Feasibility Study of Pert TADADI in Karnataka 2009 69 Pages PDF

Feasibility Study for
Development of Port at Tadadi
FEASIBILITY REPORT
October 2009
Submitted to Infrastructure Development Department

Government of Karnataka
Infrastructure Development Corporation (Karnataka) Limited

Infra House, 39, 5th Cross, 8th Main, RMV Extension,
Sadashivnagar, Bangalore 560080
Ph: 91 80 43448000; Fax: 91 80 23613016
Development of Port at Tadadi, Karnataka
Feasibility Report
Table of Contents
Abbreviations
1. Introduction ......................................................................................................................... 6
1.1 About the assignment .......................................................................................................... 7
1.2 Approach and Methodology ................................................................................................ 8
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
Infrastructure Development Corporation (Karnataka) Limited 2

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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 countrys
Industrial Scenario. The government has been consistently pursuing progressive industrial
policies to meet the changing needs of the states economy and industry.
Index of Industrial Production (IIP) is one of the important macro economic indicators, the
magnitude of which represents the status of production in the industrial sector for a given
period of time as compared to a reference period of time.
The general IIP (provisional) for the quarter ending June 2008 and September 2008 stood at
133.44 and 135.21 respectively (base year for compilation was 1999 2000). The average
annual growth of industrial production (mining, manufacturing and electricity) was 6.36
percent in 2007-08 as against 6.50 percent in 2006-07. According to the index of industrial
production, in 2007-08, manufacture of non metallic mineral products recorded the highest
growth at 14.39 percent followed by basic metal and alloys at 14.01 percent. Growth rates in
the other sectors were food products (9.23%), rubber, plastic, petroleum and coal products
(8.12%) and beverages, tobacco and tobacco products (7.75%).
As can be seen in Table 1, the mining sector in the state has recorded the highest growth
rate of almost 18% between 2006 - 2007 and 2007 - 2008. Most of the mined ore is exported
to China, Japan, Korea and Taiwan via the sea route.

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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 242.45 240.18 282.95
(2.73) (-0.94) (17.81)
Manufacturing 89.3083 211.46 228.01 245.71
(5.89) (7.83) (7.76)
Electricity 8.3367 179.73 202.76 216.23
(4.93) (12.81) (6.64)
General Index 100.00 209.54 226.19 244.13
(5.73) (7.94) (7.93)
Source: Directorate of Economics & Statistics, Bangalore

Figures in brackets indicate percentage changes over the previous year and * indicates provisional figures
1.1 About the assignment
Karnataka is targeting an industrial growth rate of 12% per annum, and there has been an
increased emphasis on the expansion and growth of infrastructure sectors. The prospects of
rapid growth in infrastructure sectors is driven by two factors (1) sustainable economic
growth is contingent upon the support of strong infrastructure development and (2) the
Governments thrust on private sector participation in development of these sectors. Since
ports are the trade gateways for a state, their ability to meet the increasing demands of a
rapidly growing economy is crucial for addressing the rising import and export traffic.
With this objective in mind, the Infrastructure Development Department (IDD),

Government of Karnataka (GoK) has identified various projects in the State for
development through Public Private Partnership (PPP) frameworks. One such project
identified is the development of a port at Tadadi in Uttar Kannada district of Karnataka. As
a preliminary step in the project development activities, IDD intends to undertake a
feasibility study to ascertain the Projects amenability for development under Public Private
Partnership (PPP) framework. If the Project is found to be feasible in the preliminary
assessment, then a Detailed Project Report including detailed technical studies is proposed to
be undertaken for the same. Infrastructure Development Corporation (Karnataka) Limited

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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--vis the demand for
services. For the proposed port at Tadadi, the methodology adopted for undertaking the
feasibility analysis is set out below:
Development of Port at Tadadi
Analysis of the
catchment area
Analysis of Estimated cargo Hinterland

competing ports availability at the port connectivity
Major Ports By Rail

Minor Ports By Road
Financial viability for

development of the Port
Key Issues &

Conclusions
a) Analysis of the catchment area for the proposed port

The catchment area for the proposed port at Tadadi has been identified. The
generation and consumption levels of materials for export from the identified
catchment area are analysed.

