0 Indian Railways A Workshop on State JVs

0

Indian Railways A Workshop on State JVs by ANOOP K AGRAWAL MD/IPRCL md. iprcl@gmail. com 26 TH SEPT 2017 IRICEN PUNE 1

WORKING DRAFT Last Modified 7/11/2016 10: 25 AM India Standard Time Printed 09/03/2016 10: 00 India Standard Time Sagarmala: Comprehensive development of India’s maritime sector

Indian Maritime Sector: Overview 7, 500 Kms ~212 ~70 coastal long coastline ports districts ~1 bn tonne cargo handled currently 1 ~111 waterways ~90% of EXIM trade (by volume) handled at ports 1 2014 -15 3

Investments Opportunities in maritime sector in India ▪ ▪ ▪ ▪ Building New Ports Port led industrialization; coastal economic zones Construction of new berths/terminal in existing ports Mechanisation (RTGCs, HMCs, Quay Cranes, Conveyor Systems) Hinterland Connectivity and Evacuation Infrastructure Ship building, Ship Repair, Ship Recycling Development of Inland Waterways and water transport Coastal and Cruise Shipping § ~150+ 4

Concept of Sagarmala Programme Projects & initiatives identified 5

Pillars of Sagarmala Programme Port-led Development Port modernisation ▪ ▪ ▪ De- bottlenecking existing ports Capacity improvement at existing ports New ports Connectivity ▪ ▪ ▪ Highways Railways Inland waterways ▪ ▪ Pipelines Multimodal Logistics Hubs Port-led industrialisation Coastal community development ▪ Industrial clusters ▪ ▪ Industrial corridors Community development fund ▪ Marine sector activities – Marine Tourism, Fisheries Skill development ▪ Coastal Economic Zones ▪ 6

Vision of Sagarmala Programme ▪ ▪ Reducing the cost of transporting domestic cargo through optimising modal mix Optimising time/cost of EXIM container movement Reduction of logistics cost for EXIM and domestic trade with minimal infrastructure investment ▪ Lowering logistics cost of bulk commodities by locating future industrial capacities near the coast ▪ Improving export competitiveness by developing port proximate discrete manufacturing clusters 7

Anticipated impact Impact expected from Sagarmala by 2025 Infrastructure investment mobilisation Investment Port modernization: ~10 US$ bn Connectivity: ~34 US$ bn. Share of waterways in Double modal mix from 6% • Logistics cost saving per annum Logistics Cost Saving 1 • Optimize modal mix for existing capacities: ~4. 3 -4. 8 USD bn. Boost to Exports US$ 110 bn • Reduce time to export by 5 days: ~1. 4 USD bn. Job 4 million new direct jobs, Potential by and 6 million indirect jobs 2025 1 Savings from coastal shipping of coal – 2. 6 to 2. 8 USD bn. Savings from coastal shipping of steel, cement, food grains and fertilisers – ~2 USD bn. Savings from modal shift and time and variability reduction of containers – ~1. 4 USD bn. 8

Contents Aspirations from Sagarmala Elements of Sagarmala & actions taken 10

Action plans developed across sector for implementation A Alignment of (new) port capacity with key cargo flows B Progression towards efficient modal mix leaning towards cheaper modes C Aiming world class port efficiency through benchmarking & modernization D Creating logistics infrastructure comparing to global benchmarks; aiming to reduce overall logistics cost E Leverage port influence for industrialization and manufacturing F Empowering coastal communities to participate in development opportunities G Creating an enabling environment for affiliated sectors 11

Key commodity flows study A Commodities covering ~85% of port traffic were studied in detail to identify projects 1 and action plans for implementation MTPA, percent, 2013 -14 17% 100% 12% 14% 20% 37% POL Thermal Coal SOURCE: Basic port statistics 2013 -14 Steel & raw Containers Other 1 materials cargo Total 1. Coastal shipping revolution 2. Coastal industrial greenfield plants (steel & Cement) 3. Reduce time to export container by 5 days 4. Reduce cost to export by ~50 USD per container 12

