Wcc New York Sep 23 2010

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Sethusamudaram Canal and the Hinterland Logistics Prof Philbert Suresh i-FUN Intelligent Friends in the Université Network

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--FUN Research done with MBA students at Indian Maritime University in April 2010

Transcript of Wcc New York Sep 23 2010

Sethusamudaram Canal and the Hinterland Logistics

Prof Philbert Suresh

i-FUN Intelligent Friends in the Université Network

Gates and Locks in Canals

Rideau Canal, Eastern Ontario

A boater's paradise .... A visitor's delight

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Sethusamudaram Canal and The Hinterland Logistics

• ‘You cannot change your destination overnight, but you can change your direction overnight’ -

• Port Cities, Logistics Pathways and Networks are very complex process and more so in Hinterland Logistics .

• So let us look at the horizon, see the end of the finish line and allow your project to move on to its next goal.

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Link to NASA Image : http://history.nasa.gov/SP-168/p193a.jpg

Link to NASA Image : http://history.nasa.gov/SP-168/p193a.jpg

NASA picture of Sethu Bridge (Ramar Palam) – Evidence of Ramar Palam in Ramayana Epic

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Rama Sethu or Adam’s BridgeSpace images taken by NASA reveal a mysterious ancient bridge in the Palk Strait between India and Sri Lanka. The recently discovered bridge currently named as Adam´s Bridge is made of chain of shoals, c.18 mi (30 km) long.

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"Srimad Bhagavatam"

• NASA Images Find 1,750,000 Year Old Man-Made Bridge between India and Sri Lanka

• Adam´s Bridge is 30 km longdescribes the event:

Text 22 nara-devatvam apannah sura-karya-cikirsaya samudra-nigrahadini cakre viryany atah param

Translation:

"In the eighteenth incarnation (of Lord Krishna), the Lord appeared as King Rama. In order to perform some pleasing work for the demigods, He exhibited superhuman powers by controlling the Indian Ocean and then killing the atheist King Ravana, who was on the other side of the sea".

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Reaching Rameswaram and Pamban Island – just a handshaking distance from the promontory

Rivers and Canals in Tamilnadu

1.Kaveri River and its tributaries

2.Adyar • Amaravathi • Arasalar • Bhavani • Cheyyar • Chittar • Cooum • Kaveri • Kedilam • Kodaganar • Kodavanar • Kokkiliyar • Kollidam • Manimuthar • Nadari • Nambiyar • Nanganjiyar • Noyyal • Pachaiyar • Pahrali • Palar • Parambikulam • Ponnaiyar • Pykara • Swetha • Thamirabarani • Vaigai • Vaippar • Vasishta • Vellar • Vennaaru

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Rama (right) seated on the shoulders of Hanuman, battles the demon-king Ravana.

Ramayan epic gives birth to the existence of Ramar Palam or Adams Bridge – that provides the foundation for

SSCP Sethusamudaram Canal Project

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Ramayana Epic in World Cultures Through Indian Diaspora

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Adam's bridge (Ramar Palam) as seen from the air

Adam's Bridge (Tamil: ஆதா�ம் பா�லம் āthām pālam), also

known as Rama's Bridge or Rama Setu (Tamil: இரா�மர்

பா�லம் Rāmar pālam, Sanskrit: रा�मसे�तु�, Malayalam: രാ�മസേ�തു�, rāmasetu),[1] is a chain of limestone shoals, between Pamban Island, also known as Rameswaram Island, off the southeastern coast of Tamil Nadu, India, and Mannar Island, off the northwestern coast of Sri Lanka.

