Tadadi Port Project Report

Feasibility Study for Development of Port at Tadadi
FEASIBILITY REPORT
October 2009
Submitted to Infrastructure Development Department Government of Karnataka
Infrastructure Development Corporation (Karnataka) Limited

Infra House, 39, 5th Cross, 8th Main, RMV Extension, Sadashivnagar, Bangalore 560080 Ph: 91 80 43448000; Fax: 91 80 23613016
Development of Port at Tadadi, Karnataka Feasibility Report
Table of Contents
Abbreviations
1. Introduction ......................................................................................................................... 6 1.1 About the assignment .......................................................................................................... 7 1.2 Approach and Methodology ................................................................................................ 8 Catchment Area Analysis....................................................................................................10 2.1 Catchment Area Bellary - Hospet ................................................................................... 10 2.2 Proposed development initiatives of the State.................................................................... 13 2.3 Impact Analysis.................................................................................................................. 15 Analysis of Competing Ports ..............................................................................................17 3.1 Existing Ports Scenario in the State.................................................................................... 17 3.2 Competing Ports ................................................................................................................ 20 3.3 Rationale for development of the proposed port at Tadadi................................................ 26 Proposed port at Tadadi ......................................................................................................28 4.1 About Tadadi ..................................................................................................................... 28 4.2 Current Facilities at Tadadi................................................................................................ 30 4.3 Environmental Impacts of the proposed Port .................................................................... 30 4.4 Key Issues for Development .............................................................................................. 37 Analysis of Connectivity to Port ........................................................................................38 5.1 Connectivity by Rail.......................................................................................................... 38 5.2 Connectivity by Road ........................................................................................................ 40 5.3 Cargo availability at Tadadi Port ....................................................................................... 50 Financial Viability Analysis ................................................................................................52 6.1 Land Development ............................................................................................................ 52 6.2 General Assumptions ......................................................................................................... 52 6.3 Project Cost ....................................................................................................................... 53 6.4 Sources of Finance ............................................................................................................. 54 6.5 Capacity Estimates ............................................................................................................. 54 6.6 Revenue Estimates ............................................................................................................. 55 6.7 Operations and Maintenance Expenses .............................................................................. 55 6.8 Project Viability Scenario 1: Existing road connectivity ................................................. 56 6.9 Project Viability Scenario 2: After road widening ........................................................... 57 Indicative Options for Project Implementation .................................................................59 7.1 Concession Structure ......................................................................................................... 59 7.2 Analysis of proposed PPP framework ............................................................................... 61 7.3 Indicative Bid Process ........................................................................................................ 62 Key Issues & Conclusions ...................................................................................................64 8.1 Conclusions ....................................................................................................................... 64 8.2 Key Issues........................................................................................................................... 65
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8.
List of Tables
Table 1: Index of Industrial Production of Karnataka Table 3: Cargo at New Mangalore Port .......................................................... 7 Table 2: Distances from Bellary Hospet to various ports .................................................... 12 ............................................... 19 ................... 19 ................ 20 Table 4: Foreign Trade by Sea through minor ports in Karnataka - Exports Table 5: Foreign Trade by Sea through minor ports in Karnataka Imports
Table 6: Commodity-wise traffic at minor ports in Karnataka .............................................. 26 Table 6: Option 1 Length of road stretches .......................................................................... 41 Table 7: Option 1 - Cargo carrying capacity of road (without widening) ............................. 42 Table 8: Option 1 - Cargo carrying capacity of road (with widening) ................................... 44 Table 9: Option 2 Length of road stretches .......................................................................... 45 Table 10: Option 2 - Cargo carrying capacity of road (without widening) ........................... 46 Table 11: Option 2 - Cargo carrying capacity of road (with widening) ................................. 47 Table 12: Option 1 Land acquisition details ......................................................................... 48 Table 13: Option 2 Land acquisition details ......................................................................... 49 Table 14: Cargo availability at Tadadi port (existing road conditions) .................................. 50 Table 15: Cargo availability at Tadadi port (after road widening).......................................... 51 Table 16: Estimated Project Cost ............................................................................................. 52 Table 17: Breakup of Total Project Cost ................................................................................. 53 Table 18: Sources of finance ..................................................................................................... 54 Table 19: Capacity estimates .................................................................................................... 54 Table 20: Revenue estimates ..................................................................................................... 55 Table 21: Tariffs at NMPT ....................................................................................................... 55 Table 22: Estimated operation and maintenance costs ............................................................ 56 Table 23: Project Viability Scenario 1 ................................................................................... 56 Table 24: Assumptions for grant drawdown ........................................................................... 56 Table 25: Estimated Grant Requirements ................................................................................ 57 Table 26: Project Viability Scenario 2 .................................................................................... 57
List of Figures
Fig 1: Movement of iron ore from Bellary by road Fig 2: Movement of iron ore from Bellary by rail Fig 3: Proposed SIZ districts in Northern Karnataka Fig 4: Minor Ports in Karnataka Fig 1: National Highway 17 Panvel to Cochin Fig 2: Hassan Mangalore Railway Line Fig 3: Tadadi Anchorage Fig 4: Konkan Railway Route Map through Karnataka Fig 5: CRZ classification for Tadadi Fig 6: Options for railway connectivity to Tadadi Fig 7: Connectivity by Road Fig 8: Road Connectivity Option 1 Fig 9: Road Connectivity Option 2
Abbreviations
BOT CRZ GDP GoK IDC IDD iDeCK IRC IRR IWT MORTH MTPA NH NMPT O&M pcu PPP PWD RFP RFQ SH VGF
Build-Operate-Transfer Coastal Regulation Zone Gross Domestic Product Government of Karnataka Interest During Construction Infrastructure Development Department Infrastructure Development Corporation (Karnataka) Limited Indian Road Congress Internal Rate of Return Inland Water Transport Ministry of Road Transport and Highways Million tones per annum National Highways New Mangalore Port Trust Operation & Maintenance Passenger car units Public Private Partnership Public Works Department Request for Proposal Request for Qualification State Highways Viability Gap Funding
1.
INTRODUCTION
Karnataka has been a pioneer state in industry and has a distinction of building a strong and vibrant industrial base, which combines the strengths of a large public sector, large and medium privately owned industries and a very wide and dispersed small scale sector. In more recent times, Karnataka has emerged as the knowledge and technical capital of the country. The concentration of I.T. related industries, bio-technology, BPOs and IPOs combined with strong research and development institutions and a large pool of trained manpower have ensured for Karnataka a sustainable competitive edge in the countrys Industrial Scenario. The government has been consistently pursuing progressive industrial policies to meet the changing needs of the states economy and industry.
Index of Industrial Production (IIP) is one of the important macro economic indicators, the magnitude of which represents the status of production in the industrial sector for a given period of time as compared to a reference period of time.
The general IIP (provisional) for the quarter ending June 2008 and September 2008 stood at 133.44 and 135.21 respectively (base year for compilation was 1999 2000). The average annual growth of industrial production (mining, manufacturing and electricity) was 6.36 percent in 2007-08 as against 6.50 percent in 2006-07. According to the index of industrial production, in 2007-08, manufacture of non metallic mineral products recorded the highest growth at 14.39 percent followed by basic metal and alloys at 14.01 percent. Growth rates in the other sectors were food products (9.23%), rubber, plastic, petroleum and coal products (8.12%) and beverages, tobacco and tobacco products (7.75%).
As can be seen in Table 1, the mining sector in the state has recorded the highest growth rate of almost 18% between 2006 - 2007 and 2007 - 2008. Most of the mined ore is exported to China, Japan, Korea and Taiwan via the sea route.
Infrastructure Development Corporation (Karnataka) Limited 6
Table 1: Index of Industrial Production of Karnataka
(Base: 1993-94 = 100)
Division / Sector Mining Manufacturing Electricity General Index
Weight 2.3550 89.3083 8.3367 100.00
2005-06* 242.45 (2.73) 211.46 (5.89) 179.73 (4.93) 209.54 (5.73)
2006-07* 240.18 (-0.94) 228.01 (7.83) 202.76 (12.81) 226.19 (7.94)
2007-08* 282.95 (17.81) 245.71 (7.76) 216.23 (6.64) 244.13 (7.93)
Source: Directorate of Economics & Statistics, Bangalore Figures in brackets indicate percentage changes over the previous year and * indicates provisional figures
1.1 About the assignment

Karnataka is targeting an industrial growth rate of 12% per annum, and there has been an increased emphasis on the expansion and growth of infrastructure sectors. The prospects of rapid growth in infrastructure sectors is driven by two factors (1) sustainable economic growth is contingent upon the support of strong infrastructure development and (2) the Governments thrust on private sector participation in development of these sectors. Since ports are the trade gateways for a state, their ability to meet the increasing demands of a rapidly growing economy is crucial for addressing the rising import and export traffic.
With this objective in mind, the Infrastructure Development Department (IDD), Government of Karnataka (GoK) has identified various projects in the State for development through Public Private Partnership (PPP) frameworks. One such project
identified is the development of a port at Tadadi in Uttar Kannada district of Karnataka. As a preliminary step in the project development activities, IDD intends to undertake a feasibility study to ascertain the Projects amenability for development under Public Private Partnership (PPP) framework. If the Project is found to be feasible in the preliminary assessment, then a Detailed Project Report including detailed technical studies is proposed to be undertaken for the same. Infrastructure Development Corporation (Karnataka) Limited
(iDeCK) has been awarded the mandate for undertaking the feasibility study for the abovementioned project
1.2 Approach and Methodology

