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TRANS HARBOUR RE- LOCATION OF MUMBAI PORT Page 1 of 11 28 th Mar ‘ 2013 The Planning and Design Lab Rev 02 Table Of Contents The Mumbai Megaproject Second Edition Trans Harbour Re-Location Of Mumbai Port An Initiative of the Planning and Design Lab Copyright March ‘ 2013 This material is protected by Indian copyright law Revision 02 28 th Mar ‘ 2013 Busybric Infrastructure Pvt. Ltd.

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TRANS HARBOUR RE- LOCATION OF MUMBAI PORT

Page 1 of 11

28th

Mar ‘ 2013 The Planning and Design Lab Rev 02

Table Of Contents

The Mumbai Megaproject Second Edition

Trans Harbour Re-Location Of Mumbai Port

An Initiative of the Planning and Design Lab

Copyright March ‘ 2013

This material is protected by Indian copyright law

Revision 02 28

th Mar ‘ 2013

Busybric Infrastructure Pvt. Ltd.

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© Protected by Indian copyright 2013 Busybric Infrastructure and The Nataraja Foundation are the owners of this project design basis. Further development of the project is hereby assigned to “ The Planning and Design Lab “, which is a joint initiative of Busybric Infrastructure and The Nataraja Foundation . BusyBric Infrastructure is a next generation infrastructure concept, design and implementation company with an agenda to bring totally new ideas to the Infrastructure business in India. ( website : www.busybric.com ) The Nataraja Foundation on the other hand,is an independent organization which promotes rigorous study of issues pertaining to India and attempts to provide solutions for large social and economic challenges. ( website : www.nataraja.org.in ) The Nataraja Foundation is the promoter of “ The Indian Education Megaproject “. The Education Megaproject is a plan to provide high quality education, totally free of cost to 126 Million Children in 28 states and 7 union territories across India. The entire financing of Rs. 6 Lakh Crores ( US $ 131.38 Billion ) for this project is to be raised independent of central and state budgets. A detailed plan to execute the Education Megaproject has been submitted to the Ministry of HRD and the Planning Commission, Govt. Of India. Those interested can view and download all the project documents including detailed calculations and the financing scheme from the Nataraja Foundation website : http://www.nataraja.org.in/masseducationproject.htm Together, Busybric Infrastructure and The Nataraja Foundation have an agenda to provide thought leadership in the areas of Education, Healthcare, Urban Infrastructure and a number of other matters of national interest. The projects Busybric and Nataraja promote are in the public interest for people in India and around the world. We therefore would like to share our ideas with like minded individuals and organizations globally for the service of the public with the caveat that the source of information ( this report ) be mentioned in each case while referring to the information and unique ideas contained herein to avoid legal action. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or any information storage or retrieval system, without the prior written permission of the Planning and Design Lab. Those interested in knowing more about our work may write to us at the following address : Current mailing address : The Planning & Design Lab 104, Parshudhar Building, Plot No 5, Sector 25 Nerul ( East ), Navi Mumbai 400706 Maharashtra, India T: + 91- 22 2 7707623 M: + 91-9867612368

E Mail : [email protected] ( Enquiries pertaining to the Indian Education Megaproject ) [email protected] ( Enquiries pertaining to the Mumbai Megaproject )

Nataraja Foundation Charity Registration No. E – 24721 ( Mumbai ) Cover image : Collage based on generic pictures available on the internet. Link to the source of the pictures is provided on the website. Designed , typeset and printed in India by “ The Planning and Design Lab “.

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Table Of Contents

1. Executive Summary 2.

3.

4.

5.

6.

7.

8.

9. The Game Changing Role Of The Judges Of The Mumbai High Court

10. About the Mumbai Megaproject

Project details will be shared with interested parties and Govt. after signing of confidentiality agreement, payment of prescribed fees and signing of the initial project agreement.

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Project details will be shared with interested parties and Govt. after signing of confidentiality agreement, payment of prescribed fees and signing of the initial project agreement.

