Infrastructure

Air Transport

Air Transport plays a major role in the development of tourism, both domestic and international. Kerala has three airports at Thiruvananthapuram, Kozhikode and Kochi. During 2015-16, 94,344 flights (37459 domestic and 57485 international) were operated from the three airports together. A total number of 14,128,802 passengers (5,009,456 domestic and 9,119,346 international) were carried during 2015-16. Details of flights operated during 2015-16 by three Airports are shown in Appendix 5.19(A), Appendix 5.19 (B) and Appendix 5.19(C).

Kannur International Airport Limited (KIAL) has been set up by Government of Kerala to build and operate Kannur International airport. The airport project is being developed in two phases by KIAL. The first phase is envisaged to span from FY 2016-17 to FY 2025-26 and second phase would be from FY 2026-27 to FY 2045-46. In Phase I, the airport runway is proposed to be 3050 m in length, which would be sufficient to allow all major aircrafts to operate on key routes viz, Hong Kong, Singapore, and Middle Eastern countries. The second phase is proposed to have increased capacities of passenger terminal, aprons and other facilities including a longer runway of 3400 m to accommodate bigger aircrafts like A380.The Greenfield airport is being set up in 2000 acres, of which 1265 acres have been acquired. Of the required land, land to the extent of 1215 acres (equivalent to 315.94 crore) has been brought in by GoK as equity in the project.

The Ministry of Environment & Forest has granted necessary environmental clearance for Kannur International Airport. Agreement for the provision of CNS/ATM facilities has been executed with Airports Authority of India. Construction work on Terminal Buildings and City side facilities are being carried out by Larsen & Toubro Ltd and 80 per cent of city side works has been completed. The Project Management Consultancy work for the Integrated Terminal Building, ATC Tower, Technical Building and associated works has been awarded to M/s KITCO Ltd.

The total debt component required for the project amounting to 892.00 crore has been tied up with a Consortium of three Banks namely Canara Bank ( 692.00 crore), South Indian Bank ( 110.00 crore) and Federal Bank ( 90.00 crore). The joint term loan agreement has been signed with the consortium banks on May 20, 2015. As per the DGCA clearance received a trial landing of a Code 2B type aircraft was planned on February 29, 2016 and accordingly the flight was cleared to land from the makeshift ATC established at VOKN (Kannur Airport) by AAI for trial operation and the operation was smooth and incident free.

Bharath Petroleum Corporation Ltd (BPCL) will run the fuel farm business at Kannur airport in joint venture with KIAL. The company has already allotted equity shares worth 170 crore to BPCL. Further BPCL has agreed to make an additional investment of 46.80 crore in the equity capital of KIAL. A separate joint venture company is formed with equity participation of both KIAL & BPCL to run the fuel farm business. The works for fuel farm is progressing at site.

Water Transport Sector - Ports

Ports play a pivotal role in stimulating economic activity in their surroundings and hinterland through the promotion of seaborne trade. The efficiency of a port is important in international trade since a seaport is the nerve of foreign trade of a country. The globalization of world economy has brought about tremendous increase in exchange of goods across the world. To cope with the ever growing world trade, ports of every country will no doubt continue to play a critical and important role in providing the cheapest mode of transportation.

The world’s busiest port tag is contested by several ports around the world, as there is as yet no standardised means of evaluating port performance and traffic. For the past decade the distinction has been claimed by both the Port of Rotterdam and the Port of Singapore. The former based on cargo tonnage handled (total weight of goods loaded and discharged), while the latter ranks in terms of shipping tonnage handled (total volume of ships handled). Since 2005, the Port of Shanghai has exceeded both ports to take the title in terms of total cargo tonnage.The following ports have variously made claims to be being world’s largest port: Port of Shanghai, Port of Singapore, Port of Rotterdam, Port of Hong Kong, and Port of New York/New Jersey

Ports in India

India’s long coastline of over 7500 km is home to the country’s 12 major ports and around 200 minor and medium ports located along the western and eastern corridors of which only 139 are operable that is 69.50 per cent. Indian ports are the gateway to India’s international trade by sea and are handling over 90 per cent of foreign trade. The 12 major ports managed by the Port Trust of India are under Central Government jurisdiction and the 139 minor ports are under the jurisdiction of the respective State Governments. While the minor and medium ports are larger in number only about one- third of them undertake regular commercial operations. These are located mainly in Gujarat, Andhra Pradesh, Goa and Maharashtra.

