Final DFR Kollam Report

(Private & Confidential)
Detailed Project Report for the Development of

Thankassery (Kollam) Port
Final Report
Submitted to
The Directorate of Ports, Government of Kerala

Submitted by
Deloitte Touche Tohmatsu India Pvt. Ltd.

October 2010
List of Abbreviations
ACC
APEDA
APPROX
AVT
BPCL
C
CAGR
CCHAA
CCoCI
CED
CEPC
CEPZ
CFS
CHA
CIAL
CII
CNSL
CRZ
DoP
DPR
DSCR
DTTIPL
DWT
EDI
EIA
EICL
EMP
EXIM
FACT
FEU
FT
GDP
GoK
GPS
GRT
H0
HDI
Page 2 of 158
The Associated Cement Companies Limited

The Agricultural and Processed Food Products Export Development Authority
Approximately
A V Thomas
Bharat Petroleum Corporation Limited
Celsius
Compounded Annual Growth Rate
Cochin Custom House Agents Association
The Cochin Chamber of Commerce & Industry
Centre for Environment and Development
Cashew Export Promotion Council
Cochin Export Processing Zone
Container Freight Station
Custom House Agents
Cochin International Airport Ltd
Confederation of Indian Industry
Cashew nut shell liquid
Coastal Regulation Zone
Directorate of Ports
Detailed Project Report
Debt Service Coverage Ratio
Deloitte Touche Tohmatsu India Pvt. Ltd.
Deadweight tonnage
Electronic Data Interchange
Environmental Impact Assessment
English Indian Clays Ltd
Environment Management Plan
Export / Import
The Fertilisers and Chemicals Travancore Limited
Forty-foot equivalent unit
Feet
Gross Domestic Product
Government of Kerala
Global Positioning System
Gross Registered Tonnage
Null Hypothesis
Human Development Index
(c) 2010 Deloitte Touche Tohmatsu India Private Limited
HUF
ICD
ICT
INR
IPA
ISPS
KG
KM
KMML
KSIDC
KV
KWA
LCL
LPCD
LTD
M
MAX
MLHW
MLLW
MHHW
MHLW
MSL
MM
MMTG Act
MoP
MPEDA
MSL
MT
MV
MW
NA
NCR
NH
NOS.
NOx
NPV
NW
NW-SE
O-D
OECD
Page 3 of 158
Hindu Undivided Family

Inland Container Depot
International Container Terminal
Indian Rupees
Indian Ports Association
International Ship and Port Facility Security Code
Kilogram
Kilometer
Kerala Minerals & Metals Ltd
Kerala State Industrial Development Corporation
Kilovolt
Kerala Water Authority
Less than container load
Litres per capita per day
Limited
Meters
Maximum
Mean Low High Water
Mean Low Low water
Mean High High Water
Mean High Low Water
Mean Sea Level
Millimeters
Multimodal Transportation of Goods Act
Muriate of Potash
The Marine Products Export Development Authority
Mean Sea Level
Metric Tons
Mother Vessel
Megawatt
Not Applicable
National Capital Region
National Highway
Numbers
Oxides of Nitrogen
Net Present Value
National Waterway
North West South East
Origin-Destination
Organization for Economic Co-operation and Development
P
P.A.
PABX
PESTLE
PPP
QTY
R.M
RFID
RfP
SEZ
SO2
SPC
SPM
SQ. MTS
SWOT
T&C
TEU
THC
TTPL
UOM
US$
VKUY
WLL
WMS
Y-O-Y
Page 4 of 158
Probability
Per Annum
Private Automatic Branch Exchange
Political, Economic, Social, Technological, Legal, Ecological
Public Private Partnership
Quantity
Raw Materials
Radio frequency identification
Request for Proposal
Special Economic Zone
Sulphur dioxide
Special Purpose Company
Suspended Particulate Matter
Square meters
Strengths, Weaknesses, Opportunities, Threats
Textile and Clothing
Twenty-foot equivalent unit
Terminal Handling Charges
Travancore Titanium Products Ltd
Unit of Measurement
US Dollar
Vishesh Krishi Upaj Yojana
Wireless local loop
Warehouse Management System
Year on year
Contents
Executive Summary ................................................................................................................. 9
1.
2.
3.
4.
5.
Introduction ......................................................................................................................14
1.1
Project background & rationale .......................................................................................14
1.2
Structure of the Report ...................................................................................................15
Overview of business landscape ....................................................................................17

2.1
PESTLE analysis...........................................................................................................17
2.2
SWOT Analysis ............................................................................................................20
Traffic assessment ..........................................................................................................22

3.1
Approach to the traffic study...........................................................................................22
3.2
Hinterland mapping .......................................................................................................22
3.3
Primary hinterland analysis.............................................................................................25
3.4
Indicative traffic of the primary hinterland and potential open cargo ....................................26
3.5
Total potential open cargo for Thankassery port from primary hinterland .............................32
3.6
Secondary hinterland analysis .........................................................................................33
3.7
Open cargo from primary and secondary hinterland ...........................................................37
3.8
Indicative traffic projections. ..........................................................................................38
Site investigations ...........................................................................................................50

4.1
Geographical setting ......................................................................................................50
4.2
Land ............................................................................................................................51
4.3
Connectivity .................................................................................................................51
4.4
Topography ..................................................................................................................53
4.5
Bathymetry ...................................................................................................................54
4.6
Geo technical conditions ................................................................................................54
4.7
Tide and wave data ........................................................................................................54
4.8
Environmental data ........................................................................................................55
4.9
Utilities ........................................................................................................................59
Port planning ....................................................................................................................61

5.1
Introduction ..................................................................................................................61
5.2
History of the port operations..........................................................................................61
5.3
Existing Port Facilities ...................................................................................................62
5.4
Planning methodology ...................................................................................................62
5.5
Strategy for project planning ...........................................................................................63
5.6
Port layout ....................................................................................................................63
Page 5 of 158
6.
5.7
Port facility requirements ...............................................................................................65
5.8
Planning criteria ............................................................................................................66
5.9
Planning consideration ...................................................................................................67
5.10
Navigational aids...........................................................................................................67
5.11
Cargo handling equipment ..............................................................................................67
5.12
Land requirements .........................................................................................................67
5.13
Constrains in port operations ..........................................................................................67
Cost estimates .................................................................................................................70

6.1
7.
8.
9.
Capital cost estimation ...................................................................................................70
Determination of tariffs....................................................................................................75
7.1
Overview of port tariffs ..................................................................................................75
7.2
Tariff determination .......................................................................................................76
Financial analysis ............................................................................................................78

8.1
Introduction ..................................................................................................................78
8.2
Identification of revenue streams .....................................................................................78
8.3
Assumptions of investment and expenditure .....................................................................79
8.4
Financial projections ......................................................................................................83
Way forward .....................................................................................................................85
Annexure 1 : Stakeholders contacted for the traffic survey ........................................................87

Annexure 2 : Statistical analysis of data for expected traffic at Thankassery port ......................92
Annexure 3 : Growth rate taken for the various commodities ..................................................101
Annexure 4 : Traffic projections for various commodities ........................................................104
Annexure 5 : Route of roads, canal and railway line near Port area ........................................120
Annexure 6 : Topography and contour map port area ..........................................................121
Annexure 7 : Bathymetric chart ...............................................................................................122
Annexure 8 : Borehole tests results.........................................................................................123
Annexure 9 : Rapid Environmental Impact Assessment ..........................................................124
Annexure 10 : Port development layout ..................................................................................125
Annexure 11 : Financial projections ........................................................................................126
Annexure 12 : Queries received from DoP on the draft final report submitted .........................127
Annexure 13 : Clarifications submitted in the draft final report .................................................128
Caveats...................................................................................................................................157
Page 6 of 158
List of Tables
Table 1: Regions in the primary and secondary hinterland ................................................................23
Table 2: Cargo profile of the primary and secondary hinterland ........................................................24
Table 3: Indicative road distances between the identified primary cargo belts and gateway ports ........25
Table 4: Potential open cargo from Kollam district ..........................................................................27
Table 5 : Potential open cargo from Thiruvanthapuram District ........................................................28
Table 6 : Potential open cargo from Idukki District ..........................................................................28
Table 7 : Potential open rubber based cargo from Kottayam district ..................................................29
Table 8: Indicative road distances between the identified secondary cargo belts and gateway ports .....33
Table 9: Export commodities from Tamil Nadu hinterland ................................................................34
Table 10: Potential open cargo from Tamil Nadu hinterland .............................................................36
Table 11: Total open cargo from primary and secondary hinterland ..................................................38
Table 12: Consolidated traffic growth in tonnes ( Low growth scenario) .............................................40
Table 13: Containerised traffic growth in TEUs (Low growth scenario) ...............................................41
Table 14: Consolidated traffic growth in tonnes (medium growth scenario) .......................................42
Table 15: Containerised traffic growth in TEUs (medium growth scenario) .........................................43
Table 16: Consolidated traffic growth in tonnes (high growth scenario) .............................................44
Table 17: Containerised traffic growth in TEUs (high growth scenario) ...............................................45
Table 18: Comparative cost of exporting One TEU from Kollam to Cochin port by Road vis-a-vis though
the proposed Thankassery (Kollam) cargo terminal .........................................................................47
Table 19: Comparative cost of exporting One TEU from Trivandrum to Cochin port by Road vis-a-vis
though the proposed Thankassery (Kollam) cargo terminal ..............................................................48
though the proposed Thankassery (Kollam) ....................................................................................49
Table 21: Project activities and its impacts .....................................................................................59
Table 22: Sub-station network in Kollam district..............................................................................60
Table 23: Project cost incurred under Fisheries Department .............................................................70
Table 24: Project cost incurred under ASIDE scheme of Ministry of Commerce & Industry ...................71
Table 25: Project cost incurred under State Government (Port sector) ...............................................71
Table 26: Project cost incurred Tsunami rehabilitation programme under port sector .........................72
Table 27: Summary of the project cost incurred by the State Government of Kerala............................72
Table 28: Additional project cost envisaged for development of Thankassery port ..............................74
Table 29: Vessel related charges....................................................................................................75
Table 30: Cargo related charges ....................................................................................................75
Table 31: Cargo related component charges ...................................................................................76
Table 32: Tariff for container vessels ..............................................................................................76
Table 33: Tariff for bulk coastal vessels ..........................................................................................77
Table 34: Projected traffic for financial modeling ............................................................................78
Table 35: Summary of phase wise investment details ......................................................................79
Table 36: Debt / financing options .................................................................................................80
Table 37: Operation and maintenance percentage ..........................................................................81
Table 38: Waterfront royalty to GoK ..............................................................................................81
Table 39: Port related assumptions ...............................................................................................82
Table 40: Depreciation rates for various assets ...............................................................................82
Table 41: Tax rates.......................................................................................................................83
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Table 42: Projected Gross Revenues ..............................................................................................83

Table 43: EBITDA .........................................................................................................................83
Table 44: Financial feasibility indicators .........................................................................................84
Table 45: Minimum draft recorded across the various stretches of the NW-3 ...................................137
Table 46: Rail connectivity cost details .........................................................................................142
Table 47: Approach road cost estimates .......................................................................................143
Table 48: Revised traffic projections in tonnes ..............................................................................144
Table 49: Traffic projections in tonnes as indicated in the draft DFR ................................................144
Table 50: Additional cost to be incurred for berthing of 20,000 DWT vessels. ...................................145
List of Figures
Figure 1 : SWOT analysis of Thankassery port ............................................................................................ 21
Figure 2 : Indicative primary hinterland for Thankassery Port ................................................................... 23
Figure 3 : Indicative secondary hinterland for Thankassery Port .............................................................. 23
Figure 4 : Overview of the Kollam Port area ............................................................................................... 50
Figure 5 : Kollam district road network ...................................................................................................... 51
Figure 6 : Kollam district road network ...................................................................................................... 52
Figure 7 : The existing water canal and rail line near Thankassery port..................................................... 53
Figure 8 : Loading / Unloading operations for MV Anakuri ........................................................................ 61
Figure 9 : Indicative port planning layout ................................................................................................... 65
Figure 10 : Import trends of countrys raw cashew nuts .......................................................................... 104
Figure 11 : Import trends of raw cashew nuts through Cochin Port ........................................................ 104
Figure 12 : Export trends of countrys cashew kernels ............................................................................. 105
Figure 13 : Export trends of raw cashew nuts through Cochin Port ......................................................... 105
Figure 14 : Export trends of countrys marine food.................................................................................. 106
Figure 15 : Export trends of marine food through Cochin Port ................................................................ 106
Figure 16 : Production trends of pepper in Idukki district ........................................................................ 109
Figure 17 : Exports trends of natural rubber ( Kerala vis--vis India) ....................................................... 111
Figure 18 : Exports trends of Cashew Nut Shell Liquid ( Kerala vis--vis India) ........................................ 113
Figure 19 : Import trends of timber in the districts of Kanyakumari, Thiruneveli, Virudhunagar, Tuticorin
and Madurai .............................................................................................................................................. 117
Figure 20 : West coast canal map ............................................................................................................. 135
Figure 21 : Cargo movement trends on the West Coast Canal ................................................................. 136
Figure 22 : Overview map of Kollam to Kayamkulam area ....................................................................... 137
Figure 23 : Proposed rail alignment from existing rail head to Thankassery port .................................... 140
Page 8 of 158
Executive Summary
The Directorate of Ports, Government of Kerala entrusted to the consultants the task of preparation of
the detailed project report (DPR) for development of Thankassery port as per the scope of work
mentioned in section 1.1.
The Consultant subsequently undertook
detailed traffic study ,
review of the technical studies earlier undertaken
environmental studies,
detailed topography and route profiling,
Port planning and phasing of the project based on the traffic flow and site conditions
Financial feasibility
Based on the above activities, a suitable business model has been proposed for the Thankassery port
development as spelt out in the subsequent sections of this document.
Traffic projections
The state government has constructed a wharf in Thankassery in November 2006. However the existing
facility has not witnessed significant traffic apart from coastal movement of sand and the occasional
movement of construction material to Male.
To firm up the type of infrastructure that would be required, its phasing, capacity and supporting
facilities, to be established at Thankassery port, an understanding of the cargo movement from the
identified hinterland was essential. Hence a comprehensive primary survey covering the hinterland of
both the states of Kerala and Tamil Nadu was undertaken covering cumulatively a respondent sample
size of more than 150 numbers. The respondents included all the relevant stakeholders in the exports,
shipping and logistics sector covering customs house agents, commodity boards, trade associations,
regional export promotion trade bodies, commodity export promotion body, major industries, customs
officials, district industries centre, inland container depots, and container freight stations.
The likely open cargo that would flow through the port of Thankassery has been considered based on
the following:
Assessment of the EXIM commodities in the identified hinterland Topography and connectivity
issues that may impede / hasten the cargo flow through Thankassery port.
Distance of the cargo belts to Thankassery port vis--vis the other existing and upcoming ports in
the region.
Acceptability of the relevant stakeholders ( shippers) on diverting their cargo to Thankassery port.
Page 9 of 158
The indicative cost savings.

Identification of such open cargo in terms of commodities and their indicative quantum.
Forecasting of cargo growth and traffic based on the commodity profiles and growth potential for
EXIM trade / coastal shipping that reflects the above ground realities.
A detailed commodity profiling was undertaken and was categorized into containers and bulk / breakbulk cargo. The above commodity categorization included both overseas and coastal movement.
Subsequently, three different alternatives were developed for traffic forecasting with each one of them
having low, medium and high case scenarios. The summary of cargo projected is furnished in the below:
Total traffic (both bulk and containerized) in '000 Tonnes
Low
Medium
High
2015
2,024
2,207
2,306
2020
2,215
2,718
3,073
2025
2,445
3,388
4,140
2030
2,695
4,255
5,596
2035
2,966
5,343
7,505
2040
3,275
6,806
10,281
2025
44,992
62,907
70,574
2030
50,298
77,173
89,208
2035
56,548
95,364
115,293
2040
63,773
118,300
149,651
Only containerized traffic in TEUs

Low
Medium
High
2015
37,122
43,568
44,332
2020
40,429
51,863
55,879
Based on the detailed analysis of the macro and micro economic scenarios, the medium growth scenario
has been decided as the base case for cargo. The entire port planning and the subsequent financial
modelling has been undertaken considering the medium growth scenario of traffic.
Port Planning
In a typical PPP port related project, the private developer is required to invest a substantial amount of
time and resources in establishing the infrastructure for commencing port operations, while the
government provides the waterfront and other hand holding related support. In this aspect, the port of
Thankassery is very much unique, since the State Government has already established facilities at the
port.
This would provide the private developer a ready-made infrastructure set-up which would facilitate him
to commence commercial operations from Day 1. Accordingly the envisaged port planning focuses on
the optimum utilization of the existing facilities to its full capacity. It is only when the capacity of the
existing facilities is fully utilized that the private developer would be required to plan and install
additional infrastructure for catering to the cargo traffic.
Accordingly the port planning exercise had been divided into the following phases Phase 1 The planning objective of the referred phase would be to utilize the existing facilities to its
full capacity. In this regards, the private developer would be required to augment the existing
infrastructure by:
Providing mechanical material handling equipment / cranes etc
Page 10 of 158
Strengthening existing facilities

Facilitating connectivity ( with active support of the state government)
Improving the storage requirements
Managing the port operations
The installed capacity of wharf with the above strengthening would be around 3.60 million tonnes
per annum and actual capacity utilized would be 2.70 million tonnes per annum with operating
efficiency of 75%. Considering above, the phase II would be required to be commissioned by year
2020 when the above capacity is utilized and traffic exceeds the above threshold.
Phase 2 A separate wharf 200.0 m long X 20.0 m wide is proposed in the port area towards
North/East direction which will be mainly for handling container cargo with higher capacity cranes
than considered in Phase I with increase in cargo handling rate by about 25 to 30%.
The area earmarked for future extension of about 20 hectares is proposed to be developed by
reclamation upto deck level of wharf the shore protection using rubble bund using of required sizes
of stones as per the design. The area so developed will be utilized for container / bulk/ break bulk/
other cargo stored separately with provision for both open / covered storage as per the need.
After commission of new wharf mainly for containerized cargo, the existing wharf will be used for
handling bulk and other cargo of comparatively less weight. After addition of second wharf, the
installed capacity would get increased to about 7.60 million tonnes per annum and actual capacity
utilization would be about 6.0 million tonnes per annum with operational efficiency of 75%.
The Thankassery port is planned considering dredging in future upto -10.0 m level thereby allowing the
vessels upto 9 m draft at all tides. Considering this the vessels of size upto 15,000 dwt can be
maneuvered inside the harbour and berth at the existing wharf structure. At present the depths
available at wharfs and inside the harbour are about -6.5 m to -7.0 m, which will allow vessels having
draft upto 5.5 to 6 m to operate in the harbour. This will allow vessels of size 6,000 to 7,000 dwt to berth
at all tides.
Financial Feasibility
The State Government of Kerala had the foresight to tap the potential of Thankassery for the
development of a port and had accordingly invested in a phased manner to develop the region into a
coastal / feeder gateway terminal. The immediate focus is hence to utilize the existing infrastructure
created by State Government and accordingly complement the facilities so created resulting in
commercial operations of the port. To that extent the private developer would be required to invest
around Rs. 400 million especially in machineries and equipment to commence operations for Phase 1.
Once the threshold capacity of the existing facilities is reached in Phase 1, the private Developer would
be required to invest Rs. 1,250 million for creating new infrastructure in Phase 2 to cater to the
envisaged cargo . Based on the assumption and estimates, the profit and loss statement and cash flow
statement for the project was prepared. The projected gross revenues and profitability so worked out
has been indicated below
Projected revenues Rs. Million
Page 11 of 158
Year
2015
2020
2025
2030
2035
2040
Revenues
176.43
423.20
596.75
1077.54
1945.62
2411.78
Profitability Year
2015
2020
2025
2030
2035
2040
In Rs. Million
EBIDTA
91.53
253.17
365.20
689.53
1525.75
2273.77
Overall financial analysis for the proposed investments and the project was undertaken for a period of
30 years. DSCR calculations have been carried out for each phases from availing the debt till its
repayment.
While a positive NPV shows that the project as feasible, the purpose of the IRR calculations is to assess
whether the returns are adequately above the hurdle rate the stakeholders would have in mind in terms
of an adequate return on investment and the purpose of DSCR is to evaluate the overall debt payment
capability.
Following is the summary of these financial indicators:
Description
Internal Rate of Return (IRR) in %
Net Present Value (NPV) in Rs. Million
Payback period in years
DSCR Phase I
DSCR Phase II
Amount
12.51
205.09
15
1.82
2.81
Strategy for implementation

It is important for Thankassery port to pre-empt direct competition with existing major ports such as
Cochin port and Tuticorin port as these ports already have huge volumes of business and state of
the art infrastructure in place. Accordingly Thankassery should be positioned as a coastal port
complementing the existing operations of Cochin Port and the proposed operations at Vizhingham
port.
Page 12 of 158
At present the depths available at wharfs and inside the harbour are about -6.5 m to -7.0 m , which
will allow vessels having draft upto 5.5 to 6 m to operate in the harbour. This will allow vessels of
size 6,000 to 7,000 dwt to berth at all tides. Hence in phase 1 it is proposed to commence
operations using 6,000 to 7,000 DWT vessels with minimal investment as this option obviates the
requirement for deep dredging. In other words, the huge capital and maintenance dredging costs is
pre empted here. In phase 2 from 2020, the port would be able to handle 15,000 DWT vessels ( after
dredging) considering the increased traffic.
The State Government has already done a significant amount of the effort over the period of years
to provide a ready gateway facility. This obviously becomes a selling point for Thankassery port,
since the prospective Developer can invest the minimum amount required for material handling
equipment, strengthening of berth and other minor contingencies and this also minimizes the risk
for prospective private developers who can start operations within two to three months of signing
of the concessionaire agreement.
Having an existing infrastructure also offers the prospective developer to utilize the facilities to its
optimum capacity. Accordingly the private developer can observe the traffic flow to the port for a
period of 5 to 6 years and based on the prevailing circumstances can ramp up capacities. This
provides the port developers a leeway in terms of port planning.
The evacuation of the cargo is a critical parameter for Thankassery port and hence it is necessary
that the existing road network is augmented by additional dedicated four lane road corridor from
the port complex upto a suitable point on the National Highway 47 connecting Trivandrum and
Cochin. The port connectivity is to be incorporated as part of development plan of Kollam city and
surrounding areas in consultation with urban development authorities of Government of Kerala.
With regards to the development of the rail connectivity to the Kollam ( Thankassery) port,
presently the inland movement of the cargo type being generated from the hinterland identified for
Thankassery port is mainly through road since the primary cargo generators are within the radius of
150- 200 kms from the port. Cargo generators in the secondary hinterland of Tamil Nadu for the
Kollam port is expected to use the rail connectivity, though this cargo expected is not very significant
due to the same being routed towards Tuticorin port. Presently, based on the cargo identified for
the port, rail connectivity is not a pre-requisite. However, if such a connection exists, it will provide
additional advantage to the project.
The cost for the development of road connectivity and that of the rail (if required) should preferably
be undertaken by the government for making the project feasible and attractive to a private
developer
Page 13 of 158
1. Introduction
1.1 Project background & rationale
This chapter encapsulates the background information about the Client and purpose of this project
report.
The Client, Directorate of Ports (DoP) has been mandated to undertake all activities of the Kerala State
Government for the development of port sector in the State. Kerala is endowed with a nearly 590 km
long coastline and enjoys proximity to the international sea route. To leverage on this geographical
advantage, the DoP has embarked on an ambitious mission of developing several green field ports along
the Kerala coast under the Public Private Partnership (PPP) model. This initiative bodes well with its
endeavor of becoming a maritime state and ensuring world class infrastructure as articulated in the
document Vision 2025 for State of Kerala compiled for the Kerala State Council of Confederation of
Indian Industry (CII). Furthermore, with US $ 18 billion likely to be invested in port sector in India over a
time frame of next 5-7 years, this initiative is well justified1.
The port of Thankassery figures in the priority list of ports to be revived and developed for small modern
vessel shipping. With a view to gauge the future potential of the proposed port at Thankassery (Kollam),
the Directorate of Ports entrusted Deloitte Touche Tohmatsu India Pvt. Ltd. (DTTIPL) the task of
preparing a detailed project report (DPR). The broad level scope of work is spelt out below:
Conduct a detailed study of the cargo movement to & from the hinterland regions
Market analysis including traffic forecast for the port for 20 years
Determine the location & types of cargo handling facilities and back up area required with detailed
land acquisition plans
Determine and fix levels to which capital and maintenance dredging is required along with a detailed
dredging plan
Details of fire fighting, sanitary arrangements, water and waste water management and obtaining of
all necessary clearances from relevant authorities in this regard
Preparation of Master plan with berth orientation, berth dimension, services, and facilities along
with proper security plan under ISPS code
Conduct a Rapid Environmental Impact Assessment (EIA) & Technical studies to ensure an
environment friendly and sustainable port development
Detailed cost estimation, both capital and operation maintenance
Fixation of tariff structure and revenue estimates
Project structuring option along with recommendation
Project implementation methodology, phasing of infrastructure, and suggesting timeline for
development
Recommendation of the structure of Special Purpose Company (SPC)
Funding options / arrangements for the project and identify the resource for meeting the project
Shipping Industry Update - September 2009
Page 14 of 158
Evaluate the possibility for establishing alternate source of revenue like commercial complexes, SEZ
etc.
1.2 Structure of the Report

In the course of compiling this report, DTTIPL has ensured that specific requirements as outlined in the
RFP have been addressed appropriately. The report contains chapters on project background, overview
of business landscape, traffic and hinterland analysis, site investigations, port planning aspects,
operational aspects, determination of tariff and other revenue streams, project cost estimation,
financial analysis and recommendations as structured in the table below:
Chapter
Chapter 1
Topics Covered
This chapter on introduction covers project background , rationale, & report
structure
Chapter 2
This chapter deals with the overview of business landscape PESTLE and SWOT
analyses
Chapter 3
This chapter addresses the Traffic Analysis component which includes Deloitte
approach to traffic study, hinterland mapping, commodity profiling, traffic
forecasting by commodity based potential and traffic projections under low,
medium and high growth scenarios.
Chapter 4
This chapter covers the details of the site investigations including environmental
details, connectivity issues, topography of the region, bathymetry, tide, wave, wind,
current and profile of the existing infrastructure such as power, water, roads,
railway, telecommunications etc.
Chapter 5
This chapter deals with Port planning and narrates the

Existing port facilities
Planning methodology
Strategy for project planning
Port layout
Port facility requirements governing vessel size, berth requirements,
Dredging, etc.
Planning criteria tranquility requirements, turning circle,
marine operational criteria and storage area levels
Planning consideration and specifications of operations - width and depth of
channel
Cargo handling equipments for general cargo, bulk and containers
Navigational aids etc.
Chapter 6
This chapter provides details of capital costs and operation & maintenance costs for
the various facilities so planned
Page 15 of 158
Chapter
Chapter 7
Topics Covered
This chapter covers the overview of tariffs, regulatory framework, tariff setting and
tariff determination
Chapter 8
This chapter deals with the financial analysis covering the identification of revenue
streams, cost structure, debt-equity ratio, projected profitability and cash flow
statements, estimation of net present value (NPV), internal rate of return (IRR) and
debt service coverage ratio (DSCR)
Chapter 9
The last chapter of the main report provides the strategic recommendations about
the proposed project at Thankassery (Kollam)
Annexure
This includes the details of the stakeholders contacted for the primary survey, the
rationale behind the cargo growth rates, connectivity map, topography and contour
map of port area, borehole tests results, report on REIA study undertaken by CED,
port development layout plan, detailed financial calculations and the clarifications
provided on the draft report submitted based on the queries raised by the
Directorate of Ports
Page 16 of 158
2. Overview of business landscape