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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 Indias largest private steel manufacturing facility here.
The metallic minerals are abundant in three taluks of Bellary, namely, Sandur, Hospet and
Bellary in the order of mining activity intensity. Nearly 48 million tonnes was mined from
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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. .
Fig 11: Movement of iron ore from Bellary by rail
The distances from Bellary Hospet to various ports are set out in the table below:
Table 2: Distances from Bellary Hospet to various ports
Destination Ports Distance (km)
Chennai 520 - 620
Ennore 544 - 644
Mormugao 290 - 400
NMPT 500 - 600

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c. About 10 million tonnes is consumed locally in the district by steel plants,

pig/sponge iron plants.
2.1.2 Growth potential of Bellary Hospet region
Bellary currently is the second fastest growing city in Karnataka after Bengaluru. Some key
factors that would further drive the growth potential of the district are set out below:
a. JSW Steel one of the largest steel producer in the world, and the biggest single
investor in the state has plans to acquire iron ore mines in Bellary. This would lead
to increased production of steel in the region. Currently, JSW produces 7.8 million
tones of steel which is likely to increase to 10 million tones per annum in fiscal 2010
11. In addition to JSW, there is a lot of interest from many other private players to
establish industries in Bellary.
b. In order to promote industrial and economical growth of the region, the State
Government has formed a separate authority called Vijayanagar Area Development
Authority (VADA) comprising of around 44 villages falling in Hospet, Sandur and
Bellary Taluks. The formation of this new authority is to project Bellary as an
industrial hub for steel manufacturing industries. An industrial park is proposed to
be developed in the VADA region on an area of about 559.61 sq. km. providing state
of the art infrastructure to the investors for setting up iron and steel and allied
industries in the region.
c. Karnataka Power Corporation Ltd (KPCL) proposes to develop the second phase of
Bellary Thermal Power Station (BTPS) of 500 MW at Kudatini.. The first Stage has
been commissioned in August 2007 and is expected to commence work shortly on
the second phase of BTPS.
2.2 Proposed development initiatives of the State
The State Government has proposed to implement the Suvarna Karnataka Development
Corridor Programme throughout the length and breadth of the State for Industrial
Development. Such a corridor will possibly benefit many potential areas in the Karnataka

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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 Karnatakas economic growth.
The Corridor proposes to cover about 11 District headquarters and more than 20 major
towns along the highways/major roads and rail links. As a part of this Programme, the
major industrial corridors/zones/nodes are proposed along the following locations:
Bidar-Gulbarga-Bellary-Hiriyur
Tumkur- Honnavar via Shimoga
Chitradurga-Mangalore via Shimoga-Udupi
Chitradurga-Hospet-Koppal-Raichur
Chitradurga-Hospet-Bagalkot-Bijapur
In addition to the proposed Industrial Corridors, the State Government also proposes to
develop following ten Special Industrial Zones on a PPP framework, most of which will
have direct impact on trade and industry.
i) 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. Fig 12: Proposed SIZ districts in Northern Karnataka
2.3 Impact Analysis
The growth potential of the command region of Bellary Hospet and the general
development iniatives at the State level, would enhance the prospects for the port at Tadadi.
The Bellary Hospet region would be the important catchment area for the proposed port
at Tadadi. This region provides ample trade opportunities for which the port could form a
major gateway. Moreover, the other infrastructure projects earmarked for development in
the region would offer scope for more additional movement through the Tadadi port. In
addition to its numerical contribution to the GDP, it would act as an economic multiplier
and help the rest of the economy thrive in the region.

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An overview of the ports scenario in the state and the existing ports which would offer
competition to the port at Tadadi are analysed and presented in the next Chapter.

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3. ANALYSIS OF COMPETING PORTS

An overview of the ports in the State and specifically the ports competing for the off take
from the catchment area of Bellary Hospet are analysed and presented in this Chapter.
From this analysis follows the rationale for developing the port at Tadadi.
3.1 Existing Ports Scenario in the State

Karnataka is endowed with a vast coastline
of around 300 km between Karwar (at the
North) and Mangalore (at the South)
flanked by Uttara Kannada, Udupi and
Dakshina Kannada districts, with
favourable and strategic port locations.
The entire coastal belt as well as the
adjacent districts are rich with mineral and
natural resources and hence offer good
scope for industrial investment. This belt is
well connected by National Highways and
the Konkan Railway broadgauge line, both
running parallel to the coastline.
3.1.1 Major Ports
At present, in Karnataka there is only one

Major Port viz., The New Mangalore Port.
This is located at the southern end of the
coastline and hence is predominantly being Fig 13: Minor Ports in Karnataka
utilised by the southern districts of the State.

