Indian Journal of Fertilisers 16 (9) : 886-897, T. KallingalSeptember and 2020 Hitendra Pratap Singh Indian Journal of Fertilisers 16 (9)

Future Outlook for Indian Coastal Shipping and Inland Waterways T. Kallingal and Hitendra Pratap Singh Indian Farmers Fertiliser Cooperative Limited, New Delhi Received : 05/08/2020 Accepted : 13/08/2020 Abstract The Indian logistics sector, relies heavily on road and rail modes for transportation of goods, whereas the more efficient, eco-friendly modes of coastal and inland waterways still remain grossly underutilised. Despite the tremendous potential of transportation through water ( both coastal and river) the initiatives by Government of and other agencies for promotion / popularisation, are yet to culminate into tangible results, especially in fertilizer movement. The Industry is looking for requisite infrastructure, road connectivity and a conducive policy environment, to wade through the numerous challenges linked to switching from the conventional ‘tried and tested’ modes to this comparatively underutilised mode. Need of the hour, is to incentivize, support and extend a bit of ‘hand-holding’, to the fertilizer fraternity for commencing coastal /inland waterways movement, till this mode gets stabilised. Key words: Coastal shipping, inland waterways, logistics cost, container movement, transportation, fertilizer 1.0 Introduction and Ganga rivers; Ganga with its 17 tributaries and the Indus with its 13 tributaries were navigable and Coastal shipping and Inland waterways in India, has been used extensively for transportation. Glancing a very significant role to play in the country’s through the pages of ancient World history, one economy, with the extremely high potential it wields would observe that for a long time, India stood out from the 7,517 km long coastline and the Inland predominantly as the heart of commercial activities. waterways network stretching to around 14,500 km. India had colonies in Cambodia, Java, Sumatra, Borneo The Water transportation has a definite edge over and in a few Far East countries. The transport and others, in terms of possessing the highest carrying communication with these trade centres were mainly capacity and being the best suited for long distance through waterways. Until about a hundred years ago, carriage of bulky goods. India has the largest the Ganga river, too, was a busy waterway. merchant shipping fleet among developing Through the ages, rivers have served as effective countries and ranks 17th worldwide. Coastal and waterways, carrying people and goods over long inland water transport is among the cheapest modes distances. of , as it takes advantage of the natural track and does not require huge capital Coastal shipping refers to movement of goods along investment in construction and maintenance except the coast or from one coast to the other within in the case of canals. World over, many countries country or within hinterland connected neighbour depend heavily on coastal and inland water countries. It is also referred to as short-sea shipping, transport, especially for movement of large and marine highway and coasting trade, whereas Inland bulky cargo, it being cheaper, reliable and less waterways is a network in the form of rivers, canals, polluting compared to other modes, such as road or backwaters and creeks that can be used for rail. transportation along with other modes, say road The supremacy of maritime and river navigation has and rail. Forms of water transport are given in characterised the transport of goods in India for Figure 1. centuries. Megasthenes, the ancient Greek historian, India is yet to fully develop these cheaper and in his book ‘Indica’ provides a detailed account of greener modes of transportation. A lion share of sailing in Indian rivers to Pataliputra along Yamuna goods still travel by the congested road and rail

Figure 1. Forms of water transport [email protected]

