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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 nonmajor 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

Kandla

Break Bulk Cargo Vessel 2008 - 09


JNP Mormugao NMP Cochin
(Kochi)

Mumbai

NUMBER OF VESSEL CALLS


0-10
121
231
8
10-20
141
198
9
20-30
127
142
1
30-40
33
31
40-50
13
53
50-80
13
17
80+
Total
448
672
18
PERCENT OF VESSEL CALLS
0-10
27.0
34.4 44.4
10-20
31.5
29.5 50.0
20-30
28.3
21.1
5.6
30-40
7.4
4.6
40-50
2.9
7.9
50-80
2.9
2.5
80+
Total
100
100
100

West
Coast
Ports

3
2
2
1

24
22
24

44
12
3
3
1

407
362
275
68
67
30
0
1209

70

63

37.5
25.0
25.0
12.5

34.3
31.4
34.3

69.8
19.0
4.8
4.8
1.6

33.7
29.9
22.7
5.6
5.5
2.5

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.

METHODOLOGY TO
ESTIMATE TRAFFIC

FIG. 4.1

MATHEMATICAL MODEL

Models Used are Traffic with GDP Growth


o Linear Regression
o Power Function
Growth Model
Time Trend Analysis

Estimate BB
Traffic at All
Ports in India

Traffic for
Ports
Elsewhere

Traffic for All


Kerala Ports

Traffic for
Other Kerala
State Ports

Traffic for
Kochi Port

Traffic for
Beypore Port

METHODOLOGY TO
ESTIMATE TRAFFIC
POTENTIAL

FIG. 4.2

END USER METHOD

Review Economy of Kerala


State

Future Plans for Industries


Transport Sector
Power Sector
Proposed FDI
Agriculture

Identify Users of
Beypore Port

Interview/Meeting/Discussi
ons with Users IOCL (POL & LPG)
HPCL
Indian Timber Merchants
Association
Lakshadweep Cooperative Federation
PWD of Lakshadweep
Flour Mills
Steel Mills
Port Officials

Estimate/Discuss
Traffic Potential/
Usage of Beypore
Port in Future

Traffic
Forecasting

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.

FIG. 4.3
During the presentation of the Draft Report & the meeting with the GoK on 5 to 7 th
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

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

Karnataka
Kerala State

Kerala &

Karnataka

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

5.82

6.51

0.10

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

0.69

ports

Kerala

Karnataka

Kerala &

(Total)

Karnataka

2001

(AI)

Kerala

(Total)

% Share of in AI( BB)

Kochi

State Ports
Kerala

BB Traffic (MTPA)
All India

Year

CAGR

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

Regression Analysis - Port Traffic (BB) & GDP

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

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
Regression
Time trend
Method
Power Function
Linear
Dependent
variable
Independent
Variable
Equation
Regression
coefficient
Growth
Expected

Source:

BB Traffic

BB Traffic

BB Traffic

BB Traffic

GDP

GDP

Years

Y= (-)0.000056*
(GDP)^1.41943

Y=GDP*0.005
49-37.63

Y=Year*10.5
347-210022

0.96912

0.96911

0.962748

12 % growth at
Gradually decreasing from 8%
All India level
(2009-10) to 6.5% (2029-30)
(2009-10) to
10% by (202930)
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
Share Expected Expected
Traffic
at Kerala
at
Of
State
Beypore
at All
Kerala
Ports
Indian
Ports
ports

2007-08
(Actual)
2011-12
2012-13
2013-14
2014-15
2019-20
2025-25
2029-30

Capacity
*

(MTPA)

000T

000T

000T

138

0.106

147

135

160

199
222
246
273
453
734
1159

0.163%
0.170%
0.178%
0.185%
0.229%
0.283%
0.350%

258
303
356
418
914
1949
4056

237
279
328
384
840
1793
3732

160
160
160
160
160
160
160

Scope of
Development
of Beypore
port facilities
to handle
traffic
000T

77
119
168
224
680
1633
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)

SCENARIO 1
POL
LPG
Wheat
Other
Chemicals
Cement
Sand
Metals
Steel
Timber
Misc.
Containers
000 TEU
Total
SCENARIO 2
POL
LPG
Wheat
Other
Chemicals
Cement
Sand
Metals
Steel
Timber
Misc.
Containers
000 TEU
Total
SCENARIO 3
POL
LPG
Cement
Misc.
Total

2008
Actual
2013
2015
2020
2025
DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL
1.9
97.0
113.4
170.5
251.1
0.2
6.7
8.2
13.9
23.6
9.9
40.0
43.9
55.4
69.8
3.4
5.5
6.7
10.8
17.3
24.4
38.8
46.6
64.9
80.9
14.7
348.5
401.7
587.5
878.1
0.0
1100.1
1125.5 1221.6 1353.9
22.0
8.0
8.9
11.3
14.4
0.0
100.0
108.2
131.6
156.3
0.0
65.0
71.7
89.3
108.7
58.8
104.0
113.7
123.6
133.6
0.0
68.4
110.4
256.8
538.8
0.0
5.7
9.2
21.4
38.9
135.3
1982.0
2158.9 2737.2 3626.5
DEFINATE DEVELOPMENT OF AZHIKAL & PONANI
20.8
22.8
31
46.8
6
6.5
8
10
40
43.9
55.4
69.8
5.5
6.7
10.8
17.3
4
5
8
12
31.4
38.5
66.8
109.5
114.5
128
171.5
235.1
8
8.9
11.3
14.4
100
108.2
131.6
156.3
48.8
53.7
65.4
78.6
45
50
65
90
66
108
108
108
5.7
9.2
9.2
9.2
490
580.2
732.8
947.8
TRAFFIC AT LAKSHADWEEP JETTY
1.9
2.5
3.2
4.5
5.5
0
0.1
0.1
0.2
0.2
16.6
17.0
18.3
18.7
1.5
1.7
2.3
3.1
20.7
22.0
25.3
27.5

2030
348.0
36.0
88.0
27.9
100.8
1350.0
1547.4
18.4
181.2
129.0
143.6
660.0
55.0
4630.3
71
12
88
27.9
17
159.9
319.6
18.4
181.2
93.4
130
108
9.2
1226.4
7.0
0.3
19.5
4.3
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
SCENARIO 1
Wheat
Other
Chemicals
Cement
Sand
Metals
Steel
Timber
Misc.
Containers
000 TEU
Total
SCENARIO 2
Wheat
Other
Chemicals
Cement
Sand
Metals
Steel
Timber
Misc.
Containers
000 TEU
Total
SCENARIO 3
POL
LPG
Cement
Misc.
Total

2013

2015

2020

2025

DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL


40.0
43.9
55.4
69.8
5.5
6.7
10.8
17.3
38.8
46.6
64.9
80.9
348.5
401.7
587.5
878.1
1100.1
1125.5
1221.6
1353.9
8.0
8.9
11.3
14.4
100.0
108.2
131.6
156.3
65.0
71.7
89.3
108.7
104.0
113.7
123.6
133.6
68.4
110.4
256.8
538.8
5.7
9.2
21.4
38.9
1878.3
2037.3
2552.8
3351.8
DEFINATE DEVELOPMENT OF AZHIKAL & PONANI
40.0
43.9
55.4
69.8
5.5
6.7
10.8
17.3
4.0
5.0
8.0
12.0
31.4
38.5
66.8
109.5
114.5
128.0
171.5
235.1
8.0
8.9
11.3
14.4
100.0
108.2
131.6
156.3
48.8
53.7
65.4
78.6
45.0
50.0
65.0
90.0
66.0
108.0
108.0
108.0
5.7
9.2
9.2
9.2
463.2
550.9
693.8
891.0
TRAFFIC AT LAKSHADWEEP JETTY
2.5
3.2
4.5
5.5
0.1
0.1
0.2
0.2
16.6
17
18.3
18.7
1.5
1.7
2.3
3.1
20.7
22
25. 3
27.5

2030

88.0
27.9
100.8
1350.0
1547.4
18.4
181.2
129.0
143.6
660.0
55.0
4246.3
88.0
27.9
17.0
159.9
319.6
18.4
181.2
93.4
130.0
108.0
9.2
1143.4
7.0
0.3
19.5
4.3
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

2013
2015
2020
2025
2030

Lakshadweep
Passengers
No. of Ship
Passen- Calls
(nos)
gers
(000)
11.6
12.1
14.0
16.9
21.5

78
81
94
113
144

Marina Tourist
Total
Boats
Ship
No. of
No. of
Ship &
Passen- calls@ PassenBoat
60 per
gers
gers
Calls
boat
(000)
(000)
(nos.)
(nos.)
54.5
910
66.1
988
65.5
1090
77.6
1171
105.3
1755
119.3
1849
172.6
2875
189.5
2988
288.1
4800
309.6
4944

Source: CES In-house Working

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

DEVELOPMENT OF AZHIKAL & PONANI DOUBTFUL


Wheat
40.0
43.9
Other foodgrain
5.5
6.7
Chemicals
38.8
46.6
Cement
348.5
401.7
Sand
1100.1 1125.5
Metals
8.0
8.9
Steel
100.0
108.2
Timber
65.0
71.7
Misc.
104.0
113.7
Containers
68.4
110.4
000 TEU
5.7
9.2
Total
1878.3 2037.3
Passenger
54.5
65.5
Total( 65Kg /Adult(40%) & 35 Kg /Child) 1881.2 2039.6
DEFINATE DEVELOPMENT OF AZHIKAL & PONANI
Wheat
40.0
43.9
Other food grain
5.5
6.7
Chemicals
4.0
5.0
Cement
31.4
38.5
Sand
114.5
128.0
Metals
8.0
8.9
Steel
100.0
108.2
Timber
48.8
53.7
Misc.
45.0
50.0
Containers
66.0
108.0
000 TEU
5.7
9.2
Total
463.2
550.9
Passenger
54.5
65.5
Total( 65Kg /Adult(40%) & 35 Kg /Child)
466.1
554.4
FOR LAKSHADWEEP JETTY
POL
2.5
3.2
LPG
0.084
0.1
Cement
16.6
17
Misc.
1.5
1.7
Total
20.684
22
Passenger
11.6
12.1
Total( 65Kg /Adult(60%) & 35 Kg /Child)
21.23
22.57

2020

2025

2030

55.4
10.8
64.9
587.5
1221.6
11.3
131.6
89.3
123.6
256.8
21.4
2552.8
105.3
2556.5

69.8
17.3
80.9
878.1
1353.9
14.4
156.3
108.7
133.6
538.8
38.9
3351.8
172.6
3357.8

88.0
27.9
100.8
1350.0
1547.4
18.4
181.2
129.0
143.6
660.0
55.0
4246.3
288.1
4256.4

55.4
10.8
8.0
66.8
171.5
11.3
131.6
65.4
65.0
108.0
9.2
693.8
105.3
699.4

69.8
17.3
12.0
109.5
235.1
14.4
156.3
78.6
90.0
108.0
9.2
891.0
172.6
900.1

88.0
27.9
17.0
159.9
319.6
18.4
181.2
93.4
130.0
108.0
9.2
1143.4
288.1
1158.7

4.5
0.153
18.3
2.3
25.253
14
25.91

5.5
0.219
18.7
3.1
27.519
16.9
28.31

7
0.324
19.5
4.3
31.124
21.5
32.13

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
10000
BB
15000
10000
Cement
15000
10000
Chemicals
15000
10000
Cont
25000
1000*
Passenger
vessels
2000*

LOA
133
152
133
152
119
140.8
130
195
64
81

Beam
19.8
22.6
19.8
22.6
15.0
19.0
21.2
28.5
12.1
14.4

Draft
8
9.2
8
9.2
7.4
10.2
7.3
10.1
2.6
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

BB

2013

2020

2025

2030
DEVELOPMENT OF AZHIKAL &
PONANI DOUBTFUL

000 T

Cement
Cont

2015

2013

2015

2020

2025

2030

LAKSHADWEEP JETTY

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

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

5.7

9.2

21.4

38.948

55

5.7

9.2

9.2

9.2

9.2

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

000 TEU

Cargo total

2013
2015
2020
2025
2030
DEFINATE DEVELOPMENT OF AZHIKAL &
PONANI

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

BB

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

6000

cement

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

BB

Nos.