Key commodity flows study A Greenfield port locations identified New port locations Proposed new locations 6 new mega ports locations have been identified – Sagar Paradip south satellite port Vadhavan Machilipatnam Belekeri Vodarevu Will add 400 MTPA across themes of – ▪ Port Saturation ▪ Unavailability of ports ▪ Strategic ports to capture international opportunity Cuddalore Sirkazhi Vizhinjam Enayam 13

Modal Mix B Sagarmala will help in optimising India’s modal mix bn tonne km; percent Pipelines Coastal & Inland waterways Rail Potential of 400 MTPA of coastal and 60– 70 MTPA of inland waterways 6 Potential for increasing share in container traffic up to 25% from 18% in base case Road 20141 2025 with Sagarmala initiatives 1 As in Rakesh Mohan committee report 14

Modal Mix B 4 waterways prioritized for infrastructure improvement & cargo movement NATIONAL WATERWAY 1 River Ganga Length (KM): 1, 620 Declared (Year): 1986 r Rive NW-1 Ganga River NW-5 Brahmani River NATIONAL WATERWAY 4 Kakinada-Puducherry Stretch of Canals Length (KM): 1, 078 Declared (Year): 2008 Buckingham Canal Champakkara Canal Brah NW-2 Sunderbans East Coast Canal Eluru Canal Kakinada Canal Krishna River NW-4 Commamuru Canal Udyogamandal Canal utra map NATIONAL WATERWAY 2 River Brahmaputra Length (KM): 891 Declared (Year): 1988 NATIONAL WATERWAY 5 East Coast Canal Length (KM): 1, 078 Declared (Year): 2008 15

Port efficiency and benchmarking C Capacity build up at the ports to meet the 2025 demand Capacity build up at Indian ports MTPA, 2025 3, 000+ ~50 MTPA of capacity unlocked already 1, 550 Existing Major ports Ongoing efficiency expansion improvement at major ports Capacity Additional New ports capacity from expansion masterplan at non major ports projects Total § With the planned projects, there will be sufficient capacity at port to handle projected volumes § More than total capacity, it is critical to have adequate capacity at the right place 18

Network infrastructure creation D Infrastructure projects planned at scale with focus on next generation logistics configuration FY 25 Heavy haul Rail line Main container ports Existing ports Trans-shipment port Milk run of ICDs Port industrial cluster National Waterways (NW) Proposed ports Dhandhari Kalan Dhappar Panipat Sadiya Agra Gwalior Madhosingh Rawtha Bhopal Pipavav Vadhavan Hazira Western DFC Ratlam IB Valley Kolkata/Haldia Sagar Paradip, Dhamra Keonjhar Talcher Paradip satellite port Bailadila JNPT ▪ 4 new pipeline projects ▪ ▪ ▪ Heavy Haul Rail ▪ 45 Last mile connectivity projects- road (3500 kms), rail(4400 kms) ▪ 4 priority waterways development 7 new Multi-Modal Dhubri Allahabad Mundra Eastern DFC Key projects Tughlakabad Kandla Vizag Mormugao Belekeri Mangalore Access controlled freight expressways Ankola Cochin Machilipatnam/Vodarevu Krishnapatnam Ennore Chennai Puducherry Cuddalore/Sirkazhi Tuticorin Enayam ▪ DFC spur lines 10 new freight expressways Hubs 19

Hinterland potential inadequately leveraged E Proposed Coastal Economic Zones, Maritime Clusters, Industrial Corridors Industrial corridor nodes Major port Non-major port Proposed CEZ DMIC BMIC CBIC VCIC AKIC Furniture, Cement, gas based Pet. Chem clusters Kandla Kolkata Mundra Sikka Apparel, Automotive Dahej Hazira Pipavav Marine cluster Electronics, Apparel, Power Haldia Mumbai JNPT Dighi Jaigarh Food processing, steel and Pet. Chem refinery Gopalpur Vizag Gangavaram Kakinada Mormugao Gas based Pet. Chem NMPT Light manufacturing Dhamra Paradip Krishnapatnam Katupalli Ennore Chennai Apparels, Food processing, cement, power and Gas based Pet. Chem cluster Electronics Steel, gas based, Marine Cochin Karaikal Leather and Power Furniture Tuticorin Refinery and pet. Chem SOURCE: Make in India website; team analysis 15 Bulk and 14 discrete manufacturing clusters proposed in 14 CEZs 20

