beypore traffic data

CHAPTER 4

TRAFFIC POTENTIAL AT BEYPORE

4.1 Introduction

The major Port of Kochi handles most of the Kerala States sea borne traffic. The State

ports do not play much significant role. Beypore/Kozhikode, Azhikkal and Vizhinjam

are the three active state ports in the state.

Main drivers for any port development are the maritime transportation needs of

industries (such as Coal for Thermal power plants, Iron ore for Steel plants, fertilizers

raw materials, agriculture commodities etc.), development of maritime industries such as

ship-repair, ship building or ship breaking yard. It has been brought out in Appendix 2

that in future there is only one FDI coming up in Palakkad for setting up a textile factory.

Hence there is little scope for generation of port traffic for Beypore port. Ports are also

needed for water borne passenger traffic - ferrying or tourism purposes.

4.2 Key Issues Examined

The Consultants have examined the potential for the State run ports, (i) to act as

Regional Growth Centres; and (ii) to support major port in reducing pressure. These

aspects are briefly discussed in the following paragraphs.

4.2.1 Ports as Regional Growth Centres:

(a) Nature of Traffic at Existing Other State Ports

40 other ports out of a total 200 ports handle some traffic of significance. The

main cargoes passing through the active minor ports considering all India

scenarios are crude, POL products, fertilizer import, iron ore and oil cake exports,

coastal movement of clinker and occasional import of food grains/palm oil, etc.

Very little local/rural produce is shipped from the immediate hinterland of any of

the minor ports. As the neighbouring areas tend to produce similar type of goods,

there is little scope for trade between them and whatever small amount of trade

takes place, it moves through road.

(b) Past Trends in Minor Port Traffic

Minor ports have not shown any rapid growth in traffic since 2000. Apart from

some state ports handling commodities take fertilizers, iron ore, oil cakes, some

food grains/palm oil etc. and, containers, crude and POL products are new cargos

at the state ports in Gujarat because of two refineries set-up there, for which

dedicated ports have been developed in the recent past. Reliance refinery with

expected capacity of 64 MTPA is the largest refinery in India serviced by a non-

major state port in Gujarat.

(c) Experience

Experience globally confirms that where rail and road transport facilities are

developed, the scope of minor ports in stimulating local economic activity is

limited. In most countries, only bulk cargo such as coal, cement, fertilizer and

petroleum products are carried by coastal ships, where as general

cargo/agricultural products from the immediate hinterland are moved by road or

rail.

(d) Link between Ports and Economic Development

Port is a vehicle for economic development but not necessarily an initiator. This

fact is evident from the growth of traffic at non-major ports since 2000 when

state port traffic in maritime states rose to 64 million ton from about 35 million

ton from the previous 3 years (1997-1999) mainly due to setting up of port traffic

generating industries in Gujarat, Maharashtra and other states. The

implementation of Policy of Openness of Indian Economy around 1991, started

showing its effect around 1996-97 onward. The objective of setting up of new

refineries, power plants, steel mills in maritime states was mainly to reduce the

transportation cost of the inputs/outputs. Further implementation of SEZ policy

has also boosted the growth in the port traffic.

The conclusion, therefore, is that development investment in non-major ports does create

or generate marginally economic gains. Substantive development could be justified only

if one or more of the following conditions exist:

(i) organic growth of traffic beyond the capacity of the existing facilities

(ii) concrete plans to set up industrial plants for which special port facilities is

required

(iii) clear evidence that saving in user costs will be realized to justify the investment.

4.2.2 Reduction of Pressure on Major Ports

Almost all major ports have large urban centres with high population densities. For

effectively reducing pressure on these centres, it is necessary to shift major activities

along with man power associated with it to other locations. Such attempts in the past

have had very little success in decentralization because of social and other factors, level

of comparable facilities in new centres. On this analogy the minor port can serve as

transfer points only if facilities of comparable level to those at the major ports stand

provided.

4.2.3 Development of fishing harbour and Passenger / Tourist/ Facilities at Minor Ports

Combining commercial and fishing activities with fishing, passenger/tourist facilities at a

minor port is advantageous mainly due effecting economies of sharing infrastructural

development costs relating to sheltered harbour, access channel, inland links etc. For this

reason, development of fishery facilities in commercial ports is already taking place.

4.2.4 The development of state ports should be based on the traffic demand arising from

existing or planned port based activities.

4.2.5 Beypore to be developed for What Ship Sizes

This basic issue need to be reproduced and a strategy formulate based on a review of

vessel calls at the Indian west coast ports to ascertain the size wise (DWT) distribution of

vessels most likely to trading in the area. During 2008-09, 10574 vessels called at the

West Coast ports. The size distribution is given in Table 4.1.

Table 4.1 Vessels calling at West Coast Ports (2008-09)

Particulars

000 DWT Vessels

Break Bulk Cargo Vessel 2008 - 09

Kandla Mumbai JNP Mormugao NMP Cochin

(Kochi)

West

Coast

Ports

NUMBER OF VESSEL CALLS

0-10 121 231 8 3 24 44 407

10-20 141 198 9 2 22 12 362

20-30 127 142 1 2 24 3 275

30-40 33 31 1 3 68

40-50 13 53 1 67

50-80 13 17 30

80+ 0

Total 448 672 18 8 70 63 1209

PERCENT OF VESSEL CALLS

0-10 27.0 34.4 44.4 37.5 34.3 69.8 33.7

10-20 31.5 29.5 50.0 25.0 31.4 19.0 29.9

20-30 28.3 21.1 5.6 25.0 34.3 4.8 22.7

30-40 7.4 4.6 12.5 4.8 5.6

40-50 2.9 7.9 1.6 5.5

50-80 2.9 2.5 2.5

80+

Total 100 100 100 100 100 100 100

Ship calls (percentagewise) to West Coast Ports by relatively smaller sized ships which

mostly carry break bulk cargo are noted as follows:

33.7% of the vessels were up to 10,000 DWT (Draft 8 m).

about 29.9% of the vessels were in the range of 10 to 20,000 DWT (Draft 10 m).

Thus about 64% of Break Bulk Vessels calling at West Coast ports are below 20,000

DWT.

From the above it could be concluded that in absence of any specific industry coming up

in Beypore region BB vessels larger than 10 to 15,000 DWT vessels cannot be envisaged

now at Beypore Port. Hence, Beypore port development could be based on the

assumption, also considering berth length and draft limitations inside the harbour area, to

cater for a maximum of 10,000 DWT size vessels in fully loaded condition and

occasionally, partially loaded larger vessels with 8 m restricted draft even in the range of

20 ~ 30,000 DWT in size.

4.2.6 Traffic Presently Handled at Beypore Port

In 2008-09, about 120,000 Tons of cargo was handled here (comprising 11,300 T of

Hydrocarbons, 18,560T of Soda Ash, 11,830T of Cement, 25,010T of metal / Iron &

Steel products, 18,100T of Food grains & Misc. cargo 35,290 T). All cargo movements

were through coastal vessels. Cargo shipment such as POL Products, LPG & household

goods for Lakshadweep are presently handled at Beypore Port.

4.3 Methodology for Traffic Assessment

There are mainly two methods of traffic estimation, namely Assessment by

mathematical methods & by end user Method.

Mathematical Models

It has been established all over the world that port traffic has a direct co-relationship with

the GDP of the country. Various mathematical models have been deployed to assess

growth of traffic at a port. Past traffic data is analyzed using different models to establish

a relationship between the traffic & other economic indices. A pictorial presentation of

the above is given in Fig. 4.1.

End User Method

Forecasting techniques using mathematical models are based on past data and the trends.

It has limitations, these do not take into account the effects of special

happenings/economic developments in the hinterland. In order to estimate the traffic

more realistically end user method is employed where special economic development

activities are considered to assess the impact on port traffic. In this method the needs of

port users/stakeholders are assessed and analysed. The pictorial presentation is given in

Fig. 4.2.

In any process of traffic estimation for a port delineation of the hinterland of port, the

economic activities historical (time series) therein and special events/planning a prognosis

are studied. In case of Kerala ports immediate hinterland in Kerala and South Western

India extended hinterland could be considered as the economic activities of the region.

In this context, the economy of Kerala and ports in Kerala were studied and are placed as

Appendix 2 & 3.

FIG. 4.1

Estimate BB Traffic at All

Ports in India

Traffic for

Ports

Elsewhere

METHODOLOGY TO ESTIMATE TRAFFIC

MATHEMATICAL MODEL

Models Used are - Traffic with GDP Growth

o Linear Regression

o Power Function

Growth Model Time Trend Analysis

Traffic for

Kochi Port

Traffic for

Other Kerala

State Ports

Traffic for All

Kerala Ports

Traffic for

Beypore Port

FIG. 4.2

Interview/Meeting/Discussions with Users - IOCL (POL & LPG) HPCL Indian Timber Merchants

Association

Lakshadweep Co-operative Federation

PWD of Lakshadweep Flour Mills Steel Mills Port Officials

METHODOLOGY TO

ESTIMATE TRAFFIC

POTENTIAL

END USER METHOD

Estimate/Discuss Traffic Potential/

Usage of Beypore Port in Future

Review Economy of Kerala State - Future Plans for Industries Transport Sector Power Sector Proposed FDI Agriculture

Traffic

Forecasting

Identify Users of

Beypore Port

4.3.1 Traffic potential Assessment

Initially the consultants considered be the districts of Kozhikode (KKD), Wayanad

(WYN) & Malappuram (MLPM) as the primary hinterland and districts of Palakkad

(PLKD) & Kannur (KNR) & other districts of Kerala as the immediate secondary

hinterland and estimated the future traffic potential for Beypore(see Fig 4.3) The Draft

Feasibility Report was prepared . The traffic potential given in the DFR was the expected

cargo that could be handled at Beypore to ensure the concept and design have

commercial viability. For sustained viability most of the developments proposals were

proposed on the south side of the river. The emphasis was to grow on innovation,

achieve functional convergence between forecast/ logistic/ inventory and identification

of value chains. Success of the port will depend on developing Unique Selling Points

(USP) & suitable marketing instruments for attracting the traffic.

During the presentation of the Draft Report & the meeting with the GoK on 5 to 7th

March 2010 in Beypore & Kozhikode the consultants were asked to develop a scenario

in which port facilities be developed on the north side of the river as the land on the

south side was earmarked for the Defense Ministry. Further the consultants were asked

to moderate the traffic potentials so as to be able to develop the port facilities on the

north of the river, at the existing port location as the availability of land on the north

side of river is restricted . Moreover the area is thickly populated so the full

FIG. 4.3

development cannot be accommodated here. Cargoes like POL & LPG cannot be

handled here. Further the proposed development of the port at Azhikkal in

Kannur(adjacent) district in north of Beypore & Ponnani in Malappuram district in south

of Beypore will have impact on the traffic expected at Beypore .

