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Port Development and Integrated Inter-Modal Transport in India

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Port Development and Integrated Inter-Modal Transport in India Port Development and Integrated Inter-Modal Transport in India Amit Kumar Ghosh, IAS Joint Secretary (Highways), Ministry of Road Transport & Highways Government of India March, 2018 Agenda • India’s performance on Logistics Performance Index • Root causes impacting logistics performance in India • Initiatives undertaken for Port Development (Sagarmala) • Initiatives undertaken for Integrated Inter-Modal Transport (Bharatmala) – Development of Highway Infrastructure – Development of Allied Infrastructure •Key outcomes Logistics Performance Index (LPI) - India’s performance LPI Trend – India1 LPI Score card (2016)1 Inferences from LPI Output metrics Input metrics • India improved 47 46 54 35 significantly on key LPI aspects of LPI: 3.42 3.12 3.08 3.08 Timeliness Customs – Efficiency of customs & border management clearance – 65 to Tracking & Infrastructure 38 Tracing (Quality) 2010 2012 2014 2016 – Quality of trade International Logistics and transport LPI Score Rank shipments competence (Cost) (Services) infrastructure – 58 to 36 India has improved its India (LPI #35) LPI ranking – Competence and Germany (LPI #1) significantly (19 places) quality of logistics Singapore (Asia LPI#1) in 2016 services – 52 to 32 1. International LPI score card and ranking 2. LPI reports Source: World Bank Root causes impacting logistics performance • Higher % of road-based freight movement (~60%) leading to Unfavorable higher costs and emissions Intermodal mix – High rail congestion, pricing and rake booking policies • Unorganized and fragmented nature of transporters Inefficient fleet mix – Nature of consumption & production, and policies related to financing & taxation driving fleet mix Under-developed • Lower density of freight carriage ways (4 + lanes) in India transport • Capacity mismatch on road infrastructure and lack of city infrastructure bypasses/ elevated roads Under-developed • Unorganized logistics parks with limited infrastructure material handling • Lack of mechanized material handling facility to enable infrastructure containerized cargo movement • Complexity in documentation and procedures for interstate Procedural movement (relaxed with GST implementation) complexities • Delays in customs clearance at ports driven by complex documentation requirement (eased up since 2015) Key initiatives undertaken to improve Logistics Efficiency • Bharatmala Pariyojana – Development of a network of Economic Corridors and its associated feeder routes to National Highways Development • Corridor approach to enable consistent of infrastructure across the corridor Infrastructure • Sagarmala Program for port development • Development of Dedicated Freight Corridors by Railways • Multimodal Logistics Parks to enable efficient intermodal freight movement • Land Ports to enable land trade with Development neighboring countries of allied • Development of National Waterways to infrastructure enable ecological & economical freight movement • Development of Inter Modal Stations for passengers India has made significant progress in logistics infrastructure development with keen focus on highway projects, MMLPs & freight terminals Initiatives undertaken for Port Development The Sagarmala vision Lowering logistics Reducing the cost of cost of bulk transporting domestic commodities by cargo through locating future optimizing modal mix Reduction of industrial capacities logistics cost near the coast for EXIM and domestic trade with minimal Improving export infrastructure competitiveness by Optimizing time/cost investment developing port of EXIM container proximate discrete movement manufacturing clusters Sagarmala Programme: Vision and Overview “ The reduction of logistics cost for EXIM and domestic trade with minimal infrastructure investment ” Port-led Development Coastal Port Port Port-led Community Modernisation Connectivity industrialisation Development • Capacity • New road / • Industrial • Skill augmentatio rail clusters development n connectivity • Coastal • Coastal • New ports • Up-gradation Economic tourism • Efficiency of roads / Zones projects improvement railway • Maritime • Development • Coastal Clusters of fishing Shipping harbors, • Inland water fish transport processing • Logistics centers parks Potential logistics cost savings of USD 5.3 to 6.1 billion per annum by 2025 Key enablers and initiatives for port-led development ▪ Improve operations efficiency and augment capacity of major ports Port A ▪ Develop 5-6 new ports to cater to cargo traffic growth and reduce logistics cost Modernization ▪ Develop an international transshipment terminal ▪ Increase coastal shipping volumes of key cargo – E.g. Coal, Steel, Cement, to Port reduce logistics