244

255

285

335

373

61

67

87

112

146

Cement

Nos.

47

54

79

118

180

15

22

Cont

Nos.

10

16

36

33

46

10

16

16

16

16

301

325

400

486

599

76

89

112

143

184

910

1090

1755

2875

4800

910

1090

1755

2875

4800

78

81

94

113

144

1066

1261

1958

3136

5113

986

1179

1867

3018

4984

82

85

99

118

149

Parcel Size

Ship calls

Cargo total
Passengers
Total

Nos.

Source: CES workings.

Aluva
Madurai
Alappuzha
Thiruvanathapuram

Aluva

Painavu

Madurai

Alappuzha

Thiruvanathapuram

Kasar-agod

Ernak-ulam

Ernakulam

Erode

Coimbatoor

Coimba-toor

Palakkad

Palak-kad

Thrissur

Thrissur

Mallappuram

Mallapp-uram

Mysore

Mysore

Kalepeta

Kalepeta

Kannur
Kozhikode /
Beypore

49

Kozhikode / Beypore

Kasaragod

Kannur

Mangalore

Mangalore

Origin/Destination

Road Distance Matrix

138

224

224

288

277

368

377

447

288

412

417

520

627

475

629

89

175

247

240

228

295

314 404

516 355

371

431

538

419 566

86

108

151

139

219

225 315

427 266

282

342

452

330 477

72

236

53

144

133 229

341 188

196

256

380

240 391

130

125

216

215 170

282 260

268

328

535

312 463

193

284

248 201

359 439

418

67

90 133

135

143

203

327

206 363

67 115

64

69

47

339

177 320

48

206 131

136

191 381

158 193

172

256 434

21

63 241

227

134
0

425 262
0 147
0

Rail Distance Matrix

Kasargod
Kannur
Thalassery
Badagara
Kozhikode
Ernakulam
Alappuzha
Kollam
Thiruvanantha-puram
Shoranur
Thrissur
Pallakad
Coimbatore
Nagarcoil
Madhurai

Kannur

Thalassery

Badagara

Kozhikode

Ernakulam

Alappuzha

Kollam

Thiruvananthapuram

Shoranur

Thrissur

Pallakad

Coimbatore

Nagarcoil

Madhurai

New Manglore

Kasargod

Origin/ Destination

Other States

New Manglore

Kerala

46

132

153

175

221

412

469

566

632

307

338

351

407

705

935

86
0

107

129

175

363

420

520

586

261

292

311

361

656

886

21

43

89

277

334

434

500

175

206

219

275

570

800

22

68

256

313

413

479

154

549

779

46

237

294

391

457

132

198
176

254

185
163

232

530

760

188

245

345

411

86

31

130

186

481

711

57

154

220

105

71

149

205

293

523

97

163

162

131

208

262

232

462

66

259

259

307

361

135

365

325

325

371

425

71

301

31

44

100

398

628

77

131

365

595

54

442

672

496

726

230
0

Tuticorin

TUTICORIN

Colachel

COLACHEL

Thiruvanatha-Puram

THIRUVANATHAP
URAM

Kollam

KOLLAM

Alappuzha

ALAPPUZHA

Kochi

KOCHI

Narakal

NARAKAL

Poonani

POONANI

Beypore

BEYPORE

Kozhikode

KOZHIKODE

Bagadara

BAGADARA

Thalassery

THALASSERY

Kannur

KANNUR

Mangalore

MANGLORE

Mormagao

MORMUGAO

PARTICULARS

Sea Distance Matrix

180

244

256

266

286

293

316

361

366

391

431

471

495

611

107

119

129

149

156

179

224

229

254

294

334

358

474

25

45

53

78

123

128

150

190

230

254

370

15

39

46

70

116

120

143

183

223

247

363

26

36

63

108

114

135

175

215

239

355

10

43

88

93

116

156

196

220

336

32

82

87

109

149

189

213

329

59

64

86

126

166

190

306

37

80

120

144

260

34

76

116

140

256

55

95

111

227

40

75

191

35

151

125

0
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)

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

8.4

7.5

Years

CAGR(2001-08)(%)

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
Area
Population
Population Density
NSDP (1999-00
prices)
Per Capita NSDP
(1999-00 prices)

Units
Sq Kms
Millions
Person /Sq
Km
Rs Billions

31.8
817

32.0
822

32.3
831

2003 2004
-04
-05
38874.99
32.6
32.9
838
846

630.5

661.2

708.8

754.7

Rs

19854 20681 21942 23157 25119 27218

30028

32961

133.9
2.1
121.7

137.2
2.5
132.9

134.9
3.0
146.8

143.6
3.1
177.8

147.9
4.5
207.8

152.9
5.2
243.1

155.5
6.6
289.0

Sectoral Contribution of NSDP


Agriculture
Rs Billions
Mining
Rs Billions

200001

2001
-02

2002
-03

825.8

2005
-06

200607(P)

200708

33.2
853

33.4
860

33.7
867

902.4 1004.3 1110.6

Manuf.+ Const.

Rs Billions

132.0
1.9
118.3

Electricity

Rs Billions

8.2

8.5

8.8

9.3

8.4

8.6

8.7

9.1

54.1

59.9

65.3

76.9

90.1

98.0

111.0

129.3

316.0
630.5

335.0
661.2

362.1
708.8

383.7
754.7

402.9
825.8

435.7 483.4 521.1


902.4 1004.3 1110.6

Transport &
Communication
Others
TOTAL
Share of Sectors
Agriculture
Mining
Manuf.+ Const.
Electricity
Transport &
Communication
Others
Total

Rs Billions
Rs Billions

%
%
%
%

20.9
0.3
18.8
1.3

20.3
0.3
18.4
1.3

19.4
0.4
18.7
1.2

17.9
0.4
19.5
1.2

17.4
0.4
21.5
1.0

16.4
0.5
23.0
1.0

15.2
0.5
24.2
0.9

14.0
0.6
26.0
0.8

%
%

8.6
50.1
100

9.1
50.7
100

9.2
51.1
100

10.2
50.8
100

10.9
48.8
100

10.9
48.3
100

11.1
48.1
100

11.6
46.9
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
Particulars
Area (000 Sq Km)

KKD

WYN

MLPM

PLKD

KNR

Hinterland
16.42

Kerala
38.88

2.47

2.30

3.87

4.71

3.06

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

3.95

1.11

5.16

3.58

3.24

17.03

37.13

Population (Millions)

2025(P)

(P) Provisional
Source: Economic Review of Kerala 2007-08 & Census of India Data

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

Agriculture
Mining
Manufacturing &
Construction.

Kerala

Hinterland

%
share
of
Hinterland

KKD

WYD

MLPM

PLKD

KNR

Total

182

12

11

17

14

13

67

36.8

42.9

318

29

21

26

22

101

31.8

Electricity
Transport &
Communication

18

22.2

162

13

11

10

45

27.8

Others

577

54

11

47

44

46

202

35.0

Total
Percent Share

1265

111

27

98

94

93

423

33.4

Agriculture

14.4

10.8

39.6

17.5

14.9

14.5

15.9

14.9

0.6

1.2

0.4

0.8

0.4

1.5

0.9

0.4

25.1

26.2

12.3

21.7

27.5

23.5

24

27.5

Mining
Manufacturing &
Construction
Electricity
Transport &
Communication
Others

1.5

1.2

0.4

0.6

1.3

0.6

0.9

1.3

12.8
45.7

11.8
48.9

7.2
40.1

11.1
48.2

9.7
46.3

10.4
49.6

10.6
47.7

9.7
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

Area ( 000 Ha)


Particulars

200405

200506

200607

Production (000T)
2007-08

200405

200506

200607

Productivity (Kg/Ha)
200708

200405

200506

200607

200708

Food grains
Rice
Other
Cereals
Pulses
Sub total

290.0

275.7

263.5

228.9

667.1

630.0

641.6

528.5

2300

2285

2435

2309

4.9

2.9

3.0

3.7

3.2

1.6

1.8

2.0

653

552

600

541

8.4

10.6

6.9

4.5

8.4

7.9

5.2

3.4

1000

745

754

756

303.3

289.2

273.4

237.1

678.7

639.5

648.6

533.9

2238

2211

2372

2252

237.7

238.0

216.7

215.2

75.0

87.6

64.3

63.9

316

368

297

297

0.8

1.2

1.4

1.5

0.8

1.2

1.4

1.4

1000

970

964

964

10.0

12.2

11.1

7.3

45.3

56.3

42.5

28.0

4530

4604

3835

3835

Spices
Pepper
Chilies
Ginger
Turmeric
Cardamom
Areca-nut
Sub total

2.9

3.4

3.9

3.2

6.2

8.2

10.0

8.1

2138

2434

2548

2548

41.4

41.4

41.4

39.8

8.6

9.8

8.5

7.0

208

236

207

177

107.6

108.6

102.1

100.7

110.3

119.3

110.0

108.5

1025

1099

1077

1077

400.4

404.8

376.6

367.6

246.2

282.4

236.7

216.9

615

698

628

590

1.9

1.2

1.2

4.7

15.4

9.2

6.6

26.6

8105

7500

5669

5669

81.5

78.3

70.5

58.2

60.6

68.3

61.7

50.9

744

872

875

875

88.5

90.5

87.1

83.3

2400

2568

2519

2409

27119

28367

28911

28911

84.6

84.6

84.6

84.1

54.3

60.2

59.5

48.7

642

711

703

578

35.0

35.0

35.4

36.2

49.5

56.3

53.7

61.8

1414

1606

1517

1706

480.7

494.4

502.2

512.0

590.8

739.2

780.4

753.0

1229

1495

1554

1471

110.7

123.9

117.6

111.6

911.3

949.5

908.5

860

8230

7661

7724

7710

1587

1602

1549

1495

5007

5373

5275

4961

3156

3354

3406

3319

Cash Crops
Sugarcane
Cashew-nut
Tapioca
Coffee
Tea
Rubber
Others
Others
Total

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
Area ( 000 Ha)
Hinterland

200506

200607

Production (000T)

200708

200506

200607

Productivity(Kg/Ha)

200708

200506

200607

200708

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

113.9

109.2

99.2

266.6

270.1

244.2

2341

2473

2463

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

PLKD
KNR

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
All INDIA
Number of Factories
000
Fixed Capital
Bln Rs
Value of In put
Bln Rs
Value of Out put
Bln Rs
Net value added
Bln Rs
KERALA
Number of Factories
000
Fixed Capital
Bln Rs
Working Capital
Bln Rs
Value of In put
Bln Rs
Value of Out put
Bln Rs
Net value added
Bln Rs
Percent Share of Kerala in All India
Number of Factories
%
Fixed Capital
%
Working Capital
%
Value of In put
%
Value of Out put
%
Net value added
%

