail-road-water pipeline and infrastructure corridor’ in Meramundali-Angul-Talcher-Chhendipada belt, to facilitate movement of coal in the Talcher coalfield area.
The project is estimated to cost about Rs 5000 crore including Rs 2000 crore for 2-line rail corridor and Rs 1100 crore for 4 lane road alongside it. The land width of the proposed corridor will be 300 metre which includes 60 metre for road and 20 metre for water pipeline.
The total length of the corridor is 137 kilometre which includes length of 43 number of major bridges to be constructed on this stretch. RITES Ltd has already submitted a pre-feasibility report to the state owned Industrial Infrastructure Development Corporation of Orissa Ltd. (Idco) on the project.
The project is designed to have multi-point centralised loading stations conceived along the corridor rather than individual bulb connections with a view to avoid interference or wastage of coal bearing areas. Road and water pipe alignment will run parallel to rail alignment, sources said.
It will be connected to rail line at three locations- Jharpada, Angul and Budhapanka. The common corridor will have multiple entry and exit points and no surface crossing. Besides, flyovers are proposed to avoid cross movements at junction stations.
This ‘rail-road-water pipeline and infrastructure corridor’ in Meramundali-Angul-Talcher-Chhendipada belt is projected to handle 113 million tonne coal by 2014-15. It includes 55 million tonne coal movement required by the power companies, 40.76 million tonne by steel companies and 17.22 million tonne by other industries.
Following is an excerpt from a report in Business Standard. (Thanks to Abhishek for the pointer.)
The government has envisaged an investment of more than Rs 22,000 crore for setting up nine new major ports in the country over the next five years.
The Ministry of Shipping has asked nine coastal states — West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat — to select sites for setting up a major port each. It is awaiting a response from all nine states.
"We have written to all the nine (maritime) states and have asked them to select site for the major port," a Shipping Ministry official said, adding that construction of each port would cost about Rs 2,500 crore.
The 12 existing major ports are Mumbai, the Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Kochi, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.
… Any port with two or more berths with facilities and equipment capable of handling 100,000 tonne per month of cargo from ocean-going ships is categorised as a major port.
The Shipping Ministry plans to create port capacity of around 3,200 million tonne to handle the expected traffic of about 2,500 million tonne by 2020.
… About 90 per cent by volume and 70% by value of the country’s international trade is carried through maritime transport.
For some reason I feel there is a catch somewhere.
To start with with private parties willing to spend their own money in setting up ports, why does the central government needs to spend its tax earnings on this. It should focus on elements for which private funding is lacking.
Other arms of the central government are trying to sell-off equity in public sector units to get money for other developmental things. With that background it does not make sense for India to spend money on things (new ports) that the private sector can do.
Perhaps some of the readers can suggest some perspectives where the above makes sense.
Following is an excerpt from a report in Pioneer.
Though there are 12 potential port locations on the coast-line, the State Government is not in a hurry to develop these ports. It would take appropriate decisions for development of the proposed ports in Public-Private-Participation mode only after preparation of the feasibility report.
… According to official sources, apart from the ongoing ports – Dhamara and Gopalpur – there are at least 12 potential port locations on the coast line. They are Bahuda Muhan in Ganjam, Baliharchandi, Astaranga, Jatadhari Muhan, Barunei Muhan, Chudamani, Incudi, Chandipur, Bahabalpur, Subarnarekha Mouth (Kirtania) and Bichitrapur.
While the decision to develop Chudamani and Astaranga ports has already been taken, land acquisition for development of the Subarnarekha port was under consideration of the Board of Revenue. Environment and other related clearances of this proposed port are in the final stage.
Of other proposed nine ports, it was decided to prepare feasibility report in each case before entering into any deal with private investors for developing them on BOOST, though a number of private promoters have evinced interest, the sources said.
The sources said that the Dhamara Port has already been completed at an estimated investment of Rs 3,239 crore and the railway line is already operational. …
On Gopalpur Port being operated by private developer Gopalpur Ports Limited, the sources said the completion of the all-weather port would be done at an estimated cost of Rs 1212.55 crore. It was decided to set up a fishing jetty at Gopalpur and to provide ID cards to 5,000 fishermen.
With the completion of Gopalpur port, as many as 4,888 direct and 1,000 indirect employments potential would be created, the sources said.
Following is an excerpt from a report in Financial Express.
New infrastructure projects in Gujarat, Andhra Pradesh, West Bengal, Tamil Nadu and Orissa are set to get a major push in the five years starting 2012 as various government agencies will be prioritising building of roads, rail networks, airports and sea ports in these states that are setting up mega petroleum and petrochemical investment regions.