The major ports include Chennai, Kamarajar (Ennore) and V.O Chidambaranar (in Tamil Nadu), Cochin (in Kerala), Kandla(in Gujarat), Kolkata (in West Bengal), Mumbai and Jawaharlal Nehru Port Trust (JNPT) (in Maharashtra), Mormugao (in Goa) ,New Mangalore (in Karnataka), Paradip (in Orissa), Vishakapatnam (in Andhra Pradesh).

Cargo traffic in Major Ports of India

The volume of seaborne cargo traffic handled by ports is mainly shaped by the levels and changes in both the global and domestic activity. Cargo traffic at India’s 12 major ports during 2015-16 is higher by 4.3 per cent at 6063.7 lakh tonnes compared with 5813.44 lakh tonnes handled during 2014-15.During 2015-16 Mormugao port recorded highest growth of traffic of 41.2 per cent followed by Chidambaranar (13.7 per cent) Kolkata dock system (9.2 per cent), Kandla (8.2 per cent), Haldia dock system (8.1 per cent), Paradip (7.6 per cent), Kamarajar (6.5 per cent), Cochin (2.3 per cent) and JNPT (0.4 per cent).Major ports which recorded negative growth in traffic during 2015-16 are Chennai (4.7 per cent), New Mangalore (2.7 per cent), Vishakapatnam (1.7 per cent) and Mumbai (0.9 per cent).(Source: Port Statistics 2015-16, Ministry of Shipping , GOI)

Among the major ports, Kandla port handled the maximum cargo of 1000.1 lakh tonnes with a share of 16.5 per cent followed by Paradip (12.6 per cent) Jawaharlal Nehru Port Trust (10.6 per cent) Mumbai (10.1 per cent) Vishakpatnam (9.4 per cent) Chennai (8.3 per cent) Chidambaranar(6.1 per cent) New Mangalore (5.9 per cent) Haldia Dock Complex (5.5 per cent) Kamarajar (5.3 per cent) Cochin (3.6 per cent) Marmugoa (3.4 per cent) Kolkata dock system (2.8 per cent) during 2015-16.Overall cargo volumes at Indian ports subdued in 2015-16 largely on account of slowdown in coal imports. Figure 5.5 shows the commodity wise break up of cargo handled at major ports in India.

Figure 5.5
Commodity wise distribution in major ports of India during 2015-16

Source: Ministry of Shipping / Indian Ports Association

The commodity group with highest per centage share in total cargo handled was POL (Petroleum Oil and lubricants)at 1887.71 lakh tonnes (32.33 per cent) followed by coal (21.45 per cent), other cargo (21.15 per cent), container traffic (20.30 per cent)which includes tea, cashew kernals, rubber and rubber products, spices, coffee, fertilizer (2.64 per cent) and iron ore (2.12 per cent).There has been a decline in iron ore traffic mainly due to restrictions in mining of iron ore. Figure 5.6. shows the pattern of cargo traffic at major ports in South India for the last 6 years.

Figure 5.6
Cargo traffic in Southern major ports of India

Source: Ministry of Shipping / Indian Ports Association

Vishakhapatnam, Chennai and New Managalore hold the first, second and third position in terms of the quantity of cargo handled over the period 2010-16. However, these ports have shown a decline in the growth rates of cargo movement by 1.67 per cent, 4.73 per cent and 2.69 per cent respectively during 2015-16. But the other 3 ports namely Chidbambarnar, Cochin and Ennore have exhibited upward trends in 2015-16with growth rates of 13.68 per cent, 2.33 per cent and 6.46 per cent respectively (Appendix 5.20).

In case of Cochin Port, the quantity of cargo handled has shown marginal increase over the years with a decline during 2012-13.The quantity of cargo handled, in lakh tonnes, at Cochin port for the period from 2011-12 to 2015-16 were 200.91 (12.40 per cent), 198.45 (-1.22 per cent), 208.87 (5.09 per cent), 215.95 (3.39 per cent), and 220.99 (2.33 per cent) respectively. The growth rates during the respective periods are shown in brackets.

Cargo traffic in minor and medium ports of India

During 2015-16, upto September 2016, among the minor and medium ports, ports of Gujarat handled the maximum cargo of 1664.08 lakh tonnes (73.66 per cent), followed by Andhra Pradesh (15.87 per cent), Maharashtra (5.38 per cent) Tamil Nadu (0.18 per cent), Karnataka (0.15 per cent) and non-major ports of the remaining states handling a total of 107.51 lakh tonnes (4.76 per cent) (Source: Port Statistics 2015-16, Ministry of Shipping, GOI)

In terms of composition of cargo traffic handled at non-major ports POL holds the highest share of (39.14 per cent) followed by coal (31.66 per cent), container (10.75 per cent), other cargo (7.98 per cent), fertilizer and fertilizer raw materials (3.55 per cent), iron ore (3.53 per cent) and building materials (3.38 per cent).

