The Hindu Business Line : `There is immense business opportunity in waterways'

The Inland Waterways Authority of India (IWAI) is making efforts to make the National Waterways No 3 (Kochi to Kollam) fully navigable before March 2009.

However, there are a few bottlenecks in some parts of the waterways with regard to dredging, removal of fishing nets, dredged material disposal, and so on.

Mr S. Dandapat, Director, IWAI, in Kochi, spoke to Business Line on the steps his organisation is taking to speed up the work and complete it ahead of schedule.

Excerpts from the interview:

What is the progress of work so far on the waterways?

The work on the waterways so as to make it navigable between Alappuzha and Kollam is fast progressing. We have already completed the stretch between Kottappuram and Alappuzha. Of the 200 km of total length of waterways, we now require dredging in about 87 km. Of this, around 60 km has been completed and the remaining will be completed within a year. The Ministry has proposed an investment of Rs 71 crore, mainly on dredging and providing mechanised cargo handling terminals.

However, local protest over the dumping of the dredged materials is causing some problems, resulting in slow pace of work in some areas. The State Government has assured us that it will sort out the issues soon. Our intention is to immediately complete the dredging work at Chavara near Kollam, at least in a single lane, by creating a draught of 2.5 metres for the movement of cargo between Alappuzha and Kollam by next year. About 5 km of dredging is required. Kerala Minerals and Metals Ltd has agreed to carry out dredging along 1.8 km while Indian Rare Earths will do the work for 2 km. Both companies have agreed to take back the dredged sand, which is rich in minerals. It is hoped that the entire dredging work will be completed by March 2008.

Besides, we have awarded work to the State Irrigation Department for bank protection on a 3.8-km area near Chavara area at a cost of Rs 2.1 crore. Night navigation facilities have already been completed on the stretch between Kochi and Alappuzha. The work to provide navigational aids from Alappuzha to Kollam as well as Kochi to Kottappuram will commence by year-end.

On protests by fisher-folk

The problem of fishing nets and identification of place for disposing dredged materials was raised, for which the State Government has assured support.

The difficulty faced in removing fishing nets erected in various places on the waterways is hampering development work. The State Government has constituted committees in Thrissur, Ernakulam, Alappuzha and Kollam districts to study the problems faced by the local fishermen prior to the removal of fishing nets as well as providing suitable compensation to them. The Kollam committee has awarded compensation of Rs 1 lakh for a licence-holder and Rs 50,000 for a non-licence-holder. The other three committees are yet to come out with suitable packages.

On setting up cargo terminals

There is immense business opportunity in the inland waterways sector by way of owning and operating cargo barges as well as operation and maintenance of cargo terminals. Of the 11 proposed cargo terminals, the IWAI has constructed seven. However, the State Government has not provided the land for the terminal in Alappuzha because of a dispute.

We need around 2.2 hectares of land there but have acquired only 1.9 hectares. A suitable package of compensation is under consideration and the remaining area will be released soon. We are also looking at setting up terminals in Chavara and Kakkanad near Cochin SEZ.

On potential for cargo movement

During 2005-06, the cargo moved through NW-3 was 11.7 lakh tonnes by various PSUs from Kochi Port. The projected cargo movement by 2010 is around 17 million tonnes. If we open up the waterways up to Kollam, there is a possibility of moving containers to and from Kochi Port.

A study by the National Council for Applied Economic Research showed that as against transportation cost of Re 1 per tonne km by road, the IWT cost of transportation works out to Rs 0.55 per km.