Sea ports are important gateways for effective trading between countries. Currently, there is a huge gap between available capacities of Ports in the state vis--vis the demand for services. For the proposed port at Tadadi, the methodology adopted for undertaking the feasibility analysis is set out below:
Development of Port at Tadadi
Analysis of the catchment area
Analysis of competing ports Major Ports Minor Ports
Estimated cargo availability at the port
Hinterland connectivity By Rail By Road
Financial viability for development of the Port
Key Issues & Conclusions
a)
Analysis of the catchment area for the proposed port The catchment area for the proposed port at Tadadi has been identified. The
generation and consumption levels of materials for export from the identified catchment area are analysed.
In addition to the catchment area analysis, the other major infrastructure growth projects proposed by the State that would drive the performance of the port have also been studied. This analysis is presented in Chapter 2. b) Analysis of competing ports The current off take from the catchment area through various ports in the State and in neighbouring states have been studied. These competing ports have been further studied from the perspective of distances from the catchment area, capacities at these port and infrastructure facilities offered. Chapter 3. c) Hinterland connectivity The hinterland connectivity of the port to the catchment area via two modes of transport, namely, by road and by rail has been analysed. connectivity analysis is presented in Chapter 5. d) Estimation of cargo availability at port Based on the generation of materials for export in the catchment area and the hinterland connectivity analysis of the port, the cargo that could be available for the port at Tadadi has been estimated and the same is set out in Chapter 5. e) Financial viability analysis of the port The estimated cargo availability at the port formed the basis for undertaking the financial viability of the port. Two scenarios (pessimistic and optimistic cargo The hinterland The competition analysis is set out in
availability) have been considered for the viability analysis. The same is presented in Chapter 6. f) Key Issues and Conclusions The summary of the viability and the key issues that would impact the performance of the port have been assessed and set out in Chapter 7.
2.
CATCHMENT AREA ANALYSIS
Development of the port at Tadadi would require adequate cargo generation which would operate through the port. The port should be strategically located and provide the required advantages for it to be considered as a preferred destination for cargo import and export. For the port at Tadadi the northern part of the state, namely Bellary, Hospet, Raichur, etc would form the effective hinterland. Since the Bellary Hospet region is rich in iron ore mines and most of the produced ore is exported out of the country, this region has been considered as the catchment area for the analysis. The port at Tadadi could form a gateway for trade in the Bellary Hospet region. This Chapter discusses the following aspects relevant for the proposed port at Tadadi. a) Catchment area analysis of Bellary Hospet region b) Other proposed growth initiatives of the State, which would provide increased trade opportunities and thereby enhance the prospects for the port at Tadadi
2.1 Catchment Area Bellary - Hospet

The Bellary district accounts for almost 75 per cent of the iron ore mined in the State (Tumkur and Chitradurga districts account for the rest). Bellary has both metallic and nonmetallic minerals. The metallic minerals include iron ore, manganese ore, redoxide, copper and lead. The non-metallic minerals include andalusite, asbestos, corundum, clay, dolomite, limestone, limekankan, moulding sand, quartz, soap stone, granite and red ochre. Due to the high availability or iron ore, there are a large number of iron and steel industries in Bellary. The industries are clustered in the Vijaynagar region with Jindal Steel Works (JSW) having Indias largest private steel manufacturing facility here. The metallic minerals are abundant in three taluks of Bellary, namely, Sandur, Hospet and Bellary in the order of mining activity intensity. Nearly 48 million tonnes was mined from
Bellary in 2007-08, out of which 10 million tones were consumed locally. The annual production of manganese ore ranges between 0.13 million tonnes to 0.3 million tonnes (in 1991). About 15 - 17 million tonnes of iron ore were dispatched in 2007-08 from each of
the districts of Sandur, Hospet and Bellary. The off take from Hospet area is expected to increase to about 20 million tonnes from the present 15 million tones. The Sandur region has the highest potential for expansion because of the large holdings of mine owners in this region.
2.1.1
Existing movement of iron ore by road and rail
Out of the total iron ore mined from Bellary district: a. About 30% is transported by road to the ports on the west coast at Goa, Karwar, Belikere and NMPT and to the ports on the east coast at Chennai, Ennore, Krishnapatnam and Kakinada. However, the minor ports of the state are not in a position to handle the iron ore supply. Besides, these ports do not have modern or mechanized facilities.
Fig 10: Movement of iron ore from Bellary by road Infrastructure Development Corporation (Karnataka) Limited
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b.
About 70% of the iron-ore mined is transported by rail to the ports at Goa, Mangalore, Chennai, Krishnapatnam, Kakinada and Ennore. .
Fig 11: Movement of iron ore from Bellary by rail
The distances from Bellary Hospet to various ports are set out in the table below:
Table 2: Distances from Bellary Hospet to various ports
Destination Ports Chennai Ennore Mormugao NMPT
Distance (km) 520 - 620 544 - 644 290 - 400 500 - 600
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c.
About 10 million tonnes is consumed locally in the district by steel plants, pig/sponge iron plants.
2.1.2
Growth potential of Bellary Hospet region
Bellary currently is the second fastest growing city in Karnataka after Bengaluru. Some key factors that would further drive the growth potential of the district are set out below: a. JSW Steel one of the largest steel producer in the world, and the biggest single investor in the state has plans to acquire iron ore mines in Bellary. This would lead to increased production of steel in the region. Currently, JSW produces 7.8 million tones of steel which is likely to increase to 10 million tones per annum in fiscal 2010 11. In addition to JSW, there is a lot of interest from many other private players to establish industries in Bellary. b. In order to promote industrial and economical growth of the region, the State Government has formed a separate authority called Vijayanagar Area Development Authority (VADA) comprising of around 44 villages falling in Hospet, Sandur and Bellary Taluks. The formation of this new authority is to project Bellary as an industrial hub for steel manufacturing industries. An industrial park is proposed to be developed in the VADA region on an area of about 559.61 sq. km. providing state of the art infrastructure to the investors for setting up iron and steel and allied industries in the region. c. Karnataka Power Corporation Ltd (KPCL) proposes to develop the second phase of Bellary Thermal Power Station (BTPS) of 500 MW at Kudatini.. The first Stage has been commissioned in August 2007 and is expected to commence work shortly on the second phase of BTPS.
2.2 Proposed development initiatives of the State

The State Government has proposed to implement the Suvarna Karnataka Development Corridor Programme throughout the length and breadth of the State for Industrial Development. Such a corridor will possibly benefit many potential areas in the Karnataka
region from Bangalore to Belgaum and laterals of about 50 to 1500 kms. The national highway and rail network can form the backbone for trade and industry. This sort of development identification of investment regions backed by core infrastructure would be the key for development along the Industrial Corridor. These Industrial Corridors would accelerate the industrial growth and enable contribution to the economy from potential areas along the Corridor. Core infrastructure such as energy, road & rail linkages, inland container depots, free trade zones and urban infrastructure make a significant impact on Karnatakas economic growth. The Corridor proposes to cover about 11 District headquarters and more than 20 major towns along the highways/major roads and rail links. As a part of this Programme, the major industrial corridors/zones/nodes are proposed along the following locations: Bidar-Gulbarga-Bellary-Hiriyur Tumkur- Honnavar via Shimoga Chitradurga-Mangalore via Shimoga-Udupi Chitradurga-Hospet-Koppal-Raichur Chitradurga-Hospet-Bagalkot-Bijapur
In addition to the proposed Industrial Corridors, the State Government also proposes to develop following ten Special Industrial Zones on a PPP framework, most of which will have direct impact on trade and industry. i) ii) iii) Steel: covering Bellary, Koppal, Bagalkot, Haveri, Gadag & Raichur Districts Cement: covering Gulbarga, Bagalkot, Chitradurga, Belgaum and other Districts. Food Processing: covering Bangalore Rural, Kolar, Belgaum, Gadag, Koppal, Shimoga, Bagalkot, Bijapur, Davangere, Mandya and Dharwad Districts. IT / BT: covering Mysore, Mangalore, Hubli-Dharwad, Belgaum, Shimoga, Gulbarga, Kolar and Mandya Districts Automobile: covering Ramanagara, Shimoga Dharwad and Kolar Districts. Readymade garments: covering Bangalore Rural, Tumkur, Kolar,
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iv) v) vi)
vii) viii) ix) x)
Mandya, Belgaum, Bidar, Dharwad and other Districts. Sugar and co-gen, power: covering Bidar, Belgaum, Bagalkot, Shimoga and Mandya Districts. Pharmaceutical/Bio-Technology: covering Bangalore, Mysore and Hassan Districts. Power Generation: covering Raichur, Bellary, and Bijapur & Chitradurga Districts. Media & Entertainment : Bangalore (R) and Ramanagara
Among these Special Industrial Zones (SIZ) earmarked for development, especially the steel, cement and power generation SIZs fall in the northern part of the State covering Raichur, Bellary, Bijapur, Chitradurga,
Bagalkot, Haveri, Gadag and Gulbarga districts. These proposed SIZs would spur industrial growth in these districts. The
growth and associated trade activities would have a positive impact on the performance of the port.
Fig 12: Proposed SIZ districts in Northern Karnataka
2.3 Impact Analysis

The growth potential of the command region of Bellary Hospet and the general development iniatives at the State level, would enhance the prospects for the port at Tadadi. The Bellary Hospet region would be the important catchment area for the proposed port at Tadadi. This region provides ample trade opportunities for which the port could form a major gateway. Moreover, the other infrastructure projects earmarked for development in the region would offer scope for more additional movement through the Tadadi port. In addition to its numerical contribution to the GDP, it would act as an economic multiplier and help the rest of the economy thrive in the region.
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An overview of the ports scenario in the state and the existing ports which would offer competition to the port at Tadadi are analysed and presented in the next Chapter.
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3.
ANALYSIS OF COMPETING PORTS
An overview of the ports in the State and specifically the ports competing for the off take from the catchment area of Bellary Hospet are analysed and presented in this Chapter. From this analysis follows the rationale for developing the port at Tadadi.
3.1 Existing Ports Scenario in the State