Five massive regions meant to attract investments in the petrochemical and allied sectors are now at various stages of implementation at Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh, Haldia in West Bengal, Paradeep in Orissa and Cuddalore and Nagapattinam in Tamil Nadu. These investment zones, each of which is not less than 250 square kilometres, are expected to attract a collective investment of R8,63,664 crore and create more than 40 lakh jobs during the 12th Five-Year Plan.
… “We will get infrastructure build for these projects using various existing schemes through appropriate prioritization,” K Jose Cyriac, department of chemicals and petrochemicals secretary, said. Government entities like the National Highways Authority of India, shipping ministry and the railways ministry would emphasise on fresh projects in these regions while allocating resources in the coming years. In the case of small connecting roads wherever required, the state governments concerned would include them in their own development plans.
Following is an excerpt from a report in Business Standard.
Petronet LNG Ltd, one of the fastest growing companies in the Indian energy sector has evinced interest in setting up an LNG (Liquified Natural Gas) terminal along the Orissa coast.
Dhamara, Gopalpur and Paradip ports in the state have been identified as the possible locations for the proposed LNG terminal which is set to cost Rs 4,000-5,000 crore.
“Petronet LNG is keen to set up an LNG terminal along the Orissa coast. The company is yet to zero in on any site though Dhamara, Gopalpur and Paradip have emerged as the potential locations. Petronet LNG has told us that the Orissa coast is the most suitable location for setting up the LNG terminal in which Rs 4,000-5,000 crore will be invested,” T Ramachandru, principal secretary (industries), Orissa government told Business Standard.
Petronet LNG is understood to be in talks with Paradeep Port Trust (PPT) authorities as well as promoters of Dhamara Ports Company Ltd (DPCL) and Gopalpur Ports Ltd (GPL) for the project. “We had initial discussions with the officials of Petronet LNG. They have proposed to set up an LNG terminal along the Orissa coast and we are open to the idea of setting up the terminal at Gopalpur. Petronet LNG officials have talked to PPT authorities as well as DPCL,” said Charchit Mishra, director of GPL.
… Petronet runs India’s first LNG receiving and re-gasification terminal at Dahej (Gujarat) having a capacity of 10 million tonne per annum (mtpa), equivalent to 40 mscmd (million standard cubic metres per day) of natural gas. The company is in the process of building another terminal at Kochi (Kerala) which will have a capacity of five mtpa equivalent to 20 mscmd.
Following is from the "About Us" page of Petronet.
Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India’s leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).
The following map gives an idea that the location picked and being considered by Petronet is not going to be a one-off thing. From the shape of India it becomes clear that many companies who will be importing "things" and distributing them across India would think of three ports: one in the West, one in the South and one in the East. In the East, since Odisha has a much longer coast line than West Bengal, there is a rush to establish ports in Odisha. These ports are going to be a big factor in the development of Odisha. Because of that Odisha is and should be zealously protecting the welfare of its existing and planned ports.
Following is an excerpt from a report in Business Standard.
After committing investments on a new six million-tonne-per-annum (mtpa) steel plant, a captive power plant and a coal-to-liquid project in Orissa, Jindal Steel & Power Ltd (JSPL) has evinced interest on setting up a captive port in Ganjam district.
It involves a capital cost of Rs 1,424 crore, while the operational cost of running the port would be Rs 152 crore per annum. The first phase is scheduled to be operational by 2017.
The location is 30 km south of the existing Gopalpur port and 18 km from Berhampur.
JSPL today made a presentation to the state commerce and transport department on the proposed port at the mouth of the Bahuda river, a perennial port. The port does not require acquisition of farm land and there are no issues involved with nesting of the endangered Olive Ridley turtles in the area.
… The captive port will handle capesize vessels (150,000 or dwt) for coal and coke and Handymax vessels (50,000 dwt) for general cargo. During the first phase, the port will have two dedicated berths for handling coal and limestone and one berth for general cargo. The port is anticipated to handle about 33 million tonnes per annum of coal and other import items. Six capesize vessels of 150,000 dwt would make 36 visits each per annum for 33 mtpa of coal and other export items.
Work on the second phase is set to begin after 2017, when the port will have three more general berths.
By 2017, the port is expected to handle 4.93 million tonnes (mt) of steel coils and 900,000 tonnes of steel plates. Similarly, the company will import 5.5 mt of coking coal, 7.46 mt of non-coking coal, 2.6 mt of limestone and 3.7 mt of dolomite through this port by that period.
By 2020, the export of coils from the port is projected at 9 mt. Likewise, JSPL would import 12.6 mt coking coal, 7.5 mt non-coking coal, 4.4 mt limestone and 4.7 mt dolomite.
The multiplier effects of the port include revenue from cargo handling, regional economic development, and employment generation, development of road and rail connectivity and acceleration of local economy as well as that of the state.