Based on the discussions the consultants have re-assessed the traffic potential for another

scenario of where development is not permitted on the south bank of the river. So the

Beypore traffic potential is assessed for:

SCENARIO 1 - . With port development on both north and south the south of

river (earlier DFR ) and probability of other nearby ports coming up being

doubtful.

SCENARIO 2 - No development permitted on the south of the river and also

distinct possibility of Azhikkal and Ponnani Port are developed.

SCENARIO 3 - Development of a Jetty for Lakshadweep Authority at

Beypore

The following section gives the traffic estimation for Section A and the same is followed

by the Section B (as presented in DFR)

4.4. Traffic Potential

4.4.1 Approach I Mathematical Models

Macro Analysis of Break Bulk Cargo at All India level

Since the Kerala ports in the past have been handling only break bulk cargo, a review of

break bulk cargo at All Indian Ports, vis--vis, Kerala Ports and Karnataka ports was carried

out over the years from 2001 to 2008 the break bulk cargo handled at All Indian Ports and

Kerala ports are shown in Table 4.2 below.

Table 4.2:

Break Bulk Traffic trends at All India, Kochi, Kerala State Ports & Karnataka Ports

Year BB Traffic (MTPA) % Share of in AI( BB) A

ll I

nd

ia

(AI)

Koch

i

Ker

ala

Sta

te P

ort

s

Ker

ala

(Tota

l)

Karn

ata

ka

(Tota

l)

Ker

ala

&

Karn

ata

ka

Ker

ala

Karn

ata

ka

Ker

ala

&

Karn

ata

ka

Ker

ala

Sta

te

port

s

2001 62.0 1.0 0.160 1.157 2.087 3.244 1.87 3.37 5.23 0.26

2002 66.9 1.0 0.128 1.110 1.991 3.101 1.66 2.98 4.64 0.19

2003 78.4 0.8 0.089 0.913 2.009 2.922 1.16 2.56 3.73 0.11

2004 84.3 0.8 0.060 0.909 4.044 4.953 1.08 4.80 5.88 0.07

2005 97.4 0.7 0.084 0.831 4.582 5.413 0.85 4.70 5.56 0.09

2006 100.1 0.9 0.135 1.015 5.342 6.357 1.01 5.34 6.35 0.14

2007 127.3 1.0 0.173 1.182 8.179 9.361 0.93 6.42 7.35 0.14

2008 138.4 0.7 0.147 0.818 11.02 11.84 0.59 7.96 8.55 0.11

2009 124.5 0.7 0.122 0.857 7.25 8.11 0.69 5.82 6.51 0.10

CAGR

2001-09 9.1 -3.7 -3.3 -2.0 16.8 12.1

2004-09 8.1 -1.7 15.3 -1.2 12.4 10.4

Source: Major Port Profile, IPA; Port Dept., Kerala

Considering All India scenario of break bulk traffic handled at different port, Kerala ports

has declined from 1.87% in 2001 to 0.59% in 2008, the share of Kerala & Karnataka

together has shown an increasing trend from 5% in 2001 to 8.5% in 2008. This trend has

occurred mostly as other ports in the West Coast have enhanced their capacity relatively

faster. The redeeming feature to note is that in absolute terms in last four years from 2004

the break bulk traffic at Kerala State Ports has shown some increasing trend. The annual

compounded growth has been very high (25.1% p.a.).

Growth of Break Bulk cargo-All Ports in India

The consultants have used the following models

Time trend Analysis - Port traffic (BB) & time

Growth Method - Port traffic (BB) & the achieved growth over the past

Regression Analysis - Port Traffic (BB) & GDP

Various steps of this estimation are as under:

Work out future BB traffic at All Indian Ports by different models

Select the results of the most suitable model for estimation

Share of BB traffic for the Kerala ports

Review the existing & future capacity enhancement plan

Estimate the demand supply Gap , available for future port development

Likely share for Beypore

Various models considered with different parameters are presented in Table 4.3

Table 4.3: Various Mathematical Models tried for estimation of BB- All India

Particulars Growth

Method

Regression Time trend

Power Function Linear

Dependent

variable

BB Traffic BB Traffic BB Traffic BB Traffic

Independent

Variable

GDP GDP Years

Equation Y= (-)0.000056*

(GDP)^1.41943

Y=GDP*0.005

49-37.63

Y=Year*10.5

347-210022

Regression

coefficient

0.96912

0.96911

0.962748

Growth

Expected

12 % growth at

All India level

(2009-10) to

10% by (2029-

30)

Gradually decreasing from 8%

(2009-10) to 6.5% (2029-30)

Source: CES In-house Working

The future traffic at Beypore has been estimated (based on the results of power function

method of Regression between GDP & Break Bulk Traffic) and is presented in Table 4.4

(Detailed working is placed as Appendix 4).

Table 4.4: Future Traffic at Beypore and Other Ports

Year Expected

Traffic

at All

Indian

ports

Share

Of

Kerala

Ports

Expected

at Kerala

State

Ports

Expected

at

Beypore

Capacity

*

Scope of

Development

of Beypore

port facilities

to handle

traffic

(MTPA) % 000T 000T 000T 000T

2007-08

(Actual) 138 0.106 147 135 160

2011-12 199 0.163% 258 237 160 77

2012-13 222 0.170% 303 279 160 119

2013-14 246 0.178% 356 328 160 168

2014-15 273 0.185% 418 384 160 224

2019-20 453 0.229% 914 840 160 680

2025-25 734 0.283% 1949 1793 160 1633

2029-30 1159 0.350% 4056 3732 160 3572

* The maximum cargo handled in last 10 years has been considered as capacity, since the

capacity figures for other state ports are not maintained.

By 2030 the port if equipped could expect a traffic to the tune of 3.6 MT of Break Bulk

Cargo.

Alternative Approach for Macro Analysis

Expected traffic at Beypore ports for the hinterland as assessed above can also be compared

with a very simplistic way of estimation. In 2007-08 the All India BB traffic at ports was

138 MT. The total Indian population was 1144 millions. This would mean roughly 0.12

MTPA per Million population. The total population of the hinterland of Beypore in 2007

was 13.1 Million i.e. about 1.58 MT of BB should be the traffic from this area in 2007

increasing to 2.2 MTPA (when the population could be 18 Million in the hinterland) by

2030.

4.4.2 Approach II - End User Method

Referring to Appendix 2, it is to be noted that there are no major industry existing in the

hinterland of Beypore port except a few flour mills, two mini steel mills. In future there

are plans for setting up of a textile mill in the hinterland through FDI route. Further, the

trade needs of the area regarding POL, LPG, cement, sand etc are met through

transportation by roads. Since existing roads are already congested and any future trade

demand could be met through coastal route shipping. In order to assess the traffic

realistically through end users method following steps were adopted:

The main port users were identified on the basis of the past traffic through the port.

Subsequently these port users were forwarded with a questionnaire requesting to

furnish the details regarding their capacities, plan for the future developments & the

resultant volumes of Input & output products etc so as to estimate the future port

services demand (Annexure 1.1). Reply from Nirma Chemicals is submitted in

Annexure 1.2.

The consultants met some of the main traders/industries & port users (listed in

Annexure 1.3) and had discussions with them as to their likely use of Beypore port

facilities in future. Main users contacted in Kozhikode include Indian Oil

Corporation POL Depot & LPG Bottling Plant, POL depot of Hindustan

Petroleum & Chemicals Depot at Elatur, Indian Timber Merchant Association

etc..

Accordingly the Traffic has been worked taking all the above points in consideration (see

Appendix 5). Traffic expected in future at Beypore is presented in Table 4.5

Table 4.5 Expected Cargo Traffic at Beypore

(000T)

2008

Actual 2013 2015 2020 2025 2030

SCENARIO 1 DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL

POL 1.9 97.0 113.4 170.5 251.1 348.0

LPG 0.2 6.7 8.2 13.9 23.6 36.0

Wheat 9.9 40.0 43.9 55.4 69.8 88.0

Other 3.4 5.5 6.7 10.8 17.3 27.9

Chemicals 24.4 38.8 46.6 64.9 80.9 100.8

Cement 14.7 348.5 401.7 587.5 878.1 1350.0

Sand 0.0 1100.1 1125.5 1221.6 1353.9 1547.4

Metals 22.0 8.0 8.9 11.3 14.4 18.4

Steel 0.0 100.0 108.2 131.6 156.3 181.2

Timber 0.0 65.0 71.7 89.3 108.7 129.0

Misc. 58.8 104.0 113.7 123.6 133.6 143.6

Containers 0.0 68.4 110.4 256.8 538.8 660.0

000 TEU 0.0 5.7 9.2 21.4 38.9 55.0

Total 135.3 1982.0 2158.9 2737.2 3626.5 4630.3

SCENARIO 2 DEFINATE DEVELOPMENT OF AZHIKAL & PONANI

POL 20.8 22.8 31 46.8 71

LPG 6 6.5 8 10 12

Wheat 40 43.9 55.4 69.8 88

Other 5.5 6.7 10.8 17.3 27.9

Chemicals 4 5 8 12 17

Cement 31.4 38.5 66.8 109.5 159.9

Sand 114.5 128 171.5 235.1 319.6

Metals 8 8.9 11.3 14.4 18.4

Steel 100 108.2 131.6 156.3 181.2

Timber 48.8 53.7 65.4 78.6 93.4

Misc. 45 50 65 90 130

Containers 66 108 108 108 108

000 TEU 5.7 9.2 9.2 9.2 9.2

Total 490 580.2 732.8 947.8 1226.4

SCENARIO 3 TRAFFIC AT LAKSHADWEEP JETTY

POL 1.9 2.5 3.2 4.5 5.5 7.0

LPG 0 0.1 0.1 0.2 0.2 0.3

Cement 16.6 17.0 18.3 18.7 19.5

Misc. 1.5 1.7 2.3 3.1 4.3

Total 20.7 22.0 25.3 27.5 31.1

* Since the port is to be developed only on the north side of the river, at the existing

port, considering the restriction of available land at the location it may not be possible to

locate the liquid handling facilities at the port site. The liquid cargo which is in drums

has been considered in the traffic potential at Beypore Port is presented in Table 4.6

Table 4.6 Future Cargo traffic potential at Beypore (without Hydrocarbons)

(000T)