The business landscape is considerably influenced by the macro-economic environment such as
Government policies, legal framework, etc. Despite having a commendable Human Development Index
(HDI) and impressive socio-economic indicators, Kerala is lagging in terms of industrialization. This
chapter provides broad contours of the business environment with analysis of strengths, weaknesses,
opportunities and threats for the proposed project.
2.1 PESTLE analysis

Business environment covers factors affecting the business which are external and needs to be assessed
for its likely impact on port development. PESTLE is an acronym for the six key strategic areas of change,
namely: Political, Economic, Social, Technological, Legal, and Ecological and a technique for
understanding the impact of various external influences on a business. The study aims to analyze the
following a) Regulatory policies, legislation and standards imposed on the industry
b) Enabling technologies and trends in the port sector
c) Developments in the region and international scenario
d) Social and political factors likely to impact the proposed Thankassery port
2.1.1 Political
The port sector in India is influenced by political developments at both, the Central and the State levels.
Although political developments at the Centre do not have a direct bearing on port operations, it
manifests in form of hinterland developments and also affects EXIM trade.
Kerala has been under coalition politics ruling at the State level most of the time. The state has achieved
a high degree of success in social health care, literacy, land reforms, education, and social service
initiatives. However, in terms of industrialization, it is way behind other states like Gujarat, Maharashtra,
Tamil Nadu and Haryana. Traditionally, it has been home to small scale industries like coir making,
fishing and agricultural / horticultural products like spices, cashew, rubber, etc.
To its credit, Kerala was the first state to successfully develop an airport under the Public Private
Partnership mode. Cochin International Airport (CIAL), a public company, was set up with the support of
Non-resident Indians, a 13 % holding each by the Government of Kerala and the Central government and
the balance 74 % majority held by private players. Today, Kerala boasts a total of eleven contracts under
PPP mode, the values of which total up to approx INR 11,973 Crores2. With PPP now covering most of
the infrastructure projects including highways & ports, and the state having demonstrated its
2
www.pppindiadatabase.com
Page 17 of 158
commitment with CIAL, the road ahead for other project developments under the PPP mode should not
be difficult.
2.1.2 Economic
An extensive secondary research was carried out in order to determine the impact of economic factors
on development of Thankassery port. The economic analysis aims at covering the following two
dimensions in a nutshell:
Economic trends in India

Sectors and industries in Kerala
Indias gross domestic product (GDP) expanded 7.9 per cent in the second quarter of 2009-10 fiscal, up
from 6.1 per cent in the first quarter. The government is optimistic about the spurt in GDP growth and
views the figures as further confirmation of the economys recovery. Further, the Organization for
Economic Co-operation and Development (OECD) has forecasted GDP growth for India at 7.3 percent
and 7.6 per cent in 2010 and 2011 respectively. Real GDP growth is forecast to average around 6% for
the next nearly 20 years, making India one of the fastest-growing economies in the world.
Keralas economic performance is driven by the secondary and tertiary sectors. The states GDP grew at
a compounded annual growth rate (CAGR) of ~ 12 per cent between 1999-00 and 2008-09 to reach US$
40.5 billion3. Driven by manufacturing, construction, electricity, gas and water, the secondary sector has
been the fastest growing sector, at a CAGR of around 14.5 per cent. The per capita income of Kerala was
US$ 1,040 in 2007-08, as compared to all-India average of US$ 850.
The tertiary sector, the largest contributor to Keralas economy, grew at a rate of 12.5 per cent in 200708, over 2006-07. The sector was driven by trade, hotels, real estate, transport and communications.
2.1.3 Social
The socio-cultural setup plays a pivotal role in determining the future business potential of a proposed
venture and port development is no exception. Given the current state of affairs and future growth
potential of South Malabar region, port development activities would provide the necessary impetus for
development of trade and industry in the region.
Investor perception, is no doubt improving with time, but needs to be nurtured by organizing regular
workshops with a view to facilitate interaction and exchange of thoughts between different stakeholder
groups. Certain section of the fishing community in the Thankassery region expressed concern on
sharing of the waters with a port. Hence, efforts will have to be focused on moulding community
opinion & getting the locals to support port development. On the other hand, perception of local units
in cashew & seafood processing has been extremely encouraging. All these factors were identified while
conducting the primary research and stakeholder analysis.
Kerala State - Budget in Brief 2009-10
Page 18 of 158
2.1.4 Technological
As the world economies come closer with globalization, ports are being increasingly cast as partners in
assisting customers to compete for business share in the global market. Advancements in port
technology, particularly relating to containerization and information exchange, are warranting the need
for major financial commitments to stay ahead of the technology wave. In India all the major ports and
airports are being linked to the centralized Electronic Data Interchange (EDI).
Cochin is the first port to have successfully launched the concept of ePort, which essentially integrates
the ports operational, financial, real estate, & human resources on an integrated Port Information
system. It also ensures a single window facility to trade for filing out application, receiving service bills,
payments & enquiries. Once fully functional, ePort will provide interface between customs, port users,
banks, and port community system of all India Ports Association.
A late entry in a competitive setup implies immense potential to incorporate the best and latest of
technology in their proposed operational set-up, without worrying about the compatibility with the
legacy systems. Upcoming ports like Thankassery can draw on this opportunity by providing advanced
technologies like Global Positioning System (GPS), Warehouse Management System (WMS), Radio
frequency identification (RFID), and thereby gain competitive edge over the operational ones.
2.1.5 Legal and Regulatory

Regulation in infrastructure, be it maritime / ports or any other area, must be aimed at achieving
inclusive growth. Nationwide, some of the commonly faced regulatory hurdles in maritime and logistics
space can be broadly grouped as under
Customs
1. Outdated customs formalities including documentation causing huge delays
2. Complex / unclear rules & regulations leaving interpretation to the discretion of Customs
officials
Taxation / Bureaucracy
1. Multiple taxes render Indian shipping internationally uncompetitive
2. Involvement of multiple agencies such as Commerce Ministry for ICD/CFS/SEZ, rail ministry for
private rail terminals, Ministry of Surface Transport for Roads, & Shipping Ministry for Ports /
Shipping leading to cost overruns, inconvenience & delay
3. Applicability of multiple acts such as Railway Act, Merchant Shipping Act, Indian Ports Act,
MMTG Act rendering compliance cumbersome as regards multi-modal operations
Intervention at the Central level is indispensable in getting these issues resolved. However, proactiveness & commitment of State Maritime Boards / Port departments can go a long way in helping the
sector sail through regulatory hurdles. Gujarats success in developing a good port sector was also
possible due to phased privatization followed by fully private ports.
Page 19 of 158
2.1.6 Environmental
Keralas coastal stretch is characterized by the presence of lagoons, kayals, estuaries and coastal dunes.
It also has a rich biodiversity and is home to many exotic species of birds, animal and plants.
Any developmental activities along the coast may pose a threat to the environment in form of soil
erosion, pollution, salt-water intrusion, etc and this can adversely impact the regions biodiversity.
Hence, environment assumes a very high significance for developmental projects including ports and
airports.
A Rapid Environmental Impact Assessment (REIA) has been conducted by DTTIPL through its technical
associate, Centre for Environment and Development (CED) to diagnose the future likely impact of port
development on various aspects of environment. The summarized findings of the same have been
indicated in section 4.8.
2.2 SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. The SWOT analysis facilitates a
thorough investigation into the ports internal & external factors and helps set a blueprint for further
development action.
2.2.1 Strengths
Kollam has been enjoying commercial and trading reputation since ancient times. The Thankassery port
is known to have attracted Arabs, Portuguese, Greeks, Chinese and British for trading. Also, Keralas
cashew-nut industry is centered here. To begin with, this can ensure minimum regular volumes of
cashew cargo for the port. Sooner or later, port development will trigger growth of cashew industry,
leading to substantial cargo volumes over the longer horizon.
Based on the foresight that infrastructure development is the prime mover for industrial development,
the State Government developed existing port facilities that would provide the private developer a
ready-made infrastructure set-up to commence operations from Day 1. A 116 m long wharf and a 6.3 m
deep draft are currently available at the port. The designed draft of 10 m will enable the port to handle
vessels up to 15,000 20,000 DWT.
Again, the Port is a protected harbour and conducive for all-weather operations. It is outside the normal
path of tropical cyclones and can therefore be regarded as a Safe Port. It has had no history of anchor
dragging even in foul weather.
2.2.2 Weaknesses
Narrow approach roads to the jetty have been a hindrance so far. Nevertheless, work is in progress to
broaden it to a four lane road connecting NH-47. Coastal road from Thankassery to Vadi is also
underway. Seafood exporters further suggest widening of existing 5 m wide road between Thankassery
and Neendakara. Labour related issues is a concern at Thankassery port, but can be managed.
Page 20 of 158
2.2.3 Opportunities
Besides being able to handle exports of a variety of items including processed minerals, cashew, and
marine products from the region,
Thankassery has the potential to
cater to a booming coastal trade.
If rail connectivity to Tamil Nadu
hinterland is enhanced, it will enable
the port to also cater to the
industrial belt of Madurai / Theni.
Further, development of
Vallarpadam & envisaged Vizhinjam
International Container Terminals
(ICTs) will boost the possibility of
feeder services from Thankassery to
these locations.
With the State Government support
& initiatives headed in the right
direction, the port development is
likely to sail through without much
difficulty.
Figure 1 : SWOT analysis of Thankassery port
2.2.4 Threats
Although the overall picture is quite encouraging, alternative modes of transport such as rail / road and
other potentially competing ports & their relative locational advantages pose a threat to the proposed
port at Thankassery. Primarily, it is the ability to attract a good private developer that can hold the port
in good stead and help it to develop a competitive advantage over time.
Initially a minor port, Tuticorin today has captured a significant market share & has flourished over the
past more than two decades. It caters to some portion of Kerala cargo in addition to the cargo having
origin / destination in Tamil Nadu & other states. Not only does Tuticorin port share some part of
Thankassery ports secondary hinterland, but some Kerala based EXIM players also prefer Tuticorin port
for operations.
Ports & shipping has been one of the severely affected industries during the recession. Although cargo
outlook in the medium to long term looks favorable, private players would continue to face several
challenges.
Page 21 of 158
3. Traffic assessment
3.1 Approach to the traffic study
There has been no exhaustive past cargo trends recorded from Thankassery port. Accordingly, to
determine the type of infrastructure facilities (off-shore and on-shore) that would be needed to be
developed at the port, it was essential to understand the nature of commodities and their indicative
quantum that might call on the Thankassery port. This necessitated the need of a comprehensive traffic
study.
Cargo traffic based on Origin-Destination (OD) analysis , with contribution and share of Kollam and
adjoining districts including Pathanamthitta, Thiruvanthapuram, part of Alappuzha, Kottayam, Idukki
and the bordering districts of Tamil Nadu was undertaken.
The likely open cargo that would be routed through the port of Thankassery has been considered based
on the following Primary survey in the areas identified as hinterlands (cargo belts) to obtain insights from the
stakeholders on Assessment of the EXIM commodities in the identified hinterland
Topography and connectivity issues that may impede / hasten the cargo flow through
Thankassery port
Acceptability of the relevant stakeholders ( shippers) on diverting their cargo to Thankassery port
The indicative cost savings
Distance of the cargo belts to Thankassery port vis--vis the other existing and upcoming ports in
the region
Identification of such open cargo in terms of commodities and their indicative quantum
Forecasting of cargo growth and traffic based on the commodity profiles and growth potential for
EXIM trade / coastal shipping that reflects the above ground realities.
3.2 Hinterland mapping

The competitive position of a port is largely dependent upon the quality and reach of its hinterland
connections. In order to identify the different market segments, the entire hinterland has been divided
into different cargo belts.
Cargo belts are defined as discrete geographical areas which can be identified with a particular set of
commodities i.e. containers, bulk and break bulk generated from these areas and which have a
reasonable share in Export Import (EXIM) trade from the hinterland.
Page 22 of 158
Based on this classification, the entire hinterland for Thankassery port has been divided into two major
cargo belts. For the purpose of this report, the primary hinterland has been treated as the districts of
Kerala adjoining to the Thankassery port and the secondary hinterland as the border districts of Tamil
Nadu. The cargo belts identified based on the above assumptions are as follows:
Primary hinterland
Kollam
Pathanamthitta
Thiruvanthapuram
Secondary hinterland
Kanyakumari
Theni
Madurai
Parts of
Alappuzha,
Kottayam and
Idukki
Table 1: Regions in the primary and secondary hinterland
Figure 2 : Indicative primary hinterland for

Thankassery Port
Virudunagar
Tirunelveli
Figure 3 : Indicative secondary hinterland for

Thankassery Port
In order to determine the potential of each cargo belt, a desk based research was undertaken initially.
Subsequently, various stakeholders were identified, shortlisted and contacted for detailed interaction.
Accordingly, all the relevant stakeholders concerned with a Gateway Port were contacted and these
included Major industries,
Coastal shipping companies,
Customs house agents,
Commodity boards,
Trade associations,
Regional export promotion trade bodies,
Commodity export promotion body,
Customs officials,
District Industries Centre,
Page 23 of 158
Logistics service providers including inland container depots, container freight stations.
A judicious combination of structured as well as unstructured questionnaires were administered by the

survey team in order to obtain a better understanding of the cargo flow pattern of various commodities
in and out of the respective hinterland. More than 150 stakeholders from the referred sectors were
covered across the primary and secondary hinterland region and the details of the same are enclosed as
Annexure 1. The indicative profile of the cargo commodities considered as per the inputs obtained
during the primary survey is indicated in the table below. In addition to the EXIM cargo, the coastal
cargo movement pre-dominantly between Gujarat and South Kerala has also been taken into account.
Cargo belts
Primary
Secondary
Commodities considered
1. Cashew nuts,
2. Cashew kernels,
3. Cashew nut shell liquid,
4. Seafood,
5. Clay,
6. Timber logs,
7. Sillamanite,
8. Titanium-di-oxide,
9. Marbles / tiles,
10. Blood bags,
11. Sand,
12. Newsprint / waste paper,
13. Equipment / raw materials
14. Cement
15. Finished fertilizers (Urea & Muriate of Potash)
1. Marbles / tiles,
2. Timber logs,
3. Rubber,
4. Food & agri products,
5. Cement
Table 2: Cargo profile of the primary and secondary hinterland

Note The hinterland analysis was achieved based on the information obtained from the respondents
contacted in the primary survey. While the overall cargo traffic at respective major ports is available
from secondary research, the individual district wise cargo flow of the state of Kerala is not readily
available on secondary domain. To gauge the indicative traffic that would be expected from a particular
hinterland and their willingness to divert the cargo to an alternate port required the inputs from the
relevant stakeholders from the region.
Page 24 of 158
3.3 Primary hinterland analysis

Considering the distances between the primary hinterland districts & Thankassery (Kollam) / Cochin
ports, it is quite justifiable that cargo meant for / originating from Alleppey, Kottayam, & Idukki would
be more or less tied to Cochin port or to the cargo harbour of Alappuzha ( once it is commissioned).
Hinterland districts
Kollam
Cochin
Alleppey
77 km
57 km
Kottayam
86 km
72 km
Idukki
238 km
132 km
Pathanamthitta
64 km
131 km
Trivandrum
61 km
194 km
Table 3: Indicative road distances between the identified primary cargo belts and gateway ports
Source: http://www.mapxl.com/highway-path-finder/map_routing.phtml?config=routing
Possible cargo from the districts of Kottayam & Idukki has also been considered in calculating the likely
open cargo for Thankassery port. Most hinterland cargo is in containerized format. Marine food
exporters and log importers seem to use FEU reefer and FEU4 normal containers respectively.
3.3.1 General observations based on the primary survey

The observations are based on the discussions from the various respondents contacted about the future
potential of Thankassery port
All respondent cashew & sea food exporters at Kollam were very much in favour of port
development & anticipated almost 100% diversion of their cargo to Thankassery. To the extent to
which Kollam based cashew exporters have units in Tamil Nadu, exports would be tied to Tuticorin
port.
Significant coastal movement (around 2,100 TEUs per month) between ports of Gujarat to Cochin
with almost 25% of the cargo meant for the primary cargo belt region.
Kottayam Port / ICD is being marketed in terms of having connectivity to Cochin port by way of
inland waterways. It also caters to the landlocked districts of Kottayam, Idukki & Pathanamthitta.
This could further mean a portion of Pathanamthitta cargo being moved to Cochin via Kottayam ICD,
and therefore a possibility of diversion of lesser cargo to Thankassery port.
Generally, the EXIM players seem to be comfortable with Cochin port. Labour strikes and
disturbances seem to be the only problem faced. In such instances or at times when the orders are
on the higher side or at the insistence of the buyer, they use Tuticorin port. Chennai port is rarely
used.
The logs are imported both in bulk and in FEU containers depending on the importers requirement. Those brought in FEUs
are however transported to their inland destination by removing the logs from the containers at the timber storage yard and
routing it to the importer in trailers in loose / bulk basis.
Page 25 of 158
Shipping companies, logistics players have indicated that Thankassery can easily expect around
2,000 to 4,000 containers per month , subject to the port charges, vessel related charges (pilot age, tug etc), ground rent charges , THC should be
almost half of that charged by Cochin port
Storage free time should be more than Cochin port
3.4 Indicative traffic of the primary hinterland and

potential open cargo
The potential open cargo for Thankassery port for the hinterland has been analyzed based on the district
wise commodity flow and the coastal cargo. The analysis of the potential open cargo has been analyzed
in the subsequent sections.
3.4.1 Open cargo from Kollam district

The potential open cargo from Kollam district for the base year 2009 has been indicated in Table 4 based
on the following analysis 1. Raw cashew nuts - The import of raw cashew nuts into India rose from 2.49 lakh tonnes in 2000-01
to a 6.05 lakh tonnes in 2008-09, showing a CAGR growth rate of around 11%. The lion share of
imported raw cashew (upto 60%) was utilized by processing units in Kerala. The imports of cashew
nuts in Kerala from Cochin port has increased from 2.9 lakh tons in 2003-04 to 3.72 lakhs in 2007-08.
Almost 80-90% of imported cashews is routed to Kollam and adjoining areas. Accordingly taking
80% of the import to Kollam, we have - 3.72 lakhs x 80% = 2.97 lakh tons (18,600 TEUs). CHAs are
also of the opinion that annual imports of raw cashew nuts at Thankassery could range around
17,000 TEUs.
2. Equipment - Import containers for raw materials, etc. other than major cargo items & Less than
Container Load (LCL) equipment cargo are assumed to total up to 100 annually. We have divided
this equally among Kollam & Thiruvanthapuram. i.e., approx. 50 TEUs p.a. each.
3. Cashew kernels - The total exports of Kollam / Pathanamthitta units (obtained as a percentage of
the total exports from India and data provided from The Cashew Export Promotion Council) is to the
tune of around 60,000 tons. Assuming the proportion of usage of Cochin & Tuticorin ports as 99:1,
we arrive at 59,400 tons or 3,960 TEUs for Cochin. We can safely assume that cashew cargo would
be tied to Kollam, in which case the likely quantum at Kollam for base year would be around 3,960
TEUs. The figure also matches with the actual figures indicated by Seaway Shipping ( 300 TEUs per
month i.e. around 3,600 TEUs per annum) and the minimum possible cargo predicted by one of the
leading CHAs in the region, Jai Narayana Shipping.
4. Frozen Marine Foods - Total number of seafood containers from Kollam as per primary survey is
around 1,260 numbers of TEUs.
5. Titanium di-oxide & Sillimanite: These represent the minimum annual export quantities of Kerala
Minerals & Metals Ltd (KMML) and Indian Rare Earths, Chavara respectively.
Page 26 of 158
6. Cashew nut shell liquid: Aggregate of quantities currently being exported by Kollam units, as sourced
from (Cashew Export Promotion Council) CEPC website is given below:
Import Commodity
Annual Qty in tons
Annual Qty in TEUs
297,600
18,600
500
50
298,100
18,650
Annual Qty in tons
Annual Qty in TEUs
Cashew Kernels
59,400
3,832
Frozen Marine Foods
15,120
1,260
7,200
400
400
18
6,500
325
88,620
5,835
386,720
24,485
Raw Cashew Nuts

Equipment
(A)
Export Commodity
Titanium di-oxide
Sillimanite
Cashew nut shell liquid
(B)
Total [(A) + (B)]
Table 4: Potential open cargo from Kollam district
3.4.2 Open cargo from Thiruvanthapuram district

The potential open cargo from Thiruvanthapuram district for the base year 2009 has been indicated in
Table 5 based on the following analysis 1. Equipment & Raw materials: As already indicated in the point number 2 of Kollam cargo
calculations; Import containers for raw materials other than major cargo items & LCL equipment are
assumed to total up to 100 annually and dividing this equally among Kollam & Thiruvanthapuram,
we obtain around 50 TEUs p.a. for the region of Thiruvanthapuram.
2. Blood bags: The quantum of blood bags is expressed in terms of cartons & not tons. It is a company
specific quantity (requirement of Terumo Penpol)
3. Clay & Titanium di-oxide: They represent the likely cargo quantities for English India Clays &
Travancore Titanium Products Ltd respectively.
Import Commodity
Equipment & Raw materials
(A)
Export Commodity
Blood bags
Clay
Titanium di-oxide
(B)
Page 27 of 158
Annual Qty in tonnes

500
Annual Qty in
tonnes
740
10,000
1,980
12,720
Annual Qty in
TEUs
50
50
Annual Qty in
TEUs
148
667
110
925
Total [(A) + (B)]
13,220
975
Table 5 : Potential open cargo from Thiruvanthapuram District
3.4.3 Open cargo from Idukki district

The potential open cargo from Idukki district for the base year 2009 has been indicated in Table 6
Particulars
Processed
Black
Spice Oils &
Total
Cardamom
Pepper
Oleoresins
Item wise exports through Cochin Port in MT
Export from Cochin and originating from
Kerala
% of export cargo origination from Idukki
district
Quantity of export item from Idukki district
Quantity in TEUs
Open cargo %
Open Cargo in tons
Total Open Cargo in TEUs
Table 6 : Potential open cargo from Idukki District
243
231
26,371
25,052
90%
70%
208
14
10%
21
1
17,537
1,169
10%
1754
117
5,802
5,512
32,416
30,795
50% 2,756
138
10%
276
14
20,501
1,321
10%
2050
132
Working notes for Table 6

1. Item wise exports through Cochin port have been obtained by averaging figures for last two years
2. 95% of Cochin exports of the above spice items are assumed to be originating from Kerala
3. Idukkis contribution to Keralas exports of processed cardamom, black pepper and spice oils /
oleoresins is assumed as 90%, 70%, & 50% respectively
4. Taking percentage of open cargo for Kollam as 10%, we arrive at a total annual figure of 132 TEUs
5. Tea cargo from Idukki would be tied to Cochin & Tuticorin ports. Regardless of where tea is grown
(indicated by existence of tea estates), tea will be exported either from Cochin or from Tuticorin
ports. It is not directly exported even by bigger players like Harrisons Malayalam & AVT, but is sold
out at auction. Although ports may develop at several places along Kerala coast, it will not be
feasible to have a Tea exchange set up at such small locations (at present, tea exchanges are in
Coimbatore, Cochin & Coonoor)
3.4.4 Open cargo from Kottayam district (Rubber)

For Kottayam district, rubber related EXIM cargo has been considered and the calculation of such a
possible open cargo has been indicated in the Table 7 below. The approach for arriving at the workings
has been indicated in the working note after the Table:
Particulars
Page 28 of 158
1
Export
( Natural
rubber)
2
Exports
(Reclaimed
rubber)
3
Imports
( Natural
rubber)
4
Imports
(Synthetic
rubber)
Total
Particulars
Item wise Annual EXIM

through Cochin Port in
tonnes
EXIM from Cochin and
origin / destination in
Kerala
% of export cargo
origination from
Kottayam district / import
cargo landing in the
hinterland districts
Quantity of EXIM cargo
from / to Kottayam &
other hinterland districts
Quantity in TEUs
Open Cargo % for
Thankassery Port
Open Cargo in tonnes
1
Export
( Natural
rubber)
2
Exports
(Reclaimed
rubber)
3
Imports
( Natural
rubber)
4
Imports
(Synthetic
rubber)
Total
46,926
4,317
5,037
NA
NA
46,472
4,317
4,381
37,184
92,354
55%
55%
39%
55%
25,604
2,374
1,709
20,451
50,138
1,348
5%
125
5%
90
26%
1,076
5%
2,639
-
1,280
119
444
1,023
2,866
23
54
150
Total open cargo in TEUs

67
6
(max)
Table 7 : Potential open rubber based cargo from Kottayam district
Working notes 1. In the table, in column number(1) , the total of party wise figures for 2008-09 obtained from Rubber
Board is assumed to be quantum of natural rubber exported from Cochin port. The quantum of
Cochin bound rubber cargo originating from Kerala is arrived at by excluding rubber exports by
parties based out of Kerala from the above.
2. Number of district wise manufacturing units is not available. Again district wise production isnt a
justifiable basis for apportionment. Hence in (1) above, percentage of rubber cargo generation
(55%) from Kottayam has been derived based on available data i.e., Kottayam vis--vis Kerala. This
percentage is assumed in (2) & (4) also.
3. In (1) above, going by the factory locations of parties, natural rubber exports is to the tune of 25,604
tonnes are assumed to originate from Kottayam based units.
4. In (2) above, Keralas export of reclaimed rubber has been calculated by applying the proportion of
Kerala based manufacturing units vis--vis all India units to countrys total exports of reclaimed
rubber.
Page 29 of 158
5. In (4) above, Keralas import of synthetic rubber is calculated by applying the proportion of states
relative share in national consumption to countrys total synthetic rubber imports.
6. We have assumed 5% diversion of Kottayam cargo to Thankassery for all types of rubber. The only
exception is made to imports of natural rubber [In (3) above]. Since district wise number of dealers
& total dealers of natural rubber in Kerala are available, we have considered natural rubber imports
only by districts in the immediate hinterland i.e., Kollam, Pathanamthitta & Trivandrum (i.e., 39%
share of Kerala imports). Based on the percentage of rubber dealers in the districts of Kollam,
Pathanamthitta & Trivandrum which comes to around 26%, we are assuming an identical
percentage diversion of cargo to Thankassery.
3.4.5 Open cargo from Pathanamthita district

Pathanamthitta is considered as an industrially backward district. At the most, some spice cargo can be
expected to come from here to Thankassery port. Few spice exporters are also based out of Kottayam.
As per primary sources, these districts could collectively account for approximately 10-15% of Keralas
pepper exports. Applying a median rate of 12.5% to Keralas pepper exports of around 27,500 MT, we
get 3,437.5 MT. Assuming 25% of this to be open cargo for Thankassery port , we get 859 tonnes or
around 60 TEUs per annum.
3.4.6 Coastal cargo movement between Gujarat and Kerala.