Karnataka is endowed with a vast coastline of around 300 km between Karwar (at the North) and Mangalore (at the South) flanked by Uttara Kannada, Udupi and Dakshina Kannada districts, with
favourable and strategic port locations. The entire coastal belt as well as the adjacent districts are rich with mineral and natural resources and hence offer good scope for industrial investment. This belt is well connected by National Highways and the Konkan Railway broadgauge line, both running parallel to the coastline.
3.1.1
Major Ports
At present, in Karnataka there is only one Major Port viz., The New Mangalore Port. This is located at the southern end of the coastline and hence is predominantly being utilised by the southern districts of the State.
Infrastructure Development Corporation (Karnataka) Limited 17 Fig 13: Minor Ports in Karnataka
3.1.2
Minor Ports1
The coastline of the State is lined with ten minor ports between Karwar in the North and Mangalore in the south, flanked by Uttara Kannada, Udupi and Dakshina Kannada Districts. The ten minor ports of the State are as follows: Karwar Belekeri Tadadi Honnavar Bhatkal Kundapur Hangarkatta Malpe Padubidri Old Mangalore
All these ports are under the administrative control of the State Ports and Inland Water Transport (IWT) Department.
The above ports are broadly classified into three categories:
a.
One all weather Intermediate Port having direct berthing facilities for vessels of 9 m. draft and declared for handling all type of commodities for export and import viz., Karwar.
b.
One Intermediate Port (seasonal) having direct berthing facilities for coastal vessels of 4.50 m. draft/ lighterage/ mechanised fishing vessels viz., Mangalore Old Port.
Source: information collated from various websites 18
c.
Remaining seven Ports are seasonal functioning as fair weather lighterage/ fisheries Ports, capable of handling sailing/ mechanical sailing vessels. These Ports also possess lighterage wharves, transit sheds and suitable stacking areas.
3.1.3
Exports and Imports in Karnataka (through Ports)
New Mangalore Port The total cargo handled at the New Mangalore Port is set out in the table below:
Table 3: Cargo at New Mangalore Port In Kilo Tonnes
Commodity Coal LPG Lime Stone Iron ore Fines Fertilizer Edible Oil Cement Maize Manually handled cargo Containers (TEUs)
2008-2009 1929 1567 767 8601 904 476 271 110 13100 28,555
2007-2008 1691 1442 698 7290 830 374 216 56 11192 21,460
Minor Ports The commodity wise exports and imports (through the minor ports) in the State from 2004 to 2008 are set out in the tables below:
Table 4: Foreign Trade by Sea through minor ports in Karnataka - Exports In Kilo Tonnes
Commodity Iron Ore Molasses Granite Sugar Furnace Oil Miscellaneous Coffee Husks Alumina Try Hydrate Maize Total
2004 -2005 2724 241
2005-2006 3389 7 188
2006-2007 5758 48 277
1 10 6 2981 2 6 6
2007-2008 8042 306 257 5 2 1
3592
6090
8613
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Development of Port at Tadadi, Karnataka Feasibility Report Table 5: Foreign Trade by Sea through minor ports in Karnataka Imports In Kilo Tonnes
Commodity Rockphosphate Furnace Oil Bitumen Raw sugar Kerosene Edible Oil Molasses Caustic Soda Urea Total
2004-2005 15 104 3 132 0 4 98 0 0 356
2005-2006 30 63 0 88 0 0 7 0 0 188
2006-2007 56 76 0 0 0 0 0 2 46 180
2007-2008 36 26 5 0 0 0 0 0 0 67
The State has the second largest deposits of iron ore reserves in the country and accounts for 30 per cent of the total iron ore exports from India. As can be seen from Table 5 above, iron-ore forms the bulk of the quantum of exports in the State through the minor ports. At present, iron ore exporters use ports at Mangalore, Karwar and Belikeri to export ore to foreign countries.
3.2 Competing Ports

The port at Tadadi would face competition from existing major ports and minor ports in the region. The existing major ports are the port at Mormugao in Goa and New Mangalore and the minor ports would be the ports at Karwar, Belekeri and Old Mangalore. The characteristic features of these ports are described below.
3.2.1 Major Ports2

Mormugao
This port is one of the oldest and major port on the west coast. It is a premier iron-ore
2
Source: Data compiled from the websites of NMPT and Mormugao
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exporting port with an annual throughput of around 33.81 million tones of iron-ore traffic. The port is accessible by broad guage rail from different parts of the country. The large roadstead to the West and the North-West of the Harbour provides anchorage in stream for more than 20 ships during the eight months fair season (October to May) and 8 ships can be accommodated inside the break water throughout the year.
The port is expected to handle traffic of around 44 million tones by the year 2013-14. The port has a two lane road link to NH-17A passing through Vasco city. A project for four laning of 18 km stretch of NH-17B from Verna Junction on NH-17 to Mormugao Port is being implemented by NHAI.
Goa is connected with neighbouring states via Londa Junction on the Miraj-Bangalore of South Central Railways. The railway station at Vasco in Goa is situated a few kilometers away from Port and is linked by a BG line. Konkan Railways network passes through the states of Karnataka, Goa and Maharashtra with a 105 km stretch in Goa.
Nearly 90% of cargo handled at this Port is bulk cargo consisting of iron ore and coal. Almost entire coal traffic is moved by rail. Further, the port is installing a Wagon Handling System for bringing iron ore from Bellary - Hospet Region. To meet the demands of traffic to be generated in the coming years, rail augmentation is proposed to be undertaken in two phases.
New Mangalore Port
This port is a modern all weather port and is the largest LPG handling port in the country.
The present total capacity of the port is 38 million tones with about 14 berths. The
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other facilities at the port include transit sheds, open stackyards and liquid storage areas.
The total traffic handled at the port in 2008 09 was 36.69 million tones of which iron ore traffic handled at the port in 2008 -09 is about 9.7 million tones. The port is expected to handle traffic of around 43 million tonnes by the year 2013-14.
The present road connectivity of the Port is through NH-48 (Bangalore-Mangalore), NH-17 (Cochin-Goa-Mangalore) and NH-13 (Sholapur-Mangalore). NHAI is implementing projects for four laning of NH-17 (Suratkal-Nantur section), NH-48 (Padil-Bantwal section) and a bypass from Nantur junction on NH-17 to Padil junction on NH-48.
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Fig 14: National Highway 17 Panvel to Cochin
The port is connected to the hinterland of the State via the Hassan Mangalore Rail line. The line provides a shorter and more convenient outlet for the cargo from the iron ore rich Hospet Bellary and Chitradurga Tumkur belts of Karnataka to the New Mangalore Port. The improved connectivity to the gateway port of Mangalore through the Hassan Mangalore line has given a boost to the industrial activity in the hinterland centers Tumkur, Tiptur, Ammasandra, Tornagallu and Davanagere.
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Fig 15: Hassan Mangalore Railway Line
The port is also well connected to the southern part of the country by a broad guage line through Mangalore, Kerala and Chennai. The Konkan Railway linking Mangalore with Mumbai is in operation and connects the northern part of the country to the port.
NMPT currently is proposing to undertake development of a container terminal for handling containers from the proposed Berth No. 18 through PPP mode on build, operate and transfer (BOT) basis at an estimated cost of Rs 276 crore.
3.2.2 Minor Ports3

Karwar The port at Karwar is an all weather intermediate port with an available draft of 6.5 7 m. The prestigious SEABIRD Naval Project is located at this port. The
Source: The Annual Administrative Report of the Ports & IWT Department, 2008
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total traffic volume the port handles is 2.71 million tones of which iron ore forms 1.9 million tones.
Belekeri The Belekeri port is a fair season lightrage port with iron-ore being the main cargo exported. Currently the following three private operators are operating at the port:
Adani Export Pvt Ltd Salgoankar Mining Industries Mallikarjun shipping Pvt Ltd
The total traffic handled at the port is 6.09 million tones of which iron-ore forms 6.08 million tones. Old Mangalore This port is situated on the left bank of the Gurupur river and is approximately 10 km south of the New Mangalore Port. The minor port at Mangalore is an intermediate port with a draft availability of 4.5 mand is functional only during
the fair weather season from September to May. It is well connected by NH 17, 48 & 63 and the Konkan Railway and Sourthern Railways. Traffic at Minor Ports The commodity wise traffic at the nine minor ports in 2006 07 and 2007 08 is set out in the table below:
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Development of Port at Tadadi, Karnataka Feasibility Report Table 6: Commodity-wise traffic at minor ports in Karnataka
Imports Sl No. Name of the Port (2007-08) Steamer MT 1. Karwar (including Sadashivgad) 2. 3. 4. 5. 6. 7. 8. 9. Belekeri Tadadi Honnavar Bhatkal Malpe Kundapur Hangarkatta Mangalore 4,988 3,977 1,89,073 780 8,581 1,80,108 Sailing Vessels MT -
Exports (2007-08) Steamer MT 25,36,748 Sailing Vessels MT -
Total (2007-08) Exports & Imports MT 27,16,856
Total (2006-07) Exports & Imports MT 23,82,226
60,85,777 7,112
60,90,765
40,71,700 -
13,501 57,770 71,271
14,281
14,023 -
77,440 88,99,342
92,466 65,60,445
TOTAL
9,361 86,29,637
Source: Annual Administration Report of Ports & IWT Department, 2007, 2008
Of the total traffic of 8.9 million tones in 2007- 08, the iron traffic in the minor ports was approximately 8 million tones.
3.3 Rationale for development of the proposed port at Tadadi

Out of the ports of the state, NMPT, the major port currently caters to the cargo requirements in the southern districts of the state and is operating at 89% capacity (in 2008 2009). Further petroleum products form a significant part of the cargo at the port.
The northern districts of the state, especially the Bellary Hospet region is home to significant resources of iron-ore which is currently being exported. Part of this iron ore is
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exported through the minor ports at Karwar and Belekeri. However, the draft available at these ports is less and therefore bigger vessels cannot operate at these ports and loading is normally done through barges. Further the capacity at these ports is also not adequate to cater to the demand of this region. Due to this, a significant amount of the iron ore is currently being transported to Ennore (in Tamil Nadu), Mormugao and Krishnapatnam and exported from there.
Thus, a port developed in the northern coastline of the state could cater to the districts in North Karnataka especially the iron-ore belt in Bellary - Hospet, thereby significantly improving the industrial advantage of the region.
Due to the above cited reasons, it is proposed to develop a port at Tadadi which is situated in the estuary of the Aghanashini River. The backwaters of the river have a huge
waterfront area, which makes the location a natural harbour for a port. The proximity to the iron-ore belt at Bellary / Hospet and the connectivity in the region are added benefits for developing a port at Tadadi.
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4.
PROPOSED PORT AT TADADI
The details of the proposed port at Tadadi including the existing facilities at the port and the key issues for devlopment of the port are set out in this Chapter.
4.1 About Tadadi

Tadadi is located at a Latitude of 140 13.50 N and Longitude of 740 21.50 E. The backwaters of the river have a huge waterfront area, which makes the location a natural harbour for a port. It is a fair weather lightrage port situated on the estuary of the
Aghanashini River at a distance of about 50 km from Karwar, about 24 km from Belekeri and approximately 35 k from Honnavar.
TAD
Fig 16: Tadadi Anchorage
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The Konkan Railway line and National Highway (NH) 17 pass very close to the port. The nearest station on the Konkan Railway line from Tadadi is Ankola at a distance of about 25 km from Tadadi.
Fig 17: Konkan Railway Route Map through Karnataka
Tadadi is classified as CRZ 1 (Coastal Regulation Zone 1) and all the rules prevailing under CRZ 1 issued by Ministry of
Environment and Forests would be applicable to the area. CRZ 1 permits the operational constructions for ports and harbours, light houses,
CRZ 1
Fig 18: CRZ classification for Tadadi TADRI
constructions for activities such as jetties, wharves, quays and slipways, pipelines,
conveying systems including transmission lines.
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However, for all the activities mentioned above, environmental clearances would need to be obtained from the Ministry of Environment and Forests, Government of India.
4.2 Current Facilities at Tadadi

The facilities that currently exist at the Tadadi port are a light house structure, an RCC jetty and a Transit Shed. Currently there are no commercial shipping activities that are taking place at the port.
4.3 Environmental Impacts of the proposed Port