Particulars 2013 2015 2020 2025 2030

SCENARIO 1 DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL

Wheat 40.0 43.9 55.4 69.8 88.0

Other 5.5 6.7 10.8 17.3 27.9

Chemicals 38.8 46.6 64.9 80.9 100.8

Cement 348.5 401.7 587.5 878.1 1350.0

Sand 1100.1 1125.5 1221.6 1353.9 1547.4

Metals 8.0 8.9 11.3 14.4 18.4

Steel 100.0 108.2 131.6 156.3 181.2

Timber 65.0 71.7 89.3 108.7 129.0

Misc. 104.0 113.7 123.6 133.6 143.6

Containers 68.4 110.4 256.8 538.8 660.0

000 TEU 5.7 9.2 21.4 38.9 55.0

Total 1878.3 2037.3 2552.8 3351.8 4246.3

SCENARIO 2 DEFINATE DEVELOPMENT OF AZHIKAL & PONANI

Wheat 40.0 43.9 55.4 69.8 88.0

Other 5.5 6.7 10.8 17.3 27.9

Chemicals 4.0 5.0 8.0 12.0 17.0

Cement 31.4 38.5 66.8 109.5 159.9

Sand 114.5 128.0 171.5 235.1 319.6

Metals 8.0 8.9 11.3 14.4 18.4

Steel 100.0 108.2 131.6 156.3 181.2

Timber 48.8 53.7 65.4 78.6 93.4

Misc. 45.0 50.0 65.0 90.0 130.0

Containers 66.0 108.0 108.0 108.0 108.0

000 TEU 5.7 9.2 9.2 9.2 9.2

Total 463.2 550.9 693.8 891.0 1143.4

SCENARIO 3 TRAFFIC AT LAKSHADWEEP JETTY

POL 2.5 3.2 4.5 5.5 7.0

LPG 0.1 0.1 0.2 0.2 0.3

Cement 16.6 17 18.3 18.7 19.5

Misc. 1.5 1.7 2.3 3.1 4.3

Total 20.7 22 25. 3 27.5 31.1

4.4.3 Passenger Traffic at Beypore

It was further emphasized that the Beypore may be developed for passengers. There are

two types of passenger usage in Beypore:

Pleasure seekers (uses the Marina facilities)

Passengers to and from Lakshadweep

Referring to analysis presented in Appendix 6A the total passenger traffic and the vessel

calls is as given in Table 4.7.

Table 4.7: Total Tourist/Passengers traffic and the vessel calls of Lakshadweep

passengers and Marina Tourist

Years Lakshadweep

Passengers

Marina Tourist

Boats

Total

No. of

Passen-

gers

(000)

Ship

Calls

(nos)

No. of

Passen-

gers

(000)

Ship

calls@

60 per

boat

(nos.)

No. of

Passen-

gers

(000)

Ship &

Boat

Calls

(nos.)

2013 11.6 78 54.5 910 66.1 988

2015 12.1 81 65.5 1090 77.6 1171

2020 14.0 94 105.3 1755 119.3 1849

2025 16.9 113 172.6 2875 189.5 2988

2030 21.5 144 288.1 4800 309.6 4944


4.4.4 Overall Traffic Potential

The overall traffic potential (both Cargo & Passenger) is given in Table 4.8

Table 4.8 Future traffic Potential at Beypore

(000T)

Particulars 2013 2015 2020 2025 2030

DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL

Wheat 40.0 43.9 55.4 69.8 88.0

Other foodgrain 5.5 6.7 10.8 17.3 27.9

Chemicals 38.8 46.6 64.9 80.9 100.8

Cement 348.5 401.7 587.5 878.1 1350.0

Sand 1100.1 1125.5 1221.6 1353.9 1547.4

Metals 8.0 8.9 11.3 14.4 18.4

Steel 100.0 108.2 131.6 156.3 181.2

Timber 65.0 71.7 89.3 108.7 129.0

Misc. 104.0 113.7 123.6 133.6 143.6

Containers 68.4 110.4 256.8 538.8 660.0

000 TEU 5.7 9.2 21.4 38.9 55.0

Total 1878.3 2037.3 2552.8 3351.8 4246.3

Passenger 54.5 65.5 105.3 172.6 288.1

Total( 65Kg /Adult(40%) & 35 Kg /Child) 1881.2 2039.6 2556.5 3357.8 4256.4

DEFINATE DEVELOPMENT OF AZHIKAL & PONANI

Wheat 40.0 43.9 55.4 69.8 88.0

Other food grain 5.5 6.7 10.8 17.3 27.9

Chemicals 4.0 5.0 8.0 12.0 17.0

Cement 31.4 38.5 66.8 109.5 159.9

Sand 114.5 128.0 171.5 235.1 319.6

Metals 8.0 8.9 11.3 14.4 18.4

Steel 100.0 108.2 131.6 156.3 181.2

Timber 48.8 53.7 65.4 78.6 93.4

Misc. 45.0 50.0 65.0 90.0 130.0

Containers 66.0 108.0 108.0 108.0 108.0

000 TEU 5.7 9.2 9.2 9.2 9.2

Total 463.2 550.9 693.8 891.0 1143.4

Passenger 54.5 65.5 105.3 172.6 288.1


FOR LAKSHADWEEP JETTY

POL 2.5 3.2 4.5 5.5 7

LPG 0.084 0.1 0.153 0.219 0.324

Cement 16.6 17 18.3 18.7 19.5

Misc. 1.5 1.7 2.3 3.1 4.3

Total 20.684 22 25.253 27.519 31.124

Passenger 11.6 12.1 14 16.9 21.5


4.4.5 Future Ship Calls

Present available water depth in the harbour wharf is 3 to 3.5m. Accordingly, only large

sea going vessels upto a limit of 5,000 DWT partly loaded can enter the harbour and at

berth. Larger ships lie at anchorage and cargo from these ships to the wharf is ferried by

lighterage operations.

Typical dimensions of the vessels of different sizes in terms of DWT are presented in

Table 4.9 below.

Table 4.9: Dimensions of various ships expected at Beypore are

Particulars DWT LOA Beam Draft

BB

10000 133 19.8 8

15000 152 22.6 9.2

Cement 10000 133 19.8 8

15000 152 22.6 9.2

Chemicals 10000 119 15.0 7.4

15000 140.8 19.0 10.2

Cont

10000 130 21.2 7.3

25000 195 28.5 10.1

Passenger

vessels

1000* 64 12.1 2.6

2000* 81 14.4 3.4

Source: CES Assessment * Passenger Vessel sizes are given in GRT.

In earlier Para 4.2.5 considering vessels calling it west coast ports, it has been discussed

that Beypore harbour and port facilities inside the harbour could at best be developed to

take in 10,000 DWT fully loaded 20-30,000 DWT (partly loaded) at the most and the

likely traffic to be handled. Following this strategy the number of ship calls at Beypore is

estimated and resented in Table 4.10

Table 4.10: Ship calls at Beypore

Particulars 2013 2015 2020 2025 2030 2013 2015 2020 2025 2030 2013 2015 2020 2025 2030

DEVELOPMENT OF AZHIKAL &

PONANI DOUBTFUL

DEFINATE DEVELOPMENT OF AZHIKAL &

PONANI LAKSHADWEEP JETTY

BB 000 T 1461.37 1525.2 1708.5 2006.32 2236.3 363.4 402 516.6 671.1 873.1 4.1 5.0 7.0 8.8 11.6

Cement 348.5 401.7 587.5 878.1 1350 31.4 38.5 66.8 109.5 159.9 16.6 17 18.3 18.7 19.5

Cont 000 TEU 5.7 9.2 21.4 38.948 55 5.7 9.2 9.2 9.2 9.2

Cargo total 1878.27 2037.3 2552.8 3351.8 4246.3 463.2 550.9 693.8 891.0 1143.4 20.7 22.0 25.3 27.5 31.1

Vessel size

BB DWT 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

Cement DWT 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

Cont TEU 1000 1000 1000 2000 2000 1000 1000 1000 2000 2000

Parcel Size

BB T 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000

cement T 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500 7500

Cont TEU 600 600 600 1200 1200 600 600 600 1200 1200

Ship calls

BB Nos. 244 255 285 335 373 61 67 87 112 146 1 1 2 2 2

Cement Nos. 47 54 79 118 180 5 6 9 15 22 3 3 3 3 3

Cont Nos. 10 16 36 33 46 10 16 16 16 16

Cargo total 301 325 400 486 599 76 89 112 143 184 4 4 5 5 5

Passengers 910 1090 1755 2875 4800 910 1090 1755 2875 4800 78 81 94 113 144

Total Nos. 1066 1261 1958 3136 5113 986 1179 1867 3018 4984 82 85 99 118 149

Source: CES workings.