Marbles /tiles / ceramics
Kerala being pre-dominantly a consumer state, there is significant cargo movement from the Northern
states to Kerala including marbles / granites. The movement of the same is in containerized format and
each TEU has a capacity of 28 tons. Based on the interactions with the coastal shipping companies it is
estimated that Thankassery may handle around 270 TEUs of marble / granite per month.
For handling the marble containers, a higher capacity material handling equipment would be required.
This would lead to additional investments to the tune of almost 70-80%, which would not seem prudent
when, for handling almost 95% of the identified containerized cargo; a material handling equipment of
lesser capacity would suffice. Accordingly to keep the capital cost of the project to a reasonable value
thereby facilitating a better probability of making the project feasible, the marbles / granites commodity
have been excluded from the potential cargo possibility at Thankassery.
Clay powder
English India Clays has a coastal movement from Cochin to Mundra meant for domestic consumption for
the NCR region to the tune of around 2,000 TEUs (30,000 tonnes) per annum.
Sand
Sand is moved through the coastal route from Gujarat. In this regards, an existing shipping agent
confirmed employing Thankassery port for coastal movement of sand from Gujarat. The quantum of
sand indicated is around 72,000 tonnes per annum (parcel size of 6,000 tonnes and one shipment per
month).
Page 30 of 158
Cement
Based on the interactions with a leading cement manufacturing company ( Ultra Tech Cement) which
has its plant in Gujarat, there does exist a strong possibility of Thankassery port being used as a
shipment and distribution point for South Kerala. The company has expressed its interest and based on
the response shown by the cement manufacturer, around 0.6 million tons has been considered. The
same has been considered based on the market side demand. In addition to Ultra Tech Cement,
another cement entity (Mehta Group)which has its base in Gujarat had approached DoP ( after the
submission of the draft DFR) with an expression of interest to use the port of Thankassery as its gateway
port in Kerala for its cement distribution. Accordingly the same has also been considered in the traffic
estimates in this report ( to the tune of around 5 lakh tons per annum)
3.4.7 Other import cargo

A study was also undertaken on the cargo imported by companies located in the districts of Kollam and
Trivandrum, which uses Tuticorin as the port of call. A dominant section of the imported cargo was logs
and newsprint / waste paper.
Newsprint / waste paper
Companies importing newsprint / waste paper, do so in TEUs as well as in FEUs. Most of these units are
based out of Kollam , Trivandrum district and import the cargo from Tuticorin. These companies so
contacted indicated that the import consignment is transshipped from Colombo to Tuticorin from where
it comes via road to their units and were open to Thankassery port, once it is commissioned. The
average annual imports of newsprint from Tuticorin for the past two years were 180 TEUs and 130 FEUs.
Timber logs
With regards to timber logs, the same are imported through Tuticorin port in bulk and also in FEUs.
Imports of timber logs originate from the countries of West Africa, New Zealand, Burma, Indonesia, and
South America. Only imports from South America are through FEU containers, while the other countries
are sending their consignment in bulk. However the logs imported through containers are offloaded at
the timber storage yard near the port and the same is then dispatched to the consignee on truck. Hence
for arriving at the quantum of timber imports, the same is expressed in tonnes.
In Kerala, the major timber units are based in Trivandrum, Kollam and Pathanamthitta. The orders for
the timber logs are placed through indenting agents based in Tuticorin. On interaction with these
indenting agencies viz Hari & Co, Prabhat Saw Mills, it was mentioned that Kerala importers preferred
Burma teak and around 2-3 vessels of timber meant for importers in Kerala call on every month in
Tuticorin. The quantum of cargo of these Kerala importers is around 10,000 tons per month from
Tuticorin. The quantum of timber cargo meant for the importers based in Kollam and Trivandrum is to
the extent of 4,000 tons.
The Kerala timber importers when contacted expressed their intention on using Thankassery port, since
it would save the inland road transportation cost from Tuticorin to Kerala. However they have indicated
the following factors that needs to be addressed in the event timber logs are being imported from
Thankassery port
Page 31 of 158
Handling of timber logs requires specialized equipment and technical skills. Tuticorin has these
resources at their disposal, which in turn attracts the timber importers. The same should be
available at Thankassery port
After the timber is brought in the port, it is stored in the timber yards, before it is dispatched to the
importer through lorry. Storage of timber requires huge space and a minimum area of 10 acres
would be required for the storage of timber logs at Thankassery port.
The inland transportation of timber is through long axle trailers and the roads connecting the port
should be adequately equipped for the same.
The logs are usually bought in vessels which have a draft requirement of around 10 m, which should
be made available at Thankassery port.
In the event the above factors are addressed, the timber importers based in Kollam and Tuticorin would
be willing to divert their cargo to the extent of around 48,000 tons through Thankassery port.
Finished fertilizers
Aspinwall which acts as the principal shipping agent for FACT and Indian Potash Ltd have indicated that
for the import of finished fertilizers (Urea and Muriate of Potash), Thankassery port can be utilized.
Presently there is an import movement of finished fertilizers (Urea and Muriate of Potash (MoP)) to the
tune of around 1,00,000 to 1,50,000 tons per annum. The same is imported by FACT and Indian Potash
Ltd and repacked (without any processing) and distributed to the farmers in South Kerala.
3.5 Total potential open cargo for Thankassery port from

primary hinterland
The total indicative open cargo based on the district, coastal and import quantities derived from 3.4.1 to
3.4.7 above for Thankassery port is indicated below Description
Primary
Hinterland (
Kerala)
Container Traffic
Kollam
Thiruvanthapuram
Idukki &
Pathanamthitha
Kottayam
Coastal movement (
Clay)
Import cargo
( newsprint /
wastepaper)
Coastal movement (
Cement)
Coastal movement (
sand)
Page 32 of 158
In TEUs
24,485
975
192
In Tonnes
386,720
13,220
2,909
150
2,000
2,866
30,000
440
5,280
Bulk / Breakbulk Cargo

In Tonnes
1,100,000
72,000
Description
Container Traffic
In TEUs
Import cargo (
finished ferilizers Urea & Muriate of
Potash)
Import cargo
( timber logs)
Indicative open cargo from Kerala (
primary) hinterland - A
In Tonnes

In Tonnes
125,000
48,000
28,243
440,995
1,345,000
3.6 Secondary hinterland analysis

Unlike the Kerala hinterland wherein the cargo volumes are relatively limited, the identified districts of
Tamil Nadu (Kanyakumari, Tirunelveli, Virudunagar, Theni and Madurai ) which form a part of the
secondary hinterland have a comparatively higher industrialization spread and hence generate a
significant amount of cargo. The preferred port for these districts is Tuticorin given the distance and the
good roads connecting these districts to the gateway.
Distance in Kms
Town
Tuticorin port
Thankassery port
Madurai
134.49
256.11
Bodinayakkanur(Theni)
223.23
215.69
Tirunelveli
54.97
163.85
Virudhunagar
155.32
261.76
Kanyakumari
122.79
143.36
Table 8: Indicative road distances between the identified secondary cargo belts and gateway ports
Source : http://www.mapxl.com/highway-path-finder/map_routing.phtml?config=routing
However considering the relative distance of some of the major cargo generators within these districts
specially Shencottai and Nagercoil, which is at a distance of 92 kms and 136 kms from Thankassery ,
there does arise a case of possibility of diversion of the cargo from the identified secondary hinterland.
Accordingly to ascertain the hypothesis, a comprehensive primary survey was also undertaken amongst
the identified districts in the secondary hinterland.
3.6.1 General observations based on the primary survey

The observations are based on the discussions from the various respondents contacted
The states of Tamil Nadu and Kerala are separated by mountainous terrain which might increase the
cost of road transportation for the shippers in the event of them using the Thankassery port.
Page 33 of 158
It was however indicated by the respondents that Kanyakumari district especially Nagercoil and
bordering areas of Tirunelveli can form part of the Thankassery port hinterland since the distance of
these locations to Thankassery is slightly less than that to Tuticorin.
There is a general perceived apprehensiveness among companies in Tamil Nadu to use Kerala ports,
due to issues like labour strikes, additional formalities, transportation issues, language problems,
taxes etc.
Tuticorin is majorly a feeder port and cargo is transshipped from Tuticorin port to Colombo port for
export to international destinations. Of late, even mother vessels have been calling at Tuticorin port
but the frequency is less. Unless there are mother vessels berthing at the proposed Thankassery
port and that too at frequent intervals, it is unlikely that companies in the secondary cargo belts
would change their port preference.
Some of the respondents have their own warehouses in Tuticorin and shifting to any other port
would mean they have to invest again in building new warehouses. It would an added cost and their
existing investment would be made redundant
Certain respondents have indicated that they would be willing to shift to Thankassery port only if
port charges are lower as compared to other ports and their CHAs operate out of Thankassery port.
3.6.2 Profile of EXIM commodities

The port of call from the secondary hinterland is presently Tuticorin. The important commodities
exported from the region through Tuticorin port is indicated below:
Sr
No
Districts
Export Commodities
1.
Madurai
Textiles, cotton yarn, fabrics, garments, terry towels, granite slabs,

made-ups, food products, tyres, coir products, etc
2.
Tirunelveli
Garnet sand, garnet abrasives, Gherkins, cotton yarn, dry flowers,

coir products, etc.
3.
Theni
Coir products , coir pith, cotton yarn, fabrics, coffee, etc.
4.
Virudhunagar
Safety matches, cotton yarn, fabrics, polypropylene bags, spices, dry

chillies, stationery items, printed books, etc.
5.
Kanyakumari
Coir pith blocks and coir products, sands & minerals, rubber/latex
gloves, sea food, Fish nets, cashew kernels, etc.
6.
Dindigul
Textiles, granites, gherkins, paper
Table 9: Export commodities from Tamil Nadu hinterland
Page 34 of 158
The imports in these districts consists of Timber logs, marbles, raw cotton, metal scrap, waste paper,
machinery, chemicals, pulses, spices, raw cashews, maize, sugar, industrial coal, limestone, cement, PP
granules, etc.
3.6.3 EXIM traffic of the secondary hinterland and potential open cargo
To arrive at the likely open cargo that might be deviated towards the proposed port of Thankassery from
the identified secondary hinterland, a drill-down concept was used.
Since the port of choice for the companies and industries situated in the districts of Madurai, Theni,
Tirunelveli, Virudunagar, Dindigul & Kanyakumari is Tuticorin port, the amount of cargo through handled
at Tuticorin port from these districts was considered. The calculation of open cargo for Kollam was
based on the cargo that might be diverted to Thankassery port derived on the distance / cost advantage.
A significant portion (40-50%) of the cargo handled at Tuticorin port is from the Coimbatore-TirupurKarur belt. With regards to the identified secondary cargo belts, the district of Madurai contributes
around 7-8% of the cargo handled at Tuticorin port and the other districts of Tirunelveli, Theni, Dindigul,
Virudunagar and Kanyakumari contribute to 2-3% of the port traffic taking the total cargo contribution
from the identified secondary hinterland to around 20-25%.
The exercise for identification and obtaining the baseline traffic that might be diverted to Thankassery
was undertaken in two phases. The first phase involved obtaining an overview of the respective
districts, identification of the major exporters and importers in the districts and communicating with
certain exporters and importers identified to obtain an understanding of the nature of EXIM trade in the
districts, their port of choice, etc.
The second phase involved procurement of established EXIM figures, detailed analysis of the statistics,
primary survey of select industries and substantiating the results to arrive at the open cargo figures for
the port of Thankassery from the districts of Madurai, Theni, Tirunelveli, Virudhunagar and
Kanyakumari. The methodology undertaken for arriving at the indicative cargo possible from Tamil
Nadu has been indicated in a step wise manner below
1. Step 1 Procurement of Export / Import statistics
We procured established export and import statistics for the districts of Madurai, Theni, Tirunelveli,
Virudhunagar and Kanyakumari for the cargo handled through Tuticorin port from a consultancy
firm based in Tuticorin. The statistics were for all commodities imported and exported through
containers and bulk & break-bulk facilities for the financial year 2006-07, 2007-08 and 2008-09 from
the port of Tuticorin.
2. Step 2 Basic analysis of the EXIM data
The process involved re-categorizing the export (5,000 line items for containers only) and import
(3,000 line items) data for the five districts into 8-10 major categories for each districts to facilitate
further analysis of data. The next step involved identification of top cargo categories and top EXIM
Page 35 of 158
players using PIVOT table functionality. The idea was to use the concept of Pareto efficiency (80/20
rule) to make the primary survey effective and efficient.
3. Step 3 Primary Survey
The primary survey involved establishing contact and one-to-one meeting with top EXIM industry
players in the districts of Madurai, Theni, Tirunelveli, Virudhunagar and Kanyakumari. The idea was
to obtain first-hand feedback from the actual port users on their priorities and choices.
4. Step 4 Detailed analysis of the feedback
This step involved quantifying the responses received during the primary survey from the EXIM
players. More importantly, the exercise involved correctly extrapolating the responses so received
to the entire population. The Sample to Total Population Multiplier was adopted for the same.
The multiplier is a numerical value which represents the ratio of the selected sample to the total
entire population. Two basic assumptions were made to correct the inherent errors of the multiplier
approach. Firstly for multiplier more than two, open cargo was taken at 50% as the sample is not
sufficiently representative of the total population. Secondly for multiplier more than five, open
cargo was taken as NIL as the sample is not representative of the total population and therefore
cannot be extrapolated to arrive at the open cargo figures.
5. Step 5 Identifying the open cargo category, baseline figures and cargo forecasts
Based on above exercise the open cargo commodities which have the possibility for being imported
and exported from the proposed port of Thankassery were identified and baseline cargo figures
were established. The EXIM players are willing to divert their cargo through the port of Thankassery,
provided they achieve cost savings by undertaking such a step.
Commodity
Food /
agricultural
products & spices
Textiles, yarns &
fabrics
Cement
Timber & wood
EXIM status
Hinterland
districts
Export
Madurai,
Kanyakumari
Export
Madurai,
Theni
Madurai
Kanyakumari,
Thirunelveli
Import
Import
Containerised baseline
open figure (base year
2008-09)
in TEUs
in Tonnes
1,160
17,400
Total
1,520
22,800
1,067
16,000
Bulk / Break
bulk
baseline
open figure
( base year
2008-09)
in Tonnes
128,000
3,747
56,200
128,000
Table 10: Potential open cargo from Tamil Nadu hinterland

The inputs received from the EXIM players (of marbles and timber logs) which has resulted in the
inclusion as a potential cargo for the port of Thankassery is indicated below:
Page 36 of 158
Timber & wood

Sengottai in Tirunelveli district is the hub of timber saw mills and is almost equidistant from the port
of Thankassery and Tuticorin.
Sengottai alone imports around 1.2 lakhs of timber logs annually.
Given the proximity of Sengottai to Thankassery (almost 92kms), the possible diversion of timber
logs has been considered.
In addition, cargo for few of the timber importers from Nagercoil has also been considered as open
cargo.
Food / agri-products & spices
This category covers variety of food and agricultural products and spices as well. The main products
are maize, corn, chillies, onions, gherkins, papads, etc.
Concord Exports contribution to total food & agricultural products and spices exports from Madurai
district was 40% during the FY 2008-09. The port of choice for the Company depends on its
suppliers. The Company can consider using Kollam port provided the suppliers are ready to deliver
the goods at Thankassery port and the overall costs are lower vis-a-vis Tuticorin port.
Hence limited cargo is expected to be diverted to Thankassery port.
Cement
The major importers of cement from Madurai are S.S.N. Trading Company, Triumph Enterprises &
Investment Pvt Ltd, all companies managed by the same group. They together import 7,000 tonnes
of the total quantum.
Most of customers for the import consignment are based in Kanyakumari district of Tamil Nadu and
in Kerala state. And therefore the importers are keen about the prospects of using the Thankassery
port for their trade.
The matter of concern though would be the terrain. The presence of ghats can hinder the
movement of 40ft containers.
Textiles, yarns and fabrics
This category of exports from Madurai and Theni districts consists of cotton yarn, garments, fabrics,
made-ups, terry towels, etc.
There was a mixed response from the exporters in this category for use of the Thankassery port.
One of the major exporters (JVS Exports), though, has shown positivity for use of the Thankassery
port if they are able to realize cost benefits and if mother vessels berth at Thankassery. They
presently incur Rs. 3,000/- per truckload for transporting their good to Tuticorin port and any option
whereby they spend a lower amount is welcome.
Exporters in Theni district are skeptical of using the Thankassery port due to the difficult terrain
which they have to encounter on way to ports in Kerala.
Hence a modest estimate has been considered for diversion to Thankassery port.
3.7 Open cargo from primary and secondary hinterland

The table depicts the summarized indicative base-line open cargo figures for the Thankassery port
arrived from the previous sections
Page 37 of 158
Description
Primary
Hinterland
( Kerala)
Container Traffic
Kollam
Thiruvanthapuram
Idukki &
Pathanamthitha
Kottayam
Coastal movement (
Clay)
Import cargo
( newsprint /
wastepaper)
Coastal movement (
Cement)
Coastal movement (
sand)
Import cargo ( finished
ferilizers - Urea &
Muriate of Potash)
Import cargo
( timber logs)
Indicative open cargo from Kerala (
primary) hinterland - A
Secondary
Export cargo
Hinterland (
Import cargo
Tamil Nadu)
Indicative open cargo from Tamil
Nadu ( secondary) hinterland - B
Total indicative open cargo from the
identified hinterland of Kerala and
Tamil Nadu ( A + B)
In TEUs
24,485
975
192
In Tonnes
386,720
13,220
2,909
150
2,000
2,866
30,000
440
5,280

In Tonnes
1,100,000
72,000
125,000
48,000
28,243
440,995
1,345,000
2,680
40,200
1,067
3,747
16,000
56,200
128,000
128,000
31,989
497,195
1,473,000
Table 11: Total open cargo from primary and secondary hinterland
The statistical validation of data to arrive at the likely estimate of traffic at Thankassery port has been
indicated in Annexure 2.
3.8 Indicative traffic projections.

In order to have a clear perception of the traffic projections, the results of the primary survey conducted
were tabulated. The tabulation was done on a drill down approach viz. the cargo was initially broadly
classified based on its origin i.e. from primary or secondary hinterland. The primary / secondary
Page 38 of 158
hinterland commodities were later further classified into import / export cargo and subsequently into
containerized and bulk / break bulk commodities. By undertaking such a drilled down approach, it would
be easy to understand the source of the cargo generation and facilitate in providing an easy overview of
the growth projections of the identified commodities.
Uniform growth rate has not been applied to the containerized cargo (for the purpose of traffic
forecasting), since each containerized commodity has its own peculiarity. In addition, the possibility of a
containerized commodity being diverted to Thankassery also depends on various regional factors and
the same has to be accounted for during the forecasting exercise.
For the determination of the projected traffic the following methodology was adopted:
As the first step the commodities identified by the process of primary survey were classified into
import / export / coastal cargo and subsequently into containerized and bulk / break bulk
commodities groups
The major factor in deciding the commodities that could be identified as cargo have already
been detailed in the previous sections.
Based on the trend analysis and the future expansion plans of the industries and the likely
increase in the development of industries, the growth rates for high, medium and low scenarios
of each of the cargo were identified. These growth rates are indicated in Annexure -3
The future growth of each commodity was analyzed based on its historical growth trends,
Central / State governments assistance towards a particular commoditys production/ exports,
regional development which may have an effect (positive / negative) on the imports of a
particular commodity, competition from existing and upcoming ports in the region, etc.
The rationale for the cargo growth for the major potential commodities is derived in Annexure -4
and the consolidated traffic projections under the low, medium and high scenario is indicated in the
subsequent sections.
Page 39 of 158
3.8.1 Low traffic scenario
Table 12: Consolidated traffic growth in tonnes ( Low growth scenario)
Table 13: Containerised traffic growth in TEUs (Low growth scenario)
Page 41 of 158
3.8.2 Medium traffic scenario
Table 14: Consolidated traffic growth in tonnes (medium growth scenario)
Page 42 of 158
Table 15: Containerised traffic growth in TEUs (medium growth scenario)
Page 43 of 158
3.8.3 High Traffic Scenario
Table 16: Consolidated traffic growth in tonnes (high growth scenario)
Page 44 of 158
Table 17: Containerised traffic growth in TEUs (high growth scenario)
Page 45 of 158
3.8.4 Summary of the traffic projections

Total traffic (both bulk and containerized) in '000 Tonnes
Low
Medium
High
2015
2,024
2,207
2,306
2020
2,215
2,718
3,073
2025
2,445
3,388
4,140
2030
2,695
4,255
5,596
2035
2,966
5,343
7,505
2040
3,275
6,806
10,281
2025
44,992
62,907
70,574
2030
50,298
77,173
89,208
2035
56,548
95,364
115,293
2040
63,773
118,300
149,651
Only containerized traffic in TEUs

Low
Medium
High
2015
37,122
43,568
44,332
2020
40,429
51,863
55,879
Based on the detailed analysis of the macro and micro economic scenarios, the medium growth scenario
has been decided as the base case for cargo. The entire port planning subsequently has been
undertaken considering the above mentioned scenario of traffic. (Please see chapter 5 on port planning
for details).
3.8.5 Comparison between total cost of transporting containers to

Cochin by road and through coastal shipping
Comparative analysis of transportation costs of containers by road to Cochin Port and likely costs
through the proposed port at Thankassery to Cochin port forms an important part of the feasibility
analysis. From a generalised cost perspective, we have considered the following broad level costs:
Inland Transport Costs
Port Charges
Sea Transport Costs
Results of the analysis along with explanatory notes have been given below.
Kollam hinterland
Sr.
No
Activity
Cochin
Port by
Road
Road freight movement

till Cochin
11,000 Road
freight
movement till Kollam
Page 46 of 158
Activity
In Rupees
Cochin port
via proposed
port at
Kollam
2,000
Sr.
No
Activity
Cochin
Port by
Road
CHA Charges / customs

clearance at Cochin Port
3
4
Terminal Handling
Charges at Cochin Port
Coastal Sea Freight
Transshipment charges
Activity
1,500 CHA
Charges
/
customs clearance at
Kollam
4,955 Terminal
Handling
Charges at Kollam
- Coastal Sea Freight
(Kollam- Cochin)
Cochin port
via proposed
port at
Kollam
1,500
2,500
4,000
- Transshipment
3,309
charges
6
Documentation charges
1,500 Documentation
1,500
charges
7
Storage charges ( if
2,000 Storage charges ( if
2,000
required)
required)
8
Total
20,955 Total
16,809
Table 18: Comparative cost of exporting One TEU from Kollam to Cochin port by Road vis-a-vis though
the proposed Thankassery (Kollam) cargo terminal
Average Road Transport Cost of a TEU from factory premises to Cochin Port obtained from industry sources. In case
of current road movement to Cochin Port, the rates mentioned are the to & fro charges incurred by the
transporters i.e. the empty container movement from container yard at Cochin Port to Kollam and the loaded
container movement from the factory at Kollam to Cochin Port. For coastal movement from Kollam-Cochin Port,
empty containers are assumed to be available in Kollam.
Total logistics cost from Kollam to Cochin Port per TEU
Rs. 20,955
Total logistics cost Kollam - Thankassery (road) and Kollam - Cochin (coastal)
Rs.16,809
Potential savings per TEU
Rs.4,146
Trivandrum hinterland
Sr.
No
Activity
Road freight movement

till Cochin

clearance at Cochin
Terminal Handling
Page 47 of 158
Cochin
Activity
Port by
Road
14,500 Road freight
movement till
Trivandrum
1,500 CHA Charges /
customs clearance at
Jaigad
4,955 Terminal Handling
Charges at Kollam
In Rupees
Cochin port
via proposed
port at Kollam
5,082
1,500
2,500
Sr.
No
Activity
Coastal Sea Freight
Transhipment charges
Storage charges ( if
required)
Total
Cochin
Port by
Road
Activity
- Coastal Sea Freight

(Kollam- Cochin)
- Transhipment
charges
1,500 Documentation
charges
2,000 Storage charges ( if
required)
24,455 Total
Cochin port
via proposed
port at Kollam
4,000
3,309
1,500
2,000
19,891
though the proposed Thankassery (Kollam) cargo terminal
Average Road Transport Cost of a TEU from factory premises to Cochin Port obtained from industry sources. In case
of current road movement to Cochin Port, the rates mentioned are the to & fro charges incurred by the
transporters i.e. the empty container movement from container yard at Cochin Port to Trivandrum and the loaded
container movement from the factory at Trivandrum to Cochin Port. For coastal movement from Kollam-Cochin
Port, empty containers are assumed to be available in Kollam.
Total logistics cost from Kollam to Cochin Port per TEU
Rs. 24,455
Total logistics cost Kollam - Thankassery (road) and Kollam - Cochin (coastal)
Rs.19,891
Rs.4,564
Coastal movement from Gujarat to Kerala
S
Sr.
No
1
Activity
Coastal shipment charges

from Mundra to Cochin

clearance at Cochin Port
Terminal Handling
4
5
6
Storage charges
Inland transportation to
Page 48 of 158
Cochin
Activity
Port by
Road
38,000 Coastal shipment
charges from Mundra
to Kollam
1,500 CHA Charges / customs
clearance at
Thankassery
4,955 Terminal Handling
Charges at
Thankassery Port
1,500 Documentation charges
2,000 Storage charges
Inland transportation
In Rupees
Cochin port
via proposed
port at Kollam
40,000
1,500
2,500
1,500
2,000
Activity
Sr.
No
Cochin
Port by
Road
Activity
Cochin port
via proposed
port at Kollam
to
6-a Trivandrum
14,500 Trivandrum
5,082
6-b Kollam
11,000 Kollam
2,000
7
Total
Total
7-a Trivandrum
62,455 Trivandrum
52,582
7-b Kollam
58,955 Kollam
49,500
though the proposed Thankassery (Kollam)
The coastal shipment charges from Gujarat to Kerala have been obtained from industry sources.
Total logistics cost per TEU from Gujarat to Trivandrum hinterland via
coastal movement through Cochin Port
Rs. 62,455
Total logistics cost per TEU from Gujarat to Trivandrum hinterland via
coastal movement through Thankassery (Kollam) Port
Rs. 52,582
Rs. 9,873
Total logistics cost per TEU from Gujarat to Kollam hinterland via coastal
movement through Cochin Port
Rs. 58,955
Total logistics cost per TEU from Gujarat to Kollam hinterland via coastal
movement through Thankassery (Kollam) Port
Rs. 49,500
Rs. 9,455
Accordingly, for EXIM related shipments which are presently moving from Kollam and Trivandrum region
to Cochin, Thankassery port can be positioned as an ideal feeder port and can save the shipper the costs
associated with the inland transportation to the tune of Rs. 4,500 per TEU. For the coastal cargo
commodities flowing from Gujarat to Kerala, Thankassery port can serve as a gateway port for the
commodities meant for Southern Kerala , which would result in an indicative savings of around Rs.
9,500/Thankassery port can hence facilitate in reducing the overall logistics cost associated with the
movement of cargo and can be positioned as a feeder / coastal port complementing the operations of
the existing ports.
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4. Site investigations
4.1 Geographical setting
Thankassery is situated in Kollam District about 70 km north of Thiruvananthapuram and 150 km south
of Kochi (Latitude of 8o 52 35 N and Longitude of 76o 34 E). The bay lying east of the Thankassery point
is the site for the Port. The comparatively deeper hydrography of the Thankassery area along with the
flourishing economic activity the old Kollam town made Thankassery an important Port along the west
coast of India in older times. The land side of the Port area is within the limits of Kollam Corporation,
which has an area of 57.31 km2 with a population of 361,441 (Census 2001) in 78,182 households.
Geographically Kollam represents a sample slice of what Kerala is. The west of Kollam is a long wide
coastline facing the Arabian Sea, while the eastern edge of Kollam district is hilly, and gradually merges
into the fringes of Western Ghats. The plane midland lies between the western coastal strip and the hilly
eastern region. Kollam town, where a large majority of the cashew manufacturing units of Kerala are
situated, is only about 7 kms away from Thankassery port.
Figure 4 : Overview of the Kollam Port area