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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 10 6 6
Hydrate
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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Fig 14: National Highway 17 Panvel to Cochin
The port is connected to the hinterland of the State via the Hassan Mangalore Rail line.
The line provides a shorter and more convenient outlet for the cargo from the iron ore rich
Hospet Bellary and Chitradurga Tumkur belts of Karnataka to the New Mangalore
Port. The improved connectivity to the gateway port of Mangalore through the Hassan -
Mangalore line has given a boost to the industrial activity in the hinterland centers -
Tumkur, Tiptur, Ammasandra, Tornagallu and Davanagere.

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Fig 15: Hassan Mangalore Railway Line
The port is also well connected to the southern part of the country by a broad guage line
through Mangalore, Kerala and Chennai. The Konkan Railway linking Mangalore with
Mumbai is in operation and connects the northern part of the country to the port.
NMPT currently is proposing to undertake development of a container terminal for

handling containers from the proposed Berth No. 18 through PPP mode on build, operate
and transfer (BOT) basis at an estimated cost of Rs 276 crore.
3.2.2 Minor Ports3
Karwar
The port at Karwar is an all weather intermediate port

with an available draft of 6.5 7 m. The prestigious
SEABIRD Naval Project is located at this port. The
3
Source: The Annual Administrative Report of the Ports & IWT Department, 2008

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total traffic volume the port handles is 2.71 million tones of which iron ore forms 1.9
million tones.
Belekeri
The Belekeri port is a fair season lightrage port with iron-ore being the main cargo exported.
Currently the following three private operators are operating at the port:
Adani Export Pvt Ltd
Salgoankar Mining Industries
Mallikarjun shipping Pvt Ltd
The total traffic handled at the port is 6.09 million tones of which iron-ore forms 6.08
million tones.
Old Mangalore
This port is situated on the left bank of the Gurupur

river and is approximately 10 km south of the New
Mangalore Port. The minor port at Mangalore is an
intermediate port with a draft availability of 4.5 mand is
functional only during
the fair weather season from September to May. It is
well connected by NH 17, 48 & 63 and the Konkan Railway and Sourthern Railways.
Traffic at Minor Ports
The commodity wise traffic at the nine minor ports in 2006 07 and 2007 08 is set out in
the table below:

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

Imports Exports Total Total
(2007-08) (2007-08) (2007-08) (2006-07)
Sl Name of the
Sailing Sailing Exports & Exports &
No. Port Steamer Steamer
Vessels Vessels Imports Imports
MT MT
MT MT MT MT
1. Karwar 1,80,108 - 25,36,748 - 27,16,856 23,82,226
(including
Sadashivgad)
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
Source: Annual Administration Report of Ports & IWT Department, 2007, 2008
Of the total traffic of 8.9 million tones in 2007- 08, the iron traffic in the minor ports was
approximately 8 million tones.
3.3 Rationale for development of the proposed port at Tadadi

Out of the ports of the state, NMPT, the major port currently caters to the cargo
requirements in the southern districts of the state and is operating at 89% capacity (in 2008
2009). Further petroleum products form a significant part of the cargo at the port.
The northern districts of the state, especially the Bellary Hospet region is home to
significant resources of iron-ore which is currently being exported. Part of this iron ore is

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exported through the minor ports at Karwar and Belekeri. However, the draft available at
these ports is less and therefore bigger vessels cannot operate at these ports and loading is
normally done through barges. Further the capacity at these ports is also not adequate to
cater to the demand of this region. Due to this, a significant amount of the iron ore is
currently being transported to Ennore (in Tamil Nadu), Mormugao and Krishnapatnam and
exported from there.
Thus, a port developed in the northern coastline of the state could cater to the districts in
North Karnataka especially the iron-ore belt in Bellary - Hospet, thereby significantly
improving the industrial advantage of the region.
Due to the above cited reasons, it is proposed to develop a port at Tadadi which is situated
in the estuary of the Aghanashini River. The backwaters of the river have a huge
waterfront area, which makes the location a natural harbour for a port. The proximity to
the iron-ore belt at Bellary / Hospet and the connectivity in the region are added benefits
for developing a port at Tadadi.