2002

2003

2004

2005

2006

2007

CAGR

128.6
4319.6
7792.3
9624.6
1443.0

130.0
4475.9
9161.2
11305.6
1723.4

129.1
4733.1
10396.2
12874.0
2029.5

136.4
5130.9
13629.4
16725.6
2599.1

140.2
6069.4
15436.6
19083.5
3118.6

144.8
7151.1
19483.7
24085.5
3957.3

2.40
10.61
20.12
20.14
22.36

4.8
73.0

4.7
67.9

5.5
69.3

5.5
74.0

5.6
85.5

5.6
76.9

2.9
1.1

199.3
239.7
33.9

223.6
266.5
36.3

270.6
318.3
40.9

3129.0
3611.9
40.7

380.3
432.7
44.7

462.1
505.8
35.6

149.2
16.1
1.0

3.7
1.7
0.0
0.1
2.5
2.4

3.6
1.5
0.0
0.1
2.4
2.1

4.3
1.5
22.7
3.1
0.3
2.0

4.0
1.4
0.0
23.0
21.6
1.6

4.0
1.4
0.0
2.5
2.3
1.4

3.8
1.1
0.0
2.4
2.1
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

200607
6
41200

200708

43775

2005-06
5
24898

46530

Yes

31519

29681

113050*

115000

29861

Yes

1490209

2113920

2273655

1791151

Yes

18023

18995

18662

18558*

17561

19537

Yes

4908

4290

5004

5052

4828

5068

Yes

139231

NA

NA

141400

NA

NA

Yes

5201

5700

NA

5975

6565

NA

Yes

Cannanore Spinning &


Weaving Mills
Indian Rare Earths Limited

1931

1867

NA

1632

1406

NA

Yes

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

859

1250

NA

1083

2607

NA

2
Hindustan Organic
Chemicals Ltd
Hindustan Newsprint Ltd.
Cochin Refineries Ltd.
Hindustan Latex Ltd.
Hindustan Machine Tools
Ltd
Fertilizers and Chemicals
Travancore Ltd
Instrumentation Ltd.

Parvathy Mills

2005-06
3
23800

2006-07
4
39918

30296

2007-08

* 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
Chemicals
Electronics
Food
Hospitals
IT
Metals
Minerals
Misc.
Pharmaceuticals
Rubber
Textile
Tourism

Number of FDI

Investment (Rs Millions)


4
5
9
5
29
2
2
28
2
7
2
15
110

5
121
153
184
369
0.03
399
2289
4
25
1
246
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
2001
2002
2003
2004
2005
2006
2007

Factories (Nos.)
18554
18262
18239
18319
18002
18411
18659

Employment (Nos.)
436410
408813
404257
405514
650997
666186
666186

CAGR

-0.2%

7.3

Source: Economic Review of Kerala 2007-08

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
Factories
Palakkad
Malappuram
Kozhikode
Wayanad
Kannur
Sub Total
Kerala
% of hinterland
Workers
Palakkad
Malappuram
Kozhikode
Wayanad
Kannur
Sub Total
Kerala
% of hinterland

2001

2002

2003

2004

2005

2006

2007

1975
1003
141
1708
1729
8557
18854
45.4

1893
1014
134
1723
1694
8460
18262
46.3

1867
1014
133
1707
1696
8420
18239
46.2

1873
1020
135
1714
1705
8451
18319
46.1

1892
1033
118
1508
1826
8382
18002
46.6

1875
1022
135
1720
1699
8457
18411
45.9

1875
1022
149
1925
1699
8677
18659
46.5

24337
13409
17004
25722
23484
103956
436410
23.8

24811
9861
21902
6546
24658
87778
408813
21.5

23336
9196
20141
6528
24804
84005
404257
20.8

23430
9290
20252
6561
24945
84478
405514
20.8

38694
15689
30595
3282
37236
125496
650997
19.3

38694
15689
34878
3741
37236
130238
666186
19.5

38694
15689
34878
3741
37236
130238
666186
19.5

Source: Economic Review of Kerala 2007-08


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
Food Products
Personal service
Chemical Products
Metal Products

Number
78
36
32
28

Percent
28.7
13.2
11.8
10.3

18
16
14
12
9
8
6
6
4
4
1
272

6.6
5.9
5.1
4.4
3.3
2.9
2.2
2.2
1.5
1.5
0.4
100.0

Wood Products
Hosiery and Garments
Leather products
Paper products & Printing
Machinery & Parts except Electrical
No. Metallic Mineral Products
Transport Equipment & Parts
Rubber & Plastic Products
Construction
Electrical Machinery and apparatus
Jute, Hemp and Mesta Textiles
Total

Source: Economic Review of Kerala 2007-08


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
Hydel Power Plants
State owned
Captive
Sub total
Thermal Power Plants
Central Govt. owned
State owned
Private
Sub total
Winds Generated
Total

MWs
1855.6
33.0
1888.6

69.7
1.2
70.9

359.6
234.6
177.4
771.6
2.0
2662.2

13.5
8.8
6.7
29.0
0.1
100.0

Source: Economic Review of Kerala 2007-08


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
Road Length
(PWD)
Road Density
Panchayat
Roads
Motor Vehicles
Motor Vehicle
density
Buses & Stage
carriages
Goods Vehicles
Railway Route
kms

Units
000 Kms
Km/Sq
Km
000 Kms
000
MV/Sq
Km
000
000
000

2001
21.5

2002
21.3

2003
21.5

2004
21.5

2005
26.3

2006
28.2

2007
28.2

2008
28.2

0.553

0.549

0.552

0.552

0.676

0.725

0.725

0.725

81.8

87.1

92.1

95.5

99.0

108.5

109.1

122.2

1910.2
4914

2111.9
5433

2315.3
5956

2552.2
6565

3122.1
8031

3558.7
9154

4025.4
10355

4442.4
11427

58.9

65.7

72.0

87.4

94.5

127.6

138.9

148.0

163.4
1.12

173.9
1.15

195.4
1.15

211.8
1.15

234.2
1.15

264.3
1.15

294.5
1.15

321.9
1.15

Source: Economic Review of Kerala 2007-08


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
2002
2003
2004
2005
2006
2007
2008
2009
CAGR(2005-09)
CAGR(2007-09)

13117
12057
13024
13572
14095
13887
15257
15810
15208
1.92
-0.16

90
100
80
52
76
124
160
135
140(P)
16.38
-6.43

70
28
9
7
8
11
13
12
13(P)
13.07
1.47

160
128
89
60
84
135
173
147
153(P)
16.08
-5.83

13277
12185
13113
13632
14179
14022
15430
15957
15361(P)
2.02
-0.22

3.60
3.17
3.11
2.94
2.71
2.46
2.39
2.21
2.06

(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 valueadded 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

Cargo Volumes (lakh T)

5.92

5.19

Passenger Traffic (Lakhs)

153

148

5.29

na

Source: Economic Review of Kerala 2007-08

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.
KOVALAM / VIZHINJAM

THIRUVANANTHAPURAM

KOLLAM (Thankasserry)

NEENDAKARA

ALAPPUZHA

MUNAMBAM /
KODUNGALLUR
PONNANI

BEYPORE

KOZHIKODE

THALASSERRY

KANNUR

Depth

Facilities Available

Breakwaters and calm basin, basin depth of 6m; Cargo wharf


Wharf depth 5m
of 80m in length; One mobile crane, 1.5/10 MT Capacity ;
Basin depth 6.0m
Transit shed, 300 sq.m ; one small tug; road access available.
Pier 240m in length, 6m depth at the end; Four godowns
Anchorage Port;
of 325 sq.m each; Open stacking area of 1200 sq.m; Road
Depth 18m.
access available.
Breakwaters and calm basin, basin depth of 6m; godowns
Depth 6m.
of 750 sq.m; road access available.
Breakwaters and calm basin for barges, lighters etc. basin
Inside breakwaters depth 2-3m; RCC wharf 70m in length ; one closed godown,
2.5m; Anchorage 300 sq.m; four nos. self-propelled barges of 200-T capacity
Port.
each;
one 10-T bollard pull tug and one small tug; road
access available.
One pier 387m in length, 5m water at the end. Three pairs
Anchorage port; of trolley lines and 108 trollies for cargo movement on the
pier; road access available.
5m

Breakwaters and calm basin available

RCC wharf 294m long and 24m broad; one closed godown of
2m on sand bar. 300 sq.m; open stacking area of 5000 sq.m. ; road access
available.
Breakwaters and calm basin for small vessels; wharfs 300 m in
length, depth alongside - 3 - 4 m; 5 nos. wharf crane 3 tonnes
3.5m
capacity each; 2 godowns of 600 tons capacity; 3 nos. of small
tug ; 12 ton bollard pull; road access available.
Open roadstead.

Five nos. closed godowns having total area of 630 sq.m and
open cargo shed of 450 sq.m; road access available.

Open roadstead. Two godowns of 150 sq.m.

Open roadstead. One godown of 133 sq.m.

Name of ports and location:


Latitude/Longitude.
AZHIKKAL

KASARGOD

Depth

Facilities Available

3m.

Breakwaters under construction, calm basin available


with average depth of 5m ; RCC jetty 38m long; one handoperated crane; one 200 hp tug; large extent of vacant land
available for acquisition and development.

No infrastructure facilities. There is scope of reclamation


1.5m on the sand
of approx. 100 acres of land, which can be utilised for
bar.
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)

Percent Share

Port Traffic(MTPA)
Kerala State

All India

Major
State All India Kochi Beypore Other All State Kerala Kochi/ Kerala/ Beypore/
Ports &Other Ports (Major
State
ports
Ports All India All India Kerala
Ports
Port)
Ports
(1)

(2)

(3)=
(1)+ (2)

(4)

(5)

(6)

(7)=(5) (8)=(7)+ (9)=(4)* (10)=(8) (10)=(5)


+ (6)
(4)
100/(3) * 100/(3) * 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:
Traffic trend
200

'000 T

150

100

50

Beypore

Ports excluding Beypore

2009

2008

2007

2006

2005

2004

2003

2002

2001

Kerala State Ports

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.

Table 3.3: Traffic Loaded & unloaded at State Ports


(000T)

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

Years

Cargo
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%
Unldd
Ldd
Total
%

Azhikkal Beypore Vizhinjam Neendakara


2.7
2.7
1.7
1.0
1.0
0.8
0.1
0.1
0.2
0.2

0.0
0.0
0.0
0.3
0.3
0.4

0.0
0.0
0.4
0.2
0.5
0.3
0.3
0.3
0.2

46.1
43.5
89.6
56.1
67.1
33.2
100.3
78.3
47.7
32.2
79.9
89.2
34.3
17.9
52.2
87.6
47.0
29.4
76.3
90.6
83.6
40.2
123.8
91.7
111.5
48.4
159.9
92.7
72.0
63.2
135.3
92.0

11.7
4.1
15.9
10.0
21.9
4.8
26.7
20.9
2.6
6.9
9.5
10.6

Others

51.6
51.6
32.3

7.4
7.4
12.4
7.6
7.6
9.1
0.2
11.0
11.2
8.3
12.1
12.1
7.0
11.5
11.5
7.8

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.

Total
57.8
101.9
159.7
100.0
89.0
39.0
128.0
100.0
50.4
39.2
89.5
100.0
34.3
25.3
59.6
100.0
47.0
37.3
84.3
100.0
83.8
51.2
135.0
100.0
111.9
60.7
172.6
100.0
72.0
75.0
147.0
100.0

Unloaded & Loaded Traffic at State Ports


120
100

'000T

80
60
40
20
0
2001

2002

2003

2004

2005

Unloaded

2006

2007

2008

Loaded

Fig 3.2: Unloaded & Loaded cargo at State Ports


Source:

CES In-house Working

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.
Percent Share of Ports in Traffic
100
90
80

Percent

70
60
50
40
30
20
10
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Azhikkal

Beypore

Vizhinjam

Neendakara

Fig 3.3: Port-wise cargo at state Ports

Source: CES In-house Working

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:

3.2.4

Traffic from & to Kerala 73 %

Traffic from Tamilnadu as 26% &

Balance 1 % from Delhi, Assam 7 other parts.