There are two breakwater structures to facilitate port operations. The seaward breakwater is 2100
meters in length and the leeward breakwater is 500 meters. The port is also equipped with a 144 ft. light
house built in 1902. The Thankassery light house is a major tourist attraction.
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Prolific fishing activity exists in the vicinity including the east shore of the calm basin. There are two
auction houses located on the shore. There is good amount of boating / fishing near the sea shore closer
to the entrance channel also. This will necessitate development plans to accommodate the fishing
activity so that the fishing community can co-exist with port operations.
There are quite a few dwelling units on the sea shore. This area is earmarked for acquisition, which may
be possible without much of resistance as plans are afoot to shift the inhabitants to nearby apartments
as part of the Tsunami Rehabilitation Programme. The Port is outside the normal path of the tropical
cyclones and hence a Safe Port. There has been no history of anchor dragging even in foul weather.
4.2 Land
The total land available in the port complex is about 42,400 sq.m (10.6 acres), which has been utilized
for various activities and utilities as given below
Berthing area
Loading / Unloading area
Storage area
Building and utilities
Internal roads and miscellaneous areas
2064 sq.m
2990 sq.m
20,220 sq.m
629 sq.m
16,497 sq.m
4.3 Connectivity
4.3.1 Roads
The Kollam district is well connected to other parts of Kerala and India through the NH-47, NH-220 and
NH-208. The National Highway 47 covers a distance of 57.4 km in the district and is only 2kms from the
Thankassery port. The National Highways NH-208 (Kollam - Shencottai) and NH 220 (Kollam - Theni)
originate from Kollam.
Figure 5 : Kollam district road network

Source : Maps of India
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The State Highways namely, Main Central Road, Kollam-Shencottah Road and Punalur-PalaMuvattupuzha (Main Eastern Highway) with a total length of 266.52 kms also network the district. The
double-lane coastal road from Thankassery to Vadi is in progress and shall run parallel to the sea shore.
In terms of the connectivity with the Thankassery port, the following four options exists
1. From Port gate to Althnamoodu junction and which goes to Cochin
2. From Port gate to Beach and then to Trivandrum. From the beach, there is a road proposal coming
up , the road is proposed as part of the coastal road connectivity.
3. From Port gate via Kochuplamoodu junction and then to Police camp. From the Police camp Jn to
NH-47 to Trivandrum .
4. From Port gate to Kochuplamoodu junction to Chinnakada round about (which is the Main city
centre for Kollam). The road will be for Trivandrum / Cochin and Tamil Nadu via Thankasei
The detailed analysis of the road connectivity options as surveyed during the road profiling survey is
indicated in section 5.13.
4.3.2 Rail
Kollam is an important railhead of the
Southern Railways. The Kollam railway
station is considered to be one of the
biggest railway stations in Kerala state after
Shornur and Palakkad junctions. The district
is covered by 132 km of railway tracks, of
which 51 km are broad gauge and 81 km
metre gauge.
The Trivandrum-Ernakulam line, which goes
via Kottayam and Alappuzha, passes
through Kollam. Kollam is the terminal
junction of Madras-Egmore-Kollam metre
gauge line.
Figure 6 : Kollam district road network
Source : Maps of India
The metre gauge track is being converted to broad gauge under project Unigauge and is presently
closed. The new BG line is expected to open during the year. As regards the Thankassery port, the
shortest distance between Railway lane and shoreline is 1 Km. However there are lot of buildings and no
vacant land.
4.3.3 Inland waterways

Kollam is well-connected through waterways with other parts of Kerala and this stands to the advantage
of the Thankassery port. The Centre has declared the Kollam-Kottapuram stretch of West Coast Canal,
along with Champakara and Udyogmandal Canals (205 km) in Kerala, as National Waterway No 3 (NW3).
The extension of the NW3 to Kovalam and further to Colachel is under its active consideration. The
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National Waterway standard will require acquisition of land to widen the canal at some places and
dredging and rehabilitation of cross structures like bridges.
Figure 7 : The existing water canal and rail line near Thankassery port
Source: Atlas Survey Engineering System , Kollam
The detailed route profile map to the Thankassery port is enclosed as Annexure. - 5
4.3.4 Air connectivity

Kollam district at the moment does not have direct air connectivity. The Trivandrum International
Airport is the nearest airport and is approximately 65 kms away from the Thankassery port.
4.4 Topography
Laterite formations extending to the sea are noticed at the Thankassery and nearby areas
predominantly on the northern side. A shallow stretch of rocky formation extending southwards as a
groyne is also reported. In general, sand with shell contents is noticed above the hard stratum, with
slight clay content. The general topography of Kollam Corporation area is flat with a moderate slope and
the altitude varies from 0 to 10 m above Mean Sea Level (MSL). The gradually sloping terrain towards
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west favors natural drainage. The coastal plain below the 7.5 m contour and is characterized by marine
landforms of beach ridges, beaches, swamps and lagoons. The topography and the contour map of the
port area is enclosed as Annexure 6.
4.5 Bathymetry
The Hydrography department of the Government of Kerala has been conducting bathymetric surveys at
the area covering approach channel and entrance channel area including the basin inside the harbour
regularly. Based on the details available in the bathymetric charts of Oct 2007, it is found that minimum
bed level of 6.1 is available in front of the wharf, basin area, entrance channel and approach channel. A
comparison of the depths available as per 2000 chart and the charts of the earlier years reveals no
significant siltation in the operational areas .
Copy of the bathymetric chart dated 13/10/2007 is enclosed as an Annexure 7
4.6 Geo technical conditions

The borehole details made available by Harbour Engineering Department based on actual bore results at
pile locations number 3 and 15 of cargo wharf are given in Annexure 8. The summarized details are as
follows: Borehole data at Pile number 3
The bed level is at -7.50 m and the strata from sea bed for a depth of 11.0 m consists of fine sand
with very high SPT (Standard Penetration Test) N values varying from 35 to 70. The strata below top
sand layer of about 2.0 m thickness consist of sand -clay mixture.
The strata below consists of soft to medium clay with SPT (N) values varying from 4 to 10 and the
clay layer continues upto -37.00 m, with thickness of 17.00 m. The founding strata consists of white
laterite with N values in excess of 112 with thickness of about 3.00 m.
Borehole data at pile no 15

The soil stratification at pile location number 5 is almost same as that observed at pile location
number 3 with minor variation in thickness of sand / sand clay / clay layers.
4.7 Tide and wave data

4.7.1 Tides
Based on the observed details regarding tide levels, collected from the Hydrography Office at Kollam
and the secondary data , the tide levels at Kollam are expected to be as under
MHHW
MLHW
MSL
MHLW
MLLW
This is with reference to Chart Datum 00
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+1.30 m
+1.20 m
+0.90 m
+0.80 m
+0.40 m
4.7.2 Wave
The coastal waters off Thankassery are influenced by waves approaching from the North West, with
average wave heights during fair weather season (September to May) normally less than 1m.
Predominant waves during Southwest monsoon are from South West to West, 50% of which are
between 1.5m to 2.5m and 30% between 2.5m and 4.6m. With the Arabian Sea becoming rough during
monsoons, the off-shore wave heights also occasionally reach between 5m & 6m with corresponding
wave periods of 8-10 sec.
Due to the construction of break water, of 2.1 km length , the wave effect from South West direction
during monsoons will be reduced considerably and the wave height inside the harbour will be less than
0 .3 m normally and 0.5 m occasionally in extreme weather condition. Therefore near tranquil conditions
are considered inside the harbour and waves will not have any significant influence on berthing and
loading / unloading operations at the berths.
4.7.3 Currents
Since near tranquil conditions exist in the harbour, the influence of current is negligible.
4.8 Environmental data

The section below depicts an overview of the environmental site conditions. A Rapid Environmental
Impact assessment undertaken by Centre for Environment and Development, Trivandrum and the
report of their findings is enclosed as Annexure 9.
4.8.1 Physical environment

Climate
The climate of the region is tropical humid, with an oppressive summer and plentiful seasonal rainfall.
The hot season, lasting from March to May, is followed by the south west monsoon from June to
September. The north east monsoon occurs from October to November.
The rest of the year is generally dry. The average annual atmospheric temperature of the area is 27o C,
and the annual temperature range is 27.8o to 33o C as a maximum and a range of 22.3 to 26.1o C as a
minimum. The South-West monsoon provides heavy and reliable rainfall with the average annual rainfall
about 3100 mm, within an average of 115 rainy days. The monthly mean value of relative humidity
varies from 75-96% in the morning (08:30 hrs) to 65-91% in the afternoon (17:30 hrs). Winds from North
West prevail during November to January and South East winds during May to August. Excessive rain
during June to August causes frequent floods in the rivers and canals in the area, submerging low-lying
areas.
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Water environment
The major source of drinking water is through piped distribution network of Kerala Water Authority
(KWA) and from wells. The pipe network suffers from heavy leakages due to aged piping. The networks
inadequate carrying capacity coupled with instances of unauthorized connections put an unwarranted
strain on the system. The present per capita availability of water to Kollam is about 40 lpcd.
Ashtamudi Lake, the second largest wetland of Kerala recognized under Ramsar International Treaty for
Wetland Protection, is the nearest surface water source about 5 km from the Port location. It is a
brackish water lake connected to Lakshadweep Sea and the movement of water is influenced by the
tidal action.
Ground water in the Corporation area occurs under confined and semi confined conditions. The course,
porous and permeable layers of laterite form aquifer system. The main recharge to groundwater takes
place from precipitation. There are number of open wells exists around the site and these open wells
are mainly used for domestic purpose. Depth of ground water level ranges between 1.50m to 6.20m
below the ground level. The directional flow of ground water is mainly from west to east.
Air environment
The air environment of Thankassery region is very clean and pleasant because there are not many
influencing factors. The number of industries as well as that of vehicles is considerably small. It is found
that Sulphur dioxide (SO2), Oxides of Nitrogen (NOx) and Suspended Particulate Matter (SPM) levels of
the City is much below the stipulated limit.
Noise
The major source of sound pollution in the city is the vehicles and indiscriminate use of loud speakers.
The sound level was found to be below the limits prescribed for Commercial category all over the city
area. Ambient noise level in the Kollam city region is relatively higher than the limits prescribed for
residential area by the Central Pollution Control Board.
Land environment
The study area consists of mainly three land use types Residential built up land, Coconut plantations,
and areas with coconut and other mixed crops, with a few vacant lands. There are some patches of
vegetable cultivated land. Major use of urban land is classified under residential use, which includes not
only the area occupied by the houses, but also the coconut gardens around the house as well.
4.8.2 Ecological resources

Coastal environment
The 590km length Kerala coast faces the Arabian Sea. The coastline of Kerala is more or less straight
trending in NNW-SSE direction from north till the Thankassery headland near Kollam. The coastline
orientation south of Thankassery is in the NW-SE direction. The offshore continental shelf bathymetry is
steeper to the south.
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Terrestrial environment
No forest, wild life sanctuaries or other environmentally sensitive area is near to the project site and no
rare or endangered species have been reported from the region. No mangrove or wet land or turtle
nesting sites is observed at or near to the site. Cultivated plants like Cocos nucifera, Mangifera indica,
Thespesia populnea, Tamarindus indica, Artocarpus heterophyllus, Casuarina equisitifolia, etc., are very
common around the site. Although Kollam retains extensive backwater systems its wetlands have been
extensively damaged by reclamation for coconut growing and foreshore developments.
Consequently, Kollam has the lowest proportion of mangroves in the States dwindling wetland
resources. No endangered or endemic plant species were recorded in the region. The project site is not
situated within or adjacent to any cultural heritage sites, protected areas, buffer zones of protected
areas, or special areas for protecting biodiversity.
4.8.3 Socio-economic environment

The main activity in the region is fisheries and significant income is generated by fishing activities. Onethird of the State's fish catch is from Kollam region. An assessment of city economic development and
urban growth indicates a decadal population growth rate of 4.45 percent, which is lower than the
States urban population growth rate (1991-2001).
To evaluate the socio-economic aspects of the local fishing community, informal consultations were
carried out covering all the fishermen hamlets in the area. The survey results indicate that the majority
of local community strongly favors the construction of a Port. A few people expressed their
apprehensions over sharing of the resources of the fishing harbour.
Tourism
Thankassery region is aesthetically beautiful and culturally rich with few famous churches. Thankassery
is a place of historical importance situated 5 km away from Kollam town. The Churches here are pretty
old, having been established in the 18th century. The vast silent stretch of windy beach shore is an
attraction of Thankassery region. The chief attraction of the place is the light house, built in 1902. The
144 ft. light house stands as a sentinel, warning seamen of the treacherous reefs of Thankassery.
Thankassery was an enclave of the Portuguese, Dutch and British in succession and the remnants of the
Portuguese and Dutch forts still exist. The Portuguese fort is believed to be built in 1517 and only one
wall of this fort remains now. Tourists visiting Kollam are often attracted towards the beaches. The
average tourist arrivals are to the tune of 85,000 domestic tourists and 15,000 foreign tourists (Source:
District Tourism Promotion Council, Kollam).
4.8.4 Coastal Regulation Zone (CRZ)

Restrictions were imposed on developmental activities on coastal areas by introducing the Coastal
Regulation Zone Notification in 1991 under the authority of the Environment (Protection) Act 1986.
Coastal stretches of sea between the Low Tide Lines and High Tide Lines and up to 500 meters on the
landward side from High Tide line and up to 50 meters from the bank or width of the creek, river or
backwater whichever is less will come under the regulated zone. For imposing restrictions, the coastal
area is classified into four zones viz:
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1. CRZ I Areas that are ecologically sensitive and in the area between High Tide Line and Low Tide
Line;
2. CRZ II Areas that have already been developed up to or close to the shoreline;
3. CRZ III Areas that are relatively undisturbed which does not fall under CRZ I or CRZ II; and
4. CRZ IV Coastal stretches in the Andaman & Nicobar, Lakshadweep and small islands.
According to the notification, Coastal Zone Management Plan for Kerala was prepared demarcating the
Coastal Regulation Zone in the State, which was approved in 1996. Under the approved Coastal Zone
Management Plan, coastal stretches of all the Corporations of the State fall under CRZ II and
developments in CRZs require the approval of the Central / State Coastal Zone Management Authority.
4.8.5 Environmental risk assessment and management plan

Potential adverse environmental impacts during construction and operation phase were predicted
based on available information. An Environment Management Plan (EMP) aiming to minimize, and
wherever possible eliminate, the damaging effects of Port development were developed.
Sr.
No.
1.
Environmental Attributes
Project Activity
Nature of Impact
Landscape
2.
3.
Ground water resource

Water Quality
Land Reclamation
Construction work
Transportation
Civil works
Waste Disposal
Oil Leakage
4.
Air Quality
5.
Noise Quality
6.
Natural Vegetation
Transportation
Civil Works
Unpleasant Smell of fish
Dredging & Reclamation
Civil Works
Transportation
Working Phase
Site Clearing
7.
Natural Fauna
8.
Transportation
Construction works
Site clearing
Increased access for
transportation of Port
10.
Economy
Increased economic
activities
11.
Tourism
During the construction

& operational phase
Minor degradation
Minor degradation
Minor degradation
No major effect
Major impact
Major impact, but
infrequent
Temporary effect
Temporary effect
Permanent effect
Temporary impact
Temporary impact
Temporary impact
Permanent impact
Permanent impact, but not
significant
Permanent impact, minor
Permanent impact, minor
Degradation due to
emission of exhaust from
transportation vehicles and
vessels
Financial status of the local
people as well as
government will improve
Negative, but minor
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Sr.
No.
12.
Environmental Attributes
Project Activity
Nature of Impact
Employment
Positive
13.
Aesthetic
14.
Hazard

& operational phase
& operational phase
& operational phase
Will alter the scenic beauty

Chances of fire and
occupational hazards
Table 21: Project activities and its impacts

Source: Centre for Environment and Development, Trivandrum
Some of the mitigation measures planned aimed to minimize, and wherever possible eliminate, the
damaging effects of development have been indicated below:
1. Green Buffer Zones, wherever possible, should be encouraged in and around the port area.
2. Dredging and reclamation operations should be undertaken only where it can be conclusively
proved that these are required for operation purposes related to the activities permissible under
Coastal Regulation Zone Notification.
3. Best practicable technology and operating methods should be used for dredging / reclamation to
minimise adverse environmental impact.
4. Screening of the pollutants in the harbour waters should be undertaken and periodical reports and
water quality parameters should be forwarded to the concerned State Pollution Control
Board/Committee at least once in six months.
5. Some special arrangements wherever necessary for dusty cargo can be made to avoid pollution.
4.9 Utilities
4.9.1 Power
The Kallada hydroelectric station, situated in Kollam district, has the capacity to generate 15.00 MW
power. The power supply in Kollam district is facilitated through a network of substations of varying
capacities. The extensive network of sub-stations in Kollam district ensures availability of ample quality
power to the all locations in the district. The listing of the same as on 31.03.2008 is mentioned
hereunder:
Sr. No
1.
2.
3.
4.
5.
6.
7.
8.
Name of substation
Edamon
Kundara
Ambalappuram
Kavanadu
Kottarakkara
Kottiyam
Punalur
Sasthamcotta
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Voltage level
220 KV
220 KV
110 KV
110 KV
110 KV
110 KV
110 KV
110 KV
Sr. No
Name of substation
Voltage level
9.
Ayathil
66 KV
10.
Ayoor
66 KV
11.
Chavara
66 KV
12.
Karunagappally
66 KV
13.
Parippally
66 KV
14.
Pathanapuram
66 KV
15.
Chengamanadu
33 KV
16.
Ezhukone
33 KV
17.
Kadackal
33 KV
Table 22: Sub-station network in Kollam district
Source : http://www.kseboard.com/generation_frame.htm
4.9.2 Water
Water supply is the prerogative of the Kerala Water Authority. Water supply to the entire Kollam district
is met by purifying the water from the Sasthamkotta Lake. The lake is located at a distance of 30 kms
and has a capacity to hold 22390 million litres of water. It serves as the source of drinking water for half
a million people of Kollam district. The source of water is from the underground sprouts.
The Sasthamkotta Lake, is a large freshwater lake in Kerala. The lake is surrounded on three sides by
hills, and on the south side a bund separates the lake from the neighboring rice fields. The lake was
designated a wetland of international importance under the Ramsar Convention in November 2002.
4.9.3 Telecommunications
The Bharat Sanchar Nigam Limited is the major telecom facilitator in the district. The service provided
includes Basic Wired Land line telephones with all phone plus services, fixed wireless telephone,
Wireless loop with limited mobility, Cellular mobile services, intelligent network, with several services
like the India Telephone card, Electronic PABX & Telex/Telegraph services.
In addition to BSNL, Reliance Infocom also provides WLL service in the district. Cellular operators, viz.
BPL Mobile, Escotel, AirTel, etc also operate in the district.
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5. Port planning
5.1 Introduction
A port layout defines the physical location of the main facilities required to effectively handle the port
traffic. Hence flexibility should be built in for the port layout as much as possible such that the port can
accommodate future changes in the cargo and the new development opportunities.
As Thankassery port is already a planned port, the facilities created therein are evaluated on the normal
parameters of port planning and are presented here.
5.2 History of the port operations

Kollam is one of the oldest ports in the country, the history of which in all probability dates back to as
early as 8th century AD or even before. The Chinese traders were one of the oldest foreign communities
to settle in Kollam. That was the period when Kollam evolved as a major trade center (of spices) and an
important port along the Malabar coast.
Popularly referred to as Kurakkeni Kollam in classical literature, it is considered by Keralites as the
greatest boon of nature. It is outside the normal path of the tropical cyclones and hence a Safe Port.
This ancient Port was very active up to 1970. Soon, thereafter, port activities and cargo operations were
shifted to the fishing cum cargo
harbor at Neendakara. However,
thanks to the recent
development initiatives of the
Kerala Government, Kollam port
is now receiving and handling
cargo vessels, although on a very
small scale. The newlycommissioned Kollam port
received its first cargo vessel, MV
Anakuri, on June 16, 2009. It
carried sand and gravel, meant
for construction activity, from
Kollam to Male.
Figure 8 : Loading / Unloading operations for MV Anakuri
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5.3 Existing Port Facilities

The existing facilities at Kollam port include a wharf, breakwater, godowns, storage yards and other port
infrastructure like barges, forklift, tug, etc. The
wharf is 177 meters long (inclusive of the extension,
which was completed in early March 2010) and the
draft is around 6.3 meters. The entrance channel is
350 meters wide and the draft at the entrance is 11
meters. The basin area is approximately 100
hectares, with depth which varies between 4 meters
to 10 meters. The port presently has an area of 10
acres which includes two godowns of 1450 sq.mts.
each, a concrete yard with an area of 16000 sq.mts.
and a 3 acre yard which is yet to be developed.
Additionally, work is under progress for
development of two transit sheds, water tank, and
ground level sump for water supply scheme. The
detailed port layout of the existing facilities is indicated in Annexure - 9
5.4 Planning methodology

For the development of the port layout from a long term perspective, the major parameters to be
looked at are:
1. Site and marine conditions which involve:
Topography
Bathymetry
Geotechnical conditions
Marine conditions such as wind, wave and currents
Coastal morphology
Littoral transport
Hinterland connectivity
Physical constraints and opportunities
2. Port facility requirements are:
Berth requirements
Governing vessel size
Storage area requirements
Requirements of dredging
Port craft
Navigation aids
3. Criteria for planning involves:
Marine operational criteria
Tranquility requirements
Vessel turning circle
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Port access channel

Deck elevation
5.5 Strategy for project planning

In a typical PPP port related project, the private developer is required to invest a substantial amount of
time and resources in establishing the infrastructure for commencing port operations, while the
government provides the waterfront and other hand holding related support. In this respect, the port of
Thankassery is very much unique, since the State Government has already established facilities at the
port.
This would provide the private developer a ready-made infrastructure set-up which would facilitate him
to commence commercial operations from Day 1. Accordingly the envisaged port planning focuses on
the optimum utilization of the existing facilities to its full capacity. It is only when the capacity of the
existing facilities is fully utilized that the private developer would be required to plan and install
additional infrastructure for catering to the cargo traffic.
The referred strategy would be a win-win situation to both the private developer as well as the state
government. For the private developer, due to the initial low investments required to augment the
existing facilities, his risks to that extent would substantially be reduced. This in turn would spur many
professional entities to bid for managing and operating the port facilitating the state government in
selecting the most competent private developer.
Accordingly the port planning exercise had been divided into the following phases Phase 1 The planning objective of the referred phase would be to utilize the existing facilities to its
full capacity. In this regards, the private developer would be required to augment the existing
infrastructure by:
Providing mechanical material handling equipment / cranes etc
Strengthening existing facilities
Facilitating connectivity (with active support of the state government)
Improving the storage requirements
Managing the port operations
Phase 2 When the cargo volumes exceed the capacity of the existing infrastructure, a separate
wharf is proposed in the port area towards North/East direction.
5.6 Port layout

5.6.1 Additional infrastructure in Phase I
The total length of the existing wharf (inclusive of the extension) is now 177 m and the width is 12 m.
The wharf has available draught of 6.30 m but the structure is designed for a draught of 10.00 m after
dredging, where by vessels of size upto 15,000 DWT can be directly berthed at wharf.
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As per details made available, the wharf structure is designed for a uniformly distributed load of 3.50
tonne per square meter and no other loading has been considered towards material handling cranes /
equipments operating on the wharf deck.
The wharf is protected from wave effect by seaward breakwater of 2100 m long and leeward
breakwater of 500 m long. Considering cargo to be handled in initial years consisting of containers and
bulk / break bulk in non containers common material handling machinery in the form of mobile cranes
are considered to handle all types of cargo.
As the deck is not designed for these crane loads, it is proposed to increase the deck slab thickness of
entire wharf deck, with extension by about 8.00 m towards land. The increase in vertical loads on piles
will be marginal and within the safe capacity of pile. The capacity of existing wharf including extension
with above strengthening would be utilized to the maximum extent possible.
A container stocking yard utilizing area marked for container yard for storage of TEUS is provided. The
installed capacity of wharf with the above strengthening would be around 3.60 million tonnes per
annum and actual capacity utilized would be 2.70 million tonnes per annum with operating efficiency of
75%. Considering above, the phase II would be required to be commissioned by year 2020 when cargo
volumes exceed 2.70 million Tonnes per annum.
5.6.2 Infrastructure in Phase II

Phase II is planned to be commissioned by year 2020. A separate wharf of dimensions 200.0 m long X
20.0 m wide is proposed in the port area towards North/East direction which will be mainly for handling
container cargo with higher capacity cranes than those considered in Phase I with increase in cargo
handling rate by about 25 to 30%.
In this phase , around 20 hectares of land has been earmarked for future extension . This is proposed to
be developed by reclamation upto deck level of wharf with shore protection using rubble bund using of
required sizes of stones as per the design. The area so developed will be utilized for container / bulk/
break bulk/ other cargo stored separately with provision for both open / covered storage as per the
need.
After commission of new wharf mainly for containerized cargo, the existing wharf will be used for
handling bulk and other cargo of comparatively less weight. After addition of second wharf, the installed
capacity would get increased to about 7.60 million tonnes per annum and actual capacity utilization
would be about 5.7 million tonnes per annum with operational efficiency of 75%.
The above handling capacity are considering proper road network for smooth evacuation of cargo from
port to the destination as well as to bringing cargo from other destinations without any kind of hold ups
in movement of vehicular traffic.
Page 64 of 158
Figure 9 : Indicative port planning layout

The detailed port layout drawing has been indicated as part of Annexure 10
5.7 Port facility requirements

5.7.1 Governing vessel size
The Thankassery port is planned considering dredging in future upto -10.0 m level thereby allowing the
vessels upto 9 m draft at all tides. Considering this the vessels of size upto 15,000 dwt can be
maneuvered inside the harbour and berth at the existing wharf structure.
At present the depths available at wharfs and inside the harbour are about -6.5 m to -7.0 m, which will
allow vessels having draft upto 5.5 to 6 m to operate in the harbour. This will allow vessels of size 6,000
to 7,000 dwt to berth at all tides.
Page 65 of 158
5.7.2 Berths availability and requirements

As indicated in the previous section, the size of berth in Phase I is 177 m with a width of around 12 m.
The installed capacity of wharf with the above strengthening would be around 3.60 million tonnes per
annum and actual capacity utilized would be 2.7 million tonnes per annum with operating efficiency of
75%.
In Phase II, a separate wharf 200.0 m long X 20.0 m wide is proposed in the port area towards
North/East direction.
5.7.3 Dredged depth at berths

At present the depth available in front of the existing wharf is -6.5 to -7.0 m. However the wharf is
designed for a dredged bed level of -10.0 m.
5.8 Planning criteria

5.8.1 Tranquility requirements
The existing harbour is a fair-weather, protected from the influence of waves by the two break waters
and near tranquil conditions exists in the harbour. Therefore no further tranquility aspects are required
to be considered.
5.8.2 Marine operational criteria

The port will be a direct berthing port for coastal vessels and ships of size ranging from 6,000 DWT to
15,000 DWT. The maneuvering inside the port area will be done using tugs of required bollard pull which
may be between 12 tonnes to 20 tonnes. For smaller vessels the fishing trawlers operating in the port
area could be used instead of a tug for pilotage.
5.8.3 Turning circle

The basin inside the harbour covering an area of 1250 m by 800 m having a depth of 6.5 m is sufficient
for turning of the vessels inside the harbour. Therefore no separate turning circle is required to be
provided.
5.8.4 Storage area levels and berth elevation

As the entire port areas as well as the existing approach roads are at uniform elevation, it is proposed to
keep the elevation for entire port complex as well as storage areas at the existing elevation of wharf. In
view of proposed strengthening of the existing wharf by providing additional thickness of slab of 0.7 to 1
m, the other areas and new wharf level will be matched by sloping run with gradual gradient.
Page 66 of 158
5.9 Planning consideration

5.9.1 Width of channel
Considering the vessel size contemplated, the existing width of the entrance channel is more than
adequate (350 m wide).
5.9.2 Depth of channel

The depth of channel at present is 6.5 meter, which will be increased to -10.0 m if dredging is required
to be carried out in berthing areas in future for bigger size vessels.
5.10 Navigational aids

Considering the width of entrance channel defined by the breakwaters and the light house , no special
navigational aids are necessary except the marker buoys for defining the navigational channel in the
centre of entrance channel and to be further extended in the approach channel.
5.11 Cargo handling equipment