Road Distance Matrix

Ori

gin

/Dest

ina

tio

n

Ma

nga

lore

Ka

sar-a

go

d

Ka

nn

ur

Ko

zh

iko

de /

Bey

po

re

Ka

lep

eta

My

sore

Ma

lla

pp

-ura

m

Th

ris

sur

Pa

lak

-ka

d

Co

imb

a-t

oo

r

Ero

de

Ern

ak

-ula

m

Alu

va

Pa

inav

u

Ma

du

rai

Ala

pp

uzh

a

Th

iru

va

na

tha

pu

ram

Mangalore 0 49 138 224 224 288 277 368 377 447 288 412 417 520 627 475 629

Kasaragod 0 89 175 247 240 228 295 314 404 516 355 371 431 538 419 566

Kannur 0 86 108 151 139 219 225 315 427 266 282 342 452 330 477

Kozhikode /

Beypore 0 72 236 53 144 133 229 341 188 196 256 380 240 391

Kalepeta 0 130 125 216 215 170 282 260 268 328 535 312 463

Mysore 0 193 284 248 201 359 439 418

Mallappuram 0 67 90 133 135 143 203 327 206 363

Thrissur 0 67 115 227 64 69 47 339 177 320

Palakkad 0 48 206 131 136 191 381

Coimbatoor 0 158 193 172 256 434

Ernakulam 0 21 63 241

Aluva 0 134

Madurai 0 425 262

Alappuzha 0 147

Thiruvanatha-

puram 0

Rail Distance Matrix

Kerala Other States

Origin/ Destination

New

Ma

ng

lore

Ka

sarg

od

Ka

nn

ur

Th

ala

ssery

Ba

da

gara

Ko

zh

iko

de

Ern

ak

ula

m

Ala

pp

uzh

a

Ko

llam

Th

iru

va

na

nth

ap

uram

Sh

ora

nu

r

Th

ris

sur

Pa

lla

ka

d

Co

imb

ato

re

Na

ga

rcoil

Ma

dh

ura

i

New Manglore 0 46 132 153 175 221 412

469 566

632 307 338 351 407 705

935

Kasargod 0 86 107 129 175 363 420 520 586 261 292 311 361

656 886

Kannur 0 21 43 89 277 334 434 500 175 206 219 275

570 800

Thalassery 0 22 68 256 313 413 479 154 185 198 254

549 779

Badagara 0 46 237 294 391 457 132 163 176 232

530 760

Kozhikode 0 188 245 345 411 86 31 130 186

481 711

Ernakulam 0 57 154 220 105 71 149 205

293 523

Alappuzha 0 97 163 162 131 208 262

232 462

Kollam 0 66 259 259 307 361

135 365

Thiruvanantha-puram 0 325 325 371 425

71 301

Shoranur 0 31 44 100

398 628

Thrissur 0 77 131 365 595

Pallakad 0 54 442 672

Coimbatore 0 496 726

Nagarcoil 0 230

Madhurai 0

Sea Distance Matrix

P

AR

TIC

UL

AR

S

MO

RM

UG

AO

MA

NG

LO

RE

KA

NN

UR

TH

AL

AS

SE

RY

BA

GA

DA

RA

KO

ZH

IKO

DE

BE

YP

OR

E

PO

ON

AN

I

NA

RA

KA

L

KO

CH

I

AL

AP

PU

ZH

A

KO

LL

AM

TH

IRU

VA

NA

TH

AP

UR

AM

CO

LA

CH

EL

TU

TIC

OR

IN

Mormagao 0 180 244 256 266 286 293 316 361 366 391 431 471 495 611

Mangalore 0 107 119 129 149 156 179 224 229 254 294 334 358 474

Kannur 0 25 45 53 78 123 128 150 190 230 254 370

Thalassery 0 15 39 46 70 116 120 143 183 223 247 363

Bagadara 0 26 36 63 108 114 135 175 215 239 355

Kozhikode 0 10 43 88 93 116 156 196 220 336

Beypore 0 32 82 87 109 149 189 213 329

Poonani 0 59 64 86 126 166 190 306

Narakal 0 8 37 80 120 144 260

Kochi 0 34 76 116 140 256

Alappuzha 0 55 95 111 227

Kollam 0 40 75 191

Thiruvanatha-Puram 0 35 151

Colachel 0 125

Tuticorin 0

Unloaded & loaded Cargo at Beypore

Traffic (000 T) %

Unloaded Loaded Total Unloaded Loaded

2000-01 46.08 43.46 89.55 51.5 48.5

2001-02 67.09 33.17 100.26 66.9 33.1

2002-03 47.67 32.18 79.85 59.7 40.3

2003-04 34.30 17.88 52.18 65.7 34.3

2004-05 46.98 29.35 76.33 61.5 38.5

2005-06 83.61 40.15 123.76 67.6 32.4

2006-07 111.50 48.43 159.93 69.7 30.3

2007-08 72.03 63.23 135.26 53.3 46.7

ECONOMIC SCENARIO OF KERALA

2.1 Economy of the State

2.1.1 Net State Domestic Products of Kerala

Trends of States economy in terms of Net State Domestic Product (NSDP) (constant prices 1999-00) in recent

past and the corresponding statistics of All-India Net Domestic Product (NDP) are given in Table 2.1.

Table 2.1: Economic Indicators of Kerala and All India

(Rs. Billion)

Years NSDP of

Kerala NDP All India % Share of Kerala

2000-01 630 16756 3.76

2001-02 661 17760 3.72

2002-03 709 18419 3.85

2003-04 755 20047 3.76

2004-05 826 21253 3.89

2005-06 902 23266 3.88

2006-07(P) 1004 25496 3.94

2007-08(P) 1111 27812 3.99

CAGR(2001-08)(%) 8.4 7.5

Source : Central Statistical Organization, Govt .of India, New Delhi & Economic

Review of Kerala 2007-08

The sector-wise contribution of NSDP in terms of rupees and share percent of various sectors of the state

economy are presented in Table 2.2.

Table 2.2: Economic Indices of Kerala

Particulars Units 2000-

01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006-

07(P)

2007-

08

Area Sq Kms 38874.99

Population Millions 31.8 32.0 32.3 32.6 32.9 33.2 33.4 33.7

Population Density Person /Sq

Km

817 822 831 838 846 853 860 867

NSDP (1999-00

prices)

Rs Billions 630.5 661.2 708.8 754.7 825.8 902.4 1004.3 1110.6

Per Capita NSDP

(1999-00 prices)

Rs 19854 20681 21942 23157 25119 27218 30028 32961

Sectoral Contribution of NSDP

Agriculture Rs Billions 132.0 133.9 137.2 134.9 143.6 147.9 152.9 155.5

Mining Rs Billions 1.9 2.1 2.5 3.0 3.1 4.5 5.2 6.6

Manuf.+ Const. Rs Billions 118.3 121.7 132.9 146.8 177.8 207.8 243.1 289.0

Electricity Rs Billions 8.2 8.5 8.8 9.3 8.4 8.6 8.7 9.1

Transport &

Communication Rs Billions

54.1 59.9 65.3 76.9 90.1 98.0 111.0 129.3

Others Rs Billions 316.0 335.0 362.1 383.7 402.9 435.7 483.4 521.1

TOTAL 630.5 661.2 708.8 754.7 825.8 902.4 1004.3 1110.6

Share of Sectors

Agriculture % 20.9 20.3 19.4 17.9 17.4 16.4 15.2 14.0

Mining % 0.3 0.3 0.4 0.4 0.4 0.5 0.5 0.6

Manuf.+ Const. % 18.8 18.4 18.7 19.5 21.5 23.0 24.2 26.0

Electricity % 1.3 1.3 1.2 1.2 1.0 1.0 0.9 0.8

Transport &

Communication % 8.6 9.1 9.2 10.2 10.9 10.9 11.1 11.6

Others % 50.1 50.7 51.1 50.8 48.8 48.3 48.1 46.9

Total 100 100 100 100 100 100 100 100

Source: Economic Review of Kerala, 2007-08

Kerala has a total area of about 38875 Sq. Kms (roughly 2 % of the total area of the country) and in 2007-08 the state

population was about 33.7millions i.e. about 3 % of the total Indian population. The population density of the state was

867 in 2007-08 persons per Sq. Km, which is very high as compared to the All India density of 325.

Over the years some changes in the contribution of various sectors of economy have been observed.

In recent years secondary and tertiary sectors have been the engine of growth of the state economy.

In 2007-08 the share of tertiary sector (others, transport & communications) was the highest (59%)

followed by secondary sector (manufacturing, construction electric power, transport &

communication (27%). The contribution of the primary sector (agriculture & mining) was only

14%) whereas in 2000-01 the respective shares were 59 %,20% & 21%. The economy is moving

from reliance on agriculture sector to other sectors.

2.1.2 Economy of the Hinterland of Beypore Port

The likely immediate hinterland of Beypore port keeping the geographical distances in view, is

expected to be the districts of Kozhikode (KKD), Wayanad (WYN) & Malappuram (MLPM) as the

primary hinterland and districts of Palakkad (PLKD) & Kannur (KNR) & other districts of Kerala

as the immediate secondary hinterland. The primary & immediate secondary hinterland has about

43% of total area but only 39 % of the State population reside here. Table 2.3 gives the area &

population in the hinterland.

Table 2.3: Area & Population of the Hinterland of Beypore Port

(P) Provisional

Source: Economic Review of Kerala 2007-08 & Census of India Data

Particulars KKD WYN MLPM PLKD KNR Hinterland Kerala

Area (000 Sq Km) 2.47 2.30 3.87 4.71 3.06

16.42

38.88

Population (Millions)

2007 3.03 0.85 3.96 2.75 2.49 13.1 33.53

2010(P) 3.10 0.87 4.05 2.81 2.55 13.39 34.32

2015(P) 3.28 0.92 4.29 2.98 2.70 14.16 35.47

2020(P) 3.56 1.00 4.66 3.23 2.93 15.38 36.41

2025(P) 3.95 1.11 5.16 3.58 3.24 17.03 37.13

Table 2.4 shows the estimate of GSDP in the State & the hinterland for the year 2007-08.

Table 2.4: GSDP in the Hinterland of the port & the State-2007-08

(Billion Rs) Particulars Kerala Hinterland %

share

of

Hinter-

land

KKD WYD MLPM PLKD KNR Total

Agriculture 182 12 11 17 14 13 67 36.8

Mining 7 1 0 1 0 1 3 42.9

Manufacturing &

Construction. 318 29 3 21 26 22 101 31.8

Electricity 18 1 0 1 1 1 4 22.2

Transport &

Communication 162 13 2 11 9 10 45 27.8

Others 577 54 11 47 44 46 202 35.0

Total 1265 111 27 98 94 93 423 33.4

Percent Share

Agriculture 14.4 10.8 39.6 17.5 14.9 14.5 15.9 14.9

Mining 0.6 1.2 0.4 0.8 0.4 1.5 0.9 0.4

Manufacturing &

Construction 25.1 26.2 12.3 21.7 27.5 23.5 24 27.5

Electricity 1.5 1.2 0.4 0.6 1.3 0.6 0.9 1.3

Transport &

Communication 12.8 11.8 7.2 11.1 9.7 10.4 10.6 9.7

Others 45.7 48.9 40.1 48.2 46.3 49.6 47.7 46.3

Total 100 100 100 100 100 100 100 100

Source: Economic Review of Kerala, 2007-08

It may be seen from above that in the hinterland of the proposed port the contribution to GSDP

from agriculture, manufacturing including construction, & Others is marginally higher than those in

Kerala on the whole. Whereas the contribution from electricity & transport & communications in

the hinterland is lower.

The hinterland of the port covers about 39% of total area, 34% of total population & accounts for

33% of the GSDP of the State.

2.2 Status of Various Sectors of State Economy

2.2.1 Agricultural Sector in Kerala

In agricultural sector growth of agricultural produce in Kerala has been about 2,7% per annum where as at all India

level the growth was only 1.6 % . Production of cereals has declined to 0.65 MT in 2006-07 from 6.79 MT in 2004-05

i.e annualized decline of 2.2% pa. This decline is mainly due to the decline in pulses & other cereals. There has been a

2 % decline in Spices. Rubber (14%) coffee(4.6%),Tea (4.1%) and tapioca (2.5%) have shown growth in last three

years. Area , Production & productivity of various crops in Kerala are presented in Table 2.5.