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

Vessel Mix at Kerala State Ports 2004-05

37%
Sea Going Ships
63%
Sailing
Vessels

Fig 3.4: Vessel Mix at Kerala State ports


Source:

CES In-house Working

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

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

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

ports

Kerala &

2.087

Kerala State

Karnatka

1.157

karnatka

Kerala

0.160

karnatka

Kerala &

1.0

(Total)

62.0

Kerala

2001

State Ports

Karnatka

% Share of in AI( BB)

Kochi

BB Traffic (MTPA)
All India (AI)

Year

CAGR

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

Regression Analysis - Port Traffic (BB ) & GDP

Port traffic (BB) & the achieved growth over the past

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

Dependent
variable
Independent
Variable

BB Traffic

Equation
Regression
coefficient
Growth
Expected

Source:

12 % growth at
All India level
(2009-10) to 10%
by (2029-30)

Regression
Power Function
Linear
BB Traffic
BB Traffic

Time trend
BB Traffic

GDP

GDP

Years

Y= (-)0.000056*
(GDP)^1.41943

Y=GDP*0.0054
9-37.63

Y=Year*10.53
47-210022

0.96912

0.96911

0.962748

Gradually decreasing from 8% (200910) to 6.5% (2029-30)

CES In-house Working

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

2010
2011
2012
2013
2014
2015
2020
2025
2030
Growth (%)

Future BB at All Indian Ports


Regression
Time Trend
Linear with
Power
GDP
function with
GDP
156
161
152
171
179
162
188
199
173
205
222
183
224
246
194
244
273
205
365
453
257
528
734
310
742
1159
363
8.55
10.96
4.69

% Growth
Method

155
173
193
216
241
269
456
755
1223
11.50

Source: CES In-house Working


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
Percent
India Share of
(AI) Kerala
&
Karnataka

2008
(Actual)
2010
2011
2012
2013
2014
2015
2020
2025
2030
CAGR
(%)

Kerala
&
Karna
-taka

Karna
-taka

Kerala Ports
Total

Kochi

State
Ports

Beypore

Others

138.0

8.6

11.8

11.0

0.82

0.67

0.147

0.135

0.012

179.0
199.2
221.6
246.2
273.2
302.9
500.2
805.7
1158.9
10.2

9.1
9.3
9.5
9.6
9.8
9.9
10.8
11.7
12.5
1.7

16
19
21
24
27
30
54
94
145
12.1

13.9
15.7
17.7
19.9
22.4
25.2
44.5
76.5
115.9
11.3

2.41
2.80
3.25
3.77
4.37
5.06
9.48
17.81
28.97
17.6

2.24
2.57
2.95
3.38
3.87
4.43
8.53
16.03
26.08
18.1

0.25
0.29
0.33
0.38
0.43
0.49
0.95
1.78
2.90
14.5

0.22
0.26
0.30
0.34
0.39
0.44
0.85
1.60
2.61
14.4

0.02
0.03
0.03
0.04
0.04
0.05
0.09
0.18
0.29
15.6

Source: CES In-house Working


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
Particulars
Major Ports
Other ports
Karnataka
(NMP+Max at Other Ports)
Kerala
(Kochi +Max at Other Ports)
Kerala & Karnataka
All India

Capacity
144
40
18.1

Percent Share
78.3
21.7
9.8

4.5

2.4

22.6
184

12.5
100

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.

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

2007-08
(Actual)
2011-12
2012-13
2013-14
2014-15
2019-20
2025-25
2029-30

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)
138

%
0.106

000T
147

000T
135

000T
160

000T

199

0.163%

258

237

160

77

222
246
273
453
734
1159

0.170%
0.178%
0.185%
0.229%
0.283%
0.350%

303
356
418
914
1949
4056

279
328
384
840
1793
3732

160
160
160
160
160
160

119
168
224
680
1633
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 Capacity at IOCL Kozhikode

KL
MS OIL
SKO
HSD
Ethanol
Total

3082
5558
10593
140
19373

Tons
%
4109
6948
13241
200
24498

17
28
54
1
100

The Supply is received through train from Cochin. On an average one train load of 72 tanker wagons of 27 Kl
capacity are received here. This depot caters to the POL demands of Kozhikode,Kannur,Wyanad, Kasargod,
Mahe & about 25 % of Mallapuram
IOC has plans to enhance their storage capacity by 6665 KL(mainly ATF) with in one year. In case the port
facilities are developed in Beypore then there is a distinct possibility of bringing in POL products by coastal
vessels .
BPCL presently has no depot in Kozhikode
HPCL has a very small depot in Elatur . HPCL caters the POL demands of Kozhikode,Kannur,Wyanad,
Kasargod & Mahe . Presently Mallapraum is not being fed by HPCL. This depots supply is through road
trucks from Mangalore.
After the liberalization of GST regime the operation is likely to change so much so that Kasargod will be
catered to from Mangalore. HPCL & BPCL are in the process of developing a much bigger Depot of about 55
acres in Vallikunao near the border of Kozhikode & Mallapuram districts. This new proposed location 8is

very near to Beypore port. .This road movement results in congestion on roads & pollution of the
environment. Once the port facilities are set up at Beypore then a part of this cargo be brought to Beypore &
the distributed with in the hinterland.
Since both HPCL & IOC do not cater to Palakkad so it has not been considered. In 2007-08 the Demand of
the districts in the hinterland was as underin table 5.2.
Table 5.2 District wise demand of POL products in the hinterland
(000T)

MS OIL
HSD
SKO
Total
Percent
Population
Per capita

KAN
KKD
MLPM WYN
Total
48.89
79.58
81.47
10.37
220.31
129.08
158.81
166.23
32.74
486.85
21.76
31.11
37.85
9.82
100.53
199.72
269.50
285.55
52.93
807.70
24.73
33.37
35.35
6.55
100.00
2.49
3.03
3.96
0.85
10.3
80.2
88.9
72.1
62.3
78.2

Source HPCL Kozhikode


Presently the local demand of POL is met through transportation of POL products from Cochin Refinery at
Cochin & to some extent from MRPL refinery in Karnatka by road It is presumed that the additional POL
demand in KKD over the demand in the year 2007, the primary region, will be fully available for
transportation by sea because this area will reap the maximum benefit. Only the additional demand is
considered that right in the beginning the road infrastructure will not be disbanded. But over the years with the
more reliable port services there may be a slight decline in the road share (so much so that about 10% of the
road share of POL in 2013 going up-to 30 % from 2020 to 2030)
POL demand of other districts will be notionally diverted to tune of 10 % to sea by 2013 to 20% in 2030 at the
Beypore Pport. On this premise the likely traffic at Beypore for the hinterland districts be in Table 5.3.

Table 5.3: Hinterland demand of POL & traffic at Beypore


Units
2008
2013
Population
Kerala
Million
3.99
MLPM
Million
4.19
0.9
WYN
Million
0.90
2.8
KNR
Million
2.64
3.1
KKD
Million
3.21
10.7 10.94
Hinterland
Million
285.5 300.1
POL for MLPM
000T
52.9
54.9
POL for WYN
199.7 209.9
POL for KNR
000T
269.5 283.1
POL for KKD
000T
807.6 848.0
Subtotal
000T
Additional Demand of KKD to be handled at Beypore
13.6
Additional Demand of KKD 000T
Expected diverted Road
Share to Sea ( KKD )
%
10
Diverted traffic from Road
26.9
shae
000T
Subtotal

000T

40.5

2015

2020

2025

2030

4.29
0.92
2.70
3.28
11.19

4.66
1.00
2.93
3.56
12.15

5.16
1.11
3.24
3.95
13.46

5.676

307.1
56.0
214.9
289.5
867.5

333.5
60.8
232.9
314.3
941.5

369.3
67.5
258.2
348.7
1043.7

406.3
75.0
284.0
383.6
1148. 9

20.0

44.8

79.2

114.1

11.4

15.7

21.7

30

30.7
50.7

42.4
87.1

58.5
137.7

80.8
194.9

3.564
4.345
13.59

Demand of POL by sea from Other districts


Percent Share

Ratio

Volumes

000T
000T

Total POL

10

11

13

16

20

56.5

62.7

83.5

113.4

153.0

97.0

113.4

170.6

251.1

348.0

LPG
The commercial & domestic demand of LPG in the hinterland are met from the IOCL botteling plant in
Kozhikode at Chelari. The present annual bottling capacity is 60,000 T. In the course of next two years the
capacity is proposed to be doubled to 120,000 T. All the supply of LPG to this plant is from Mangalore by
road tankers. Of the 60 000 T LPG about

56,000 T is for domestic purposes & remaining 4000 for

commercial uses. In case a port facility is developed then LPG will be unloaded at Beypore & then transported
to the bottling plant by road would be a better proposition . The plant in-charge was very interested in such a
proposition.
In the initial years the diversion of LPG to Beypore say 5% going upto 30% in 2030 the future import traffic
at Beypore be as under in Table 5.4.

Table 5.4 LPG traffic at Beypore


Particulars
LPG Requirement

Units

2009

2012

2013

2015

2020

2025

2030

000 T

60

120

120

120

120

120

120

60

120

120

120

120

120

120

By Road
Percent Share at port

5.0

5.6

6.9

11.6

19.7

30

Traffic for Beypore

000 T

6.0

6.7

8.2

13.9

23.6

36

Food-grains
Wheat & rice are transported to Beypore by Coastal vessels predominantly from Gujarat. The landed cargo of
food grains is for Kozhikode, Ennakulam & Thrissur districts. A very small portion of Rice is exported to
Lakshadweep. Traffic of wheat, which is predominantly import at Beypore has shown a varying trend as
under:
Year
2001
2004
2005
2006
2007
2008
2009

Wheat(000T)
3.27
5.06
1.69
10.5
9.05
9.91
24.7

During 2002 & 2003 the wheat traffic was of the order of 0.3 thousand tons. Since 2006 it is around 9 to 10
thousand T but in 2009 it rose to 25thousand tons.
In Kozhikode and around there are many flour mills who get their wheat from Gujarat at Beypore by coastal
vessels. In the data collected from Beypore the following the importers have utilized the Beypore port during
April 2008 to March 2009
(In Tons)
Satyam Roller flour mills, Pvt Ltd,Cannawire

593

Durga foods, Calicut

641

Son's Milling Co, Pvt Ltd

1,000

Soubhagya food Industries Pvt Ltd, Calicut

1,083

Ahammad Roller flour, Big Bazaar, Calicut

2,401

Peekay Roller flour mills, Calicut

4,015

Parisons Roller flour mills Cherutty Road, Calicut

6,594

Jalaram Enterprises, Calicut

1,071

From Gujarat, Importer not known, Rajcot

7323

Total

24,721

M/s Parisons , with max import at the port, has capability of processing 600 tons of wheat & 350 tons of edible
oil. The annual capacity is about 346,000 T (219,000 T of wheat & 128,000 Tons of edible oil). In near future,
say 5 years, the capabilities are likely to increase to 0.5 MT of wheat annually. In 2007-08 about 6 thousand

tons of Wheat (which works out as 3% of capacity) was imported through Beypore. Accordingly the traffic of
food grains at port in 5 years time i.e. by 2013 be 9.2 thousand tons of wheat.
PK Roller Flour Mills is another big flour mills has two units with combined daily capacity of processing
270T of wheat per day . They get their requirement of Wheat from Punjab, Delhi, Haryana Rajasthan by Rail
& about 5 % by sea from Gujarat. At least for next five years the have no expansion plans.
Thus the total import at Beypore was roughly twice of the above two traders.An additional 15,000 T for other
users has been also considered. .So By 2013 the wheat traffic at Beypore could be about 35,000T. Beyond
2013 a natural growth of 5% for food grains is considered & the future scenario is presented in Table 5.5
Other Food grain Items which include rice, Vegetables & fruits, dates etc. collectively accounted for 3.43
Thousand T in 2008. Over the years these have had shown a CAGR of 10 % (1.80 Thousand T in 2001 to
3.43 thousand T in 2008). A similar trend of these commodities is expected in future & cargo estimated
accordingly and is also shown in Table 5.5
Table 5.5 : Future Traffic of Wheat & Other Food Grains at Beypore