In Phase- 1, the equipments for cargo handling are considered common for both general cargo, bulk
cargo and containerized cargo in the form of mobile cranes or fixed cranes of 20 tonnes capacity with a
radius of about 20 m . For Phase -2, while the facilities provided in Phase -1 will continue to be used on
existing wharf. The new container wharf will be provided with container handling cranes moving on rails
with a capacity of 25 tonnes at a radius of 25 to 30 m.
5.12 Land requirements

As per the land use plan given in Annexure 10, the existing land area including developed land by
reclamation works out to about 60 acres which is considered sufficient for various activities of the ports
and the storage requirements of Phase 1 and Phase 2 with provision for additional requirements in the
future.
5.13 Constrains in port operations

Traffic considerations
Based on the detailed traffic study conducted and the cargo estimates in low, medium and high
scenarios the maximum demand expected at Kollam (Thankassery) port are as under
In Million Tonnes
Low
Page 67 of 158
2015
2.0
2020
2.2
2025
2.4
2030
2.6
2035
2.9
2040
3.2
Medium
High
2015
2.2
2.3
2020
2.7
3.0
2025
3.3
4.1
2030
4.2
5.5
2035
5.3
7.5
2040
6.8
10.2
Cargo handling considerations

The existing wharf including extension and additional container wharf proposed in Phase 2 with
matching cargo handling machinery will have installed capacity to handle 7.6 million tonnes per annum
and operating capacity 5.7 million tonnes per annum is sufficient to handle the cargo requirements as
per the demand forecast under medium scenario. Therefore on the considerations of demand and the
cargo handling capacity, the port is capable of handling 5.7 million tonnes of cargo with operational
efficiency of 75% of installed capacity of 7.6 million tonnes per annum.
It will be possible to achieve the capacity given above, provided the evacuation of cargo as well as
handling of incoming cargo is possible with the existing road network augmented by additional
dedicated four lane road corridor from the port complex upto a suitable point on the National Highway
47 connecting Trivandrum and Cochin.
A note detailing out the route profiling as under taken by Atlas Survey Engineering System covering the
various evacuation options is given below which will have to be given serious considerations and to be
incorporated as part of development plan of Kollam city and surrounding areas in consultation with
urban development authorities of Government of Kerala.
Road evacuation options
During the topography and route profiling exercise, 4 road routes which seemed suitable enough for the
smooth transportation of freight were surveyed. Following are the findings of the exercise
1. From Port gate to Ammachiveedu junction One road starts from the gate of the port to Ammachiveedu junction which is 1,832 metres long.
Through this road, freight can be transported via NH 47 to Kochi without touching Kollam City
Traffic. But the width of this road upto 630 metres is only 7 metres. Beyond 630 metres till
1150metres the road width is varied from 10 to 13 metres. Beyond 1,150 metres till the end of this
road i.e. Ammachiveedu junction the width is about 12 metres and it is also straight. There are lots
of residential buildings on both sides of this road. The level difference between the said
Ammachiveedu junction and the wharf is 4.5 metres.
2. From Port gate to Beach and then to Trivandrum The second road starts from the port via Kochupilamood junction ends near Kollam Beach. This is
nearly 1,935 metres long and the road continues from there via Varkala along the coast to
Thiruvananthapuram. The said coastal road is now under construction. The width of this road from
the beginning upto 200 metres is 5 metres and there is a school, church and other residential
building on both sides. The remaining 1,735 metres there are a lot of buildings on the right side and
on the left side are filled with slums and other type of buildings.
Kollam canal also passes by the left side of this road. This road is nearly 8 metres wide (varies from 8
to 10 metres). There is a narrow bridge existing at Kochupilamood junction and it has been given to
Page 68 of 158
understand that Public Works Department, Kollam is proposing to construct a new bridge. The level
difference between the said beach side road and wharf is 3.14 metres.
3. From Port gate via Kochuplamoodu junction and then to Police camp
The third road starts from the Kochupilamood junction to Police Camp junction which is 860 metres.
Through this road, freight can be transported via NH 47 to Thiruvananthapuram without touching
Kollam City traffic. Width of this road is nearly 14 metres and it is also straight. There are big
buildings on both sides. The level difference between the said police camp junction and the wharf is
7.5 metres.
4. From Port gate to Kochuplamoodu junction to Chinnakada round about (which is the Main city
centre for Kollam).
The fourth road starts from the Kochupilamood junction ends near Chinnakada roundabout which is
1,140 metres long. Through this road freight can be transported via NH 208 to Thengassi, Tamilnadu.
But this road is direct link to Kollam City. The width of this road is 14 metres and it is straight. There
are lot of shops in both sides. The level difference between the said Chinnakada roundabout
junction and the wharf is 8 metres.
Page 69 of 158
6. Cost estimates
6.1 Capital cost estimation
The State Government of Kerala had the foresight to tap the potential of Thankassery for the
development of a port and had accordingly invested in phase wise manner over a period of time to
develop the region into a coastal / feeder gateway terminal. The investments incurred as on March 1st
2010 for the development of the Thankassery port by the State Government of Kerala is indicated in the
section below.
6.1.1 Cost incurred by the State Government for the development of

Thankassery Port
The sector wise cost incurred for the various structures at Thankassery Port are
Note The cost incurred have been obtained from the Harbour Engineering Department
1. Works under Fisheries Department
S.
No.
1.
Costs incurred
In Million Rs.
Construction of Main break water 2100

metres
Under Tsunami programme 500 metres
Funded by Central Govt. 50%
State Govt. 50%
2.
Year of construction
295.00 Initial work on the breakwater

commenced in 1990 and
around 1,450 meters of
breakwater was completed in
1996.
Strengthening of Break water Funded by

Asian Development Bank
Total actual cost
Table 23: Project cost incurred under Fisheries Department
The balance of the breakwater

work was again started in
1996 and completed in 2001
107.40 Done in 2008-09 F.Y
402.40
2. Works under ASIDE Scheme of Ministry of Commerce & Industry

S.
No.
1.
2.
Costs incurred
Extension of wharf
Road and retaining wall
Page 70 of 158
In Million Rs.
72.30 The work on the extension of

the existing wharf commenced
in September 2008 and is
expected to be completed by
end of March 2010
44.50 Work had commenced in
S.
No.
3.
Costs incurred
Yard development
In Million Rs.
September 2008 and as

ongoing but started in Sept
2008
61.20 Of the total work envisaged,
around 50% has been
completed in March 2009 at a
cost of Rs. 20.2 million
Three ( 3) more acres have to
be developed and around Rs.
41.0 million has been allotted
for the same, taking the total
cost for yard development to
Rs.61.2 million
Total actual cost

178.00
Table 24: Project cost incurred under ASIDE scheme of Ministry of Commerce & Industry
3. Works under State Government (Port Sector) under State Plan Scheme
S.
No.
1.
Costs incurred
In Million Rs.
Construction of wharf
54.10 The construction of the wharf

was completed in November
2006
2. Road, compound wall, drains etc.
18.20 The construction of the said
structures was completed in
March 2009
3. Water supply
7.60 Work for water supply
commenced in September
2009 and as on march 2010,
the works were still in
progress
4. Renovation of old godown
3.30 The renovation of old godown
was completed in 2009
5. Electrification of yards
7.00 The electrification of yards
was started in January 2010
and is expected to be
completed by end of March
2010
Total actual cost
90.20
Table 25: Project cost incurred under State Government (Port sector)
Page 71 of 158
4. Works under Tsunami Rehabilitation Programme under port sector

S.
No.
1.
2.
3.
Costs incurred
In Million Rs.
Transit shed
Port road
Dredging cost
7.10 Completed in January 2010

8.10 Completed in January 2010
24.80 Work in progress, to be
completed by end March 2010
Total actual cost
40.00
Table 26: Project cost incurred Tsunami rehabilitation programme under port sector
5. Summary of the costs incurred by the State Government of Kerala

Scheme / State Plan
In Rs. million
Fisheries sector
402.40 5
ASIDE scheme
178.00
Port sector under state plan
90.20
Port sector under Tsunami Rehabilitation Programme
40.00
TOTAL COSTS
710.60
Table 27: Summary of the project cost incurred by the State Government of Kerala
6.1.2 Additional planned costs for development of the Thankassery port

The envisaged port planning takes into consideration the existing facilities already developed by the
State government and the current work-in-progress which the State Government is expected to
complete before the prospective private developer is selected. The immediate focus is to utilize the
existing infrastructure created by State Government and then invest further, especially in machineries
and equipment, to complete the port which can handle the envisaged cargo.
Port planning is done with the focus that only when the capacity of the existing facilities is crossed, that
the additional infrastructure would be planned. Planning and subsequently investments for the
additional facilities is a function of the projected cargo growth and accordingly, investments in a phase
wise manner have been indicated to cater to the envisaged cargo volume that would be expected at
Thankassery port. The phasing and the cost estimates for the additional facilities is indicated below:
ITEM
TITLE
Phase1
( till
2020)
LAND
1.1 Private/ Government
0.00
ESTIMATED COST
Phase-2
( 2020 onwards)
0.00
Total
0.00
For the purpose of the financial projection, the cost of breakwater has not been taken into account
since it would make the project unviable.
Page 72 of 158
ITEM
TITLE
Phase1
( till
2020)
SURVEYS
2.1 Land Survey
2.2 Confirmatory Geotechnical Investigation
7
8
9
10
11
12
2.3 Confirmatory bathymetric & other surveys for

navigation.
SITE DEVELOPMENT
3.1 Strengthening/ widening of existing approach
3.2 Reclamation over existing land area upto roal level
3.3 Shore protection
3.4 Internal Roads
MARINE STRUCTURES
4.1 Strengthning of existing wharf including extension
4.2 New multipurpose wharf
4.3 Jetty in breakwater side
4.4 Fixtures/ fittings
ACCESS TO PORT AREA
5.1 Gate complex
5.2 Fencing/ compound wall
BUILDINGS
6.1 Control room cum administrative building
Rail
6.2 Rest room & canteen
6.3 Pump house
6.4 Substation building & generator room
6.5 Misc structures
WATER
7.1 Supply from local board
7.2 Storage & distribution
FIRE FIGHTING
8.1 Fire fighting equipments & accessories
SURFACE WATER & DRAINAGE
9.1 Storm water drainage system
ENVIRONMENTAL CONSIDERATIONS
10.1 Cost for Environmental Considerations
MECHANICAL - MATERIAL HANDLING EQUIPMENT
11.1 Cranes/ forklifts
VEHICLES/ EQUIPMENTS
Page 73 of 158
ESTIMATED COST
Phase-2
( 2020 onwards)
Total
0.00
0.00
0.25
0.75
0.25
0.75
0.60
0.00
0.60
36.00
0.00
0.00
40.00
40.00
41.00
54.00
58.00
76.00
41.00
54.00
98.00
36.00
0.00
0.00
1.60
0.00
500.00
0.00
3.00
36.00
500.00
0.00
4.60
1.80
2.80
1.40
3.00
3.20
5.80
0.00
0.00
4.50
0.90
1.10
1.50
0.00
0.00
4.20
0.00
0.00
1.70
8.70
0.90
1.10
3.20
0.00
0.00
0.40
2.40
0.40
2.40
1.60
0.00
1.60
0.60
0.75
1.35
1.20
0.00
1.20
200.00
210.00
410.00
ITEM
TITLE
Phase1
( till
2020)
13
14
15
16
17
18
12.1 Transportation
ELECTRIFICATION & INSTRUMENTATION
13.1 Electrical installation & distribution
COMMUNICATION
14.1 Communication network
DREDGING
15.1 Dredging (Provisional)
15.2 Navigational Aids
TUGS & OTHER FLOATING CRAFT
16.1 Tugs & floating crafts
PROFESSIONAL FEES
17.1 Project reports & approvals
17.2 Detailed engineering and project monitoring
17.3 Other professional fees
MISC. COSTS & CONTINGENCIES
18.1 Misc costs
18.2 Contingencies
Total Estimated Project Cost Rs.
ESTIMATED COST
Phase-2
( 2020 onwards)
Total
Through
subcontract
20.00
25.00
45.00
0.50
0.50
1.00
0.00
0.00
190.00
3.80
190.00
3.80
Through
subcontract
6.00
4.00
0.50
10.00
16.50
1.25
16.00
20.50
1.75
2.50
36.30
3.25
78.85
400.00
1250.00
5.75
115.15
1650.0
0
Table 28: Additional project cost envisaged for development of Thankassery port
The existing land can be leased to the SPV at the market values. For the purpose of calculation, the lease
rental has been taken as Rs. 7.3 million per annum6.
This is based on the current market value of the land being Rs. 2 crore per acre and considering 11 acres, the cost
of the land is Rs. 22 Crore ( Rs. 220 million). Assuming that the concessionaire period is for 30 years, we have the
figure of Rs. 220 million / 30 years i.e Rs. 7.3 million per annum.
Page 74 of 158
7. Determination of tariffs
7.1 Overview of port tariffs
The proposed port at Thankassery shall price its services competitively in order to provide a cost feasible
logistics gateway to its end customers. The tariffs so determined are different for coastal vessels and for
foreign going vessels. The tariffs for containers and general cargo consist of two major components,
namely:
Vessel related charges
Cargo related charges
7.1.1 Vessel related charges

The vessel related charges includes port dues, pilotage charges and berth hire charges as illustrated in
table below (These rates shall differ for containerized cargo and general cargo):
Type of vessel related charges
Unit of measurement
Port dues
INR/GRT
Pilotage
INR/GRT
Berth hire charges
INR/GRT/Hour
Table 29: Vessel related charges
7.1.2 Cargo related charges

The cargo related charges for containerized cargo shall consist of the following components as shown in
the table below:
Unit of measurement (UOM)
Particulars
Laden containers
Empty containers
Handling charges
Between ship and container yard
Between container yard and CFS
INR/TEU
INR/TEU
Between container yard and truck
Average wharfage charges
Table 30: Cargo related charges
INR/TEU
INR/TEU
Similarly, the cargo related charges for bulk and dry-bulk cargo shall consist of the following
components as shown in the table below:
Particulars
Average wharfage charges
Composite handling charges
Page 75 of 158
Unit of measurement (UOM)

INR/ton
INR/ton
Table 31: Cargo related component charges
7.1.3 Tariff regulatory framework

The major ports in India are administered under the Major Ports Trust Act of the Union Government.
The tariff is set by the Tariff Authority for Major Ports (TAMP). Thankassery being a non-major port is
being administered by the Directorate of Ports, Government of Kerala, which shall be vested with the
powers for tariff setting and review. The tariff rates for the Thankassery port will be determined by the
Special Purpose Vehicle Company ( SPVC) which will be set up with an equity stake of the Government
of Kerala as well as the Private Developer and will be governed from time to time by the state
government through the Directorate of Ports.
7.2 Tariff determination

The schedule of port charges for Thankassery has to be fixed in such a way that it creates a win-win
situation for both the users and developers. The Consultants derived cues from the various vessel and
port related charges that the competing ports in the vicinity are charging and subsequently used most
suitable values in the financial model to check for feasibility. The tweaking of rates has been done
without compromising on the returns that has to be ensured for the private developer.
Heading
Vessel related
charges
Cost parameter
Port dues
Pilotage charges
Berth hire charges
Cargo related
charges
Wharfage charges
Cargo handling charges
Table 32: Tariff for container vessels
Heading
Vessel related
charges
Page 76 of 158
Cost parameter
Port dues
Pilotage charges
Unit of
Measurement
Rs. per GRT

Rs. per GRT
Rs per GRT per
hour or part
thereof
Rs per TEU
Rs. per TEU
Unit of
Measurement
Rs. per GRT

Rs. per GRT
Container vessels
4.00
5.00
0.10
250.00
250.00
Bulk vessels < 12,000 GRT
4.00
5.00
Heading
Cost parameter
Berth hire charges
Cargo related
charges
Wharfage charges
Cargo handling charges
Table 33: Tariff for bulk coastal vessels
Unit of
Measurement
Rs. per GRT per

hour or part
thereof
Rs per MT
Rs. per MT
Bulk vessels < 12,000 GRT
0.10
25.00
15.00
These rates are only indicative in nature and the respective maritime authority shall take a final decision
on this. The above rates shall undergo revision once in every three years with a 20% increase factored in
at the time of revision.
Page 77 of 158
8. Financial analysis
8.1 Introduction
This chapter provides the financial analysis and financial projections for the investments proposed in the
earlier chapter. Accordingly the NPV and IRR calculations have been carried out and the overall financial
projections have been projected for a period of 30 years from 2011to 2040. The financial projections
show the financial performance and position over the investment horizon.
8.2 Identification of revenue streams

8.2.1 Traffic forecasts
The traffic projection of cargo for the port has been done for high, medium and low case scenarios.
Considering the macro-economic scenarios, the hinterland profile and the possibility of competition that
can be faced by the port; the medium case scenario has been used as the base case for financial
modeling. The table below shows the summary of the traffic assumed for financial forecasting.
Year
Bulk ( Mn Tonnes)
2015
1.527
2020
1.904
2025
2.398
2030
3.040
2035
3.839
2040
4.937
Table 34: Projected traffic for financial modeling8
Container ( Mn Tonnes)
0.680
0.814
0.989
1.215
1.504
1.868
Total Cargo ( Mn
Tonnes)
2.207
2.718
3.387
4.255
5.343
6.8057
8.2.2 Tariffs
The tariffs form the second part of the revenue stream assumptions. The tariffs for cargo have been
determined keeping in view the competing ports that share the hinterland with Thankassery port. The
The traffic for the purpose of the financial projections for the year 2040 has been capped at 5.7 million tonnes
based on 75% of the capacity of the berth.
8
Cargo having a tonnage of greater than 20 tonnes per TEU has been excluded from the financial projections. This
is primarily because the material handling equipment so considered in the financial projections have a capacity to
handle around 20 tonnes per TEU.
Page 78 of 158
port operations are based on coastal and feeder operations and keeping this in view, the tariff design
has been kept simple. Also the stevedoring and handling operations are expected to be outsourced.
The proposed schedule of port charges is given in the previous chapter.
8.3 Assumptions of investment and expenditure

8.3.1 Investment in capacity development
As indicated in the earlier sections, the additional infrastructure would be planned only when the
capacity of the existing wharf is fully utilized. To that extent, investment would be infused to strengthen
the existing infrastructure and additional investments would be made in a phase wise manner to cater
to the envisaged cargo growth. The existing investments and the phase wise investment expected
(excluding IDC / pre-operative expenses) in the future is detailed out in the previous chapter and the
summarized details has been indicated below:
Sr No
1
2
3
Phase
Time frame considered
9
Existing infrastructure
Till 2020
Phase I
Till 2020
Phase II
From 2020 onwards
Total
Table 35: Summary of phase wise investment details
Amount in Rs. million

308.20
400.00
1,250.00
1,958.20
8.3.2 Debt / equity financing assumptions

The assumptions pertaining to financing of the project are valid for all the phases. It is assumed that the
investment would be completed in the same year and the debt servicing would be possible from the first
year of operation itself
Assumption Description
Debt percentage
Equity margin
GoKs share in equity
Developers share in equity
Cost of long term secured debt
Cost of equity
Interest on Unsecured loan
Margin money for Working Capital
Interest on Working Capital
Debt repayment period
Moratorium period
Construction period for Phase II
Working capital Average receivables
9
Unit
70%
30%
49%
51%
10%
13%
8%
40%
11%
10 years
2 years
2 years
0.5 month
The same is excluding the costs incurred by the Fisheries Department
Page 79 of 158
Working capital Average payables

Table 36: Debt / financing options
0.5 month
Note:
1. IDC is not considered separately as it is included in the preoperative expenses;
2. In case of deficiency in cash balance the same will be made good by way of interest free
unsecured loans from promoters
8.3.3 Operations and maintenance expenses

The annual operating and maintenance costs including costs incurred on repairs can be best estimated
separately on each relevant component of the above estimated costs. For this purpose, the following
factors need to be taken into consideration:
Life of each type of infrastructure / equipment / asset

Nature / frequency of repair works required
Nature / frequency of maintenance works required
The efficiency of operations conducted
A realistic assessment of the operations and maintenance cost however often proves difficult as it varies
from project to project depending on the actual use of the equipment and the works, maintenance
standards, workforce employed and the local environment. As a practical approach the annual O&M
expense is fixed as a percentage of the capital expense. The expenses related to operations other than
O&M have been fixed as a percentage of the gross revenues.
Given the above, the table below shows such percentages assumed for the purpose of estimation of the
repairs and maintenance and admin and operating costs. The percentage of repairs and maintenance
will vary as the equipments become old and need more attention than in the early years.
As mentioned above, the operating and maintenance expenses are estimated as a percentage of
revenue and capital expenditure respectively. The Table below shows these percentages.
Sr.
No.
1
Description
Operations & Maintenance
Repairs and Maintenance
0.5% of the total project cost

between 2011 to 2015
1% of the total project cost between
2016 to 2020
Selling, general & administrative expenses
5% of total revenue
Variable operating costs-cargo related & others
10% of total revenue
Page 80 of 158
Sr.
No.
4
Description
Operations & Maintenance
Cargo handling charges using port facilities (

outsourced) - bulk
30% of cargo handling revenue
Cargo handling charges using port facilities

(outsourced) - container
30% of cargo handling revenue
Pilotage expenses outsourced
70% of pilotage revenue
Lease rental for land
Rs.7.33 million per annum
Number of administrative and managerial staff
15
Average salary per annum of managerial staff
Rs. 0.475 million per annum
10
Average salary per annum of support staff
Rs. 0.225 million per annum
11
Per annum increase in cost of salary
5%
Table 37: Operation and maintenance percentage
8.3.4 Royalty payment to the Government of Kerala

The royalty payments that are expected to be paid to Government of Kerala are as per the Table 38
below:
Description
Rate (% of total revenue)
Full waterfront royalty to GoK - dry cargo
12
Full waterfront royalty to GoK containers
12
Table 38: Waterfront royalty to GoK
8.3.5 Port related assumptions

The assumptions relating to overall port operations are as under:
Sr.
No.
Description
Port related assumptions
1.
Number of month in which port will

remain operational
12 months
2.
No. of operational days in a year
270
3.
No. of operational hours per day
16 hours
4.
No. of shifts per day
5.
Installed capacity of port - Phase I
3.6 mn. tonnes per annum
6.
Increase in installed capacity of port in

the year 2020- Phase II
7.
Total installed capacity of port Phase I

& II
Page 81 of 158
Sr.
No.
Description
Port related assumptions
8.
Available operational capacity as a

percentage of installed capacity
75%
9.
Operational capacity Phase I & II
2.7 mn. Tones (phase I) plus 3 mn. Tonnes (Phase II)

= Total 5.7 million tones per annum
10.
Loading / Unloading rate per hour for

Bulk cargo
Initially 450 MT, from 2020 & onwards 900 MT
11.
Loading / Unloading rate per hour for

containerized cargo
Initially 16 TEUs, from 2020 & onwards 32 TEUs
12.
Berthing time per ship Bulk
15.33 hours
13.
Berthing time per ship Container
14.50 hours
14.
Size of vessel calling at port Bulk
Initially 8,000 GRT, from 2020 & onwards 15,000

GRT
15.
Size of vessel calling at port Container
Initially 8,000 GRT, from 2020 & onwards 15,000

GRT
16.
Average parcel size of vessels calling at

port Bulk
Initially 6,000 MT, from 2020 & onwards 12,000

GRT
17.
Average parcel size of vessels calling at

port Container
Initially 200 TEUs, From 2020 & onwards 400 TEUs
Table 39: Port related assumptions
8.3.6 Depreciation and tax expenses

The WDV rates applicable for income tax calculation and the SLM rates are tabulated as below:
SLM
WDV
Item
No. of years
Rate %
Land & Land Development
0%
Buildings
60
10%
Marine Structures
40
10%
Machinery and equipments
20
15%
Utility (Water, electricity, commn &
firefighting)
15
15%
Furniture & fixtures
15
15%
Capital dredging
60
10%
Table 40: Depreciation rates for various assets
Replacement of assets is not considered once the useful life of the asset is completed. Any replacement
of the asset that may be required will be done from internal accruals and current assets.
Page 82 of 158
The tax rate applicable for the project is as per the table below
Income tax rates
Rates
Income tax - corporate tax
33.22%
MAT Rate
18%
Table 41: Tax rates
8.4 Financial projections

Based on the assumptions and estimates, the profit and loss statement and cash flow statement for the
project were prepared.
8.4.1 Projected revenues

The projected total gross revenues for each phase are as per the table below
Rs. Million
Year
Revenues
2015
176.43
2020
423.20
2025
596.75
2030
1077.54
2035
1945.62
2040
2411.78
Table 42: Projected Gross Revenues
8.4.2 Profitability
Year
2015
2020
2025
2030
2035
2040
Table 43: EBITDA
In Rs. Million
EBIDTA
91.53
253.17
365.20
689.53
1525.75
2273.77
8.4.3 Financial indicators NPV, IRR and DSCR

This section provides the overall financial analysis for the proposed investments. Accordingly the NPV,
IRR and the financial projections have been carried out for a period of 30 years. DSCR calculations have
been carried out for each phases from availing the debt till its repayment.
Page 83 of 158
While a positive NPV shows that the project as feasible, the purpose of the IRR calculations is to assess
whether the returns are adequately above the hurdle rate the stakeholders would have in mind in terms
of an adequate return on investment and the purpose of DSCR is to evaluate the overall debt payment
capability.
Following is the summary of these financial indicators:
Description
Amount
12.51
205.09
15
DSCR Phase I
1.82
DSCR Phase II
2.81
Table 44: Financial feasibility indicators
Detailed calculations of each of above financial indicators are given in Annexure 11
Page 84 of 158
9. Way forward
The Consultants propose the following recommendations to develop Thankassery port
It is important for Thankassery port to pre-empt direct competition with existing major ports such as
Cochin port and Tuticorin port as these ports already have huge volumes of business and state of
the art infrastructure in place. Accordingly Thankassery should be positioned as a coastal port
complementing the existing operations of Cochin Port and the proposed operations at Vizhingham
port.
At present the depths available at wharfs and inside the harbour are about -6.5 m to -7.0 m , which
will allow vessels having draft upto 5.5 to 6 m to operate in the harbour. This will allow vessels of
size 6,000 to 7,000 dwt to berth at all tides. Hence in phase 1 it is proposed to commence
operations using 6,000 to 7,000 DWT vessels with minimal investment as this option obviates the
requirement for deep dredging. In other words, the huge capital and maintenance dredging costs is
pre empted here. In phase 2 from 2020, the port would be able to handle 15,000 DWT vessels ( after
dredging) considering the increased traffic.
The State Government has already done a significant amount of the effort over the period of years
to provide a ready gateway facility. This obviously becomes a selling point for Thankassery port,
since the prospective Developer can invest the minimum amount required for material handling
equipment, strengthening of berth and other minor contingencies and this also minimizes the risk
for prospective private developers who can start operations within two to three months of signing
of the concessionaire agreement.
Having an existing infrastructure also offers the prospective developer to utilize the facilities to its
optimum capacity. Accordingly the private developer can observe the traffic flow to the port for a
period of 5 to 6 years and based on the prevailing circumstances can ramp up capacities. This
provides the port developers a leeway in terms of port planning.
The evacuation of the cargo is a critical parameter for Thankassery port and hence it is necessary
that the existing road network is augmented by additional dedicated four lane road corridor from
the port complex upto a suitable point on the National Highway 47 connecting Trivandrum and
Cochin. The port connectivity is to be incorporated as part of development plan of Kollam city and
surrounding areas in consultation with urban development authorities of Government of Kerala.
With regards to the development of the rail connectivity to the Kollam ( Thankassery) port,
presently the inland movement of the cargo type being generated from the hinterland identified for
Thankassery port is mainly through road since the primary cargo generators are within the radius of
150- 200 kms from the port. Cargo generators in the secondary hinterland of Tamil Nadu for the
Kollam port is expected to use the rail connectivity, though this cargo expected is not very significant
due to the same being routed towards Tuticorin port. Presently, based on the cargo identified for
the port, rail connectivity is not a pre-requisite. However, if such a connection exists, it will provide
additional advantage to the project.
Page 85 of 158
The cost for the development of road connectivity and that of the rail (if required) should preferably
be undertaken by the government for making the project feasible and attractive to a private
developer . ( A detailed financial analysis has been undertaken on the various funding options ( i.e
funding to be provided either by government or the private developer) and the findings of the same
has been indicated as part of Annexure 13 )
Page 86 of 158
Annexure 1 : Stakeholders contacted for the traffic survey