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networks, decelerating the movement of cargo, Table 1. Countries’ coastal length and domestic cargo share adding to uncertainties, and increasing the costs of Country Coastal line (km) % share of trade. Logistics cost in India is one of the highest domestic Cargo among major countries. India is ranked 44 out of 160 India 7,517 7 countries in the ‘Logistics Performance Index 2018 USA 19,924 14 (LPI)’. In India, the logistics cost as a percentage of China 14,500 20 GDP stands at 13%, as against 8% in Germany and Brazil 7,491 23 China, 9% in Japan, 9.5% in USA, and 10% in European Japan 29,751 42 Union (EU). Globally, coastal and inland EU 68,000 43 transportation is the most favoured mode followed Saint Lawrence Rivers in the US, the Amazon in by rail and roads. Despite the massive potential of the coastal mode, transportation of goods in India is South America, the Nile in Egypt and the Yangtze heavily in favour of road, accounting for nearly 57% River in China. The Danube, being the second longest river in Europe, with a catchment area covering one- of the cargo moved, followed by rail at 30% and the remaining by the coastal shipping, inland tenth of the continent, is an important part of the waterways and oil & gas pipeline (Figure 2). Trans-European Networks. The European Commission aims to promote and strengthen the 2.0 Coastal Shipping & Inland Waterways - ‘Growth competitive position of inland waterways in the Engine’ Worldwide transport system and to facilitate its integration into It is well-known that the shipping has always been the intermodal logistics chain. As by 2050, the coastal regarded as an important transport sector of national (short sea) shipping has a strong role in reaching the activities in all maritime countries, and it is well EU transport goal of reducing the green-house gases suited for transportation of bulk cargoes at low cost. Coastal shipping and inland waterways, as emission by 60% and to achieve a shift of 30% road supplementary modes of transport are not only an movement over 300 km to other modes, by the year economic necessity but also a valuable asset in times 2030. Under the ‘Paris Agreement on Climate Change’ of exigencies. India has pledged a 33-35% reduction in the ‘emission intensity’ of its GDP by 2030, compared to Water-based transportation of domestic freight, the 2005 levels. India’s climate pledge outlines its comprising of both coastal shipping and inland intention to promote transport through coastal waterways, is approximately nine times higher in shipping and Inland waterways, for its fuel China, six times higher in the EU, five times higher in efficiency and cost effectiveness. A report by Morgan Japan and twice as high in the USA compared to India Stanley in 2016 states that growth in Indian coastal (Table 1). shipping, at the expense of road movement, could In Europe and other parts of the world, cities built on reduce costs by $2.5 billion by 2025. the banks or at the mouth of rivers historically 3.0 Coastal Shipping in India witnessed growth and development. Shipping is an important indicator of both for For instance, in Europe having more than 37,000 km commodity and services trade of any country. of waterways connect hundreds of cities and major In recent years, coastal shipping in the country has industrial hubs; 13 countries have an interconnected been increasingly recognized as a sustainable and waterway network. The Danube-Main-Rhine route efficient mode of transport, capable of effectively is one of the most important waterways in the World, supplementing the already overstressed road and rail besides others, like the Mississippi-Great Lakes- network. For the ‘medium to long distance’ freight

Figure 2. Mode-wise per cent share in transportation

35 888 T. Kallingal and Hitendra Pratap Singh Indian Journal of Fertilisers 16 (9)

Figure 3. Coastal states of India for coastal shipping is ideal for transportation of economic zone, the country has gained a territory of containers, project cargoes, over dimensional cargoes, around 100,000 sq. km of water surface for productive RORO cargoes, dry bulk cargoes viz. food grains, purposes. Despite being eco-friendly and its abundant fertilizers, steel, coal, salt, limestone & minerals and potential, the Indian coastal shipping has remained liquid bulk cargoes including POL products. Apart largely un-tapped. The fuel consumption in coastal from reducing traffic congestion, it can lower movement per tonne-kilometre is just about 15% of casualties due to accidents, which are routine in road that by road and 54% of that by rail. transport. It has been established that coastal shipping is the most economical, environment friendly The Indian coastal shipping has grown to nearly 120 million metric tonnes (MMT) in 2018-2019 as against mode with least emissions of GHGs, lesser carbon foot 83 MMT in 2014-15 (Figure 4) and an additional print & noise pollution and is a safer method of potential of 130 million MT per annum by 2025 has transportation for domestic cargo. been identified under the ‘Sagarmala Programme’ India’s potential lies in its 7,517 km long coastline promoted by GOI through Ministry of Shipping. bordering 9 (nine) states i.e. , Maharashtra, Coastal movement by sea has grown in India at a Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, CAGR of 10% during the period of 2015-18, though & West Bengal and 4 (four) union territories still the coastal shipping accounts for only 7% of the viz. Daman & Diu, Puducherry, Andaman & Nicobar overall domestic cargo movement, which is not at all Island and Lakshadweep Islands (Figure 3). Indian comparable with those of the developed countries. coastal line is studded with 13 major ports (12 ports Vessels play vital role in transportation of material governed by Government of India (GOI) & Kamarajar through coastal mode. The country has 1,429 vessels port i.e. Ennore under the Companies Act and about registered under the Merchant Shipping Act, of which 200 non-major ports. With 200 miles of exclusive over 900 vessels are operating at coastal routes.