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THE GOVERNMENT OF INDIA CONSTITUTED NINE COMMITTEES BEFORE INDEPENDENCE, AND FIVE COMMITTEES SINCE THEN TO SUGGEST ALIGNMENTS FOR A SETHUSAMUDRAM CANAL PROJECT. MOST OF THEM SUGGESTED LAND-BASED PASSAGES ACROSS RAMESWARAM ISLAND AND NONE SUGGESTED ALIGNMENT ACROSS ADAM'S BRIDGE.[

IN 2001, THE GOVERNMENT OF INDIA APPROVED A MULTI-MILLION DOLLAR SETHUSAMUDRAM SHIPPING CANAL PROJECT THAT AIMS TO CREATE A SHIP CHANNEL ACROSS THE PALK STRAIT BY DREDGING THE SHALLOW OCEAN FLOOR NEAR DHANUSHKODI. THE CHANNEL IS EXPECTED TO CUT OVER 400 KM (NEARLY 30 HOURS OF SHIPPING TIME) OFF THE VOYAGE AROUND THE ISLAND OF SRI LANKA. THIS PROPOSED CHANNEL'S CURRENT ALIGNMENT REQUIRES DREDGING THROUGH RAMA'S BRIDGE.

Historical map of Adam's Bridge and environs prior to the cyclone of 1964Pearl fishing in the Gulf of Mannar, c.a. 1926Landsat 5 image of Adam's Bridge

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Venice – Canals: Heritage Site of UNESCO

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Like the fabled city of Atlantis, the city is at risk of being submerged. Autumn and winter high tides flood city streets and raise water levels on the canals, making it difficult or impossible for boats to squeeze under the bridges. The high tides, called aqua alta, are also eroding the foundations of buildings, which are tightly packed along the edge of the canals and the city’s outer shores

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The Buckingham canal is connected with the Bay of Bengal through the Cooum River

Section of the Canal near RA Puram with MRTS

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The Buckingham Canal is a 420 km long fresh water navigation canal, running parallel to the Coromandel Coast of South India from Vijayawada in Andhra Pradesh to Villupuram District in Tamil Nadu.

Cooum River to the Buckingham Canal in the City of Chennai

Buckingham Canal is located 0.4 Kilometres away from Cooum River.

Pamban Bridge at the south eastern tip of Tamilnadu

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The rare shell collection of a zoologist and marine Researcher stimulated the curiosity of the presenter since childhood - about the rich biodiversity of the Rameswaram and areas adjoining Pamban

Port Cities Détermines Global Trade Flow

• Port cities have to assimilate and accommodate advances in logistics to sustain their competitive status as key interfaces in the building of smooth global trade flows’.

• The logistics environment creastes a high degree of uncertainty and leavces port managers and city officials with the question how to respond effectively to market dynamics

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MORE On Port Cities A students mind is not container to be filled in but a precious receptacle to be ignited

• What can be done to insert port cities in global supply chains is the focus of the current research endeavour of students at IMU ( Indian Maritime University)

• Interesting prospect will be high lighted in today’s session on Sethusamudaram Canal and The Hinterland Logistics

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What are Port Cities??

• The modern container port is a collection of separate terminals. Each with different clients, distinctive handling methods and managed by differnt companies with divergent policy objectives

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Jean Paul RodirgueTransport Geography 2004

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Hinterland Logistics: The Realm of the “Last Mile” (or the “First Mile”)

GatewayGatewayInland Inland

TerminalTerminalDistributionDistribution

CenterCenter

Capacity

Frequency

CorridorCustomerCustomer

“Last Mile”

Segment

GLOBALGLOBAL HINTERLANDHINTERLAND REGIONALREGIONAL LOCALLOCAL

Shipping Network

MassificationMassificationMassificationMassification AtomizationAtomizationAtomizationAtomization

Terminalization in a Supply Chain Context

GatewayGateway

Offshore HubOffshore Hub

BottleneckBufferDistribution center (outbound / inbound)Inland containerized goods flowInland non-containerized goods flowMaritime container flow

Foreland (First Mile)Foreland (First Mile)

Hinterland (Last Mile)Hinterland (Last Mile)

GatewayGateway

SuppliersSuppliers

CustomersCustomersExtended Distribution Center

Extended Gate

Port regionalization and the creation of a Regional Load Center Network

Inland Inland TerminalTerminal

Supply Chain Terminalization: Supply Chain Terminalization: Import Flows to the HinterlandImport Flows to the Hinterland

• Bottleneck and buffer-derived terminalization– Port regionalization:

• Regional load center network.

