Mobility Component

Introduction

As expands from a core city into a polycentric metropolitan area, providing alternative connections among various employment and residential sub-centers is becoming increasingly important. GVMC has taken important initial steps towards developing a more comprehensive multimodal transportation system, including construction of new Bus Rapid Transit lines and the planned bypass of National Highway No. 5. Integration of pedestrian and bicycle facilities into major arterial roads in the city center has also been prioritized under Vizag’s Smart City Challenge program.

From the perspective of the broader VUDA Metropolitan Region, additional mass transit lines are required to link the multiple existing and new subcenters, thereby facilitating the flow of goods and people among employment, service and residential areas. Under the preferred development scenario (see section 8.1), VMR’s center of gravity is anticipated to continue to shift northwards with the development of Bhogapuram, Bheemilipatnam and Madhurwada. A rapid light rail line will be necessary to link Bhogapuram with these areas and the city center. Additional BRT lines will help connect satellite centers such as and Madhurwada to employment areas.

In the context of this ambitious transport service expansion, intelligent transport systems can help improve the efficiency of existing works as well as enable future improvement plans to achieve higher benefit-cost ratios. First, ICT can be used to upgrade the two existing BRT lines. Second, real time vehicle tracking systems and signal prioritization can be integrated into plans for new mass transit lines, including the MRT. Third, major arterial roads in the city center can be progressively redeveloped over time as technology-enhanced multimodal corridors. Finally, Visakhapatnam can take advantage of ’s electricity surplus to set a national standard for electrification of transport of across all modes.

Technical Approach

The overarching approach to transforming Vizag’s mobility system is based on a number of programs and sub-programs. Each of the sub-programs, in turn, includes one or more capital investment projects. The major programs are as follows:

Electrification of Transport

With an extensive network of thermal power plants, among other sources of energy, Andhra Pradesh is a net power exporter to other Indian states. VMR is also rich in power, with plans to double the output of the Simhadri NTPC power plant from 2,000 MW to 4,000 MW and a proposal to build another 4,000 MW plant at . While solar power is expanding rapidly in the VMR, the large majority of electricity for industrial, institutional and domestic use is generated from coal. Visakhapatnam has the opportunity to establish itself as a green energy leader in by using its power surplus to convert electrify vehicles of all types. This ambitious program would involve a number of sub-programs:

 Electrification of two-wheelers and three-wheelers — A mandatory, phased transfer from vehicles using combustion engines to electric scooters, bicycles and three- wheelers. Local manufacturing of vehicles can be promoted, perhaps in partnership with multinational firms specializing in electric vehicles. Targeted incentives for low-income households may be required to ensure compliance.  Electrification of mass transit, including BRT and MRT — New electric rapid bus and metro service, replacing existing buses with electric vehicles. Includes charging facilities in bus depots and/or at bus stops.  Electric vehicle-only lanes along major arterials in the city center — Another way to encourage the transition to electric vehicles is to give them priority on major arterial streets. An electric vehicle-only lane could accommodate cars, two-wheelers and three- wheelers.

Each of these sub-programs would involve a combination of “hard side” inputs (capital investment projects) and “soft side” inputs (policies and regulations in order to be successful. They are also require between 5 and 10 years to implement, necessitating a phased approach over time. The anticipated impacts include a dramatic reduction in the emission of greenhouse gases related to transport and a corresponding reduction of Vizag’s carbon footprint.

In the meantime, two discrete capital investment projects that can be implemented in the short term include:

 Electric Circulator Bus along the Beach Road—This new electric bus service would run along the beach road from to (and perhaps eventually to Bheemilipatnam). Demonstrating the feasibility of electric buses in Vizag, this project would help promote tourism along the urban coastline. The bus line can be integrated into the Area-Based Development project envisioned under the Vizag’s Smart City Challenge.  Electrification of BRT Route — New electric rapid bus service, replacing existing buses with electric vehicles. Includes charging facilities in bus depot and/or at bus stops.

