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IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad

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IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad __________________________________________ IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad Volume I: Report Part A June 2016 IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad Report Part A This report has been prepared by: HPC Hamburg Port Consulting GmbH UNICONSULT Container Terminal Altenwerder Universal Transport Consulting GmbH Am Ballinkai 1 Container Terminal Burchardkai 1 21129 Hamburg, 21129 Hamburg Germany Germany SubConsultants: IMS Ingenieurgesellschaft mbH, Stadtdeich 7, 20097 Hamburg, GERMANY Ramboll, The Epitome Building No.5, Tower–B, DLF Cyber Terrace Phase-III, Gurgaon-122 002, India UNICONSULT Universal Transport Consulting GmbH Phone: +49-40-74008 106 Fax: +49-40-322764 E-mail: [email protected] Web: www.uniconsult-hamburg.de Copyright © by UNICONSULT Universal Transport Consulting GmbH 18 May 2016 IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad iii Table of Contents Page List of Figures ........................................................................................................................................... 1 List of Tables ............................................................................................................................................ 5 List of Abbreviations .............................................................................................................................. 10 1 Management Summary ................................................................................................................. 11 Waterway & Infrastructure ............................................................................................................. 11 Market Survey Methodology ......................................................................................................... 11 Market Assessment ........................................................................................................................ 12 Commodity Share ........................................................................................................................... 12 Thermal Coal ............................................................................................................. 12 Construction Materials............................................................................................... 12 Industrial inputs ......................................................................................................... 13 Agricultural inputs and Food products ...................................................................... 13 Consumer Goods and Containers .............................................................................. 13 Transport Forecast model ............................................................................................................... 14 Infrastructure Cases ........................................................................................................................ 14 Transportation Costs ...................................................................................................................... 15 IWT Promotion and Incentives ...................................................................................................... 15 Freight Market Projections ............................................................................................................. 16 Socio Economic Advantages of Modal Shift to IWT ..................................................................... 20 2 Macro-Economic Growth and Policies ........................................................................................... 20 2.1 Background economic growth ................................................................................................ 21 2.1.1 Uttar Pradesh ............................................................................................................. 21 2.1.2 Bihar ........................................................................................................................... 24 2.1.3 Jharkhand................................................................................................................... 26 2.1.4 West Bengal ............................................................................................................... 29 2.1.5 Madhya Pradesh ........................................................................................................ 32 2.1.6 Summary .................................................................................................................... 34 2.2 Indian Government IWT policies and subsidies.................................................................... 37 2.2.1 Background ................................................................................................................ 37 2.2.2 Scheme for Incentivizing Modal Shift of Cargo (SIMSC) ............................................ 40 2.2.3 Possible application of policies and subsidies ........................................................... 41 2.3 Policies and subsidies to the favor of IWT in Europe ............................................................. 42 2.3.1 The European Union Marco Polo Program ................................................................ 44 2.3.2 The EU funding program TEN-T (Connecting European Facilities CEF) ..................... 49 2.3.3 The EU funding program INTERREG IV A Upper Rhine .............................................. 50 2.3.4 The EU funding program NAIADES ............................................................................ 52 2.3.5 The EU funding projects PLATINA and PLATINA 2 ..................................................... 54 2.3.6 Conclusions on the Marco Polo and other EU incentive programs in respect of inland waterway transport in India ...................................................................................... 56 2.4 Policies and subsidies to the favor of IWT in China ................................................................ 57 2.4.1 Modal shift from land transport to waterway transport........................................... 58 2.4.2 Encouraging establishment of inland waterway transport service companies......... 61 2.4.3 Encouraging recycling of ship wastes ........................................................................ 61 2.4.4 Technological innovation of inland water vessels ..................................................... 63 2.4.6 Traffic control of inland water transport .................................................................. 67 IWT Sector Development Strategy and Business Development Study for Capacity Augmentation of National Waterway 1 from Haldia to Allahabad iv 2.4.7 Summary on incentives and first conclusions from the Chinese example ................ 68 3 Regional Demand ........................................................................................................................... 70 3.1 The NW-1 hinterland ............................................................................................................ 70 3.1.1 Haldia-Farakka sector ................................................................................................ 70 3.1.1.1 Zone 1: Kolkata-Howrah ............................................................................. 70 3.1.1.2 Zone 2: Haldia ............................................................................................. 71 3.1.1.3 Zone 3: Durgapur-Raniganj-Burdwan ......................................................... 72 3.1.1.4 Zone 4: Rampurhat-Nalhati-Pakur-Berhampore ........................................ 73 3.1.1.5 Zone 5: Indo-Bangladesh Protocol Route ................................................... 73 3.1.2 Farakka-Munger sector .............................................................................................. 74 3.1.3 Ballia-Allahabad sector .............................................................................................. 77 3.2.1 Terminals ................................................................................................................... 79 3.2.1.1 Terminal capacities ..................................................................................... 79 3.2.1.2 Hinterland connectivity of existing terminals ............................................ 80 3.2.2 Facilities other than terminals ................................................................................... 81 3.2.2.1 Storage infrastructure ................................................................................ 81 3.2.2.2 Haldia-Farakka sector ................................................................................. 81 3.2.2.3 Farakka-Munger sector .............................................................................. 82 3.2.2.4 Munger-Ballia sector .................................................................................. 82 3.2.2.5 Ballia-Allahabad sector ............................................................................... 83 3.3 Special economic & industrial zones .................................................................................. 84 3.4 Facilities and infrastructurerequired to enhance modal shift ................................................ 86 3.5 Eastern 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