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4.0 Inland Waterways 4.1 National Waterway-1: India’s most important Inland water transport refers to the transport National Waterway is Allahabad (Prayagraj) – Haldia facilities available in the navigable waters, canals and stretch of the Ganges–Bhagirathi–Hooghly river backwaters. It is the cheapest mode for certain kind of system having a length of 1620 km with an estimated traffic provided the points of origin and destination cargo movement of 9.11 million MT. Additionally, NW- are located on water bank. River and canal transport 1 functions as a link to Bangladesh, Myanmar, Thailand, Nepal and other East and Southeast Asian played an important role in the transport system of countries. the country during early years but with the development of rail and road transport, this channel 4.2 National Waterway-2: It is the 891 km stretch of suffered the set back. India has approximately 14,500 river Brahmaputra between Bangladesh border near km of navigable waterways which comprise of rivers, and Sadiya. NW-2 has a vital role as mode of canals, backwaters, creeks, etc. with significant transportation for the state of (in the North growth potential, as a mode of transportation. Inland East India), with an estimated cargo movement of 2 Waterways Authority of India (IWAI), an authority million MT per annum. under Ministry of Shipping, was established in 1986 Bhutan-Bangladesh trade via NW 2 has also been to develop and regulate the inland waterways for taking place through this waterway. Bhutan has been shipping and navigation. exporting significant quantity of stone aggregates Considering the benefits and importance of inland through the land route for construction projects in waterways, to ramp up the modal share, the GOI had Bangladesh. Stone exporters have identified inland declared 106 new National Waterways under the waterways as an alternate mode of transportation. National Waterways Act, 2016 taking the total 4.3 National Waterway-3: Kozhikode - Kollam stretch of number to 111. However, a spectacular growth in this the West coast canal, Champakara canal and mode is yet to be witnessed. The first five National Udyogmandal canal having a length of 205 km with Waterways are depicted in Figure 5. In India, just an estimated cargo movement of 1.0 million MT. around 0.5% of goods are currently being transported through inland waterways, compared to 7% in 4.4 National Waterway-4: It Consists of Kakinada- Europe, 8 % in the US and 8.7 % in China. Nevertheless, Puducherry stretch of canals and the Kaluvelly Tank, it is heartening to note that, thanks to the efforts of Nashik-Bhadrachalam-Rajahmundry stretch of river IWAI, a 2% growth in traffic was achieved during 2019- Godavari and Galagali-Wazirabad-Vijayawada 20, raising the total movement through National stretch of river Krishna. Waterways to 73.64 million MT. Another positive 4.5 National Waterway-5: It comprises of Talcher- development was that 3 more waterways – NW 16 Dhamra stretch of Brahmani-KharsuaTantighai- (Barak river), NW 44 (Ichhamati river) and NW 94 Pandua Nala-Dudhei Nala-Kani Dhamra-river (Sone river) became operational during 2019-20, system, -Charbatia stretch of East coast making the total navigable waterways to 16. canal, Charbatia-Dhamra stretch of Matai river and In India, Iron ore, coal and coke, steel, limestone and Mahanadi delta rivers. fly ash are the major commodities transported on 4.6 Maharashtra Waterways: Maharashtra has 4 National Waterways constituting around 90 % of the operational NWs which are NW-10 (Amba river), total cargo. The balance 10% comprises construction NW-83 (Rajpuri creek), NW-85 (Revdanda creek/ material and other commodities such as fertilizers, Kundalika river) and NW-91 (Shastri river/Jaigad fort food grain and project cargo (Figure 6). The details of creek). Maharashtra Waterways constituted the National Waterways which are in operation is approximately 33% of the total traffic handled on all given here. National Waterways in the country in 2019-20.