From primary hinterland (Kerala)
Trade Associations
Sr No Name of organization
1.
Tea Trade Association
2.
The Cochin Chamber of Commerce & Industry
3.
Cashew Export Promotion Council of India
4.
Coir Shippers Council
Place
Cochin
Cochin
Cochin
Alleppey
Commodity Boards
Sr. No Name of organization
5.
Rubber Board
6.
Tea Board
7.
Coir Board
8.
Coconut Development Board
9.
Spices Board
10.
Coffee Board
Place
Kottayam
Cochin
Cochin
Cochin
Cochin
Bangalore
Customs Entities
11.
Cochin Custom House Agents Association
12.
Cochin Customs House
13.
Cochin Clearing House Pvt Ltd
14.
Paul Abrao & Sons
15.
Aspinwall
16.
Jai Narayana Shipping
17.
Oriental EXIM Agency
Place
Cochin
Cochin
Cochin
Cochin
Cochin
Cochin
Cochin
Shipping Companies
18.
Shreyas Shipping & Logistics
19.
Seaways Shipping Limited
20.
Caravel Logistics
21.
Vikram Logistics
22.
Jindal Waterways
Place
Mumbai
Cochin
Chennai
Bangalore
Cochin
Industry / Companies
23.
Kerala Balers
24.
William Goodacre & Sons India (P) Ltd
Page 87 of 158
District
Alleppey
Alleppey
Industry
Coir
Coir
Sr. No
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
Name of organization
Cocomats International
Ceyenar Chemicals Pvt. Ltd
Midas Treads (India) Pvt Ltd
Kailas Cashews
Rajan Cashew Co.
Lourdes Matha Cashew Industries
St. Pauls Cashew Factory
Asiatic Export Enterprises
Vijayalaxmi Cashew Co.
Capithans / Veronica Marine Exports
Indian Aquatic Products
Kerala Minerals and Metals Ltd
Indian Rare Earths
Kerala Ceramics
DCruz Navigation
Greenland Paper Mills
RPC Paper Mills
Travancore Titanium Products Ltd
English Indian Clays Ltd.
Terumo Penpol
Kerala State Industrial Development Corporation
A V Marbles
Variety Marbles
Gemwood
Bharat Petroleum Corporation Limited
Grasim Industries
ACC (Gujarat Ambuja Cement)
Sanghi Cement
Malabar Cements
Cochin Condiments
Leo Exports
Lords Flavours
District
Alleppey
Kottayam
Kottayam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Kollam
Trivandrum
Trivandrum
Trivandrum
Trivandrum
Trivandrum
Trivandrum
Cochin
Cochin
Mumbai
Mumbai
Ahmedabad
Alleppey
Idukki
Idukki
Idukki
Industry
Coir
Rubber
Rubber
Cashew
Cashew
Cashew
Cashew
Cashew
Cashew
Marine Food
Marine Food
Titanium di-oxide
Sillimanite / ilmenite
Clays
Sand
Paper products
Paper products
Titanium di-oxide
Clays
Blood bags
Industrial Development
Marbles
Marbles
Wooden products
POL
Cement
Cement
Cement
Cement
Spices
Vehicles
Spices
57.
Kanan Devan Hills Plantation
Idukki
Tea
58.
Harrisons Malayalam Ltd.
Idukki
Tea
59.
Nagarjuna Herbal Concentrates
Idukki
Ayurvedic medicine
60.
Eastern Condiments
Idukki
Spices & food stuff
Page 88 of 158
From secondary hinterland (Tamil Nadu)

Custom entities
Sr. No
1.
MSE Lines
2.
Aspinwall & Co. Ltd.,
3.
A.V. Thomas & Co. Ltd
4.
M/s Cargomar
5.
Chakiat Agencies
6.
Expo Freight Pvt. Ltd.
7.
J. M. Baxi & Co.
8.
Fly Jac Logistics
9.
Galaxy (TTN) Agencies
10.
Glow Freight Logistics Pvt. Ltd.
11.
Indo Lloyd Freight
12.
M/s Kuehne + Nagel (P) Ltd.
District
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
Tuticorin
ICDs / CFSs/ Logistics Service Providers

Sr. No
1.
Container Corporation of India Ltd.
2.
M/s Sanco Trans Ltd
3.
St John Freight Systems Limited
4.
5.
Central Warehousing Corporation
6.
7.
Tirupur Container Terminals Private Limited
8.
M/s SICAL Distripark Ltd
District
Tuticorin
Tuticorin
Tuticorin
Madurai
Coimbatore
Tirupur
Tirupur
Tuticorin
Industry / Companies
Sr. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Page 89 of 158
Name of company
Peacock Apparels Pvt. Ltd.
Fenner (India) Ltd.
Thiagarajar Mills Ltd.
T V S Srichakra Ltd.
Global Poly Bags Inds. Ltd
TVS Interconnect Systems
Vaigai Chemical Industries
JVS Export
S.S.N. Trading Company
Triumph Enterprises and Investment Pvt.
Ltd.
District
Madurai
Madurai
Madurai
Madurai
Virudhunagar
Madurai
Madurai
Madurai
Madurai
Madurai
Industry
Textiles
Rubber
Textiles
Tyres
Polyethylene bags
Electrical switches
Food processing
Made-ups, fabrics trading
Cement trading
Cement trading
Sr. No
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
Name of company
Concord Exports
Dunite Rocks Pvt. Ltd.
S. Jawaharlal & Co.
Aruna Alloy Steels Pvt. Ltd.
Prime Stones
Sundaram Industries Ltd.
Sourz Agri Food Processing (P) Ltd.
Arkay Rock Produce Pvt. Ltd.
Madura Stones Pvt. Ltd.
Kaltec Granites Pvt. Ltd.
Rajah Green Fields
Standard Granites
Stanco Traders
Standard Match Co
The Mehta Industries
Chellsons Packaging Pvt Ltd
Sripathi Paper & Boards Pvt Ltd
Lovely Offset Printers Pvt Ltd
Supreme Duplux Board Mills (P ) Ltd
Metal Powder Co. Ltd
Hi-Tech Arai Ltd.
Madura Coats Pvt. Ltd.
Hari & Co
Loyal Textiles Mills Ltd.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
Vigneshwar Exports
Harvell Cocopeat
A to Z Tiles Park
D Kamak Bathe Homes
Prabhat Saw Mills
Tata Coffee Limited
Sigma Agro Derivatives (P) Ltd.
Shri Renuga Textiles Ltd.
Azaad Timber
Kumar Dhall Mills
S. K. Aiyakkalai Nadar & Son
Sri Lakshmi Dhall Mills
Theni Guru Krishna Textile Mills (P) Ltd.
NVS Agro Derivatives
M. Muthuraj (HUF)
Menaka Cotton Mills Ltd.
Shri Renuga Soft-X Towels Ltd
Geetha Timbers Ltd.
Page 90 of 158
District
Madurai
Madurai
Madurai
Madurai
Madurai
Madurai
Dindigul
Madurai
Madurai
Hosur
Madurai
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Madurai
Madurai
Madurai
Tuticorin
Tuticorin /
Tirunelveli
Tirunelveli
Tirunelveli
Tirunelveli
Tirunelveli
Tirunelveli
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Theni
Industry
Agri/Food exports
Granite
Cement, timber trading
Steel products
Granite
Rubber
Food processing
Granite
Granite
Granite
Coir Pith
Granite
Granite
Matches
Slack & residual wax
PVC shrink film labels
Paper & related products
Books
Paper & related products
Aluminium
Rubber
Threads
Timber
Textiles
Food processing
Coco products
Marbles/ Tiles
Marbles / Tiles
Timber
Coffee
BBQ Briquette
Textiles
Wood & timber
Agri/Food products
Agri/Food products
Agri/Food products
Textiles
Coir pith & products
Agri/Food products
Textiles
Textiles
Wood & timber
Sr. No
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
District
Theni
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Virudhunagar
Dindigul
Dindigul
Dindigul
Dindigul
Dindigul
Dindigul
Dindigul
Dindigul
Industry
Wood & timber
Paper
Polyethylene bags
Granite
Textiles
Textiles/Garments
Textiles
Granite
Food processing
Food processing
Chemicals
Food processing
Coir products
Textiles
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
Name of company
Geetha Timbers & Plywoods Ltd.
Srinivas Fine Arts Pvt. Ltd.
Universal Polybags Inds
Vel Stonex Pvt. Ltd.
V T M Ltd.
SFA Technical Creations (P) Ltd
Ambica Cotton Mills
Arkay Glenrock Pvt. Ltd
Intl Agricultural Processing Pvt. Ltd.
Bnazrum Agro Exports (P) Ltd.
Tanmix Company
Veg N Table Food Processing Pvt. Ltd.
Sai Cocopeat Export Pvt. Ltd.
Bannari Amman Spinning Mills Ltd. / Shiva
Texyarn Ltd.
C A V Cotton Mills / Sangeeth Group
G V G Paper Mills Pvt. Ltd.
Danalakshmi Paper Pvt. Ltd.
Sudhan Spinning Mills Pvt. Ltd.
Gherkins Agro Exports (India) Pvt. Ltd.
St. Roche Exports
Nagammal Mills Ltd.
Kanam Latex Industries Pvt. Ltd.
APN Shell Craft
Kanyakumari Marine Foods
V. V. Mineral
M. S. S. Asan Exports
Kumaran Fishnets Limited
Indian Rare Earth Limited
Mercury Fishnet Limited
Suresh Marbles & Granites
Thiraviyam Coco Products
Dindigul
Dindigul
Dindigul
Dindigul
Dindigul
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Textiles
Paper
Paper
Textiles
Food processing
Various
Textiles
Latex products
Seashells handicrafts
Fish export
Minerals
Agricultural products
Fishnets
Minerals
Fishnets
Marbles
Coco Products
84.
85.
86.
87.
88.
89.
Sabare & Co
Jeyram Marbles
Royal Marbles
Shine Marbles
Lebanon Christopher Enterprises Pvt Ltd
Jaya Timber
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Kanyakumari
Medicinal herbs
Marbles
Marbles
Marbles
Timber
Timber
Page 91 of 158
Annexure 2 : Statistical analysis of data for expected

traffic at Thankassery port
Methodology of traffic data collection
Deloitte followed a two pronged methodology for collection and validation of data for arriving at the
likely estimate of traffic data for Kollam Port. The research design adopted for this project was a two
stage process which consisted of
1. a Secondary Research of collecting all the available information and published data from
authentic sources in stage I and
2. a Primary Research based on a sample survey of key stakeholders in stage II
The data and information obtained in stage I (i.e. through Secondary Research) were screened rigorously
for correctness and appropriately filtered for purpose of quantitative analysis at a later stage. The
Primary Research was conducted in the primary and secondary hinterland of Kollam and involved
interviews of the major export / import oriented industries, trade associations and key stakeholders in
the potential development of the port at Kollam.
The inputs, qualitative as well quantitative, received through primary research were taken into
consideration for deriving assumptions on likely traffic and growth rate of traffic at Kollam port. The
data obtained from the Secondary Research was further seen and reviewed in light of findings and
inputs from the Primary Survey. Based upon the key findings, the data was qualitatively adjusted by
taking in account the various factors that could have a probable impact on the traffic that would be
handled at Kollam port.
The data so collected was analysed using different quantitative techniques which included measures
such as mean, proportion, standard deviation, outliers and appropriated statistical tools including
hypothesis tests.
The results for select commodities having a significant proportion of the traffic are furnished below
Statistical analysis of the data
In order to verify the validity of assumptions for expected traffic at Kollam port, we have used
hypothesis test for proportion. As the sample size was less than 30 and population deviation unknown,
t-distribution was used to test the hypothesis. In applying this test, it has been assumed that the data in
the population for each category follows Normal distribution. Even so, in some cases, the sample size
(number of respondents) being quite small limits the adoption of t-test for validation of proportion in
this manner. To remove that anomaly, we have taken weighted proportion instead of actual sample
proportion.
The findings and results for each category of cargo are tabulated separately for each category as follows:
Page 92 of 158
Table 1: Hypothesis test for Food & Agri Processing Cargo from Madurai
Summary Statistics on Food & Agri Processing Cargo from Madurai
Particulars
Value
No. of players in the category
Units / remarks
42
Nos.
Nos.
Total Traffic
34736.14
tons
Traffic handled by Sample entities
14149.01
tons
1.0
Sample proportion
0.4044
Weighted sample
proportion
0.5
Assumed proportion
0.3470
From sample
-0.2753
From sample
0.8289
Far greater than 0.05
No. of respondents in the category
Proportion of respondents saying yes for diverting traffic to

Kollam
Weighted proportion of respondents saying yes for diverting
traffic to Kollam
Estimate taken by Deloitte (Null hypothesis H0: p = 0.5)
Std. Error of estimate
Calculated value of t statistic
prob- value (significance)
Note: While the sample size was only 2 respondents for this category, the two entities in sample
accounted for more than 40% of cargo for the category. Accordingly, we have estimated that 50% of this
traffic can be assumed to be diverted to Kollam port. Therefore, instead of taking the actual sample
proportion of 1.0 for hypothesis testing, we have taken weighted proportion of 0.4044 to validate the
assumption.
Result
As seen from the table, the prob-value for Null Hypothesis (H0: p = 0.5) to be true comes to be 0.8289.
This value is far greater than the significance level of 0.05 and hence we can accept the Null hypothesis
and accordingly expect 50% of traffic for this category to be diverted to Kollam Port.
Therefore, expected Traffic = 17368.1 (50% of 34736.14) tons
Table 2: Hypothesis test for Textile and related Cargo from Madurai
Summary Statistics on Textile and related Cargo from Madurai
Particulars
Value
Units / remarks
154
Nos.
13
Nos.
Total Traffic
27736.5
tons
16220.5
tons
Page 93 of 158

Kollam
0.7317
Sample proportion
0.75
Assumed proportion
0.1231
From sample
-0.1624
From sample
0.8737

Result
Table 3: Hypothesis test for Textile and related Cargo from Theni
Summary Statistics on Textile and related Cargo from Theni
Particulars
Value
Units / remarks
17
Nos.
Nos.
Total Traffic
9057.2
tons
8505.3
tons

Kollam
0.2614
Sample proportion
0.30
Assumed proportion
0.1661
From sample
-0.2322
From sample
0.8240

Result
Page 94 of 158
Table 4: Hypothesis test for Rubber Export

Summary Statistics on Rubber Export
Particulars
Value

Total Traffic from Hinterland
Nos.
27978
tons
1220
tons
0.0526
Sample proportion
0.053
Assumed proportion
0.0998
From sample
-0.0041
From sample
0.9969

Kollam
Units / remarks
Result
and accordingly expect 5.3% of traffic for this category to be diverted to Kollam Port.
Therefore, expected Traffic = 1482 (5.3% of 27978) tons
Table 5: Hypothesis test for Rubber Import

Summary Statistics on Rubber Import
Particulars
Kollam
Page 95 of 158
Value
Units / remarks
4
Nos.
22160
tons
9850
tons
0.0629
Sample proportion
0.063
Assumed proportion
0.1214
From sample
-0.0004
From sample
0.9996
Result
Table 6: Hypothesis test for Cashew Kernels
Summary Statistics on Cashew Kernels
Particulars
Value
Units / remarks
6
Nos.
Total Traffic
70000
tons
27931
tons

Kollam
0.9474
Sample proportion
0.85
Assumed proportion
0.0912
From sample
1.0692
From sample
0.3338
Result
Therefore, expected Traffic = 59400 (85% of 70000) tons
Table 7: Hypothesis test for Cashew Nut Shell Liquid

Summary Statistics on Cashew Nut Shell Liquid
Particulars
Total Traffic
Page 96 of 158
Value
Units / remarks
1
Nos.
7813
tons

Kollam
5000
tons
0.7246
Sample proportion
0.80
Assumed proportion
0.3159
From sample
-0.2386
From sample
0.8509

Result
Table 8: Hypothesis test for Marine Products

Summary Statistics on Marine Products
Particulars
Value
Units / remarks
6
Nos.
100318
tons
8400
tons
0.1541
Sample proportion
0.15
Assumed proportion
0.1474
From sample
0.0280
From sample
0.9787
Total Traffic
Kollam
Result
Page 97 of 158
Table 9: Hypothesis test for Spices

Summary Statistics on Spices
Particulars
Value

Total Traffic
Nos.
23938
tons
365
tons
0.1096
Sample proportion
0.125
Assumed proportion
0.1397
From sample
-0.1103
From sample
0.9175

Kollam
Units / remarks
Result
Table 10: Hypothesis test for Raw Cashew Nuts

Summary Statistics on Raw Cashew Nuts
Particulars
Value
Units / remarks
6
Nos.
372497
tons
65600
tons

Kollam
0.7927
Sample proportion
0.80
Assumed proportion
0.1655
From sample
-0.0442
From sample
0.9664
Total Traffic

Page 98 of 158
Result
Therefore, expected Traffic = 297997.6 (80% of 372497) tons
Table 11: Hypothesis test for Newsprint

Summary Statistics on Newsprint
Particulars
Value
Units / remarks
2
Nos.
8680
tons
6950
tons
0.7597
Sample proportion
0.70
Assumed proportion
0.3021
From sample
0.1976
From sample
0.8757

Kollam
Result
Estimated figures based on judgemental analysis

Some of the commodities are handled completely by 1 or 2 players in the hinterland of Kollam port.
These players form the entire population for each of such categories and we have taken their opinions
on their willingness to divert the traffic to Kollam port. Therefore, for these figures there is no need for
statistical analysis as the entire population rather than a sample has been covered through primary
survey. Hence, traffic suggested by these players, has been taken as baseline figure for such
commodities. The figures are furnished in Table 12 below:
Page 99 of 158
Table 12: Estimated figures A

Estimated Figures A
Commodity
No. of
players
Traffic
Handled
(tons)
Willingness to divert traffic

to Kollam port
Baseline figure
taken (tons)
Titanium Di Oxide
9200
Yes
9200
Selemanite
400
Yes
400
Blood Bags
140
Yes
140
Clay
40000
Yes
40000
Further, for some of the categories, all the players in the sample for particular category stated their
willingness to divert the respective traffic to Kollam port. This imples, that all the traffic from industry for
that particular category will be diverted to Kollam port. However, based on inputs received and
qualitative analysis of other factors, we have taken a little smaller than suggested traffic as baseline
figures for such commodities. The figures are furnished in Table 13 below:
Table 13: Estimated figures B
Estimated Figures B
Commodity
No. of
respondents
Traffic Handled (tons)

by sample entities
Total traffic
potential (tons)
Baseline figure
taken (tons)
Timber ( Kerala)
24000
48000
48000
Timber ( Tamil
Nadu)
1500000
128000
25600
Page 100 of 158
Annexure 3 : Growth rate taken for the various commodities

Commodities from primary hinterland
Page 101 of 158
Page 102 of 158
Commodities from secondary hinterland
Page 103 of 158
Annexure 4 : Traffic projections for various commodities

Projections of major commodities from primary hinterland
Raw cashew nuts ( imports)
The Indian cashew industry lags in competitiveness due to its reliance on imported raw cashew
kernels and scattered non-mechanized processing sector that depends on labourers. India imports
more than half of its requirement of raw cashew, owing to the poor productivity of its cashew
plantations. For e.g the productivity of Vietnam is 2.8 tonne cashew nuts per hectare, while the
average productivity in India is only 663 kg per hectare
The industry is dominated by small-scale, single-owner or family-owned businesses. Over two-thirds
of the processing units are in Kerala, while the remainder are scattered across other states.
Together, these units have an annual processing capacity of over 800,000 tonne
Figure 10 : Import trends of countrys raw cashew

nuts
Source: www.dacnet.nic.in and Cashew Export
Promotion Council of India
Figure 11 : Import trends of raw cashew nuts

through Cochin Port
Source: Cochin Port Trust
The import of raw cashew nuts into India rose from 2.49 lakh tonnes in 2000-01 to a 6.05 lakh
tonnes in 2008-09, showing a CAGR growth rate of around 11%. The lion share of imported raw
cashew (upto 60%) was utilized by processing units in Kerala which has its hub in Kollam.
In future context, the shortage of indigenously produced cashew nuts would compel the units to
import raw cashew nuts to operate their units to optimum level.
Accordingly, one can safely assume a y-o-y growth rate of around 5% in the next five years on a
lower estimate basis.
The Kerala government has set up a special agency for promoting cashew cultivation, which aims at
achieving a quantum jump in the availability of raw cashew nuts in the State. Efforts are on to
increase the cashew nuts yields which hopefully would bear results in the next five years.
Accordingly for obtaining the low, medium and high growth scenario for the purpose of forecasting
of the traffic, the following has been the indicative growth rates taken.
Scenario
Growth rate
2010201620212026203120362015
2020
2025
2030
2035
2040
Low
5%
3%
3%
3%
3%
3%
Page 104 of 158
Medium
High
8%
10%
5%
6%
5%
6%
5%
6%
5%
6%
5%
6%
The growth of raw cashew nuts import cargo in Thankassery port has been worked out as under
In000 tonnes
Baseline
Scenario
2015
2020
2025
2030
2035
2040
open cargo
as on 2009
298
Low
399
462
536
621
720
835
Medium
472
603
769
982
1,253
1,599
High
527
706
944
1,264
1,691
2,263
Cashew kernels (exports)

The last seven years CAGR growth rate of cashew kernel exports for Kerala has been around 4.8%
and that for India has been 3.62%. Kerala alone accounts around 60% of the cashew kernel exports.
Figure 12 : Export trends of countrys cashew kernels

Source: www.dacnet.nic.in and Cashew Export
Promotion Council of India
Figure 13 : Export trends of raw cashew nuts

through Cochin Port
Source : Cochin Port Trust
The ratio of export-domestic cashew nut consumption, which once stood at 60:40, has now reached
40:60 due to growing domestic cashew consumption. In 2003, India exported 1.26 lakh tonnes of
cashew kernels and consumed 88,426 tonnes in the domestic market. In 2008, the country exported
1.10 lakh tonnes of kernel and consumed 1.92 lakh tonnes in the domestic market
Increase in the domestic per capita income; rise in the number of middle-class households;
increased use in sweets, confectionary, etc; and rapid growth of modern retail outlets are some of
the main reasons for this growth story in domestic consumption.
Processing capacity by cashew entrepreneurs has gone up substantially from eight lakh tonnes a
year to 13 lakh tonnes. But the total exports are consistent.
Page 105 of 158
Accordingly one can assume a consistent quantum of exports to the tune of around 60,000 tonnes
for the next five years and given the trend of a strong domestic consumption based on higher per
capita income.
In subsequent years, based on the assumption that the domestic consumption will increase, the
exports will decrease and the same has been reflected over the slab period of 5 years taken till
2040.
The following is the growth pattern taken in a block of 5 years for cashew kernel exports
Scenario
Growth rate
2010201620212026203120362015
2020
2025
2030
2035
2040
Low
-3%
-3%
-3%
-3%
-3%
-3%
Medium
-1%
-1%
-1%
-1%
-1%
-1%
High
0%
0%
0%
0%
0%
0%
The growth of cashew kernel export cargo in Thankassery port is indicated below
Baseline
open cargo
as on 2009
Scenario
In000 tonnes
2035
2040
2015
2020
2025
2030
49
42
36
31
27
23
Medium
56
53
51
48
46
43
High
59
59
59
59
59
59
59 Low
Marine food exports

The marine exports growth rate over the past five years has been at a CAGR of around 7.21% for
Kerala and 7.91% for India.
Figure 14 : Export trends of countrys marine food

Source: MPEDA
Page 106 of 158
Figure 15 : Export trends of marine food through

Cochin Port
Source: MPEDA
The quantum of exports from Kollam is from a group of around 6 exporters who have indicated a
positive export business growth outlook to the range of around 20 to 30%.
However a very conservative growth rate has been taken for forecasting purposes inspite of the very
positive outlook and a very high growth rate predicted by the marine exporters
The following is the growth pattern taken in a block of 5 years for marine food exports
Scenario
Growth rate
2010201620212026203120362015
2020
2025
2030
2035
2040
Low
1%
1%
1%
1%
1%
1%
Medium
3%
3%
3%
3%
3%
3%
High
4%
4%
4%
4%
4%
4%
The growth of marine export cargo in Thankassery port is indicated below
2015
2020
2025
2030
2035
In000 tonnes
2040
Baseline
open cargo
as on 2009
Scenario
15
Low
16
17
18
19
20
21
Medium
18
21
24
28
33
38
High
19
23
28
34
42
51
Timber logs
The import of logs by the Kollam / Trivandrum timber dealers through Tuticorin port is to the extent
of around 48,000 to 50,000 tons per annum. The quantum of these imports is expected to be more
or less steady for the next fifteen years. The growth trends are primarily based on the feedback
indicated by the timber importers.
The following is the growth pattern taken in a block of 5 years for timber logs from the primary
hinterland ( Kerala importers)
Scenario
Growth rate
2010201620212026203120362015
2020
2025
2030
2035*
2040*
Low
1%
1%
1%
1%
1%
1%
Medium
2%
2%
2%
2%
2%
2%
High
3%
3%
3%
3%
3%
3%
* - For the particular block of the five years, growth has been considered only for the years of, 2035 and
2040
The growth trends of timber cargo from the primary hinterland in Thankassery port is indicated below
Page 107 of 158
In000 tonnes
2035
2040
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
48
Low
51
54
56
59
60
60
Medium
54
60
66
73
74
76
High
57
66
77
89
92
95
Sand
Due to the restrictions in mining of sand in Kerala, sand is usually sourced through other states
including Gujarat. Presently sand is being moved from Gujarat to Thankassery through coastal
movement. As per the feedback obtained, the sand shipments will tend to increase. However the
growth has been kept on a conservative basis and has been increased as per the respective scenario
growth rate only once in the block of five years.
The following is the growth pattern takenScenario
Growth Rate
in %
Low
Medium
High
3%
5%
8%
The growth trends of sand in Thankassery port is indicated below

Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
In 000 tonnes
2035
2040
72
Low
86
100
116
119
123
126
Medium
96
123
157
165
173
182
High
114
168
247
266
288
311
Waste paper / newsprint

On interaction with some of the paper mills, it was indicated that they are planning expansion of
their production capacities. Given Keralas high literacy rates, the extensive reading habits of the
local population one would definitely perceive an increase in the imports. However due to the
limited numbers of such importers in the hinterland the growth rate applied is only to the extent of
once in the block of five years. The following is the growth pattern taken-
Page 108 of 158
Scenario
Growth Rate
in %
Low
Medium
High
5%
15%
20%
Accordingly the growth trends of waste paper / newsprint in Thankassery port is mentioned below
In 000 tonnes
Baseline
open cargo
as on 2009
5.3
Scenario
2015
2020
2025
2030
2035
2040
Low
5.5
5.8
6.1
6.4
6.7
7.1
Medium
6.1
7.0
8.0
9.2
10.6
12.2
High
6.3
7.6
9.1
10.9
13.1
15.8
Spices exports
Pepper
Idukki accounts for around 28,000 tonnes of pepper production which is almost 60 per cent of
pepper production from the Kerala State, with an average CAGR of 16% for the past five years.
Figure 16 : Production trends of pepper in Idukki district