The six new ports are Kirtania (Balasore district), Chudamani (Bhadrak district), Dhamara (Bhadrak district), Astaranga (Puri district), Baliharchandi (Puri district) and Gopalpur (Ganjam district).
Following is a report from Sambada.
The following details is from this webpage (pdf).
INLAND WATERWAYS AUTHORITY OF INDIA
National Waterway-4 & 5 Projects – Expression of Interest for short listing of firms for selection of Project Management Consultant (PMC) to take up development works in Public-Private-Participation (PPP) mode
Inland Waterways Authority of India (IWAI) invites Expression of Interest (EOI) from experienced consultants having proven caliber, capacity and experience in the realm of Projects related to dredging, jetty/ terminal with allied infrastructure facilities, modification of bridges & navigational locks/ aqueducts and other cross drainage works, aids to navigation and other infrastructure, their operation and maintenance etc for selected stretches of National Waterways -4 & 5 (NW-4 & 5) Projects under PPP mode.
2. Projects: Government of India has declared Kakinada-Puducherry stretch of canals along with River Godavari and Krishna as NW-4 and East Coast Canal along with River Brahmani and Mahanadi detla rivers as NW-5 w.e.f 25th November, 2008. The responsibility of development, regulation and management of these waterways now rests with IWAI.
2.1 The stretch-wise break up of the NW-4 is given below:-
River Godavari (Bhadrachalam to Rajahmundry)- 157 km
River Krishna (Wazirabad to Vijayawada) – 171 km
Kakinada Canal ( Kakinada to Rajahmundry) – 50 km
Eluru Canal (Rajahmundry to Vijayawada) – 139 km
Commamur Canal ( Vijayawada to Pedaganjam) – 113 km
North Buckingham Canal (Pedaganjm to Chennai) – 315 km
South Buckingham Canal (Chennai to Merkanam) – 110 km
Kaluvelly Tank (Markanam to Puducherry) – 22 km
Total – 1077 km
Of this, 888 km length of waterway falls in Andhra Pradesh, 187 km in Tamil Nadu and 2 km in Union Territory of Puducherry.
In 50 km stretch of Buckingham Canal in Chennai area (Ennore to Muthukadu) there is no proposal for development of waterway due to the stretch being heavily encroached by MRTS and being urban area. Thus the effective length of waterway development is only 1027 km.
2.2 The stretch-wise break up of NW-5 is given below:
Rivers Brahmani-Kharsua- Dhamra (Talcher- Dhamra) – 265 km
Matai river (Charbatia- Dhamra) – 39 km
Mahanadi delta rivers (Mangalgadi- Paradeep) – 67 km
East Coast Canal (Geonkhali- Charbatia) – 217 km
Total – 588km
Of this 91 km of waterway is in West Bengal and the rest is in Orissa.
2.3. Considering limitation in availability of funds during 11th Plan it has been decided to explore the possibility of development of more viable stretch of the waterways under PPP mode with Viability Gap Funding (VGF) by the Govt of India, if so required. Further, based on the interaction with possible stake holders in development of these waterways it has been decided by the Ministry of Shipping, Govt of India to explore the possibility to develop the following stretches of waterways under Public-Private- Partnership (PPP) route, at the first instance.
Project-1 (NW-4- Godavari river, Kakinda canal and Godavari Eluru canal)
River Godavari (Bhadrachalam- Rajahmundry) – 157 km
Kakinada Canal (Kakinada-Rajahmundry) – 50 km
Godavari Eluru Canal (Rajahmundry- Eluru) – 88 km
Total – 295 km
Project- 2 (NW-5- Brhamani-Kharsua-Dhamra- Matai river system and Mahanadi delta rivers)
River Brahmani- Kharsua- Dhamra river (Talcher- Dhamra)- 265km
Matai river (Charbatia- Dhamra) – 39 km
Mahanadi delta rivers (Mangalgadi- Paradeep) – 67 km
Total – 371km
3. Project Components: The various components of these Projects are:
Project-1
a) Development of the navigable channel (of the following dimension) along with land acquisition for widening the narrow canals and provision of aids to navigation:
i) River Godavari
Bottom width – 32m
Depth – 1.8 m
Side slope – 1:5
This waterway stretch will facilitate movement of 350 tonnes vessel of 45 m length x 9 m breadth x 1.5 m loaded draft.
ii) Kakinada Canal & Godavari Eluru Canal
Bottom width – 14m
Depth – 1.6 m
Side slope – 1:3
This waterway stretch will facilitate movement of 100 tonnes vessel of 32 m length x 5 m breadth x 1.2 m loaded draft.
b) Construction of Inland Water Transport(IWT) Terminals and related infrastructure facilities (including land acquisition) at 3 locations namely Kakinada, Rajahmundry and Eluru
Project-2
a) Development of the navigable channel (of the following dimension) along with land acquisition for widening the narrow stretches and provision of aids to navigation: Brahmani-Kharsua-Dhamra river system, Matai river and Mahanadi delta rivers
Bottom width – 45 m
Depth – 2m
Side slope – 1:5
This waterway stretch will facilitate movement of 500 tonnes vessel of 50 m length x 11 m breadth x 1.8 m loaded draft. b) Construction of Inland Water Transport(IWT) Terminals and related infrastructure facilities (including land acquisition) at 4 locations namely Talcher, Jenapur, Dhamra & Paradeep (port facilities).