Figure 4. Cargo quantity moved through coastal routes in million MT

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Figure 5. ‘First five’ National Waterways 4.7 Goa Waterways: Goa has 2 operational National protocol routes of the other country. Six ‘Ports of Call’ Waterways (NW-68 Mandovi river and NW-111 have been declared in each country under the PIWT&T. Zuari river). Approximately 3.50 million MT of traffic was moved 4.8 Gujarat Waterways: Gujarat has also 2 operational through the IBP route in 2019-20. Traffic on the IBP National Waterways i.e. NW-73 (Narmada river) and route predominantly consists of fly ash (about 96.56% NW-100 (Tapi river). The Gujarat waterways of total cargo) movement from Kolkata/Haldia to constituted 42% of the total traffic on all National destinations based in Bangladesh, basically driven Waterways in 2019 - 20. by the raw material requirement for the cement plants 4.9 The Indo-Bangladesh Protocol Route : Under the located in the region. Indo – Bangladesh protocol map protocol on Inland Water Transit and Trade (PIWT&T) is as per Figure 7. signed between India and Bangladesh, inland vessels 5.0 Benefits of Coastal Shipping and Inland of one country can transit through the specified Waterways It is well acknowledged that coastal shipping and Inland waterways offer significant benefits over road and rail transport, and the same are discussed. Lower expenses: According to the World Bank, which is financing the National Waterways Project, the freight to be incurred in transportation of one tonne of material though waterways is economical compared to railway and highways (Figure 8). As per the report submitted by RITES on ‘Integrated National Waterways Transportation Grid’, one litre Figure 6. Traffic on National Waterways of fuel moves 24 tonnes-km on road, 95 tonnes-km on

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rail and 215 tonnes-km on inland water transport. Waterways have the potential to revolutionise the Suitable for ODCs and bulk goods: Maritime transport is transport sector and it has been receiving significant attention in recent times. Waterways transport can very effective for carrying over-dimensional cargo contribute at least 2% to the Country’s GDP and bulk goods like coal, cement, fertilizers, chemicals, hazardous cargoes, POL, roll-on-roll off. It 6.0 Efforts to Promote Coastal shipping and Inland requires minimum land acquisition and low Waterways infrastructure costs. River vessel carrying ODC is November 12, 2018 was a historic day for the Indian shown in Figure 9. logistics sector, when MV Rabindranath Tagore vessel with 16 TEUs (20 ft) containers on-board Fuel efficient and eco-friendly: Carbon dioxide emission sailed on inland waterways and reached at Varanasi, by coastal shipping is roughly half of that by rail the country’s first multi-modal terminal on the river transport and about 1/ th by road transport. 6 Ganga. This initiative became the country’s first Lower traffic congestion and lesser fatalities: Modal shift to container movement, post- independence on inland coastal shipping helps reduce traffic on the already vessel. Several initiatives and policy decisions congested roads. Road and rail movements account aimed at promoting domestic movement of cargo for considerable number of human and livestock utilizing Inland waterways and coastal shipping, casualties; in the year 2017, there had been an have been taken to reduce logistics cost. estimated death of 17 people every hour in road 6.1 Structural Line-up accidents throughout India.

Generating business and employment: As an alternate mode Jal Marg Vikas Project (JMVP): For capacity augmentation of transportation, it can generate a huge employment. of navigation and to enable commercial navigation of According to World Bank Economic Analysis, about vessels with capacity of 1500-2000 MT on NW1, JMVP 1.5 lakh direct and indirect employment opportunities was approved in January 2017 which included will be created by interventions under the ‘Jal Marg development of fairway, Multi-model terminal Vikas Project in Uttar Pradesh, Bihar, Jharkhand and (MMT) at Varanasi (Figure 10), Haldia and Sahibganj, West Bengal. hi-tech river information system, river navigation

