Tadadi Port Project Report

Feasibility Study for Development of Port at Tadadi

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

FEASIBILITY REPORT

October 2009

Submitted to Infrastructure Development Department Government of Karnataka

Development of Port at Tadadi, Karnataka

Feasibility Report

Infrastructure Development Corporation (Karnataka) Limited 2

Table of Contents

Abbreviations 1. Introduction ......................................................................................................................... 6

1.1 About the assignment .......................................................................................................... 7 1.2 Approach and Methodology ................................................................................................ 8

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Key Issues & Conclusions ................................................................................................... 64

8.1 Conclusions ....................................................................................................................... 64 8.2 Key Issues ........................................................................................................................... 65


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List of Tables

Table 1: Index of Industrial Production of Karnataka .......................................................... 7

Table 2: Distances from Bellary – Hospet to various ports .................................................... 12

Table 3: Cargo at New Mangalore Port ............................................... 19

Table 4: Foreign Trade by Sea through minor ports in Karnataka - Exports ................... 19

Table 5: Foreign Trade by Sea through minor ports in Karnataka – Imports ................ 20

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


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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



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Abbreviations

BOT Build-Operate-Transfer

CRZ Coastal Regulation Zone

GDP Gross Domestic Product

GoK Government of Karnataka

IDC Interest During Construction

IDD Infrastructure Development Department

iDeCK Infrastructure Development Corporation (Karnataka) Limited

IRC Indian Road Congress

IRR Internal Rate of Return

IWT Inland Water Transport

MORTH Ministry of Road Transport and Highways

MTPA Million tones per annum

NH National Highways

NMPT New Mangalore Port Trust

O&M Operation & Maintenance

pcu Passenger car units

PPP Public Private Partnership

PWD Public Works Department

RFP Request for Proposal

RFQ Request for Qualification

SH State Highways

VGF Viability Gap Funding


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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 country’s

Industrial Scenario. The government has been consistently pursuing progressive industrial

policies to meet the changing needs of the state’s 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.


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Table 1: Index of Industrial Production of Karnataka (Base: 1993-94 = 100) Division / Sector Weight 2005-06* 2006-07* 2007-08* Mining 2.3550 242.45

(2.73) 240.18 (-0.94)

282.95 (17.81)

Manufacturing 89.3083 211.46 (5.89)

228.01 (7.83)

245.71 (7.76)

Electricity 8.3367 179.73 (4.93)

202.76 (12.81)

216.23 (6.64)

General Index 100.00 209.54 (5.73)

226.19 (7.94)

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

Government’s 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 Project’s 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


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(iDeCK) has been awarded the mandate for undertaking the feasibility study for the above-

mentioned 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-à-vis the demand for

services. For the proposed port at Tadadi, the methodology adopted for undertaking the

feasibility analysis is set out below:

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.

Development of Port at Tadadi

Financial viability for development of the Port

Analysis of competing ports

• Major Ports • Minor Ports

Key Issues & Conclusions

Hinterland connectivity

• By Rail • By Road

Analysis of the catchment area

Estimated cargo availability at the port


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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. The competition analysis is set out in

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. The hinterland

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

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.


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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 non-

metallic 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 India’s 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


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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


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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. .

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 Distance (km) Chennai 520 - 620 Ennore 544 - 644 Mormugao 290 - 400 NMPT 500 - 600

Fig 11: Movement of iron ore from Bellary by rail


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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


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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 Karnataka’s 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) Steel: covering Bellary, Koppal, Bagalkot, Haveri, Gadag & Raichur Districts

ii) Cement: covering Gulbarga, Bagalkot, Chitradurga, Belgaum and other Districts.

iii) Food Processing: covering Bangalore Rural, Kolar, Belgaum, Gadag, Koppal, Shimoga, Bagalkot, Bijapur, Davangere, Mandya and Dharwad Districts.

iv) IT / BT: covering Mysore, Mangalore, Hubli-Dharwad, Belgaum, Shimoga, Gulbarga, Kolar and Mandya Districts

v) Automobile: covering Ramanagara, Shimoga Dharwad and Kolar Districts.

vi) Readymade garments: covering Bangalore Rural, Tumkur, Kolar,


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Mandya, Belgaum, Bidar, Dharwad and other Districts. vii) Sugar and co-gen, power: covering Bidar, Belgaum, Bagalkot,

Shimoga and Mandya Districts. viii) Pharmaceutical/Bio-Technology: covering Bangalore, Mysore and

Hassan Districts. ix) Power Generation: covering Raichur, Bellary, and Bijapur &

Chitradurga Districts. x) 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.