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About the Authors

Amrita Puntambekar is a designer with “The Planning and Design Lab”. She has detailed many of the concepts as regards the social equity dimensions of the Mumbai Megaproject. She leads the Nataraja Foundations initiatives on women’s issues and particularly children’s education. She is also an associate fellow at the Nataraja Foundation and a consultant for its various projects. Amrita is a freelance artist and specializes in watercolour. She is a post graduate in commerce and lives in Mumbai.

Ashish Puntambekar is a Mumbai based , corporate planner and infrastructure project designer. He has 20 years of experience in designing some of India’s largest infrastructure projects, the most notable and recent of which is the Indian Education Megaproject. The Education Megaproject is a plan to provide high quality education , totally free of cost to 126 Million children, 80 % of who live in rural areas and come from the poorest families. Please visit : http://www.nataraja.org.in/masseducationproject.htm

As a designer , Ashish believes in Gandhiji’s vision of “ Sarvodaya “( i.e the rise of all ) and his project designs therefore focus on including the excluded among the masses . All his projects also have huge environmental dividends in that they are designed for sustainability while also deploying environmentally friendly building materials on a massive scale. Each project’s financial design also frees up large capital resources for afforestation schemes and for wildlife preservation. The Mumbai Megaproject for instance provides US $ 300 Million for Mangroves and another US $ 1.5 Billion for the planting of dense forests in Maharashtra. Employment generation is also high on the design agenda. This is witnessed by the fact that the above mentioned two projects , alone will add 10 Million new jobs in India. Besides designing large infrastructure and clean energy projects, the designer is also keenly interested in the geopolitics of petroleum ( several published articles ) and has expert level knowledge in the energy business and especially the price of crude oil which he has traded as a derivative trader on all the worlds major exchanges and OTC markets for over 5 years. He currently works as a project designer and also runs a private foundation, named the Nataraja Foundation, with a mandate to innovate on an unprecedented level in the areas of Social Infrastructure, Urban Planning and Clean Energy. Ashish holds an MBA in international business and a bachelors degree in Mechanical Engineering.

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Acknowledgments The Mumbai Megaproject is a scheme in the interest of the Millions of citizens of Mumbai City and the 112 million inhabitants of Maharashtra. It is also a landmark project to safeguard the ecology and sustain a vast marine ecosystem around Mumbai. The project proposal itself is an exercise in the public interest and for the consideration of the State and Union Governments. In a project proposal as wide-ranging as this with its 22 different themes, the project designers have received much help from others, starting with FICCI-FLO and Deutsche Bank who organized and sponsored the seminar in Sept ’ 2011 at the YB Chavan Center at Nariman Point in Mumbai. While the Marco concepts and large project ideas are our own, several Individuals have contributed by providing comments on draft chapters. A few senior specialists with vast experience in project planning and execution have reviewed the whole report consisting of 22 different themes + 2 project control specifications and have provided their inputs. Some contributed in terms of ideas while others provided critical cost estimates for the various schemes within the Megaproject. It is not possible to thank everyone by naming them as one cannot rank their ideas on the basis of relative criticality or importance. We have also borrowed ideas and concepts from other projects implemented around the world such as the palm islands in Dubai, The Semakau offshore landfill in Singapore, The Chunnel tunnel that connects the UK with France, The Cheonggyechon river re-development (Seoul, South Korea), Besos river ( Spain ), The Sabarmati river re-development project in Ahmedabad, The Coral Reef Alliance’s Bio Rock technology implementations around the world etc. In including these projects we acknowledge their thought leadership and would like to learn from their implementation experience. Each borrowed concept is acknowledged by source and at no point do we claim these fundamental concepts as our own. In fact we hope that the people and organizations involved in these earlier, path-breaking projects around the world see the opportunities in Mumbai and come here. The city will greatly benefit from their experience. Several friends have provided helpful guidance as we edited the final text for publication. We have also taken a number of generic pictures from the internet and have used graphics and material for tables from various published sources and while doing so, we have taken care to quote our sources for numbers and opinions expressed by various parties in the public domain. It is important to state here that the cost estimates within the Megaproject’s reports have been arrived at after seeking relevant advice from experts. These are however indicative costs based on current industry practices and projects commissioned within the last 3 – 5 years in India and around the world. Based on all these inputs, we have modified the concepts in a manner that fits Mumbai’s unique requirements. This cross fertilization of ideas across industries has been our own and it is this that makes the Mumbai Megaproject unique. The estimates are critically linked to project execution structures specified in each case to achieve the most efficient project schedule and least possible cost. The project configurations and the scope of work considered in each sub-project also have had a major impact on cost and these costs could vary if project scope is changed significantly. Finally, the authors take sole responsibility for any errors or omissions regarding opinions expressed and conclusions drawn from the various studies within the Megaproject proposals.