Feasibility Report
4. PROPOSED PORT AT TADADI

The details of the proposed port at Tadadi including the existing facilities at the port and the
key issues for devlopment of the port are set out in this Chapter.
4.1 About Tadadi
Tadadi is located at a Latitude of 140 13.50 N and Longitude of 740 21.50 E. The
backwaters of the river have a huge waterfront area, which makes the location a natural
harbour for a port. It is a fair weather lightrage port situated on the estuary of the
Aghanashini River at a distance of about 50 km from Karwar, about 24 km from Belekeri
and approximately 35 k from Honnavar.
TAD
Fig 16: Tadadi Anchorage

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The Konkan Railway line and National Highway (NH) 17 pass very close to the port. The
nearest station on the Konkan Railway line from Tadadi is Ankola at a distance of about 25
km from Tadadi.
Fig 17: Konkan Railway Route Map through Karnataka
Tadadi is classified as CRZ 1 (Coastal

Regulation Zone 1) and all the rules prevailing
under CRZ 1 issued by Ministry of
Environment and Forests would be applicable
to the area.
CRZ 1 permits the operational constructions
TADRI
for ports and harbours, light houses,
constructions for activities such as jetties,
wharves, quays and slipways, pipelines, CRZ 1
conveying systems including transmission lines. Fig 18: CRZ classification for
Tadadi

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However, for all the activities mentioned above, environmental clearances would need to be
obtained from the Ministry of Environment and Forests, Government of India.
4.2 Current Facilities at Tadadi
The facilities that currently exist at the Tadadi port are a light house structure, an RCC jetty
and a Transit Shed. Currently there are no commercial shipping activities that are taking
place at the port.
4.3 Environmental Impacts of the proposed Port
The potential adverse effects of port development at Tadadi, encompass land, water
pollution, contamination of bottom sediments, loss of bottom habitat, damage to marine
ecology and fisheries, beach erosion/accretion, current pattern changes, waste disposal, oil
leakage and spillage, air pollution, noise, vibration and flood light effect.

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The proposed project will have impacts on the environment in two distinct phases. During
the construction phase, which may be regarded as temporary or short term; the other
during the operation stage which will have long term effects.
The impacts will be assessed for the Project area, during detailed studies and suitable
mitigation measures would be identified.
4.3.1 Land Environment
Potential impact due to port location

Changes in land use pattern for example, change from agriculture, housing, etc., to port
related activity may necessitate rehabilitation and resettlement (R&R) of effected
communities/villages.
The project may also involve changes in land terrain for creation of a huge extant of port
infrastructure like operational areas, storages, roads, railway lines etc. Such terrain changes
are likely to affect drainage patterns as well as road rail connectivity.
Coastline changes like erosion or accretion may be expected due to the establishment of
ports inasmuch as the oceanographic and littoral process may be intercepted due to
construction of breakwaters, groynes etc., and dredging and reclamation works.
Transportation of huge quantities of construction material for the breakwaters, berths,
operational, administrative and welfare buildings, land filling/development, formation of
storage and stacking yards etc., during the construction phase and transport of cargoes
to/from the port during the operations phase of the port may result in excessive use of
existing public infrastructure like roads, railways and in-land waterways etc., resulting in
congestion and early ageing etc. Similarly public utilities such as water supply, drainage,
electrical power etc may also get undue demand.
Potential impact during port construction
Transportation of huge quantities of construction material for the breakwaters, berths,
wharfs, jetties, operational, administrative and welfare buildings, land filling/development,
formation of storage and stacking yards etc., during the construction phase and transport of

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cargoes to/from the port during the operations phase of the port may result in excessive use
of existing public infrastructure like roads, railways and in-land waterways etc., resulting in
congestion and early ageing etc. Similarly public utilities such as water supply, drainage,
electrical power etc may also get undue demand.
Potential impact during port operations
Ship traffic and discharges may cause environmental concerns on the land where they are
unloaded and stored or when they are being transported.
4.3.2 Water Environment

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.

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Impacts on water quality due to cargo operations

Runoff from raw material storage, spills from bulk cargo handling, and wind-blown dust are
possible sources of contamination of port water. Accidental spills of toxic, harmful
materials, oils or oily compounds, and other raw materials are also possible sources of
contamination of water.
4.3.3 Marine Environment (coastal hydrology/bottom contamination,

sea/harbor water quality)

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

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bottom configuration and biota and may disperse toxic or harmful chemicals around the
disposal site. Dredging removes bottom habitat and may lead to a loss of fishery resources.
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.