Coastal community F Coastal Community Development ▪ Establising Coastal Community Development Fund ▪ Sagarmala coastal area development program ▪ Coastal community skill development – Skill training program in 27 coastal districts under the DDU-GKY scheme – Skill gap analysis in 21 coastal districts being conducted via NSDC – Safety training program for workers in the Alang shipyard ▪ Marine fishermen community development – 6 projects related to development of fishing harbor, fish processing unit development & skill development ▪ Island development – 3 island lighthouses for tourism development under the PPP mode – Final report on potential development activities in islands submitted to NITI Aayog and M/o Home Affairs 21

2 4 Constituents of IPRCL Indian Port Rail Corporation Limited is a Joint Venture Company between the 11 Major Ports under the Ministry of Shipping and Rail Vikas Nigam Limited (RVNL) as equity shareholder under the Companies Act, 2013 as public limited company with initial authorized capital of Rs. 500 crores. The initial subscribed share capital is to be Rs. 100 Crore. Stakeholders of IPRCL 10% 5% 5% 5% 15% Incorporated in July 2015 11% 7% 7% Jawaharlal Nehru Port Trust - 15. 3% 7% 11% Visakhapatnam Port Trust - 10. 80% Kolkata Port Trust - 10. 80% Paradip Port Trust - 10. 80% New Mangalore Port Trust - 7. 20% Chennai Port Trust - 7. 20% Kandla Port Trust - 7. 20% Kamarajar Port Limited - 7. 20% Mumbai Port Trust - 4. 50% Mormugao Port Trust - 4. 50% V. O. Chidambaranar Port Trust - 4. 50% Rail Vikas Nigam Limited - 10% 24

2 5 Objectives of IPRCL q. To undertake projects for last mile connectivity to Major Ports, and for Non-major ports q. Modernization of the rail infrastructure at ports q. Operate and manage the internal port railway system; q. To leverage the extant participative model of IR to enhance last mile connectivity as well as enhancement of capacity in embedded hinterland connectivity ØTo raise financial resources for funding ØTo assess intermodal gaps in handling rail cargo of Major Ports and develop suitable solutions to enable seamless flow of Cargo 25

IPRCL-PROJECTS AT A GLANCE 26

IPRCL Works at a glance as on 31. 08. 2017 Sr. No. Particulars No. of Works Track Km Cost (approx) INR Crores A Works in Progress 14 105 Km 783. 80 B Works for which bids under process 3 18 Km 118. 00 C DPRs prepared, Works under review by Ports 2 Signal + OHE 40. 00 D Works under planning, development and discussion stage 1 285 Km* 2226. 00* E Rail Connectivity to Non-Major Ports under planning / discussion 10 160 Km 2400. 00 F ROB/RUB Works under Setu Bharatam (sanction in process) 9 - 900. 00 (approx. ) TOTAL 57 568 Km* 6467. 80* Note- * Cost of many projects under DPR 27

2 8 Rail Infra in major Ports; Key Challenges Master planning and improvement of existing rail infrastructures - 900 Km Track -80 Locomotives -Traction Change issues -Signaling -Handling of Cargo -Goods Rakes -O&M 28

Types of Port Rail Connectivity Works taken Modernization of Internal Port Rail System Ø Track improvement ØLayout Improvement ØComplete new layout to cater to DFC traffic: Train length double 1500 m (normal 750 m) and double stacking of containers ØSignaling and OHE (Electrification) works • Expansion of Railway Network in Ports to cater to new berths Last Mile Rail Connectivity; New connectivity, doubling, 3 rd line 29