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1. Executive Summary

Mumbai port has a long and rich history. The Portuguese who had occupied the area transferred it to the British crown in 1661 under the marriage treaty between Charles II of Great Britain and the infant princess Catherine of Portugal. Actual work on developing the port began after the transfer of the Port and the island of Mumbai to the East India Company by Royal Charter in 1668. In 1813, an act of the British parliament ended the East India Company’s commercial monopoly over Mumbai port. This resulted in a great spurt in business for the Port. The year 1858 witnessed the exit of the East India Company ( after the revolt of 1857 ) , and passing of Mumbai under the direct rule of the British crown. The opening of the Suez canal in 1869 revolutionized the maritime trade of Mumbai. It shifted the whole scenario of import and export trade from the east coast of India to the west and Mumbai port became the principal gateway to India. In 1873, the present statutory autonomous port trust was set up for administering the affairs of the port. Between 1873 and 1914 a number of berths were added and the port grew. After 1915, the port went through an extensive expansion phase during which the port was connected to the national network of railway trunk lines. In addition road connectivity and capacity was expanded and large warehouse capacity was built. The first oil handling terminal was also added in 1923. The important thing to remember in all this is that the island of Mumbai served as a breakwater which protected the port from the open sea and the joining of the islands and the formation of the city were essentially all done around the need to sustain a trading hub ( which Mumbai essentially was ) centered around the port. Even the railway linkages were established to keep communication lines open to sustain Britain’s trade linked colonial ambitions and to allow for the movement of military hardware and troops. In fact the entire city as we know it today has grown around the railway lines that the British built. Un-Sustainable Expansion After Independence in 1947 the port was expanded repeatedly and its capacity was continuously increased both in terms of new additional dry bulk and liquid / oil cargo handling berths. New container handling capacity was added after the commissioning of the first facility in 1973. All this and subsequent capacity additions after 1984 have enabled the port to handle

The Mumbai Megaproject Second Edition

Trans Harbour Re-Location Of Mumbai Port

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56.19 million tonnes of cargo in 2011-12.As the ports traffic grew, so did the city in a rather unplanned way along the railway systems and the crowded road corridors. To understand what is happening now and why Mumbai port’s very existence today is un-sustainable we need to examine cargo movement data and source / destination related issues. 1. Solid Bulk and Container Cargo Mumbai port in 2011- 12 handled 22.87 million tonnes of non – POL cargo which includes solid bulk and container cargo. This number includes 57760 TEU’s of container traffic. In 2011-12, 3.64 Million tonnes of cargo was handled by the ports railway system while a majority or 19.23 million tonnes (84 %) of the solid cargo and container traffic had to move by road … through Mumbai’s already choked road network. In the middle of this already choked traffic situation, the Mumbai port trust is currently working to commission a large Offshore Container Terminal ( OCT ) capable of handling 1.2 million TEUs by mid 2013. This will imply a 20 fold increase in container traffic on Mumbai;s already crowded roads and greatly increase the difficulty of driving through the city. This is therefore going to prove very dangerous in terms of people who are likely to lose their lives while driving along roads within the city once the OCT gets commissioned and unleashes its container traffic. 2. POL / Liquid Cargo The two Refineries at Mahul together with RCF and Tata Power today contribute in excess of 50 % to the ports revenues. The first three of these plants were repeatedly expanded over the last two decades even as lakhs of people moved into areas well within the mandatory exclusion zone as required under the Environment Protection Act. The Act which requires a 25 kilometer distance between the plants and the boundary of the nearest large settlement of 3,00,000 people has seen extremely serious violations in Mahul with traffic moving within 25 meters from large and very dangerous storage tanks and with thousands of people living within a few hundred meters of lethal chemical storage facilities. Given the huge threat of an industrial accident in the area there appears to be no other option but to move the BPCL, HPCL, RCF and Tata Power plants out of Mumbai. The decision in our view cannot be delayed given the ever present and extremely serious threat posed by these facilities. Allowing a status quo would in fact mean that we are putting a price on the life of people living in Chembur, Mahul, Wadala and Sion.