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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.

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4.4 Key Issues for Development
The port at Tadadi would primarily cater to the iron-ore export segment, for which the
hinterland catchment area would be the Bellary/ Hospet region in the northern part of the
State. The key issues with respect to development of the port at Tadadi can be broadly
categorized as follows:
4.4.1 Technical issues
The Aghanashini river is prone to high silting. To avoid flooding and other risks associated
with silting, periodic de-silting operations would need to be carried out. This would result
in increased maintenance costs in addition to high dredging costs.
4.4.2 Connectivity issues
For ease of cargo movement at the port, connectivity to the hinterland (i.e., the land behind
the borders of a coast or river) is an important factor. The connectivity details to the port
have been analyzed and presented in the next Chapter.

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5. ANALYSIS OF CONNECTIVITY TO PORT

Connectivity to the port is a critical factor for determining the feasibility of the proposed
port at Tadadi. Since the port would primarily cater to the iron-ore export segment, the
connectivity has been analyzed from the perspective of this command region for the port
i.e., Bellary Hospet region in North Karnataka. Both Rail and Road options were
considered for examining the connectivity to the port and the same is set out in this
Chapter.
5.1 Connectivity by Rail
Currently there is no railway line connecting Tadadi to the hinterland. The nearest railway
line is the Konkan Railway connecting Mumbai and Kerala. The nearest railway station to
Tadadi is at Ankola which is about 25 km from Tadadi. However, there are proposals for
development of railway lines connecting the hinterland and Tadadi. The various options of
connecting Tadadi with the hinterland are set out below:
Railway line between Hubli and Ankola
Railway line between Honnavar and Talguppa
Railway line between Londa Castlerock and Tadadi
Honnavar
Fig 19: Options for railway connectivity to Tadadi

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5.1.1 Feasibility of Hubli Ankola Railway Line
The Railways have proposed a new railway line to connect Hubli and Ankola towns. The
length of the proposed line is approximately 167 km. If this section is developed, it would
establish connectivity between the mining catchment region of Bellary Hospet and
Tadadi.
However, there are certain issues with the development of this line. Since, the line would
need to cut across the Western Ghats and through Uttar Kannadas forest area, it would
raise serious environmental concerns. Appropriate clearances would need to be obtained
from statutory authorities concerned for development of this line.
5.1.2 Feasibility of Honnavar Talguppa Railway Line
Similar issues exist with the proposed Honnavar Talguppa railway line near Shimoga.
Since this line would pass near Jog Falls, it would have an enormous environmental impact
in the region.
Therefore, owing to these environmental concerns, the development of this railway line
seems questionable. Appropriate clearances would need to be obtained from statutory
authorities concerned for development of this line.
5.1.3 Feasibility of Hubli - Londa Castlerock Tadadi Railway Line
The existing railway line from Bellary Hubli Madgaon could be explored for
transportation of cargo between Tadadi and the Bellary region. Though there is an existing
line between Londa and Castlerock which runs across the Ghats, it would be required to
develop the rail link between Castlerock and Tadadi which would run along the Konkan
Railway line.

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

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The NH 63 between Bellary and Hubli would be a common link in both the options.
Further analysis of the options is presented below.
5.2.1 Option 1
The road stretches in this Option consist of NH 63 from Hubli to Ankola and subsequently
NH 17 to Tadadi. The connectivity from NH 17 to the port would be through a local road.
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
Length Existing Carriage
Road Stretches
(Km) way (m)
NH 63 Hospet Hubli 140 7
NH 63 Hubli Ankola 128 7