The potential adverse effects of port development at Tadadi, encompass land, water pollution, contamination of bottom sediments, loss of bottom habitat, damage to marine ecology and fisheries, beach erosion/accretion, current pattern changes, waste disposal, oil leakage and spillage, air pollution, noise, vibration and flood light effect.
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The proposed project will have impacts on the environment in two distinct phases. During the construction phase, which may be regarded as temporary or short term; the other during the operation stage which will have long term effects.
The impacts will be assessed for the Project area, during detailed studies and suitable mitigation measures would be identified.
4.3.1
Land Environment
Potential impact due to port location Changes in land use pattern for example, change from agriculture, housing, etc., to port related activity may necessitate rehabilitation and resettlement (R&R) of effected communities/villages. The project may also involve changes in land terrain for creation of a huge extant of port infrastructure like operational areas, storages, roads, railway lines etc. Such terrain changes are likely to affect drainage patterns as well as road rail connectivity. Coastline changes like erosion or accretion may be expected due to the establishment of ports inasmuch as the oceanographic and littoral process may be intercepted due to construction of breakwaters, groynes etc., and dredging and reclamation works. Transportation of huge quantities of construction material for the breakwaters, berths, operational, administrative and welfare buildings, land filling/development, formation of storage and stacking yards etc., during the construction phase and transport of cargoes to/from the port during the operations phase of the port may result in excessive use of existing public infrastructure like roads, railways and in-land waterways etc., resulting in congestion and early ageing etc. Similarly public utilities such as water supply, drainage, electrical power etc may also get undue demand. Potential impact during port construction Transportation of huge quantities of construction material for the breakwaters, berths, wharfs, jetties, operational, administrative and welfare buildings, land filling/development, formation of storage and stacking yards etc., during the construction phase and transport of
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cargoes to/from the port during the operations phase of the port may result in excessive use of existing public infrastructure like roads, railways and in-land waterways etc., resulting in congestion and early ageing etc. Similarly public utilities such as water supply, drainage, electrical power etc may also get undue demand. Potential impact during port operations Ship traffic and discharges may cause environmental concerns on the land where they are unloaded and stored or when they are being transported.
4.3.2
Water Environment
Potential impact due to port location Impacts due to associated and ancillary port activities would be assessed in the detailed studies. Breakwaters and landfills may change current patterns and cause stagnation of water behind the structures. If municipal or industrial effluent flows into a port, stagnant port water may deteriorate. Municipal sewage also brings coliform bacteria into the port and may cause unacceptable contamination of the harbour. Potential impact during port construction Pile driving, deposition of rubble, dredging, sand compaction and other construction work in water cause re-suspension of sediments and turbid water. Re-suspension of sediments in water leads to an increase in the level of suspended solids and in the concentration of organic matter, possibly to toxic or harmful levels. It also reduces sunlight penetration. Work vessels are a possible cause of oil spills, garbage discharge, and leakage of other substances into water. Diffusion from concrete work in water and overflows from landfills may be possible sources of water pollution. Potential impact during port operations Possible discharges from ships that could be sources of water pollution are bilge water, ballast water, oily wastes, sewage, garbage and other residues in a ship. Spills of oils, lubricants, fuels and other oily liquids may be other sources of water pollution. Concentration of oily compounds in water is an important indicator of water quality. Water drawl sources would need to be identified and its impact would need to be assessed.
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Impacts on water quality due to cargo operations Runoff from raw material storage, spills from bulk cargo handling, and wind-blown dust are possible sources of contamination of port water. Accidental spills of toxic, harmful materials, oils or oily compounds, and other raw materials are also possible sources of contamination of water.
4.3.3
Marine Environment (coastal hydrology/bottom contamination, sea/harbor water quality)
Potential impact due to port location The location of a port may cause changes in current patterns and littoral drifts due to alteration of wave refraction, diffraction and reflection. The change of littoral drift may lead to erosion or accretion in shore zones. Altered currents or reflected waves may endanger small ships maneuvering near structures. The creation of the port may cause changes in river flow and waterfront drainage. The location of a port may accelerate sediment deposition in stagnant water behind structures and cause contamination of the sea bottom. Sediment deposition covers bottom biota and physical habitat. Pile structures shade the bottom and affect habitat. Eutrophication of water induces sedimentation of dead plankton and changes chemical characteristics of bottom sediments, resulting in an increase of organic matter, hydrogen sulphide, and mobilization of harmful substances. Potential impact during port construction Dredging may cause changes in current patterns and flows as well as salt wedge intrusion into a river mouth or littoral drifts in the shore zone. Changes in littoral drifts lead to beach erosion or accretion. Disposal of dredged material on land may possibly cause leakage of harmful substances into ground water or changes in waterfront drainage. Construction work and dredging disturb bottom sediments and induce re-suspension, dispersal and settlement of such sediments. Dumping of dredged material directly alters
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bottom configuration and biota and may disperse toxic or harmful chemicals around the disposal site. Dredging removes bottom habitat and may lead to a loss of fishery resources. Potential impact during port operations Ships generate: (a) oily wastes such as bilge water, ballast water, washing water, lubricant oil and other residues in machinery space; (b) sewage and garbage; and (c) cargo residues. Discharges and spills of these wastes cause problems of oil pollution, floating garbage, unsanitary conditions, odour and other degradation of water quality. Bottom contamination may result from runoff from quay and storage area, spills from bulk cargo operations, and wind blown dust.
4.3.4
Biological Environment
Potential impact due to port location The location of a port affects aquatic fauna and flora through changes of water quality, coastal hydrology and bottom contamination. Land reclamation from the sea destroys bottom habitat and displaces fishery resources. Terrestrial fauna and flora may also be altered by the location of a port. Potential impact during port construction Disturbance from construction activities may cause displacement of fishery resources and other mobile bottom biota. Dredging removes bottom biota and dumping of dredged material covers bottom habitat, both of which may reduce fishery resources. Potential impact during port operations Leakage of oils, oily wastes and mixtures may directly cause damage to fishery resources, aquatic biota and coastal habitat. Biodegradation of oil also generates polymerized oil particles and toxic aromatic fractions using dissolved oxygen in the water, which indirectly cause damages to bottom biota and habitat. Both effects may seriously damage marine and coastal ecology. Flood light effect on turtles would also need to be assessed.
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4.3.5
Air Environment
Potential impact during port construction Impact of port construction/operation on the ambient air quality on account of emissions of dust during construction and cargo handling as well as emission of gases from equipment deployed for construction and cargo handling would need to be assessed. Potential impact during port operations Emissions of dust from bulk cargo handling and gasses from cargo handling equipment can be sources of air pollution. Liquid cargo handling may result in the release of vapour during the cleaning of storage tanks and by the breather system for ambient temperature changes. Accidental leakage of gasses may cause problems such as toxic material emission, explosions, fumes, odours and hazardous airborne emissions.
4.3.6
Noise Environment
Potential impact during port construction Construction activities may create a problem of noise and vibration generated by construction equipment, truck traffic, work vessels and other similar sources. Potential impact during port operations Cargo handling equipment and road traffic are two major sources of noise and vibration, which may cause inconvenience to the local people.
4.3.7
Solid Waste Management
Potential impact during port construction Wastes from construction activities are mainly spoils generated by dredging. Disposal of dredged material on land may cause destruction of plants, loss of vegetation, leakage of contaminated materials and salt, odour, an unsightly view and other nuisances to the local community.
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Potential impact during port operations Cargo operations produce wastes such as the remains of bulk cargo storage, rubbish from unpacking, floating garbage and other wastes from daily activities. Generation of garbage from the offices and township and requires proper disposal.
4.3.8
Socio-cultural impacts
Potential impact due to port location Building or expanding a port often requires relocation of the local community, sometimes causing conflicts with local people. Damages to the fishing nets and navigational problems to the fishing community would need to be assessed. Industrialization and modernization may change the cultural traditions of the local community. Potential impact during port operations Oil and oily wastes discharged from ships may reach nearby beaches and spoil recreational activities, which cause serious damage to tourism. Ship traffic may disturb pleasure boat cruising and fishery boat operations. Ship calls create many related jobs including pilotage, tug services, stevedoring, bunker and crew services; however, they may bring considerable changes in the life style of local people. Movement of vessels in the approach channels and outer harbors are often encountered by the fishing nets resulting in mutual losses. It is quite common for the fishing nets getting entangled with the moving vessels, causing huge financial losses to the coastal fishing community. Port activities may result in the hiring of local labour and procurement of various commodities from a local market. The local economy will be boosted by port-related activities and be greatly involved in urbanization and industrialization. Labour from outside may be a possible source of conflict with a local community.
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4.4 Key Issues for Development

The port at Tadadi would primarily cater to the iron-ore export segment, for which the hinterland catchment area would be the Bellary/ Hospet region in the northern part of the State. The key issues with respect to development of the port at Tadadi can be broadly categorized as follows:
4.4.1 Technical issues

The Aghanashini river is prone to high silting. To avoid flooding and other risks associated with silting, periodic de-silting operations would need to be carried out. This would result in increased maintenance costs in addition to high dredging costs.
4.4.2 Connectivity issues

For ease of cargo movement at the port, connectivity to the hinterland (i.e., the land behind the borders of a coast or river) is an important factor. The connectivity details to the port have been analyzed and presented in the next Chapter.
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5.
ANALYSIS OF CONNECTIVITY TO PORT
Connectivity to the port is a critical factor for determining the feasibility of the proposed port at Tadadi. Since the port would primarily cater to the iron-ore export segment, the connectivity has been analyzed from the perspective of this command region for the port i.e., Bellary Hospet region in North Karnataka. Both Rail and Road options were
considered for examining the connectivity to the port and the same is set out in this Chapter.
5.1 Connectivity by Rail

Currently there is no railway line connecting Tadadi to the hinterland. The nearest railway line is the Konkan Railway connecting Mumbai and Kerala. The nearest railway station to Tadadi is at Ankola which is about 25 km from Tadadi. However, there are proposals for development of railway lines connecting the hinterland and Tadadi. The various options of connecting Tadadi with the hinterland are set out below: Railway line between Hubli and Ankola Railway line between Honnavar and Talguppa Railway line between Londa Castlerock and Tadadi
Honnavar
Fig 19: Options for railway connectivity to Tadadi Infrastructure Development Corporation (Karnataka) Limited 38
5.1.1 Feasibility of Hubli Ankola Railway Line

The Railways have proposed a new railway line to connect Hubli and Ankola towns. The length of the proposed line is approximately 167 km. If this section is developed, it would establish connectivity between the mining catchment region of Bellary Hospet and Tadadi.
However, there are certain issues with the development of this line. Since, the line would need to cut across the Western Ghats and through Uttar Kannadas forest area, it would raise serious environmental concerns. Appropriate clearances would need to be obtained from statutory authorities concerned for development of this line.
5.1.2 Feasibility of Honnavar Talguppa Railway Line