Upgrading of Existing Bus Rapid Transit System

The second major program for development of VMR’s mobility system is the upgrading of the BRT lines. Two projects are proposed: Upgrading of Pendurthi BRT (in operation) and Upgrading of Health Valley BRT (under construction). Both projects include the same components, namely, retrofitting of bus stops, a real-time bus tracking system and bus priority signalization. GPS bus transmitters would be used in conjunction with smart phone apps, Passenger Information Displays on buses and at bus stops to provide real-time information about bus arrival time to passengers. In addition, the transmitters on the buses would be used to provide green traffic signals to buses approaching intersections, speeding up bus travel and reliability. The details of the projects are set out in the “Connect Vizag” project action plan submitted under Task 5 of this technical assistance.

New Mass Transit Development

In addition to upgrading existing BRT, new BRT and MRT lines need to be developed. The smartest sub-program in support of new mass transit is the advance acquisition of use and development rights to the land for the future transit service. This is an ongoing phased program that will include multiple land transactions for future BRT and MRT lines. Advance action in this area will lower the development costs and therefore improve the financial feasibility of these major public transport projects.

New BRT lines besides those that have been planned or are under construction to date may include a line from NAD Junction (National Road 5) to Anakapalle as well as a spur from that line to the center of . As discussed above, electrification of rapid buses will contribute to reducing Vizag’s carbon footprint.

The Metro Rapid Transit plans should also be revised to include a connection to the new . A rapid (<60 minutes) transit connection to the Vizag’s central business district is critical for the future success of the airport. The MRT development program will also include such discreet projects as development and operationalization of individual lines (Bhogapuram to , Maddilapalem to NAD Junction, railway station to Gajuwaka viz Scindia, etc.) as well as construction of rolling stock and other equipment.

Redevelopment of Major Arterial Roads into Multimodal Corridors

A central part of Vizag’s transformation into a smart city is the redesign of its major arterial roads into multimodal corridors. The 6 km pilot project for this program is currently being designed under Vizag’s Smart City Challenge. The pilot can be rolled out over a 4-8 year period to include all of the major arterials in Vizag city center. The vision plan for the city center (see Component 8.3) shows the top-priority arterials that should be redeveloped in the first phase. In addition to major roads connecting the railway station to the central business district, R. K. Beach Road, Old Town and Kailasgiri, the Phase 1 roads should include a new mixed-use boulevard along the port edge at Lavender Canal (see Component 8.3). Discreet projects within this program include:

 Redevelopment of selected segments of major arterials  Redevelopment of the port edge into a mixed-use development between the port mouth and the Vizag railway station  Redevelopment of RTC Complex to integrate MRT, BRT, office and retail development

Old Airport Expansion and Transition

The rationale for the transformation of the Old Airport over the medium term into a vibrant mixed-use urban community is set out in more detail in Component 8.3. This major, multi-year program includes transport projects, other infrastructure improvements as well as real estate investments. In the short run, the existing passenger air terminal should be expanded to increase the capacity of the facility, allowing it to respond to passenger demand while the new airport at Bhogapuram is underdevelopment. Once Bhogapuram is in operation, the old airport can transition to a new use as a mixed-use urban center including extensive parkland in this flood-prone area. The transport projects necessary to facilitate that include rerouting the MRT to pass through the center of the area; construction of local street network; and development of local public bus routes.