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.

Fig 12: Proposed SIZ districts in Northern Karnataka


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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.

Fig 13: Minor Ports in Karnataka


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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.

1 Source: information collated from various websites


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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 2008-2009 2007-2008

Coal 1929 1691 LPG 1567 1442 Lime Stone 767 698 Iron ore Fines 8601 7290 Fertilizer 904 830 Edible Oil 476 374 Cement 271 216 Maize 110 56 Manually handled cargo 13100 11192 Containers (TEUs) 28,555 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 2004 -2005 2005-2006 2006-2007 2007-2008

Iron Ore 2724 3389 5758 8042 Molasses 7 48 306 Granite 241 188 277 257 Sugar 5 Furnace Oil 2 Miscellaneous 1 1 Coffee Husks 2 Alumina Try Hydrate

10 6 6

Maize 6 Total 2981 3592 6090 8613


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Table 5: Foreign Trade by Sea through minor ports in Karnataka – Imports In Kilo Tonnes

Commodity 2004-2005 2005-2006 2006-2007 2007-2008

Rockphosphate 15 30 56 36 Furnace Oil 104 63 76 26 Bitumen 3 0 0 5 Raw sugar 132 88 0 0 Kerosene 0 0 0 0 Edible Oil 4 0 0 0 Molasses 98 7 0 0 Caustic Soda 0 0 2 0 Urea 0 0 46 0 Total 356 188 180 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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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.

Fig 14: National Highway 17 – Panvel to Cochin


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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

3 Source: The Annual Administrative Report of the Ports & IWT Department, 2008

Fig 15: Hassan Mangalore Railway Line


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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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Table 6: Commodity-wise traffic at minor ports in Karnataka

Sl

No.

Name of the

Port

Imports

(2007-08)

Exports

(2007-08)

Total

(2007-08)

Total

(2006-07)

Steamer

MT

Sailing

Vessels

MT

Steamer

MT

Sailing

Vessels

MT

Exports &

Imports

MT

Exports &

Imports

MT

1. Karwar

(including

Sadashivgad)

1,80,108 - 25,36,748 - 27,16,856 23,82,226

2. Belekeri 4,988 - 60,85,777 - 60,90,765 40,71,700

3. Tadadi - - - - -

4. Honnavar - - - - -

5. Bhatkal - - - -

6. Malpe - 780 - 13,501 14,281 14,023

7. Kundapur - - - - -

8. Hangarkatta - - - - -

9. Mangalore 3,977 8,581 7,112 57,770 77,440 92,466

TOTAL 1,89,073 9,361 86,29,637 71,271 88,99,342 65,60,445

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

Source: Annual Administration Report of Ports & IWT Department, 2007, 2008


Feasibility Report


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.


Feasibility Report


TAD

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.

Fig 16: Tadadi Anchorage


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TADRI

CRZ 1

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.

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,

constructions for activities such as jetties,

wharves, quays and slipways, pipelines,

conveying systems including transmission lines.

Fig 17: Konkan Railway Route Map through Karnataka

Fig 18: CRZ classification for Tadadi


Feasibility Report


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.


Feasibility Report


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


Feasibility Report


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


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.


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.


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.


Feasibility Report


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)


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.


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


Feasibility Report


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.


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


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.


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.


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.


Feasibility Report


4.3.5 Air Environment


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.


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


Construction activities may create a problem of noise and vibration generated by

construction equipment, truck traffic, work vessels and other similar sources.


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


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.


Feasibility Report



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


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.


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.


Feasibility Report


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.


Feasibility Report


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

Fig 19: Options for railway connectivity to Tadadi

Honnavar


Feasibility Report


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 Kannada’s 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.


Feasibility Report


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


Feasibility Report


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.