– Extended gate:• Development of inland

terminals.

– Extended distribution center:

• The terminal as a warehousing unit.

GatewayGateway

Offshore HubOffshore Hub

GatewayGateway

SuppliersSuppliers

CustomersCustomers

Inland Inland TerminalTerminal

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Container Transloading: A Strong Vector of Terminalization

Cause Outcome

Consolidation Transferring the contents of smaller containers into larger containers (e.g. three maritime 40 foot containers into two 53 foot domestic containers). Cost savings (number of lifts). Time delays.

Weight compliance Transferring the contents of heavy containers into loads meeting national or regional road weight limits.

Palletizing Placing loose (floor loaded) containerized cargo unto pallets. Adapting to local load units (e.g. europallet).

Demurrage Handing back containers to owner (maritime shipping or leasing company) by transferring its contents into another load unit (e.g. domestic container).

Equipment availability

Making maritime containers available for exports and domestic containers available for imports. Trade facilitation.

Supply chain management

Terminal and transloading facility as a buffer. Delay decision to route freight to better fulfill regional demands. Perform some added value activities (packaging, labeling, final assembly, etc.)

Automated Transfer Management System for Truck-Rail Transfers

Commodity Chain

The Value Capture Process along Commodity Chains

Port Holding

Port

Aut

horit

y Maritime Services

Inland Services

Port Services

Horizontal Integration

Vertical Integration

Maritime ShippingMaritime Shipping

Port Terminal Operations

Port Terminal Operations

Inland Modes and TerminalsInland Modes and Terminals

Distribution Centers

Distribution Centers

Offshorehub

InlandPortPort

Supply Chains and Inland Terminals

• JVC Belgium (EDC) + TCT Belgium (EG)– Four day rule.– Free time Rotterdam (5 days).– Free time TCT Belgium (21 days).– Full containers at TCT; part of stock to JVC

Belgium.

Port City – Definedunder TWIMP Analyses

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T = Transportation (Convergence of Rail, Road and Sea in Sethu Canal) + W = Warehousing and Inventory Management (Bonded and other types of warehouse) + I = Information Technology (Maritime Software at the shore and sea) + Materials Handling ( Ports Equipment) + P = Packaging, Marking and Labeling ( RFID in Port)

Importance of Global Commodity Chains (GCC) in a Global Supply Chain (GSC)

• Landward extension of GCC – port gateways and restructuring of physical and organizational relationships redefines port hinterlands

• New spatial infrastructures are established in port hinterland – a process of port regionalization – where inland freight distribution centre's which are physically and logistically linked to ports have been established to GCC

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Importance of Global Commodity Chains (GCC) in a Global Supply Chain (GSC)

• Landward extension of GCC – port gateways and restructuring of physical and organizational relationships redefines port hinterlands

• New spatial infrastructures are established in port hinterland – a process of port regionalization – where inland freight distribution centre's which are physically and logistically linked to ports have been established to GCC

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Bulk and Containerized Commodity Chains

Bulk Commodity ChainBulk Commodity Chain

Containerized Commodity ChainContainerized Commodity Chain

Consolidationcenter

PortSupplier Customer

Inland Terminal

Containerport

PendulumServices

Point-to-Point

ComplementarityComplementarity

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The Bone of Contention at the SSCP Ship Canal

SSCP site is located in a globally significant marine ecosystem – the Gulf of Mannar Biosphere Reserve, one of world's richest marine biological resources.

42 MBA students researched this aspect as an assignment for MBA program in Indian Maritime University, Chennai, India = April 2010

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Sethusamudaram Canal and The Hinterland Logistics

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• Gaining focus is the crucial challenge facing the committees that had to contend with cost révision since the canal inception

• Sethusamudaram Canal is a dream project of India – if it uses the trimodal container terminal (TCT) infrastructure, it will be able to fulfill the project completion on time.