4. Quantum of works & Cost: DPRs have been prepared by the consultant namely M/s WAPCOS (I) Ltd, New Delhi for both the waterways. The quantum of works estimated in the DPR is as under:
Project-1:
a) Estimated Quantity:
Item – Quantity
i) Land Acquisition- 517 Ha
ii) Dredging- 19.12 lakh cu.m
iii) Bank Protection- 0.50 lakh cum
iv) Modification of structures- 496 pipe sluices+ 7 locks + 2 bridges
v) Navigational Aids- 125 FRP Buoys + 125 countryboats + 22 shore beacons + 273 lighted marks
vi) Buoy Laying Vessel- One
b) Estimated Cost: (in Crores)
i) Land acquisition- 118
ii) Dredging- 39
iii) Removal of pipe sluices- 6
iv) Modification of Locks- 8
v) Modification of Bridges- 12
vi) Navigational aids- 10
vii) Protection measures- 3
viii) Terminals – 48
ix) Facilities to local people for ferry Service etc.- 7
Total – 251
Project 2
a) Estimated Works:
Item – Quantity
i) Land acquisition- 23 Ha
ii) Dredging- 10 Million cu.m
iii) Barrages – 5
iv) Bank Protection- 0.76 Million cum
v) Navigational Locks- 5 (with barrages) + 2
vi) Navigational Aids- 190 Buoys + 55 beacons
vii) Buoy Laying vessel – One
b) Estimated Cost (in cr.)
i) Land acquisition- 2
ii) Dredging- 185
iii) Barrages with locks – 1598
iv) Raising banks- 245
v) Protection measures- 39
vi) Fenders – 1
vii) Terminals – 72
viii) Navigational Aids- 11
ix) Navigational Locks- 45
x) Bridges- 14
xi) For EMP implementation- 6
xii) For local public amenities- 12
Total – 2230 at 2010 prices.
The duration of completion of the project shall be Five Years, each. Thereafter, the selected concessionaire/ contractor has to maintain the project for a further period of 10 years.
Executive summary of the DPRs can be downloaded from our website www.iwai.nic.in. Other volumes of the DPRs can also be obtained from IWAI by the prospective bidders on payment basis.
5. Scope of assignment for the consultant: The selected consultant has to act as the representative of IWAI in monitoring the execution of project under PPP route. The consultant inter-alia has to prepare the PPP documents for selection of concessionaire/ contractors, check the adequacy of design of each component of works, do bid process management on behalf of IWAI, monitor and ensure quality of the work done by the contractors till the waterways stretches of Project -1 & 2 become fully functional/ operational. The waterways have to be developed for for providing 24 hour navigation for at least 330 days in a year with necessary infrastructure facilities
My thoughts: The National Waterway 5 would be a huge benefit to Odisha. Basically it will run from Talcher – Kalinganagar area (Jenapur) – to Mangalgadi (a point in between Paradeep and Dhamara) and would connect Paradip to Dhamara to a point near Kolkata. The National waterway 1 runs from Kolkata to Alalhabad (Prayag) via Patna and Varanasi. I am not fully sure if the connection between NW 5 and NW 1 is seamless. Some maps suggest that while others suggest the opposite. But regardless, if Odisha takes proper advantage of this, this would be huge. Following are some possibilities.
Following is from http://www.igovernment.in/site/moef-nod-orissa-port-expansion-project-39561.
The Ministry of Environment and Forests (MoEF) has given a nod for the expansion of Gopalpur port project in Orissa.
"We received a communication from the Ministry in this regard," of the Gopalpur Port Limited (GPL) Executive Director PK Panigrahi said.
The port, about 170 km from here, is a seasonal port operational from November to March and handles cargo, including iron ore, coal and fertiliser ranging from half a million tonnes to 0.7 million tones, reports IANS.
"The Ministry has granted the permission to make it an all-weather port," Panigrahi said, adding that the construction for the expansion of the project will start within a month and complete within 24 months.
The company has planned to invest Rs 1,250 crore initially. The port will have an installed capacity of handling at least 12 million tonnes cargo by 2013 and aims to increase the capacity to handle 54-60 million tonnes per annum by 2022, the official said.