Figure 7. Indo - Bangladesh protocol route map

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ports on vessel andcargo related charges on coastal movement. For Ro-Ro car carriers, eligible discount is upto 80%. Waterways usage charges: Such charges on all the national waterways have been waived off w.e.f. July 2020 for Inland cargo vessels and cruise vessels. Priority berthing: The policy for coastal vessels has been Figure 8. Transportation expenses by three modes notified to reduce their turnaround time. system, digital global positioning system, night GST reduced on bunker fuel: It has been reduced from navigation facilities, construction of navigational lock 18% to 5% to help the country’s fuel sellers compete at Farakka. The project is expected to be completed by with other lower-tax ports in Asia. 2023. Centre for Inland And Coastal Maritime Technology: It has Sagarmala Project: An initiative by GOI to enhance been setup at IIT Kharagpur to serve as the technology the performance of logistics sector in India. The arm of the Ministry of Shipping to provide research, programme envisages unlocking the potential of testing and experimentation facility to IWAI, CSL and waterways and the coastline. The port-led major ports. development under the project is given in Table 2. Introducing the Major Ports Authorities Bill 2020: This The programme aims to reduce the logistics costs by bill has been introduced to replace the Major doubling the share of domestic waterways in the Port Trust Act, 1963 for providing more modal mix from the current 7%. autonomy to the ports. Respective Boards of major ports are now to be allowed to fix tariffs / Roll-on and Roll-off (Ro-Ro) Waterways Projects: To SORs for services provided and use of port assets. promote ferry services where road connectivity has been a challenge, operation of Ro-Ro ships designed Coastal Economic Zones: Under the Sagarmala to carry wheeled cargo, such as cars, trucks, semi- Programme, comprising of a group of coastal districts trailer trucks, trailers and rail-road cars driven on or districts with a strong linkage to ports in the region and off the ship on their wheels or using a platform are also envisaged to tap the synergy with the planned vehicle, has been commenced on various waterways industrial corridor projects. such as between Ghogha and Dahej in Gulf of 7.0 Fertilizer despatches through Maritime Cambay and on NW -2 between Dhubri and Transportation - An Industry Outlook Hatsingmari. The highly complex nature of the fertilizer 6.2 Policy Initiatives movement in India, could well be gauged from the Cabotage Relaxation: It has been granted to foreign flag fact that the 55 million MT fertilizers (including vessels on coastal cargoes for commodities of imports) need to reach the farming fields in the 739 agriculture, fisheries, horticulture, animal produce, districts under the 28 states, 8 union territories at etc. subject to the condition that fertilizers should the right time, at right price, in right measure as per constitute 50% of the coastal cargo taken on-board at the local requirements. the beginning of the coastal leg. It has helped reduce The fertilizer consumption not being evenly coastal shipping rates. Indian seaports like distributed round the year, majority of the Krishnapatnam and Visakhapatnam are attracting a movement to the field happens during 8 months’ share of cargo which was previously transhipped at period i.e. May - December, which poses a challenge Singapore or Colombo. to the industry. The inadequacy of transportation Discount of minimum 40%: It is being offered by major infrastructure remains a limiting factor in smooth

Figure 9. River vessel carrying ODC Figure 10. Varanasi MMT developed under JMVP

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Table 2. Port - led development under Sagarmala project