• Is this something that the successive committees in the Government of India overlooked since 1860 when the British Canal Engineer, A D Taylor identified it as a feasible one? Which of the modes of transport will be optimized to implement the TCT concept? Are there any examples in the world of the TCT??

A students mind is not container to be filled in but a precious receptacle to be ignited

Sethusamudaram Canal and The Hinterland Logistics

• As observed all three ports in Southern Cities of India (Chennai, Tuticorin and Cochin ) have a significant number of container vessels using its facilities.

• Containerization grows rapidly and becomes a dominant technique in the general cargo trade.

• The Intermodal transportation system expands while improving its operation at sea, on land, and at the interfaces between different modes of transportation.

• The demands that containerization place on the major segments of the system – ships, terminals and inland carriers – lead to the establishment of the load center (Hayut.Y).

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Sethusamudaram Canal and The Hinterland Logistics

Whatsoever may be the reason, it is found that the design of the project is not well planned which may cause adverse effect on the economy and ecology of the nation. So it is advisable to go for a re-planning of the project and find some best alternate solution.

T .O.

Box30/06/2010 Redefing Logistics Leadership for the Next Generation

Ports and Governments

The relationship between ports and governments has changed profoundly over the past quarter of a century.

Many governments have sought to extract themselves from the business of port operations and, in many cases, the provision of port services has devolved to local governments, communities or private management and administration.

As such devolution implies a change in governance model, this trend raises questions about consequent performance.

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Devolution: Governance of Ports

Devolution examines the changed port management environment, focusing particularly on government policies such as devolution, regulatory reform and newly imposed governance models, all of which have exerted a significant influence over the nature of that changed environment.

The devolution is structured so as to first explore the devolution and port reform approaches for 14 countries or regions, before examining how ports are governed and what the choice of governance might mean for their performance.

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Load Centre and Port Hinterland

The load center implies a concentration of container traffic at a limited number of larger ports. Two principal participants play dominant roles in the concentration process- the port and the carriers. In Sethu Canal Project, Tuticorin Port and Port of Jaffna will play a role

The concentration of container traffic can be explained in terms of transport –carrier economies in the three geographical sectors of operations: maritime , inland (hinterland) and port terminal activities.

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Operation Freedom – Iraq

In times of Iraq war, the ports in Kuwait had high container traffic beyond its physical infrastructure would allow them to handle efficiently,

Concentration of fleet at its port were a great concern Among the factors that contribute to the concentration of container traffic in a limited number of port, the most important appear to be: the economics of containership operation (particularly the time costs of port visits), the economies of large-scale container terminal operations, and the tendency to channel the inland distribution of containers into high volume truck routes ( for example land routes to Saudi Arabia, Syria and Jordancommon facilities. “(Dr Jean Paul Rodrique

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Extent to which transport modes currently satisfy the requirements of container flows through the port

Average Standard dev. No. of observations

Road 8.1 1.63 25

Rail 6.8 2.73 18

Inland waterway 5.8 2.86 5

Short sea shipping 7.6 2.59 10

Coastal shipping 7.3 2.83 10

(for average, 1 = very inefficient, 10 = very efficient)

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Ports and Governments

Located in a globally significant marine ecosystem – the Gulf of Mannar Biosphere Reserve, one of world's richest marine biological resources.

The project will also adversely affect the Palk Strait between India and Ceylon which is about 75 km-wide, with a water depth of 9-13 m, except where local coral reefs rise above the sea level. The Palk Strait is an inlet of the Bay of Bengal. The Palk Strait is 64 km to 137 km wide and 137 km long.

167 km long shipping canal

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Ports and Governments

From the vessel size analysis, all vessels up to 20,000 DWT,

about 75 per cent of 30,000 DWT, 10 per cent of vessels up to 40,000

DWT and 5 per cent of vessels up to 50,000 DWT, and all empty

vessels will fall in this category and can pass through SSCP.