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 Stretches Length

(Km)

Existing Carriage

way (m)

NH 63 Hospet – Hubli 140 7

NH 63 Hubli – Ankola 128 7

NH 17 Ankola -Tadadi 25 7



Feasibility Report


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 pcu’s is assumed to be 3000 and the

truck traffic is assumed to be 17000. Assuming 3 pcu’s 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)

Particulars

Hospet – Hubli –

Ankola

(NH 63)

Lane 2 lane

Service Level B (max pcu) 20000

Non-truck traffic (max pcu) 3000

Possible Truck Traffic (max pcu) 17000

Possible per direction Truck (pcu) 8500

Max no. of trucks (per direction)

[assumed at 3 pcu per truck]

2833

Cargo Capacity (Tonnes per day

per direction) [assumed at 12

Tonnes per truck]

34000

Total Cargo Capacity (Tonnes per

day)

47600


Feasibility Report


Particulars


Ankola

(NH 63)

(incl 40% return load)

Cargo Capacity (mtpa) (assuming

330 days of traffic)

15.71

Cargo Capacity (increased capacity) 115%

Cargo Capacity (mtpa) 18.06

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 non-

functional. 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.


Feasibility Report


Table 9: Option 1 - Cargo carrying capacity of road (with widening)

Particulars


Ankola

(NH 63)

Expansion 2 lane to 4 lane


Non-truck traffic 4000



Max no. of trucks (per direction) [assumed at 3 pcu

per truck]

6000

Cargo Capacity (Tonnes per day per direction)

[assumed at 12 Tonnes per truck]

72000

Cargo Capacity (Tonnes per day)


100800


Cargo Capacity at high traffic density 115%


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.


Feasibility Report


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 Stretches Length

(Km)

Existing Carriage

way (m)

NH 63 Hospet – Hubli 140 7

NH 4 Hubli - Tadas 30 14

SH 69 Tadas - Kumta 137 5.5 to 7

NH 17 Kumta-Tadadi 15 7

The traffic movement possible on this stretch without road widening (existing road) and

with road widening options have been analysed below.

Tadadi

From Bellary to Tadadi via NH 63 & SH 69 (till Kumta)



Feasibility Report



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 Tadas - Kumta

(SH 69)

Lane Intermediate


Non-truck traffic (max pcu) 3000



Max no. of trucks (per direction) [assumed at 3

pcu per truck]

1500



18000

Total Cargo Capacity (Tonnes per day)


25200


Cargo Capacity (increased capacity) 115%


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.


Feasibility Report


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)

Expansion Intermediate lane to 2

lane


Non-truck traffic 4000



Max no. of trucks (per direction) [assumed at 3 pcu

per truck]

2667



32000

Cargo Capacity (Tonnes per day)


44800


Cargo Capacity at high traffic density 115%


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.


Feasibility Report


• 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

*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:

Road Stretches Land Acquisition for 4

laning* (acres)

Forest Section (km)

NH 63 Hospet – Hubli 550

NH 63 Hubli – Ankola 510 78 (43km ghat section)

NH 17 Ankola -Tadadi 100

TOTAL 1160


Feasibility Report


• 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 Stretches Land Acquisition for 4

laning* (acres)

Forest Section (km)

NH 63 Hospet – Hubli 550

NH 4 Hubli - Tadas -

SH 69 Tadas - Kumta 540 11

NH 17 Kumta-Tadadi 60

TOTAL 1150 *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.


Feasibility Report


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.


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 Capacity

Cargo Carrying Capacity of Road @ service level B (mtpa) 18.06

Present Port Capacity for Karwar & Belekere (mtpa) 10.00

Port Capacity for Karwar & Belekere after development of Tadadi port (mtpa)

04.00

Spare Capacity available for Tadadi (mtpa)

14.06


Feasibility Report


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 Capacity

Cargo Carrying Capacity of Road @ service level B (mtpa)

38.25

Present Port Capacity for Karwar & Belekere (mtpa) 10.00

Port Capacity for Karwar & Belekere after development of Tadadi port (mtpa)

04.00

Spare Capacity available for Tadadi (mtpa)

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. Item Unit Total

1 Annual Inflation % 5%

2. Concession years 30

3. Construction months 36


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4. Start of construction date 1-Sep-10