Initially, the port has planned to receive vessel size of one lakh DWT (Deadweight tonnage) and after enhancement of the capacity it will be able to receive vessel size of 130,000 DWT, he said.
Following is an excerpt from a report in Economic Times.
The Rs 3,200-crore Dhamra Port in Orissa, a 50:50 joint venture between Tata Steel and Larsen & Toubro (L&T), is ready and will go operational next month, a top company official said.
Dhamra Port Company Limited (DPCL) has so far invested Rs 2,900-crore out of the total project cost of Rs 3,239-crore and almost 100 per cent work on the project has been completed.
… "We have completed 100 per cent work of the port including the construction work for the 62-kilometer rail link from Dhamra to Bhadrak on the main Howrah-Chennai line," he said.
… Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 1,80,000 dead weight tonnes (DWT).
DPCL has recently entered into a sister port relationship agreement with the US-based Port of Seattle. The pact is aimed at exchange of information on port users, technology transfer and sharing of best practises between the two ports.
Following is a map from http://www.dhamraport.com/maps.asp.
Jagmohan Swain has been talking about this in facebook for a long time. I agree with him. If and when the Kra canal opens it will have a huge huge positive effect on Odisha as Odisha ports will be the closest way to reach India for ships coming from China, Taiwan, Hong Kong, South Korea, Japan, etc. That may be the part of the reason there is so much clamoring for making new ports in coastal Odisha. Following is a picture from Jagmohan’s facebook page.
Following is from a report on the current status of the proposed Kra canal. (Thanks again to Jagmohan for the pointer.)
The Kra Canal Project, which would link the South China Sea directly to the Indian Ocean by cutting across the Thai isthmus, has shown recent signs of being reactivated given the economic benefits it would bring to the region as well as the continuing problems with piracy in the Straits of Malacca and the current route for trade to and from India and South–East Asia to China.
The canal, which was first recognized as a potential for boosting trade in 1677, would have the same impact on South-East Asia as the Panama and Suez Canals have had elsewhere. The canal would need to traverse a length of only 44 kilometers at the narrowest point of the Thai peninsula, however with rocky land of up to 75 meters above sea level; the engineering and labor requirements would be huge.
China, not surprisingly, has offered to lend considerable assistance to the development of the project, which was tentatively approved by the Thai Senate in 2007. The project is currently stalled due to “environmental concerns”, however, this is largely interpreted as meaning political wrangling over the project, which has plenty of detractors. Two major voices of dissent are the Singapore Government, who would stand to lose their preeminent position as a shipping hub for South-East Asia, and the previous Bush administration in the United States, who’s then Defense Secretary Donald Rumsfeld showed concern about the plan amidst growing concern of developing Chinese influence in the region.
The cost of the project is estimated at US$20 billion, and would take ten years to complete, with some 30,000 workers being involved. The project would also compliment the Highway 44 overland route, which links the West and East coasts of Thailand, and has currently been stalled with some 50 kilometers to go at either end – a victim of the recent political turmoil in Thailand. However, with domestic politics apparently heading for smoother waters and the previous Bush regime now out of the way, the Kra Canal project is certain to come back into public view, and with South-East nations keen to develop trade with China, the project looks certain to come back to the drawing board.
Note that in ten years the proposed national waterway 5 — passing through Odisha connecting coastal Odisha to Kolkata and up north through national waterway 1 — would also be ready making it possible to connect a huge part of India to the above mentioned asian countries through waterways.
Following are excerpts from a report in Business Standard.
"The Government of India has announced a major policy initiative to offer Viability Gap Finding (VGF) for providing road and rail connectivity to the minor ports. As per this policy, the Government of India will bear 50 per cent of the cost for the road and rail infrastructure, the state government will provide 30 per cent while the remaining 20 per cent will be borne by the port developers”, G K Dhal, principal secretary (commerce & transport) said.
For the proposed port at Bichitrapur in Balasore district, the road connectivity would be between Jaleshwar and Bichitrapur while the rail connectivity would be from Digha to Bichitrapur.Similarly, for the port proposed at Subarnarekha mouth, also in Balasore district, the road connectivity is proposed between Basta and Choumukha whereas the rail connectivity would be from Haldipada to Choumukha.
The road connectivity for the Dhamara port in Bhadrak district has been envisaged from Jamujhadi on NH-5 to the port site. The rail link is being developed between Bhadrak and Dhamara.
… "The Orissa government has also proposed an industrial corridor on the Meramandali-Angul-Talcher-Chhendipada belt linking the coal mines, power plants and steel plants. Rail India Technical & Economic Services (Rites), the consultancy arm of Indian Railways, has submitted a draft feasibility report in this regard which is under the scrutiny of the state government. The Orissa government intends to form a Special Purpose Vehicle (SPV) for the purpose. This common corridor will be co-habited by multiple players and can be financed by participative funding”, he added.