Main Projects ü Vo. CPT (Tuticorin) Port; Providing railway connectivity from the port to the Power Plants. ü Paradip Pot; Heavy Haul Rail Corridor Salegaon to Paradip ü BR Chrd line in phase 1 ü JNPT; Preparation of DPR for Up-gradation modifications of ICD yards at the port to develop a common rail yard ü Ko. PT (Haldia Dock Complex); Doubling of Railway line from Durga. Chak to Haldia Dock Complex. ü Kamarajar (Ennore) Port Limited; Northern rail link from Minjur station to Kamarajar Port ü Kandla Port; Providing rail connectivity to berth No. 13, 14, 15 & 16 from take-off point to west end of berth at Kandla Port 30

3 1 Integrated Approach to Port Connectivity v. Integrated multi-model planning for connectvity – Should be part of Port Development üWaterways ü Railways ü Roads ü Pipelines ü Conveyor Belts v Planning ahead of need 31

Benefits Ø Reduction in Goods Trains handling time in Ports Ø Better Turn-around for Ships Ø Increase in Rail Share of Cargo from 28% to 35% in five years Ø Reduction in Congestion on Roads Ø For Coal movement to south India from Talcher Mines : Rail-Sea-Rail Route; reduction in Logistic Cost, All rail route is already congested 32

3 3 Current status of Rail connectivity to ports v. Non-Major ports; Ø Non-major ports are a diverse lot; Ports such as Pipavav, Dahej, Mundra, Dhamra and Krishnapatnam have adequate first mile connectivity. Beyond first mile, non-major ports have same problems as major ports. ØRail Connectivity under planning/implementation for non-major ports: – Jaigarh Port – by a SPV of Konkan Railway with port promoters – Dighi Port- by a SPV of port promoters with RVNL – Haziara Port- by promotors and GMB under NGR model – Vijinajam Port- by Govt of Kerala and State Govt – Old Bedi Port (Gujarat) – Machilipatanam Port (AP) – Kakinada Port , New railway Siding (AP) 33

3 4 Rail Connectivity to Non-Major Ports under planning with IPRCL v Nargol Port- New Line (Gujarat) v Dhamra Port- Doubling from Bhadrak (Odisha) v Gopalpur Port- Strenthening of connectivity (Odisha) v Karwar Port- New Line (Karnataka) v Inland Waterway Terminals- Sahibganj and Haldia v Rail Connectivity to Multi-modal Logistic Park at Palghar being developed by Maharashtra Maritime Board v Cuddalore Port (Tamilnadu) v Kattupali Port (Tamilnadu) v Pambhan Port (Tamilnadu) v. Kerala Ports: Kollam, Beypore, Azhikkal 34

35 48

3 6 SETU BHARATAM Seamless movement of road/rail traffic Ø 206 ROBs/RUBs approved by Mo. RTH under this program ØAll LCs on NH to be replaced by ROBs/RUBs ØSuch LCs, if left out, may also be proposed ØTo improve rail/road operations ØUnobstructed movement of ODCs ØIPRCL may take up the works of ROBs/RUBs in the vicinity of Ports ØTender for Design Consultancy of 9 ROBs in A. P invited 36

CONSTRUCTION ROB & RUB UNDER SETU BHARTAM 37

3 8 Status of SPVs formed for connectivity RVNL has formed six SPVs for providing port connectivity : 1. Kutch Railway Co Ltd- Kandla and Mundhra (Fully operational) 2. Bharuch Dahej Railway Co Ltd- Dahej Port, Gujarat (Fully operational) 3. Krishnaptanam Railway Co Ltd - Krishnapatnam, A. P (Partly operational) 4. Haridaspur Paradip Railway Co Ltd- Paradip Port, Orissa (Under construction) 5. Angul-Sukinda Railway Co Ltd- Paradip Port, Orissa (Under construction) 6. Dighi Roha Rail Ltd - Konkan Coast, Maharashtra (Land acquisition) New SPVs for Port Connectivity under Mo. R : 1. JV of Konkan Railway and JSW Group- for connectivity to Jaigadh Port on Konkan Coast 2. JV of RVNL and Revas Port Ltd for Revas Port on Konkan Coast IR had formed two SPVs earlier: 1. Pipavav Rail Corporation Ltd. , for Pipavav Port 2. Hassan Mangalore Rail Development Co. Ltd. for Mangalore Port Two port companies have provided rail connectivity at their own cost (NGR) 1. Adani Port- Mundhra, Gujarat~ 52 kms 2. Dhamra Port , Odisha ~ 60 kms 38