5. Commercial Operation Date date 1-Sep-13

6. Depreciation (written down method) % 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


1. Dredging Rs. Crore 700.00

2. Port works Rs. Crore 200.00

3. Cargo Terminal Rs. Crore 110.00

4. Cargo Handling Rs. Crore 315.00

5. Harbor Craft Rs. Crore 110.00

6. Common infra Rs. Crore 25.00

7. Coastal production Rs. Crore 40.00

8. Navigation Aids Rs. Crore 20.00

9. Port Rail Yard Rs. Crore 30.00

10. Fire Fighting Rs. Crore 2.00

11. Technical Contingency Rs. Crore 78.00

Base Construction Cost Rs. Crore 1630.00

12. Preliminary Expenses Rs. Crore 49.00

13. Cost escalation during

construction

Rs. Crore 271.02

14. Interest During

Construction(IDC)

Rs. Crore 280.69

Total Project Cost Rs. Crore 2230.71


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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 Value

Debt : Equity ratio 2.33:1

Cost of debt 12.5 % per annum

Moratorium for debt 2 years

Repayment period for debt 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. Particulars Assumptions

1. Scenario 1: Design Capacity of Tadadi– existing road connectivity

(mtpa) 14.06

2. Scenario 2: Design Capacity of Tadadi – after road widening (mtpa) 34.25

3. Capacity Utilisation in first year 60%

4. Year of operation in which 100% capacity is utilised 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. Particulars Assumptions

1 Average Carrying Capacity (tonnes) 40000

2. Average GRT (tones) 50000

3. Average Turnaround (days) 2.35

4. Average output per ship berth day (tones per day) 17000

5. Average pilotage (hrs) 2

6. Revenue from Fine (% of revenue from fee) 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. Particulars New Mangalore

Port Trust

1 Port dues 6.44

2. Pilotage 11.52

3. Berth Hire 0.12 *

4. Wharfage / Waterfront Royalty 35.00

5. Cargo Handling (cranes , forks,

etc) 102.60

* 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.


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Table 23: Estimated operation and maintenance costs

Sl.

No.

Particulars Assumptions

1. Annual Maintenance (as % of Civil cost – Cost of Dredging) 3%

2. Dredging maintenance ( Rs. crore per year) 70.00

3. Periodicity of dredging Annual

4. Handling Cost (Rs./ tonnes) 35

5. Insurance (% of Gross Assets) 1%

6. Collection expenses (Rs. Crore) 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 Project

NPV (Rs. Crores) IRR

10 (1137) NA 20 (740) 5% 30 (553) 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. Max grant during Construction - Equity Support ( % of Project 20%


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Sl.

No.


Cost)

2. Max grant during Operation – O&M Support ( % of Project Cost) 20%

3. O&M Support period (years after construction) 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

Grant

Equity Support (Rs. crore)

O&M Support (Rs. crore)

% of Project Cost

15% 433.6 423.5 39.5% 12% 433.6 120.3 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 Project

NPV (Rs. Crores) IRR

10 (480) 6% 20 624 15% 30 1,169 17%

4 The cost of land acquisition and the construction cost has not been factored in.


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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.


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7. INDICATIVE OPTIONS FOR PROJECT

IMPLEMENTATION

This Chapter sets out the indicative options for implementing the project on a public-

private 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)


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• 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


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7.2 Analysis of proposed PPP framework

Salient features of the concession structure is set out below:

1 Structure Build – Operate – Transfer (BOT)

2 Typical Tenure 30 years

3 Bidding Parameter Lowest grant sought

4

Control of

Concessioning

Authority in Project

Concessionaire has the flexibility to design,

finance, construct, operate and manage facilities.

However, development of the facilities would

be as per the requirements set out by the

Concessioning Authority in the bidding

document.

The merits and demerits of this structure is set out below:

Merits Demerits

•••• Ownership of land and Project

Facilities would remain with

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

•••• Technical proposals need to

be checked for conformance

with minimum

specifications


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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


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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: Development6 of Port Infrastructure Projects

2. Category 2: Operation & Maintenance of Port Infrastructure Projects

3. Category 3: Development of Core Infrastructure7 Projects

4. Category 4: 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.


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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.


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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.