Table 2.5: Area, Production & Productivity of various crops in Kerala

Particulars

Area ( 000 Ha) Production (000T) Productivity (Kg/Ha)

2004-

05

2005-

06

2006-

07

2007-08 2004-

05

2005-

06

2006-

07

2007-

08

2004-

05

2005-

06

2006-

07

2007-

08

Food grains

Rice 290.0 275.7 263.5 228.9 667.1 630.0 641.6 528.5 2300 2285 2435 2309

Other

Cereals

4.9 2.9 3.0 3.7 3.2 1.6 1.8 2.0 653 552 600 541

Pulses 8.4 10.6 6.9 4.5 8.4 7.9 5.2 3.4 1000 745 754 756

Sub total 303.3 289.2 273.4 237.1 678.7 639.5 648.6 533.9 2238 2211 2372 2252

Spices

Pepper 237.7 238.0 216.7 215.2 75.0 87.6 64.3 63.9 316 368 297 297

Chilies 0.8 1.2 1.4 1.5 0.8 1.2 1.4 1.4 1000 970 964 964

Ginger 10.0 12.2 11.1 7.3 45.3 56.3 42.5 28.0 4530 4604 3835 3835

Turmeric 2.9 3.4 3.9 3.2 6.2 8.2 10.0 8.1 2138 2434 2548 2548

Cardamom 41.4 41.4 41.4 39.8 8.6 9.8 8.5 7.0 208 236 207 177

Areca-nut 107.6 108.6 102.1 100.7 110.3 119.3 110.0 108.5 1025 1099 1077 1077

Sub total 400.4 404.8 376.6 367.6 246.2 282.4 236.7 216.9 615 698 628 590

Cash Crops

Sugarcane 1.9 1.2 1.2 4.7 15.4 9.2 6.6 26.6 8105 7500 5669 5669

Cashew-nut 81.5 78.3 70.5 58.2 60.6 68.3 61.7 50.9 744 872 875 875

Tapioca 88.5 90.5 87.1 83.3 2400 2568 2519 2409 27119 28367 28911 28911

Coffee 84.6 84.6 84.6 84.1 54.3 60.2 59.5 48.7 642 711 703 578

Tea 35.0 35.0 35.4 36.2 49.5 56.3 53.7 61.8 1414 1606 1517 1706

Rubber 480.7 494.4 502.2 512.0 590.8 739.2 780.4 753.0 1229 1495 1554 1471

Others

Others 110.7 123.9 117.6 111.6 911.3 949.5 908.5 860 8230 7661 7724 7710

Total 1587 1602 1549 1495 5007 5373 5275 4961 3156 3354 3406 3319

Source: Economic Review of Kerala , 2007-08

As compared to the previous year the productivity in Kerala has been lower for all the major crop

groups mainly due to drop in production. Rice is the major food-grains crop in Kerala.

2.2.2 Agricultural Sector in Hinterland

Similar information for rice grown in the hinterland is as under in Table2.6.

Table 2.6: Area under Cultivation, Production & Productivity in

Districts in the Hinterland

Hinterland

Area ( 000 Ha) Production (000T) Productivity(Kg/Ha)

2005-

06

2006-

07

2007-

08

2005-

06

2006-

07

2007-

08

2005-

06

2006-

07

2007-

08

KKD 4.7 4.3 3.8 6.3 6.1 5.1 1343 1418 1341

WYD 11.5 11.8 12.4 28.4 30.7 32.1 2468 2597 2585

MLPM 14.9 15.1 9.5 31.4 33.1 21.7 2108 2192 2290

Primary 31.1 31.2 25.7 66.1 69.9 58.9 2125 2239 2292

PLKD 113.9 109.2 99.2 266.6 270.1 244.2 2341 2473 2463

KNR 9.2 8.8 7.2 17.4 17.4 14.1 1885 1965 1951

Secondary 123.1 118.1 106.4 284.0 287.5 258.4 2306 2435 2428

Total 154.2 149.3 132.1 350.1 357.4 317.3 2270 2394 2402

Source: Economic Review of Kerala , 2007-08

As regards rice, PLKD holds the first position with maximum area, production and the best

productivity. KKD is the worst district because of lowest value of all the three variables.

2.2.3 Industrial Sector in Kerala

Industries Covered in the Annual Survey of Industries (2005-06)

Results of the Annual Survey of Industries carried out annually by the Central Statistical

Organisation, Govt. of India for 2003 to 2006 for all India as well as those of Kerala are presented

in Table 2.7.

Table 2.7: Results of Annual Survey of Industries 2005-06 at All India & Kerala

Unit 2002 2003 2004 2005 2006 2007 CAGR

All INDIA

Number of Factories 000 128.6 130.0 129.1 136.4 140.2 144.8 2.40

Fixed Capital Bln Rs 4319.6 4475.9 4733.1 5130.9 6069.4 7151.1 10.61

Value of In put Bln Rs 7792.3 9161.2 10396.2 13629.4 15436.6 19483.7 20.12

Value of Out put Bln Rs 9624.6 11305.6 12874.0 16725.6 19083.5 24085.5 20.14

Net value added Bln Rs 1443.0 1723.4 2029.5 2599.1 3118.6 3957.3 22.36

KERALA

Number of Factories 000 4.8 4.7 5.5 5.5 5.6 5.6 2.9

Fixed Capital Bln Rs 73.0 67.9 69.3 74.0 85.5 76.9 1.1

Working Capital Bln Rs

Value of In put Bln Rs 199.3 223.6 270.6 3129.0 380.3 462.1 149.2

Value of Out put Bln Rs 239.7 266.5 318.3 3611.9 432.7 505.8 16.1

Net value added Bln Rs 33.9 36.3 40.9 40.7 44.7 35.6 1.0

Percent Share of Kerala in All India

Number of Factories % 3.7 3.6 4.3 4.0 4.0 3.8

Fixed Capital % 1.7 1.5 1.5 1.4 1.4 1.1

Working Capital % 0.0 0.0 22.7 0.0 0.0 0.0

Value of In put % 0.1 0.1 3.1 23.0 2.5 2.4

Value of Out put % 2.5 2.4 0.3 21.6 2.3 2.1

Net value added % 2.4 2.1 2.0 1.6 1.4 0.9

Source: Annual Survey of Industries CSO, Govt. of India

The share of Net Value addition from industries in Kerala in 2006 was about 1.4 % of Net Value

addition from All Indian Industries in 2005-06. Over the years it is observed in Indian economy that

port traffic growth in the state is roughly 1.7 to 2 times its share in the Net Value addition of the

Industries. So the port traffic from the state is expected to be about 2.5 % of Total All India Port

traffic. In 2008-09, the port traffic from the state should have been about 18.6 MTPA but the actual

traffic has been 15.4 MTPA. This means that there is low growth of traffic in the state.

Performance of Important Industries in Kerala

During 2005-08 the Cost of production & Sales of important industries of Kerala were as presented

in Table 2.8.

Table 2.8: Performance of Government of India Companies in Kerala in terms of Value of

Production and Sales Turnover

(Rs Lakh) Name of Company Cost of Production Total Sales Turnover Port

Facility

Require

ment

2005-06 2006-07 2007-08 2005-06

2006-

07

2007-

08

2 3 4 5 6

Hindustan Organic

Chemicals Ltd

23800 39918 43775 24898 41200 46530 Yes

Hindustan Newsprint Ltd. 30296 31519 29681 113050* 115000 29861 Yes

Cochin Refineries Ltd. 1490209 2113920 2273655 1791151 Yes

Hindustan Latex Ltd. 18023 18995 18662 18558* 17561 19537 Yes

Hindustan Machine Tools

Ltd

4908 4290 5004 5052 4828 5068 Yes

Fertilizers and Chemicals

Travancore Ltd

139231 NA NA 141400 NA NA Yes

Instrumentation Ltd. 5201 5700 NA 5975 6565 NA Yes

Cannanore Spinning &

Weaving Mills

1931 1867 NA 1632 1406 NA Yes

Indian Rare Earths Limited 8307 NA NA 10560 NA NA Yes

Hindustan Insecticides Ltd. 3263 6105 NA 2880* 5352 NA Yes

Cochin Shipyard Ltd. 40776 79556 72403 37353 71974 83379

Kerala Lekshmi Mills 2368 2816 1719 2331 2506 1926

Parvathy Mills 859 1250 NA 1083 2607 NA

* Revised

** Consequent to the merger of Cochin Refineries Ltd (KRL) with Bharat Petroleum Corporation

Ltd during 2006-07, KRL ceased to exist and became a Strategic Business Unit (SBU) and the sales

are recorded at corporate level.

Source: Economic Review of Kerala 2007-08

Industrial Policy of Kerala

The Government understands the importance and key role of Private, Public & Joint sectors in

providing accelerated growth and in improvement and up gradation of industrial as well as social

infrastructure. Based upon the available opportunities and the potential of this region, the State

Govt., has identified the following segments of industries as thrust areas for special attention

Petro-chemicals & Downstream Industries

Electronics & Information Technology

Iron & Steel, Metallurgical and Engineering

Textiles

Leather and Leather Products

Food Processing, Edible Oil, Vegetable, Processing and Aquaculture

Development of Medicinal plants, Rubber, Palm oil and Tea

Manufacture of basic drugs, chemicals and pharmaceuticals

Optimal utilization of minerals and development of mine based industries

Gems and Jewellery

Promotion of Tourism and Tourism related activities

In addition, Kerala has framed marketing policies for small & medium scale enterprises which

include price preference in purchases; exemption from payments of Earnest money; distribution of

products through the public distribution system; construction and development of industrial estates,

plots, commercial and trade offices; extension of credit support through the Financial Agencies.

Kozhikode in particular is a very backward district with respect to the industries due to lack of

infrastructure, scattered inputs, low power availability, high population density and lack of modern

technology in industries. But the globalization of trade, changing investment climate may be option

for the development of industries. Presently there is possibilities of setting food processing

industries in Kozhikode.

Foreign Direct Investment

Foreign Direct Investment (FDI) is a means to supplement domestic investments and bridge the investment - savings

gap. The role of Foreign Direct Investment in the up-gradation of technology, skills and managerial capabilities is well

accepted. Additional investments over and above the investments possible with the available from domestic resources

help in providing employment opportunities. The flow of Foreign Direct Investment to Kerala including Lakshadweep

from January 2001 to March 2005 was Rs.379.6 Crores which constitutes about 0.5% of total FDI inflows in India ( Rs.

76191 Crores) . Break up of the FDI in various industries in Kerala is as presented in Table 2.9.

Table 2.9: Industrial FDI proposals in Kerala (2001-2005)

Industry Number of FDI Investment (Rs Millions)

Chemicals 4 5

Electronics 5 121

Food 9 153

Hospitals 5 184

IT 29 369

Metals 2 0.03

Minerals 2 399

Misc. 28 2289

Pharmaceuticals 2 4

Rubber 7 25

Textile 2 1

Tourism 15 246

110 3796

Source: Department of Industries, Government of Kerala

Out of the above FDI projects only one Food processing project worth Rs 10 Millions is expected in Kannur District

i.e. the hinterland of the proposed port. List of FDIs are placed in Annexure 2.1

Total Industries in the State

In Kerala, as per the Statistics Department, there were 18411 registered factories in 2005-06 with

total 409,800 employees. In 2000-01 the total registered numbers of factories were 18,554 with

manpower as 436,410. It implies that there has been a general decrease in industrial sector.