Ports in Kerala

The Ports in Kerala lie in the south west corner of the Indian peninsula. Kerala has a coastal length of 585 km and the State has an average width of about 60 km with one major port at Cochin and 17 non-major ports. Out of 17 minor ports in Kerala, four are considered as intermediate ports based on berthing, cargo handling and storage facilities available in them. They are Vizhinjam, Beypore, Azheekal and Kollam ports. The remaining 13 minor ports in the state are Neendakara, Alappuzha, Valiyathura, Kayamkulam, Manakkodam, Munambam, Ponnani, Vadakara, Thalasserry, Manjeswaram, Neeleswaram, Kannur and Kasaragod.

Most of the minor and intermediate ports in the State are seasonal in nature with insufficient infrastructure to handle even medium and small sized vessels throughout the year. Presently cargo operations take place only in four ports, viz., Vizhinjam, Beypore, Kollam and Azheekal. At Beypore, passenger traffic to Lakshadweep islands is also handled. At Thangassery (Kollam) new cargo port facilities have been created utilizing the calm fishery harbour basin.

The Government of Kerala has already decided to develop five non major ports through PPP mode. These Ports are Azheekal, Beypore, Ponnani, Alappuzha and Kollam. Apart from this, Vizhinjam Deepwater International Container Transhipment Terminal is under construction.

Cargo traffic in Cochin Port

In case of Cochin Port, the total cargo traffic handled by the port during the year 2015-16 recorded an increase of 2.33 per cent to 220.98 lakh tonnes as against 215.95 lakh tonnes handled in the preceding year.

Total import traffic handled during 2015-16 recorded an increase of 3.69 per cent to 181.84 lakh tonnes from 175.36 lakh tonnes in the preceding year. The major component of import include POL (65.61 per cent) followed by container (21.54 per cent) comprising machinery, cashew, and chemicals , other cargo (10.98 per cent), fertilizers and raw materials (1.27 per cent) coal (0.49 per cent) and fertilizer (0.12 per cent).

Total export traffic handled during the year showed a decrease of 3.57 per cent to 39.14 lakh tonnes from 40.59 lakh tonnes in the preceding year. The major components include POL (47.13 per cent), others (33.92 per cent), other bulk (5.15 per cent), sea foods (3.58 per cent) coir products (3.18 per cent), tea (1.71 per cent), coffee (1.40 per cent), rubber and rubber products (1.39 per cent) cashew kernels (1.28 per cent), spices (1.27 per cent).(Source: Administration Report and Annual Accounts 2015-16, Cochin Port Trust).

Commodity wise break up of cargo handled in Cochin port during the year 2015-16 is shown in Figure 5.7.

Figure 5.7
Commodity wise break up of cargo handled in Cochin Port during 2015-16, in per cent

Source: Cochin Port Trust

Among the cargo handled at Cochin Port, POL has the highest share of 62.33 per cent followed by container (26.17 per cent), other cargo(9.95 per cent) fertilizer and raw materials ( 1.15 per cent) and coal (0.40 per cent).

Cargo traffic in minor and medium ports of Kerala

The non-major ports of Kerala, showed a decline of 9.9 per cent at 143,458.58 tonnes in 2015-16 against 159,226 tonnes in 2014-15. Cargo handling during 2015-16 was confined mainly to Kozhikode, Kollam, Vizhinjam and Azhikkal ports. The commodity handled in all ports except Vizhinjam has declined. The per centage growth of commodity handled in Vizhinjam is only 6.25 per cent. Azheekal, Kollam and Kozhikode ports witnessed negative growth rates of 88.04 per cent, 53.87 per cent and 0.94 per cent respectively. The commodity wise details of cargo handled in minor and intermediate ports of Kerala (both coastal and foreign) are detailed in Appendix 5.21. During 2015-16, 356 steamers and sailing vessels with registered tonnage of 237,417.98 called at non- major ports against 558 steamers and sailing vessels with 158,711.51 tonnages in the previous year. This shows decrease in number of vessels and increase in tonnages. The details are shown in Appendix 5.22(A). Statement showing the revenue collection at the non-major ports during 2015-16 is shown in Appendix 5.22(B).The trend of cargo handled at non major ports of Kerala is given in Figure 5.8.