Annexure 1

Revenue Calculations Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 Start Date 1-Apr-10 1-Apr-11 1-Apr-12 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 End Date 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 Construction Days 212 366 365 153 0 0 0 0 0 0 0 0 0 0 Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366 year of Concession 1 2 3 4 5 6 7 8 9 10 15 20 25 30 Capacity Calculation Max Cargo on Road(mtpa) 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 18.06 Karwar Port capacity(mtpa) 3 3 3 2 2 2 2 2 2 2 2 2 2 2 Belekere Port capacity(mtpa) 6 6 6 2 2 2 2 2 2 2 2 2 2 2 Residual Cargo Capacity 10 10 10 15 15 15 15 15 15 15 15 15 15 15 Traffic % utilization 0% 0% 0% 60% 70% 80% 90% 100% 100% 100% 100% 100% 100% 100% Cargo Handled at Tadadi 0.00 0.00 0.00 4.90 9.84 11.25 12.66 14.06 14.06 14.06 14.06 14.06 14.06 14.06 No of vessels 0 0 0 123 247 282 317 352 352 352 352 352 352 352 No of Berth 0.00 0.00 0.00 0.88 1.76 2.01 2.26 2.51 2.51 2.51 2.51 2.51 2.51 2.51 Fares Navigation Port dues(Rs. per GRT) 6.76 7.09 7.45 7.82 8.21 8.62 9.05 9.51 9.98 10.48 13.38 17.07 21.79 27.81 Pilotage (Rs. per GRT Hrs) 12.10 12.70 13.34 14.00 14.70 15.44 16.21 17.02 17.87 18.76 23.95 30.57 39.01 49.79 Berth Berth Hire (Rs. per GRT

Hrs) 0.12 0.13 0.14 0.14 0.15 0.16 0.17 0.17 0.18 0.19 0.25 0.31 0.40 0.51

Wharfage (Rs. per Tonne) 36.75 38.59 40.52 42.54 44.67 46.90 49.25 51.71 54.30 57.01 72.76 92.87 118.52 151.27 Cargo Operations

Wharf Handling(Rs. per Tonne)

107.73 113.12 118.77 124.71 130.95 137.49 144.37 151.59 159.17 167.12 213.30 272.23 347.44 443.43

Revenue Navigation Port dues(Rs. Crore) 0.00 0.00 0.00 4.81 10.14 12.16 14.35 16.73 17.57 18.45 23.55 30.05 38.35 48.95 Pilotage(Rs. Crore) 0.00 0.00 0.00 17.22 36.32 43.53 51.39 59.91 62.91 66.05 84.30 107.59 137.32 175.26 Berth Berth Hire(Rs. Crore) 0.00 0.00 0.00 4.99 10.51 12.60 14.88 17.35 18.21 19.12 24.41 31.15 39.76 50.74 Wharfage(Rs. Crore) 0.00 0.00 0.00 20.85 43.98 52.77 62.34 72.73 76.36 80.18 102.33 130.61 166.69 212.75 Cargo Handling 0.00 0.00 0.00 61.12 128.92 154.70 182.74 213.19 223.85 235.05 299.99 382.87 488.65 623.65 Opex (Rs. Crore) Annual Maintenance 0.00 0.00 0.00 16.67 30.14 31.65 33.23 34.89 36.64 38.47 49.10 62.66 79.97 102.07 Dredging maintenance 0.00 0.00 0.00 41.83 75.62 79.40 83.37 87.54 91.92 96.51 123.18 157.21 200.65 256.08 Handling Cost 0.00 0.00 0.00 12.51 45.43 54.52 64.40 75.13 78.89 82.83 105.72 134.93 172.20 219.78 Insurance 0.00 0.00 0.00 10.86 20.08 18.07 16.26 14.64 13.17 11.85 7.00 4.13 2.44 1.44 Collection Expenses 0.00 0.00 0.00 0.44 0.79 0.83 0.87 0.92 0.96 1.01 1.29 1.64 2.10 2.68


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Profit & Loss Statement Rs. Crore

Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040

Start Date 1-Apr-10 1-Apr-11 1-Apr-12 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 End Date

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

Construction Days 212 366 365 153 0 0 0 0 0 0 0 0 0 0

Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366

year of Concession 1 2 3 4 5 6 7 8 9 10 15 20 25 30 Revenue

Revenue from fee 0.00 0.00 0.00 109.00 229.87 275.77 325.69 379.91 398.91 418.85 534.57 682.27 870.77 1,111.34