Table 2.10: Growth of Working Factories and

Average Daily Employment in Kerala 2001 07

Year Factories (Nos.) Employment (Nos.)

2001 18554 436410

2002 18262 408813

2003 18239 404257

2004 18319 405514

2005 18002 650997

2006 18411 666186

2007 18659 666186

CAGR -0.2% 7.3


2.2.4 Industries in the Hinterland

A review of the industries in the hinterland reveals that during 2007 about 47 % of factories with

about 20% of work force are in hinterland of the port. The factories in the area are small in nature

& no major industry is in this region. Table 2.11 gives the number of factories & workers in Kerala

and the hinterland of the Port.

Table 2.11: Number of factories & workers in Kerala

Hinterland 2001 2002 2003 2004 2005 2006 2007

Factories

Palakkad 1975 1893 1867 1873 1892 1875 1875

Malappuram 1003 1014 1014 1020 1033 1022 1022

Kozhikode 141 134 133 135 118 135 149

Wayanad 1708 1723 1707 1714 1508 1720 1925

Kannur 1729 1694 1696 1705 1826 1699 1699

Sub Total 8557 8460 8420 8451 8382 8457 8677

Kerala 18854 18262 18239 18319 18002 18411 18659

% of hinterland 45.4 46.3 46.2 46.1 46.6 45.9 46.5

Workers

Palakkad 24337 24811 23336 23430 38694 38694 38694

Malappuram 13409 9861 9196 9290 15689 15689 15689

Kozhikode 17004 21902 20141 20252 30595 34878 34878

Wayanad 25722 6546 6528 6561 3282 3741 3741

Kannur 23484 24658 24804 24945 37236 37236 37236

Sub Total 103956 87778 84005 84478 125496 130238 130238

Kerala 436410 408813 404257 405514 650997 666186 666186

% of hinterland 23.8 21.5 20.8 20.8 19.3 19.5 19.5


Small Scale Industries in Kozhikode

Particularly in Kozhikode districts there are 272 SSI units in 2005-06, employing 986 persons.

Total investment in these Units is of Rs 720 lakhs. Total value of services produced was Rs 8530

lakhs Numbers & percentage of various type of SSI units in the Kozhikode districts were as given

in Table 2.12.

Table 2.12: Small Scale Industries in Kozhikode

SSI Unit Number Percent

Food Products 78 28.7

Personal service 36 13.2

Chemical Products 32 11.8

Metal Products 28 10.3

Wood Products 18 6.6

Hosiery and Garments 16 5.9

Leather products 14 5.1

Paper products & Printing 12 4.4

Machinery & Parts except Electrical 9 3.3

No. Metallic Mineral Products 8 2.9

Transport Equipment & Parts 6 2.2

Rubber & Plastic Products 6 2.2

Construction 4 1.5

Electrical Machinery and apparatus 4 1.5

Jute, Hemp and Mesta Textiles 1 0.4

Total 272 100.0


Food products, Chemicals Leather, Hosiery Metals & Rubber & plastic may generate some port

traffic These SSI units cover 63 % of the units.

2.2.5 Power Sector in Kerala

Power sector in Kerala mainly comprises of hydel & thermal power plants. On 31 March 2008 the installed capacity of

power projects in the State was 2662 MW (details as given in Table 2.13).

Table 2.13: Installed Capacity of power plants in Kerala 2007-08

Description MWs %

Hydel Power Plants

State owned 1855.6 69.7

Captive 33.0 1.2

Sub total 1888.6 70.9

Thermal Power Plants

Central Govt. owned 359.6 13.5

State owned 234.6 8.8

Private 177.4 6.7

Sub total 771.6 29.0

Winds Generated 2.0 0.1

Total 2662.2 100.0


Power generation during the year was about 8780 Million units. The Annual demand was 15631 Units. The local

production was only 57%of the demand. The state purchased about 7000 Million units from the power plants of Central

Govt. & 855 Million units from the Private Power Plants in 2007-08 to meet the demand.

In order to increase the generation capacities the state has 21 plants in the pipeline to add 450MW and the expected

power generation potential of 1070 MU annually. All the above projects are Hydel Power plants.

2.2.6 Transport Sector in Kerala

Roadways/Railways

Socio-economic development in a modern society cannot be possible without an efficient transport

system. Smooth and safe movement of passengers and goods in a least possible time is the basic

criteria for an efficient transport system. In the year 2008 total length of surfaced road in Kerala is

28.2 thousand km maintained by PW(R)D and 122 thousand Kms maintained by the Panchayats.

The similar figures in 2001 were 22 & 82 thousand Kms i.e. 4 & 6 % p.a. increase of road length

Table 2.14 presents road & Rail infrastructure in the state

Table 2.14: Transport Infrastructure by land modes in Kerala

Description Units 2001 2002 2003 2004 2005 2006 2007 2008

Road Length

(PWD) 000 Kms

21.5 21.3 21.5 21.5 26.3 28.2 28.2 28.2

Road Density

Km/Sq

Km

0.553 0.549 0.552 0.552 0.676 0.725 0.725 0.725

Panchayat

Roads 000 Kms

81.8 87.1 92.1 95.5 99.0 108.5 109.1 122.2

Motor Vehicles 000 1910.2 2111.9 2315.3 2552.2 3122.1 3558.7 4025.4 4442.4

Motor Vehicle

density

MV/Sq

Km

4914 5433 5956 6565 8031 9154 10355 11427

Buses & Stage

carriages 000

58.9 65.7 72.0 87.4 94.5 127.6 138.9 148.0

Goods Vehicles 000 163.4 173.9 195.4 211.8 234.2 264.3 294.5 321.9

Railway Route

kms

000 1.12 1.15 1.15 1.15 1.15 1.15 1.15 1.15


Ports

It may be seen that over the years the share of port traffic of the State has been gradually declining. In 2001 the share

was 3.6 % but by 2008 it had dropped 2.21%. The drop is mainly due to the disappearance of Illuminate Sand traffic

(about 50000 T) from Neendakara from 2002 onwards. Table 2.15 shows the Kerala port traffic trends.

Table 2.15: Traffic trends (000 T)

Years Kochi Beypore State ports

excluding

Beypore

Total State

ports

Kerala

Ports

% Share of

Kerala in All

India Traffic

2001 13117 90 70 160 13277 3.60

2002 12057 100 28 128 12185 3.17

2003 13024 80 9 89 13113 3.11

2004 13572 52 7 60 13632 2.94

2005 14095 76 8 84 14179 2.71

2006 13887 124 11 135 14022 2.46

2007 15257 160 13 173 15430 2.39

2008 15810 135 12 147 15957 2.21

2009 15208 140(P) 13(P) 153(P) 15361(P) 2.06

CAGR(2005-09) 1.92 16.38 13.07 16.08 2.02

CAGR(2007-09) -0.16 -6.43 1.47 -5.83 -0.22

(P) Provisional

Source: Port Dept, Govt. of Kerala

Some of the ongoing port projects in the state are already given in the Inception Report para 9.6 & 9.7. Some

of the proposals for development of port/port based facilities in Beypore are as under:

Goa shipyard in collaboration with Mazagon Dock Ltd has proposed a naval shipyard at Beypore for

defense vessels. GoK has agreed to the proposal and has promised to give 42 acres of the land for the

purpose. The matter is under active consideration of Goa Shipyard and GoK.

In 2005 there was a proposal to develop Beypore Port through SPV route with M/s Parisons Group of

Industries. The GoK was an equity partner in the SPV. M/s I&LFS was also a partner in the SPV. A

DPR was prepared by M/s Price Water House & Coopers. But this proposal did not materialise so

far.

There was a proposal to set up a Rs 300 crore storage terminal for imported LPG at Chaliyam,

opposite Beypore Port. The project was to be set up by M/s PV Petroleum Products & Mobil Peevee

Co. Ltd. (MPCL). The import of LPG was through the Port at Beypore. The project was to be

implemented in two phases. Due to bureaucratic hassles and fishermen opposition, the project was

upheld even though MOEF have given environment clearance. In the meantime M/s MPCL have set

up a LPG Bottling plant near Chennai in Tamil Nadu.

Kerala State Govt. have engaged Consultants to prepare Master Plan for a 10 crore marine park near

Beypore. The park will have 5 components, i.e., seafood pre-processing units, marine products value-

added production centre, fishing boat repairs and service, data and communication centre, training

centre and crche and activity centre. If the project materializes it will generate employment for 2,000

people and increase the export by 300 crores within next 5 years.

IWT

Inland Water Transport (IWT) is an energy efficient and cheaper mode of transport for bulk commodities

especially those originating and terminating on the water fronts. It is environment friendly and has high

employment potential. Cargo transportation in an organized manner through waterways takes place in few

states namely Assam, Kerala, Kerala, Goa etc and are confined to specific location. Goods operations in an

organized manner are confined to few specific locations. Most of the waterways suffer various hazards like

shallow water and narrow width of the channel during dry weather, siltation, bank erosion, absence of

infrastructure facilities like terminals and inadequacy of navigational aids. The basic requirements for

identified as a mode of transport are reduction in cost, time and enhancement of safety and reliability of cargo.

National Waterway no 3, comprising of river length of 168 Kms from Kottapuram to Kollam, along with two

canal- Champakaran Canal (14 Kms) and Udyogamandala canal (23 Kms) is the main IWT route in the state.

There are 7 terminals along the river for cargo & passenger movement. Champakaran canal is the connection

between Cochin port & Fertilisers factory of M/s FACT. Apart from this waterway there are about 900 Kms of

navigable backwaters in the state. The sweet waters of river & sea water result in a unique ecosystem in the

backwaters. The rich aquatic population of various species and the beautiful scenery makes these backwaters a

heaven for cruise tourism. Recently an ICD has been set up in Kottayam to handle about 6000 as feeding point

to Cochin Port.

During last two years 2006-07 & 2007-08 the IWT performance is shown in in Table 2. 16.