Figure 5.8
Trend of Cargo handled at minor ports (operable) of Kerala, in tonnes

Source: Directorate of Ports

Imports have shown a fluctuating trend with a negative growth in 2011-12 and a positive growth of 2.63 per cent in 2012-13. It again declined by 18.14 per cent in 2013-14. The years 2014-15 and 2015-16 witnessed an increasing trend, with the increase in 2015-16 being 92 per cent over the previous year. The exports showed a decline in 2012-13 by 1.50 per cent then it improved by 5.05 per cent in 2013-14. In 2014-15, it had shown a substantial improvement by 13.18 per cent. However in 2015-16, there was a steep decline by 64.51 per cent. Such decline in the coastal export was due to the scarcity of cargo. Necessary steps needs to be taken to export the cargo of Public Sector Undertakings like Kerala Minerals and Metals Ltd (KMML), Indian Rare Earth Ltd (IRE) and Food Corporation of India (FCI) through Kollam port to tackle this issue. Non-occurrence of shipping operations at Azheekal port due to siltation has also resulted in the decrease of cargo. Necessary steps for dredging operations have been initiated in Azheekal port.

The Government agencies involved in the development of ports in the State are Port Department, Harbour Engineering Department, and Hydrographic Survey Wing. An amount of 27,759 lakh, 7,869 lakh, 9,869 lakh, 11,929 lakh and 12,601 lakh were earmarked for this sector during 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 respectively.

Port Department

Port department is headed by the Director of Ports. The port directorate is situated at Thiruvananthapuram. There are three regional port offices at Neendakara, Alappuzha and Kozhikode respectively. The Director of Port and port offices administer the port operations at all non-major ports with the powers vested on them by Indian Port Act, 1950. The capital and maintenance dredging needed to maintain the required depth at the non-major ports is another responsibility of the Port department. It is also responsible for search and rescue operation along Kerala Coast at times of distress.

Vizhinjam International Deep Water Multipurpose Seaport

The flagship project of the State, Vizhinjam International Deep-water Multipurpose Seaport is one of the landmark and dream project which took off in 2015. The project initially proposed in 1990s has finally translated into reality. The ground breaking ceremony of the project was held on December 5, 2015.

This port is being developed as the transhipment hub to cater to large mother vessels. Vizhinjam is an all-weather port that will come up 10 – 12 nautical miles away from the Persian Gulf – Malacca lines. The proposed site has minimal maintenance dredging. The port with a draught of 18.20m can handle new generation mother vessels of size range 18000 to 22000 TEU.

The Port is being developed on DBFOT Model and has been awarded to M/s AdaniVizhinjam Port Pvt Ltd. The Concession Agreement (CA) was signed between the Government of Kerala and the private partner on 17th August, 2015. The concession period of the project is 40 years.

The total cost of the project is 6,770 crore. Out of this the PPP component is 4,089 crore, 1,463 crore is the ‘funded works’ of the project and 1,218 crore is for land, R&R, external infrastructure. The Central Government will provide 818 crore as Viability Gap Funding support and balance 817 crore will be provided by the State Government out of the total Viability Gap Fund (VGF) of 1,635 crore sought for the project. The state would be providing land and developing external infrastructure such as water, power and rail connectivity. It’s the first project in the State and first port in the country to receive VGF assistance from Ministry of Finance. The state government would get its portion of revenue, from non-port operations after 7 years of operation and from port operations after 15 years of operations.

Another novel feature of this project is the Funded Works component. Funded works are those components of the project where the development will be undertaken by the private partner and the State Government will reimburse the cost of the same. The construction of breakwater (3.1 km), fish landing berth and buildings in fishing harbor and side development are the constituents of funded works of this project. The construction of breakwaters for the project would be an engineering feat in the maritime history of the country.

The project will have a capacity of 10 lakhs TEU in the first phase which will be scaled up to 30 lakhs TEU. The construction period as per the Concession Agreement is 4 years. But it is expected that the project may be operational in a record time of less than 1,000 days. This Port will not only meet the transshipment needs of the country but also boost coastal shipping in the State. As per the EIRR study (2012) conducted by Deloitte, the project would generate an Economic IRR of 12.93 per cent.