Revenue from fine 0.00 0.00 0.00 10.90 22.99 27.58 32.57 37.99 39.89 41.89 53.46 68.23 87.08 111.13

Revenue from Grant 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 Expenses

Annual Maintenance 0.00 0.00 0.00 16.67 30.14 31.65 33.23 34.89 36.64 38.47 49.10 62.66 79.97 102.07

Dredging maintenance 0.00 0.00 0.00 41.83 75.62 79.40 83.37 87.54 91.92 96.51 123.18 157.21 200.65 256.08

Handling Cost 0.00 0.00 0.00 12.51 45.43 54.52 64.40 75.13 78.89 82.83 105.72 134.93 172.20 219.78

Insurance 0.00 0.00 0.00 10.86 20.08 18.07 16.26 14.64 13.17 11.85 7.00 4.13 2.44 1.44

Collection Expenses 0.00 0.00 0.00 0.44 0.79 0.83 0.87 0.92 0.96 1.01 1.29 1.64 2.10 2.68

EBIDT 0.00 0.00 0.00 37.58 80.79 118.88 160.12 204.79 217.22 230.06 301.75 389.92 500.48 640.43

Interest 0.00 0.00 0.00 104.20 195.19 188.86 171.71 150.04 128.37 106.68 4.54 0.00 0.00 0.00

depreciation (WDM) 0.00 0.00 0.00 223.07 200.76 180.69 162.62 146.36 131.72 118.55 70.00 41.34 24.41 14.41

EBT 0.00 0.00 0.00 -289.69 -315.16 -250.67 -174.20 -91.61 -42.87 4.83 227.21 348.58 476.07 626.01

Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.64 77.23 118.48 161.82 212.78

PAT 0.00 0.00 0.00 -289.69 -315.16 -250.67 -174.20 -91.61 -42.87 3.19 149.98 230.10 314.25 413.23


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Annexure 2

Revenue Calculations Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 Start Date 1-Apr-10 1-Apr-11 1-Apr-12 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 End Date 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 Construction Days 212 366 365 153 0 0 0 0 0 0 0 0 0 0 Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366 year of Concession 1 2 3 4 5 6 7 8 9 10 15 20 25 30 Capacity Calculation(mtpa) Max Cargo on Road (mtpa) 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 38.25 Karwar Port capacity(mtpa) 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Belekere Port capacity(mtpa) 6 6 6 1 1 1 1 1 1 1 1 1 1 1 Residual Cargo Capacity(mtpa) 29.25 29.25 29.25 34.25 34.25 34.25 34.25 34.25 34.25 34.25 34.25 34.25 34.25 34.25 Traffic % utilization 0% 0% 0% 60% 70% 80% 90% 100% 100% 100% 100% 100% 100% 100% Cargo Handled at Tadadi

(mtpa) 0.00 0.00 0.00 11.94 23.98 27.40 30.83 34.25 34.25 34.25 34.25 34.25 34.25 34.25

No of vessels 0 0 0 299 600 686 771 857 857 857 857 857 857 857 No of Berth 0.00 0.00 0.00 3 5 5 6 7 7 7 7 7 7 7 Fares Navigation Port dues (Rs. per GRT) 6.76 7.09 7.45 7.82 8.21 8.62 9.05 9.51 9.98 10.48 13.38 17.07 21.79 27.81 Pilotage (Rs. per GRT Hrs) 12.10 12.70 13.34 14.00 14.70 15.44 16.21 17.02 17.87 18.76 23.95 30.57 39.01 49.79 Berth Berth Hire(Rs. per GRT Hrs) 0.12 0.13 0.14 0.14 0.15 0.16 0.17 0.17 0.18 0.19 0.25 0.31 0.40 0.51 Wharfage(Rs. per Tonne) 36.75 38.59 40.52 42.54 44.67 46.90 49.25 51.71 54.30 57.01 72.76 92.87 118.52 151.27 Cargo Operations

Wharf Handling (Rs. per Tonne) 107.73 113.12 118.77 124.71 130.95 137.49 144.37 151.59 159.17 167.12 213.30 272.23 347.44 443.43

