The Rail India Technical and Engineering Services (RITES) has been commissioned by the Inland Water Ways Authority of India (IWWAI) for carrying out survey along the national waterways to study the feasibility for multi-modal transportation.
This survey would also study the feasibility for container transportation setting up container terminals and setting up internal container depots along the waterways routes, especially in National Waterway number one and National Waterway number two .
IWWAI chairman R P Sinha said that this survey was being done to make waterway projects and vessel operations along the routes bankable projects. Depending on the study, the railways themselves could move to set up internal container depots served by the river routes, he said.
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Currently the main problem with the waterways was that the usage of the routes was very minimal and there are not very many vessels plying.
Ideally it has been estimated that the current avervage draft available along the waterays of about 2 metres plus was sufficient to support the movement of large vessels of anywhere between 800 to 100 dead weight tonnes to carry about 20 to 30 containers of twenty feet equivalent units (TEUS) or half of them in the case of FEUs (forty foot equivalent units).
This could help movement of containers at reduced costs right upto Sadiya in Assam and serve the ports, especially Calcutta and Haldia.
While NW1 links up the Varanasi with Haldia, NW2 links up upper Assam valley with the Calcutta through Bangladesh .
The RITES survey is also expected to provide some actual numbers on the potential rates of return on projects being taken up along the waterway routes.
The IWWAI itself estimates that with the cargo being assured, vessel operators should be able to realise a minimum internal rates of return of upwards of 14 per cent.
This, however, does not include the subsidies being extended by the authority. Currently, there is a loan interest differential subsidy extended for acquisition of vessels to the extent of 5.5 per cent.
Inclusive of the subsidy element the rates of return could be much higher.
IWWAI estimates that currently atleast about 100 vessels would be required to meet the cargo movement target of three million tonnes along the waterway routes and each vessel of a minimum configuration of 500 tonnes is expected to cost upwards of Rs 3 crore.
These Rites survey was also being undertaken in view of the home ministry's recommendation of complete privatisation of the NW2 routes both for vessel operations and setting up terminals on a build own and transfer (BOT) basis.