Wheat
Others
Food Items

2013
40
5.5
45.5

2015
43.9
6.7
50.6

2020
55.4
10.8
66.2

(000T)
2025
2030
69.8
88.0
17.3
27.9
87.1
115.9

Cement
During last six years the capacity, production & consumption of cement in India has been as under in Table
5.6.
Table 5.6: Indian Capacity, Production & Consumption of cement Trends
Years

Capacity

Production

2002
2003
2004
2005
2006
2007
CAGR

146.0
151.2
157.7
165.4
171.3
175.0
3.7

106.9
116.4
123.5
133.6
147.8
162.0
8.7

Source:

%
Utilisation
73.2
77.0
78.3
80.8
86.3
92.6

Consumption
103.5
112.6
119.9
129.1
141.6
152.0
8.0

Population
1046
1062
1079
1096
1121
1129

(MTPA)
Per capita
Consumption
0.099
0.106
0.111
0.118
0.126
0.135

Working Group Report of Cement, Govt. of India

According to the Working Group the Cement Industry is expected to attain a capacity of 298 million tones
(CAGR 11.2%) and production of 269 million tones (CAGR 10.7%) by 2011-12 (XI Plan), the industry
had embarked on a capacity addition programme. In 2007 the capacity utilization was about 93%.

Considering a higher growth rate in the infrastructure in future, the Working Group has
estimated the demand of cement as 257 MT by 2011-12 (Growth rate 11.5%) and the All
India, southern region and Keralas cement demand in future yearwise is given in Table 5.7.

Table 5.7: Cement Demand Estimate& per capita consumption


(Growth Rate 11.5%)
(MillionT)
Region/State
Southern
Kerala
Grand Total
Population(Million)
Per capita

2007-08
49.0
8.1
168.8
1144.7
0.147

2008-09
54.5
9.0
187.5
1160.8
0.162

2009-10
60.5
10.0
208.4
1176.7
0.177

2010-11 2011-12
67.3
74.8
11.1
12.4
231.7
257.6
1192.5
1208.1
0.194
0.213

Source: Working Group Report of Cement, Govt. of India

Cement Demand for the Immediate & Secondary Hinterland

Malabar Cement Ltd, located in Palakkad (MCL), is the operational cement plant in Kerala with production
capacity 1.02 MTPA of cement & Clinker (Cement capacity being 0.62 MTPA) In 2007-08 & 2008-09 the
production of cement MCL was of the order of 0.6 MT whereas in 2007-08 the cement demand of Kerala was
8.1 MT. Implying there by that about 7 % of the state demand is met from MCL. Balance about 7.5 MT of
cement is brought to Kerala from other states predominantly by road transport. Further road transport, is very
costly, account for 17% of the total cost. In case the port facilities are developed at Beypore then the
transportation of cement from Gujarat could be initiated. As per the WGR on cement the per capita
consumption is 0.215 T per year. With this the cement demand of the hinterland, the unmet demand &
possible diversion to Beypore port as 50 % diversion in 2013 increasing gradually to 80 5 by 2030 for the
unmet demand of KKD and similarly 10 % initially going upto 20% by 2030 for the demand in other districts
the future potential of cement cargo at Beypore works as in Table 5.8.

Table 5.8: Traffic of cement in the hinterland

Population

Per capital
cement
Cemend
demand

KKD

Units
millions

2007
3.03

2013
3.2

2015
3.3

2020
3. 6

2025
3.9

Others
Hinterland

millions
millions

10.05
13.08

10.6
0.215

10.9
14.2

11.8
15.4

13.1
17.0

19.3

T/person/year

0.147

0.689

0.215

0.215

0.215

0.215

0.445
1.477
1.923

0.689
2.288
2.977

0.705
2.341
3.047

0.765
2.541
3.307

0.849
2.814
3.664

0.934
3.290
4.224

0.089
0.295
0.385

0.138
0.458
0.595

0.141
0.468
0.609

0.153
0.508
0.661

0.170
0.563
0.733

0.187
0.658
0.845

0.552
1.830
2.382

0.564
1.873
2.437

0.612
2.033
2.645

0.679
2.251
2.931

0.747
2.632
3.379

165.5
183.0

188.5
213.2

267.9
319.6

389.2
488.9

560.5
789.5

348.5

401.7

587.5

878.1

1350.0

KKD
MTPA
Others
MTPA
Hinterland
MTPA
Demand met from MCL @ 20%
KKD
Others
Hinterland
Unmet Demand
KKD
Others
Hinterland
Possible Diversion
Traffic at Beypore
30 to 75 %of unmet demand of KKD

2030
4.3
15

10 to 20 % unmet demad of other districts


Total
Sand
For infrastructure development apart from cement sand is also an important commodity. Recently the Govt. of Kerala
has imposed restrictions on sand mining in the rivers & the sea beaches. Further Govt. is planning to introduce sand
dredging at the dam sites in the State to meet the demand of sand. Even these steps will not be sufficient to produce
enough sand to meet the growing demand of the State. Consequently sand is being brought in to the state by coastal
vessels from Gujarat or by road from Karnatka & Tamilnadu. .. The freight charged was Rs 2250/ T. Another nearby
area from where sand canbe imported is from Mangalore. But due to interstate restrictions the road transportation is
also restricted. Under such circumstances the demand of sand in the hinterland be met through import from Gujarat by
coastal vessels.
Normally the demand for sand is roughly three times the demand of cement. Since the demand of cement has been
estimated as 2.98 MTPA in 2013 going up-to 4.03 MTPA by 2030, the sand demand could be about 9 MTPA in
2013. Three different scenario are considered for the Sand traffic attraction at Beypore in Table 5.9.

Table 5.9 : Traffic of Sand in the hinterland

Particulars
Sand Demand ( 000 T)

KKD
Others

Traffic Potential At Beypore port


10% of
KKD+5%
Low Scenario
of others
20% of
KKD+10%
Medium Scenario
of others
40% of
KKD+15%
High Scenario
of others

2013
2014
2015
2020
2025
2030
2068.4 2091.9 2115.6 2296.2
2547.8
2802.5
6958.9 7071.9 7024.1 7623.9
8443.1
9868.5
9027.3 9163.8 9139.7 9920.1 10990.8
12671.0

550.0

556.4

562.8

610.8

676.9

773.7

1100.

1112.7

1125.5

1221.6

1353.9

1547.4

1856.9

1878.3

1899.8

2062.1

2285.6

2601.3

Chemicals
Since 2001 the traffic of Chemicals mainly Soda Ash & Sodium Bi carbonate has varied over the years from 9.1
thousand T to 24.4 thousand T as given in Table 5.10

Years
2000
2001
2002
2003
2004
2005
2006
2007
2008
CAGR

Table 5.10: Traffic of Various Chemicals Handled at Beypore


(000 T)
Soda Ash
Sodium bi
Total
Year to year
Carbonate
Growth
9.1
9.1
1.3
1.3
-86.2
11.9
11.9
852.0
18.7
18.7
56.8
16.3
16.3
-12.8
21.7
0.4
22.2
35.6
20.6
20.6
-7.1
33.8
0.4
34.3
66.5
23.1
1.2
24.4
-28.9
12.4
13.1
-86.2

Source: Port Department. of Kerala


Soda Ash is utilized in soap & detergent industries. It was found that there are no such major users in Kerala. Almost
all the chemicals are transported to Tamilnadu by trucks. An effort was made to contact the industries in Tamilnadu but
could very little response. M/s Nirma stationed in in Gujarat have responded saying that annually about 60,000 Tonnes
of Soda Ash is being transported to Mangalore, Cochin & Tuticorin. In case a port is developed at Beypore & a
better rate is offered then they would divert their total chemicals to Beypore. Considering a 5 % initially and 4% in
final years the future volumes are expected to the southern states could be as under. A 100% diversion may not be
possible. Initially a 50 % diversion increasing up-to 60% is considered achievable. Accordingly the Beypore share has
been worked as under:

Year
Chemicals total
demand
Percent diversion
Amount

2012
70
50
35.0

2013

2014

2015

2020

2025

2030

74.6
52
38.8

79.5
53.5
42.9

84.8
55
46.6

108.2
60
64.9

134.87
60
80.9

168.08
60
100.8

Since only one user has responded that to they have put a condition of better rate, a mathematical model
revealed that an exponential model as

Traffic = - 1.0407*year*year+4.0609*year+.6501
correlation coefficient as 0.868

Future traffic of Chemicals on the basis of the above model & on the basis of CAGR have been estimated and
presented below:

Year
2013
2014
2015
2020
2025
2030

Growth
Method
40.8
45.0
49.6
71.1
99.8
136.7

Exponential
Model
40.0
42.0
43.8
45.8
42.5
50

Of the two, the estimate by exponential Model appears to be more realistic. However, the future traffic of
chemicals has been taken as arrived at by the end users method.
Steel
There are two small steel Mills in Kozhikode engaged in casting & producing TMT rods. Of the two mills PV
Rolling Mills located in Feroke area is a bigger Mill. They import scrap from USA. Capacity of mills is of
70000 T per year . The annual production is as under
TMT Bars

45000 T

Castings 12000 T
Thus for 57000 T production the input are about 70000 T of Scrap. Presently there is unloaded at Cochin /
Mangalore & then transported to Froke by trucks. In case the port facilities are developed then this could be
brought in by coastal vessels.
Presently about 50 to 60 % of casting out put is exported to USA. All production of TMT bars is consumed in
Kerala only. So the annual Traffic for this mill works as 76,000 T( 70,000 of scrap Import & 6000 T as
Export) .
Since the other mill is of lower capacity the combined traffic could be 100,000 to 125,000 T of Steel.
Metals
Metal & Metal products ( other than Iron & steel & scrap) till 2006-07 have shown a traffic around 6000 T.
But in 2007-08 it suddenly raised to 21000 T. This abrupt increase in Metals is very abnormal.