distribution of fertilizers, having direct impact on 2020 has made it mandatory for vessels to reduce agriculture production. Year after year, 55 Million sulphur emission by 85% (permissible sulphur MT fertilizers need to move out of the 50 fertilizer content in fuel fixed as 0.5% from earlier level of 3.5%) plants (located in 15 states) and the 21 ports (situated thereby escalating the operating cost. in 8 states) travelling the length and breadth of the ♦ Time bound supply of goods through this mode country to the 2.27 lakhs sale points (retailers and due to high transit time remains a challenge, apart village level cooperative societies), through the from the longer ‘working capital cycle’ and the available transportation channels. With no significant associated financial implications due to multiple addition in existing rail / road capacities, the railways uncertainties involved. Higher transit time also raises perennially facing shortage of rolling stock, it is concerns on cargo quality, with high risk of moisture imperative that new avenues are to be explored. It is absorption in case of fertilizers being highly in this context, fertilizer movement through coastal hygroscopic in nature. and inland waterways route assumes higher significance. Presently, around 85% movement of ♦ ‘’No return traffic’’ has proved to be a bottle-neck finished fertilizer is by rail while rest is by road, with in operation of coastal /river vessels affecting the Coastal shipping and inland waterways accounting operational costs. for less than 0.5%. A conservative estimate of the ♦ Absence of uniform tariff has been another potential for movement of fertilizers through challenge. The coastal vessel operators charge waterways by the years 2025 would be 3.5 million different rates for same origin-destination pairs from MT (Figure 11). the customers depending on the availability of ships. 8.0 Concerns for Coastal Shipping and Inland Often, the rates offered are ‘opportunistic’. On the Waterways longer run, this may not be a healthy situation for the operators as well as the customers. There are many challenges in movement of commodities inclusive of fertilizers through coastal ♦ Ceiling of freight re-imbursement by Department shipping and inland waterways (Figure 12). of Fertilizers under the coastal multimodal movement as rail freight upto the ‘nearest rake point to the final ♦ There is lack of dedicated infrastructure at ports destination’ is an impediment, whereas the need of and jetties viz. space for stuffing or de-stuffing, berths the hour is to incentivize switching from conventional for coastal ships, inadequate draft, no night mode to coastal mode. Railways’ recent decision to navigation, below-par handling facilities at the waive ‘busy season surcharge’ made it tougher for loading and unloading points, have all plagued the coastal movement, rendering many viable growth of coastal and inland waterways traffic. destinations in the earlier regime now ‘un-viable’. ♦ Connectivity between the hinterland and minor ♦ Excessive siltation in the channels, drastically ports or river jetties is poor compared to major ports. reducing draft availability, poses a big challenge to ♦ High operational costs due to high duties and taxes operation of higher capacity vessels/barges through on bunker fuel and high manning scale of coastal waterways, especially in NW-1. vessels render the coastal shipping as non-competitive ♦ Night navigation through the National waterways vis-à-vis road and rail transportation. is yet to be established, resulting in unduly long transit ♦ Low sulphur regulation imposed by International time and the associated challenges in movement of Maritime Organization (IMO) effective from 1st January cargoes like fertilizers.

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cover larger area – Compare this to rakes with parcel sizes of 2,600 MT - 3,900 MT delivered at one location. ♦ The lower cost of transporting bulk commodities, will benefit the entire chain of industries availing these modes, especially the India’s manufacturing sector already struggling under high logistics costs, and the benefits accrued could be redeployed in ways and means to help fuel economic growth. ♦ Recently, a GOI designated Task Force had estimated a 3.50 million MT potential for movement of fertilizers by the year 2025 through the coastal and inland waterways to various states. These modes are also expected to lower the annual fertilizer logistics cost at the national level by Rs. 70 -105 crore. 10.0 Transportation of Fertilizer through Water Channels : IFFCO’s Experience Figure 11. Fertilizer and Water Transport 10.1 Coastal Shipping

♦ Lack of infrastructure tools and tackles for IFFCO has been undertaking containerized, coastal unloading, access for labourers for unloading the bags, movement of bagged fertilizers from its Kandla & storage facilities at the jetty locations, road plants since the year 2007, the volumes have grown since then, 2018-19 recording the highest connectivity to the jetties, etc. all remain as major movement at 3.04 lakh MT (Table 3) partially triggered challenges. by the acute rake shortages during the year. 9.0 The Silver Lining Table 3. IFFCO’s fertilizer movement through coastal route While the coastal and inland waterways mode may not be cheaper for all the destinations compared to Year 2017-18 2018-19 2019-20 the conventional modes, till the volumes grow Quantity (MT) 137,719 304,463 129,184 significantly, the thrust for ramping up maritime transport to a larger scale is driven by the following The supplies from Paradeep were to destinations in definite advantages that would accrue on the longer Tamil Nadu and Kerala, through Katupalli, Tuticorin run. and Cochin ports. The supplies made from Kandla ♦ In the current scenario of over stressed rail and had been to Kerala, Tamil Nadu, Karnataka and West road infrastructure, the coastal shipping and inland Bengal through Cochin, Tuticorin, Mangalore and waterways could be a plausible solution to reduce Haldia ports. In 2017-18, one parcel of 12,000 MT the burden on the network. ♦ These modes can contribute significantly to faster evacuation and enhanced production in the units located along the coast, especially when the other modes are already under stress. ♦ Evolution of these modes would promote infrastructure development along the coastal line and the river banks, triggering multi-dimensional growth in various sectors. ♦ Once reasonably developed, these modes have the potential to reduce the logistics cost and lighten the freight subsidy burden on fertilizers and other commodities under PDS. ♦ Coastal and inland waterways modes have a distinct advantage of delivering smaller parcels to remote locations along the coast line or water banks having limited or even NIL road access; smaller parcels mean with same quantity it can effectively Figure 12. Challenges facing by water transport