NH 17 Ankola -Tadadi 25 7

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The connectivity and the corresponding traffic movement have been analyzed taking into
account the existing road width and possible option of road widening in the near future.
The traffic movement possible without road widening (existing road) and with road
widening options are analysed below.
Existing road conditions
The existing NH 63 is a 2 lane road. As per Indian Roads Congress (IRC) norms and
assuming a service level B on the road, the maximum passenger car units (pcu) possible on
the road is 20000. The non-truck traffic in terms of pcus is assumed to be 3000 and the
truck traffic is assumed to be 17000. Assuming 3 pcus per truck, the maximum number of
trucks that can ply on the road is estimated at 2833 in a single direction. Since a truck can
carry upto 12 tonnes of cargo, the total cargo capacity that can be transported on the road is
estimated at 15.71 million tonnes per annum (mtpa).
Table 8: Option 1 - Cargo carrying capacity of road (without widening)
Hospet Hubli
Particulars Ankola
(NH 63)
Lane 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) 2833
[assumed at 3 pcu per truck]
Cargo Capacity (Tonnes per day 34000
per direction) [assumed at 12
Tonnes per truck]
Total Cargo Capacity (Tonnes per 47600
day)

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Hospet Hubli
Particulars Ankola
(NH 63)
(incl 40% return load)
Cargo Capacity (mtpa) (assuming 15.71

330 days of traffic)
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)

Hospet Hubli
Particulars Ankola
(NH 63)
Expansion 2 lane to 4 lane

Non-truck traffic 4000
Max no. of trucks (per direction) [assumed at 3 pcu 6000
per truck]
Cargo Capacity (Tonnes per day per direction) 72000
[assumed at 12 Tonnes per truck]
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.

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

Kumta)
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

Length Existing Carriage
Road Stretches
(Km) 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.

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)
Tadas - Kumta
Particulars
(SH 69)
Lane Intermediate

Non-truck traffic (max pcu) 3000
Max no. of trucks (per direction) [assumed at 3 1500
pcu per truck]
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)
Tadas Kumta
Particulars
(SH 69)
Intermediate lane to 2
Expansion
lane
Non-truck traffic 4000
Max no. of trucks (per direction) [assumed at 3 pcu 2667
per truck]
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 for 4
Forest Section
Road Stretches laning*
(km)
(acres)
NH 63 Hospet Hubli 550
NH 63 Hubli Ankola 510 78 (43km
ghat section)
NH 17 Ankola -Tadadi 100
TOTAL 1160
*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:

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
Land Acquisition for 4
Forest Section
Road Stretches laning*
(km)
(acres)
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.

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5.3 Cargo availability at Tadadi Port
Based on the connectivity analysis presented above, two scenarios have been analysed for
estimating the cargo availability at the port.

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

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Therefore, it is estimated that a total of 14.06 million tonnes per annum of cargo would be
available for the port at Tadadi with the existing road conditions.
After road widening

Assuming that the road stretches connecting NH 63 and 17 are widened and assuming the
cargo movement between the ports at Karwar and Belekere (as mentioned above), the cargo
available for Tadadi is set out in the table below:
Table 16: Cargo availability at Tadadi port (after road widening)
Particulars Capacity
Cargo Carrying Capacity of Road @ service level B
38.25
(mtpa)
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.

Feasibility Report
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 Rs. Crore
271.02
construction
14. Interest During Rs. Crore
280.69
Construction(IDC)
Total Project Cost Rs. Crore 2230.71

Feasibility Report
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
Scenario 1: Design Capacity of Tadadi existing road connectivity
1. 14.06
(mtpa)
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

Feasibility Report
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
New Mangalore
Sl. No. Particulars
Port Trust
1 Port dues 6.44
2. Pilotage 11.52
3. Berth Hire 0.12 *
4. Wharfage / Waterfront Royalty 35.00
Cargo Handling (cranes , forks,
5. 102.60
etc)
* 25% of Berth Hire is the reservation fee that is added
6.7 Operations and Maintenance Expenses
The operation and maintenance costs assumed for the financial analysis are set out below.

Feasibility Report
Table 23: Estimated operation and maintenance costs

Sl. Particulars Assumptions
No.
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
Project
Year 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
No.
1. Max grant during Construction - Equity Support ( % of Project 20%

Feasibility Report

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
Grant
Target Equity Support O&M Support % of Project
PIRR (Rs. crore) (Rs. crore) 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
Project
Year 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.

Feasibility Report
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.

Feasibility Report
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)

Feasibility Report
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

Feasibility Report
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
Concessionaire has the flexibility to design,
finance, construct, operate and manage facilities.
Control of
However, development of the facilities would
4 Concessioning
be as per the requirements set out by the
Authority in Project
Concessioning Authority in the bidding
document.
The merits and demerits of this structure is set out below:
Merits Demerits
Ownership of land and Project Technical proposals need to
Facilities would remain with be checked for conformance
Concessioning Authority with minimum
All risks such as construction risk, specifications
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

Feasibility Report
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

Feasibility Report
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.