Following is from http://www.tathya.in/news/story.asp?sno=4742.
… The Managing Director of the Construction Major, Navayuga Engineering Company Limited (NECL) after signing the Concession Agreement said that “the dynamics of the areas in the vicinity of 80 Kilometres of Astaranga in Puri will be energized”.
… “A Detailed Project Report (DPR) will be prepared by NECL within a year”, said he.
Mr.Sridhar signed the CA on behalf of NECL with the Government of Odisha to set up a port with a capacity of 25 Million Tonne Per Annum (MTPA) at an investment of Rs 6,500 crore in Puri district.
Gagan Kumar Dhal, Principal Secretary of the Department of commerce & Transport (DOCT) singed CA on behalf of Government of Odisha.
… Mr.Dhal said “All out support will be extended to the promoter of the deep water port being developed with ultimate capacity of 60 MTPA, which will be operational within four years of land acquisition”.
Astaranga Port would be full-fledged all weather multi-user port on BOOST (build, own, operate, share and transfer) basis, Mr.Dhal added.
The port would carter to ultimate vessel size of 1.75 lakh DWT Dead Weight Tonnage (DWT), he said.
The company would share with the State Government its gross income with 5 per cent share in the first five years, 8 per cent in 6th-10th year and 10 per cent in 10th-15th year.
It would share 12 per cent of share from income on 16th year when lease period ended, Dhal said.
Astaranga Port project, which would generate a large number of direct and indirect employment.
As per the stipulated policy of the Government of Odisha,90 per cent of the total requirement of unskilled and semi skilled manpower would come from locals.
The Developer would take 60 per cent of local people in skilled category, said Mr.Dhal
Similarly, a minimum of 30 per cent of supervisory and managerial level would be drawn from locals and it was allowed to hire senior executives from open market, Mr. Dhal added.
The port will have a Service Corridor of 90-km long rail and road connectivity.
While for road connectivity, it will be connected to the nearest National Highway and connectivity for rail will be taking off from Barang Railway Station, revealed P A Venkateswaran, Resident Director NECL.
In order to promote private ports the State Government has already signed Concession Agreements with three other companies to develop port facilities at Gopalpur in Ganjam district, Dhamra in Bhadrakh district and Chaumukh in Balasore district.
Following is from a Business Standard report.
Chennai-based Creative Port Development Ltd, which proposes to set up an all-weather port at Subarnarekha Muhan in Orissa’s Balasore district, aims to achieve financial closure for the Rs 2187-crore project by June 2011.
The land acquisition process for the proposed port project is set to take off soon with notification under Section 4 (1). "The project needs 1215.43 acres of land for the port area and 1565.93 acres for the rail corridor. Notification under Section 4 (1) will be issued soon for land acquisition”, Sanjeev Sahoo, minister for commerce and transport, Orissa told reporters.
Out of the 1215.43 acres of land needed for the port area, 158 acres constitute Gochar land, 193 acres Bhudan land, 138 acres encroached land and the remaining 724 acres are free land. A high-level meeting chaired by the state Chief Minister Naveen Patnaik reviewed the status of ports proposed to be set up at Gopalpur and Subarnarekha.
Creative Port Development Ltd had inked an MoU (Memorandum of Understanding) with the state government on December 18, 2006, for setting up a port with an initial capacity of 10 million tonnes per annum (mtpa) which would be scaled up to 40 mtpa in 10 years.
The port developer had entered into a concession agreement with the state government on January 11, 2008. As per this agreement, the port developer would share revenue with the state government at the rate of five per cent from first to fifth year, eight per cent from sixth to 10th year, 10 per cent from 11th to 15th year and 12 per cent for the remaining 15 years.
Creative Port Development had submitted the Environment Impact Assessment (EIA) application to the Orissa State Pollution Control Board on October 19 this year which has been forwarded to the Balasore district collector for conducting public hearing.
The Rehabilitation and Resettlement (R&R) package for the project is under finalisation. The proposed port is set to create direct and indirect employment for around 3,000 people.
Following is from http://dailypioneer.com/290501/Why-I-would-prefer-a-captive-port-for-Posco-steel-project.html.
Getting into the port town of Paradip after the ordeal of a tiring long journey from Cuttack on the State Highway is refreshing; sweeter than reaching an oasis after a long wandering in a vast desert depicting inertia and obscurantism. The experience of the musical fountain in a well-nurtured garden, the sight of a modest golf course, the neat avenues and bountiful hospitality linger on for long. The port has been expanding. Whereas the port handled 30 million tonnes (MT) of cargo in 2004-05, it handled an impressive 57 MT in 2009-10. This is the port I had served as chairman for five years, many years ago.