Source: Spices Board
Of the 28,000 tonnes of pepper produced in Idukki, around 17,000 to 18,000 tonnes (60-64%) are
exported.
The Spices Board has got the approval from the National Horticulture Mission for re-plantation and
rejuvenation of pepper in Idukki district for five years from 2009-10. The objective of the scheme is
to increase the production to one lakh tonnes in five years from the present 28,000 tonnes in Idukki,
which accounts for 60 per cent of pepper production from the State. The scheme is to replant old
Page 109 of 158
and senile as well as disease affected pepper vines with disease free high yielding pepper vines in
about 68,000 hectares
Accordingly by 2014, under ideal conditions and given the serious commitment of the Spice Board,
one may foresee an increase in pepper production in Idukki to the tune of 1,00,000 tonnes. On a
realistic note, given the various constrains in implementation of schemes, the increase in the
production may not reach one lakh tonne but say around 75,000 tonnes.
Accordingly if we maintain that 60% of the 75,000 tonnes is exported, by 2014, the actual exports
from Idukki may reach to the level of 45,000 tonnes.
In terms of future growth rate of pepper, the experts in the trade have indicated that a y-o-y growth
rate of around 8 % can be expected; however for the purpose of the traffic projections the following
growth rate has been assumed.
Scenario
20102015
2%
4%
6%
Low
Medium
High
Baseline
open cargo
as on 2009
Growth rate
202120262025
2030
2%
2%
4%
4%
6%
6%
20162020
2%
4%
6%
Scenario
2.61 Low
2015
2020
20312035
2%
4%
6%
2025
20362040
2%
4%
6%
2030
In 000 tons
2035
2040
2.9
3.2
3.6
4.0
4.4
4.8
Medium
3.3
4.0
4.9
6.0
7.2
8.8
High
3.7
5.0
6.6
8.1
9.8
12.0
Cardamom and Spice Oils & Oleoresins

The quantum of exports of the referred commodities expected through Kollam is not much.
The all India CAGR export rate for both Cardamom and Oils & Oleoresins is 4% in the last four years.
Since Kerala accounts for 30% and 80% of the Cardamom and Oils & Oleoresins exports, we can
safely assume a growth rate of 4% y-o-y for the purpose of traffic estimation in medium scenario.
Baseline
open cargo
as on 2009
Scenario
0.30 Low
2015
2020
2025
2030
2035
In 000 tons
2040
0.33
0.37
0.41
0.46
0.50
0.55
Medium
0.38
0.46
0.56
0.70
0.82
1.00
High
0.42
0.56
0.75
1.07
1.35
1.80
Rubber ( exports & imports)
Page 110 of 158
Kerala accounts for almost 91 to 92% of the all India rubber production. Accordingly a bulk of the
exports is routed through Kerala.
Figure 17 : Exports trends of natural rubber ( Kerala vis--vis India)

Source: Rubber Board
While the production of natural rubber has witnessed a CAGR growth rate of 5.14% from 2000-01 to
2006-07; the exports of natural rubber have been fluctuating.
The export quantum also depends on the price it fetches at the international market, which is very
dynamic. Hence any increase in the international rubber market will witness an increase in the
exports.
It would be thus a bit difficult to estimate the exact forecast for the rubber commodities both
import and export of natural rubber, synthetic and reclaimed rubber.
Given the volatile EXIM nature of rubber, the following conservative growth estimate has been
taken
Scenario
Low
Medium
High
20102015
2%
5%
7%
20162020
2%
5%
7%
Growth rate
202120262025
2030*
2%
2%
5%
5%
7%
7%
20312035*
2%
5%
7%
20362040*
2%
5%
7%
* - For the particular block of the five years, growth has been considered only for the years of 2030,
2035 and 2040
The growth of exports (natural rubber and reclaimed rubber) and imports (natural rubber and synthetic
rubber) cargo in Thankassery port is indicated below
Imports
In 000 tonnes
Page 111 of 158
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
1.47
Low
1.62
1.79
1.97
2.05
2.10
2.14
Medium
1.97
2.51
3.20
3.36
3.53
3.71
High
2.20
3.09
4.33
4.63
4.96
5.31
Exports
In 000 tonnes
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
1.40
Low
1.58
1.74
1.92
1.96
2.00
2.04
Medium
1.87
2.39
3.05
3.21
3.37
3.53
High
2.10
2.94
4.13
4.42
4.73
5.06
Cashew Nut Shell Liquid (exports)

Cashew nut shell liquid (CNSL) is a natural chemical product, which finds application in the paint,
automobile and foundry industry. However, exports of the commodity had been languishing for
several years due to low global prices and the difficulty in handling and transporting the highly
corrosive chemical.
CSNL is a by-product of the cashew nut processing. In most cases due to the nature of the industry,
CNSL is not actively sourced during the conversion. CNSL is produced in the 'steam cooking method
'of conversion, which cooks the hard shell in hot steam before taking out the nut. The shell is not
destroyed unlike the alternate method of 'drum roast'.
CSNL production is increasing as more processors are turning to the 'steam cooking method' of
processing instead of the "drum roast method'.
Over the past 18 years, the exports of CSNL on an all India level basis have shown an increase to the
tune of 1.17%.
Page 112 of 158
Figure 18 : Exports trends of Cashew Nut Shell Liquid ( Kerala vis--vis India)
Source : www.dacnet.nic.in and Cashew Export Promotion Council of India
However export of cashew nut shell liquid, which is a by-product of the cashew nut processing
industry, is recording a commendable increase thanks to government incentives in the form of duty
credit. With the government including CNSL in the Vishesh Krishi Upaj Yojana (VKUY), exports has
been looking good.
The US continues to be the major market and imports nearly 95-98% of the Indian commodity.
However, new markets like China, Korea, Japan and the UK are catching up.
Accordingly, a conservative y-o-y increase rate of 4% has been taken for the first five years under
the medium growth scenario and the same being stabilized in the next 5 years and again a 4%
increase in the next 10 years. The rationale behind the increase in the 4% in the first five years stems
from the initiatives of the government and the willingness of the cashew processing units to shift to
steam cooking method and realization of the export potential of CSNL.
Scenario
Low
Medium
High
20102015
2%
4%
6%
20162020
0%
0%
0%
Growth rate
202120262025
2030
2%
0%
4%
0%
6%
0%
20312035
2%
4%
6%
20362040*
0%
0%
0%
Accordingly, the growth of CSNL cargo in Thankassery port is indicated below

Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
In 000 tonnes
2035
2040
6.50
Low
7.18
7.32
7.92
8.24
8.91
8.91
Medium
8.22
8.22
10.01
10.01
12.17
12.17
High
9.22
9.22
12.34
12.34
16.51
16.51
Clay
Clay is primarily sold by English India Clays which has demonstrated a dynamic growth over the past
4 years, with close to 14 per cent CAGR. But movement of any mineral (particularly export) is
subject to vagaries of market and also determined by Government policies. Clay has a wide range of
applications spanning diverse segments including paint, paper, inks, plastics, fiberglass, catalysts,
etc. & therefore has a good market potential
Page 113 of 158
Considering that the clay movement is dependent on just one company, a conservative growth rate
of 6% in the first year of each of the 5 year slab has been taken to enable our forecasts of normal
scenario to hold good in event of unforeseen circumstances.
The forecast has been applied for both coastal and export movement of clay.
However with the expected commissioning of Vizhingham port and the company location being
based in Trivandrum, after 2016, it has been assumed that the export cargo would be diverted to
Vizhingham.
The growth of clay cargo in Thankassery port is indicated below

Clay ( EXIM)
Scenario
10
Low
10
Medium
11
High
11
13
10
Clay ( Coastal)
Baseline
open cargo
as on 2009
30
Scenario
2015
2015
2020
2025
2020
2030
2025
2035
In 000 tonnes
2040
Baseline
open cargo
as on 2009
2030
2035
2040
Low
31
32
34
35
36
38
Medium
32
34
36
38
40
43
High
32
35
38
41
44
48
Titanium Di Oxide
It represents the exports from two companies viz Kerala Minerals & Metals Ltd (KMML) and
Travancore Titanium Products Ltd (TTPL). TTPL have just begun with exports to the tune of 2000
tons p.a. and are anticipating an increase of exports to around 4000 tons after 5 years. We can
assume the same to be constant thereafter, since market is unpredictable. In terms of exports from
KMML , we have assumed a 6% growth in the first year of the five year slab period in absence of
sufficient information.
Since TTPL is based in Trivandrum, we are assuming the cargo for Thankassery will be diverted to
Vizhingham, once the same is commissioned.
The growth of Titanium di Oxide in Thankassery port is indicated below
In000 tonnes
Page 114 of 158
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
Titanium
Di-Oxide
(KMML)
7.2
Low
Medium
7.5
7.6
7.8
8.1
8.1
8.6
8.4
9.1
8.8
9.6
9.1
10.2
High
7.8
8.4
9.1
9.8
10.6
11.4
Titanium
Di-Oxide
(TTPL)
2.0
Low
2.06
Medium
2.10
0.89
High
2.14
2.49
2.00
Finished fertilizers (Urea and Muriate of Potash)

Domestic capacities in Kerala and production of fertilizers have stagnated for more than a decade.
The demand for fertilizers on the other hand has been rising. This has resulted in dependence on
imports of finished fertilizers. , thereby increasing the subsidy requirement further.
Imports of Muriate of Potash through Cochin port over the last five years grew at a CAGR of 14.72%,
while the y-o-y growth of urea in 2008-09 was more than 150% over the previous year.
Kerala has been known to have shortage of fertilizers and is dependant on external sources for its
fertilizers needs.
Based on the above considerations and the cargo indicated by Aspinwall, a conservative growth rate
of around 5% under medium growth scenario has been taken for the purpose of traffic forecast.
Scenario
Low
Medium
High
20102015
2%
5%
8%
20162020
2%
5%
8%
Growth rate
202120262025
2030
2%
2%
5%
5%
8%
8%
20312035*
2%
5%
8%
20362040*
2%
5%
8%
* - For the particular block of the five years, growth has been considered only for the years of 2035 and
2040.
Accordingly the likely growth of urea and muriate of potash is indicated below
In000 tonnes
Finished
Page 115 of 158
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
125
Low
141
155
172
189
193
197
fertilizers
Medium
168
214
273
348
366
384
High
198
291
428
629
680
734
Cement
The growth of the cement market is taken as 1.3% more than the country GDP growth rate. In
addition, if we consider the regional market of Kerala, the GDP growth rate has been quite strong
with a y-o-y growth rate of more than 8% for the past few years.
Accordingly, given the spurt of construction activities and other ancillary infrastructure projects
being planned in the region, the cement consumption is bound to increase.
For the purpose of calculation, the growth rate under the normal scenario has been taken at a
conservative level of 7%.
Scenario
Low
Medium
High
20102015
3%
7%
9%
20162020
3%
7%
9%
Growth rate
202120262025
2030
3%
3%
7%
7%
9%
9%
20312035
3%
7%
9%
20362040
3%
7%
9%
Based on the above, the likely growth trends of cement is indicated below
Cement
2015
2020
2025
2030
In 000 tonnes
2035
2040
Baseline
open cargo
as on 2009
Scenario
600
Low
637
738
855
992
1,150
1,333
Medium
687
963
1,351
1,895
2,658
3,728
High
713
1,097
1,688
2,597
3,995
6,147
Projections of major commodities from secondary hinterland

Timber logs
On interaction with some of the leading indenting agents who arrange for the procurement of
timber logs on behalf of the saw mills, it was indicated that a significant bulk of around 1.2 to 1.5
lakhs is routed towards Shencottai However of these 1.5 lakhs, not all cargo is expected to be
diverted towards the Kollam port, since the infrastructure at Tuticorin is already well established.
Page 116 of 158
Figure 19 : Import trends of timber in the districts of Kanyakumari, Thiruneveli, Virudhunagar, Tuticorin
and Madurai
Source: EXIM information obtained from Shivsanth Consultancy, Tuticorin
A certain percentage of the cargo (of 1.5 lakh tons) can be diverted initially and based on the
positive feedback, the diversion of the cargo will only increase (under the presumption that the
operations at Thankassery are efficient). However one does not foresee the entire diversion of cargo
and the importers may at best divert cargo to a maximum extent of 50% of the baseline cargo.
The likely growth trend of timber logs from Tamil Nadu hinterland to Thankassery port is indicated
below
In000 tonnes
Baseline
Scenario
2015
2020
2025
2030
2035
2040
open cargo
as on 2009
128
Low
14
23
25
27
30
30
Medium
22
44
51
59
68
68
High
31
76
92
110
132
132
Marbles, tiles
The growth rate considered under medium scenario is 15% in the first year of the five year slab period.
The likely growth trend of marbles from Tamil Nadu hinterland to Thankassery port is indicated in the
subsequent table.
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
18
Low
20
22
24
26
Page 117 of 158
In 000 tonnes
2035
2040
29
35
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
Medium
21
24
27
31
36
48
High
22
26
31
37
45
64
Food/Agricultural Products & Spices

This category covers variety of food and agricultural products and spices as well. The main products
are maize, corn, chillies, onions, gherkins, papads, etc.
Three companies, viz. Concord Exports, C.M.S. Balan & Co. and Deva Chitra Exports, who have
expressed their interest in using Thankassery port contribute to nearly 90% of the total food &
agricultural products and spices exports for Madurai district. The growth of their export volumes is
extra-ordinarily high. It ranges from 25% to almost 100% over the last three years.
Therefore to arrive at more reasonable export growth rate, export statistics for a 5-year period from
2002-03 to 2007-08 from the Agricultural and Processed Food Products Export Development
Authority (APEDA) website have been used to calculate a CAGR for select commodities. The CAGR so
arrived is 6.54%.
The growth rate considered under normal scenario is 7% in the first year of the five year slab period.
The likely growth trend of food / agricultural products and spices from the identified Tamil Nadu
hinterland to Thankassery port is indicated below
2015
2020
2025
2030
In 000 tonnes
2035
2040
Baseline
open cargo
as on 2009
Scenario
17
Low
18
19
20
20
21
22
Medium
19
20
21
23
24
26
High
19
21
23
25
28
31
Textiles, yarns and fabrics

This category of exports from Madurai and Theni districts consists of cotton yarn, garments, fabrics,
made-ups, terry towels, etc.
During 2007-08, Indian Textile and Clothing (T&C) exports were valued at US $ 22.4 billion of which
Textile exports accounted for US $ 12.7 billion and Garment exports accounted for US $ 9.7 billion.
The export earnings from the T&C industry are estimated to increase to US $ 55 billion by 2012.
(Source: Report of the Working Group on Textiles & Jute Industry for the Eleventh Five Year Plan)
T&C exports have increased at a CAGR of 12% from 2005-06 to 2007-08.
During the last fiscal (period April December 2008) T&C exports have missed the expected growth
targets on account of economic slowdown in major T&C export markets.
Page 118 of 158
As a result, during Apr Dec 2008 Indias garment exports grew by 7% (y-o-y) as against a growth of
9% (y-o-y) in FY08 whereas Indias Textile exports declined by 4% (y-o-y) as against a growth of 21%
(y-o-y) in FY08.
The companies so contacted in Tamil Nadu have registered a modest growth and are optimistic over
the long run on their exports. Considering all the above factors, a growth rate( for normal scenario)
of 8% in the first year of the five year slab period has been adopted.
The likely growth trend of textiles, yarns and fabrics from the identified Tamil Nadu hinterland of Theni
and Madurai to Thankassery port is indicated below
In 000 tonnes
Baseline
open cargo
as on 2009
Scenario
2015
2020
2025
2030
2035
2040
23
Low
Medium
24
25
25
27
26
29
28
31
29
34
31
36
High
26
29
32
36
40
45
Cement
Import of Cement is mostly in the district of Madurai. The quantity is close to 16,000 tonnes
annually.
The respondents during the primary survey included S.S.N. Trading Company, Triumph Enterprises
And Triumph Enterprises & Investment Pvt Ltd and they together import 7,000 tonnes of the total
imports and are open to diversion of cargo from the Thankassery port.
The growth rate under normal scenario has been taken at around 10% in the first year of the five
year slab period.
The indicative growth trend of cement routed to Madurai is indicated below
In 000 tonnes
Baseline
open cargo
as on 2009
Scenario
16
Low
17
18
19
19
20
21
Medium
18
19
21
23
26
28
High
18
21
24
28
32
37
Page 119 of 158
2015
2020
2025
2030
2035
2040
Annexure 5 : Route of roads, canal and railway line near

Port area
The drawing of the route profile of roads, canal and railway line near the port area as prepared by Atlas
Survey Engineering Systems is attached below this page
Page 120 of 158
Annexure 6 : Topography and contour map port area

The topography / contour map of the port area as prepared by Atlas Survey Engineering Systems is
attached below this page
Page 121 of 158
Annexure 7 : Bathymetric chart

The Bathymetric chart for the Thankassery harbour dated 13th October, 2007 is attached below this
page
Page 122 of 158
Annexure 8 : Borehole tests results

The borehole details made available by Harbour Engineering Department based on actual bore results at
pile locations number 3 and 15 of cargo wharf are attached below this page
Page 123 of 158
Annexure 9 : Rapid Environmental Impact Assessment

The REIA report prepared by Centre for Environment and Development, Trivandrum is attached below
this page
Page 124 of 158
Annexure 10 : Port development layout

The existing facilities map layout prepared by Harbour Engineering Department, GoK and the
development layout plan prepared by MEC Consultants are attached below this page
Page 125 of 158
Annexure 11 : Financial projections
Page 126 of 158
Annexure 12 : Queries received from DoP on the draft

final report submitted
Page 127 of 158
Annexure 13 : Clarifications submitted in the draft final

report
Page 128 of 158
Table of Contents for the clarifications to the queries raised on the draft DFR
Query 1 - Whether the project costing Rs. 40 Crores in 1st phase for development at Kollam port can
be carried out by the Government of Kerala without private participation a SWOT. ...................... 130
Query 2 - If initial investment is done by government as per point above, whether operation is to be
given on BOT a SWOT. ................................................................................................................. 130
Query 3 - The hinterland connectivity using backwater and waterways, road / rail connectivity may be
included in the DFR with cost ......................................................................................................... 135
Query 4 - Reducing the time to start second phase ( in the draft report it has been indicated as
2025). ............................................................................................................................................ 144
Query 5 - If 20,000 or more DWT vessels need to come what need to be done and costs as the future
requirements are larger vessels to reduce cost of transportation .................................................... 144
Annexures (Profit & Loss Account Statement and Financial Indicator statements)
Scenario
Option
Annexure number
Scenario 1 - The rail and road connectivity cost to be

borne by 100% by the Private Developer through SPV
Option 110
13.1
Option 211
13.2
Scenario 2 - 50% of the rail and road connectivity cost is

to be borne by the Private Developer through SPV and
the balance 50% will be incurred by the Government.
Option 1
13.3
Option 2
13.4
Scenario 3 - 50% of the rail connectivity cost to be borne

by the Private Developer through SPV, while the 100%
road connectivity cost would be borne by the
government
Option 1
13.5
Option 2
13.6
Scenario 4 - 100% of the rail and road connectivity cost

will be borne by the Government
Option 1
13.7
Option 2
13.8
Option 1 - maximum vessel that can berth at the port is of size of 20,000 DWT
10
11
Page 129 of 158
Query 1 - Whether the project costing Rs. 40 Crores in 1st phase for development at Kollam
port can be carried out by the Government of Kerala without private participation a SWOT.
Query 2 - If initial investment is done by government as per point above, whether operation
is to be given on BOT a SWOT.
Findings for the queries 1 and 2
The Government of Kerala has already developed facilities at Thankassery port. In order to facilitate
commercial operations of the port, additional development would be required which entails for an
investment of around Rs. 40 Cr. While the government would build the facilities and would not dilute its
share in the ownership of the port, it would be open to outsourcing of the operation of the port to an
experienced third party.
The pros and cons of such an arrangement has been sought to be reviewed and is indicated below
SWOT analysis for query 1 - Whether the project costing Rs. 40 Crores in 1st phase for development at
Kollam port can be carried out by the Government of Kerala without private participation.
Strengths
Weakness
1. The government would bank upon its own
1. Any delay in approval and subsequent
resources (financial and technical) for building
disbursement of the allotted funds might lead
the facilities and hence would not have to
to possible postponement of the completion
depend on a third party.
of the facilities for phase - 1
2. For obtaining any approval / clearance from a 2. In the event of a third party developing the
particular state regulatory or government
facilities, there would have been checks and
agency, the same would be expedited earlier
penalties based on completion of certain
by the state government through its intermilestones, which would have enforced the
departmental connections. Comparatively the
timely completion of the project. In the
time taken for a private developer in obtaining
proposed scenario, the government cannot
the same set of clearances may be more.
impose a penalty on itself. In the absence of
any strict milestone completion schedule /
3. With the funds already been approved for
deadlines, there might be possibilities of
development of infrastructure facilities etc,
completion work getting delayed.
the disbursement might be faster for the
government than for a private party who
3. Any delays in the completion of the facilities
would be required to raise his own funds for
for Phase I might result into cost over runs
the project.
leading to the project cost increasing from
anywhere between 5 to 25%. This has
4. The entire port has been completed by the
happened in the past for Kollam port.
state government so far and only a Rs. 40
crore investment is pending for phase 1. It
4. In the event of purchase of material handling
makes sense that the government completes
equipments which is part of the Rs. 40 Cr
this (provided it is able to provide funds) and
investment, there might be delay in obtaining
Page 130 of 158
Strengths
hands it in full readiness to a private party for
operating the port instead of asking the
private party to invest a small amount and
getting him to develop the port to that extent.
Opportunities
1. The proposed arrangement would lead to the
government having full control in the
development of the facilities. All assets would
be under government ownership instead of a
small amount of Rs. 40 Crore being under
private ownership.
2. The government can prioritize its plans for
various port facilities and accordingly invest in
the facility deemed to be more important than
the rest.
Weakness
the same due to drafting of the specifications,
floating tender for the purchase, evaluation of
the vendors and the final selection of the
vendor for the purchase. Adherence to the
strict governmental norms may lead to the
delay in the purchase of the equipment.
Accordingly, the purchase of the material
handling equipment would be best left to the
private party selected to purchase and
operate
Threats
1. Development of an infrastructure project
through governmental resources may not
necessarily be aimed for commercial
objectives. The political-social objectives may
over-ride the commercial aspects and the
project may end up as an exercise purely for
employment generation and other social
obligations.
2. There might be a scenario that the funds
allotted to a particular project may get
diverted for another project of similar nature
and to which a higher priority has been
assigned by the State Government. This will
lead to a delay in the development of the
project for which the funds were earlier
earmarked and whose development would
commence only when fresh funds would be
reallocated towards it. Under such
circumstances, the investment is better left to
the private parties to make.
3. Good road connectivity is essential for smooth
evacuation and movement of cargo. Usually
development of approach roads is undertaken
by governmental agencies. In the event the
government falls short of the funds for
approach road development (after having
invested in the development of the port), the
project will run the risk of not yielding
sufficient returns without proper connectivity..
Page 131 of 158
SWOT analysis for query 2 - If initial investment is done by government as per point above, whether
operation is to be given on BOT.
The investment of Rs. 40 Cr (indicated in the earlier point) includes Rs. 20 cr of material handling
equipment. For the operation by the third party, two scenarios may arise
1. Scenario 1 Wherein the private operator is asked to invest in the material handling equipment ( Rs.
20 Cr) and operate the same on BOT basis
2. Scenario 2 The government invests in the material handling equipment and outsources the
working of the same to a private party for a fixed tenure of years.
The underlying factors (pros and cons) for both the scenarios are captured in the table below
Strengths
Weakness
The private party invests in the material
handling equipment of Rs. 20 Cr
1. In the event the private party is made to invest 1. In the event the private operator is asked to
in the material handling equipment also, the
invest money on obtaining the material
application of private capital will free up
handling equipment and installing the same
government funds ( to that extent of the funds
at the port, the perceived costs are high for
infused by private party) for other priority
the government. Besides the borrowing cost,
projects including on access infrastructure and
there is a profit element in the equity portion
protective works relating to port extension
of the financing, which is higher than the debt
and on renovation projects
cost. That is the price the government will
pay for passing off the risk to the private
sector
2. The functions can be performed at a price that
is substantially lower than the cost of
conducting them in the public sector
2. The government would have a lesser control

in the day to day operations. This can
however be mitigated by putting in adequate
safeguards in the concession agreement.
3. There would be a large field for competitive

bidding
3. The need for continuing close government

regulation and oversight
4. The transfer of risks for construction, finance,

and operation of the facility to the private
operator
5. The attraction and use of possible foreign
investment and technology
Common factors for both the scenarios
6. Considering that the government would not
Page 132 of 158
Other common factors for both the scenarios

4. In the event of traffic falling below the
have the requisite experience in port

operations, outsourcing of the same to an
experienced third party operator would
ensure that the respective capabilities (that of
the government and of the private party)
would be leveraged appropriately.
7. Outsourcing of operations to an experienced
operator would lead to efficiency and smooth
functioning of the port.
8. The government can set forth KPI (Key
Performance Indicators) and can penalize the
operator on non adherence of the same.
expected growth, the port operator would

not expect the anticipated revenue growth
and may not recover his costs. In such an
event, after the contract of the private
operator has, there may not be new interest
amongst private parties for the port
operations. This can however be mitigated by
the Government providing additional
incentives for cargo to come to the port and
ensuring its continued existence.
5. Winning bids are sometimes based on
unrealistic financial projections, placing the
sustainability of the agreement in jeopardy
9. The government would not be required to

spend resources on the marketing of the port,
which would be best taken by the private
operator.
10. The port can provide an improved customer
service quality with a competitive price
Opportunities
Threats
1. There are multiple captive cargo generators

interested in the port which will ensure
committed cargo flow to the port. The
Government can give a mandate to the
captive cargo generator that he must also
cater to third party cargo as and when these
also come to the port for loading / unloading.
1. Contracting out may create a monopoly for

those activities, which would be contrary to
the public interest, unless there is a proper
regulatory oversight framework.

