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Viability of Inland Water Transport in India

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Viability of Inland Water Transport in India ADB INRM Policy Brief No. 13 Viability of Inland Water Transport in India Narayan Rangaraj and G. Raghuram Policy Brief Series Asian Development Bank India Resident Mission 4 San Martin Marg Chanakyapuri New Delhi 110021 Asian Development Bank India Resident Mission Asian Development Bank India Resident Mission (INRM) 4 San Martin Marg Chanakyapuri New Delhi 110021 © 2007 Asian Development Bank The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Indian Institute of Management, Ahmedabad, is the Implementing Agency for the thematic cluster ‘Transport Infrastructure Development: Priorities, Constraints, and Strategies’. INRM Policy Brief No. 13 Viability of Inland Water Transport in India Narayan Rangaraj and G. Raghuram 2007 Narayan Rangaraj is Professor of Industrial Engineering and Operations Research at the Indian Institute of Technology, Bombay. G. Raghuram is Professor in the Public Systems Group at the Indian Institute of Management, Ahmedabad. Foreword The India Resident Mission (INRM) Policy Brief Series is sponsored by the Asian Development Bank (ADB) and is designed as a forum to disseminate findings from policy research work undertaken on the Indian economy. The series is primarily based on papers prepared under the Technical Assistance (TA) ‘Policy Research Networking to Strengthen Policy Reforms in India’. The main purpose of the TA was to provide assistance for developing policy research networking capacity, in order to build support for, and consolidate the reform process. The INRM Policy Briefs provide a nontechnical account of important policy issues confronting India. Tadashi Kondo Country Director Viability of Inland Water Transport in India Narayan Rangaraj and G. Raghuram In water-based transport generally, fuel costs are low and environ- mental pollution is lower than in transport by road, rail, or air. The waterway is naturally available, which has to be ‘trained’, maintained, and upgraded. Water-based transport is especially effective when the source and destination are waterfront locations. Transport based on inland waterways (or inland water transport, IWT)—rivers, canals, lakes, etc. and also overlapping coastal shipping in tidal rivers—constitutes 20% of the transport sector in Germany (WB 2005) and 32% in Bangladesh (Rahman 1994). In India it has a paltry share of 0.15% (Raghuram 2004). IWT has received large funding in both the ninth and tenth five-year plans but has not been able to effectively utilize it (Planning Commission 2001). It continues to be a significant focus area for investments, such as a Rs 300 crore investment planned by the Asian Development Bank (ADB) (Indian Infrastructure 2004). It is an important component of the National Maritime Development Project (NMDP). This policy brief assesses the viability of IWT in India. The detailed report (Rangaraj and Raghuram 2005a) is available online. In IWT policy formulation the following questions may be asked: • Should government invest in IWT? How much and where? • What is the role of the major institutions in this area (the Inland Waterways Authority of India—IWAI—foremost)? • What policy instruments are available to government to regulate Carriage of Vehicles (preferably in roll-on-roll-off mode). West Bengal, and support the sector at an ‘appropriate’ level? Kerala, and Goa have significant number of these ferry services, but a • Who are the major stakeholders in IWT and does policy take great potential exists, with faster boats, proper landing facilities, and into account their concerns? interchange with other modes. Three major waterways have been designated as National Waterways: Tourism, Including Stay and Entertainment. In Kerala, Alapuzha, and the Ganga-Bhagirathi-Hooghly system, from Allahabad to Haldia, NW-1; to a smaller extent Kozhikode, are centers of this activity, especially for the Brahmaputra system in Assam, NW-2; and the west coast canal houseboats. Boats that provide music and dining are flourishing in system in Kerala, NW-3. Commercially, the small tidal river system in Mumbai, Goa, and Kochi. River cruises, scheduled and chartered, are Goa, comprising the Zuari and Mandovi rivers and the Cumbarjua also available (Outlook Publishing 2004). Canal is the most important. River inlets along the coast, especially near Water Sports. This new sector has possibilities in north and east ports, and some canal systems as part of larger water resource develop- Indian rivers. White water rafting and trekking on iced mountain stretches ment projects also appear viable as part of IWT. The river interlinking of rivers are examples (CMYK 2005). project in the country, if it comes about, opens up further