Similar issues exist with the proposed Honnavar Talguppa railway line near Shimoga. Since this line would pass near Jog Falls, it would have an enormous environmental impact in the region.
Therefore, owing to these environmental concerns, the development of this railway line seems questionable. Appropriate clearances would need to be obtained from statutory authorities concerned for development of this line.
5.1.3 Feasibility of Hubli - Londa Castlerock Tadadi Railway Line

The existing railway line from Bellary Hubli Madgaon could be explored for transportation of cargo between Tadadi and the Bellary region. Though there is an existing line between Londa and Castlerock which runs across the Ghats, it would be required to develop the rail link between Castlerock and Tadadi which would run along the Konkan Railway line.
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The new line would require construction of several tunnels and bridges along the Ghat section, making it an expensive option. Further, if the Londa Castlerock rail line is used for cargo movement from Bellary, the nearest port would be Mormugao, and not Tadadi. The cargo would need to travel an additional distance to access the port at Tadadi which may not be an economically viable option.
As can be inferred from the analysis above, the railway connectivity option to the port heavily depends on the clearances required from the statutory authorities concerned and hence may not be possible to implement in the near term.
5.2 Connectivity by Road

The road connectivity link between Bellary Hospet and Tadadi would be via Hubli on the National Highway (NH) 63. At Hubli two options exist for connecting to Tadadi.
Option 1: NH 63 - From Hubli region to Ankola and NH 17 From Ankola to Tadadi
Option 2: NH 4 From Hubli to Tadas, SH 69 From Tadas to Kumta, NH 17 From Kumta to Tadadi
Fig 20: Connectivity by Road
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The NH 63 between Bellary and Hubli would be a common link in both the options. Further analysis of the options is presented below.
5.2.1 Option 1
The road stretches in this Option consist of NH 63 from Hubli to Ankola and subsequently NH 17 to Tadadi. The connectivity from NH 17 to the port would be through a local road.
Fig 21: Road Connectivity Option 1
The length of road stretches and the existing carriageway details are set out in the table below:
Table 7: Option 1 Length of road stretches
Road NH 63 NH 63 NH 17
Stretches Hospet Hubli Hubli Ankola Ankola -Tadadi
Length (Km) 140 128 25
Existing Carriage way (m) 7 7 7
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The connectivity and the corresponding traffic movement have been analyzed taking into account the existing road width and possible option of road widening in the near future. The traffic movement possible without road widening (existing road) and with road widening options are analysed below.
Existing road conditions
The existing NH 63 is a 2 lane road. As per Indian Roads Congress (IRC) norms and assuming a service level B on the road, the maximum passenger car units (pcu) possible on the road is 20000. The non-truck traffic in terms of pcus is assumed to be 3000 and the truck traffic is assumed to be 17000. Assuming 3 pcus per truck, the maximum number of trucks that can ply on the road is estimated at 2833 in a single direction. Since a truck can carry upto 12 tonnes of cargo, the total cargo capacity that can be transported on the road is estimated at 15.71 million tonnes per annum (mtpa).
Table 8: Option 1 - Cargo carrying capacity of road (without widening)
Hospet Hubli Particulars Ankola (NH 63) Lane Service Level B (max pcu) Non-truck traffic (max pcu) Possible Truck Traffic (max pcu) Possible per direction Truck (pcu) Max no. of trucks (per direction) [assumed at 3 pcu per truck] Cargo Capacity (Tonnes per day per direction) [assumed at 12 34000 2 lane 20000 3000 17000 8500 2833
Tonnes per truck] Total Cargo Capacity (Tonnes per day) 47600
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Hospet Hubli Particulars Ankola (NH 63) (incl 40% return load) Cargo Capacity (mtpa) (assuming 330 days of traffic) Cargo Capacity (increased capacity) Cargo Capacity (mtpa) 115% 18.06 15.71
Further, it is assumed that with a reduced service level the cargo that can be transported on the road can be increased by increasing the number of vehicles on the road. However, as can be inferred from the speed flow model given alongside, the number of vehicles cannot be indefinitely increased.
Increase in number of vehicles would reduce the speed of the vehicles and at a certain point, no further vehicles can be accommodated on the road rendering the road nonfunctional. Hence a reasonable capacity increase of 15% has been assumed on the road. With this increase in truck traffic, the total cargo that can be transported on the road is estimated to be 18.06 million tones per annum.
After road widening
The option of widening the existing 2 lane NH road to a 4 lane road has been considered for analysing the additional cargo that can be tranported. In this scenario the total cargo that could be transported on the road is set out in the table below.
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Development of Port at Tadadi, Karnataka Feasibility Report Table 9: Option 1 - Cargo carrying capacity of road (with widening)
Hospet Hubli Particulars Ankola (NH 63) Expansion Service Level B (max pcu) Non-truck traffic Possible Truck Traffic (max pcu) Possible per direction Truck (pcu) Max no. of trucks (per direction) [assumed at 3 pcu per truck] Cargo Capacity (Tonnes per day per direction) [assumed at 12 Tonnes per truck] Cargo Capacity (Tonnes per day) (incl 40% return load) Cargo Capacity (mtpa) Cargo Capacity at high traffic density Cargo Capacity (mtpa) 33.26 115% 38.25 100800 72000 2 lane to 4 lane 40000 4000 36000 18000 6000
At a high traffic density, the total cargo that can be transported on the road would be 38.25 million tones per annum.
5.2.2 Option 2
The road stretch in this option would be from Hubli to Tadas on NH 4 and from thereon to Kumta on SH 69. Kumta is connected to Tadadi by NH 17. Connectivity to the jetty would be through a local road.
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Tadadi
From Bellary to Tadadi via NH 63 & SH 69 (till Kumta) Fig 22: Road Connectivity Option 2
The length of road stretches and the existing carriageway details are set out in the table below:
Table 10: Option 2 Length of road stretches
Road NH 63 NH 4 SH 69 NH 17
Stretches Hospet Hubli Hubli - Tadas Tadas - Kumta Kumta-Tadadi
Length (Km) 140 30 137 15
Existing Carriage way (m) 7 14 5.5 to 7 7
The traffic movement possible on this stretch without road widening (existing road) and with road widening options have been analysed below.
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Existing road conditions The NH 4 stretch between Hubli and Tadas is a 4 lane road. While the other stretches of NH 63 and NH 17 are 2 lane roads, the SH 69 road stretch between Tadas and Kumta is an intermediate road. This intermediate road would form the bottleneck for the cargo to be transported on this road segment.
Given the existing road stretches and the IRC norms and assumptions explained in Option 1 above, the cargo capacity that can be transported on this road segment is estimated at 8.32 million tonnes per annum (mtpa). The details are set out in the table below:
Table 11: Option 2 - Cargo carrying capacity of road (without widening)
Particulars Lane Service Level B (max pcu) Non-truck traffic (max pcu) Possible Truck Traffic (max pcu) Possible per direction Truck (pcu) Max no. of trucks (per direction) [assumed at 3 pcu per truck] Cargo Capacity (Tonnes per day per direction) [assumed at 12 Tonnes per truck] Total Cargo Capacity (Tonnes per day) (incl 40% return load) Cargo Capacity (mtpa) Cargo Capacity (increased capacity) Cargo Capacity (mtpa)
Tadas - Kumta (SH 69) Intermediate 12000 3000 9000 4500 1500
18000
25200
8.32 115% 9.56
Assuming a reasonable 15% increase in traffic density on the road, the total cargo that can be transported on the road is estimated to be 9.56 million tones per annum.
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After road widening Considering the option of widening the existing intermediate road stretch of SH 69 and widening the 2 lane stretch of NH 63 to a 4 lane road, the total cargo that can be transported on the road is set out in the table below.
Table 12: Option 2 - Cargo carrying capacity of road (with widening)
Particulars
Tadas Kumta (SH 69) Intermediate lane to 2 lane 20000 4000 16000 8000 2667
Expansion Service Level B (max pcu) Non-truck traffic Possible Truck Traffic (max pcu) Possible per direction Truck (pcu) Max no. of trucks (per direction) [assumed at 3 pcu per truck] Cargo Capacity (Tonnes per day per direction) [assumed at 12 Tonnes per truck] Cargo Capacity (Tonnes per day) (incl 40% return load) Cargo Capacity (mtpa) Cargo Capacity at high traffic density Cargo Capacity (mtpa)
32000
44800
14.78 115% 17.00
At a high traffic density, the total cargo that can be transported on the road would be 17 million tones per annum.
The feasibility analysis of the various road options are summarised below.
5.2.3 Feasibility Analysis of Option 1

The feasibility analysis for Option 1 of the road stretch is summarized below: NH 63 (Hospet Hubli) stretch can be widened as it is in plain terrain.
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Widening of NH 63 (Hubli Ankola) stretch would involve construction in the ghat section. Further, widening of this road would also entail land
acquisition including forest land. The widening of NH 17 (Ankola Tadadi) stretch would involve construction through a hilly terrain. This, in turn, would increase the cost of construction and also the time required for construction. The extent of land to be acquired including forest land for this Option is set out in the table below.
Table 13: Option 1 Land acquisition details
Road NH 63 NH 63 NH 17 TOTAL
Stretches Hospet Hubli Hubli Ankola Ankola -Tadadi
Land Acquisition for 4 laning* (acres) 550 510 100 1160
Forest Section (km)
78 (43km ghat section)
*Land acquisition = Length X 16 m ( 7m carriage way; 4m median and 5m drains)
As can be inferred from the table above, assuming a 16m width of land required for widening, a total of about 1160 acres of land would need to be acquired of which 78 km would be through forest land.
Environmental and forest clearances at the state and central level would need to be obtained for the same.
All the roads stretches mentioned above are National Highways and come under the purview of MORTH and therefore the widening envisaged would need to be undertaken by MORTH.
5.2.4 Feasibility of Option 2

The feasibility analysis for Option 2 of the road stretch is summarized below:
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NH 63 (Hospet Hubli) stretch can be widened as it is in plain terrain. The NH 4 (Hubli - Tadas) stretch is a 4 lane road and is part of the Golden Quadrilateral.
Widening of SH 69 (Tadas - Kumta) stretch would involve construction in the ghat section and would need to be undertaken by the state Public Works Department.
The extent of land to be acquired including forest land for this Option is set out in the table below.
Table 14: Option 2 Land acquisition details
Road NH 63 NH 4 SH 69 NH 17 TOTAL
Stretches Hospet Hubli Hubli - Tadas Tadas - Kumta Kumta-Tadadi
Land Acquisition for 4 laning* (acres) 550 540 60 1150
Forest Section (km)
11
*Land acquisition = Length X 16 m ( 7m carriage way; 4m median and 5m drains)
As can be inferred from the table above, assuming a 16m width of land required for widening, a total of about 1150 acres of land would need to be acquired of which 11 km would be through forest land.
The widening of NH 17 (Kumta Tadadi) would need to be undertaken by MORTH.
All the roads stretches mentioned above except SH 69 are National Highways and come under the purview of MORTH and the widening envisaged would need to be undertaken by MORTH. SH 69 is under the purview of the state Public Works Department (PWD) and therefore could be taken up by PWD.
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5.3 Cargo availability at Tadadi Port