The programs, sub-programs and projects that comprise the mobility component are set out in the following table. Summary of Projects

Program Sub-program Project Project description Business Model and Financing Strategy Electrification of Electrification of two- Electric circulator bus New electric bus service, Possible Revenue Streams / Transport and three-wheelers along beach road including electric vehicles and Project Financing Sources: charging facilities in bus depot  Monetizing the outdoor and/or at bus stops advertisement potential at Electrification of mass Electrification of Pendurthi New electric rapid bus service, bus stops/depots, traffic rapid transit, including BRT route replacing existing buses with signals and on transport BRT and Metro Rail electric vehicles. Includes vehicles (i.e. buses) itself. charging facilities in bus depot  Commercial utilization of and/or at bus stops vacant land resources near Electric vehicle-only bus stops/depot for retail, lanes along major parking, advertisement, etc. arterials in the city  Commercial sponsorship / center naming rights for the bus Upgrading of Existing Upgrading of Pendurthi stops as well as transport Bus Rapid Transit BRT, including retrofitting vehicles / buses. System of stations and bus priority  Increase in user charges / signalization bus fare by nominal value Upgrading of Health Valley to fund enhanced BRT, including retrofitting service(s). of stations and bus priority signalization New Mass Transit Advance Acquisition The land acquisition or Development of Use and obtaining future development Development Rights rights are activities more to Future BRT and suitable for execution by MRT Lines GVMC or other local entities using traditional procurement method(s).

MetroRail Rapid Revision of MetroRail plan Same as above. Transit Development to include connection to Bhogapuram Airport Advance acquisition of use and development tights to MRT routes Program Sub-program Project Project description Business Model and Financing Strategy Development of Line 1 The project is more suitable to be delivered through a DBFOM procurement method; however, experience have shown that MRT projects are financially not viable and typically require substantial contribution from the public sponsor(s). The private sector can bring its expertise for design, construction, operations and maintenance of the MRT facility for efficient delivery of services.

Development of Line 2 Same as above.

Purchase of equipment, Consideration should be given including rail cars to enter into long-term leasing of rail cars with or without associated responsibilities for maintenance. Redevelopment of Redevelopment of Major The project is more suitable to Major Arterial Roads Arterial 1 be delivered through a into Multimodal traditional procurement method Corridors (i.e., Design-Bid-Build or Design-Build); however, potential opportunity to leverage private sector financing and expertise may exist if there is possibilities for commercial development adjacent to the proposed project site.

Redevelopment of Major Same as above. Arterial 2

Redevelopment of Major Same as above. Program Sub-program Project Project description Business Model and Financing Strategy Arterial 3

Redevelopment of Major Same as above. Arterial 4

Redevelopment of port The project can be implemented edge into mixed-use through Public-Private development between port Partnership on Design-Build- mouth and Vizag train Finance-Operate-Maintain station (DBFOM) / concession basis for the redevelopment of targeted area through commercial development of the port and train station and surrounding GVMC / Government owned properties.

Redevelop existing RTC Redevelopment of site to The project can be implemented Complex to integrate MRT include multiple transport through Public Private and BRT modes and commercial uses Partnership on DBFOM / concession basis. The private sector partner can recover its investments by tapping the real estate potential of the project site. Possible revenue streams for the Concessionaire would be lease rental from retail / commercial spaces, parking charges from personal / commercial vehicles like three- wheelers / taxis / etc., indoor advertising, etc. Old Airport Expand existing terminal at Expansion of existing terminal The project can be implemented Expansion and old airport at old airport for short- to through Public Private Transition medium-term use using low- Partnership on DBFOM / cost, reusable construction concession basis. The private materials sector partner can recover its Program Sub-program Project Project description Business Model and Financing Strategy investments by leveraging the real estate within the airport terminal complex.

Redevelopment of Old Development of on-site Includes re-routing MetroRail The project can be implemented Airport to Mixed transportation network to pass through center of new through Public Private Urban Uses community Partnership on a Joint Venture Development of on-site Model. The public sponsor (land water/wastewater network owning agency) will contribute Development of on-site land as its equity share and the smart microgrid private sector will bring in its equity share and arrange debt Real estate development funds to finance the capital projects expenses. Consideration should be given to ensure that the returns on investment (i.e. profit) generated from the project are to be shared in proportion of the equity from both the parties.