Table 2.16: Performance of IWT in Kerala

Description State Water

Transport

Department

KSINC Ltd

2006-07 2007-08 2006-07 2007-08

Number of Boats 81 81 25 25

Boats in Operation 47 47 5 0

Cargo Volumes (lakh T) 0 0 5.92 5.19

Passenger Traffic (Lakhs) 153 148 5.29 na


PORTS IN KERALA

3.1 Introduction

Kerala a maritime state is located in southwestern India. Neighbouring states are

Karnataka to the north and Tamil Nadu to the south and east. The Arabian sea is to the west

and the Western Ghats towering 500-2700 ms in the east .With a network of 44 rivers,

Kerala enjoys unique geographical features that have made it one of the most sought after

tourist destinations in Asia due to pleasant climate, a long shoreline with serene beaches,

tranquil stretches of emerald backwaters, lush green hill stations , exotic wildlife,

picturesque waterfalls, Sprawling plantations and paddy fields, ayurvedic health centers

etc. Kerala has hundred percent literacy rate. For administrative purpose, the state is

divided into fourteen districts. Thiruvananthapuram the capital city.

Kerala has a coastline of about 570 Kms. Along this coast there ia a major port at Cochin

(Kochi) and there are 13 other state ports. All the ports are governed by the Ports Act 1908.

In addition the major port of Kochi is under The Major Ports Act 1963. Kochi is under the

control of a Port Trust appointed by the Central Govt. and the other ports are under the

administrative control of the Port Department, Govt. of Kerala (GoK).

3.1.1 Major Ports in Kerala

Cochin (Kochi)

The Major Port of Cochin is about 87 nM south of Beypore. Till 2005-06 Cochin handled about 12 to 13 .5

MT of cargo but since then the cargo handling has increased between 15 to 16 MTPA. Cochin handles Crude

oil & POL about 10.5 MTPA, Coal & FRM to the tune of 0.7 MTPA, Container about 3.3 MTPA (250000

TEUs) and about 0.7 MTPA of Break Bulk cargo. A brief note on facilities, traffic and the future

development prospects at Cochin Port are placed in Ex. 3.1.

3.1.2 State Ports

There are 13 minor/fishing port located in the state as under.

Kovalam / Vizhinjam

Thiruvananthapuram

Kollam (Thankasserry)

Neendakara

Allappuzha

Munambam ( Kodungallur )

Ponnani

Beypore

Kozhikode

Thalasserry

Kannur

Azhikkal

Kasargod

Apart from the above ports GoK is also thinking of developing port facilities at the green

field locations -Manjeswaram & Neeleshwaram both in Kasargod district and at

Manakkodam & Kayamkulam in Alappuzha District. According to information obtained

from Departments of Ports, Government of Kerala, the available facilities at the State port

are as in Table 3.1

Table 3.1: Available Facilities at State Ports in Kerala

Name of ports and location:

Latitude/Longitude. Depth Facilities Available

KOVALAM / VIZHINJAM

Wharf depth 5m Basin depth 6.0m

Breakwaters and calm basin, basin depth of 6m; Cargo wharf of 80m in length; One mobile crane, 1.5/10 MT Capacity ; Transit shed, 300 sq.m ; one small tug; road access available.

THIRUVANANTHAPURAM

Anchorage Port; Depth 18m.

Pier 240m in length, 6m depth at the end; Four godowns of 325 sq.m each; Open stacking area of 1200 sq.m; Road access available.

KOLLAM (Thankasserry) Depth 6m. Breakwaters and calm basin, basin depth of 6m; godowns of 750 sq.m; road access available.

NEENDAKARA

Inside breakwaters 2.5m; Anchorage

Port.

Breakwaters and calm basin for barges, lighters etc. basin depth 2-3m; RCC wharf 70m in length ; one closed godown, 300 sq.m; four nos. self-propelled barges of 200-T capacity each; one 10-T bollard pull tug and one small tug; road access available.

ALAPPUZHA

Anchorage port; One pier 387m in length, 5m water at the end. Three pairs of trolley lines and 108 trollies for cargo movement on the pier; road access available.

MUNAMBAM / KODUNGALLUR

5m Breakwaters and calm basin available

PONNANI

2m on sand bar. RCC wharf 294m long and 24m broad; one closed godown of 300 sq.m; open stacking area of 5000 sq.m. ; road access available.

BEYPORE 3.5m

Breakwaters and calm basin for small vessels; wharfs 300 m in length, depth alongside - 3 - 4 m; 5 nos. wharf crane 3 tonnes capacity each; 2 godowns of 600 tons capacity; 3 nos. of small tug ; 12 ton bollard pull; road access available.

KOZHIKODE

Open roadstead.

Five nos. closed godowns having total area of 630 sq.m and

open cargo shed of 450 sq.m; road access available.

THALASSERRY

Open roadstead. Two godowns of 150 sq.m.

KANNUR

Open roadstead. One godown of 133 sq.m.

Name of ports and location:

Latitude/Longitude. Depth Facilities Available

AZHIKKAL

3m.

Breakwaters under construction, calm basin available with average depth of 5m ; RCC jetty 38m long; one hand-operated crane; one 200 hp tug; large extent of vacant land available for acquisition and development.

KASARGOD

1.5m on the sand bar.

No infrastructure facilities. There is scope of reclamation of approx. 100 acres of land, which can be utilised for providing in infrastructure facilities.

MANJESWARAM

(KASARGOD DISTRICT) Green field site.

KAYAMKULAM

(ALAPPUZHA DISTRICT) Green field site.

NEELESWARAM

(KASARAGOD DISTRICT) Green field site.

MANAKKODAM

(ALAPPUZHA DISTRICT) Green field site.

Source: http://www.keralaports.gov.in

Azhikkal, Kozhikode/Beypore & Vizhinjam are the active ports. Most of the ports in the State are seasonal in

nature with insufficient infrastructure to handle even medium and small sized vessels throughout the year.

To upgrade the port facilities in the state Govt. of Kerala allowed private investment in

Intermediate and Minor Ports from 1994.

3.2 Port Traffic in Kerala

3.2.1 Cargo Trends

Ports traffic at Kerala State ports in relation with Major Ports & All India Ports traffic since 2000-01 are

presented in Table 3.2.

Table 3.2: Traffic Scenario at All Ports vis--vis Kerala ports

Financial

Year

(upto

31

March)

Port Traffic(MTPA) Percent Share

All India Kerala State

Major

Ports

State

&Other

Ports

All India

Ports

Kochi

(Major

Port)

Beypore Other

State

Ports

All State

ports

Kerala

Ports

Kochi/

All India

Kerala/

All India

Beypore/

Kerala

(1) (2) (3)=

(1)+ (2)

(4) (5) (6) (7)=(5)

+ (6)

(8)=(7)+

(4)

(9)=(4)*

100/(3)

(10)=(8)

* 100/(3)

(10)=(5)

* 100/8

2000-01 281.1 87.2 368.3 13.12 0.090 0.070 0.160 13.277 3.56 3.60 0.674

2001-02 287.6 96.3 383.9 12.06 0.100 0.028 0.128 12.185 3.14 3.17 0.823

2002-03 313.7 108.3 422.0 13.02 0.080 0.009 0.089 13.113 3.09 3.11 0.609

2003-04 344.8 118.9 463.7 13.57 0.052 0.007 0.060 13.632 2.93 2.94 0.383

2004-05 383.6 140.0 523.6 14.10 0.076 0.008 0.084 14.179 2.69 2.71 0.538

2005-06 423.6 145.4 569.0 13.89 0.124 0.011 0.135 14.022 2.44 2.46 0.883

2006-07 463.8 181.0 644.8 15.26 0.160 0.013 0.173 15.430 2.37 2.39 1.036

2007-08 519.3 201.2 720.5 15.81 0.135 0.012 0.147 15.957 2.19 2.21 0.848

2008-09 530.3 215.0 745.3 15.21 0.140 0.013 0.153 15.361 2.04 2.06 0.911

Source: Department of Transport Research, Ministry of SRTH, Govt. of India, IPA & GoK

Overall share of traffic at Kerala ports in All India Traffic has dropped from 3.6% in 2000-01 to 2.06% in

2008-09. The traffic trends at Beypore and other ports of Kerala since 2001 are presented in Fig 3.1:

Fig 3.1: Traffic trend Kerala state ports (excl Major port)

Source: CES In-house Assessment

A3.2.2 State Port Traffic (Loaded & Unloaded)

In 2007-08 port traffic handled in Kerala was about 16 MT, of which Kochi alone handled about 99% (15.8

MT) and other ports handled only 0.147 MT). Table 3.3 shows the traffic trends (loaded and unloaded) at

various State Ports.

Traffic trend

0

50

100

150

200

2001

2002

2003

2004

2005

2006

2007

2008

2009

'000

T

Beypore Ports excluding Beypore Kerala State Ports

Table 3.3: Traffic Loaded & unloaded at State Ports

(000T)

Years Cargo Azhikkal Beypore Vizhinjam Neendakara Others Total

20

00-0

1

Unldd 46.1 11.7 57.8

Ldd 2.7 43.5 4.1 51.6 101.9

Total 2.7 89.6 15.9 51.6 159.7

% 1.7 56.1 10.0 32.3 100.0

20

01-0

2

Unldd 67.1 21.9 89.0

Ldd 1.0 33.2 4.8 39.0

Total 1.0 100.3 26.7 128.0

% 0.8 78.3 20.9 100.0

20

02-0

3

Unldd 0.1 47.7 2.6 50.4

Ldd 0.1 32.2 6.9 39.2

Total 0.2 79.9 9.5 89.5

% 0.2 89.2 10.6 100.0

200

3-0

4

Unldd 34.3 34.3

Ldd 17.9 7.4 25.3

Total 0.0 52.2 7.4 59.6

% 0.0 87.6 12.4 100.0

2004

-05

Unldd 0.0 47.0 47.0

Ldd 0.3 29.4 7.6 37.3

Total 0.3 76.3 7.6 84.3

% 0.4 90.6 9.1 100.0

2005

-06

Unldd 83.6 0.2 83.8

Ldd 40.2 11.0 51.2

Total 0.0 123.8 11.2 135.0

% 0.0 91.7 8.3 100.0

2006

-07

Unldd 0.4 111.5 111.9

Ldd 0.2 48.4 12.1 60.7

Total 0.5 159.9 12.1 172.6

% 0.3 92.7 7.0 100.0

2007

-08

Unldd 72.0 72.0

Ldd 0.3 63.2 11.5 75.0

Total 0.3 135.3 11.5 147.0

% 0.2 92.0 7.8 100.0

Source : Port Department, Government of Kerala

Unldd: Unloaded; Ldd: Loaded

Details of Traffic loaded and unloaded from different types of ships are placed as 3.2.

The loaded & unloaded cargo at the state ports has been as under in Fig 3.2.