Harbour Engineering Department

Harbour Engineering Department was formed in 1982 as a separate specialized service department for Fisheries and Ports. Government of India has empanelled Harbour Engineering Department of Kerala as a consultant in the coastal engineering field for the nation as a whole. It is unique to the State as no other State has a similar Department in India. The major functions of the Department are investigation, planning, design, evaluation, execution, operation, maintenance, management and related maritime engineering and technical works for the development schemes of the Fisheries and Port Department. During 2013-14 an amount of 850 lakhs, 930 lakhs in 2014-15, 1,370 lakh in 2015-16 and 1,370 lakh in 2016-17 were allotted to this Department.

Major Achievements for the Harbour Engineering department during 2015-16

• Construction of Eravipuram-Paravoor Coastal road is nearing completion.
• Construction of office complex for the Superintending Engineer, Harbour Engineering North Circle and the Executive Engineer Kozhikode at Puthiyappa is completed.
• Mobile lab and modern survey equipment for quality control in investigation sub division, Kozhikode has been completed.
• Purchase of computers, printers, laptop, and LCD projectors are completed.
• Rectification of seaward breakwater at Vizhinjam is completed.
• Mathematical model study for tidal hydrodynamics and siltation aspects for existing Fishing Harbours at Neendakara & Thottapally were arranged and progressing.

Hydrographic Survey Wing

The Hydrographic Survey Wing was constituted in 1968 as a component of the Kerala State Port Department, with a view to meet the requirements of hydrographic investigation required for the development of Minor and Intermediate Ports in the State. The Wing conducts Pre & Post dredging Surveys and Pre & Post Monsoon surveys in order to give technical inputs for the Pre and Post dredging works and other port development works. It also undertakes Hydrographic Survey requirement of Harbour Engineering Department, Fisheries Department and other Government Organizations. The wing also furnishes Hydrographic data as required by the National Hydrographic office, Dehradun (Indian Navy) for updating their navigational chart.

The Chief Hydrographer is the head of the wing and is headquartered in Thiruvananthapuram. There are three regional offices; one each at Kollam, (Southern Range) and Beypore (Northern Range) and North Paravoor (Central Range).Kollam and Beypore offices are headed by Marine Surveyors and North Paravoor office is headed by the Assistant Marine Surveyor. There is an Assistant Marine Surveyor’s office at Neendakara which assists the Marine Surveyor, Kollam.

Major Achievements of Hydrographic Survey Wing for 2015-16

The main surveys conducted during the year are Post dredging Hydrographic Survey for Thangassery basin, Munambam and Akkulam Veli Kayal, Ashtamudi Sea Plane survey, Tidal Observation at Neendakara, 20 km digitization Bathimetry survey at Kannur, Coastal area digitization survey at Kannur and Kasaragode, Hydrographic Survey related to the feasibility study of water transport in Pamba River, Survey for fixing coast line in Neendakara, Survey for Bouy marking at Vaikkam Thavanakkadavu, and Boat route survey Alappuzha Nedumudi, Alappuzha-Kavalam-Kidangara, Erapuzha-South Paravoor. The Hydrodrgraphic Survey Wing has purchased a Modern Twin Screw Survey Launch, a heave compensator, 4 FRP dinghies, constructed a small mechanised boat, purchased a side scan sonar, a projector, and 5 desk top computers. Construction of office building at Munambam/Paravoor is almost completed, Construction of office building of Marine Surveyor at Kollam is completed, and Construction of Head quarters for Hydrographic Survey wing is in progress(first floor completed). Newly purchased Survey Launch (ML Jalagaveshini) was inaugurated on May 14, 2015. The 3rd batch of Basic Hydrographic Survey Course conducted in Kerala Institute of Hydrography and Advanced Studies was completed.

The Government of India has announced major policy initiatives and programmes for the overall development of ports in the country.

The Twelfth five year plan had focused on the development of port infrastructure facilities so as to handle all type of cargo and passenger transport. The amount earmarked during the 12th plan was higher by 36.07 per cent over the outlay in the 11th plan. Numerous schemes were delayed and many were dropped due to local protest. Delay in procedural formalities like issuance of AS and letter of credit has hindered the timely completion of the projects. In spite of the constraints, there was a substantial development in the port sector during the 12th plan period..Lack of appropriate/geared vessels and skilled labour, Immigration Plant Quarantine Facilities, Cost Recovery Charges of Customs, high Import duty on equipment, high competition from road transportation, lack of end to end transportation services/ last mile connectivity and scarcity of return cargo are plaguing the sector. Appropriate government interventions and policy initiatives for the resolution of these issues in the upcoming 13th Five year plan remains critical for the full realisation of the potential of the sector.