The future traffic could be as under considering a 5 % growth:


000 T
Metals

2013
8.0

2015

2020

8.9

2030

2025

11.3

14.4

18.4

Clay
The consultants, during their visit, to Kerala also contacted Ashapura Minechem Ltd Thiruvanthapuram to
enquire about their requirement regarding loading of Clay at Beypore. The reply was not voluminous enough
to call for the transportation by coastal shipping . Hence no such cargo has been anticipated at Beypore in
future.
Timber
Log & woods is a major trade activity in Kozhikode District. Soft wood is brought to Kozhikode from
Karnataka by road. Hard wood like teak is imported from Malayasia, Myanmar & South Africa. The import
cargo is unloaded at Tuticorin & New Mangalore. It is then brought to Kozhikode by trucks. IN olden times
some wood was unloaded at Beypore but now for the last 20 years all wood comes through the two above
mentioned ports. As the Traffic police have introduced stringent rules about the loading of trucks( any load
more than 9 T calls for heavy penality where as earlier 15 T was normally loaded on one truck). The Log
traders are finding that transportation cost of the order of about Rs 100/ cum from Tuticorin/Mangalore to
Kozhikode are enormous and is main factor for the downtrend of the log Business.
As per the Indian Timber Merchant Association, Kozhikode 50,000 Cum Timber comes from Mangalore to
Kozhikode & 100,000 Cum comes to Kerala from Tuticorin . Timber from Tuticorin to Kozhikode is of the
order of 25 to 30 %. Thus the annual demand in Kozhikode is about 75,000 to 80,000Cum. Another 5 to 10%
be brought at Beypore from Tuticorin. This could be a definite cargo for the proposed port at Beypore. So the
demand could be between 80 to 90,000 Cum in 2013. With a conversion factor of 11 cum to 9 T the Timber
volumes work out as 65 thousand T to 75 thousand T. For the years beyond 2013 a growth of 5 % initially
going down to 3.5% in2-30 has been adopted
Others
Various commodities considered here are mustard seeds, oil Cake, cattle feed, granite & marble, salt & other
miscellaneous cargo. Since 2001 the level of other cargo at Beypore has been around 29.2thousand T (2001);
81.9 thousand T (2007) and 59.7 thousand T (2008). Considering a natural growth of 10 % p. a on 2008 cargo
volumes initially & about 7.5% by 2030, the future cargo of other goods at Beypore could be
000 T
Others

2013
95.1

2014
104.0

2015
113.7

2020
123.6

2025
133.6

2030
143.6

Source: CES In-house Working


Containers
This organization had in recent past carried out the traffic study for the International Container Terminal at Kochi
(This formed a basic document for the setting up of the Container terminal at Kochi in 2005). In the above report
it was brought out that the normal growth at Kochi could of the order of 0.365 MTEU by 2010 in the medium
scenario & 0.4 MTEU in the high scenario. As against 235 thousand TEU projected in the aforesaid report the
actual traffic realize at Kochi was 203 thousand TEUs (a variation of about 14%). Similarly the actual traffic at
Kochi had been 260 thousand TEU against 323 thousand projected in the report. This drop of 20 % is the result of

overall drop in the world economies. Other cargo generation due to Kochi functioning as a hub Port has not
materialized so far. Further it has been shown that about 50 % of the container meant for the areas with in 500
Kms from the ports, are moved by Road. In case the container handling facilities are developed at Beypore then
there is a possibility that Beypore functions as a Collection / dispersal point for the containers meant for the area.
Considering a meager 1 % of cargo initially & going upto 3 % by 2025 the container cargo at the port be 4, 10, 20
& 45 thousand TEU in the years 2010, 2015, 2020 & 2025 respectively.
The likely attraction of containers at Beypore from ICTT, Cochin is given in Table 5.11.
Table 5.11: Likely Container Traffic at Beypore
(000TEU)

Years

2010
2011
2012
2013
2014
2015
2020
2025

Road Share

Mediu
m
370
396
425
455
486
639
1031
1498

High
404
437
473
511
551
730
1240
1698

Containers at
Beypore
(000 TEU)
Mediu
m
High
3.7
4.0
4.3
4.7
4.9
5.5
5.7
6.4
6.5
7.4
9.2
10.5
21.4
25.8
44.9
50.9

%
Share
Beypor
e
0.010
0.011
0.012
0.012
0.013
0.014
0.021
0.030

Container in T

Mediu
m
44.4
51.6
58.8
68.4
78.0
110.4
256.8
538.8

Source: Container Traffic Potential at Cochin, Feasibility Report CES 2004

High
48
56.4
66
76.8
88.8
126
309.6
610.8

Summary of Traffic
Summarizing the above discussions the future traffic at Beypore is given below:
Table 5.12: Future Traffic Potential at Beypore by Commodities (Scenario 1)
(000 T)

2008
Actual

2013

2015

2020

2025

2030

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 Foodgrains

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

0.0

1100.1

1125.5

1221.6

1353.9

1547.4

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

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

135.3

1982.0

2158.9

2737.2

3626.5

4630.3

Sand
Metals

Misc.

Total

Another factor responsible for the low traffic estimates from End User Method at Beypore is the ban order of
High Courts for handling edible oil at this port. It may be noted that in 2007-08 the edible oil traffic at
Beypore was 27,000 tonnes, which would have increased to 40,000 in 2012 going upto 100,000 by 2025.
The traffic estimate as given by the Power function of regression with GDP works as 3732 thousand T by the
year 2030. The variation between the two forecast by End Users Method & Macro level estimates are low of
the order of 3%.
5.2.2

Scenario 2 (With definite development of Azhikal & Ponnani Port)


The immediate hinterland of Beypore port keeping the geographical distances in view, was considered 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. See Fig. 4.3 (Chapter 4). The primary & immediate secondary hinterland has about 43% of total
area but only 39 % of the State population resides here. Within the hinterland of Beypore Port, presently there
are no major port traffic generating industries like power plant, refinery, steel plant, ship repair or ship

building industries etc. The area has however a number of small scale industries like food processing,
chemicals, metal products/hosiery garments & leather goods etc. All such industries generate only Break Bulk
cargo that too in a limited quantity.
The State Government is in the process of developing a Cement, General cargo & Container handling port at
Azhikkal in Kannur district and a predominantly Chemical handling port at Ponani in Malappuram District.
Azhikkal ports hinterland includes the districts of Kasargod, Kannur, Coorg in Karnataka and some traffic
from KKD & WYN. The port at Ponani is being developed for Soda Ash, which is used by the Chemical
industries in Tamilnadu.
In this context Beypore port is likely to attract traffic from KKD & WYN districts only. Any traffic diverted
from the other districts is expected to be very low and it may not be a regular feature. Commodity wise
estimation of the potential for Beypore port is explained hereunder.

POL Products

Since both HPCL & IOC do not cater to Palakkad.. Moreover it has been ascertained that port facilities are
being developed at Ponani in Malappuram Districts. So the traffic potential for these two districts has not been
considered for Beypore port. In 2007-08 the Demand of the districts in the hinterland was as under.
(000T)

MS OIL
HSD
SKO
Total
Percent
Population
Per capita

KAN
KKD
WYN
Total
48.89
79.58
10.37
139
129.08
158.81
32.74
321
21.76
31.11
9.82
62.7
199.72
269.50
52.93
522
24.73
33.37
6.55
64.7
2.49
3.03
0.85
6.37
80.21
88.94
62.30
82

Source HPCL Kozhikode


Presently the local demand of POL is met through transportation of POL products from Cochin Refinery at
Cochin & to some extent from MRPL refinery in Karnataka by road. It is presumed that the additional POL
demand in KKD over the demand in the year 2007, the primary region, will be fully available for
transportation by sea because this area will reap the maximum benefit. Only the additional demand is
considered that right in the beginning the road infrastructure will not be disbanded. But over the years with the
more reliable port services there may be a decline in the road share (so much so that about 15% of the road
share of POL in 2013 going up-to 40 % by the year 2030). Further about 5 % from the 2007 will also be
diverted to sea route.
POL demand of other districts will be notionally diverted (5% in 2013 to 7.5% from WY & about 3 %in 2013
to 5% by 2030 from KNR) to Beypore port. On this premise the likely traffic at Beypore for the hinterland
districts be in Table 5.13

Table 5.13: Hinterland demand of POL & traffic at Beypore


Units

2007

2013

2015

2020

2025

Population
Kerala
W
KNR
KKD

2030

Million
Million
Million
Million

33.7
0.85
2.49
3.03

0.90
2.64
3.19

0.92
2.70
3.28

1.00
2.93
3.56

1.11
3.24
3.95

1.221
3.564
4.345

Hinterland

Million

6.37

6.73

6.90

7.49

8.30

9.13

Annual per capita POL consumption


W

62.27

62.27

62.27

62.27

62.27

62.27

KNR

80.21

80.21

80.21

80.21

80.21

80.21

KKD

88.94

88.94

88.94

88.94

88.94

88.94

POL for W

000T

52.9

56.0

57.3

62.3

69.1

76.0

POL for KNR

000T

199.7

211.8

216.6

235.0

259.9

285.9

POL for KKD

000T

269.5

283.7

291.7

316.6

351.3

386.5

Total

000T

396.7

267.8

273.9

297.3

329.0

361.9

Additional Demand of POL


KKD

000T

14.2

22.2

47.1

81.8

117.0

POL for W

000T

3.1

4.4

9.3

16.2

23.1

POL for KNR

000T

12.0

16.8

35.3

60.2

86.1

Total
Road Share to Sea for
additional traffic for KKD

000T

29.4
15%

43.4

91.8

158.2

226.2

16.8%

22.5%

30%

40%

KKD(additional)
from 2007 demand @ 5%

000T
000T

2.1
13.5

3.7

10.6

24.5

46.8

13.5

13.5

13.5

13.5

Subtotal

000T

15.6

17.2

24.1

38.0

60.3

5.0%

5.2%

5.9%

6.8%

7.5%

Ratio

Demand of POL by sea from Other districts


Percent Share from WYN

Volumes

000T

Percent Share from KNR


Volumes
Total POL

%
000T
000T

2.8

3.0

3.7

4.7

5.7

3.0%
2.4

3.3%
2.6
22.8

4.0%
3.2
31.0

5.1%
4.1
46.8

5.0%
4.0
71.0

20.8

LPG
The commercial & domestic demand of LPG in the hinterland are met from the IOCL bottling plant in
Kozhikode at Chelari. The present annual bottling capacity is 60,000 T. In the course of next two years the
capacity is proposed to be doubled to 120,000 T. All the supply of LPG to this plant is from Mangalore by
road tankers. Of the 60 000 T LPG about 56,000 T is for domestic purposes & remaining 4000 for
commercial uses. In case a port facility is developed then LPG will be unloaded at Beypore & then transported
to the bottling plant by road would be a better proposition. The plant in-charge was very interested in such a
proposition.
In the initial years the diversion of LPG to Beypore say 5% going upto 15% in 2030 the future import traffic
at Beypore be as under in Table 5.14.

Table 5.14 LPG traffic at Beypore


Particulars
LPG Requirement

Units

2009

2012

2013

2015

2020

2025

2030

000 T

60

120

120

120

120

120

120

60

120

120

120

120

120

120

By Road
Percent Share at port

Traffic for Beypore

000 T

5.4

6.7

6.5

8.0

8.2
10

10.0
12

Food-grains
Wheat & rice are transported to Beypore by Coastal vessels predominantly from Gujarat. The landed cargo of
food grains is for Kozhikode, Ernakulam & Thrissur districts. A very small portion of Rice is exported to
Lakshadweep.
Traffic of wheat & other foodgrains as worked out for scenario 1 has been retaines here.