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Domino Effect … of BPCL, HPCL, RCF and Tata Power Re-Location The Megaproject is of the view that re-location of industries from the Mahul area will fundamentally alter the skyline of Mumbai and nearly double the city’s GDP by 2020. This will also have a huge and beneficial impact on welfare schemes for the urban poor who will see a real benefit in terms of vastly improved Education and Healthcare coverage. How all this will come about needs to be explained … If the plants are shut down and then relocated as they must, Mumbai port which last year handled 33.22 million tonnes of POL cargo out of a total of 56.19 million tonnes will lose in excess of half its revenue. One does not need to be an expert in logistics or port management to figure out that Mumbai Port would then be skating on very thin ice with an un-sustainable business plan. Given all this , the Megaprojects view is that the inevitable closure of Mumbai port is an event that must be planned for in a manner that protects the interests of all workers and pensioners. Secondly the closure needs to be managed in a manner that leads to a sound and fair resolution of issues for all stakeholders including the plants that are to be shut down and re-located. The Mumbai Megaproject’s Solution There is no doubt that the two refineries ( BPCL and HPCL ) and RCF / Tata Power have to be moved out of Mumbai ASAP. It is therefore necessary to develop alternative plans that make economic sense and appear reasonable not just for the stakeholders of the Mumbai port trust but also the affected companies. The Govt. of Maharashtra has to play a central role in this and they need to act very qucikly. The megaproject has developed a comprehensive plan which simultaneously resolves all constraints. The main elements of the plan are as follows : 1. BPCL , HPCL and RCF will be relocated outside Mumbai under a special scheme

developed by the Megaproject in a manner that allows them to expand capacities. Plan can be discussed with the managements of these companies on request.

2. All current employees of Mumbai port trust can be transferred to JNPT to safeguard jobs.

If necessary a special plan containing additional safeguards can be prepared to ensure that their very legitimate needs are addressed in full.

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3. The megaproject has developed two separate concept plans to relocate current Mumbai

port capacities on the other side of the harbor. We have also developed an innovative plan for integrating these new facilities with the Delhi - Mumbai freight corridor.

It needs to be understood very clearly that there is no option to the re-location of the two refineries and the RCF / Tata Power plants at Mahul because thousands of lives are at risk. It is no less important that that the interests of various stakeholders, including Mumbai ports 25,000 employees and an equal number of pensioners are protected. Our view is that if a long term rational approach is not adopted right in the beginning, there could be a collapse of Mumbai ports business plan with considerable hardship to all. We have stated our un-ambiguous view on this issue so that minimum time is lost in reaching a rational solution that is acceptable to all. Project details will be shared with concerned parties and the government under a properly structured government initiative. The Megaproject is committed to social justice as is clear from its “ Sarvodaya “ philosophy. We are not backed by and will not back any special commercial interests in any of our projects.

Ashish Puntambekar Project Designer The Planning and Design Lab

Projects

The Mumbai Megaproject

& The Indian Education Megaproject ... High quality Education to 126 Million Children Totally Free of cost Contact Details : [email protected] [email protected]

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NOTE

This document is protected by Indian Copyright Law. Please specifically quote your source while using the text / material presented herein, to avoid legal action.

Pictures used within this document have been taken from the internet. They are therefore representative and not necessarily from a location in Mumbai or Maharashtra. The pictures used are generic and we have provided a link on the website ( to be updated from time to time ) where we have identified the source of the pictures. In case of any oversight on our part, please let us know and we will immediately rectify the matter.