possibilities. Cargo Movement Passenger Movement Movement of commodities like tea, jute, and spices in the eastern IWT-based passenger movement is mainly by ferry across rivers, on sector, connected to the river port in Kolkata, was among the early short stretches along rivers, and tourism-based passenger traffic (in commercial drivers of preindependence India. Logistical convenience of Goa, Kerala, Sunderbans, and northern regions). For details, see the river transport, which used to be a determining factor in the location of statistical summaries produced by IWAI, the Ministry of Shipping, the industrial activity, may be less so today, though access to water for Planning Commission working group on IWT, and state-level authorities processing and in some cases effluent treatment is still a consideration like West Bengal (TRW 2001; TRW 2002), Kerala, etc. Among factors in location. that affect passenger movement are the following: Growth in this sector has been sluggish, with the outstanding exception of the tidal river-canal system in Goa, where the Mandovi-Zuari- Travel Time. With construction of bridges, travel time by land is Cumbarjua system moved some 30 million tons of iron ore in 2003-4 generally reducing. Faster ferries and launches can make IWT competitive. (GMOEA 2004). Cost. The total cost of ferry plus subsequent mode of transport IWT-based cargo movement becomes viable if technological and needs to be taken into account in planning. physical viability and commercial potential exists and operating policies of carriers and associated agencies are conducive. Some factors that affect Interchange Convenience. Waterway transport should be able to move operational economics are the availability of right-of-way (waterway); seamlessly to other modes, e.g. bus and train. A study in the Kochi metro carriers (navigational vessels); terminal facilities (jetties and ports), and area, which suggests that IWT cannot be ignored in the future growth managerial and supporting infrastructure systems. of the city, calls for integrated investments to increase complementarities with other modes, faster vessels, unified pricing, ticketing, and targeted Technological and Physical Viability subsidies. Mumbai has experimented with hovercraft (apart from Water Flow. In the main waterways, water flow may have decreased continuing ferry), but a sustainable service mix has not been found. over the years because of increased drawing on water arising from Inland waterways provide a convenient function in related activities, habitation and industrial and agricultural needs. Damming may also such as carriage of vehicles, tourism, and water sports. have brought down the extent of regular flow. 2 Policy Brief No. 13 Viability of Inland Water Transport in India 3 • What policy instruments are available to government to regulate Carriage of Vehicles (preferably in roll-on-roll-off mode). West Bengal, and support the sector at an ‘appropriate’ level? Kerala, and Goa have significant number of these ferry services, but a • Who are the major stakeholders in IWT and does policy take great potential exists, with faster boats, proper landing facilities, and into account their concerns? interchange with other modes. Three major waterways have been designated as National Waterways: Tourism, Including Stay and Entertainment. In Kerala, Alapuzha, and the Ganga-Bhagirathi-Hooghly system, from Allahabad to Haldia, NW-1; to a smaller extent Kozhikode, are centers of this activity, especially for the Brahmaputra system in Assam, NW-2; and the west coast canal houseboats. Boats that provide music and dining are flourishing in system in Kerala, NW-3. Commercially, the small tidal river system in Mumbai, Goa, and Kochi. River cruises, scheduled and chartered, are Goa, comprising the Zuari and Mandovi rivers and the Cumbarjua also available (Outlook Publishing 2004). Canal is the most important. River inlets along the coast, especially near Water Sports. This new sector has possibilities in north and east ports, and some canal systems as part of larger water resource develop- Indian rivers. White water rafting and trekking on iced mountain stretches ment projects also appear viable as part of IWT. The river interlinking of rivers are examples (CMYK 2005). project in the country, if it comes about, opens up further possibilities. Cargo Movement Passenger Movement Movement of commodities like tea, jute, and spices in the eastern IWT-based passenger movement is mainly by ferry across rivers, on sector, connected to the river port in Kolkata, was among the early short stretches along rivers, and tourism-based passenger traffic (in commercial drivers of preindependence India. Logistical convenience of Goa, Kerala, Sunderbans, and northern regions). For details, see the river transport,
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