Port connectivity projects of Ministry of Rilways S. N Project Panvel to Jasai (JNPT) Maharashtra Daitari to Banspani 2 Odisha (Paradip Port) Delhi to Rewari – 3 Delhi & Haryana (Kandla Port) 1 Nature Distance (Km) Doubling 28. 5 102 Completed New Line 155 964 Completed Gauge Conversion 94. 2 228 Completed 223 490 Completed 295 770 Completed 192 665 Completed Gauge Bhildi to Samdari – Raj. & 4 Conversion Guj. (Kandla Port) Ajmer - Phulera - Ringus – Rewari – Raj. & Gauge 5 Haryana Conversion (Kandla Port) Thanjavur to Villupuram Gauge 6 – Tamilnadu Conversion (Tuticorin Port) Update on Port Connectivity Approx Cost Present Status (Rs. Cr) 39 39

Port connectivity projects of Ministry of Railways Port Connectivity Projects by RVNL S. N 7 8 9 10 11 12 13 14 Project Cuddalore to Salem T. N. – (Tuticorin Port) Vallaparpadm to Idapally – Kerala - (Cochin Port) Hospet to Guntakal – Karnataka – (Mangalore Port) Panskura to Haldia – WB – (Haldia Port) Nature Distance Approx Cost (Km) (Rs. Cr) Present Status Gauge Conversion 193 260 Completed New Line 9 246 Completed Doubling 115 340 Completed Doubling 14 29. 5 Completed 230 312 Completed 301 451 Completed 62 200 Completed 144 92 Completed Arasekere - Hassan – Gauge Mangalore - Karnataka Conversion (Mangalore Port) Gandhidham to Palanpur - Guj. Gauge (Mundra and Kandla Ports) Conversion Bharuch - Samni – Dahej – Guj. Gauge – (Dahej Port ) Conversion Tomka to Banaspani – Odisha Railway – (Paradip Port) Electrification 40 40

Port Connectivity Projects by RVNL S. N Project Nature Haridaspur to Paradip Port - Odisha Obulavaripalle to 16 Venkatachalam –AP Krishnapatnam Port Krishnapatnam to 17 Venkatachalam - AP Krishnapatnam Port 15 18 19 20 21 Rajgoda to Tamluk – WB - (Haldia Port) Angul to Sukinda Odisha – (Paradip Port) Sambalpur to Titlagarh Odisha – (Vizag Port) Raipur to Titlagarh Odisha & Chhatisgarh (Vizag Port) Jan 18 2016 – Distance Approx Cost Present Status (Km) (Rs. Cr) New Line 82 1200 ~75% work has been completed New Line 93 733 ~65 % work has been completed Doubling with Electrification 16. 5 86 Doubling completed. Doubling 13. 5 87 Completed New Line 99 818 65% completed Doubling 182 948 ~ 40% completed Doubling 203 758 41 ~40% completed Update on Port Connectivity 41

Port connectivity projects of Ministry of Railways S. N Project Hospet - Tinaighat - Vasco. Da-Gama – Karnataka & 22 Goa (Mormugao Port) Surat to Hazira – Guj. – 23 (Hazira Port) Nature Distance Approx Cost (Km) Present Status (Rs Cr) Doubling 307. 4 2127 45% work has been completed New Line 35 200 No work in Progress 24 Rewas Port – Maha. New Line 26. 1 450 25 Dighi Port – Maha. New Line 41. 6 770 New Line 15 150 26 Vizhinjam International Seaport - Kerala Sanctioned- SPV under formation SPV of RVNL and DPL formed MOU has been signed bet. VISL & RVNL for implementation of Rail connectivity to VISL 42 42