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was despatched in break-bulk ship to Mangalore and consuming points by road in West Bengal. This time, Tuticorin ports; despatch being in 50 kg bags stuffed IFFCO did not face any operational issues and the into 2 tonne jumbo bags, handled through hooks at trial was considered a success. the sending and receiving ports (Figure 13). While there is tremendous potential in the multi- Despatches through break bulk shipments could not modal movement of fertilizers using the inland be pursued further due to viability issues, cargo waterways, there is much work to be done in this damages, handling losses, etc. On the contrary, the field, before it can develop as a self-sustainable mode quality of supplies in containers was highly for transportation of fertilizers. Government of appreciated by the farmers/ dealers/ sales personnel, India through the Ministry of Shipping and other as factory fresh, blemish less, untouched bags reach Departments have initiated various concrete them, with ‘NO’ hook holes and ‘NIL’ losses as measures, projects, policy interventions, etc. for shown in Figure 14. Containerised supplies not only furthering the freight movement through inland helped IFFCO to tide over the crisis of shortage of waterways. The efforts initiated are certainly rakes during previous years, it also gave extreme laudable and IFFCO would be keen to be associated flexibility on the parcel sizes shipped; even one in these endeavours for expanding the operations single TEU ( 25 MT to 28 MT) could be delivered to a through coastal/inland waterways to still higher location, which was a definite advantage. Based on levels. the experience gained over the years, IFFCO still 11.0 Future Outlook: The Sky is Pink continues its efforts to widen the domain of The consumption of fertilizers is bound to increase, to containerized supplies from its coastal plants. keep pace with the ever growing demand for production of food grains to feed the 1.38 billion 10.2 Inland Waterways multitude which is expected to grow exponentially to During the year 2013 -14, IFFCO had participated in a 1.52 billion by 2030. It is imperative that the trial run with the support of Department of Fertilizers distribution of fertilizers also need to grow and Inland Waterways Authority of India (IWAI), for correspondingly. The human race is facing the movement of urea from IFFCO Phulpur plant to West challenge of conserving the fossil fuel resources, which Bengal through NW-1, the first attempt though not is otherwise fast depleting. Over used roads, very successful, was a learning experience in terms congested rail traffic, shortage of wagons, rising fuel costs, ever increasing transportation costs, etc. have of the challenges associated with inland water all been the order of the day. The solution probably movement through NW-1. lies in promoting the coastal and inland waterways In November, 2018, IFFCO had again taken part in movement. These modes, though in the present form, another trial run on NW-1 using multi-modal have not been able to make the cut into cargo logistics transportation (i.e. road-waterways-road), for in general and fertilizer movement in particular. The movement of ‘bagged urea in containers’ from its short, medium and long term plans for encouraging Phulpur plant to destinations in West Bengal. Eight coastal shipping and inland waterways are illustrated containers of 20 ft (TEUs) stuffed with urea at in Figure 16. A slew of measures need to be initiated Phulpur, transported by road to newly constructed for addressing the concerns of the Industry and to Varanasi Multi-modal Terminal at NW-1, later promote/encourage shifting from the conventional loaded on to river vessel MV Rabindranath Tagore rail–road mode to coastal and inland river movement: (Figure 15) which sailed through NW-1 to Haldia ♦ Incentivization and promotion of the energy jetty, off-loaded, and delivered the urea at efficient, eco-friendly and less polluting modes,

