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Tamil Research Institute RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR DEVELOPMENT OF COLACHEL PORT AT TAMILNADU FINAL REPORT Shipping cost savings of 10-12% Time Savings of 3-4 days Jebel Ali Salalah Indian TS hub To China (Far-East) From Africa Current routes Potential changed routes due to Colachel Note: % of shipping cost savings calculated only on shipping voyage costs (fuel, opex etc.) and does not include port charges, inland transport charges Figure 8: Potential time and cost savings for liners by using Colachel (III) 4. Mitigate risk to Indian trade due to dependence on international ports The current scenario where 25% of the country's EXIM cargo is trans-shipped at international ports is not ideal since this makes Indian industries vulnerable to increase in costs, potential inefficiencies, congestion issues etc. at these international ports. This creates long term risks for competitiveness of India's trade and thus is another important reason for promoting a TS port in India. 23 www.tamilri.com
Tamil Research Institute RAPID TECHNO-ECONOMIC FEASIBILITY REPORT FOR DEVELOPMENT OF COLACHEL PORT AT TAMILNADU FINAL REPORT 2. SCOPE OF THE TEFR The Rapid Feasibility Study was commissioned with an aim to assess the technical and financial feasibility of the proposed port. Scope of the study was laid out by the proposal document released before bidding process for the project. The TEFR is structured to cover the following aspects of the study: • Need for the project. • Traffic surveys and demand assessment also taking into account other Ports in the vicinity. • Engineering surveys and investigations. • Identify area required for development of Port, availability of land, cost, etc. • Location and layout of the Project facility and services. • Initial Environment Examination (IEE). • Preliminary designs of project facility and services. • Structuring of project including different options for developing the project. • Schedules for modification and / or Utility Relocation Plans • Preparation of Cost Estimates • Establishing the Technical feasibility and Financial Viability of the Proposal • Review and update of previous reports on Colachel Port. • Feasibility in developing Colachel Port as a satellite port of VOCPT, considering the availability of deep draft. • Key outputs of the rapid feasibility study – traffic, port location and port layout and the resultant financials for the port. • Key success factors for the port Details out the planned connectivity to the port both in terms of road and railways. • Phases the costs based on capacity phasing and construction planning. • Projects free cash flow from the project over the years; calculates resultant IRR. 24 www.tamilri.com
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