Revenue Navigation

Port dues (Rs. Crore) 0.00 0.00 0.00 11.69 24.64 29.58 34.91 40.74 42.78 44.92 57.32 73.16 93.38 119.17

Pilotage(Rs. Crore) 0.00 0.00 0.00 41.87 88.22 105.90 124.98 145.86 153.16 160.81 205.25 261.95 334.32 426.69 Berth Berth Hire (Rs. Crore) 0.00 0.00 0.00 12.12 25.54 30.66 36.18 42.23 44.34 46.56 59.42 75.84 96.79 123.54 Wharfage(Rs. Crore) 0.00 0.00 0.00 50.78 107.11 128.53 151.82 177.13 185.99 195.28 249.24 318.10 405.98 518.15 Cargo Handling

0.00 0.00 0.00 148.87 313.98 376.77 445.06 519.24 545.20 572.46 730.62 932.48 1,190.11 1,518.91

Opex Annual Maintenance 0.00 0.00 0.00 17.12 30.95 32.50 34.12 35.83 37.62 39.50 50.42 64.34 82.12 104.81 Dredging maintenance 0.00 0.00 0.00 71.71 129.64 136.12 142.93 150.07 157.58 165.45 211.17 269.51 343.97 439.00 Handling Cost 0.00 0.00 0.00 30.47 110.65 132.78 156.84 182.98 192.13 201.74 257.48 328.61 419.40 535.28 Insurance 0.00 0.00 0.00 14.36 26.55 23.89 21.50 19.35 17.42 15.67 9.26 5.47 3.23 1.91 Collection Expenses 0.00 0.00 0.00 0.44 0.79 0.83 0.87 0.92 0.96 1.01 1.29 1.64 2.10 2.68


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Profit & Loss Statement Rs. crore

Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040

Start Date 1-Apr-10 1-Apr-11 1-Apr-12 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

End Date 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

Construction Days 212 366 365 153 0 0 0 0 0 0 0 0 0 0

Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366

year of Concession 1 2 3 4 5 6 7 8 9 10 15 20 25 30

Revenue

Revenue from fee 0.00 0.00 0.00 265.34 559.48 671.45 792.95 925.20 971.46 1,020.04 1,301.85 1,661.53 2,120.58 2,706.46

Revenue from fine 0.00 0.00 0.00 26.53 55.95 67.14 79.30 92.52 97.15 102.00 130.19 166.15 212.06 270.65

Revenue from Grant 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

Expenses

Annual Maintenance 0.00 0.00 0.00 17.12 30.95 32.50 34.12 35.83 37.62 39.50 50.42 64.34 82.12 104.81

Dredging maintenance 0.00 0.00 0.00 71.71 129.64 136.12 142.93 150.07 157.58 165.45 211.17 269.51 343.97 439.00

Handling Cost 0.00 0.00 0.00 30.47 110.65 132.78 156.84 182.98 192.13 201.74 257.48 328.61 419.40 535.28

Insurance 0.00 0.00 0.00 14.36 26.55 23.89 21.50 19.35 17.42 15.67 9.26 5.47 3.23 1.91

Collection Expenses 0.00 0.00 0.00 0.44 0.79 0.83 0.87 0.92 0.96 1.01 1.29 1.64 2.10 2.68

EBIDT 0.00 0.00 0.00 157.77 316.85 412.47 515.98 628.57 662.90 698.66 902.43 1,158.11 1,481.82 1,893.43

Interest 0.00 0.00 0.00 137.77 258.08 249.72 227.04 198.39 169.74 141.05 6.00 0.00 0.00 0.00

depreciation (WDM) 0.00 0.00 0.00 294.95 265.45 238.91 215.02 193.52 174.16 156.75 92.56 54.65 32.27 19.06

EBT 0.00 0.00 0.00 -274.95 -206.68 -76.16 73.93 236.67 319.00 400.86 803.87 1,103.45 1,449.55 1,874.37

Tax 0.00 0.00 0.00 0.00 0.00 0.00 25.13 80.44 108.43 136.25 273.24 375.06 492.70 637.10

PAT 0.00 0.00 0.00 -274.95 -206.68 -76.16 48.80 156.22 210.57 264.61 530.64 728.39 956.85 1,237.27

Documents

Tadadi Port Project Report