Fig 3.2: Unloaded & Loaded cargo at State Ports


Since 2002-03 mainly Beypore & Vizhinjam are the two ports handling state cargo traffic, Beypore mainly

about 85-90% and Vizhinjam less than 10%. Azhikkal was handling very negligible percentage of cargo

which has even dropped to a bare 0.17% in 2007-08. No cargo was handled at Neendakara after 2000-01.

Port-wise cargo trend is presented in Fig 3.3.

Fig 3.3: Port-wise cargo at state Ports


In 2008-09 Beypore handled about 140,000 MT port cargo (about 92%) out of total state

port cargo traffic, which was around 153,000 MT.

3.2.3 OD of Kerala State Ports

The Ports of Kerala, based on the DGCIS data on movement of cargo by Rail & IWT

modes, the OD of traffic is as under:

Unloaded & Loaded Traffic at State Ports

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008

'00

0T

Unloaded Loaded

Percent Share of Ports in Traffic

0

10

20

30

40

50

60

70

80

90

100

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Per

cent

Azhikkal Beypore Vizhinjam Neendakara

Traffic from & to Kerala 73 %

Traffic from Tamilnadu as 26% &

Balance 1 % from Delhi, Assam 7 other parts.

3.2.4 Ship Calls at Kerala State Ports

During 2004-05, 247 vessels called at the state ports. Of these 156 were the sailing vessels & 91 ocean going

ships. See Fig 3.4

Fig 3.4: Vessel Mix at Kerala State ports


Vessel Mix at Kerala State Ports 2004-05

63%

Sailing

Vessels

37%

Sea Going Ships

MACRO ANALYSIS OF BREAK BULK CARGO AT ALL INDIA LEVEL (MATHEMATICAL MODELS)

4.1 Presently only Break Bulk (BB) commodities are being handled at the State Ports. (Appendix 3) An attempt

has been made to assess the BB cargo at the State Ports of Kerala as a percent share of overall BB at Indian

Ports.

4.2 BB aggregation at ports is accounted by a large number of port users and covers a wide spectrum of commodities.

Projection based on end user approach for BB is likely to be too complex to deal with. Over the years from 2001 to

2008 the BB traffic handled at All India, Kochi & Kerala ports are presented in Table 4.1

Table 4.1: Break Bulk Traffic trends at All India, Kochi , Kerala State ports & Karnataka Ports

Year BB Traffic (MTPA) % Share of in AI( BB)

All

In

dia

(A

I)

Koch

i

Sta

te P

ort

s

Ker

ala

(Tota

l)

Karn

atk

a

Ker

ala

&

karn

atk

a

Ker

ala

Karn

atk

a

Ker

ala

&

karn

atk

a

Ker

ala

Sta

te

port

s

2001 62.0 1.0 0.160 1.157 2.087 3.244 1.87 3.37 5.23 0.26

2002 66.9 1.0 0.128 1.110 1.991 3.101 1.66 2.98 4.64 0.19

2003 78.4 0.8 0.089 0.913 2.009 2.922 1.16 2.56 3.73 0.11

2004 84.3 0.8 0.060 0.909 4.044 4.953 1.08 4.80 5.88 0.07

2005 97.4 0.7 0.084 0.831 4.582 5.413 0.85 4.70 5.56 0.09

2006 100.1 0.9 0.135 1.015 5.342 6.357 1.01 5.34 6.35 0.14

2007 127.3 1.0 0.173 1.182 8.179 9.361 0.93 6.42 7.35 0.14

2008 138.4 0.7 0.147 0.818 11.02 11.84 0.59 7.96 8.55 0.11

CAGR

2001-08 12.2 -5.5 -1.2 -4.8 26.8 20.3

2004-08 13.2 -5.7 25.1 -2.6 28.5 24.3

Source: Major Port Profile, IPA

Port Dept., Kerala

4.3 In the All India scenario of BB traffic the share of Kerala ports has declined from 1.87% in 2001 to 0.59% in 2008

as depicted in Table 4.1. However the share of Kerala & Karnataka has shown an increasing trend generally from

5% in 2001 to 8.5% in 2008. The share of BB in Kerala State Ports (other than Major port, Kochi) has declined

from 0.26% to 0.11% over the same period.However, in last four years the BB traffic at Kerala State Ports has

shown some increasing trend. The annual compounded growth has been very high (25.1% p.a.)

4.4 For estimation of Break Bulk cargo at All Indian Ports the consultants have used the following models Time

trend Analysis - Port traffic (BB) & time

Growth Method - Port traffic (BB) & the achieved growth over the past

Regression Analysis - Port Traffic (BB ) & GDP

To estimate the future of BB cargo in All India level, four different mathematical methods have been tried,

namely growth method, time trend method & regression (linear & power function) with GDP as independent

variable. The results are given in Table 4.2

Table 4.2: Various Mathematical Models tried for estimation of BB- All India

Particulars Growth Method Regression Time trend

Power Function Linear

Dependent

variable

BB Traffic BB Traffic BB Traffic BB Traffic

Independent

Variable

GDP GDP Years

Equation Y= (-)0.000056*

(GDP)^1.41943

Y=GDP*0.0054

9-37.63

Y=Year*10.53

47-210022

Regression

coefficient

0.96912

0.96911

0.962748

Growth

Expected

12 % growth at

All India level

(2009-10) to 10%

by (2029-30)

Gradually decreasing from 8% (2009-

10) to 6.5% (2029-30)


The future prospects of BB at Indian ports with all the above mathematical models could be as in Table 4.3.

Table 4.3: Future BB traffic at all Indian Ports

by different Methods

(MTPA)

Years Future BB at All Indian Ports

Regression Time Trend % Growth

Method Linear with

GDP

Power

function with

GDP

2010 156 161 152 155

2011 171 179 162 173

2012 188 199 173 193

2013 205 222 183 216

2014 224 246 194 241

2015 244 273 205 269

2020 365 453 257 456

2025 528 734 310 755

2030 742 1159 363 1223

Growth (%) 8.55 10.96 4.69 11.50


As the present growth rate of BB is about 12% pa (Table 4.1), hence the results of regression by Power function

with GDP as independent variable, where the CAGR is 11% in over next 20 years, have been adopted and further

split to get BB traffic at other Kerala ports. The obtaining share of Kerala State Ports in All India was 0.13% (over

last 3 years 2005 to 2008). Thus in initial year share of state port has been taken as 0.15% and the same increases

to 0.35% by 2030 (Growth of about 4% p.a.). So the future BB traffic at Kerala ports could be as under in Table

4.4

Table 4.4: Future traffic estimates at All India, Kochi, Kerala State Ports & Karnataka Ports

(MTPA)

Year All

India

(AI)

Percent

Share of

Kerala

&

Karna-

taka

Kerala

&

Karna

-taka

Karna

-taka

Kerala Ports

Total Kochi State

Ports

Bey-

pore

Others

2008

(Actual) 138.0 8.6 11.8 11.0 0.82 0.67 0.147 0.135 0.012

2010 179.0 9.1 16 13.9 2.41 2.24 0.25 0.22 0.02

2011 199.2 9.3 19 15.7 2.80 2.57 0.29 0.26 0.03

2012 221.6 9.5 21 17.7 3.25 2.95 0.33 0.30 0.03

2013 246.2 9.6 24 19.9 3.77 3.38 0.38 0.34 0.04

2014 273.2 9.8 27 22.4 4.37 3.87 0.43 0.39 0.04

2015 302.9 9.9 30 25.2 5.06 4.43 0.49 0.44 0.05

2020 500.2 10.8 54 44.5 9.48 8.53 0.95 0.85 0.09

2025 805.7 11.7 94 76.5 17.81 16.03 1.78 1.60 0.18

2030 1158.9 12.5 145 115.9 28.97 26.08 2.90 2.61 0.29

CAGR

(%)

10.2 1.7 12.1 11.3 17.6 18.1 14.5 14.4 15.6


Port Capacities

On 31st March 2008 the Port capacities for handling Break Bulk commodities was as

given in Table 4.5.

Table 4.5 : Port capacities for handling Break Bulk commodities

Source: Major Port Profile 2007-08 IPA; maximum BB handled in the last 8 years taken

as capacity of other ports.

On Macro basis there will be shortfall in the port capacity in these two states in 2016 onwards.

Particulars Capacity Percent Share

Major Ports 144 78.3

Other ports 40 21.7

Karnataka

(NMP+Max at Other Ports)

18.1 9.8

Kerala

(Kochi +Max at Other Ports)

4.5 2.4

Kerala & Karnataka 22.6 12.5

All India 184 100

Summary of Traffic Forecast as per Approach I

Over the last decade the maximum traffic handled at Beypore had been 160 thousand tones (2006-07).

Considering 160000T as capacity of Beypore Port, the additional traffic requiring port facilities in near

future could be as given in Table 4.6:

Table 4.6 : Summary of Traffic Forecast

Year Expected

Traffic

at All

Indian

ports

Share

Of

Kerala

Ports

Expected

at

Kerala

State

Ports

Expected

at Beypore

Capacity

Additional

Traffic

Requiring

Port

Facilities

(MTPA) % 000T 000T 000T 000T

2007-08

(Actual)

138 0.106 147 135 160

2011-12 199 0.163% 258 237 160

77

2012-13 222 0.170% 303 279 160 119

2013-14 246 0.178% 356 328 160 168

2014-15 273 0.185% 418 384 160 224

2019-20 453 0.229% 914 840 160 680

2025-25 734 0.283% 1949 1793 160 1633

2029-30 1159 0.350% 4056 3732 160 3572

By 2030 the port has to be capable to handle at least 3732 MT of Break Bulk Cargo.

Any modifications of the existing facilities will not be sufficient to handle the expected potential.

ESTIMATION OF TRAFFIC BY END USERS METHOD

5.1 Traffic forecast for the Beypore port is carried out under three scenarios namely

Scenario 1 With doubtful Development of Azhikal & Ponani Port

Scenario 2 With definite Development of Azhikal & Ponani Port

Scenario 3 Traffic for Lakshadweep Jetty

The following sections give the detailed working of various commodities for each Scenario

5.2 Scenario 1 ( With doubtful Development of Azhikal & Ponani Port)

5.2.1 Medium Traffic Potential

POL Products

Presently MS Oil, High Speed Diesel& SKO are the POL products needed in the districts in & around

Kozhikode. All these are brought to the Depots of IOC & HPCL through rail & road from Cochin &

Mangalore. IOC & HPCL cater to the demand of the districts in and around Kozhiokode. The present

capacities & operation of IOC & HPCL is as under.

IOC

The daily storage capacity at the IOC Depot is 19373 Kl. The product wise capacities are as in Table 5.1

Table 5.1 Storage Ca

beypore traffic data

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