Many incidents surface in my memory — the removal of the two sunken dredgers close to the entrance channel of the port; the visit of the chairman of Indian Oil Corporation for setting up a refinery. Then, the Posco team’s visit for setting up a steel plant at the port town and Chief Minister Biju Patnaik’s long discussion on the issue with the visiting Koreans at the port guesthouse. At the guesthouse, one finds the foundation stone for the port with the prophetic description of the birth of the port ‘as yet another national adventure’ by Prime Minister Jawaharlal Nehru.
History is perhaps going to repeat itself. We are likely to see yet another national adventure on the coast, about 10 km south of the Paradip lighthouse. Should this happen, India’s east coast would have the most modern captive port at Jatadhari that would handle vessels of 170,000—220,000 DWT. The port would have facilities for handling smaller vessels as well. This port would be coming up at a time when the country is in great need to increase port capacity to bridge a huge anticipated capacity-gap of around 250 MT for dry cargo by 2013. On any given day, about 150 ships are waiting at anchorage in Indian waters. This amounts to an annual loss of `2,400 crore. Kandla Port handled the highest traffic in 2009-10 with 79.52 MT, and all the Major Ports handled 561 MT during the year. Share of traffic of the non-major ports has been increasing. It has risen to 206 MT in 2009-10 representing 37.5 per cent of the traffic of Major Ports.
The port sector, however, has to do much more. India’s Shipping Minister recently announced plans to triple capacity in the next 10 years so that India’s total capacity is boosted to 3,200 MT. Therefore, pace of entry of private players into the port sector has to gain momentum. Pipavav, Mundra, Krishnapatnam and Dahija are successful ports developed though private investment. Private developers would also be creating new ports at Dighi and Rewas (Maharashtra), Vizhinjam (Kerala), Kalpi (West Bengal), Gopalpur and Dhamra (Odisha). Private investments have also been made in different terminals of Major Ports like JNPT, Cochin, Haldia, Vizag, Tuticorin and Chennai. More private investments would only make our port sector viable and competitive.
The location of the proposed port at Jatadhari, south of the existing Paradip Port, would create immense opportunities for development of infrastructure facilities. Most promising opportunity for the people could be in the eight-lane expressway to connect the new port with Bhubaneswar.
One would only wish that the planners for the highway do not succumb to pressure for a zigzag alignment for the road so that it runs close to thick habitations .A straight line alignment, on the other hand, would induce planned development of the area. The proposed 12-km six-lane road along the coast would connect Paradip and the new port and make this stretch of the shore extremely popular with tourists. Besides, the new port would have connectivity with the NH-5A and the State Highway connecting Cuttack. At least two rail connections, one with Cuttack-Paradip line and the other with the proposed Haridaspur-Paradip line, would provide access to the steel plant and the new port. Plans are afoot for a dedicated rail-line from the mines to the new port. Though linking Jakhapura (on Kolkata-Chennai trunk route) with Banspani (in the mining belt) would be helpful, this line would not provide convenient access to many rich iron ore deposits of Sundargarh and Keonjhar districts. A new line should therefore connect Barsuan with the Banspani-Keojhar section and Barsuan should be connected with Talcher. The new port should be connected by a new rail-line with either Barang or Bhubaneswar by avoiding Cuttack. Such a comprehensive rail network only would ensure complete integration of the existing and the new ports with the hinterland.
Some view that the proposed port would have adverse effect on Paradip Port. People connected with Paradip are aware of the littoral drift of sand along the coast from south to north; the gradual accretion of land south of the southern breakwater of Paradip Port and erosion of land north of the northern breakwater. To contain the erosion, a seawall has been constructed north of the northern breakwater that runs up to the point of confluence of the Mahanadi with the sea. The northern breakwater of the proposed port is sometimes perceived as a feature, which could induce similar erosion of land towards Paradip. This apprehension however is unfounded, as this problem would surely be tackled through suitable engineering measures. The embankment form is expected to have in the middle portion quarry-run materials like boulders of different sizes; the seaside of the embankment is likely to be protected with acropodes and the landside with a concrete surface. The embankment is likely to be 7.5 metres high from the mean sea level and there is to be a wide road on top of it. The northern portion of the north breakwater of the new port is to be more effectively protected through better engineering measures. The southern breakwater of the port would arrest good quantity of north-moving sand and this would in fact help Paradip Port where the annual dredging would be less.
The other area of concern relates to the possible adverse impact on the business of Paradip Port. The cargo for the new port, it is pointed out, could be easily handled by Paradip Port. Actually, there is greater advantage in having two ports. The new port is expected to handle ultimately around 40 MT of cargo, but the development of the port has to go in tandem with the development of the steel plant. A port captive to the mother industry alone would be in a position to develop in conjunction with the development of the mother industry whereas such coordination may not always be possible if the port is a public port. A public port is meant to meet the requirement of many users in the hinterland.