The dredging quantity estimation is done taking sections

at every 100 m interval and integrating over the length of segment. Based on the model

studies report, it is estimated the maintenance dredging to be 2 million cu.m in the first year,

reduction to 1.4 million cu.m in 5 years and remaining constant

thereafter.

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Ports and Governmentsi-FUN Transport Lab in IMU

With draft restriction of 10 m in the SSCP, there could be a growth in number of ships specially built for the purpose of passing through SSCP, may be called `SETHU MAX', similar to vessels being built like Panamax or Suezmax vessels after the development of Panama and Suez canals.

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Ports and Governments

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Ports and Governments

Ships from the east coast of India to the west coast have to circumnavigate Sri Lanka. This is because of a Sand Stone Reef called Adam's bridge, at Pamban, near Rameswaram, where the depth of the sea is hardly 11 feet.

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Ports and Governments

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In order to reduce the steaming distances and take advantage of navigation along the coast and within India's territorial waters, British Commander A.D. Taylor of the Indian Marines conceived, in 1860, a proposal for cutting a ship canal called the Sethusamudram Ship Canal through Rameswaram island, connecting the G

Ports and Governments A students mind is not a container to be filled in but a precious receptacle to be ignited

After Independence, the Indian government constituted the Sethusamudram Project Committee in 1955, with Sir Ramaswamy Mudaliyar as chairman. He pegged the initial capital outlay for the integrated Sethusamudram-cum-Tuticorin Port Scheme at Rs 998 lakh and contemplated a draft of 26 ft.

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Ports and Governments

In 1963, Tuticorin Harbor Project was sanctioned but the government decided to include Sethusamudram Project for advance action.

In 1975, the Tuticorin Harbor Project was completed and the traffic exceeded the forecast made. In January 1981, Ministry of Shipping and Transport (Port Wing) constituted a committee that estimated the cost of the project at Rs 282 crore.

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Ports and Governments

In 1994, the Tamil Nadu government requested the Pallavan Transport Consultancy Services Ltd, Chennai, to appraise and revalidate a 1983 report as a result of which the latter submitted its report in March 1996. The cost estimates indicated in the report for:

1. 30' draft Rs 685 crore2. 31' draft Rs 760 crore3. 35' draft Rs 1,200 crore

They added that it would be worthwhile to implement the project initially for 31 feet draft and increase it to 35 feet wherever the approach channels are deepened in Tuticorin and Haldia

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Ports and Governments A students mind is not a container to be filled in but a precious receptacle to be ignited

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Sethusamudaram Canal Since 1860

Possibly conceived in 1860 by Commander A. D. Taylor of the Indian Marines, the project has been reviewed many times over the years but no decision was ever made.

It is usually described as 150 years of Tamil's dream to bring in Economic prospects for the Costal districts of Tamil Nadu.

However successive governments since Indian Freedom did not implement this project though it was part of the election manifestos of all political parties during elections30/06/2010 52Redefing Logistics Leadership for the Next

Generation

Various Proposals for Linking

Canal Pre-Independence:

1) Commander Taylor’s Proposal – 18602) Mr. Townshend’s Proposal – 18613) Parliamentary Committee’s Proposal – 18624) His Excellency Sir William Dennison’s Proposal (Governor of Madras) – 18635) Mr. Robertson’s ( Harbour Engineer to the Govt. of India) Proposal – 18726) Sir John Code’s Proposal – 18847) S.I. Railway Engineers Proposal – 19038) Sir Robert Bristo’s (Harbour Engineer to the Govt. of India) Proposal - 1922

Reports considered after Independence

1) Sethusamudram Project Committee – 19562) Nagendra Singh Committee Report – 19673) Lakshminarayan Committee Report – 19814) Pallavan Transport Consultancy Services Report – 19965) Tuticorin Port Trust as Nodal Agency – 19976) DPR prepared by L&T T-Ramboll – 200430/06/2010 53Redefing Logistics Leadership for the Next

Generation

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Ports and

Governments

Sethusamudaram Canal is a dream project of India – if it uses the trimodal container terminal (TCT) infrastructure, it will be able to fulfill the project completion on time.