cost and decongest rail and road network B Connectivity Eliminate process bottlenecks to reduce container logistics time and cost Improvement ▪ ▪ Port led development of heavy industries – E.g. cement and steel clusters, to leverage Port-led coastal shipping for moving raw materials and finished products C Industrialization ▪ Port led discrete manufacturing to reduce end to end container logistics cost; CEZ development ▪ Create human capital for port-led industrial development through coastal community Coastal skill development and livelihood generation programs D Community Create community development fund to ensure sustainable development Development ▪ Port connectivity enhancement projects under Sagarmala Main container ports Heavy haul Rail line Access controlled freight Existing ports Milk run of ICDs expressways Trans-shipment port Port industrial cluster Eastern DFC National Waterways (NW) Western DFC Dhandhari Kalan Proposed ports Dhappar Panipat Tughlakabad Sadiya Key projects Agra Dhubri Allahabad ▪ 3 new pipeline projects Madhosingh Gwalior Rawtha Kandla ▪ Heavy Haul Rail Corridor / Cord line to Mundra Bhopal connect Talcher to Paradip port Kolkata/Haldia Keonjhar Ratlam IB Valley Hazira Sagar / ▪ DFC spur lines Tajpur Pipavav Talcher Paradip Outer Vadhavan Paradip,Harbour Dhamra ▪ 10 new freight expressways JNPT Vizag ▪ 100+ road and rail connectivity projects Beleke Mormugaori Machilipatnam/Vodarevu ▪ 5 priority National Waterways Ankola Krishnapatnam Ennore ▪ 16 Multi-Modal Logistics Hubs Mangalore Chennai Cochin Puducherry Cuddalore/Sirkazhi Tuticorin Enayam Port-led Industrialization: CEZs and Industrial Clusters Industrial corridor nodes 16 Bulk and 13 discrete manufacturing Major port clusters proposed in 14 CEZs Non-major port Proposed CEZ DMIC BMIC CBIC VCIC AKIC Furniture, Cement, gas based PetChem clusters Kandla Mundra Kolkata Sikka Dahej Light manufacturing Apparel, Automotive Haldia Hazira Pipavav Dhamra Marine cluster Mumbai Paradip Electronics, Apparel, JNPT Gopalpur Power Apparels, Food Dighi Vizag Gangavaram processing, cement, Jaigarh power and Gas Food processing, Kakinada based PetChem steel and PetChem Mormugao cluster refinery KrishnapatnamElectronics, Apparel, Katupalli Food Processing NMPT Gas based PetChem Ennore Chennai Steel, gas based, Marine Cochin Karaikal Furniture Leather and Power Tuticorin Refinery and pet- chem Port connectivity enhancement projects under Sagarmala Rail ▪ 86 Rail connectivity projects (USD 10.19 billion; 6,934 Km) Connectivity have been identified Road ▪ 97 Road connectivity projects (USD. 25.632 billion; 8,523 Connectivity Km) have been identified Multi-Modal Logistics ▪ 16 MMLPs / Inland Container Depots (USD 586 million) have Parks been planned Pipeline ▪ 2 crude oil pipeline projects (USD 230 million) under implementation and 1 product pipeline project in design phase Projects (USD 460 million) Inland ▪ Development of 6 National Waterways (USD 1,371 million, Waterways 3,104 Km) is planned, development of 2 waterways has started Coastal Shipping and Inland Water Transport Sagarmala objectives • Modal share of coastal Existing and projected modal shipping and inland mix Coastal and 6% 12% waterways is currently low 7% Inland waterways 7% • Cost per tonne-km of Pipeline moving cargo by coastal 33% 35% shipping or inland waterway Rail routes can be 60-80% lower than by road / rail 54% • Modal shift can help reduce 46% Road the transport and logistics cost for domestic and EXIM freight 2015 2025 with Sagarmala initiatives Double the share of coastal shipping and inland waterways in India’s modal mix by 2025 Coastal Shipping and Inland Water Transport Traffic Potential Potential of approx. 220 MTPA (Million Metric Tonnes Per Annun) identified MTPA, 2025 100 216-221 Existing (2015) Additional 30-35 8 86 27 51 Existing - Existing Others Total- Additional Additional Total POL, Steel, - Coal Existing - POL, - Coal Cement, Steel, Fertilisers Cement, Fertilisers Development of 111 National Waterways Pictorial representation of 5 major National Waterways in NATIONAL WATERWAY 1 India River Ganga Length (KM): 1,620 NATIONAL WATERWAY 4 Kakinada-Puducherry Stretch NW-1 NW-2 of Canals Length (KM): 1,078 NW-5 Sunderbans Brahmani River NATIONAL WATERWAY 2 East Coast Canal River Brahmaputra NATIONAL WATERWAY 3 Eluru Canal Kakinada Canal Length (KM): 891 Krishna River NW-4 Kollam-Kottapuram Stretch of Commamuru Canal Canals Buckingham Canal Length (KM): 205 Kottapuram NATIONAL WATERWAY 5 Udyogamandal Canal East Coast Canal Kollam Champakkara Canal Length (KM): 1,078 Initiatives undertaken for Integrated Intermodal Transport Bharatmala Pariyojana Bharatmala - a unique identity and imprint like the Golden Quadrilateral. An umbrella programme with focus on: .Re-defining road development through improved effectiveness of already built infrastructure .Multi –modal
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