CONTENT : 1 BACKGROUND AND RELEVANCE 5 1.1 Introduction 5 1.2 Focus 5 1.3 Scope 6 1.4 Approach 7 2 LITERATURE REVIEW 7 2.1 Inland Water Transport 8 2.2 History of IWT in India 8 2.3 Current Status of Inland Waterways 8 2.4 Reasons for Decline 9 2.5 Classification of waterways 10 2.5.1 National Waterways 10 2.5.2 Smart Waterways 11 2.6 IWT and Five Year Plan 11 2.7 Technology and Infrastructure Requirements 11 2.7.1 Waterways 11 2.7.2 Vessels 12 2.7.3 Terminal Facilities 12 2.7.4 Navigation Aids 12 2.8 Insurance 12 2.9 Pricing Policy 12 2.10 Conclusions 12 3 EXPERIENCE OF IWT IN OTHER COUNTRIES 14 3.1 Background 14 3.2 IWT in China 14 3.3 IWT in Europe 17 3.4 IWT in Russia 19 3.5 United States IWT 20 3.5.1 Mississippi river –gulf inter coastal waterway system (MGIS): 21 3.6 IW Barges and Vessels 21 3.7 Conclusion 22 4 PROFILE OF NATIONAL WATERWAY 1 23 4.1 Background 23 4.2 Stretch division based on navigability 23 4.2.1 Haldia-Kolkata (km35-km140) 23 4.2.2 Kolkata Nabadweep (km140- km280) 23 4.2.3 Nabadweep – Katwa (km280-km360) 23 4.2.4 Katwa-Jangipur (km360-km512) 23 4.2.5 Jangipur Farakka (km512-km560) 24 4.3 Linkages to surrounding area 24 4.4 Left Bank Main Canal (LBMC) 24 4.4.1 Link to Durgapur 24 4.5 East Coast Canal system 26 4.5.1 HIJLI Canal System 26 4.5.2 Orissa Coast Canal (OCC) 27 4.5.3 Matai River 27 4.5.4 Brahmani River 27 4.6 Link to Ib valley 27 4.6.1 Excavation 27 4.6.2 Dredging of River 27 4.6.3 Lock Gates 28 4.6.4 By Pass Navigational Lock At Jokadia Anicut 28 4.6.5 Construction of R.C.C Bridges in Canals 28 4.6.6 Low Navigational Clearance of Jenapur Old Railbridge 28 4.6.7 Hazardous Rocky Bed near Nalco 28 4.7 Conclusions 29 5 SUSTAINABILITY OF STRETCH 30 5.1 Potential commodities 30 5.2 Coal Movement 30 5.3 Financial Feasibility 31 5.4 Capital cost 31 5.4.1 Terminal 31 5.4.2 Waterway 31 5.4.3 Fleet 32 5.5 Vehicle Operating Cost (VOC) 32 5.5.1 Vessel size: 32 5.5.2 Operating cost: 32 5.6 Capital Recovery/Freight Rates 34 5.7 Conclusions 35 6 LEGAL ISSUE AND INSTITUTIONAL FRAMEWORK 36 6.1 Introduction 36 6.2 Planning 36 6.3 Regulations 37 6.3.1 Waterway approval: 37 6.3.2 General regulation: 37 6.3.3 Specific approval for vessel safety: 38 6.3.4 Regulation of competition: 39 6.4 Ownership 39 6.4.1 Structure: 39 6.4.2 Possible owner institutions 40 6.5 Financing 41 6.5.1 IWAI 41 6.5.2 GoI 41 6.6 Operation 42 6.7 Maintenance 42 6.8 Preliminary recommendations 42 6.8.1 Planning risk 43 6.8.2 Investment risk 43 6.8.3 Financing risk 43 6.9 Human Resource Development 44 6.10 Management Development 44 7 POLICY GUIDELINES FOR PRIVATE SECTOR PARTICIPATION 46 7.1 Why Private Participation? 46 7.2 Approach to Private Participation 46 7.3 Components of the IWT System 47 7.4 International Precedents of Public-Private Partnership 47 7.4.1 China 47 7.4.2 Russia 48 7.4.3 USA 49 7.4.4 US Canada: St. Lawrence Seaway 49 7.5 Are these models replicable in the Indian' context? 50 7.6 Risk Assessment and Constraints to Development of IWT in India 50 7.6.1 Well entrenched road and rail network: 50 7.6.2 Limitations inherent to IWT 51 7.6.3 No demonstrated case of success 51 7.6.4 Chicken and egg syndrome 51 7.6.5 Funds constrained 51 7.6.6 Demand Risk 51 7.6.7 Fairway Risk 51 7.6.8 Policy Risk 52 7.6.9 Financing Risk 52 7.7 The Goa Success Story 52 7.8 Strategy for Sector Development 53 7.9 Approach to Project Structuring 54 7.10 Selecting Project Participants 54 7.11 Costs and Benefits to Project Participants 55 8 INLAND WATERWAYS SYSTEM DEVELOPMENT: A ROAD MAP 58 8.1 Phase I (2005-2007) 58 8.2 Development Projects (Phase I) 58 8.3 Phase II (2007-2012) 59 8.4 Phase III (2007 onwards) 59 References 60