Based on the connectivity analysis presented above, two scenarios have been analysed for estimating the cargo availability at the port.
Existing road conditions Considering the existing facilities and capacities available, the maximum cargo that can be transported on the NH 63 (Hospet Hubli) stretch which is a 2 lane road is 18.06 million tonnes per annum. This cargo could move to either of the ports at Karwar or Belekeri on the western coast. The present cargo capacity that can be handled in these ports is about 9 million tonnes per annum. Once the port at Tadadi is developed, there exists a possibility for part of this cargo to be diverted to Tadadi due to better facilities and infrastructure available at Tadadi.
It is assumed that of the existing 6 million tonnes of cargo at Belekeri, about 4 million tonnes of iron ore would get diverted to Tadadi and out of the 2 million tonnes of iron-ore cargo handled at Karwar, about 1 million tonne would get diverted to Tadadi. Therefore, it is assumed that the existing ports at Karwar and Belekeri would handle a total of 4 million tonnes after Tadadi is developed and the remaining cargo would go to Tadadi. The details of the port capacities at Karwar and Belekeri before and after development of the port at Tadadi and subsequently the cargo available for Tadadi are set out in the table below.
Table 15: Cargo availability at Tadadi port (existing road conditions)
Particulars Cargo Carrying Capacity of Road @ service level B (mtpa) Present Port Capacity for Karwar & Belekere (mtpa) Port Capacity for Karwar & Belekere after development of Tadadi port (mtpa) Spare Capacity available for Tadadi (mtpa)
Capacity 18.06 10.00 04.00 14.06
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Therefore, it is estimated that a total of 14.06 million tonnes per annum of cargo would be available for the port at Tadadi with the existing road conditions.
After road widening Assuming that the road stretches connecting NH 63 and 17 are widened and assuming the cargo movement between the ports at Karwar and Belekere (as mentioned above), the cargo available for Tadadi is set out in the table below:
Table 16: Cargo availability at Tadadi port (after road widening)
Particulars Cargo Carrying Capacity of Road @ service level B (mtpa) Present Port Capacity for Karwar & Belekere (mtpa) Port Capacity for Karwar & Belekere after development of Tadadi port (mtpa) Spare Capacity available for Tadadi (mtpa)
Capacity 38.25 10.00 04.00 34.25
An estimated total of 34.25 million tonnes per annum of cargo would be available for the port at Tadadi after the connecting roads have been widened.
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6.
FINANCIAL VIABILITY ANALYSIS
Based on the connectivity scenarios considered in the previous chapter and the estimated cargo availability at Tadadi, the financial viability analysis has been carried out for the following scenarios:
Scenario 1: Existing road conditions: 14.06 million tones per annum. Scenario 2: After road widening: 34.25 million tones per annum.
Assuming this cargo availability at Tadadi port, a preliminary financial viability analysis has been carried out for the proposed port for both scenarios, the details of which are presented in this chapter.
6.1 Land Development

The Karnataka Industrial Area Development Board (KIADB) had acquired a total of 1854.29 acres in 2001 for the development of port at Tadadi. Of this, about 35 acres of land has been utilized for the Konkan Railway Project. The remaining 1819 acres of land is available for development of the port.
6.2 General Assumptions

The general assumptions considered for the financial Viability are set out in the table below.
Table 17: Estimated Project Cost
Sl. No. 1 2. 3. Annual Inflation Concession Construction
Item
Unit % years months
Total 5% 30 36
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Sl. No. 4. 5. 6.
Item Start of construction Commercial Operation Date Depreciation (written down method)
Unit date date %
Total 1-Sep-10 1-Sep-13 10%
6.3 Project Cost

The major cost component of the development works of the port would be the dredging costs. The estimated base construction cost of the Project is estimated to be about Rs. 1630 Core. The Total Project Cost taking into account a 3 year construction period and inflation at 5% per annum is Rs.2230.71 Crore for a port capacity of 14.06 mtpa. The break up of the Total Project Cost is set out in the table below.
Table 18: Breakup of Total Project Cost
Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Dredging Port works
Item
Unit Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore Rs. Crore
Total 700.00 200.00 110.00 315.00 110.00 25.00 40.00 20.00 30.00 2.00 78.00 1630.00 49.00 271.02
Cargo Terminal Cargo Handling Harbor Craft Common infra Coastal production Navigation Aids Port Rail Yard Fire Fighting Technical Contingency Preliminary Expenses Cost escalation during construction
Base Construction Cost 12. 13.
14.
Interest During Construction(IDC)
Rs. Crore
280.69 2230.71
Total Project Cost
Rs. Crore
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A 70% Debt at an interest rate of 12.5% has been assumed for calculating the IDC component for the Project. Further a 3% of the Base Construction Cost has been assumed for preliminary Expenses.
6.4 Sources of Finance

The Project has been assumed to be financed through the following means: Debt Equity Grant (Viability Gap Fund - VGF)
Table 19: Sources of finance
Parameter Debt : Equity ratio Cost of debt Moratorium for debt Repayment period for debt
Value 2.33:1 12.5 % per annum 2 years 9 years
6.5 Capacity Estimates

As discussed in Chapter 4, the maximum cargo that can be handled by NH 63 determines the capacity to which the port can be designed. The capacity estimates for the port are setout below.
Table 20: Capacity estimates
Sl. No. 1. 2. 3. 4.
Particulars Scenario 1: Design Capacity of Tadadi existing road connectivity (mtpa) Scenario 2: Design Capacity of Tadadi after road widening (mtpa) Capacity Utilisation in first year Year of operation in which 100% capacity is utilised
Assumptions 14.06 34.25 60% 5th year
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6.6 Revenue Estimates

The revenue driver for the project would be the tariffs accruing from various port activities. The revenue assumptions are set out in the table below.
Table 21: Revenue estimates
Sl. No. 1 2. 3. 4. 5. 6.
Particulars Average Carrying Capacity (tonnes) Average GRT (tones) Average Turnaround (days) Average output per ship berth day (tones per day) Average pilotage (hrs) Revenue from Fine (% of revenue from fee)
Assumptions 40000 50000 2.35 17000 2 10%
The existing tariffs at NMPT have been analysed. The same have been utilized for the viability analysis. The existing tariffs at NMPT are set out in the table below.
Table 22: Tariffs at NMPT
Sl. No. 1 2. 3. 4. 5. Port dues Pilotage Berth Hire
Particulars
New Mangalore Port Trust 6.44 11.52 0.12 * 35.00 102.60
Wharfage / Waterfront Royalty Cargo Handling (cranes , forks, etc)
* 25% of Berth Hire is the reservation fee that is added
6.7 Operations and Maintenance Expenses

The operation and maintenance costs assumed for the financial analysis are set out below.
55
Development of Port at Tadadi, Karnataka Feasibility Report Table 23: Estimated operation and maintenance costs
Sl. No. 1. 2. 3. 4. 5. 6.
Particulars
Assumptions
Annual Maintenance (as % of Civil cost Cost of Dredging) Dredging maintenance ( Rs. crore per year) Periodicity of dredging Handling Cost (Rs./ tonnes) Insurance (% of Gross Assets) Collection expenses (Rs. Crore)
3% 70.00 Annual 35 1% 0.6
6.8
Project Viability Scenario 1: Existing road connectivity
Based on the assumptions presented, the Project IRR for a 30 year concession period with the NMPT tariff levels is set out in the table below.
Table 24: Project Viability Scenario 1
Year 10 20 30
Project NPV (Rs. Crores) (1137) (740) (553)
IRR NA 5% 8%
For a 30 year concession period the IRR is estimated to be 8%. To increase the rate of return such that the project is attractive for the private sector, the Project could be undertaken through a Viability Gap Funding.
6.8.1 Grant
The assumptions for Grant drawdown for the purpose of financial analysis are set out below.
Table 25: Assumptions for grant drawdown
Sl. No. 1.
Particulars
Assumptions
Max grant during Construction - Equity Support ( % of Project
20%
56
Sl. No. Cost) 2. 3.
Particulars
Assumptions
Max grant during Operation O&M Support ( % of Project Cost) O&M Support period (years after construction)
20% 5 years
Based on these assumptions, the viability gap funding required for the project assuming a 30 year concession period is set out below.
Table 26: Estimated Grant Requirements
Target PIRR 15% 12%
Equity Support (Rs. crore) 433.6 433.6
Grant O&M Support (Rs. crore) 423.5 120.3
% of Project Cost 39.5% 25.5%
For a Project IRR of 15% a viability gap funding to the extent of 39.5% of the project cost is required to be provided. The Revenue calculation and Profit & Loss Statements are set out in Annexure 1.
6.9
Project Viability Scenario 2: After road widening
With an increase in the capacity of the Port from 14.06 mtpa to 34.25 mtpa due to raod widening, the Base Construction cost is likely to increase by another Rs 525 crore4. The Project cost is estimated to be 2,949.5 crore, which includes IDC of Rs. 371 crore. The Project IRR for the given Scenario is set out in the table below.
Table 27: Project Viability Scenario 2
Year 10 20 30
Project NPV (Rs. Crores) (480) 624 1,169
IRR 6% 15% 17%
The cost of land acquisition and the construction cost has not been factored in.
57
For a 30 year concession period the IRR is estimated to be 17% which could be attractive for the private sector.
The Revenue calculation and Profit & Loss Statements are set out in Annexure 2.
58
7.
INDICATIVE OPTIONS FOR PROJECT IMPLEMENTATION
This Chapter sets out the indicative options for implementing the project on a publicprivate partnership (PPP) framework.
7.1 Concession Structure