Is this something that the successive committees in the Government of India overlooked since 1860 when the British Canal Engineer, A D Taylor identified it as a feasible one?

Which of the modes of transport will be optimized to implement the TCT concept? Are there any examples in the world of the TCT?? 30/06/2010 55Redefing Logistics Leadership for the Next

Generation

Prof Philbert Classroom in Transportation and Logistics at Gulf University, Kuwait – 2006 to 2009

Ports and GovernmentsA students mind is not a container to be filled in but a precious receptacle to be ignited

Outstanding examples of canal engineering and development of the infrastructure reveals the efficiency of Trimodal Container Terminals in Oresund (Sweden), Antwerp, Belgium and Welland Canal in the Niagara Region

These developments serve as a good model for Sethusamudaram Canal embroiled in controversies – more politically rather than in effective transport economic

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Examples of TCT for Hinterland Logistics Trimodal Container Terminal Belgium

Strategically situated between Antwerp and Brussels, the Trimodal Container Terminal Belgium (TCT Belgium) handles a substantial part of the logistics activities of its customers.

The inland terminal on the Scheldt-Brussels Canal in Willebroek organizes both the transport of containers to and from the seaport and the on-demand pick-up and delivery right at the client's front door.

Cargo is always available just-in-time.

The impact of TCT is due to the development of intermodal transport network and logistics facilities on hinterland penetration of ports. The infrastructure and institutional problems that limit opportunities of ports in Asia to serve expanded hinterland, and policy guidelines to improve transport and logistics facilities in order to expand port hinterlands like those in Los Angeles, Brisbane, Tauranga, Duisburg and Vancouver30/06/2010 57Redefing Logistics Leadership for the Next

Generation

SSCP is not alone: Wedding of the Waterways

TCT in Belgium Other Models for SSCPTCT Belgium is situated in the

Willebroek area, a region that is quickly developing into a leading centre for European production and distribution.

Located at the junction of international transport axes, TCT Belgium is the ideal link between the North Sea, the Willebroek region and the European market.

Substantial service network - Thanks to its well-trained and highly motivated staff, TCT Belgium day in day out offers

The impact of TCT is due to the development of intermodal transport network and logistics facilities on hinterland penetration of ports.

The infrastructure and institutional problems that limit opportunities of ports in Asia to serve expanded hinterland, and policy guidelines to improve transport and logistics facilities in order to expand port hinterlands like those in Los Angeles, Brisbane, Tauranga, Duisburg and Vancouver

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Ports and Governments

One can conclude that the project has not been adequately assessed for the environmental impacts to the biodiversity of the Palk Strait, Palk Bay and the Gulf of Mannar and will have serious impacts and cause drastic changes to the biodiversity of the region.

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Final Conclusion

Any major development project has both benefits and disadvantages to the society. Many development projects have very high economic benefit and at the same time lead to environmental hazard. The poor design of the project, under-estimations of costs, and the poor assessment of risks, hazards and environmental impacts of the project.

Most importantly the project itself admits to the loss of corals, sea fans, sponges, holothurians, which are all protected/scheduled species under the Wild Life (Protection) Act, 1972 for which the proponents failed to seek clearance from the Chief Wildlife Warden and Central Government as required by law

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Ports and Governments

The modern ships are built in such a way that they can carry huge volumes of tonnage which ultimately increase their drafts. In such cases, these ships will not use canals like SSC.

It is likely to also cause major impacts and losses of fisheries and livelihoods to the region. Reviewing the current status of the implementation phase of the project, considerable environmental and economic damage has probably already been done.30/06/2010 61Redefing Logistics Leadership for the Next

Generation

A students mind is not a container to be filled in but a precious receptacle to be ignited

Thanks for your time and kind attention )

Sethusamudaram Canal TCT - India

• Our goal – is to cut the Gordian Knot and resolve Sethu Challenges through coordination of a TCT proposal based on the model in Antwerp and Duisburg

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