Figure 13. Loading of IFFCO fertilizer in break bulk ship at Kandla

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Figure 14. Full cycle of multimodal containerized movement of fertilizer upto the retail points rather than restricting the freight re- terminals with unloading facilities capable of imbursement, is vital. handling jumbo bags and containers. Unloading ♦ Freight re-imbursement process should be made of smaller quantities, at multiple points, within simpler and electronic bill settlement facilities be short distances would mean lesser secondary lead developed, for the fertilizer industry. of surface transport. ♦ Disparity in GST rates on various modes (i.e. rail, ♦ High transit time is a major deterrent to growth road & sea movement @ 5%, multimodal @12% on this mode. The simple solution lies in and inland waterways – NIL) needs to be removed developing infrastructure for night navigation on to create a level playing field. NWs. ♦ Ensure requisite draft in the National Waterways, ♦ Priority/dedicated berthing arrangement is round the year by both capital and maintenance required for inland/coastal vessels, unloading dredging. Current scenario of either ‘No Water’ infrastructure and road connectivity to landing or ‘Too much Water’ in the rivers depending on points, etc. the season has to get transformed to `consistantly ♦ Containerized movement of fertilizers through uniform draft in the channel’ throughout the year, coastal/inland waterways can be 15-20% cheaper irrespective of the season. than bagged and jumbo bag based waterways ♦ Policy initiatives for ensuring enhanced movement. Automated (pumping) bulk loading availability of river sea vessels / barges, which in containers can reduce turnaround time and presently is a limiting factor. manual handling costs. ♦ Develop more number of mechanized, river-side ♦ Coastal ship operators should also create a

Figure 15. River Vessel MV RN Tagore carrying IFFCO cargo to Haldia through NW-1

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Figure 16. Future plans for coastal shipping/ inland waterways

congenial environment by ensuring regular their respective domains, to achieve highest possible voyages for the fertilizer industry to rely on this efficiency and efficacy in Indian logistics sector. There mode, for un-interrupted despatches of fertilizers. is abundant un-tapped potential and the opportunities are plenty for grabbing, but it would ♦ Efforts should be made by the stakeholders to take some grit and an open mind-set for adopting to identify such opportunities, where cargo this mode. Nevertheless, as the saying goes movement through waterways could be initiated “Opportunities are like sunrises. If you wait too long, forthwith, with least effort and little investments. you miss them.” IFFCO Paradeep could be a classic example of this sort. Dredging of a small stretch, in NW-64/NW- References 5 near the IFFCO Pradeep waterfront in Mahanadi Annebonia, Lavanya Ravikanth and Ravi Kumar, K. river, can immediately result in about 1.50 lakh S. 2016. Benefits of coastal shipping: scope for sea MT annual fertilizer traffic through NW-1, to the change in domestic freight transportation in India. states of West Bengal, Jharkhand, Bihar and Uttar Working Paper 147/2016. Pradesh. Barges carrying fertilizers from IFFCO Paradeep can also pick urea sourced from its Annual Report. 2019-20. Ministry of Shipping, Phulpur plant as ‘return-cargo’ for the same Government of India, New Delhi. states. Annual Report on National Waterways Traffic. 2019- ♦ Linking NW-1 to NW-2 and NW-6 using IBP route 20. Inland Waterways Authority of India, New Delhi. through Bangladesh to form a National Grid in Department of Fertilizers. Draft note on rationalization the Eastern Region of the country. NW-5 of fertilizer logistics. Government of India, New Delhi. (extending up to Paradeep, Bay of Bengal) can be Fertiliser Annual Report. 2018-19. Department of joined in the National Waterway grid through Fertilizers, Government of India, New Delhi. backwaters of Hooghly and tidal canal. The conjoined National Waterways Grid (excluding Fertiliser Statistics. 2018-19. The Fertiliser Association IBP Route) can serve 11 states i.e. Uttar Pradesh, of India, New Delhi. Bihar, Jharkhand, West Bengal, Assam, Meghalaya, Inland Waterways Authority of India (IWAI). Short Arunachal Pradesh, Tripura, Mizoram, Manipur Brief on Indo Bangladesh Protocol Route. and Odisha. Pillai, Asha and Paul Jose. 2015. Critical examination of 12.0 Conclusion the season for the under utilisation of coastal shipping in India, The acceptability of Coastal shipping and inland AMET International Journal of Management. waterways modes depend mainly on commercial Sagarmala-Post-November. 2019-Edition-Viewpoint. viability, especially in the present atmosphere of stiff https://www.faidelhi.org/ competition. Situation warrants that Coastal shipping and inland waterways movement are effectively http://sagarmala.gov.in/ integrated with the surface transport modes and a http://shipmin.gov.in/ synergy is developed between all modes and that https://lpi.worldbank.org/international/global would call for a concerted effort by all stakeholders in

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