It is proposed to implement the project on a PPP Concession framework. Under this structure the ownership of the land would always vest with the Concessioning Authority and only the development rights would be given to the private developer (Concessionaire). The concession structure is as follows: Development (design, construction, O & M) by private developer with VGF grant/ negative grant as the Bid Parameter
The indicative roles and responsibilities of both the Concessioning Authority and Concessionaire are set out below.
Roles and responsibilities of the Concessioning Authority
The roles and responsibilities of the Concessioning Authority are set out below. Handover Project Site free from all encumbrances to the Concessionaire as specified in the Concession Agreement Shifting of any infrastructure utility lines such as electric lines, water lines, drainage line, etc (if any)
59
Provide all the common infrastructure facilities such as water, electricity, sewerage, roads, subways, etc that would be required by the Concessionaire for efficient implementation of the Project Facilities.
Clearly spell out the design, construction and O&M requirements of the Project Facilities
Clearly specify the Project completion period along with mile stones and payment terms
Assist the Concessionaire in obtaining all required clearance for setting up of the Project Facilities
Make payments to the Concessioning Authority (if any) on time as specified in the agreement.
Roles and responsibilities of the Concessionaire
The roles and responsibilities of the Concessionaire are set out below. Mobilization of funds required for the development of the Project Design, construct, implement, operate and maintain the Project Facilities and required support facilities etc as specified by the Concessioning Authority Operation and Maintenance the Project Facilities as per the standards specified by the Concessioning Authority Completion of the Project in a timely manner Obtain all necessary clearances from the Government for the commissioning of the Project. Make payments to the Concessioning Authority (if any) on time as specified in the agreement. Handover the Project site along with Project Facilities to the Concessioning Authority on completion of the concession period. Concessionaire shall have right to collect revenues from the Project Facilities
60
7.2 Analysis of proposed PPP framework

Salient features of the concession structure is set out below: 1 2 3 Structure Typical Tenure Bidding Parameter Build Operate Transfer (BOT) 30 years Lowest grant sought Concessionaire has the flexibility to design, Control of 4 Concessioning Authority in Project finance, construct, operate and manage facilities. However, development of the facilities would be as per the requirements set out by the Concessioning document. Authority in the bidding
The merits and demerits of this structure is set out below:
Merits
Demerits and remain Project with Technical proposals need to be checked for conformance with specifications minimum
Ownership Facilities
of
land
would
Concessioning Authority
All risks such as construction risk, O&M risk, Financing risk and
Market/ Revenue risk is transferred to private partner.
Land and the facilities developed are transferred back to Concessioning
Authority at the end of concession period.
Private
partner
would
have
the
flexibility of developing the Project
61
Facilities under the broader framework of specifications specified by
Concessioning Authority. Risk of time bound completion or implementation of the Project is borne by the private partner
7.3 Indicative Bid Process

The indicative bid process for the Project is set out below. A competitive two stage bid process could be followed for the selection of the private partner (the Bidder) A two stage bid process would comprise of the qualification stage and proposal stage. The bidder who qualifies the qualification stage would only be qualified for the proposal stage.
(i) Qualification Stage Request for Qualification document would be issued to
interested bidders
(ii) Bidders who qualify in RFQ stage would be issued Request for Proposal
document (RFP) along with Concession Agreement. Concession Period could be for 30 years.
Bid Document
Model Planning Commission document template would be used / modified for the Project
Bidders both Single Business Entity and Consortium of Business Entities would be eligible for this Project.
For the Project, Business Entity shall mean - A Company registered in India under the provisions of the Companies Act, 1956, or under the equivalent law in the case of
62
a foreign Company. Copy of such Registration Certificate should be submitted along with the Bid. Number of consortium members shall be limited to (6) six Members of the Consortium would have to enter into a Joint Bidding Agreement.
Eligibility Criteria
Experience
The bidder must satisfy any one of the following experiences5: 1. Category 1: 2. Category 2: 3. Category 3: 4. Category 4: Development6 of Port Infrastructure Projects Operation & Maintenance of Port Infrastructure Projects Development of Core Infrastructure7 Projects Operation & Maintenance of Core Infrastructure Projects
Financial
The bidder must satisfy any two of the following financial criteria 1. Net Worth as at the end of the recent/latest financial year. 2. Aggregate Net Cash Accruals for the last three financial years. 3. The Average Annual Turnover of the Bidder for the last three financial years
5 Bidder either as Single Entity or as a Consortium would be eligible to quote experience only in respect of a particular Eligible Project under any one categories as mentioned above. 6 For the purpose of this project Development shall mean design, finance, construct, operate and maintain a facility 7 For the purpose of this project - Core Infrastructure Projects shall mean projects in real estate development, power, telecom, ports, railways, induatrial parks, petroleum and natural gas, petrochemicals, steel, cement, fertilisers, mining, pipelines, irrigation, water supply and sewerage.
63
8.
KEY ISSUES & CONCLUSIONS
The summary of the feasibility analysis and other key issues that are important to be considered for the proposed port at Tadadi are presented in this Chapter.
8.1 Conclusions
The port at Tadadi appears to be viable on a stand alone basis. This is contingent upon the various connectivity options that need to be pursued government levels. Out of the two options of road and rail connectivity, the connectivity by road appears to be more amenable for development in the near future as compared to the option by rail. Increasing the road width primarily of NH 63 would serve a dual purpose of increasing the viability of the port and improving connecting from the command region. However, the concerns of land acquisition especially forest land would need to be suitably addressed.
The viability of the port at Tadadi would not be affected by the various connectivity issues if an industrial facility is developed near the port which uses the port for import or export of cargo. The port would then also be viable on a stand alone basis.
There is a state government proposal to develop a power plant at Tadadi. In case the power plant does come up at Tadadi, the viability of the port would significantly improve as the power plant would generate additional cargo for the port, thereby increasing the revenues of the port.
64
8.2 Key Issues