Feasibility Report
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.

Feasibility Report
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 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
Hrs)
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 Wharf Handling(Rs. per 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
Operations Tonne)
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
Feasibility Report
Profit & Loss Statement

Rs. Crore
Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040
End 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar-
Date 11 12 13 14 15 16 17 18 19 20 25 30 35 40
Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366
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
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
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

Feasibility Report
Annexure 2
Revenue Calculations
Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040
Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366
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
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
(mtpa)
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 Wharf Handling (Rs. per
Operation 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
s
Revenue
Navigatio 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
n
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
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
Handling
Opex
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

Feasibility Report
Profit & Loss Statement

Rs. crore
Fin Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040
Operation days 0 0 0 212 365 366 365 365 365 366 365 365 365 366
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
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
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

Feasibility Study of Pert TADADI in Karnataka 2009 69 Pages PDF

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Feasibility Study of Pert TADADI in Karnataka 2009 69 Pages PDF

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Feasibility Study for

Development of Port at Tadadi

Submitted to Infrastructure Development Department

Infrastructure Development Corporation (Karnataka) Limited

2. Catchment Area Analysis....................................................................................................10

3. Analysis of Competing Ports ..............................................................................................17

4. Proposed port at Tadadi ......................................................................................................28

5. Analysis of Connectivity to Port ........................................................................................38

6. Financial Viability Analysis ................................................................................................52

7. Indicative Options for Project Implementation .................................................................59

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

Infrastructure Development Corporation (Karnataka) Limited 2

Infrastructure Development Corporation (Karnataka) Limited 3

Fig 1: Movement of iron ore from Bellary by road

Infrastructure Development Corporation (Karnataka) Limited 4

Infrastructure Development Corporation (Karnataka) Limited 5

Infrastructure Development Corporation (Karnataka) Limited 6

Table 1: Index of Industrial Production of Karnataka (Base: 1993-94 = 100)

Source: Directorate of Economics & Statistics, Bangalore

1.1 About the assignment

With this objective in mind, the Infrastructure Development Department (IDD),

Infrastructure Development Corporation (Karnataka) Limited 7

1.2 Approach and Methodology

Development of Port at Tadadi

Analysis of Estimated cargo Hinterland

Major Ports By Rail

Financial viability for

Key Issues &

a) Analysis of the catchment area for the proposed port

Infrastructure Development Corporation (Karnataka) Limited 8

Infrastructure Development Corporation (Karnataka) Limited 9

2. CATCHMENT AREA ANALYSIS

a) Catchment area analysis of Bellary Hospet region

2.1 Catchment Area Bellary - Hospet

2.1.1 Existing movement of iron ore by road and rail

Out of the total iron ore mined from Bellary district:

Fig 10: Movement of iron ore from Bellary by road

Infrastructure Development Corporation (Karnataka) Limited 11

Fig 11: Movement of iron ore from Bellary by rail

Infrastructure Development Corporation (Karnataka) Limited 12

c. About 10 million tonnes is consumed locally in the district by steel plants,

2.1.2 Growth potential of Bellary Hospet region

2.2 Proposed development initiatives of the State

Infrastructure Development Corporation (Karnataka) Limited 13

Tumkur- Honnavar via Shimoga

Chitradurga-Mangalore via Shimoga-Udupi

i) Steel: covering Bellary, Koppal, Bagalkot, Haveri, Gadag & Raichur

Mandya, Belgaum, Bidar, Dharwad and other Districts.

Among these Special Industrial Zones (SIZ)

2.3 Impact Analysis

Infrastructure Development Corporation (Karnataka) Limited 15

Infrastructure Development Corporation (Karnataka) Limited 16

3. ANALYSIS OF COMPETING PORTS

3.1 Existing Ports Scenario in the State

3.1.1 Major Ports

At present, in Karnataka there is only one

Infrastructure Development Corporation (Karnataka) Limited 17

3.1.2 Minor Ports1

The above ports are broadly classified into three categories:

c. Remaining seven Ports are seasonal functioning as fair weather lighterage/

3.1.3 Exports and Imports in Karnataka (through Ports)

Infrastructure Development Corporation (Karnataka) Limited 19

3.2 Competing Ports