Cement
In line with the discussions for estimation of cement in Scenario 1 but with a truncated hinterland future
potential of cement cargo at Beypore works as in Table 5.15.
Table 5.15: Traffic of cement in the hinterland

2007
3.03
0.85
2.49
6.370
0.147

2013
3.19
0.90
2.64
6.730
0.215

2015
3.28
0.92
2.70
6.900
0.215

2020
3.56
1.00
2.93
7.490
0.215

2025
3.95
1.11
3.24
8.300
0.215

2030
4.35
1.22
3.56
9.130
0.215

0.445
0.125
0.366
0.936
0.089
0.026
0.026

0.686
0.194
0.568
1.447
0.137
0.040
0.040

0.705
0.198
0.581
1.484
0.141
0.041
0.041

0.765
0.215
0.630
1.610
0.153
0.044
0.044

0.849
0.239
0.697
1.785
0.170
0.049
0.049

0.934
0.263
0.766
1.963
0.187
0.054
0.054

0.140

0.217
0.549
0.154
0.528
1.230
5

0.222
0.564
0.157
0.540
1.261
6

0.241
0.612
0.171
0.586
1.369
10

0.267
0.679
0.190
0.648
1.517
15

0.294
0.747
0.209
0.713
1.669
20

WYN

2.5

2.7

3.3

4.1

5.0

KKD
WYN

27.5
3.9

33.8
4.7

61.2
5.6

101.9
7.76

149.4
10.5

Hinterland

31.4

38.5

66.8

109.5

159.9

Units
KKD
Population

WYN
KNR

millions

Hinterland

millions

Per capita cement consumption


KKD
Cement demand
WYN
KNR
Hinterland
Demand met from
KKD
MCL
WYN
KNR

Unmet Demand

Percent

millions

Hinterland
KKD
WYN
WYN
Hinterland
KKD

MTPA
MTPA
MTPA
@20%
@7%
@7%

Traffic at Beypore

Sand
Normally the demand for sand is roughly three times the demand of cement. Since the demand of cement has been
estimated as 1.45 MTPA in 2013 going up-to 1.96 MTPA by 2030, the sand demand could be about 4.34 MTPA in
2013. Three different scenario are considered for the Sand traffic attraction at Beyporeis considered as in Table 5.16
Table 5.16 : Traffic of Sand in the hinterland

Particulars
Sand Demand ( 000 T)

2013
KKD
WYN
KNR
TOTAL
KKD
WYN
KKD
WYN
Total

% Diversion to sea route


Traffic for Beypore( 000 T)

2015

2058
581
1703
4341
5
2.0
102.9
11.6
114.5

2020

2116
593
1742
4451
5.4
1.7
114.6
12.4
128.0

2025

2296
645
1890
4831
6.7
2.5
158.3
13.2
171.5

2030
2548
716
2090
5354
8.2
3.5
216.8
18.3
235.1

2803
788
2299
5889
10
5
292.3
27.3
319.6

Chemicals
Since 2001 the traffic of Chemicals mainly Soda Ash & Sodium Bi carbonate has varied over the years from 9.1
thousand T to 24.4 thousand T as given in Table 5.17
Table 5.17: Traffic of Various Chemicals Handled at Beypore
(000 T)
Years

Soda Ash

2000
2001
2002
2003
2004
2005
2006
2007
2008
CAGR

9.1
1.3
11.9
18.7
16.3
21.7
20.6
33.8
23.1
12.4

Sodium bi
Carbonate

0.4
0.4
1.2

Total

Year to year Growth

9.1
1.3
11.9
18.7
16.3
22.2
20.6
34.3
24.4
13.1

-86.2
852.0
56.8
-12.8
35.6
-7.1
66.5
-28.9
-86.2

Source: Port Department. of Kerala


Soda Ash is utilized in soap & detergent industries. It was found that there are no such major users in Kerala. Almost
all the chemicals are transported to Tamilnadu by trucks. An effort was made to contact the industries in Tamilnadu but
could very little response. M/s Nirma stationed in Gujarat have responded saying that annually about 60,000 Tonnes of
Soda Ash is being transported to Mangalore, Cochin & Tuticorin. In case a port is developed at Ponnani then a lions
share of Soda ash traffic will be diverted to Ponnani & only about 5 to 10% of demand be handled at Beypore.
Considering a 5 % initially and 4% in final years the future volumes are expected to the southern states could be as
under. Accordingly the Beypore share has been worked as under:
Year
Chemicals total
demand
Percent diversion
Amount

2012
70

2013

2015

2020

2025

2030

74.6
5
4

84.8
5.75
5

108.2
7.25
8

134.87
8.75
12

168.08
10
17

Steel
There are two small steel Mills in Kozhikode engaged in casting & producing TMT rods. Of the two mills PV Rolling
Mills located in Feroke area is a bigger Mill. They import scrap from USA. Capacity of mills is of 70000 T per year .
The annual production is as under
TMT Bars

45000 T

Castings 12000 T
Thus for 57000 T production the input are about 70000 T of Scrap. Presently there is unloaded at Cochin / Mangalore
& then transported to Feroke by trucks. In case the port facilities are developed then this could be brought in by coastal
vessels.
Presently about 50 to 60 % of casting out put is exported to USA. All production of TMT bars is consumed in Kerala
only. So the annual Traffic for this mill works as 76,000 T (70,000 of scrap Import & 6000 T as Export).
Since the other mill is of lower capacity the combined traffic could be 100,000 to 125,000 T of Steel.
Metals
Metal & Metal products ( other than Iron & steel & scrap) till 2006-07 have shown a traffic around 6000 T. But in
2007-08 it suddenly raised to 21000 T. This abrupt increase in Metals is very abnormal.

The future traffic could be as under considering a 5 % growth:

000 T
Metals

2013
8.0

2015

2020

8.9

2030

2025

11.3

14.4

18.4

Clay
The consultants, during their visit, to Kerala also contacted Ashapura Minechem Ltd Thiruvanthapuram to
enquire about their requirement regarding loading of Clay at Beypore. The reply was not voluminous enough
to call for the transportation by coastal shipping . Hence no such cargo has been anticipated at Beypore in
future.
Timber
Log & woods is a major trade activity in Kozhikode District. Soft wood is brought to Kozhikode from
Karnataka by road. Hard wood like teak is imported from Malayasia, Myanmar & South Africa. The import
cargo is unloaded at Tuticorin & New Mangalore. It is then brought to Kozhikode by trucks. IN olden times
some wood was unloaded at Beypore but now for the last 20 years all wood comes through the two above
mentioned ports. As the Traffic police have introduced stringent rules about the loading of trucks (any load
more than 9 T calls for heavy penalty where as earlier 15 T was normally loaded on one truck). The Log
traders are finding that transportation cost of the order of about Rs 100/ cum from Tuticorin/Mangalore to
Kozhikode are enormous and is main factor for the downtrend of the log Business.
As per the Indian Timber Merchant Association, Kozhikode 50,000 Cum Timber comes from Mangalore to
Kozhikode & 100,000 Cum comes to Kerala from Tuticorin . Timber from Tuticorin to Kozhikode is of the
order of 25 to 30 %. Thus the annual demand in Kozhikode is about 75,000 to 80,000Cum. Another 5 to 10%
be brought at Beypore from Tuticorin. This could be a definite cargo for the proposed port at Beypore. So the

demand could be between 80 to 90,000 Cum in 2013. With a conversion factor of 11 cum to 9 T the Timber
volumes work out as 65 thousand T to 75 thousand T. For the years beyond 2013 a growth of 5 % initially
going down to 3.5% by the year 2030 has been adopted
Others
Various commodities considered here are mustard seeds, oil Cake, cattle feed, granite & marble, salt & other
miscellaneous cargo. Since 2001 the level of other cargo at Beypore has been as under

Others Cargo(000 T)
CAGR since 2001

2000-01
27.95

2006-07
79.42
19.0

2007-08
58.11
13.0

2008-09
35.30
4.0

The CAGR since 2000-01 at Beypore has shown a declining trend. from 19% (2007-01) to 4 %(2009-01). The
overall growth at All India level is of the order of 10% per annum. In line with the growth of Break Bulk at
Indian ports the growth of break bulk cargo at Kerala ports is expected to be lower say about 5% initially and
the same may increase to about 7 to 8 % by the year 2030. Accordingly the traffic at Beyopore could be as
under

000 T
Others

2009
35

2013
45

2015
50

2020

2025
90

65

2030
130

Source: CES In-house Working


Containers as given in scenario1 has been adopted
Summary of Traffic
Summarizing the above discussions the future traffic potential at Beypore is given in Table 5.18
Table 5.18: Future Traffic Potential at Beypore by Commodities (Scenario 2)
(000 T)

POL
LPG
Wheat
Other
Chemicals
Cement
Sand
Metals
Steel
Timber
Misc.
Containers
000 TEU
Total

2013
20.8
6
40
5.5
4
31.4
114.5
8
100
48.8
45
66
5.7
490

2015
22.8
6.5
43.9
6.7
5
38.5
128
8.9
108.2
53.7
50
108
9.2
580.2

2020
31
8
55.4
10.8
8
66.8
171.5
11.3
131.6
65.4
65
108
21.4
732.8

2025
46.8
10
69.8
17.3
12
109.5
235.1
14.4
156.3
78.6
90
108
38.948
947.8

2030
71
12
88
27.9
17
159.9
319.6
18.4
181.2
93.4
130
108
55
1226.4

5.3

Traffic for the Lakshadweep Jetty


POL Products
In 2007-08, about 1.9 thousand tonne of POL products & 0.2 thousand T of LPG were moved from Beypore
Port to Lakshadweep Islands. The POL needs of Lakshadweep Islands are met by transportation of POL from
Old Mangalore port (MRPL refinery) and Beypore (Cochin Refinery). Thus about 28% of the POL
requirement of Lakshadweep is met through Beypore.
Considering the Indian per capita consumption of POL of 104 Kg the total demand for Lakshadweep for 200910 works out as 7.8 thousand tone increasing to 14.0 thousand tones by 2029-30 .Considering 24.7% transfer
from Beypore initially. With setting up the port this share could increase in future to say 50% by 2030(as the
Beypore Port being in full operation). On this consideration the likely traffic of POL from Beypore is expected
to be as under in Table 5.19 .
Table 5.19: Likely POL requirement for Lakshadweep & share at Beypore
(Medium Traffic Potential)

Particulars

2008
(Actual)
74

2013

2015

2020

2025

2030

77.4

79

85

87

90

POL
Consumption
(000T)

7.7

8.7

10.3

12.3

13

14

Share of
Beypore (%)

24.7

29.0

30.9

36.3

42.6

50.0

POL(000T)

1.9

2.5

3.2

4.5

5.5

Population
(000)

Source: Census of India & CES In-house Working


LPG
As per the statistics of Ministry of Petroleum , Govt. of India the per capita consumption of LPG works out as under

Particulars
LPG Production
LPG Import
LPG Export
Consumption
Population
Per capita Consumption
LPG

Units
MTPA
MTPA
MTPA
MTPA
Million
T/Person

2004
5.35
1.71
7.06
1079.1

2005
5.57
2.33
0.15
7.75
1095.7

2006
5.53
2.71
0.05
8.19
1112

2007
6.31
2.27
0.11
8.47
1128.5

2008
6.73
2.83
0.099
9.461
1144.7

0.0065

0.0072

0.0076

0.0078

0.0088

The demand for LPG for the Lakshadweep has been worked out by considering per capita consumption of 0.009T per
person per annum the demand & the likely traffic at Beypore could be as under:

Particulars

2013

2015

2020

2025

2030

Population of Lakshadweep in 000

77.4

79

85

87

90

Demand of LPD in 000 T


Possible Diversion to Beypore
LPG Traffic 000 T

0.6966

0.711

0.765

0.783

0.81

12
0.084

14
0.100

20
0.153

28
0.219

40
0.324

Cement traffic for Lakshadweep


Since the loading of cement at Beypore is for Lakshadweep considering the population of Lakshadweep in the future
years the cement demand is at the rate of 0.215 T/capita is expected as in Table 5.21.
Table 5.21 : Traffic of cement from Beypore
Particulars
Population
Demand of
Cement

Units
000
000 T

2013
77.4
16.6

2014
78.2
16.8

2015
79
17.0

2020
85
18.3

2025
87
18.7

2030
90
19.5

Source: CES In-house Working


Summary of Traffic at Lakshadweep jetty is presented in Table 5.22
Table 5.22 : Summary of Traffic at Lakshadweep (Scenario 3)