Landlocked States in the hinterland of Paradip Port, Jharkhand and Chhattisgarh, are poised for rapid industrial development and their industries along with those in Odisha would depend on Paradip Port. Paradip Port would not be in a position to handle an additional cargo of around 40 MT of Posco plant. It is therefore only appropriate that the existing and future capacity of Paradip Port is taken advantage of by a large number of users and the Posco cargo handled by a captive port.
The new port should not therefore cause any concern; it is only a logical and welcome part of Posco-India’s project that is surely going to bring in an integrated development of the hinterland.
— The writer, a former IAS officer, can be reached at punarbashu@gmail.com
Following are reports from Samaja and Dharitri. It says land has been selected in the Choumukh panchayat. The port, which was earlier referred to as Kirtania port, is now referred to as Subarnarekha port. The Samaja article mentions that for the port connectivity there will be a two lane road and rail lines between Haldipada and Choumukh. The Daharitri article mentions the rail points as Rupsa and Jaleswar. Both articles say that if things go as planned the port should be operational by 2014. This port is being made by Creative Ports of Chennai.
Following are presentations given by the Odisha delegation that visited US during June-July 2010.
Following is an excerpt from a report in Business Standard.
The Centre would provide Rs716 crore under ‘Viability Gap Funding’ for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.
“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.
The funds to be provided by the Centre under ‘Viability Gap Funding’, will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.
The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.
The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.
Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.
The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.
Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.
Of the expected overall investment figure of Rs2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.
The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.
The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).
… This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.
The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .
This is really great. Especially, the part about a greenfield coastal road. Odisha has been demanding such a road for a long time. I think eventually it will run all the way from Dhamara-Paradeep-Astaranga-Konark-Puri-Baliharchandi-across Chilika to Gopalpur. From Dhamara to the North they can put this road together with the National Waterway.
Following is from http://pib.nic.in/release/release.asp?relid=63957.
Union Government through Inland Waterways Authority of India (IWAI) develops inland water terminals/ports only on those waterways which are declared as National Waterways (NWs). Following five waterways have so far been declared as NWs:
(i) National Waterway-1: Allahabad-Haldia stretch of the
(ii) National Waterway-2: Sadiya–Dhubri stretch of the
(iii) National Waterway-3: Kollam-Kottapuram stretch of
(iv) National Waterway-4: Kakinada-Pudducherry stretch of canals comprising ofKakinada canal, Eluru canal, Commamur canal, Buckingham canal and theKaluvelly tank, Bhadrachalam-Rajahmundry stretch of river Godavari andWazirabad-Vijaywada stretch of river Krishna in the States of Andhra Pradesh and Tamil Nadu and the Union Territory of Puducherry.
(v) National Waterway-5: Talcher-Dhamra stretch of Brahmani-Kharsua-Dhamrarivers, Geonkhali-Charbatia stretch of
Out of these NWs, developmental works including development of inland water terminals/ports are being carried out by Inland Waterways Authority of India (IWAI) on NW-1, 2 and 3 only. Developmental works on NWs 4 & 5 have not yet commenced.
Details of inland water terminals/ports developed on NW-1, 2 and 3 and the funds allocated for development/maintenance of IWT terminals/ports during 2010-11 are:
|
|
NW |
Type of terminals / ports |
Locations |
Funds allocated for development / maintenance of terminals /ports during 2010-11 |
|
1. |
NW-1 |
Fixed (Existing) |
|
Rs. 9.32 crore |
|
Floating (Existing) |
Haldia, Botanical Garden (Kolkata), BISN(Kolkata), Shantipur, Katwa, Farakka, Rajmahal, Sahebganj, Bateshwarsthan, Munger, Semaria, Buxar, Ghazipur, and |
|||
|
Fixed (Under constr.) |
and G R Jetty ( Kolkata) |
|||
|
2. |
NW-2 |
Fixed (Existing) |
Pandu (low level jetty) |
Rs. 9.10 crore |
|
Floating (Existing) |
Dhubri, Jogighopa, Tejpur, Silghat,Neamati, Dibrugarh and Sengajan |
|||
|
Fixed (Under constr.) |
Pandu ( high level jetty) |
|||
|
3. |
NW-3 |
Fixed (Existing) |
Kottapuram, Aluva, Maradu, Viakom, Taneermukham, Trikkunnapuzha, Kayamkulam, Bolghatty and |
Rs. 1.25 crore |
|
Fixed (Under constr.) |
Kollam |
This information was given by the Minister of Shipping, Shri G.K. Vasan in Lok Sabha today.
***
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