Detailed studies would need to be carried out to determine the technical viability of the project. Silting of the Aghanashini River would have to be considered while assessing the technical requirements of the port. As a result of the port being developed in Tadadi, the bulk cargo currently being moved from Karwar and Belekeri is expected to shift to Tadadi reducing the cargo movement at these ports. Further, given the volume of cargo which can be moved, it is unlikely that any other port in the northern part of the coast of the state could be commercially viable after the port at Tadadi is developed.
Other factors that could influence the performance of the port at Tadadi are set out below:
a)
The port at Krishnapatnam in Andhra Pradesh could compete with Tadadi for the iron-ore cargo from Bellary Hospet. The distance by rail from Bellary Hospet to the port is approximately 425 km which is about the same distance to Tadadi as well. An SPV has already been formed by Rail Vikas Nigam Limited, Government of Andhra Pradesh, Krishnapatnam Port Company Limited and National Mineral Development Corporation for implementation of Obulavaripalle-Krishnapatnam New Railway Line Project. This line would provide the desired rail connectivity to the Hospet Bellary belt from Krishnapatnam port.
b)
NMPT and the Mormugoa port are currently planning to expand their existing capacities by adding new facilities (berths). The expansion of these ports would affect the viability of the port at Tadadi.
65
Annexure 1
Fin Year Start Date End Date Construction Days Operation days year of Concession Capacity Calculation Max Cargo on Road(mtpa) Karwar Port capacity(mtpa) Belekere Port capacity(mtpa) Residual Cargo Capacity Traffic % utilization Cargo Handled at Tadadi No of vessels No of Berth Fares Navigation Berth Port dues(Rs. per GRT) Pilotage (Rs. per GRT Hrs) Berth Hire (Rs. per GRT Hrs) Wharfage (Rs. per Tonne) Wharf Handling(Rs. per Tonne) 0% 0.00 0 0.00 6.76 12.10 0.12 36.75 107.73 0% 0.00 0 0.00 7.09 12.70 0.13 38.59 113.12 0% 0.00 0 0.00 7.45 13.34 0.14 40.52 118.77 60% 4.90 123 0.88 7.82 14.00 0.14 42.54 124.71 70% 9.84 247 1.76 8.21 14.70 0.15 44.67 130.95 80% 11.25 282 2.01 8.62 15.44 0.16 46.90 137.49 90% 12.66 317 2.26 9.05 16.21 0.17 49.25 144.37 100% 14.06 352 2.51 9.51 17.02 0.17 51.71 151.59 100% 14.06 352 2.51 9.98 17.87 0.18 54.30 159.17 100% 14.06 352 2.51 10.48 18.76 0.19 57.01 167.12 100% 14.06 352 2.51 13.38 23.95 0.25 72.76 213.30 100% 14.06 352 2.51 17.07 30.57 0.31 92.87 272.23 100% 14.06 352 2.51 21.79 39.01 0.40 118.52 347.44 100% 14.06 352 2.51 27.81 49.79 0.51 151.27 443.43 2011 2012 2013 1-Apr-10 1-Apr-11 1-Apr-12 31-Mar-11 31-Mar-12 31-Mar-13 212 366 365 0 0 0 1 2 3 18.06 3 6 10 18.06 3 6 10 18.06 3 6 10 Revenue Calculations 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 1-Apr-13 1-Apr-14 1-Apr-15 1-Apr-16 1-Apr-17 1-Apr-18 1-Apr-19 1-Apr-24 1-Apr-29 1-Apr-34 1-Apr-39 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-25 31-Mar-30 31-Mar-35 31-Mar-40 153 0 0 0 0 0 0 0 0 0 0 212 365 366 365 365 365 366 365 365 365 366 4 5 6 7 8 9 10 15 20 25 30 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15 18.06 2 2 15
Cargo Operations Revenue Navigation
Port dues(Rs. Crore) Pilotage(Rs. Crore) Berth Berth Hire(Rs. Crore) Wharfage(Rs. Crore) Cargo Handling Opex (Rs. Crore) Annual Maintenance Dredging maintenance Handling Cost Insurance Collection Expenses
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.81 17.22 4.99 20.85 61.12 16.67 41.83 12.51 10.86 0.44
10.14 36.32 10.51 43.98 128.92 30.14 75.62 45.43 20.08 0.79
12.16 43.53 12.60 52.77 154.70 31.65 79.40 54.52 18.07 0.83
14.35 51.39 14.88 62.34 182.74 33.23 83.37 64.40 16.26 0.87
16.73 59.91 17.35 72.73 213.19 34.89 87.54 75.13 14.64 0.92
17.57 62.91 18.21 76.36 223.85 36.64 91.92 78.89 13.17 0.96
18.45 66.05 19.12 80.18 235.05 38.47 96.51 82.83 11.85 1.01
23.55 84.30 24.41 102.33 299.99 49.10 123.18 105.72 7.00 1.29
30.05 107.59 31.15 130.61 382.87 62.66 157.21 134.93 4.13 1.64
38.35 137.32 39.76 166.69 488.65 79.97 200.65 172.20 2.44 2.10
48.95 175.26 50.74 212.75 623.65 102.07 256.08 219.78 1.44 2.68
Profit & Loss Statement Rs. Crore Fin Year Start Date End Date Construction Days Operation days year of Concession Revenue Revenue from fee Revenue from fine Revenue from Grant Expenses Annual Maintenance Dredging maintenance Handling Cost Insurance Collection Expenses EBIDT Interest depreciation (WDM) EBT Tax PAT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.67 41.83 12.51 10.86 0.44 37.58 104.20 223.07 -289.69 0.00 -289.69 30.14 75.62 45.43 20.08 0.79 80.79 195.19 200.76 -315.16 0.00 -315.16 31.65 79.40 54.52 18.07 0.83 118.88 188.86 180.69 -250.67 0.00 -250.67 33.23 83.37 64.40 16.26 0.87 160.12 171.71 162.62 -174.20 0.00 -174.20 34.89 87.54 75.13 14.64 0.92 204.79 150.04 146.36 -91.61 0.00 -91.61 36.64 91.92 78.89 13.17 0.96 217.22 128.37 131.72 -42.87 0.00 -42.87 38.47 96.51 82.83 11.85 1.01 230.06 106.68 118.55 4.83 1.64 3.19 49.10 123.18 105.72 7.00 1.29 301.75 4.54 70.00 227.21 77.23 149.98 62.66 157.21 134.93 4.13 1.64 389.92 0.00 41.34 348.58 118.48 230.10 79.97 200.65 172.20 2.44 2.10 500.48 0.00 24.41 476.07 161.82 314.25 102.07 256.08 219.78 1.44 2.68 640.43 0.00 14.41 626.01 212.78 413.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 109.00 10.90 0.00 229.87 22.99 0.00 275.77 27.58 0.00 325.69 32.57 0.00 379.91 37.99 0.00 398.91 39.89 0.00 418.85 41.89 0.00 534.57 53.46 0.00 682.27 68.23 0.00 870.77 87.08 0.00 1,111.34 111.13 0.00 2011 1-Apr-10 31-Mar11 212 0 1 2012 1-Apr-11 31-Mar12 366 0 2 2013 1-Apr-12 31-Mar13 365 0 3 2014 1-Apr-13 31-Mar14 153 212 4 2015 1-Apr-14 31-Mar15 0 365 5 2016 1-Apr-15 31-Mar16 0 366 6 2017 1-Apr-16 31-Mar17 0 365 7 2018 1-Apr-17 31-Mar18 0 365 8 2019 1-Apr-18 31-Mar19 0 365 9 2020 1-Apr-19 31-Mar20 0 366 10 2025 1-Apr-24 31-Mar25 0 365 15 2030 1-Apr-29 31-Mar30 0 365 20 2035 1-Apr-34 31-Mar35 0 365 25 2040 1-Apr-39 31-Mar40 0 366 30
67
Annexure 2
Fin Year Start Date End Date Construction Days Operation days year of Concession Capacity Calculation(mtpa) Max Cargo on Road (mtpa) Karwar Port capacity(mtpa) Belekere Port capacity(mtpa) Residual Cargo Capacity(mtpa) Traffic % utilization Cargo Handled at Tadadi (mtpa) No of vessels No of Berth Fares Navigation Port dues (Rs. per GRT) Pilotage (Rs. per GRT Hrs) Berth Berth Hire(Rs. per GRT Hrs) Wharfage(Rs. per Tonne) Cargo Wharf Handling (Rs. per Operation Tonne) s Revenue Navigatio Port dues (Rs. Crore) n Pilotage(Rs. Crore) Berth Berth Hire (Rs. Crore) Wharfage(Rs. Crore) Cargo Handling Opex Annual Maintenance Dredging maintenance Handling Cost Insurance Collection Expenses 0% 0.00 0 0.00 6.76 12.10 0.12 36.75 107.73 0% 0.00 0 0.00 7.09 12.70 0.13 38.59 113.12 0% 0.00 0 0.00 7.45 13.34 0.14 40.52 118.77 60% 11.94 299 3 7.82 14.00 0.14 42.54 124.71 70% 23.98 600 5 8.21 14.70 0.15 44.67 130.95 80% 27.40 686 5 8.62 15.44 0.16 46.90 137.49 90% 30.83 771 6 9.05 16.21 0.17 49.25 144.37 100% 34.25 857 7 9.51 17.02 0.17 51.71 151.59 100% 34.25 857 7 9.98 17.87 0.18 54.30 159.17 100% 34.25 857 7 10.48 18.76 0.19 57.01 167.12 100% 34.25 857 7 13.38 23.95 0.25 72.76 213.30 100% 34.25 857 7 17.07 30.57 0.31 92.87 272.23 100% 34.25 857 7 21.79 39.01 0.40 118.52 347.44 100% 34.25 857 7 27.81 49.79 0.51 151.27 443.43 2011 2012 2013 1-Apr-10 1-Apr-11 1-Apr-12 31-Mar-11 31-Mar-12 31-Mar-13 212 366 365 0 0 0 1 2 3 38.25 3 6 29.25 38.25 3 6 29.25 38.25 3 6 29.25 Revenue Calculations 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 1-Apr-13 1-Apr-14 1-Apr-15 1-Apr-16 1-Apr-17 1-Apr-18 1-Apr-19 1-Apr-24 1-Apr-29 1-Apr-34 1-Apr-39 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-25 31-Mar-30 31-Mar-35 31-Mar-40 153 0 0 0 0 0 0 0 0 0 0 212 365 366 365 365 365 366 365 365 365 366 4 5 6 7 8 9 10 15 20 25 30 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25 38.25 3 1 34.25
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11.69 41.87 12.12 50.78 148.87 17.12 71.71 30.47 14.36 0.44
24.64 88.22 25.54 107.11 313.98 30.95 129.64 110.65 26.55 0.79
29.58 105.90 30.66 128.53 376.77 32.50 136.12 132.78 23.89 0.83
34.91 124.98 36.18 151.82 445.06 34.12 142.93 156.84 21.50 0.87
40.74 145.86 42.23 177.13 519.24 35.83 150.07 182.98 19.35 0.92
42.78 153.16 44.34 185.99 545.20 37.62 157.58 192.13 17.42 0.96
44.92 160.81 46.56 195.28 572.46 39.50 165.45 201.74 15.67 1.01
57.32 205.25 59.42 249.24 730.62 50.42 211.17 257.48 9.26 1.29
73.16 261.95 75.84 318.10 932.48 64.34 269.51 328.61 5.47 1.64
93.38 334.32 96.79 405.98 1,190.11 82.12 343.97 419.40 3.23 2.10
119.17 426.69 123.54 518.15 1,518.91 104.81 439.00 535.28 1.91 2.68
68
Profit & Loss Statement Rs. crore Fin Year Start Date End Date Construction Days Operation days year of Concession Revenue Revenue from fee Revenue from fine Revenue from Grant Expenses Annual Maintenance Dredging maintenance Handling Cost Insurance Collection Expenses EBIDT Interest depreciation (WDM) EBT Tax PAT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17.12 71.71 30.47 14.36 0.44 157.77 137.77 294.95 -274.95 0.00 -274.95 30.95 129.64 110.65 26.55 0.79 316.85 258.08 265.45 -206.68 0.00 -206.68 32.50 136.12 132.78 23.89 0.83 412.47 249.72 238.91 -76.16 0.00 -76.16 34.12 142.93 156.84 21.50 0.87 515.98 227.04 215.02 73.93 25.13 48.80 35.83 150.07 182.98 19.35 0.92 628.57 198.39 193.52 236.67 80.44 156.22 37.62 157.58 192.13 17.42 0.96 662.90 169.74 174.16 319.00 108.43 210.57 39.50 165.45 201.74 15.67 1.01 698.66 141.05 156.75 400.86 136.25 264.61 50.42 211.17 257.48 9.26 1.29 902.43 6.00 92.56 803.87 273.24 530.64 64.34 269.51 328.61 5.47 1.64 1,158.11 0.00 54.65 1,103.45 375.06 728.39 82.12 343.97 419.40 3.23 2.10 1,481.82 0.00 32.27 1,449.55 492.70 956.85 104.81 439.00 535.28 1.91 2.68 1,893.43 0.00 19.06 1,874.37 637.10 1,237.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 265.34 26.53 0.00 559.48 55.95 0.00 671.45 67.14 0.00 792.95 79.30 0.00 925.20 92.52 0.00 971.46 97.15 0.00 1,020.04 102.00 0.00 1,301.85 130.19 0.00 1,661.53 166.15 0.00 2,120.58 212.06 0.00 2,706.46 270.65 0.00 2011 1-Apr-10 2012 1-Apr-11 2013 1-Apr-12 2014 1-Apr-13 2015 1-Apr-14 2016 1-Apr-15 2017 1-Apr-16 2018 1-Apr-17 2019 1-Apr-18 2020 1-Apr-19 2025 1-Apr-24 2030 1-Apr-29 2035 1-Apr-34 2040 1-Apr-39
31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-25 31-Mar-30 31-Mar-35 31-Mar-40 212 0 1 366 0 2 365 0 3 153 212 4 0 365 5 0 366 6 0 365 7 0 365 8 0 365 9 0 366 10 0 365 15 0 365 20 0 365 25 0 366 30
69

Tadadi Port Project Report

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Feasibility Study for Development of Port at Tadadi

Submitted to Infrastructure Development Department Government of Karnataka

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Development of Port at Tadadi, Karnataka Feasibility Report

Table 1: Index of Industrial Production of Karnataka

(Base: 1993-94 = 100)

Division / Sector Mining Manufacturing Electricity General Index

Weight 2.3550 89.3083 8.3367 100.00

2005-06* 242.45 (2.73) 211.46 (5.89) 179.73 (4.93) 209.54 (5.73)

2006-07* 240.18 (-0.94) 228.01 (7.83) 202.76 (12.81) 226.19 (7.94)

2007-08* 282.95 (17.81) 245.71 (7.76) 216.23 (6.64) 244.13 (7.93)

1.1 About the assignment

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

1.2 Approach and Methodology

Development of Port at Tadadi

Analysis of the catchment area

Analysis of competing ports Major Ports Minor Ports

Estimated cargo availability at the port

Hinterland connectivity By Rail By Road

Financial viability for development of the Port

Key Issues & Conclusions

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

CATCHMENT AREA ANALYSIS

2.1 Catchment Area Bellary - Hospet

Development of Port at Tadadi, Karnataka Feasibility Report

Existing movement of iron ore by road and rail

Development of Port at Tadadi, Karnataka Feasibility Report

Fig 11: Movement of iron ore from Bellary by rail

Destination Ports Chennai Ennore Mormugao NMPT

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Growth potential of Bellary Hospet region

2.2 Proposed development initiatives of the State

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

vii) viii) ix) x)

2.3 Impact Analysis

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited

Development of Port at Tadadi, Karnataka Feasibility Report

ANALYSIS OF COMPETING PORTS

3.1 Existing Ports Scenario in the State

Development of Port at Tadadi, Karnataka Feasibility Report

The above ports are broadly classified into three categories:

Source: information collated from various websites 18