2. The proposed model can be one of the PPP
models which can be emulated in other
upcoming ports of the state.
3. Outsourcing the operations to a private party
will allow the government to benchmark or
compare their own operations (existing /
Page 133 of 158
2. Change of political party, change of

organizational control, anti-privatization
backlashes (nationalization), unexpected new
tax regulations, and other governmental
actions could make comprehensive the BOT
scheme much less attractive
3. If the number of potential bidders is limited, a
meaningful comparison of the bids may not
possible. This can be mitigated by a well
planned marketing effort that ensures
future) in with those of what is expected to

be more efficient private sector operations.
That can lead to improvements being made in
the state government port sector operations
maximum participation
4. Potential bidders may form a cartel or
otherwise collude when bidding for a
contract.
5. Opposition by labour trade unions on the
outsourcing of the operations of the port
6. The danger that the private operator will not
properly maintain the facilities under
concession, returning them to the
government in bad condition. This can
however be mitigated by putting in adequate
safeguards in the concession agreement.
7. In the event, the government indicates that
the existing port staff are to be deployed for
port operations, the private operator
company may be saddled with excess labor
and labor costs that cannot be sustained in a
competitive market.
Page 134 of 158
Query 3 - The hinterland connectivity using backwater and waterways, road / rail
connectivity may be included in the DFR with cost
Findings for the query 3 is given below -
1. Viability of inland water connectivity for the Thankassery port

1.1. Background
To assess the possible linkage of the inland backwaters of Kollam to the Thankassery port for the
movement of cargo from the backwaters to the point and vice-versa, a small study was undertaken. This
involved understanding the present cargo movement through the backwaters ( West Coast canal) , the
potential and challenges faced for cargo movement by interacting with the players involved in the cargo
movement through backwaters including barge owners , Kerala State Water Transport Department,
CHAs and other shippers in Kollam.
1.2. Existing cargo movement through west coast canal
The existing NW-3 West Coast Canal is from
Kottapuram to Kollam along with Champakara and
Udyogmandal canals (205 kms) has been declared as
National Waterway (NW-3) in 1993. The bulk of the
major cargo which is moved through National
Waterways-3 consists mostly chemicals and
products such as sulphur, Rock Phosphate,
Phosphoric Acid, salt, coal, zinc, furnace oil and
fertilizers. Cargo movement presently is however
limited to Champakkara and Udyogmandal canals.
Fertilizers and Chemicals Travancore Limited (FACT)
is the major player which is involved in the
movement of bulk cargo from Cochin port to its
Udyogmandal factory and accounts for more than
95% of the cargo movement of the west coast canal.
Some of the other players include Binani Zinc,
Hindustan and Travancore Cochin Chemicals Ltd
(movement of salt, though the same is not frequent.
Figure 20 : West coast canal map
Source : Inland Waterways Authority of India (IWAI)
Over the past few years, it has been observed that there has been a gradual decline in the movement of
the bulk cargo with liquid ammonia cargo (Eloor to Ambalamugal) being shifted to road. The indicative
trends in the cargo movement through the West Coast Canal is indicated in figure 2 below
Page 135 of 158
Figure 21 : Cargo movement trends on the West Coast Canal

Source: Inland Waterways Authority of India (IWAI)
1.3. Infrastructure facilities on the west coast canal

Water terminals have been developed at seven locations across the West Coast Canal including at
Kottapuram, Aluva, Maradu, Viakom, Taneermukham (Chertala), Trikkunnapuzha and Kayamkulam.
Construction of 8th terminal at Kollam was entrusted to CPWD. The water terminal in Kollam is a boat
jetty facility located at Ashramam road near to the KSRTC bus stand.
1.4. Draft constraints
The draft availability is a serious constraint for movement of cargo across the length of the West Coast
Canal. The minimum draft available recorded across the various stretches of the West Coast Canal for
the month of April and May 2010 is indicated in the table below
Depth in meters
Sr. No Name of the Beat
April,
May,
( Chainage in Kms)
2010
2010
1
Champakara Canal (21.5 kms)
Cochin Port - Ambalamugal Factory
1.5
1.5
(0.0-21.5)
2
Udyogmandal canal ( 21 kms)
Cochin Port - Pathlam Bridge
1.5
1.7
(0.0 -21.0)
3
West Coast Canal ( 183 kms)
Kottapuram Terminal - Kochi Port
1.1
1.1
(0.0-34.0)
3- i
Kochi Port - Panavalli Jetty
2.0
2.0
(34.0-54.0)
3- ii
Panavalli - Thanneermukkom Terminal
2.0
2.0
(54.0-77.0)
3- iii
Thaneermukkom Terminal - Alappuzha
2.0
2.0
(77.0-97.0)
Page 136 of 158
Sr. No
3- iv
3- v
3- vi
3- vii
3- viii
Name of the Beat

( Chainage in Kms)
Alappuzha - Thakazi jetty
(97.0-118.0)
Thakkazi jetty - Trikunnapuzha Terminal
(118.0-136.0)
Trikunnapuzha Terminal - Ayiramthengu jetty
(136.0-154.0)
Ayiramthengu jetty - Edapallikotta Junction
(154.0-167.0)
Edapallikotta - Kollam terminal
(167.0-183.0)
April,
May,
2010
2010
1.9
1.9
1.4
1.4
1.2
1.2
1.2
1.2
0.9
0.9
Table 45: Minimum draft recorded across the various stretches of the NW-3
Source: Inland Waterways Authority of India (IWAI)
The expected tidal variation over the least available draft is around 0.4 to 0.5 meters.
1.5.
Existing cargo movement at the Kollam
backwater stretch
With regards to the cargo movement in the Kollam
backwater stretch, it has been given to understand
that over the past one month Kerala Minerals and
Metals Ltd (KMML) is experimenting with the
movement of sand from their Kayankulam mining
areas to their factory at Chavara (distance of around
20 kms). In Kayankulam, sand is mined and the
possibility of the inland movement to the KMMLs
Chavara plant is being tested out.
If successful and stabilized, it is expected that an
annual movement of 200,000 tonnes of sand is
possible from the mining sites of KMML at
Kayamkulam to its mineral separating factory at
Chavara. The movement will be in barges and in bulk
format.
Figure 22 : Overview map of Kollam to Kayamkulam area
Source: Google map
Indian Rare Earths Limited (IREL) also has a processing plant at Chavara. In fact IREL had also tried to
move sand from their mining sites to their factory. Unfortunately for IREL, there is a Foot Over Bridge at
Kovilthottam between the KMML factory and the IREL factory which obstructs the cargo movement.
Hence while KMML is trying to experiment bringing in cargo to its factory from Kayamkuliam, IREL is
Page 137 of 158
unable to move the sand through inland waters due to the low-lying foot over bridge at Kovilthottam.
The height of the bridge from the water is 4.8 m, while the central span width is 9.1m. While the Inland
Waterways WAI had offered to construct a new alternate bridge and later demolish the existing bridge
to allow the cargo movement, the locals have opposed the plan.
1.6. Possibility of movement of the identified cargo of Thankassery port along the Kollam backwaters
The inland water transport is being advocated primarily as a means of cheaper inland transportation
option and also to ease congestion from the roads. The cheaper inland transport would be realized
when the origin and destination have their units near the water body and the cargo is transported to the
barges from the source and later directly transferred to its destination. A classic example is the existing
movement of sulphur, rock-phosphate being moved from the FACT jetty at Cochin port to its factory at
Udyogmandal via the Udyogmandal canal and to its factory at Ambalamedu through the Champakkara
canal. The distance is around 20-25 km and in one barge around 500 to 600 tonnes is moved at an inland
cost of Rs. 70-80 per tonne. At both the ends, the cargo is pumped in/out by a mechanized conveyor
system, without any intermittent double handling making the operations very cost effective.
With the Thankassery port being operational in the near future, the possibility of cargo movement from
the immediate hinterland via the Kollam backwater was explored. The cargo being identified for the
Thankassery port essentially comes from the immediate hinterland of Kollam, Trivandrum and the
coastal cargo (cement) meant for the South Kerala region.
While the cargo generators from Trivandrum hinterland would move by road, the immediate possible
cargo movers for the Thankassery port that would possibly use the inland water system would arise
from the hinterland of Kollam, which are mainly cashew exporters. These exporters have their units
spread across the district and do not necessarily have their units near the river banks unlike IREL and
KMML. In the event the cashew cargo generators use the inland water for the movement of their cargo
to Thankassery port, the last mile connectivity or the first mile connectivity for imports and exports
respectively would be by road movement. The possible savings which has been depicted in section 3.8.5
of this report would be offset by the double handling charges i.e. additional handling charges that the
shipper would be required to pay for the transfer of the container from the truck on the road to the
barge on the inland water. Accordingly it is more prudent for them to directly move their cargo by road
to and from Thankassery port.
For cement, the cargo would be pumped directly from the vessel to the silos from where it will be
bagged and later sent to the various cement depots mainly in the South Kerala region thereby not
necessitating the need of utilizing the inland water mode.
1.7. Other issues
Draft One of the key issues with regards to the movement in the Kollam stretch is the low draft
(0.9m) as recorded in May 2010. Accordingly the cargo movement would have to depend
extensively on the tidal variation which is recorded at 0.4 to 0.5. In the event the cargo
generator utilizes the backwater, he would be required to time his cargo movement based on a
favorable tide factor, which will be very inconvenient and result in time over-runs. Low draft
across the canals is an issue which is being addressed by the authorities concerned by dredging
of the canals. However they are facing opposition from the local fishermen community.
Page 138 of 158
Material handling
In addition, the water terminals so built are ready to use, but do not have the requisite crane
facilities for the container handling. These cranes are possibly available on lease, but these are
charged at Rs.50,000/- to Rs.60,000/ - per day and proves to be unviable for a shipper.
Width
The width of a barge is around 10 meters, while the Kollam stretch of canal varies from 10 m to
20 m thereby making the navigation of the barges highly difficult in stretches which have just
about 10 m width.
Sea-worthiness of barges
The barges plying are mainly inland barges requiring minimum safety and other technical
requirements for getting permissions from statutory authorities for navigation. For using
Thankassery Port these will have to be upgraded to satisfy conditions of sea worthiness which
would involve huge additional costs and regular inspection and statutory clearances which
owners of these barges would not accept being uneconomical.
Integration issues
At the outset, there is no convenient point of entry in the immediate vicinity of Thankassery Port
to connect directly the inland waterways directly in the port. This would require barges to enter
sea and then from approach channel to enter Thankassery Port. Therefore, an integrated
movement from the inland waterway to the sea port does not seem to be a viable option.
1.8. Conclusions
Based on the cargo generation pattern identified for the Thankassery port, it becomes viable for the
cargo generators to use the inland road transport. In addition, the factories are not located on the bank
side and movement through roads is more convenient and inland water movement of cargo for the
Thankassery port would not be advisable. Movement by inland water would only entail multiple, loading
and unloading activities leading to additional charges and hence would increase the logistics cost of the
shipper.
Page 139 of 158
2. Possibility of rail connectivity to Thankassery port

As directed, the possibility of rail connectivity to Thankassery port, it alignment and indicative cost was
also explored.
2.1. Proposed route alignment
In terms of the feasibility of laying down the railway line, a survey was undertaken was undertaken from
the existing rail head to the port and the most probable route (with the minimal disruption to existing
structures) was chalked out. The most probable route that can be used as the rail corridor appears to be
on either the left or the right side of the road from the Police camp to the Thankassery port. The
proposed indicative rail alignment from the existing rail head to Thankassery port is indicated in the
diagram below
Figure 23 : Proposed rail alignment from existing rail head to Thankassery port
Source: Survey conducted by Atlas Survey Engineering System, Kollam
Page 140 of 158
The approximate rail length would be around 1800 meters. For laying the rail line, a corridor of
minimum 20 meters would be required. So approximately around 36000 sq. meter of land would be
required to be acquired (8.89 acres).
As indicated above, this corridor can be either on the right side or the left side of the road from the
Police Camp to the Thankassery port. The limitation however for laying down the rail line is the presence
of significant human habitation in the corridor. The details of such inhabitants and the various
structures are as follows:
Left side of the road
Police Camp to Kochuplamoodu Bridge Junction
1. S.P. Office - 1 number
2. Tiled roof residential Building 5 numbers
3. Two storied shop 6 numbers
4. Two storied residential building 8 numbers
5. Three storied commercial building 1 number
6. Three storied big hotel 1 number
7. Banyan Tree 1 number
Kochuplamoodu bridge junction to Kollam Port
8. Two storied co-operation building - 1 number
9. Empty Area - 1 number
10. Fishermens single storied residential building - 38 numbers
Right side of the road
S.P Office to Kochuplamoodu Bridge Junction
1. Temple
2. YMCA Office with empty frontage
3. S.N. Trust School with empty frontage
4. Congress Bhavan with empty frontage
5. Corowther Masnic hall with empty frontage
6. Vijayalekshmi Cashews Office with empty frontage
7. Tiled roof small shop - 8 numbers.
8. Two storied residential building 2 numbers.
9. Tiled residential building 1 number.
10. Indian Red Cross Society two storied with empty frontage
11. Empty Land
12. Two storied shopping complex
Kochuplamoodu bridge junction to Kollam Port ( May kindly check if the following structures fall
in the stretch of Kochuplamoodu junction to Kollam port)
13. Empty Land
14. Tiled residential building - 2 numbers.
15. Fishermens Single storied residential building - 28 numbers.
16. Empty land
17. Fishermens Single Storied residential building - 72 numbers.
Page 141 of 158
2.2. Cost estimates

The approximate cost details for the proposed rail line would be as follows
Sr
Heading
Parameter
Cost factor
No
In Rs.
million
1
Rail track cost
Cost of developing the rail track per km
80.00
Indicative project cost for covering 1.8 km
from existing rail head to Thankassery
port
2
Land
Cost of acquiring land at market rate per
30.00
acquisition cost acre
Cost of acquiring the indicative 8.80 acres
at market rate
3
Site
Cost of site development per km
5.00
development
Cost of site development per 1.8 km
cost
4
Miscellaneous
Any other miscellaneous cost per km
1.00
cost
Any other miscellaneous cost per 1.8 km
5
Total Project Cost in Rs. Million
Project cost factor

in Rs. million
144.00
266.70
9.00
1.80
421.50
Table 46: Rail connectivity cost details

2.3. Conclusions
Presently the inland movement of the cargo type being generated from the hinterland identified for
Thankassery port is mainly through road since the primary cargo generators are within the radius of 150200 kms from the port. Cargo generators in the secondary hinterland of Tamil Nadu if at all will use the
rail connectivity, though this cargo expected is not very significant due to the same being routed
towards Tuticorin port.
Factors such as the suitability of the alignment, connectivity to the rail mainline, safety aspects etc. are
under the purview of Indian Railways, no comments can be given regarding its feasibility at this stage.
The proposed alignment indicated is purely on the basis of availability of land and its connection to the
Thankassery port. Irrespective of whether the State Government develops the rail corridor directly or
through a BOT operation, it will be totally subject to approval by rail authorities.
The development of a railway line usually comes under the purview of Indian Railways (under the
Central Government). The state government assists in the land acquisition process and other clearances
required. Alternatively, the rail line could be developed by the Private Developer (through JV / SPV
route). If the Developer bears the entire costs, there would be a certain impact on the viability of the
project.
Page 142 of 158
Accordingly, three scenarios has been worked out wherein the rail connectivity cost is apportioned to
various entities and the financial viability has been so calculated. The revised financial viability is
indicated in the financial analysis section of this note.
2.4. Road connectivity
In the draft DFR, under section 5.13 of Port Planning Chapter, evacuation of cargo by 4 possible
approach road options were indicated of which one option was through the Port gate via
Kochuplamoodu junction and then to Police camp ( around 2.5 km). Harbour Engineering Department
have initiated work in the above mentioned route including proposed acquisition of 1 acre of land near
proposed Kochuplamoodu bridge ( being built by PWD) for easy access of trucks from port road to the
proposed bridge. The indicative costing for the approach road has been worked out as under
Sr
No
Heading
Approach road
cost
Parameter
Indicative cost of construction of

approach road to National Highway per
km
Indicative project cost for covering 2.5 km
from port gate to
Land
Cost of acquiring land at market rate per
acquisition cost acre
Cost of acquiring the indicative 1 acre at
market rate
Site
Construction of road drain and foot path
development
(LS)
cost
Electrification of port road ( L.S)
Total Project Cost in Rs. Million
Cost factor
In Rs.
million
36.00
Project cost factor

in Rs. million
90.00
30.00
30.00
7.70
7.50
135.20
Table 47: Approach road cost estimates
The cost estimates obtained from road / rail connectivity has been worked out in the revised financial
analysis and the same is enclosed in the subsequent section.
Page 143 of 158
Query 4 - Reducing the time to start second phase ( in the draft report it has been indicated
as 2025).
Query 5 - If 20,000 or more DWT vessels need to come what need to be done and costs as the
future requirements are larger vessels to reduce cost of transportation
Findings for the query 4 and 5 is given below -
1. Reducing the time to commence second phase

The traffic projections presented in the draft DFR has taken into account cement traffic of around 6 lakh
tons from Ultra Tech Cement to start with. The cement so projected in the draft DFR could cater to the
South Kerala market.
After the submission of the draft DFR, there has been a proposal of interest from Mehta Group for
setting up a cement terminal of 5 lakh tons per annum at Thankassery port.
Presumably the cement traffic indicated by both Mehta Group and Ultra Tech individually will be
sufficient to cater to the South Kerala market and hence the traffic projections so indicated in the draft
DFR should hold good inspite of the additional cement cargo so indicated by Mehta Group.
However if we consider the cement traffic projected by Mehta Group as the additional cargo which
would also be supplied to the immediate hinterland it is observed that phase 2 which was earlier
estimated to commence from 2025 would commence from 2020.
Accordingly the revised traffic projections considering the additional cement traffic of 5 lakhs is
indicated in the table 4 below. The traffic projections indicated in the draft DFR has also been indicated
in Table 5 for comparative purpose.
2015
2020
Low
2,024,156
2,215,084
Medium 2,207,468
2,718,296
High
2,305,530
3,073,216
Table 48: Revised traffic projections in tonnes
2025
2,444,550
3,387,763
4,139,866
2030
2,694,710
4,255,490
5,596,144
2015
2020
2025
2030
Low
1,524,156
1,715,084
1,944,550
2,194,710
Medium
1,707,468
2,218,296
2,887,763
3,755,490
High
1,805,530
2,573,216
3,639,866
5,096,144
Table 49: Traffic projections in tonnes as indicated in the draft DFR
Page 144 of 158
2035
2,965,614
5,343,259
7,504,658
2035
2,465,614
4,843,259
7,004,658
2040
3,275,218
6,805,717
10,280,692
2040
2,775,218
6,305,717
9,780,692
2. Additional cost to be incurred in the event 20,000 dwt or more vessels berth at Thankassery.
Presently, the wharf has an available draught of 6.30 m but the structure is designed for a draught of
10.00 m after dredging, where by vessels of size upto 20,000 DWT can be directly berthed at wharf.
In the draft DFR, the vessel size that would call on Thankassery port has been kept at around 10,000 to
15,000 DWT due to the following reasons.
Thankassery port is primarily positioned as a feeder / coastal port. We do not envisage direct
berthing of international container vessels at Thankassery port given the existence of Cochin port in
the vicinity and the lack of adequate container cargo to attract an international container vessel to
call on Thankassery. Through Thankassery port, the container cargo coming from the hinterland of
Kollam and Trivandrum would be transshipped to Cochin port via feeder vessels of around 10,000
DWT. This would be good example of the hub and spoke arrangement where in the synergies of
both the ports would be utilized to eliminate the surface transportation cost and reducing the
logistics cost of the shipment
Cement is presently accounting for a dominant chunk of the bulk traffic cargo for Thankassery port.
The cement will be sourced from Gujarat. As a general practice, coastal movement of cement
usually occurs in vessel sizes of around 10,000 DWT mainly due to the draft restrictions of the jetties
where cement is loaded in Gujarat. Accordingly for the coastal movement of the cement from
Gujarat to Thankassery, vessels of maximum 15,000 DWT were considered.
In addition, the vessel sizing has also been arrived based on the principle that the existing
infrastructure facilities should be utilized to its full potential. Accordingly, the future investments for
strengthening of jetty, etc has been worked out based on the available operating constraints of the
existing facilities which has a limiting factor on the type of vessels it can accommodate.
In the event a 20,000 DWT vessel berths, the additional cost to be incurred is indicated below. However
the feasibility of the project vis--vis the cost to be incurred and the cargo volume to be generated also
has to be considered.
Sr
No
Parameter
Additional cost for strengthening of the existing berth
Project cost factor in

Rs. million
44.00
2
Cost of dredging in Phase 1
3
Total
Table 50: Additional cost to be incurred for berthing of 20,000 DWT vessels.
76.00*
120.00
Maintenance cost of dredging per year ( @ 5% of capital dredging cost)

* - Cost pre-poned from Phase 2 to Phase 1
Page 145 of 158
6. Financial viability analysis

The financial analysis of the project has been re-worked based on:
the revised traffic as indicated in table 48 Addition of the rail and road connectivity cost as indicated in table 46 and 47
Addition of cost for strengthening and dredging to accommodate 20,000 DWT vessels as indicated in
table 50.
While the additional cost to accommodate the 20,000 DWT vessels would be required to be borne by
the Developer, the rail / road connectivity cost can either be fully incurred either by the State
Government or by the private developer. Alternatively the rail / road connectivity cost can be
apportioned equally between the government agency and the private developer. In case the private
developer needs to invest for the road / rail connectivity, the same will be routed through a SPV.
Accordingly, based on the various permutations / combinations of the investment pattern for road / rail
connectivity, the following scenarios have been considered.
Scenario 1
The rail and road connectivity cost to be borne by 100% by the Private Developer
through a SPV
Scenario 2
50% of the rail and road connectivity cost is to be borne by the Private Developer
through a SPV and the balance 50% will be incurred by the Government.
Scenario 3
50% of the rail connectivity cost to be borne by the Private Developer through a SPV,
while the 100% road connectivity cost would be borne by the government
Scenario 4
100% of the rail and road connectivity cost is borne by the Government
The financial viability analysis for the revised traffic figures based on the above four scenarios has been
worked out. In addition, a comparative analysis has been undertaken for the above referred scenarios
considering the following two options 1. Option 1 - Maximum vessel size berthing at the jetty is 20,000 DWT
2. Option 2 - Maximum vessel size berthing at the jetty is 15,000 DWT.
A diagrammatic representation of the financial analysis so undertaken is indicated below
Page 146 of 158
The summarized financial viability findings and our recommendations are indicated below. The detailed
financial workings (Profit & Loss account, financial indicators statement) are enclosed as Annexures 3.1
to 13.8 at the end of this section.
3.1. Scenario 1 - The rail and road connectivity cost to be borne by 100% by the Private Developer
through a SPV
Description
Option1
Option 2
( maximum vessel size of
( maximum vessel
20,000 DWT)
size of 15,000 DWT)
8.70
9.35
(440.52)
(298.08)
17
17
DSCR Consolidated
1.29
1.43
3.2. Scenario 2 - 50% of the rail and road connectivity cost is to be borne by the Private Developer
through a SPV and the balance 50% will be incurred by the Government.
Description
Option1
Option 2
( maximum vessel
20,000 DWT)
size of 15,000 DWT)
9.77
10.61
(190.31)
(46.59)
16
16
DSCR Consolidated
1.55
1.69
3.3. Scenario 3 - 50% of the rail connectivity cost to be borne by the Private Developer through SPV,
while the 100% road connectivity cost would be borne by the government.
Description
Option1
Option 2
( maximum vessel
20,000 DWT)
size of 15,000 DWT)
10.10
10.99
(129.63)
14.49
16
15
DSCR Consolidated
1.62
1.77
3.4. Scenario 4 - 100% of the rail and road connectivity cost will be borne by the Government.
Description
Option1
Option 2
( maximum vessel
20,000 DWT)
size of 15,000 DWT)
11.35
12.51
61.80
205.09
15
15
DSCR Consolidated
1.88
2.10
Page 147 of 158
3.5. Conclusions
Based on the above analysis, only in Scenario 4, the project becomes viable for a private developer.
Therefore the project will be viable to a private developer only if the connectivity cost of the road and
rail (if required) are borne by the Government. The developer will be required to put in the additional
investment required for strengthening the existing berth and dredging to accommodate 20,000 DWT
vessels. However from the financial analysis it is observed that the profitability of catering to a 15,000
DWT vessel is more attractive than for 20,000 DWT vessels.
Page 148 of 158
Annexure 13.1
Scenario 1 - The rail and road connectivity cost to be borne by 100% by the Private Developer through
SPV
Option 1 - maximum vessel size of 20,000 DWT
Page 149 of 158
Annexure 13.2
Scenario 1 - The rail and road connectivity cost to be borne by 100% by the Private Developer through
SPV
Option 2 - maximum vessel size upto 15,000 DWT
Page 150 of 158
Annexure 13.3
Scenario 2 - 50% of the rail and road connectivity cost is to be borne by the Private Developer through
SPV and the balance 50% will be incurred by the Government.
Page 151 of 158
Annexure 13.4
Scenario 2 - 50% of the rail and road connectivity cost is to be borne by the Private Developer through
SPV and the balance 50% will be incurred by the Government.
Page 152 of 158
Annexure 13.5
Scenario 3 - 50% of the rail connectivity cost to be borne by the Private Developer through SPV, while
the 100% road connectivity cost would be borne by the government
Page 153 of 158
Annexure 13.6
Scenario 3 - 50% of the rail connectivity cost to be borne by the Private Developer through SPV, while
the 100% road connectivity cost would be borne by the government
Page 154 of 158
Annexure 13.7
Scenario 4 - 100% of the rail and road connectivity cost will be borne by the Government
Page 155 of 158
Annexure 13.8
Scenario 4 - 100% of the rail and road connectivity cost will be borne by the Government
Page 156 of 158
Caveats
Reports and communication are for the sole use of the client
All communications, reports and information provided by DTTIPL to the client, its employees or agents,
whether in writing or oral are provided solely for the use of the Client in connection with the services
specified herein, and shall not be used for any other purpose or referred to in any document or made
available to any other person. The report and the information are absolutely confidential and any
reproduction, copying or otherwise, quoting of the report or any part thereof can be done only with
prior permission in writing of DTTIPL. The report is intended only for the sole use and information of
Client, for the purpose set out earlier in this agreement. No other party is entitled to rely on the DTTIPL
reports or advice for any purpose whatsoever. DTTIPL disclaims any responsibility to any third party for
any decision taken based on the report. The Client understands and agrees that written advice and final
reports shall take precedence over any advice and interim report. DTTIPL will not be responsible for
updating any opinions, advice or reports subsequent to the issue of a final version.
1.
Traffic & financial projections

DTTIPL does not accept any responsibility or liability for the projections or any losses that may be
incurred by the client or any party as a result of reliance on the projections. DTTIPL does not provide any
assurance about the achievability of the financial projections.
2.
Decision by the Client

The Client understands and agrees that the Services hereunder may include advice and
recommendations, but all decisions in connection with the implementation of such advice and
recommendations shall be the responsibility of, and made by, the Client. The Client shall be solely
responsible for, among other things, making all management decisions and performing all management
functions.
3.
Page 157 of 158
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Final DFR Kollam Report

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Final DFR Kollam Report

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(Private & Confidential)

Detailed Project Report for the Development of

The Directorate of Ports, Government of Kerala

Deloitte Touche Tohmatsu India Pvt. Ltd.

The Associated Cement Companies Limited

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

Hindu Undivided Family

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

Project background & rationale .......................................................................................14

Structure of the Report ...................................................................................................15

Overview of business landscape ....................................................................................17

SWOT Analysis ............................................................................................................20

Traffic assessment ..........................................................................................................22

Approach to the traffic study...........................................................................................22

Hinterland mapping .......................................................................................................22

Primary hinterland analysis.............................................................................................25

Secondary hinterland analysis .........................................................................................33

Open cargo from primary and secondary hinterland ...........................................................37

Indicative traffic projections. ..........................................................................................38

Site investigations ...........................................................................................................50

Geographical setting ......................................................................................................50

Geo technical conditions ................................................................................................54

Tide and wave data ........................................................................................................54

Environmental data ........................................................................................................55

Port planning ....................................................................................................................61

History of the port operations..........................................................................................61

Existing Port Facilities ...................................................................................................62

Planning methodology ...................................................................................................62

Strategy for project planning ...........................................................................................63

Port layout ....................................................................................................................63

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

Port facility requirements ...............................................................................................65

Planning criteria ............................................................................................................66

Planning consideration ...................................................................................................67

Cargo handling equipment ..............................................................................................67

Land requirements .........................................................................................................67

Constrains in port operations ..........................................................................................67

Cost estimates .................................................................................................................70

Capital cost estimation ...................................................................................................70

Overview of port tariffs ..................................................................................................75

Tariff determination .......................................................................................................76

Financial analysis ............................................................................................................78

Identification of revenue streams .....................................................................................78

Assumptions of investment and expenditure .....................................................................79

Financial projections ......................................................................................................83

Way forward .....................................................................................................................85

Annexure 1 : Stakeholders contacted for the traffic survey ........................................................87

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

Table 42: Projected Gross Revenues ..............................................................................................83

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The indicative cost savings.

Only containerized traffic in TEUs

Providing mechanical material handling equipment / cranes etc

(c) 2010 Deloitte Touche Tohmatsu India Private Limited

Strengthening existing facilities

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Strategy for implementation

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(c) 2010 Deloitte Touche Tohmatsu India Private Limited

1.2 Structure of the Report

This chapter deals with Port planning and narrates the