POL
LPG
Cement
Misc.
Total

2013
2.5
0.1
16.6
1.5
20.7

2015
3.2
0.1
17.0
1.7
22.0

2020
4.5
0.2
18.3
2.3
25.3

2025
5.5
0.2
18.7
3.1
27.5

2030
7.0
0.3
19.5
4.3
31.1

PASSENGER TRAFFIC
6.1

Tourism Potential at Beypore


There are two types of tourists likely to use the Beypore Port:

6.1.1

Pleasure seekers (utilizing the Marina facilities)

Passengers to and from Lakshadweep

Pleasure Seekers at Beypore


Kerala is a heaven for tourist because its abundant natural beauty and sceneries. Over the last 5 years the
tourist in the state had been as given in Table 6.1

Table 6.1: Tourist Traffic in Kerala


Year

Tourist to Kerala ( 000)


Foreign
Domestic
2003
294.6
5871.2
2004
345.5
5972.2
2005
346.5
5946.4
2006
428.5
6271.7
2007
515.8
6642.9
CAGR (%)
15.0
3.1
Source: Economic Review 2007-08, Government of Kerala

Total
6165.8
6317.7
6292.9
6700.2
7158.7
3.8

Total tourist traffic has increased at the rate of about 4% p.a. this is low because of low growth of domestic
tourists. The growth in Foreign Traffic was 15% but that of domestic tourists was only 3 %.
It is Govt. policy to take necessary steps to increase the contribution in this particular sector of the economy.
All efforts are being taken to ascertain at least growth of at least 10% in this sector. It is presumed that in line
the national objectives there will at higher growth than that achieved in the past. Considering a 15 % initially
& 14 % by 2025 for the foreign tourist & a 4 % growth in domestic tourist traffic, the future tourist traffic
could be as given in Table 6.2.
Table 6.2: Future Tourist Traffic in Kerala
Years
Foreign

Tourist to Kerala ( 000)


Domestic
Total

2013

1193

8405

9598

2014

1372

8741

10113

2015

1578

9091

10669

2020

2843

11060

13904

2025

4900

13457

18357

2030

7892

16372

24264

CAGR

12.59

3.99

5.45

Potential for Beypore


During 2007 the share of tourists in the hinterland of Beypore has been 26%. The district wise tourists were as
given in Table 6.3.
Table 6.3: Tourist Traffic in the Hinterland Districts in 2008
Foreign
Domestic
Total
Particulars
(000)
(000)
(000)
Palakkad
0.6
315.6
316.2
Mallapuram
9.8
313.2
323.0
Wayanad
4.1
256.2
260.3
Kozhikode
10.0
570.8
580.9
Kannur
3.1
375.3
378.3
Total
27.6
1831.1
1858.6
Percent Share in total
Kerala tourists
5.3
27.6
26.0
Source: Economic Review, 2007-08, GoK

Percent
17.01
17.38
14.01
31.25
20.35
100.00

Presently about 39 thousand tourist visit Beypore for recreation purposes such as boat rides , games on the
beach & other activities for fun, a marina like activities. The District Govt. is in the process of developing a
Marina at the site for giving a boost to marina activities. Even with out proper facilities there are annually
39000 visitors (@0.02 % of total tourists in the hinterland). With installation of facilities for these activities
along with a jetty for the pleasure boats the potential will increase as given in Table 6.4:
Table 6.4: Future Tourist Traffic of Pleasure Seekers at Beypore
Year

Tourist
Kerala

2007

6.1.2

Tourist
Hinterland
(@26%)

Expected
Share of
Beypore
(%)

Tourists
Beypore
(000)

1858.6

0.020

39

2013

9598

2495

0.030

76

2014

10113

2629

0.033

86

2015

10669

2774

0.035

97

2020

13904

3615

0.050

180

2025

18357

4773

0.070

336

Potential Traffic of Passengers to /from Lakshadweep


From the ship data of Beypore for the year 2008-09 (April 2008 to December 2008) the passenger incoming &
outgoing traffic to Lakshadweep was about 7492. In 2008-09 the maximum number of passenger in any ship
was 280. The frequency table of ships according to passengers carried was as given in Table 6.5.

Passengers
0-50
50-100
100-150
150-200
200-250
250-300
Total

Table 6.5: Frequency Distribution of Ships carrying


Passengers at Beypore
No of Ships
Percent
14
26
6
11
4
8
13
25
4
8
12
23
53
100

The average number of passengers are (Incoming & outgoing) were 146. With a nominal @ 2 % growth pa in
traffic & with 150 as average passengers per ship the number of passengers & the corresponding ship call be
as given in Table 6.6.
6.1.3

Total Tourist Traffic Potential


Summarising the above, the total tourist traffic and the vessel calls of Lakshadweep passengers and Marina
Tourists is as given in Table 6.6.
Table 6.6:

Years

2013
2014
2015
2020
2025
2030

Total Tourist traffic and the vessel calls of Lakshadweep passengers and Marina
Tourist

Lakshadweep
Passengers
PassenShip
gers
Calls
(000)
(nos)

10.8
11.0
11.3
12.7
13.7
15.2

72
74
75
85
91
101

Marina Tourist
Boats
PassenShip
gers
calls@
(000)
60 per
boat
(nos.)
45.1
902
47.3
946
49.6
993
63.6
1271
82.1
1643
106.7
2135

Total
Passengers
(000)

Ship &
Boat
Calls
(nos.)

55.9
58.3
60.9
76.3
95.9
121.9

824
862
902
1144
1460
1880

SHIP CALLS AT BEYPORE

7.1

Ship Calls
The available water depth at the port is 3.5 m. All the cargo loaded or unloaded at the port is through barges of
size up-to 1500 to 2000 DWT. Commodity wise vessel expected to call at the port could be as under
Break Bulk Vessels
The Dry Cargo Liners in coastal trade as per the Indian Shipping tonnage on 30.12 .2006 were 72 Nos. The
DWT range of such vessel varies from 350 to 19000. In addition there are 18 dry cargo & passenger cum dry
cargo deployed. The size wise distribution was as given in Table 7.1.
Table 7.1: Sizewise Distribution of dry cargo & passenger cum dry cargo Vessels in Indian Shipping
Tonnage

Sl.
No
1
2
3
4
5
6
7
Total

DWT
(000)
0-1
1-2
2-3
3- 5
5 - 10
10 - 15
15- 20

Coastal

Overseas

Total

15
9
36
6
1
2
3
72

19
9
43
8
5
2
4
90

7
2
4
1
18

Coastal
20.8
12.5
50.0
8.3
1.4
2.8
4.2
100

Percent
Overseas
22.2
0.0
38.9
11.1
22.2
5.6
100

Total
21.1
10.0
47.8
8.9
5.6
2.2
4.4
100

Source: Shipping Tonnage Data by D G Shipping


About 88 % of the vessels are up-to 5000 DWT. A 5000 DWT vessel has draft of 6.4 m and for a 10,000
DWT vessel the required depth of water is 8 m Initially the expected vessel size may be 10,000 DWT going
upto 30,000 by the year 2030. But the ship size will depend upon the economy of dredging at the berths &
approach Channel.

Break Bulk Vessels Calling at West Coast Ports


During 2008-09, 1209 vessels with Break bulk (BB) cargo called at the West Coast ports. The size wise
distribution of those vessels was as given in Table 7.2.

Table 7.2 Break Bulk Vessels calling at West Coast Port ( 2008-09)
Particulars
Kandla

Mumbai

NUMBER OF VESSEL CALLS


0-10
121
10-20
141
20-30
127
30-40
33
40-50
13
50-80
13
80+
Total
448
PERCENT OF VESSEL CALLS
0-10
27.0
10-20
31.5
20-30
28.3
30-40
7.4
40-50
2.9
50-80
2.9
80+
Total
100

Break Bulk Cargo Vessel


JNP
MormuNMP
gao

Cochin
(Kochi)

West
Coast
Ports

231
198
142
31
53
17

8
9
1

3
2
2
1

24
22
24

44
12
3
3
1

407
362
275
68
67
30
0
1209

672

18

70

63

34.4
29.5
21.1
4.6
7.9
2.5

44.4
50.0
5.6

37.5
25.0
25.0
12.5

34.3
31.4
34.3

69.8
19.0
4.8
4.8
1.6

33.7
29.9
22.7
5.6
5.5
2.5

100

100

100

100

100

100

It is observed from the above Table that there are about 60 % of BB vessels up-to 20,000 DWT only at almost
all west coast ports. Only at Kandla 58 % BB vessels were upto 20,000 DWT. This shows that the likely size
of BB cargo could be upto 20,000 DWT.
POL Tankers- Coastal Shippimg
The POL product Tankers on Indian shipping in coastal & overseas trade as per the Indian Shipping tonnage
on 30.12 .2006 were 59 in nos. The DWT range of such vessel varies from 415 to 1158000. The size wise
distribution is as given in Table 7.3.
Table 7.3: The size distribution of POL Product
Tankers in Indian Shipping Tonnage
DWT Size
Coastal
Overseas
Total
0-500
1
1
500-1,000
3
3
1,000-2,500
3
3
2,500-5,000
1
1
5,000-10,000
1
4
5
10,000-20,000
4
4
20,000-30,000
1
8
9
30,000-50,000
16
16
50,000-80,000
5
5
80,000 +
12
12
Total
10
49
59
Source: Shipping Tonnage Data by D G Shipping
It is noted from above that about 44% of the POL product tankers are up-to 30,000 DWT, 27% more vessels
are in the range 30 to 50,000 DWT. A 30,000 tanker has draft of 10.8 m and that of a 50,000 tanker it is
12.6m. So for Beypore only 30,000 Vessel could be expected to call.

Passenger cum Cargo vessels of Lakshadweep


Table 7.4 gives the details of vessels available with the Lakshadweep Administration for transportation of
goods & passenger with in the islands & to/fro Mainland.
Table 7.4: Details of Vessels available with Lakshadweep Administration
Year

Name of the
Ship/Vessel

Passenger
capacity
(Nos.)

Cargo
Capacity (T)

GRT

DWT

1982

Bharatseema

380

160

3670

640

1988
1988
1991
1991
1991
1993
1995
1997
2001
2001

Tipusultan
Dweepsetu
Kadeejabeevi
Hameedathbee
Ubaidulla
Thinnakara
Laccadives
Cheriyam
Amindivi
Minicoy

658
150
100
100
Nil
Nil
Nil
Nil
150
150

Nil
25
Nil
Nil
600
600
600
600
25
25

3725
492
254
254

887
98
43
43

931

As such even these vessels can not enter the Harbour. The following table shows the computations of shipcalls likely at the port for different size vessels depending on the economy of cost of dredging in the Harbour
area. Table 7.5 shows the ship-calls of vessels expected at Beypore

Table 7.5: Ship calls at Beypore

Particulars

2013

2015

2020

2025

2030

1801.8

1873.0

2104.9

2423.8

2840.3

POL

128.2

149.3

217.8

316.8

441.4

LPG

9.5

12.1

19.4

31.2

48.4

438.5

497.9

703.2

1016.7

1519.7

Chemicals

38.8

46.6

64.9

80.9

100.8

Containers

6.1

9.9

23.6

41.5

63.1

2489.3

2697.1

3393.4

4367.7

5707.7

BB

10000

20000

20000

20000

20000

POL

10000

20000

30000

30000

30000

LPG

5000

5000

10000

10000

10000

Cement

10000

15000

15000

30000

30000

Chemicals

10000

10000

15000

15000

15000

Containers

1000

1000

2000

2000

2000

Traffic
BB

Cement

Total
Vessel Sizes

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